What are the long term effects of the current world crisis?

 You can sense that something isn’t right.  Something is changing and not for the better.   If you look at the world today you get snippets of what is happening, but is it a trend? 

 Economic recovery will very much depend upon a positive attitude in the consumers and investors around the world.  Almost everything we hear nowadays is anything but good news.  The Financial Sector in a majority of countries is corrupted and virtually bankrupt.  The leaders of many companies have run their companies into the ground trying to maximize their personal wealth through salary, bonuses and equity.  Their remuneration is obscene and totally unwarranted.  They have not added value to their companies, they have destroyed them and now it is the taxpayers (their former clients) who are being tasked with bailing them out.  It’s too bad that we are rewarding bad performance and not allowing companies that deserve to fail to do just that.

In North America, we have an Automobile Sector that blew it and made all the wrong decisions.  They misread the trends and developments and actually reversed themselves in areas where they were being innovative and getting it right.  The best example is the GM EV1 which was revolutionary and a good start to getting off the carbon trail.  I equate it to the Avro Arrow which was the best fighter bomber of its day never to have been built.  In both cases the products were destroyed to try and move the clock back.  We had quality issues which have for the most part been addressed.  I remember my first Japanese car – it was a piece of junk but then they got it right in subsequent years to where they were tops in quality and it took the big three awhile to finally catch up but we still have the perception that the quality isn’t there.  Recent surveys have shown that many of the vehicles from the North American manufacturers are better than their Japanese counterparts.  The Big 3 screwed up and we are being forced to try and save them – the jury is still out on that front. 

 

 

 

 

 

 

 

 

 

 

 

 

 

People are angry with having to bail out the financial institutions around the world and they don’t see any change in behaviour or method of operation.  Maybe China’s solution would smarten them up – look at the Milk crisis and the main perpetrators have gone to jail for a long time or have been sentence to death.  Sounds like a deterrent to me.

Robberies and violence seem to be on the upswing.   People are losing hope and are getting desperate and doing what they can to survive or thrive.  Can this be the start of a trend that could lead to anarchy?  A Russian scholar says “There is a high probability that the collapse of the United States will occur by 2010,” Igor Panarin told dozens of students, professors and diplomats Tuesday at the Diplomatic Academy — a lecture the ministry pointedly invited The Associated Press and other foreign media to attend.  Will there be a lot of social unrest?  There was during the Great Depression so it is quite plausible for the same to happen in modern times.  How far it goes will depend upon the levels of hope or despair we get to in the future.

If the ones who helped create this situation don’t change their ways we can expect a push back by the investors and consumers who are needed to right the ship. 

I despair for the lack of will on the part of governments to correct the causes of the problems in concert with their efforts to reverse the effects of the downturn in the economy.  It is just going to get worse but the creators of the problems are sitting pretty with their bonuses and offshore bank accounts.  They won’t even face paying the taxes that will pay the final tab on this problem.

The Financial Crisis

This is a very troubling time.  The biggest question may be, Why? 

The situation the world finds itself in can be traced back to a fundalmental greed.  People found ways of skirting rules, removing rules, or ignoring rules to maximize obscene profits for doing nothing of value.  They will, of course, get away with it.  You don’t hear the United States saying that they created and allowed the environment where “hotshots” made billions off the backs of the investor community with no regard for the risk and impact their actions had on the world economies and people.  It’s too bad that they will be able to keep their ill gotten gains with impunity, seizure of all their assets and a life in prison would be more appropriate for these greedy scum sucking bastards.

So how does the world recover?  We in effect print money and charge next to nothing for borrowing it.  Now we run into a mindset that doesn’t want to take any “risk” and refuses to conduct normal business.  We have all been psyched out of common sense.  Commerce needs to continue but everyone is afraid that the big bad wolf is still at the door and maybe it is.

