A Nasty Email Says I Don’t “Get It”
I got this rather nasty email from a reader who identified himself with only an email address. So, I am going to identify this person with the first part of the address, which is Jdavidm24. Here is what he had to say about my most recent post called, “Two Stories that Should Scare the Heck Out of You.” Do you have a degree in economics? If so, it doesn’t show.
Do you know anything about liquidity? If the U.S. government hadn’t stepped in and done what it did when it did you would no longer have a job. Nor would most Canadians in the finance business. We would, in fact, be pretty close, if not in, a second Great Depression with unemployment rates rocketing up to at least 15-20%. The cascading effect of this is fairly unimaginable, but because perhaps you don’t have the faintest clue as to what the Depression was (I do) you don’t really get it. You would get it when you no longer have an income.
What is scary is people like you jumping on the arch-conservative band wagon who brainwash the rest of the gullible public that you know what you’re talking about.
I do not have a degree in economics. I have been an investigative reporter since 1991. I did that job for local TV stations and two networks (ABC and CNN.) You can see samples of my work in the “Bio” section of this site. I have made a career looking at data and connecting the dots. As a veteran investigative reporter, the data looks very different to me than it does to you.
You wrote, “If the U.S. government hadn’t stepped in and done what it did when it did you would no longer have a job.” I did not receive a dime in bailout money. I started this website with my own capital. I did not require a bailout or a loan because I did my homework and invested wisely. When I look at the data, I see reckless and incompetent bankers on Wall Street that were rewarded with a public bailout. Elizabeth Warren, who chaired the Congressional Oversight Panel, said in November, “We rescued at the top and we left the bottom to kind of fin for itself.” (click here for the complete interview.) The “finance business” might have been saved in the bailout, but the rest of America is headed for a depression. The real unemployment rate is already more than 21% (calculated the way the government did it prior to 1994.) Foreclosures are hitting record amounts month after month. This is happening despite the fact the government is paying people to buy houses, and providing more than 90% of the mortgage financing in this country.
You wrote, “. . . perhaps you don’t have the faintest clue as to what the Depression was (I do) you don’t really get it.” So you think you “get it” because you lived through the last depression? Then, you might remember during that time, two big pluses for America: the dollar retained its value and the U.S. retained its credit rating. Because the government “stepped in” two years ago with trillions of dollars in bailout money (and is continuing to do so), the U.S. will be lucky if it retains either. I bet both the dollar and credit rating of the U.S. will be severely impaired. By the way, Former Fed Chief Alan Greenspan recently compared the financial problems in the U.S. to Greece.
I believe in honest accounting and honest government. We have neither at this time. What we do have is the suspension of FASB 157 (Financial Accounting Standards Board) that allows banks to price “toxic” assets at par value. I call that government sanctioned accounting fraud. This makes their balance sheet look like they are solvent and profitable so they can pay themselves fat bonuses for their incompetence and greed. Last year, Wall Street banks paid themselves $20 billion in bonuses. Meanwhile, we have a government that is transferring trillions of dollars in banker mistakes to the public via the Fed and Treasury. Oh, I “get it” alright; I just get it differently than you do.