Wall Street WARZONE
“Reaganomics Revolution” R.I.P. 1981-2011. Like Roaring Twenties: “Forever Blowing Bubbles, Dreaming Dreams, Scheming Schemes, Building Castles in the Sky … Then, They Fade & Die” as Capitalism Self-Destructs!
by Paul B Farrell, JD, PhD
| Discuss | Print | 6/18/2011

The thirty-year “Reaganomics Revolution” will be over soon. Like the Roaring Twenties, ending in the game-changing crash. Though a century apart, they share a common theme song of irrational exuberance: “I’m Forever Blowing Bubbles.” Many bubbles, now merging like tornadoes, in a perfect storm, a mega-bubble itching to blow, signaling the end of the ego-centered “Reaganomics Revolution,” which must, unfortunately, also take down America’s markets, economy, monetary system.

Yes folks, that one song captures the collective mindset of both the Roaring Twenties and the Reaganomics Revolution: “Forever blowing bubbles. Pretty bubbles in the air. Dreaming dreams. Scheming schemes. Building castles in the sky. Fortune’s always hiding. I’ve looked everywhere. Forever blowing bubbles. They fly so high, nearly reach the sky. Then like my dreams they fade and die.”

Then … like our dreams … they fade … and die. Nearly a century ago the bubbles popped in the Crash of 1929. Then the bubbly went flat during the long Great Depression. It repeats again with the Reaganomics Revolution’s endless “pretty bubbles.” Tornadoes merging. Destroying the American Dream. For a generation we have watched the damage created by a selfish ideology: The S&L disaster. Dotcom crash. Wars. Subprime meltdown. Great Recession. And yes, there’s more to come, more “pretty bubbles.” You’ll see below.

Irrational exuberance blinds us. On March 20, 2000, as dotcom exuberance raged, our column began: “Next Crash, You Won’t Hear It Coming.” Then came a 30-month recession. We went on reporting twenty advance warnings of the 2008 meltdown. Nobody listened. Till it was too late. Till a conflicted Treasury Secretary, myopic Fed Chairman and clueless Congress all panicked. Making matters worse. Setting up a new meltdown, dead ahead.

“Reaganomics Revolution” destroyed values of American Revolution 1776

Today our collective brain has been consumed by a “greed-is-good” virus. We have lost our moral compass. The values of the American Revolution of 1776 are dead. The Reaganomics Revolution has replaced those values with the unregulated free market with an “every man for himself, get rich quick” ideology that’s destroying America from within: Yes, “we are forever blowing bubbles. Dreaming dreams. Scheming schemes. Building castles in the sky. Pretty bubbles fly so high. Nearly reach the sky. Then like our dreams they fade and die.”

They fade and die. In the Bush years some cocky conservatives predicted a “permanent majority” lasting “for years, maybe decades.” The hubris gods had other plans. Then after Obama’s election, one cocky liberal wrote a book, “40 More Years: How the Democrats Will Rule the Next Generation.” Wrong again. Both parties will lose in the final flame-out of the Reaganomics Revolution.

Yes, so many “pretty bubbles” merging. And still, the pundits and press love the bull, arguing that no one bubble is a game-ender. Even after a generation of increasingly bigger, more frequent economic disasters drain our fiscal and monetary resources, raising our debt to unsustainable levels, destroying our trust in democracy and the dollar, it’s now obvious that America’s “pretty bubbles” are making us vulnerable, inviting trouble. Get it? Today any one “pretty bubble” can trigger a flash point, ignite a chain reaction, an economic nuclear bomb exploding the American Dream. Here are America’s most toxic bubbles, warnings of the “coming crash … the one we refuse to hear.” ….

read more on MarketWatch

Reagan Insider: “My GOP Destroyed the U.S. Economy” Part 2: Politicians Rule Economics, Tax-Cuts for Super-Rich, Cheap Money, War Debt, Unfunded Social Security, Dollar Declining … All Setting Up a New Crash, Dead Ahead!
by Paul B Farrell, JD, PhD
| Discuss | Print | 6/4/2011

“My G.O.P. destroyed the U.S. economy.” Yes, that is exactly what David Stockman, President Ronald Reagan’s Director of the Office of Management and Budget wrote in a 2010 New York Times op-ed piece. Not “destroying.” he said the GOP has “destroyed” the U.S. economy, setting up an “American Apocalypse.” And it’s getting worse.

