The White Lily Blog

Two Miracles for Barack

An article on Seeking Alpha lauds the recent Wells Fargo success story (“earnings up, returning money to taxpayers, now we’re seeing the turn-around” and so forth). The comments, however, many from well-traveled street players, called the piece a fairy tale designed to give the market a boost.

Many, in fact,  predicted a much darker narrative would emerge when other banking reports come in. And some just flat out challenge the data itself.  

Gee, I am sure I heard an NPR report on the Wells Fargo news that said their data was high quality, and the data was based on conservative loans, not the pre-crash false prosperity, so that we had real reason to rejoice. NPR wasn’t pimping that same old sub-prime-fueled speculative growth, right? We’re all about Change from all that, right? No more rose-colored steroids, right? Any growth now is going to be well-regulated, well-checked, and de-ponzied the way kids are de-loused in school, with a fine-toothed comb. Right?

Nah, it’s back to business as usual. And the ‘stimulus’ is going to return things to normal, but it won’t be a new normal,  it’ll be the same old same old: sub prime loans, unsubstantiated real estate appreciation, high debt ratios, only this time the government’s going to be the back-up.

 See, Obama is all about business as usual, in spite of the rhetoric.  I can see it all clearly now, but only after my one son, an avid Obama supporter, took his yearly bonus and invested it in the stock market last week. Nothing like family money on the table to make one take a real close look at what’s going on. Is the kid going to lose it, or is there a chance this thing could turn around? Can Barack make it all go away?

Why sure. It’s going to turn around. It’s going to heat up and bubble like a witch’s pot. And that’s what Europe’s worried about.  Because it’s not going to reform, and we’ll be back in the same spot some time down the road, and that’s okay with the guy in charge. But Europe’s thinking they won’t make it through the next one, given their rotten demographics.

Here’s the give-away. Obama once was asked what he would do if one of his daughters got pregnant, and he said he’d be glad she had abortion as an option to make good her ‘mistake.’ At the time I stumbled on that comment, out of pity for those adorable daughters of his, because one thing statistics show us about women who abort an inconvenient fetus is this: they will be back for a second abortion, and a third (with some exceptions, of course). Women who have the baby, on the other hand, and who take on the responsibilities of motherhood tend not to repeat their error (again with some exceptions). And it is difficult not to conclude that the latter learned a lesson from the experience, but the former did not.

 Just like a bailed-out bank.

That’s the key to the stimulus package. It’s exactly the same logic. It’s not reform at all, it only buys a little time, and like an abortion, allows the fun to go on. Obama’s Change package will ‘fix’ that ‘inconvenient mistake,’ but it won’t change the girl who made it. So my son may be correct to invest his bonus in the stock market. It does stand a good chance to bubble up again, and an equal chance to need another ‘abortion’ down the road.

It’s not guaranteed everyone loses by that; the temporary and unaffected boyfriend isn’t, and my son may be able to recognize the impending signs, and bail out in time. The economy as a whole, however, will take another hit, just as the repeat aborting woman does. There are long-term consequences to abortion, whether you’re talking corporeal or economic, girl-dom or stock market (hugely increased risk of breast cancer, for one, in a person who has multiple abortions, and increasingly impoverished and spiritless middle class in the other case of repeated stock market failures followed by bailouts to save the system but not our nesteggs).

But this is clear, to me: Obama just wants to cancel the effects of any mistakes, not cancel the party. Change? Forget it. Nothing in his package broadens ownership, nothing breaks up those huge monopolies, so nothing addresses the fundamental instability of the system. Just as nothing in his social policies encourages virtue and marriage and abstinence, fundamentals in the struggle to avoid physical abortion. It makes the whole future scenario distressingly predictable in both cases.

Maybe if those who wish for a real change in the US economic climate should stand with pro-lifers and pray for two miracles. Presently we are praying a million rosaries before he speaks at Notre Dame that he changes his mind about abortion. Those who want real, not just speculative, economic growth might as well join us as the issues are more related than immediately apparent; we could all pray that Obama realizes people have to learn lessons in life and because of that, undergo real change, not get bailed out and keep on with the program.

4 Comments so far
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I found your blog after reading your comment at JustThirdWay blog. Considering how strongly the market reacts to announcements by Government, the Fed, and Corporate statements, I’m inclined to wonder if the current dire state of the market is the result of a long campaign telling us that it was bad. As you’ve pointed out, much is based on a weak premise (real rot), but to constantly harp on it will drive it down, and then to constantly tell us it is better, it no doubt will be better. Another side of politics as usual.

BTW, the next pump and dump bubble is carbon credits. follow the money.

Comment by Mark Gross

Hi, Mark,

I visited your blog and saw many good things! Perhaps you saw the link I have to the Notre Dame petition (or rather, one petition but a good one, sponsored by faculty and students who oppose Obama’s invitation)–I saw the great tee shirt in your photo. You have a nice blog, and I hope to explore it more, and I’ll leave a comment. I appreciate that you did!

Whether commentary hurts or helps the situation, we’d better ignore the effect commentary has because we’re inviting human beings to stop commenting and go completely so sleep. Our problems, as you point out that I point out, are based on real rot, and that’s what we’d better keep the focus on. Too concentrated ownership for one, as you must know, or suspect, coming off the JustThirdWay site. Here’s a link to an interesting, really interesting interview with a former regulator:
The collapse, according to this guy, was caused by out and out fraud, and over-concentrated ownership–he gives a solution to the latter; he says the government is trying to cover all this up. You don’t want to see the market go up again until it’s fixed, confronted, exposed, right?

I’m gonna follow the money in the carbon credits thing. But you know my inflammatory heart is drawn to their plan to give each and every American our own carbon ID card that will show how far we drive, what temperature we keep our homes at, and if our dogs are neutered. Probably all our phone records. That’s taking exposure to a whole new level.

Nice to hear from you, Mark. Happiest Easter season ever. If those are some pics of your family on your blog, you’re a lucky so and so.

Comment by thewhitelilyblog

Hi again Janet!

Thanks for the link. Did you see Michael’s item from a few days ago on the change in Federal Accounting Practices which effectively allows the situation mentioned in the report link? In other words, protecting us from Maddoff by making his actions legal? goofy.

BTW, the pictures aren’t family; just friends. thanks for commenting, and hope to hear more from you. I’m reading more of Michael Greaney’s recommended list; starting with Kelso and Adler. I’ve got a long way to go, and does anyone really understand all this mess?

Comment by Mark


Thanks for the last couple comments you left;
would you mind emailing me directly?
[I erased Mark’s email address.]
The blind comments are hard to carry on a conversation through!
thanks, Mark

Comment by Mark

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