Revolutionomics 101: The Revolution Is Dead; Long Live the Revolution

Remember Jim Trafficant? The FBI and the IRS prosecuted Ohio Congressman Jim Traficant for supposedly abusing his office by accepting money from businesses in his little congressional district in Youngstown, OH (and for allowing some of his staffers to help paint his barn). Now Traficant has been rotting in a federal prison for several years and he didn't even manage to bring down the entire nation's banking system – costing tax-payers trillions of dollars. What Traficant supposedly did was small-time compared to the actions of Senator Chris Dodd who is Chairman of the banking committee and was instrumental in pushing Fannie & Freddie deeply into the sub-prime market. The most powerful man on the Banking Committee clearly took bribes from Countrywide which was pushing to make a fortune by selling more crap to Fannie and Freddie. It's not difficult to connect the dots. Receiving benefits from a corporation that would not be given to any other customer is the same thing as being given compensation. It is abuse of his office and claiming ignorance of the law does not exculpate one of a crime. Where is the FBI? They were the there for Congressman Jim Traficant. The IRS was also involved with Traficant's prosecution. Why are they not going after Congressman Charles Rangel who is obviously guilty of tax evasion? I guess Traficant, like Rangel should have just pleaded ignorance of the laws he helped legislate instead of "not guilty". I want every one of these charlatans who took such bribes and those who cheat on their taxes indicted -RIGHT NOW- by the same zealous people who prosecuted Trafficant – or I want to see Jim Trafficant immediately released from federal prison – with an apology. Congressman Traficant became only the second congressman to be "expelled" by the House since the Civil War. Of course Traficant wasn't popular at all with his fellow Democrats as he usually sided with the conservatives. It would be very interesting to hear from Congressman Trafficant and how he feels about this double standard. Perhaps Rush Limbaugh or Sean Hannity could get an interview with Trafficant from Prison. Source: http://www.tableofwisdom.com

Cody,Are you telling your Mom to buy?

This just in, Govt to pass an emergency bill for one billion dollars to buy anxiety meds for everybody on wall street.

"And see, I’m gonna take Lobo on one more bike ride around the block and then have a peanut butter and 4 fruit preserve sandwich on whole wheat with a big glass of milk and go to bed. We’ll get ‘em again tomorrow." ************************************ Okay, Cody, I have to say that you are just too gosh darned adorable. Thanks for your reassurances. And, oh, YOU NEED YOUR OWN SHOW! I love watching and listening to you. You are one very smart guy!

As long as the country refuses to tie our dollar to something of more value than an IOU we will never be free of financial crisis. To add as long as the citizens and corporations of this nation put off accountablity for government bailouts the crisis will continue, both go hand in hand. This I believe is what the markets need to truly recover, anything else will just prolong the inevitable (a complete financial collapse). Oh yea and get the government out of the way. This would take a true revolution.

I think the hyperinflationary holocaust will have people resorting to barter and using benjamins as toilet paper. God bless Bernanke, his unlimited balance sheet, and his helicopter. God forbid we help the savers and the responsible.

Right on Cody! I am not worried about my retirement package as I know the market will come back and I will have more than before. Simple idea of re-investing, buying more while the market is cheap. I just wish we could get the government fat cats out of the picture for now. Jeeez! They are killing us economically and politically. All of us have to tighten our belts, make wise spending decisions and get through this so why doesn't the government do the same? It is time for a revolution and fire all of them. But as one of your readers said, most Americans are too interested in American Idol, etc. to stand up and fight for their own rights. Here is one college professor that is with you.

