I mentioned some time back that one way to view current events and model for future events is to imagine that only the worst and most stupid decisions will be made by policy-makers or that stories that would be "noise" during most years would ramp up to "worst case" as well, be it flood, fire or hurricane.
Luckily the natural disasters haven't amped up. As a matter of fact, this has been one of the mildest summers in Missouri that I can remember. Refreshing. I hope it lasts through football season.
On the U.S. political and economic front, however, this model has proved quite prescient.
Fannie Mae and Freddie Mac, two organizations that have morphed from some semblance of firms dedicated to helping lower middle class folks get on the propertly ladder (back when that ladder sat on a firm foundation, not quicksand) into cancerous beasts that line the pockets of insiders and politicians, are teetering on the brink of failure. This will result in a massive taxpayer bailout. If it doesn't, and their bonds crater, then China, which will be hurt intensely by the loss in value of these bonds, will surely retaliate economically. Keep an eye on this story. One might hope to move these firms into receivership and wind them down and force the market to find a new way to fund mortgages. My bet - they'll just break them up into many smaller entities, each with it's own gaggle of insiders who hope to feast on fees and political perks. Instead of two gigantic cancers, you'll now have ten or twenty. Amazing how the decision-makers keep turning to the causes of the problems to act as cures.
On the foreign policy front, the U.S. ally Georgia suffered a humiliating defeat. Listening to the incompetents that fill the offices of my country's State Department whine about it is sickening. I swear that the water in D.C. must be laced with high-powered drugs.
And then there is politics. Something fishy is going on in the Democratic party. Obama, Big Daddy Hope himself, looks like he is being set up for a fall. Now, at this point, I regard both parties as equally moribund and corrupt (it took me awhile to lose my faith in the Republican party, I had always viewed them as fiscally smart with a limited foreign policy to my liking - they rubbed it in my face for 8 years and I've had enough of their stupidity. I can give the Dems a pass, they are ignorant when it comes to basic economics. The Repubs have no excuse, they just became corrupt and lazy at exactly the time the Republic needed them the most, but I digress...). That said, Obama is at least running on a positive message. Hope is a lot better than hate or anger. But these little stories of Clinton hacks continuing to snipe at Obama are moving from amusing to worrying, or at least should be for Obama supporters:
Clinton supporter sues Obama on grounds he is constitutionally ineligble for Presidency
By: Jeffrey Schreiber
A prominent Philadelphia attorney and Hillary Clinton supporter filed suit yesterday afternoon in the U.S. District Court for the Eastern District of Pennsylvania against Illinois Sen. Barack Obama, the Democratic National Committee and the Federal Election Commission.
The action seeks an injunction preventing the senator from continuing his candidacy and a court order enjoining the DNC from nominating him next week, all on grounds that Sen. Obama is constitutionally ineligible to run for and hold the office of President of the United States...
Rule #1 in American Politics - Never trust a Clinton. Never. Never. Never. Never. And Obama is going to give both those jokers prime speaking slots at the Convention?
The official Econostorm Warning Flag is flying here at FutureJacked. I think we'll see the rumblings over September. Have your sh*t together by October, friends.