If You Ain’t Got No Pocket…

12 10 2008

Looking over the postings I’ve made so far, looks like some pretty grim stuff.  But one of the reasons for this blog is to highlight golden opportunities engendered by this current global economic collapse.

9 October 2008 Dow Jones Industrial Average

9 October 2008 Dow Jones Industrial Average

Opportunities to press for a more equitable structuring of the current economic infrastructure for the Individual Citizen.    Changes  that would give People some relief.

What sorts of changes?

  • Reinstitution of Usury Laws
  • Elimination of Credit Card / Credit companies current practice of data-mining the Customer’s financial data and increasing their interest rates if they are late on any other bill; such increases to rates in the 30, 40, 50, and 60 % range. (The highest I’ve seen is 62.3)
  • Give Citizens not just control, but ownership of their Credit (and Medical) Information. The current mercantile approach is too fraught with abuse, and enables abuse of debt by both Individuals and organisations.  This means Citizen-centric designed Privacy controls.  Equifax, TRW, and the like more properly would compete with each other to sell storage, security, and delivery services to the Individual, who would be considered to own the information.
  • Requiring mortgage issuers to maintain a minimum 50% stake in the note for the life of the loan.

… and a few other measures I’ll probably rant about later.

Merely recapitalising the banking system isn’t enough without an international capital market restructuring that includes utter transparency for derivative products.  Otherwise derivatives are worse than worthless as a liquidity device – but serve in that case merely as a dodge, as current efforts will, without the buy-in of an angry populace.  Without credible effective transparency and regulation of derivatives, bailouts and bank nationalisations serve only as a temporary, jury-rigged patch of confidence, bubblegum, spit, string.  Our trillions will only buy us a shoeshine,  a smile and a wink.

But the good news is that it can be done.  In all probability Barak Obama wil be the next President.  And he seems to be open to suggestions and innovative ideas.

My first suggestion is more an exhortation to keep on a course to rebuild the middle class.  And to start by instituting some or all of the reforms noted above.  After all, as virtuoso bassis Victor Wooten says, “You can’t hold no Groove if You ain’t got no pocket.




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