Smashing Capitalism (Mao-Stalin bunghole lovechild)

[user437490845hjgd]

Barbara Ehrenreich (known to college children world-wide as the author of Nickel and Dimed)

http://www.thenation.com/doc/20070827/ehrenreich

Somewhere in the Hamptons a high-roller is cursing his cleaning lady and shaking his fists at the lawn guys. The American poor, who are usually tactful enough to remain invisible to the multi-millionaire class, suddenly leaped onto the scene and started smashing the global financial system. Incredibly enough, this may be the first case in history in which the downtrodden manage to bring down an unfair economic system without going to the trouble of a revolution.

First they stopped paying their mortgages, a move in which they were joined by many financially stretched middle class folks, though the poor definitely led the way. All right, these were trick mortgages, many of them designed to be unaffordable within two years of signing the contract. There were "NINJA" loans, for example, awarded to people with "no income, no job or assets." Conservative columnist Niall Fergusen laments the low levels of "economic literacy" that allowed people to be exploited by sub-prime loans. Why didn't these low-income folks get lawyers to go over the fine print? And don't they have personal financial advisors anyway?

Then, in a diabolically clever move, the poor--a category which now roughly coincides with the working class--stopped shopping. Both Wal-Mart and Home Depot announced disappointing second quarter performances, plunging the market into another Arctic-style meltdown. H. Lee Scott, CEO of the low-wage Wal-Mart empire, admitted with admirable sensitivity, that "it's no secret that many customers are running out of money at the end of the month."

I wish I could report that the current attack on capitalism represents a deliberate strategy on the part of the poor, that there have been secret meetings in break rooms and parking lots around the country, where cell leaders issued instructions like, "You, Vinny--don't make any mortgage payment this month. And Caroline, forget that back-to-school shopping, OK?" But all the evidence suggests that the current crisis is something the high-rollers brought down on themselves.

When, for example, the largest private employer in America, which is Wal-Mart, starts experiencing a shortage of customers, it needs to take a long, hard look in the mirror. About a century ago, Henry Ford realized that his company would only prosper if his own workers earned enough to buy Fords. Wal-Mart, on the other hand, never seemed to figure out that its cruelly low wages would eventually curtail its own growth, even at the company's famously discounted prices.

The sad truth is that people earning Wal-Mart-level wages tend to favor the fashions available at the Salvation Army. Nor do they have much use for Wal-Mart's other departments, such as Electronics, Lawn and Garden, and Pharmacy.

It gets worse though. While with one hand the high-rollers, H. Lee Scott among them, squeezed the American worker's wages, the other hand was reaching out with the tempting offer of credit. In fact, easy credit became the American substitute for decent wages. Once you worked for your money, but now you were supposed to pay for it. Once you could count on earning enough to save for a home. Now you'll never earn that much, but, as the lenders were saying--heh, heh--do we have a mortgage for you!

Pay day loans, rent-to-buy furniture and exorbitant credit card interest rates for the poor were just the beginning. In its May 21st cover story on " The Poverty Business," Business Week documented the stampede, in just the last few years, to lend money to the people who could least afford to pay the interest: Buy your dream home! Refinance your house! Take on a car loan even if your credit rating sucks! Financiamos a Todos! Somehow, no one bothered to figure out where the poor were going to get the money to pay for all the money they were being offered.

Personally, I prefer my revolutions to be a little more pro-active. There should be marches and rallies, banners and sit-ins, possibly a nice color theme like red or orange. Certainly, there should be a vision of what you intend to replace the bad old system with--European-style social democracy, Latin American-style socialism, or how about just American capitalism with some regulation thrown in?

Global capitalism will survive the current credit crisis; already, the government has rushed in to soothe the feverish markets. But in the long term, a system that depends on extracting every last cent from the poor cannot hope for a healthy prognosis. Who would have thought that foreclosures in Stockton and Cleveland would roil the markets of London and Shanghai? The poor have risen up and spoken; only it sounds less like a shout of protest than a low, strangled, cry of pain.

Originally found at:
http://www.freerepublic.com/focus/ne.../posts?page=12

[Beatitude]

I remember that book.

[Beatitude]

Hey I'm working at a Hampton over the summer.

