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
| 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.” ….

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