Congressional Stand-Off: A New Kind of Credit Default Swap

It’s interesting to note the similarities between the instruments we have all become familiar with, i.e., the “credit default swap,” that, along with a number of other things nearly brought down the world’s economy and what’s happening now in Congress.  Basically, the credit default swap involved the sale of highly rated securities to investors by investment bankers and brokers who, knowing the real, high risk and low quality of the same securities, bet against them (invested in their failure) thus ensuring their personal gain at the expense of the investors.

So now, here we are in the 11th hour with the full faith and credit of the United States government hanging in the balance and some elected officials are betting against us.  Their “security” (if you will) is the highly inflated value of the “mandate” they proclaim that American people gave them in the elections of 2010.  However, that mandate is largely of their own creation and of highly inflated value.  They are betting against the “American People” by refusing to govern in the best interest of all American people in the hope that the small number of people who actually voted for them, will re-elect them in 2012 in which case they will have won along with that small number of American people who reelected them, the inside traders.  Unfortunately by that time it will be too late for a bailout.  Damage done, the nation’s and the world’s economy will be in chaos and they will claim that they did all that they could to stem the tide of a fiscally out of control government by holding the debt ceiling and deficit reduction debate and legislative process hostage.

Meantime, those of us, especially those of us, the American people, who are poor, old, sick, uneducated, unemployed, underemployed, without health coverage, homeless and disabled, will have lost any hope of surviving the losses the new type of credit default swap that results in the loss of lives–not just money.

Whether those same politicians who sold us the worthless security of their so-called mandate win or lose will not matter.  We all will have lost.  Without the full faith and credit of the United States, we the governed, the American people, have nothing.

That’s 4Real

Peace

2 Comments

  1. anamericanstory

    I stumbled on your blog. I was reading The Young Turks and have been following what’s been going on as I can. It is sickening. What baffles me, is that people don’t seem to understand what is really going on and are not pissed off about it. I don’t know what it will take for the American people to wake up.

    Like

    1. 4realpeople

      I don’t know either. Robert Reich got it right last week when he said we should spend Labor Day 2011 marching in the streets instead of celebrating work since there is precious little of it to be had. I went back to review my posts from 2008 when our hopes were so high. At least I thought we would get back on track. That we would act like the America I knew–justice, equity, opportunity, peace loving, public/private partnerships for prosperity, real governance, on and on. Alas, I have re-posted those entries because, I’m running very low on hope right now. Check out the re-posts. Is it just me?

      Like

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