Blame the Poor, to Tim Weiss

N8 wrote the following in response to an article appearing here regarding bogus claims that the complex international financial collapse that effects everyone was caused by bad loans to poor people of color. The viewpoint I expressed cautions a mind set change and suggests in the end to consider principles of Muslim Banking. Any thoughts on traditional concepts of finance in Africa would be useful to know.

One thing is for sure - there is too big of a "fluff" economy stocked by dim brained financial consultants and poorly educated MBA's whose only jobs are to scheme ways to make money off of money, rather than produce a good or service that is useful and these people should be turned out en masse to collect garbage on roadways, etc.
__________________________________________________________________________________
Dear Tim: Your article on the current financial meltdown being blamed on the poor appeared on the Rastafari/Africa Speaks website. Your essay was poignant. However the experience in California did contain a substantial element of selling bad loans to non whites, significantly, very hard working Mexican and Latin American families employed in the construction trades, who built the very subdivisions that later bombed. With regard to the government becoming involved in maneuvering people into financial positions that could not be supported ultimately and resulting in an inevitable collapse, as we have seen, one might take the "conservative" view with a twist that these programs were designed as pork for local construction and banking interests in the communities where it was approved, with an inevitable Ponzi effect coming due where the only profit takers were the master minds behind the dubious plan, typical in government "aid to the poor" programs, just as it is in international "aid" for "the poor" in developing countries, where the recipients of the mana find themselves moving backwards after a brief and illusory feast of sorts.

The hard working people, as mentioned, in California paid grossly inflated prices for housing at the peak of the bubble (a typical scenario both in real estate and in stock buying). The net result is the failures will provide easy pickings for wealthy investors to buy up properties for cents on the dollar while the workers who built the bubble up are discarded. There was also a great deal of talk after the foreclosures started accelerating in local media articles and among real estate "professionals" (especially in Sonoma County) , of how once "the Mexicans" were gone, the jobs in agriculture and construction would be taken up by a new wave of white immigration from central and eastern europe.

I suggest you review the geo politicks and accompanying religious crusader rhetoric of the European nations who wholeheartedly supported the wars in Iraq and Afghanistan and continue to do so (although some have bailed as the pickin's were not as easy as they thought in advance), as well as countries bordering the Russian Federation.who do the same. That is where the new immigrants rewarded in the quid pro quo game of immigration treaties and power politicks will come from, not Haiti. So, immigration is not an element of this scenario that is sacrosanct or beyond critical review in analysis and should be considered as to how the game has been and is now being played. Immigration is a tool of foreign policy and domestic policy, yet some on the official left simply leave the question of immigration policy as beyond critical review , resorting to one liner simplifications such as "immigrant bashing" and the like to tar and feather those who would discuss it.

On the conservative side, there may be too many wishful thinkers out there who should be renting instead of fantasizing about making money by buying real estate which they are assured will inevitably go up and up. In that sense, even the poor and misguided are their own worst enemies by playing casino in a winners and losers economic system. All too many buy in to the winners and losers casino economy and it was only wishful thinking in lieu of promises by slick advertising that profits were inevitable and that there was insignificant risk. Even trolling for higher interest rates among banks offering various savings deposit schemes is a form of predatory finance capitalism with no questions asked by the depositor as to how the bank is going to gain the promised interest for them . Pension funds are another example of wishful thinking - someone is going to be left holding the bag in the end, as in the social security scheme.

Hand wringing of the supposedly innocent masses is just a little bit hard to stomach right now, especially those that listened to these silly and poorly educated "investment counselors" at the banks the democrat party was primarily responsible for deregulating over the past 25 years. Adequate information and wise counsel was readily available , but people chose to believe what they wanted, which was a better life than the neighbor down the proverbial street. Perhaps the fraudsters should be tarred, feathered and figuratively strung up for justice's sake.........but.

The much maligned bail out is collective punishment, indeed, yet everyone seems to have the same mind-set regardless of "class" when it comes to playing the game. Go down to the seven eleven some time and see who is playing the lottery. NO, not a racist stereotype, simply, it is the very bemoaned of working "poor" who have little money at all to spend except on essentials who are playing it. We could all use a better mind set that comes from within and IS a matter of personal responsibility. If people watch TV regularly at 200 bucks a month for all the cable goodies, it is hard to imagine such a mind set developing in place of the casino mentality. Consider the amount of money spent on alcohol and drugs as an investment fund - there's a responsible form of savings.

Well, there is always Jimmy Carter's "habitat for humanity" lottery scheme where arbitrary "winners" are selected to receive free money in the form of a house, as opposed to someone "down the street" who did not win Jimmy's lottery for po folks. Vote buying schemes come in many flavors - will I be the next lucky winner? Vote democrat party and then have a party, and don't forget the beer.

In closing, it might be useful to study principles of Muslim banking system and investment as a possible key element to "sustainable" living, rather than cyclical growth through devastation and "rebuilding" from a "disciplined" labor market, a cycle we now must live through once again. And, oh yes, war as a stimulus package and employment opportunity seems readily available if we are not serious about taking control of our lives closer to home.

Thank yo for your fine essay. n8