Update: With the 2012 election lineup up for grabs, Stockman may be the GOPs best candidate for President. A hero in American politics, he’s a rare no-BS truth-teller who’s been delivering the same message since his 1986 Triumph of Politics: Why the Reagan Revolution Failed, an expose written after leaving the White House. Better yet, he’s the kind of fighter who could easily go the distance with Obama on the key issues that will dominate the 2012 election: the economy, employment, interest rates, entitlements, war budgets, the devalued dollar, our rapidly collapsing monetary system, another meltdown.

Last fall, Stockman’s hard hitting op-ed was loaded with jabs like: “If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation’s public debt” screams “for austerity and sacrifice,” instead, the GOP insisted “the nation’s wealthiest taxpayers be spared even a three-percentage-point rate increase.” Obama blinked, pulled his punch. Let’s get both in the ring.

His latest attack proves he’s still a powerful fighter. Recently, Reason magazine’s editor-in-chief Nick Gillespie did a long interview with Stockman. The title builds on the book: “The Triumph of Politics Over Economics.” But instead of just looking back at the failure of a self-destructive Reaganomics, an older and wiser Stockman focuses us on the paradigm shift that’s destroying America from within.

Warning: GOP’s self-destructive capitalism is destroying U.S. economy
In this new “Triumph of Politics Over Economics” we see America at a historic crossroads, struggling to redefine itself. Politicians have become the new economists. Politicians their big money backers and lobbyists now rule the American economy like banana republic dictators. Stockman calls this corrupt system the new “crony-capitalism.” The old capitalist economics that made America the world’s greatest superpower no longer exists …. more ….

Complete column: MarketWatch.com

2008 Crash is Not Over. Was Covered Up! More Losses Coming. New Meltdown Dead Ahead. Reaganomics Raging Again. Greenspan, Paulson, Bernanke All Knew, All Lied. Warning, Trillions More Costs for Investors, Taxpayers, Families.
by Paul B Farrell, JD, PhD
| Discuss | Print | 3/27/2011

Yes, we have hard evidence Washington and Wall Street knew the 2008 crash was coming years in advance. Yes, they could have prevented it. But did no’t. And yes, their cover-up cost Americans trillions. Was their Reaganomics ideology so rigid, so blinding, they couldn’t (and still cannot) admit they were wrong? Forcing them to lie to America? Cover up the lies? The evidence is clear.

Today, a harsh lesson from history, facts, and a warning. Listen closely America. It’s already happening again. The collective “Reaganomics Brain” has gone from crash to cover-up to comeback kids to capitalism-for-the-super-rich in three short years. Now with absolute power over America. But the worst is yet to come. The forces behind the 2008 crash are stronger today. Like the villain in a horror flick sequel, the darkside is now hungrier. “Phase Two” is already in full swing as the “Reaganomics Brain” aggressively races to complete unfinished business the 2008 meltdown, and will implode Wall Street banks and the Fed, ending the reign of the dollar as the world’s reserve currency

Recently we reported some bearish predictions for 2011 by two respected market leaders: Ned Davis warns of a “midyear peak” before a new cyclical bear. Jeremy Grantham warns investors to get out before Christmas. Bad news for investors angry at the past, worried about the future. Remember, the Dow’s barely above its 2000 peak of 11,722. Adjusted for inflation, the market has flatlined the past decade.

Get it? Wall Street is a loser. Wall Street lost about 20% of America’s retirement money in the past decade. If you’re a boomer and a betting man, odds are Wall Street will lose another 20% by 2020. America’s boomers don’t have to be rocket scientists to see the workings of the “Reaganomics Brain” here, how it’s self-destructing capitalism, democracy and your retirement. Here’s hard evidence of lies and cover-ups in past and future catastrophes:

March 2004. Fed Chairman Greenspan “cover-up” of coming crash
In a Bloomberg Market’s magazine column last year, “Greenspan Coverup,” Roger Lowenstein, author of The End of Wall Street, wrote that in a newly released transcript of a March 2004 meeting Greenspan “argues against disclosing too much to the public lest the Fed ‘lose control of a process that only we fully understand’.” Yes, a cover-up. Lowenstein, a classy guy, went ballistic: “This statement ranks as a sign of monumental arrogance. It was Greenspan himself who didn’t understand, much less ‘fully understand,’ that the Fed’s lax mortgage regulation and easy monetary policies were setting America up for a disastrous fall.” The new Oscar-winning film, Inside Job, exposes more of the many lies.