Three days ago, this guy called asking for directions, and I accidentally told him that we are off of Exit 273 instead of 173. Anyway, by the time the guy actually got turned around to our hotel I was already off my shift. The Night shift guy, George, was called about it later and when the guy got to the hotel he said he was gonna get me and George fired. He was yelling at George and at the lady the next day and Ashley (the day shift lady) said he looked like he was going to pounce over the counter. Anyway, I had the next day off so I thought I dodged the bullet from having to meet the guy myself.

Two days ago, when I was glancing at the incoming arrivals on the computer, I saw that he was coming back! I'm working Night shift tonight and he's gonna be there! What should I do? Kevlar? Secret pop-out dagger for quick defense?

[Beatitude]

If I'm not posting in three days I'm dead. En Taro Adun.

[okasha]

Originally Posted by Beatitude

Hey I'm working at a Hampton over the summer.

Three days ago, this guy called asking for directions, and I accidentally told him that we are off of Exit 273 instead of 173. Anyway, by the time the guy actually got turned around to our hotel I was already off my shift. The Night shift guy, George, was called about it later and when the guy got to the hotel he said he was gonna get me and George fired. He was yelling at George and at the lady the next day and Ashley (the day shift lady) said he looked like he was going to pounce over the counter. Anyway, I had the next day off so I thought I dodged the bullet from having to meet the guy myself.

Two days ago, when I was glancing at the incoming arrivals on the computer, I saw that he was coming back! I'm working Night shift tonight and he's gonna be there! What should I do? Kevlar? Secret pop-out dagger for quick defense?

Tell him you made a mistake and that you apologize. People apreciate that type of thing, instead of a bunch of workers putting the blame on the next guy.


My 2 cents.

[frankenstein]

To the people who've had half a clue, we saw the writing on the wall for about 3 years now. In many areas housing values have often doubled or tripled in the last 5 years. Unless your salary does the same, you're going to be screwed in the long run. People thinking they could buy a huge house on a meager income have no one to blame but themselves. Reality hasn't suddenly changed. There is only so much you can afford with a certain income.

Sure the banks have a hand in pushing these crappy mortgages onto people, but it still boils down to personal responsibility and common sense. If they signed on the dotted line for a $300,000 debt without looking into any details or using common sense to figure it out then they deserve to be forclosed on.

Most of these people should take this housing market meltdown as an expensive lesson in the school of hard knocks. Learn the lesson and don't be such a fool with large sums of money. Middle class or poor, you're an idiot if you took out an adjustable mortgage and suddenly are crying about the mortgage payment. A huge proportion of the trouble is with people thinking they could forever keep flipping houses. The poor aren't even the ones taking the biggest hit. This find the author of that article very FOS.
BTW, I rent. I could buy a house but haven't.

[Beatitude]

Originally Posted by okasha

Tell him you made a mistake and that you apologize. People apreciate that type of thing, instead of a bunch of workers putting the blame on the next guy.


My 2 cents.

!!!
I'm dead.

[user437490845hjgd]

Originally Posted by Beatitude

Hey I'm working at a Hampton over the summer.

Three days ago, this guy called asking for directions, and I accidentally told him that we are off of Exit 273 instead of 173. Anyway, by the time the guy actually got turned around to our hotel I was already off my shift. The Night shift guy, George, was called about it later and when the guy got to the hotel he said he was gonna get me and George fired. He was yelling at George and at the lady the next day and Ashley (the day shift lady) said he looked like he was going to pounce over the counter. Anyway, I had the next day off so I thought I dodged the bullet from having to meet the guy myself.

Two days ago, when I was glancing at the incoming arrivals on the computer, I saw that he was coming back! I'm working Night shift tonight and he's gonna be there! What should I do? Kevlar? Secret pop-out dagger for quick defense?

$50 dinner voucher for the restaurant + sincere apology?

[okasha]

Originally Posted by Beatitude

!!!
I'm dead.

It's not a big deal.

I've worked at a shoe shop before, I once sold a customer a size 42 pair of shoes, except when he got home, he noticed one was size 43 and one was size 42. He came back yelling and angry telling us it was a long drive home and back, I calmly explained to him that I made a mistake and was sorry, and I would be happy to give him the proper size, told him everyone makes mistakes, he kind of cooled off, and we fixed his problem.