Cody, I share your positive outlook here. In my MBA opinion, we have been screaming to the high heavens for eons about how we utilize far too much credit in this country, living beyond our means, etc. etc., yocky, yocky...now the consequences have come home to roost and this is the capital markets right sizing--yet again. We saw it just before and after September 11, 2001--inflation of credit ratings, etc. Can we safely say that Wall Street took a cue from congress on the Community Reinvestment Act, knowing the mid and long term consequences of making loans to the non-creditworthy and gauging when the market might collapse? The attitude being, "Ok, if congress is going to be this foolish, then we will ride the wave and get out when it is time." Now a democratic congress is calling the CEOs to the carpet for what the democratic congress created. We can fairly guess the CEOs response upon their post-grilling departures from the congressional floor--"these people are clueless, clueless, clueless..." Certainly, we should hope for getting back to the credit principles that the forefathers intended for this country--never live beyond our means and don't spend more than you make and this market just might be the market to put us there--but alas, only temporarily. The economic demand for the American dream is far too strong. Certainly, the idea of every American family in a home is admirable. However, our forefathers also held to the principle of an honest days work for an honest days pay. This crisis hinges on the lending to individuals who do not exercise that principle to the degree necessary to pay for the American dream. No matter how you slice it, engineering socialism is NOT going to change the attitudes and ultimate life outcomes of those who refuse to work for an honest days pay and live within their means. Now the entire globe is suffering the consequences of an idealistic, unrealistic democratic congress and the albeit temporary recipients of this failed experiment. The $700B bailout package is a bandage on a wound that instead requires surgery and stitches. The surgery and stitches will eventually come in the form of the capital markets right sizing themselves after the natural economic cycle. It cannot be legislated. The real concept that BOTH sides of the economic debacle need to realize is that the only time "SUCCESS"

The ride is making me sick, but I like peanut butter sandwiches.

It's in times like these when true leaders come forth. For they have stayed silent and somewhat invisable watching as the hords worship at the alter of the quick profit, drunk on self-imposed fiscal and political greatness. Now, when chaos runs rampant, the truly wise exercise their calming strentgh. A true greatness not imposed by self, but exposed by the need to come forth and steady the hearts and minds of the lost and selfish. Who will be that person(s)? I say Cody!! Who's with me?

Cody, ya gotta love this. Your right, the country will be fine. There is no ticker symbol for the one commodity that really makes a difference. Human capital. We have the most industrious, intelligent, and innovative work force in the world. If most of us paid more attention to history and actually took something away from it, our market might be in a better place today. I don’t think anyone is in a panic except the businesses and individuals that have large debt to income ratios. We just can’t forget that honest, hard working Americans are the most valuable resource we have and we need to stop placating and continue to developing that resource. Revolutionomics should be better termed evolutionomics.

NOTE TO EVERYONE WHO BELIEVES WE ARE IN A 'TYPICAL' CYCLE: We are not. Prepare for the unknown because he's knocking at your door.

Cody, You are right. It is the spirit of the people of this nation that will pull us through. Good companies with solid business plans will always have an investor. Unfortunately the people's voices were ignored. Whether leaders like it or not the people will be heard. It is amazing how the people and their opinions continue to have a greater effect than any move our gigantic governments try to make to sway the markets. Oh, the spirit of our people is alive and well and we will pull through this historic time. Many of us are already back to the basics. What we don't care about is whether the people that gambled with our money (banks, insurance companies, politicians, and stock market gamblers) pull through it with us. In fact, many of us hope they don't.

Love the article Cody! The only thing I would add would be the path of returning to prosperity runs in conjunction with personal responsibility. Keep on keepin' on!

Fix? Easy! Eliminate corporate income taxes, implement flat tax and elimnate all deductions, get rid of Sarbanes Oxley and the mark to market rule. Lift restrictions on refinery's and start drilling. Eliminate taxes on all investments until that investment is sold. Done, bahda bing, bahda econonomic boom!

“IMO, the reason the global financial situation has deteriorated is the various players have reacted incorrectly to the housing collapse, and this is because they fail to view what has occurred as a mania. If one doesn’t accurately assess the cause of the problem, solutions are bound to fail. It’s like this Washington; people were gambling, on a scale unseen in the history of man. And treating failed gamblers like they are victims can only make the situation worse:” quote by Ben Jones Housing bubble blog

Cody, I hear what you are saying and I agree in principle, however, is is of little consequence to most of us, as Palin orated, "Joe six pack". What little money some of had is fastly dissappearing, our personal debt is rising, our food bill is rising, the wife refuses to cut back on expenses which by the way may cause a revolution at home. I guess in the end, we need to strap in and hang on tight and hope for the best. gotta go and explain to my two cats the stark reality of no more canned food, strictly dry during this economic crisis.