My full commentary in MarketWatch 3.8.11

22 Reasons Your Federal, State & Municipal Taxes Must Keep Rising, in 2011, 2012, even 2020 … And Nobody, Not Boehner, McConnell, Palin, the GOP nor TeaParty Will Stop Debt From Growing!
by Paul B Farrell, JD, PhD
| Discuss | Print | 1/1/2011

Social Security and Medicare equal $65 trillion of unfunded debt. Add in the Bush/Cheney/Obama War debt from Iraq and Afghanistan, Paulson’s TARP Plan, the Obama Stimulus, plus add in Bernanke’s estimated $23.7 trillion in secret credits, loans, writeoffs and guarantees to Wall Street’s “too-greedy-to-fail” banks … now add in the costs of the new healthcare reforms and it looks like my early ’09 prediction is unfolding right on schedule.

Subtitled “Tax Bomb Dead Ahead: Former GAO Chief says your taxes will double” is now worth a second look, especially when you consider states and local governments are already desperately adding taxes to make up for lost property tax, sales and income revenues. The New York Times warns: “As Revenue Slump, States Look to Tax Services, From Head to Toe.” If you wonder whether we really are in an economic recovery, take a look at the bigger picture unfolding across America, at the 22 reasons all taxpayers at all levels of government will be impacted for years to come …

Imagine doubling your taxes: Yes, that’s what David Walker, the former U.S. Comptroller General and GAO chief warned on CNN: “Why Your Taxes Could Double: The federal government has spent more money than it takes in at an increasing rate. Total federal debt almost doubled during President George W. Bush’s administration and, as much as we needed some stimulus spending to boost the economy, the nonpartisan Congressional Budget Office now estimates total debt levels could almost double again over the next eight years based on the budget recently outlined by President Obama,” with our “tax bill doubling over time.” Don’t say you weren’t warned!

Debt is killing the American Dream. We’ve mortgaged our future, and now Obama’s adding a new $1.84 trillion federal deficit. That’s four times Bush’s record deficit his last year. Plus deficits over $500 billion annually for the next decade. The president’s gambling, doubling down, betting the farm, going “all in” with a huge bet that could break the bank. Is this America’s “last hand” in high-stakes poker game? More grim tax facts: A few years ago Peter Orszag, Obama’s Budget Director warned: “Balancing the budget would require a 41% cut in spending on Social Security and Medicare, a 47% cut in discretionary spending, or a 17% cut in all non-interest spending.”  

Secretary Geithner gave us an update: “The longer we wait to address the long-term solvency of Medicare and Social Security, the sooner those challenges will be upon us and the harder the options will be.” Those two trust funds already eat up more than a third of the federal budget and are increasing $2 trillion a year. Still, AARP and other lobbyists resist all benefits cuts (that affect Boomers) more than tax increases (paid by younger workers), despite a new study telling us: Medicare surpluses will run out in 2016, Social Security by 2037, both earlier than previously estimated. Together they account for roughly $80-to-$120 trillion in unfunded liabilities, with Medicare 80% of the total … and please note, America’s debt now exceeds the $50 trillion GDP of all economies in the entire world! (More)

“Zombie American Capitalism” vs China’s “Zombie-Eaters” (Death Watch 2020)
by Paul B Farrell, JD, PhD
| Discuss | Print | 11/29/2010

“Zombie Economics: How Dead Ideas Still Walk Among Us,” could easily have been entitled “Zombie Capitalism.” Why? The book is all about undead Reaganomics zombisms like “trickle-down” that nearly destroyed the American economy in 2008. Now that same “Zombie Capitalism” is being resurrected from the dead by the Goldman Conspiracy of Wall Street Banksters and their new partners in the GOP Tea Party of No-No. Yes folks, America’s self-destructive “Zombie Capitalism” has once again returned from the mausoleum of toxic undead ideas.

But this was so predictable. As Naomi Klein, author of Shock Doctrine: The Rise of Disaster Capitalism warned: “Free-market ideology will come roaring back when the bailouts are done, and the massive debts the public is accumulating to bail out the speculators will then become part of a global budget crisis.” Get it? The Zombie Capitalism of Reaganomics couldn’t kill us during the dotcom crash or subprime credit collapse, but now Zombie Wall Street is shooting for the “Third Meltdown of the 21st Century.”

Wait, an even better title would be, “Zombie America.” Why? America is not only enjoying Halloween, the great celebration of the undead, but in our election madness we also created a historic “trick-or-treat,” with invisible monster billionaire backers, ghoulish politicians, blood-sucking vampires emerging from graves in foreign sovereign nations, to poison our souls from within.