Bailouts have been provided to business in many cases yet they use this money as if nothing has changed.  Companies are flirting with bankruptcy yet continue the practices that got them there in the first place.  It isn’t business as usual people.  How do we get through to these people that they aren’t exempt from having to deal with less.   I can’t think of any examples of people that deserve “bonuses” because they are the ones that got us there in the first place.

It is going to get a lot worse before it get better.  It may take a “revolution” to set things on the proper path and we can hope that it doesn’t involve violence.

Am I a Grumpy Old Man?

I am beginning to think that I am a grumpy old man.  There are a number of things that are happening that I don’t fully understand nor support.  These aren’t just local but national and international in scope.

 

 

 

We have a great country and have many opportunities that we can go after.  The world is in financial meltdown.  Credit and jobs are getting harder to find and easier to lose.  On the one hand the US has admitted that the financial crunch started there yet they can’t understand why we are annoyed with them.  I can’t understand why the world continues to invest in American securities when they are going downhill fast.  They are spending all kinds of money, in the $trillions, yet they are talking about tax cuts.  How will they pay for all of these bailouts and loans?  The greed of the financial marketers to create all of those bad mortgages and loans and resell them over and over creating derivatives and other totally speculative financial instruments where they made obscene profits.  Even today after the bailouts these people just don’t get it.  They continue their greedy and self serving ways with “taxpayer” money.  There is no accountability, no shame.  This thing is going to get worse before we start to see a return to financial stability in the world.  This pisses me off.

 

In Canada, we are being pressured to rescue the big 3 Auto Makers.  This is a real challenge because we need the jobs but the companies haven’t corrected the problems that got them their in the first place and they don’t seem to want to address this issue.  They went for short term profits and built gas guzzlers and not fuel efficient vehicles using new technologies.  There was little or no long term thinking nor trying to address the “green” market.  Toyota and Honda both had hybrids that perform well and sell well.  GM killed their electric car.  The Canadian autoworkers say it was the financial crisis that is causing the problems today yet these same worker wanted GM to keep a truck plant open that couldn’t sell its products.  The company screws up and the workers pay.  This pisses me off.

 

We are in NAFTA yet the Americans don’t play by the rules and they almost destroyed our forest industry because we didn’t use the same model that they use.  The US Congress is likely to become very protectionist and hurt Canadian jobs as a result.  My thinking is that we should turn off the tap for Canadian oil and sell it elsewhere in the world where is would buy the appropriate respect.  This pisses me off.

 

Canadian politicians at the municipal, provincial and federal levels are jerks.  Our city politicians can’t decide what the city should be funding and what it should not fund therefore our property taxes are out of control.  The Ontario Government has failed miserably except when it comes to teachers.  Now a teacher with the appropriate time in can make over $90,000 a year for less than 10 months work.  Their argument that they work very hard during those months doesn’t cut it, when I was in the Army we were expected to be available 24/7 no matter what for so-so pay.  The provincial liberals just got blasted by their auditor general who says they suck.  The federal politicians don’t really care about us; they only want their perks and powers.  This latest coalition crap is symptomatic of the problem.  Jack Layton says that this is the way that proportional representation would work yet he rejects things before he hears them and he is overly partisan about anything that he does provide assistance – if he touches – Jack and the NDP did it.  A pox on all their houses.  This pisses me off.

 

There are a number of strikes currently under way and I for the life of me cannot understand what is going through their heads.  I’ve been on strike and it is so stupid and non-productive, you never get it back.  The bus drives say they want respect, the postal techies say they want respect yet they show none to their customers, the people who make their jobs possible.  What about the hundreds of thousands who have lost or could lose their jobs because of all of the above?   We all have to sacrifice in this time of crisis but it seems to be me first.  This pisses me off.

 

Something is wrong with society when greed is rewarded and running a company into the ground gets you a government bailout and people show no respect for their fellow human beings.  We are doomed.  Our future is dark.  No wonder I am a turning into a grumpy old fart.