The Straw Man Deflection, and the Parties are Over

For the last 30 months the citizenry of our country has been victimized by a set of economic events. Only the most senior members of our society have experienced anything approaching its equal. Spanning two nearly diametrically opposed administrations it has brought us to the very brink of economic disaster, and there is still the chance that we plunge into the abyss. The policies and precepts of the Republican and Democrat parties have become entrenched at the far ends of the political spectrum resulting in a complete inability to achieve even the most insignificant compromise let alone the type of modus vivendi our founders envisioned.

It is not my intention to make this blog partisan or political, I am interested only to the extent it affects the market and the economy. I will offer the disclaimer that I am socially very liberal, and fiscally somewhat conservative to the extent that it complies with my social conscience.

The specific event that prompted me to construct this essay was the speech given by President Obama this afternoon. Mr Obama laid out a plan to bar banks from proprietary trading, which for those unfamiliar with the term, is investing on behalf of the bank itself. He spoke of other limitations and regulations. The sad fact of the matter is, this type of activity is only obliquely related to the problem. The regulating bodies have proven grossly inept at enforcing regulations, and now this will obligate them to enforce it, taking away from their already limited ability to deal with matters of greater relevancy. The congress who will eventually craft the legislation is paralyzed by bifurcation, and even if inclined to act responsibly, ill equipped to do so. If any legislation is ever written, a doubtful proposition in and of itself, history indicates it will be so full of loopholes that it will be rendered impotent.

Then there is the timing of the announcement. Is it so critical to the public good that it had to be presented in unfinished form? I do not believe so. Going on a crusade against these banks now serves only to further erode the public confidence in an already shaky market environment. Forcing these institutions to divest themselves in a hurried manor may result in a fire sale atmosphere as as any potential buyer will know the seller is under mandate to do so, and will make low ball offers potentially causing a devaluation similar to the one that occurred in derivative securities, and resulted in the very crisis this allegedly attempts to forestall. Market participants whose livelihood entails having an understanding of these events displayed their opinion of it by dropping the Dow Jones Industrial Average 213 pts today after a 122pt drop the day before.

It has led me to believe one, or perhaps both, of the following:

1) The President and his advisors have a staggering lack of sense with regard to the economy, the markets, and the effects their actions will have in the short and long term.

or

2) The President was engaging in a reprehensible act of political diversion, Setting the banks up as a Straw Man in order to deflect attention away from his parties loss in the Massachusetts Senatorial Election on Tuesday.

Sadly, the previous administration engaged in equally egregious behavior, as have the players in the crisis not directly affiliated with the parties. In fact the only commonality I can find in all the individuals and entities, political, corporate, or regulatory, is their mendacity. The one quality displayed by nearly every player is a lack of understanding the concept of personal honor. If we are, as Dr. King eloquently put it, to be judged by the content of our character, that judgment as imposed upon these folks is likely to be harsh indeed.

I cannot think of a single individual who has put politics, personal gain, or ego aside and stood before the people. Not one who has put these things aside and done the absolute right thing by the people. In fact in every case the people have been cast aside like an empty soup can and kicked around. The official, the regulator, and the mogul, unrepentant all, suffer naught for their misdeeds.

What is wrong with us as a people that we have chosen these particular folks to represent our interests, to ensure our economic security, to lead us towards prosperity? Have we sunk to such a level of disfunction that we are willing to settle for this? Is it too late for us to rescue ourselves from them? From ourselves?

I have seen blame, righteous indignation, political grandstanding, deflection, distraction, evasion, misdirection, lying, perjury, obfuscation, denial, and of course incredible greed, idiocy, and incompetence on the part of all players.

So I have decided that I can no longer in good conscience cast my vote in any election, for any candidate, that chooses to ally him or herself with either of our two “mainstream” political parties. Both have degenerated to existing merely to perpetuate their existance. They, as currently organized, are an impediment to progress both as individual entities and as part of this two party system. Their actions toward each other and toward the people no longer serve the public good. I will no longer hold my nose and pull the lever. Who knows maybe someday there will be enough folks who feel the same way that these two parties will have to change or perish. Many of you have heard the message already, and I, out of fear of “wasting my vote” cast it for one of these parties. Well I am one of you now and I commend you your foresight and courage.

So who is the Whig candidate this year? It has to be a better choice than the powers that be.