But the scariest monster this Halloween is the “China Zombie-Eaters” who are devouring the dying jobs of Zombie Americans. China’s “Zombie-Eaters” are infinitely more dangerous than all the spooky foreign nations funneling megabucks into the Chamber of Commerce’s Supreme Court-sanctioned lobby. Here are 8 demonic reasons why China’s aggressive “economic warfare” is also a secret long-term defensive military strategy:

One: Zombie-eating China has a long-range plan to conquer America
Listen closely, because the nuttiest theories are so often revealed later as hidden truths. Remember Delaware Tea Party Senate candidate “I’m no witch” O’Donnell. You may question her credibility about secret classified documents revealing that China has a “carefully thought out and strategic plan to take over America.” But still, the facts are that the China “Zombie-Eaters” are destroying and devouring millions of American jobs.

We also know China is stealing U.S. state secrets, stealing proprietary patents, stealing our technology. We know China is hacking away, aggressively engaged in a not-so-secret cyber-war against America. We also know China has forged alliances with America’s enemies, including Iran, Venezuela and North Korea. So while you’ll chuckle at a non-witch’s “classified” plans, the fact is, China “Zombie-Eaters” are our worst nightmare, aggressively engaged in wars against America on multiple fronts.

As Ross Terrill, a China expert at Harvard, put it in the Wilson Quarterly: “The Chinese Communists are very aware of this contest with the United States, though Americans (beyond the Pentagon) are not.” Yes, Zombie America is clueless about the threat from the China “Zombie Eaters.” And Terrill warns, our lack of awareness will destroy us: “By being a shrinking violet, the United States would simply hand over the future to China.” (More)

10 Reasons President Obama is Failing America: Piling Trillions of Debt on Future Generations, on Top of Bush’s Trillions. Next, Obama’s Final Surrender of His Principles: Capitulation to GOP on Bush Tax-Cuts for Billionaires
by Paul B Farrell, JD, PhD
| Discuss | Print | 11/16/2010

Back in January one of my MarketWatch columns was an “open letter” to the president: “10 reasons Obama is failing 95 million investors: Why his ‘Fat Cat Bankers’ are destroying both capitalism and democracy.” The response was strong. Today, given all the financial reforms now being secretly contested in Washington, especially the Consumer Financial Protection Agency that the banks are spending millions to kill, those “10 reasons” seem far more important. Read them closely, not as some short-term critique, but for the long-term historical consequences, not their impact on your retirement but the impact on future generations of Americans …

Mr. President: We know that the future—seen through a broader historical lens—will reveal a natural cycle with you cast in the predictable scene of a Shakespearean-style plot driven by fate, the same dramatic destiny of all great nations and civilizations. We know a “Happy Conspiracy” of Wall Street, Corporate CEOs and the Forbes 400 controls Washington, limiting and manipulating you. Shakespeare says: “All the world’s a stage, and all the men and women merely players. They have their exits and their entrances.” As this past year unfolded it became painfully obvious you are indeed playing a role in a historic drama, along with other leaders in a staged, life-cycle, endgame that includes Presidents Reagan, Clinton and the Bushes, Fed Chairmen Greenspan and Bernanke, and Wall Street’s bosses Paulson and his “Fat Cat” banker buddies. The final scene of this historic Shakespearean drama is playing out this very moment, with 10 improvisational plot points driving your character’s role:

1.  Failing to grasp John Adams’ warning: All democracies “commit suicide”
“Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide:” Yes John Adams, a great American president made that famous prediction at the beginning of our great nation. And yet, paradoxically, when a democracy commits suicide, it also kills off the very capitalism that made it powerful, the economic system Adam Smith identified the same year our Declaration of Independence was signed. Today we are neither independent nor free, King George has been replaced by a far more powerful moneyed conspiracy that you sold out to last year.

2.  Failing to sense the psychological impact of being an aging democracy
Yes, our time is up says Scottish historian Alexander Tytler, recently quoted by economist Marc Faber: “The average life span of the world’s greatest civilizations has been 200 years.” Then “once a society becomes successful it becomes arrogant, righteous, overconfident, corrupt, and decadent … overspends … costly wars … wealth inequity and social tensions increase; and society enters a secular decline.” We’re on ‘suicide watch,’ acting out the final scenes President Adams predicted for democracy, as Wall Street murders capitalism. (More)

20 “Triggers” That Can Set Off the “Global Debt Time-Bomb,” Trigger Massive Class Wars, Create a New “Great Depression” … and Wipe Out Your 401(k)!
by Paul B Farrell, JD, PhD
| Discuss | Print | 11/15/2010

Retire? You can fuggetaboutit if the new “Global Debt Time-Bomb” is detonated by any one of 20 “Made-in-America” trigger-mechanisms. Yes, 20. And yes, any one can destroy your retirement, because all 20 are inexorably linked, a house-of-cards, a circular firing squad destined to self-destruct, triggering the third great Wall Street meltdown of the 21st Century, igniting the “Great Depression II” that Bush, Bernanke,Paulson and now Obama have simply delayed with their endless knee-jerk, debt-laden wars, stimulus bonanzas, and bailouts.

