Monday, May 19, 2008

Kings, peasants and the Gr. 11 pyramid scheme.

Watched a great documentary last night on the Enron scandal. I shamefully admit, I didn’t fully understand the magnitude of this debacle until I made the time to sit down and learn.

After the show I turned to my friends with 4 revelations

1. how far things can go in the USA based on hype . (Best entertained & least informed – ten miles wide & one inch deep – and you keep making the same mistake)

2. how disgustingly greedy some of the pillars of corporate America have become.

3. how ignorant (remember, stupid is a naïve mistake twice and naïve is a mistake once – ignorant is making a stupid mistake) the general population chooses to be.

4. how we did this in Gr. 11 but called it a pyramid scheme. Eg: I gave $25 with the intention of getting $2000?

We noted all of the banks, accounting firms, legal firms, power plants, magazines, Wall Street (and the list goes on) who knew but didn’t say anything (because they profited) and one friend says - “well, I guess we won’t see anything like that again any time soon”.

Think again.

Because if you didn’t understand the Enron “energy crisis”, you can learn it through the new version of the old scandal called the “housing crisis”… or perhaps you’ll clue into the “oil crisis” that has again gripped our nation pre summer (when we travel the most). Hype – hype – hype – with zero substance and fat cats laughing at us all the way to the bank. Think Kings & Peasants while you read about the disparity of our nation growing each year.

Are you ready to pony up to his majesty with your bag of coins?

Let’s check into the “housing crisis” Coles notes are as follows; banks happily loaned whatever amount borrowers wanted as long as the banks could then sell the loan, pushing the default risk onto (taxpayers) or onto buyers of mortgage-backed bonds.

Now that it has become clear that a trillion dollars (yes, that’s a large amount of money) in mortgage loans will not be repaid, taxpayers are under pressure not to buy risky loans and investors do not want mortgage-backed bonds. This means that the money available for mortgages is falling, and house prices will keep falling, probably for 5 years or more.

Does anyone think – hey a handful of ‘banks’ have been indicted in the two largest fraudulent scandals to hit our country in over a decade….. in the same decade? Does anyone notice we are about to merge into ‘one world’?

Anyways… solutions for all of the above are the following.

1. don’t spend what you don’t have. That’s straight off of Grandpa’s knee 101. There are 5 ways to make money win it, inherit it, marry it, steal it or work for it and only one of those is guaranteed to bring you any sort of self worth – WORK FOR IT.

2. if you buy what you can’t afford… and lose (stock / house etc) don’t throw your hands in the air – claim bankruptcy and think we’re feeling sorry for you because “someone said you could make a 5k mortgage payment on a 2k income” or “everyone in your office was going to be a millionaire”. Be embarrassed that you’re fucking stupid…. and lazy.

3. turn off that goddamn media outlet (tv / magazine / tvo etc) that keeps feeding you the bullshit about you deserving a better lifestyle without worrying. “Pay later – take a break – you inc. etc etc. In less democratic & sophisticated countries that ‘marketing’ has another name for it; PROPEGANDA.

4. gather all your friends and decide you are going to 1 gas station only (one that isn’t owned by the same company). what this will do is force a gas war where x station will have to drop their prices because y station did. Amazingly you will see this ‘fuel crisis’ was no more than a house crisis disguised as an energy crisis presenting like a Gr. 11 pyramid scheme who’s rule is as follows.

As long as there is an ample supply of idiots – there will be a demand for get-rich-quick schemes that leave them broke & whining about it.

Take responsibility for your personal due diligence!

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