Why the recovery will remain an illusion

[AllentownJake]

It is kind of funny. I had been laid of and fortunately was able to take a leave of corporate America into the non-profit world recently.

I was having a discussion with someone who applies for state and federal grants in another organization at some sort of mixer the other day. Generally these aren't for gigantic amounts in the organization he works for. $5,000 to $50,000. Peanuts when you look at some of the subsidies in other areas. In any regards, the grant applications make the tax forms look easy to fill out.

I think about that in contrast with reading reports that BP was faxing over changes to the oil rig over to MMS and getting approval on changes in 5 minutes. I work in an arts non-profit and my acquaintance in a youth services non-profit. I don't do the grant writing that is another person in my organizations job but it made me kind of chuckle in the due diligence the government does over two situations. A small amount of money versus an engineering change with drastic consequences. Don't know seems emblematic of the overall condition of our government structure in 2010. The guy will probably spend 20-40 hours filling out the paperwork for a government grant of $5000 and the government will probably spend another 20-40 hours reviewing it while a major change in the structure of a rig that could potentially send toxic waste spewing into the gulf of Mexico is approved in less that 5 minutes.

It shouldn't be this way. You see back in 2008 when this entire mess started we were all sold a bill of goods. Most people acknowledge that, and by FDIC foreclosures and looking at the real health of To Big to Fail extrapolating Mark to Myth accounting out of the equation, the US Treasury and Federal Reserve have fired a lot of bullets at a problem that probably didn't require dumping more money into it.

The Government however ran to the rescue of the Too Big to Fail and we heard how we would all be living in an Escape from New York reality if they didn't. I was skeptical than, I believe allowing the government to continue to save these guys asses will ensure an Escape from New York existence in the future.

Which brings me to current events. The question we are having right now is does our government work for us, or does it work for some other interest. I think the answer is becoming clearer.

No one went anywhere till TARP was passed. Our Senate, can't seem to pass any kind of unemployment legislation without taking a vacation and letting people temporarily drop off the roles first. Mind you this is while, even their most rosy scenario, these guys cannot come up with a long term solution to a problem even the most fantastic economic cheerleader says will exist at least till 2014.

On the Judicial front, Scalia and company are insane fascist declaring a legal entity having the same rights as a human being. No further commentary needed.

On the executive front, there have been no criminal prosecutions for the biggest fraud in human history despite countless reports showing clear law breaking. There have been a few civil actions thrown around here and there, but on the criminal front (and fraud is criminal more than civil) there has been no action by the Change We Can Believe in Administration. As much as I hate Bush, I will give him credit in the fact that at least a few partners and the executives at Enron and Arthur Andersen faced criminal charges. There is almost a deafening silence from the Holder justice department on large fish in the largest wealth theft in Human history.

Lastly, an interesting little talking point is developing over BP. One I expect to hear louder and louder as the damage becomes more severe and the potential fines mount. You can't touch BP it will hurt XYZ pension fund, the kind of argument I've heard over the banksters getting away with their crimes in 2008. First, no Pension fund should be that exposed to one particular legal entity's stocks or bonds. If they are, the pension fund manager should be handed over to the pensioners for quick justice. Second, if you have a pension, you should pay attention to where your money is invested and make some noise. Like it or not, you are a shareholder to BP, and if BP does something particularly evil and goes belly-up as an investor in that company, you lose your stake in the evil entity. They are not entitled to not face the consequences of their actions because you think you are innocent and don't want to face the consequences of them facing the consequences.

At the end of the day, the crisis in capitalism is a crisis in accountability and responsibility. No one is accountable and no one is responsible and therefore no one trust.

You can't build an economic system in such conditions, let alone a society. So no Viriginia, there won't be any recovery because the ground you are trying to plant one in, has been salted.