Wow, what an epic Hollywood blockbuster this will make: You know the drama, can’t miss the warnings. The financial press is flooding us with plot lines … a Forbes cover story focuses on a “Global Debt Bomb: How It Could Wreck Your Life” … Last year leaders at the World Economic Forum on Swiss Mt. Davos fear another global meltdown will trigger mass rebellions … The Economist calls the plot a “Global Asset Bubble,” with cheap money fast driving up asset prices, a new trigger for the ticking debt time-bomb. Plus, Bloomberg-BusinessWeek is adding jet fuel to the ticking time-bomb in: “After the Stimulus Binge, a Debt Hangover: Trillions of dollars have been spent keeping the global economy afloat. But now fears about the Great Recession are giving way to worries about something else: The Great Reckoning” when massive debts come due. Then the debt bomb explodes “and the results won’t be pretty for investors or elected officials.”

You’ll find the trigger mechanism deep in your brain, your irrational behavior and your DNA. You’ll also find it in historical cycles: For example, in This Time It’s Different: Eight Centuries of Financial Folly by economists Reinhart and Rogoff we discover: The “90% ratio of government debt to GDP is a tipping point in economic growth.” For 800 years “you increase it over and beyond a high threshold, and boom!” Well guess what? “The U.S. government-debt-to-GDP ratio is 84%.” Soon, Ka-Booom! Depression. Kiss your retirement goodbye.

Who knows? Forbes? Bloomberg/BusinessWeek? The Economist? Davos-World Economic Forum? True, they’re all looking at the same plotline for a Hollywood blockbuster about the “Global Debt Time-Bomb.” But the financial press navigates in a fog. There’s not just one, but many triggers, all linked in a lethal network, we’ve reported on it for years. Any one could easily trip this debt-bomb, set off a chain reaction of unintended consequences, ignite the 21st Century’s third meltdown, spread the coming “Great Depression II,” the new Black Plague. You tell us: What triggers this firestorm?

Poll: 20 economic “WMDs” triggering ticking “Global Debt Time-Bomb”

1.   Federal Budget Deficit Bomb
The Bush/Cheney wars pushed America deep into a debt hole. Federal debt limit was just raised almost 100% with Obama’s 2010 budget, to $14.3 trillion vs $7.8 trillion in 2005. The Congressional Budget Office predicts future deficits around 4% through 2020. Get it? America’s debt at “84% of GDP” will soon pass that toxic 90% trigger point.

2.   U.S. Foreign Trade Bomb
Monthly deficits actually dropped from $50 billion per month to roughly $35 billion. But the total continues climbing as $400 billion is added each year. Foreigners now own $2.5 trillion of America, with China holding over $1.3 trillion in Treasury debt.

3.   Weakening US Dollar as Foreign Reserve Currency
Fear China and other currencies will replace dollar as main foreign reserves. The dollar’s fallen: From the $120 range at the Clinton-to-Bush handoff to a $70-$90 range.

4.  “Cheap Money” Bomb: Credit Ratings Down, Rates Up
Economists at S&P, Fitch and Moody’s were totally co-conspirators of Fat Cat Bankers, misleading investors before meltdown: Soon, debt up, ratings down, interest rates soar.

5.  Global Real Estate Bomb
Dubai Tower, new “world’s tallest building” is empty. BusinessWeek warns that China’s housing collapse could be worse than America’s. Plus the U.S. commercial real estate bubble is now $1.7 trillion, a “ticking time-bomb” bloating 25% of bank balance sheets.

6.   Peak Oil & the Population Bomb
China and India each need 500 new cities. UN estimates world population exploding 50% from 6-to-9 billion by 2050: Three billion more humans demanding more automobiles, exhausting more resources to feed their version of the gas-guzzling “America Dream.

