In May, real estate developers met in Las Vegas to discuss the future of the American shopping mall. Judging by The New York Times’ account of the conference, many developers were reluctant (or unwilling) to entertain the idea that the post-financial crisis world could be much different than the environment that preceded it. Not only were they less-than-attentive to environmental and sustainability concerns, they seemed indifferent to the fact that consumer spending had fallen off a cliff and is likely to remain subdued for years to come. Many, though not all, were waiting for things to get back to normal–the way they were before the crash…
Guess these developers haven’t figured out the party’s over yet…
The Fabulous Thunderbirds, “Wrap It Up” (1986)
YouTube Video Link
In November 2008, American voters sent the Republicans packing.
And the politically-savvy electorate here in the United States weighed its options and decided… drum roll please… that it should be the Democrats (surprise, surprise) who will now occupy the White House and increase their majorities in both chambers of Congress.
After all, they promised change.
Then again, if you think about it, which politician since the beginning of time hasn’t?
Taking a page right out of the Washington political playbook, the current administration is trying to “kick the can” of our financial day of reckoning further down the road— while making our current economic situation even more precarious from bailout spending that, even when adjusted for inflation, surpasses the combined price tag of the Marshall Plan, the Louisiana Purchase, the race to the moon, the S&L crisis, the Korean War, the New Deal, the second Gulf War, the Vietnam War, NASA and World War II, according to Reuters.
And when the road finally runs out, and the can be kicked no longer, I fear financial Armageddon will descend upon us.
At which point, I have to wonder, who then will we turn to for leadership?
And here’s where I really worry.
Will the American electorate resurrect that old game of, “Well, the Democrats blew it this time around, so put in the Republicans.”
I’m sure the Republicans will be licking their chops.
Or, while living in a now-nightmarish world, will Main Street, or what’s left of it, opt for someone else? Say, someone who will guarantee jobs, security, social harmony— in exchange for your liberties and rights.
History has shown it can happen. And it will undoubtedly occur again.
Just please don’t let it be here…
Nitzer Ebb, “Join In The Chant” (1987)
YouTube Video Link
This headline, found on the cover of the Chicago Tribune’s Sunday magazine a few weeks ago, was the first time I detected a growing thaw when it comes to America’s mood and the economy.
Recent polls seem to confirm such optimism.
And since that one-word headline in the paper, the financial markets have rallied, and the powers-that-be in Washington and on Wall Street have been busy trying to shore-up confidence in the fight against the recession and larger financial system through increased rhetoric… and more taxpayer funds, of course.
So much so, with the kitchen sink and everything else being thrown at the financial crisis, I’d actually be surprised not to see an upswing in our country’s economic fortunes…
For a short-time, at least.
In the meantime, I’ll keep plugging away at this keyboard, convinced that we’re still in the early innings of a nasty contest that might even go extra innings if current form doesn’t change.
But, by all means, feel free to celebrate, if you’d like…
Japanese Motors, “Single Fins & Safety Pins” (2008)
YouTube Video Link
“Zach,” a regular Boom2Bust.com reader, contacted me via e-mail a few weeks ago and suggested that the boat trip scene from the original Willy Wonka & the Chocolate Factory movie from 1971 would make a great weekend video, “to go along with the increasingly bizarre bailout plans and less and less meaningful explanations from the powers that be.”
Zach’s right. That scene from the first movie WOULD make a great weekend video…
Scene from Willy Wonka & the Chocolate Factory (1971)
YouTube Video Link
And now, a little trivia for you. From what I’ve heard about the original movie, some parts were filmed without the child actors/actresses knowing what was coming next. Most notably, the part when the Golden Ticket winners enter the room where everything is edible… and the “psychedelic” boat trip. It was hoped that this would allow the filmmakers to capture the children’s expressions more realistically.
However, it’s been said that actor Gene Wilder really spooked the kids during the boat ride with his creepy antics.
As such, “Veruca Salt” wasn’t kidding when she said she didn’t want “a boat like this.”
No “Weekend Video” for you tonight. Instead, I’ve got “Weekend Poetry.”
Huh?
How many of you know of Todd Federman? Todd’s a 25-year Wall Street veteran who’s somewhat of a 21st century Renaissance Man. Besides being an experienced trader/investor and volunteer for charitable and political causes— the man can write. Poetry. And what better to write about these days than the economy, which the New Jersey resident has a real knack for.
And now, for your reading pleasure, a poem by Mr. Todd Federman:
“The La$t Word at Christmas” by Todd Federman
(Inspired by “The Night Before Christmas” by Clement Clarke Moore)
T’was the night before Christmas, and all are bereft.
Our investments are down, there is no money left.
Stocks, commodities and private equity too,
It seems every sector has stepped in the poo.
The once high and mighty did quick fall asunder,
Fannie and Freddie Mac swiftly went under.
Wamu and Wachovia, both hit the wall,
And AIG, oh my god what a fall!
Bear Stearns, the once venerable could not survive,
And Lehman Brothers Inc, man o man what a dive!
Hedge funds were hammered, both here and abroad,
Their trading strategies were seriously flawed.
We turned to the Fed for much needed relief,
They’ll save our investments, that was our belief.
The Fed stepped in with a few trillion (to date),
Alas for poor Lehman, they were one step too late.
The big bank cut interest rates right down to naught
The impact was minimal, who would have thought?
The long bond now yields down nearby two fifty,
If you live on interest, that’s not very nifty.
And then just when things could not get any worse,
Here comes Bernie Madoff at the wheel of a hearse.
He promised investors a steady return,
But his evil scheme through their money did burn.
His victims were targets of the world’s largest theft,
Now god only knows what these poor saps have left.
Investors are hurt, many race for the door,
You can hear them scream, “We can’t take any more!”
And so I exclaim o’er this landscape of blight,
“Will the last person left, please turn off the light.”
Creative, humorous… good stuff. Although Todd already had me at “stepped in the poo.” It’s interesting to note that an excerpt of this poem actually appeared on page one of the December 31, 2008, issue of the Wall Street Journal.
Since then, Todd has published his first collection of 50 poems, entitled Rhymes for Turbulent Times. From a March 18 press release:
Rhymes for Turbulent Times, a collection of 50 irreverent poems, launches in March on Amazon.com. The book will retail for $12.95. Two poems in the collection, The La$t Word at Christmas and Subprime, appear in both text and audio formats on his website at www.rhymesforturbulenttimes.com.
A lot of reminiscing going on about how things used to be before the crisis… along with more stories of former high-fliers “reinventing” themselves in the fast-food industry:
And I don’t wanna be an old man anymore
It’s been a year or two since I was out on the floor
Shakin’ booty, makin’ sweet love all the night
It’s time I got back to the Good Life
It’s time i got back, it’s time i got back
And I don’t even know how I got off the track
I wanna go back…Yeah!
