Stimulus or Economic Hit?


Photo: Russell Lee

I keep receiving reports that banks are cutting lines and refusing to loan to healthy businesses. There are more reports of profitable car dealerships that had the plug pulled in a manner that does not make economic sense. The oil price is running up through speculation. Appraisals are much stricter as required by new rules and may be slowing the real estate market.

This does not look like stimulus. This looks like the banks have their war chest in place and now they are coming in for the kill. The lower the price of assets and the more desperation on Main Street, the more they and their syndicates can pick up assets for cheap, the greater their ultimate control.

Yes, there are some stimulus funds trickling out – a few jobs totally dependent on Wall Street-Washington largesse. Other than that there is a series of actions designed to intentionally stop and implode the heart of the economy.

The supporting “green,” “social innovation and venture,” “entreprenuership,” and “citizen empowerment” aspects of shock doctrine are emerging as well. While you are bankrupting thousands on Main Street, it is always great PR to trickle back a small % of the profits in promoting the very thing you are destroying and doing it in a way that makes you money.

Where are the foundations and not-for-profits arguing that what communities need are sound money, real transparency, circulation of local equity and a cessation of covert operations, hard narcotics trafficking, mortgage fraud, and bank bailouts?  The ones that do are typically not first in line for funding and grants.

It’s looking more and more like a major economic hit is underway.

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