7.  Social Security Bomb
We have no choice, eventually we must either cut benefits or raise taxes. Politicians hate both, so they’ll do nothing. Delays worsen solutions. Without action, by 2035 Social Security and Medicare benefits will eat up the entire federal budget other than defense.

8.  Medicare: a Nuclear Bomb
Going broke faster than Social Security. Prescription drug benefit added an unfunded $8.1 trillion. In 5 years estimates rose from about $35 trillion to over $60 trillion now.

9.  Healthcare Insurance Bomb
Burden increasingly shifted to employees. Costs rising faster than inflation. Recent Obamacare plan would have cost $90 billion annually, paid to Big Pharma and insurers.

10.  State & Local Gov’t Budget Bombs
Deficits of $110 billion in 2010, $178 billion in 2011on top of more that $450 billion in underfunded state and municipal employee pension funds.

11.  Underfunded Corporate Pensions Bomb
From $60 billion surplus in 2007 to $409 billion deficit in 2009. And a whopping 92% of the pension plans of companies are now under-funded. Defaults guaranteed by taxpayers.

12.  Consumer Debt Bomb
Americans are still living beyond our means. Even with a downturn, consumer debt rose from about $2.3 to $2.5 trillion. Fat Cat Bankers love it, yes, love making matters worse by gouging cardholders and mortgagees, blocking help in foreclosures and bankruptcies.

13.  Personal Savings Bomb  
Before 2008 meltdown savings rate dropped from about 10% in the early 1980s to below zero, now increasing, slowing retail recovery. Today, government’s the big “unsaver.”

14.  War and Military Defense Deficits
Costs of Iraq and Afghanistan wars costs $200+ billion annually, $3 trillion minimum, with massive long-term costs for veteran medical care, equipment renewal, recruitment.

15.  Homeland Insecurity Deficits
Security at airports, seaports, borders, vulnerable chemical plants alls increase budgets.

16.  Fed/Treasury Bailout Bombs
Tax credits, loans, cash and purchase of toxic assets from Wall Street banks estimated at $23.7 trillion as new debt was shifted from too-big-to-fail “Fat-Cat” banks to taxpayers.

17. Insatiable Washington Lobbyists Bombs
Paulson, Goldman, Geithner, Morgan and Wall Street banks, through their lobbyists and former employees working inside now have absolute power over government spending. Democracy and voters are now irrelevant in America’s new “corporate-socialism.”

18.  Shadow Banking: The Derivatives “WMD” Bomb
Wall Street wants no regulation of this $670 trillion, hi-risk, out-of-control, gambling casino that’s highly leveraged versus the $50 trillion total GDP of all nations. We forget that derivatives akmost destroyed global economies in 2008-09, finally will by 2012.

19.  Dysfunctional Two-Party Political Bomb
Polarized partisanship increasing: Every day both parties show zero interest cooperating for the public good. Instead they fight viciously, resisting everything and anything proposed by opponents. Only goal: Score political points; make the other side look bad.

20.  The Coming “Populous Rebellion” Bombs
Nobody trusts anyone in authority. For good reason. So immediate gratification, short-term betting, and a lack of long term perspective wins for individual investors, consumers and taxpayers as well as Washington, Wall Street and Corporate America CEOs. Today: “Doing what’s right for the common good and country” is just empty political rhetoric.

Forbes. The Economist. Davos-World Economic Forum. Bloomberg-BusinessWeek. All one voice, one loud, lonely chorus echoing that famous Beatles tune: “Head in a cloud … The fool on the hill, sees the sun going down … a thousand voices talking perfectly loud. But nobody ever hears him, or the sound he appears to make … And the eyes in his head, see the world spinning ‘round …ooh, round and round and round.”

A decade ago, on March 20, 2000 as Nasdaq and the DJIA peaked I wrote a column: “Next crash? Sorry, you won’t hear it coming.” But nobody wanted the party to end. What followed? A 30-month recession and an $8 trillion market cap loss. We reported on warnings again many times starting in 2004. Till Wall Street triggered another meltdown in 2007. You know what happened. Same today. Nobody listens. Lessons not learned. Warning: A third great meltdown is coming. But nobody listens to the “fools on the hill.”

Historians and behavioral economists tell us most investors are blind optimists. Investors cannot see bubbles from inside their bubble. Nor “Fat Cat Bankers” from inside their mega-bonus-bubble. Nor politicians from inside the “beltway bubble.” Why? The optimist’s brain filters out “bad” news. They “know” their dreams of prosperity will come true. Then, when they finally do see that the proverbial “light at the end of the tunnel is an oncoming train,” it’s always too late.