Check out another angle. The biggest worries today are peoples apathy and ignorance. The disgruntled herd seems to seek the easy pathway out by following the Obama crowd. What a mistake! They have not learned and seem to care less the problems they are facing are rooted in moral decay. Gone in big business ( banks, insurance companies,financial institutions) are the simple concepts of the golden rule. These have been replaced by "anything that works to meet our objectives and we can get away with is ok". These "new" business principles have roots in childhood moral guidance and adulthood examples. To redress the consequences of these horrible ills we have been popping government pills as they are dosed out.They may or may not work. First, we must carefully scrutinize the candidates for the presidency. Start with their parents to examine their moral turpitude, followed by candidate upbringing, early adulthood associations, ability to be forthcomming, sense of confidence they instill in others, track record in public life, AND THEIR WILLINGNESS TO ADMIT THEIR LACK OF CANDOR BECAUSE IT WOULD BE COUNTER PRODUCTIVE IN PURSUIT OF THEIR GOALS! See the connection? I submit Revolutionomics must first rule out herd instinct then, maybe, reason will prevail and decisions will be first viewed through the prism of morality before they are allowed screw up the country side.

From the great Dwight Schrute... "BLOOD ALONE MOVES THE WHEELS OF HISTORY! [pause] Have you ever asked yourselves in an hour of meditation - which everyone finds during the day - how long we have been striving for greatness? [bangs fist] Not only the years we've been at war – the war of work – but from the moment as a child, when we realize the world could be conquered. It has been a lifetime struggle [bangs fists again] a never-ending fight, I say to you [bangs again] and you will understand that it is a privilege to fight. WE ARE WARRIORS! [applause] Salesmen of north-eastern Pennsylvania, I ask you once more rise and be worthy of this historical hour. [even bigger applause as Dwight gives a horrible sounding laugh] No revolution is worth anything unless it can defend itself. Some people will tell you salesman is a bad word. They’ll conjure up images of used car dealers, and door to door charlatans. This is our duty to change their perception. I say, salesman – and women – of the world... unite! We must never acquiesce, for it is together... TOGETHER THAT WE PREVAIL. WE MUST NEVER CEDE CONTROL OF THE MOTHERLAND..." Bring back the Schrutebuck!

There was a time when I would have agreed with you. Americans today are a dim image of early 20th century Americans. Our schools have been dumbing us down for decades with a subtle government-knows-best theme and now we know very little about revolution. Heck, we would not want to offend anyone in that process. The current government intrusion involving the 850 billion bailout package is a clear example of a power grab and many Americans are more concerned about the ‘Dancing with the Stars’ winners. And politicians have no fear of the voter. Look at the arrogance of Barney Frank. He looks straight at the camera and declares that he shares no blame for the Fannie Mae Freddie Mac disaster. Meanwhile, back in Massachusetts, the folks are intently watching ‘American Idol’ and will re-elect that dope. When 50% or more of the people pay no income tax our system will collapse. We are close to that number.

Cody, just FYI, creating new currencies is a relatively popular pastime. There are already a few communities around that issue their own flavor of Monopoly money for local use. As for Revolution, you don't really want that. What you want is BAU from whatever time frame is your fav. Revolutions are bloody. Lot's of people die. Don't think for a second that what's going on is only about WallStreet, Banks, etc.

the good news is, I bought into the market, the bad news is, it was at a limit price set wed morning... 33 for sso (LOST 10% so far, no worries tho, im holding long term, and if this goes to zero, theres going to be more to worry about than my stock portfoilio(try food for next week)... I figured if it got down to there, we would be in a depression.