Monday, Feb 08th

Last update05:20:13 AM GMT

You are here Editorials Bruce Enberg

Bruce Enberg's Commentary

Stand your ground, Jean Valjean

E-mail Print PDF

It’s 4-20 and if you can’t remember reading Les Miserables in high school because you were smoking in the boy’s room, there is just one aspect of the story relevant to this rant. It’s that Jean Valjean got five years in prison for stealing a loaf of bread. He then got another 16 years for several attempted escapes. In the past this was considered shocking, but in the corporate owned prison system of America this would a light sentence.

The Corporate prison system routinely engineers ever longer sentences for prisoners in their custody for simple infractions of the rules. A serious crime like stealing bread on three occasions can get you life without parole in a private prison.

Last Updated on Friday, 20 April 2012 21:25

Say goodbye to the Middle Class

E-mail Print PDF

We’ve had an increase in the Initial Unemployment Claims number for the second straight week, and this may or maybe not bad news. It’s too early to get really worried about it, we’re still way below the 400,000 number that seems to indicate a failing economy these days. The numbers are seasonally adjusted and thanks to global warming we had no winter to speak of, causing the normal spring spike in activity to start in January. Low winter heating bills put an average of $400 per family into the economy with twice that in the northeast. Unfortunately,  high gasoline prices are taking it back again.

The far right is screaming about hyper-inflation again because of gas prices, and this totally wrong headed thinking is common among Federal Reserve Board members. This is what is spooking the stock market, that the Fed might start “fighting inflation”.

Last Updated on Saturday, 14 April 2012 11:41

High Noon

E-mail Print PDF

The US stock market fell hard at the opening bell and the corporate pundits were out immediately blaming it on the lower number of jobs created last month. With “only” 200,000 new jobs created they implied that the Obama economic recovery is falling flat. The first problem with this “news” was that the real numbers don’t come out until Friday, this was just an estimate from a private payroll service company that has become notorious for being wrong.

The real reason the US markets were down, and they were following the world markets from overnight (US time), is that the fall was based on the Minutes from the last Federal Reserve meeting. A large majority of the board has decided that there will be no more quantitative easing purchases of paper assets, or what is effectively the wholesale printing of money for rich people and their big banks.

Last Updated on Wednesday, 04 April 2012 21:50

There's no bread, but we have circuses

E-mail Print PDF

The corporate media is talking constantly about the lottery, and the potential 2/3 of a billion dollar prize tonight. To their credit they do point out the 176,000,000 to 1 odds and how absurd that is, all the while showing the people lined up for blocks certain they can beat the odds. The people they interview in these lines are all gambling to have the American dream: to pay the bills, send the kids to college, buy a house, help their friends or stray cats, or maybe get their teeth fixed.

A lottery like this is harmless fun in itself, but the tragedy isn’t just the occasional person who spends his or her life savings to buy tickets convinced of the possibility of winning. It’s what our society has come to: that these people are increasingly seen as normal, hopeful people, and not as pathetic. Really, they are the tragic victims of 30 years of Republican economic thinking. For the bottom 80% of Americans, the lottery is their one shot at economic freedom.

When these lotteries started you heard lots of stories about people who spent their life saving because they were sure they could win. You do increase your odds by buying more than one ticket, but not enough to matter. There were even companies formed to buy out all the tickets when the odds were only 50 million to one. It’s physically impossible to do this with the new higher odds.

I’m surprised they don’t raise the odds so high that nobody would ever be likely to win, - they’d still sell tickets. In fact, the states play the lottery too, - the state with the winner gets a nice windfall from the income tax of close to a billion dollars. The state might fill some potholes, but more likely give another tax break to individuals who by themselves make a billion dollars a year, or more, and typically pay no significant taxes.

What to do with that much money if you win? I’ve been giving it some thought, people are always wanting investment advice. The thing is, there is no safe place to put money. Besides the fundamental instability of the crazy situation we find ourselves in, there is a realistic level of paranoia to consider. If you have lots of money you aren’t suddenly allowed past the velvet rope by the one percent’s bouncer.

Having a real money makes you a target for those who make their money by looting and pillaging, they don‘t just go after the middleclass. Even if you invest conservatively, you could wake up one morning and find your investment is now worthless, since most investments today are just paper. Buying hard assets is no guarantee of safety as their value is set by markets that are inflated and then collapse to far lower levels than is realistic.

To be safe with your money, you really need to be in the “too big to fail” class, the people who just “create” money out of thin air, and they don’t let riff-raff like you and me in, no matter how much money we have for now. You weren’t a legacy admission to Yale? Forget about it.

With a couple of hundred million, leaving the country is an option, but you are kidding yourself that you’re really safe. Safety is in numbers, but not the kind on your bank account.


Last Updated on Friday, 30 March 2012 21:30

Obama - Rubber Stamp this before lunch

E-mail Print PDF

Initial jobless claims dropped again last week to a four year low, taking us back to the early days of Bush meltdown. We really can’t begin sing “Happy days are here again” until claims drop from the current 348,000/week to under 300,000, but we are moving in the right direction. The survey of economists had predicted a sharp rise in claims, but these are the same economists that are almost always wrong. Why do reporters quote them? You would get a better prediction by flipping a coin.

Monthly home sales numbers are up 9% over last year, but down one percent from the previous month. The number of houses currently on the market is actually down to a four month supply, which is good news for the economy. This allows people who want to move, or build their dream house sell their current home, and this should build a reinforcing cycle.

Last Updated on Thursday, 22 March 2012 21:55

Page 17 of 21

America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!