I will say it again, gently: A new meltdown coming. The “Great Depression II” is coming, soon. And yet, I know your mental filters are working overtime, blocking warnings of a bomb. I can even hear you calling me “the fool on the hill who sees the sun going down, the world spinning round” … sees us kissing our retirement goodbye.

Reagan Insider: “GOP Destroyed U.S. Economy.” Warning, McConnell, Boehner & GOP Will Now Push America into a Double-Dip Recession for 2 More Years, to Make Obama Look Bad & Elect a New Reaganomics President in 2012
by Paul B Farrell, JD, PhD
| Discuss | Print | 11/7/2010

“My G.O.P. destroyed the U.S. economy.” Yes, that’s exactly what David Stockman, President Ronald Reagan’s Director of the Office of Management and Budget wrote in a NY Times op-ed piece, “Four Deformations of the Apocalypse.” Not “destroying.” This key man behind Reaganomics says the GOP has already “destroyed” the U.S. economy, setting up an “American Apocalypse!” And that was months before the midterm election. Now it’s going to get much uglier because the GOP can’t afford to let the economy improve. Get it? For two years, the GOP must push the economy deep into a recession … to make Obama look bad for the 2012 elections!

Stockman also condemned the Dems’ Keynesian policies. But what this indictment by a party insider—someone so close to the development of the Reaganomics ideology—says about America, helps all of us better understand how America’s toxic partisan-politics “holy war” is destroying not just the economy and capitalism, but the “America Dream,” and unless this “war” stops soon, both parties will succeed in their collective death wish.

But why focus on Stockman’s message? It’s already lost in the 24/7 news cycle. Why? We need some introspection. Ask yourself: How did the great nation of America lose its moral compass and drift so far off course, to where our very survival is threatened?

We’ve arrived at a historic turning point as a nation that no longer needs outside enemies to destroy us, we are committing suicide. Democracy. Capitalism. The “American Dream.” All dying. Why? Because of the economic decisions of the GOP the past forty years, says this leading Reagan Republican. Please listen with an open mind, no matter your party affiliation: This makes for a powerful history lesson, because it exposes how both parties are responsible for “destroying the U.S. economy.” Listen closely:

Reagan Republican: the GOP should file for bankruptcy
Stockman rushes into the ring swinging like a boxer: “If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation’s public debt … will soon reach $18 trillion.” It screams “out for austerity and sacrifice.” But instead, the GOP insists “that the nation’s wealthiest taxpayers be spared even a three-percentage-point rate increase.”

In the past forty years Republican ideology has gone from solid principles to hype and slogans. Stockman says: “Republicans used to believe that prosperity depended upon the regular balancing of accounts—in government, in international trade, on the ledgers of central banks and in the financial affairs of private households and businesses, too.” No more. Today there’s a “new catechism” that’s “little more than money printing and deficit finance, vulgar Keynesianism robed in the ideological vestments of the prosperous classes” making a mockery of GOP ideals. Worse, it has resulted in “serial financial bubbles and Wall Street depredations that have crippled our economy.” Yes, GOP ideals backfired, crippling our economy. Stockman’s indictment warns that the Republican party’s “new policy doctrines have caused four great deformations of the national economy, and modern Republicans have turned a blind eye to each one:” (More)

Barack ‘Yogi Berra’ Obama, Points to The Fence! Bases Loaded, Bottom of 9th, 2 Out, 3 Runs Behind, the 3-2 pitch … Swings, Hits … Going, Going, Gone!
by Paul B Farrell, JD, PhD
| Discuss | Print | 9/4/2010

Yes, they’re already writing his obituary. And the guy’s still got over two years on his contract. So let’s have some fun. If the opposing team’s right, at this rate by 2012 Obama will forever demolish the Great American Empire as the world power, worse than his predecessor did. Want investment advice? Sorry folks, no strategy can save you from a fate worse than hell. How bad did the pundits say it was last year? Real bad:

From the left: Even Frank Rich’s column in the New York Times (who’s 2006 The Greatest Story Ever Sold tore apart Bush) warns its “Obama’s Make or Break Summer,” anxiously worrying that Obama is “tilting at windmills” rather than confronting the big boys, doing “battle with fierce and unrelenting adversaries, starting with the banking lobby.” Rich worries Obama just “punted,” pushing failure not far down the road. Maybe. But we all know that Wall Street Trojan Horses on Obama’s team (Geithner, Summers, Bernanke and the ghost of Hank Paulson) are making sure Wall Street gets what critics call putting “lipstick on a pig,” not the plastic surgery it really needs.

And from the right: They’ve already written his obituary. And the toe-tag says he’s a loser. Seriously, I did a double take reading Kevin Baker’s eye-grabber in Harper’s, “Barack Hoover Obama.” Barry as Hoover? What a twist. Baker’s grand conclusion says that “much like Herbert Hoover, Barack Obama is a man attempting to realize a stirring new vision of his society without cutting himself free from the dogmas of the past, without accepting the inevitable conflict. Like Hoover, his is bound to fail.” So apparently in six short months Obama’s already done what it took Bush and Reaganomics 27 years to do.

Fascinating. So I googled deeper, discovering that the same “Hoover” indictment was leveled by Obama’s critics even before the election, and yes, even before the nomination. On the other hand, one fan did balance the Hoover handle with “Barack Delano Obama.” And we all remember many of the nastier names-calling that compared him with certain WWII leaders, casting him as a “socialist” and even “communist.” That’s politics. In each case, however, the titles of the articles told us more about the writer and where they sat in the political spectrum: Extreme right field, center field bleachers, or in the extreme left field. Ah yes, baseball analogy was emerging.

So after more googling and noodling, a list of possible names for our president began flashing across my brain’s radar scope, names for lefties, right wingnuts, center independents, late-night comedians, and … suddenly, baseball fans. Seriously, so let’s sidestep the darkside, get in the right mood, what name would you give the team captain?

1. Barack Hoover Obama (a conservative attack)
2. Barack Delano Obama (the liberal’s comeback)
3. Barack Clinton Obama (many see him more like Bill)
4. Barack Lincoln Obama (of course, his favorite hero)
5. Barack “Shoeless Joe” Obama (if you really don’t like him or Chicago)
6. Barack “Barry Bonds” Obama (you don’t like him, Frisco or the Giants)
7. Barack “A-Rod” Obama (if you don’t like New York and the Yankees)
8. Barack “Jackie Robinson” Obama (if you like him and the Dodgers )
9. Barack “Babe Ruth” Obama (because he can point and hit home runs)
10. Barack “Yogi Berra” Obama (you like him ‘cause he makes you laugh!)

So what name did you pick? I picked “Yogi Berra” because my brain homed in on that wonderful Yankee catcher who could make everyone laugh even today in an America dominated by mean-spirited contentious ideological rhetoric. (More)

10 Reasons Obama’s Failing 95 Million Investors (Plus America’s Consumers, Taxpayers, Savers, Boomers, Voters, Folks on Social Security & Many Others)!
by Paul B Farrell, JD, PhD
| Discuss | Print | 5/11/2010

An open letter: Dear President Obama, you are failing us. Many now question voting for you. A year ago, millions of Americans – investors, taxpayers, consumers, voters – came together uplifted by the “audacity of hope,” inspired by a vision of “Change We Can Believe In … bold and specific ideas about how to fix our ailing economy and strengthen the middle class, make health care affordable for all, achieve energy independence, and keep America safe in a dangerous world.” “Yes, we can” was the rallying cheer for “The New America.” You were “The One,” the game-changer after the Bush-Cheney fiasco. What happened? Today we just don’t see, or expect to see, any real “change we can believe in.” America is more polarized than under Bush’s GOP, dysfunctional as both parties tragically undermine our great nation.

There are many reasons future historians may rate your presidency “average,” some even a “failure,” at least based on the gap between the promise a year ago and the reality today, certainly for investors. But we also know that the future—seen through a broader historical lens—will reveal a natural cycle with you cast in the predictable final scene of a Shakespearean-style plot driven by fate, the same dramatic destiny of all great nations and civilizations. We know a dark conspiracy of Wall Street, Corporate CEOs and the Forbes 400 controls Washington, limiting and manipulating you. So we know it’s not all your fault—for you are playing your role well in America’s epic historical drama.

As Shakespeare put it: “All the world’s a stage, and all the men and women merely players. They have their exits and their entrances.” As this past year unfolded it became painfully obvious you are indeed playing a role in a historic drama, along with other leaders in a staged, life-cycle, endgame conspiracy that includes Presidents Reagan, Clinton and Bush, Fed Chairmen Greenspan and Bernanke, and Wall Street’s bosses Paulson and your “Fat Cat Banker” buddies. The final scene of this Shakespearean drama is playing out this very moment, with 10 improvisational plot points driving your character’s role: (More)