Customers actually apreciate this type of honesty, even if it takes them a while to cool off. Believe me.

[frankenstein]

Originally Posted by okasha

It's not a big deal.

I've worked at a shoe shop before, I once sold a customer a size 42 pair of shoes, except when he got home, he noticed one was size 43 and one was size 42. He came back yelling and angry telling us it was a long drive home and back, I calmly explained to him that I made a mistake and was sorry, and I would be happy to give him the proper size, told him everyone makes mistakes, he kind of cooled off, and we fixed his problem.


Customers actually apreciate this type of honesty, even if it takes them a while to cool off. Believe me.

why the hell are you guys having this discussion here??? off topic to the extreme!!!! email or PM each other.

[okasha]

Originally Posted by frankenstein

why the hell are you guys having this discussion here??? off topic to the extreme!!!! email or PM each other.

lol word. My bad.

[Beatitude]

Originally Posted by okasha

It's not a big deal.

I've worked at a shoe shop before, I once sold a customer a size 42 pair of shoes, except when he got home, he noticed one was size 43 and one was size 42. He came back yelling and angry telling us it was a long drive home and back, I calmly explained to him that I made a mistake and was sorry, and I would be happy to give him the proper size, told him everyone makes mistakes, he kind of cooled off, and we fixed his problem.


Customers actually apreciate this type of honesty, even if it takes them a while to cool off. Believe me.

lol I guess.

The real reason I'm so nervous about it is because
1) when I read Georges log notes about it, the guys sounded like a complete ape, so if was that mean to some guy that didn't' even give him the wrong directions, who knows how he'll act with me.
2) He got a free room so I don't feel like getting barked at by my greedy manager (and yes, I can say with 100% confidence that my manager is greedy)

[Gadsden]

Originally Posted by Beatitude

2) He got a free room so I don't feel like getting barked at by my greedy manager (and yes, I can say with 100% confidence that my manager is greedy)

if we were in a socialist system he wouldn't be greedy. he'd care about your well being and you'd only have to work 20 hours a week.

[user437490845hjgd]

Originally Posted by frankenstein

Most of these people should take this housing market meltdown as an expensive lesson in the school of hard knocks. Learn the lesson and don't be such a fool with large sums of money. Middle class or poor, you're an idiot if you took out an adjustable mortgage and suddenly are crying about the mortgage payment. A huge proportion of the trouble is with people thinking they could forever keep flipping houses. The poor aren't even the ones taking the biggest hit. This find the author of that article very FOS.
BTW, I rent. I could buy a house but haven't.

The taxpayer is the one who is going to get screwed. The fedgov is mulling a broad bailout - relieve the dead-beats of their debts, and reward the lenders for taking retarded risks. I'd have no problem with the sub-prime meltdown if the government just stayed out - it is simply people who took dumb risks getting their just desserts (most of them being the lenders). Some people who hate the very concept of liberty would prefer that such loans did not exist at all, that the option was not available (despite, in some cases, such an option being advantageous to both parties).

And yeah, when I moved to this city 4 years ago, I had no idea how long I would stay (PhD vs MSc - 4.5 vs 2 years). The housing market wasn't that hot at the time, and I was leaning on only getting an MSc, so I decided to rent. After 4 years, I have paid almost $40k in rent, and I am kicking myself for not buying a condo. The one I was looking at, and had the down payment ready for (barely - it would have left me with no savings or other assets), was going for $175k, and is now worth $290k.

[Beatitude]

Originally Posted by Schadenfreude

if we were in a socialist system he wouldn't be greedy. he'd care about your well being and you'd only have to work 20 hours a week.

See frankenstein, me and Okaska were having a conversation that was perfectly related to the topic.

[EDC]

Originally Posted by frankenstein

To the people who've had half a clue, we saw the writing on the wall for about 3 years now. In many areas housing values have often doubled or tripled in the last 5 years. Unless your salary does the same, you're going to be screwed in the long run. People thinking they could buy a huge house on a meager income have no one to blame but themselves. Reality hasn't suddenly changed. There is only so much you can afford with a certain income.

Sure the banks have a hand in pushing these crappy mortgages onto people, but it still boils down to personal responsibility and common sense. If they signed on the dotted line for a $300,000 debt without looking into any details or using common sense to figure it out then they deserve to be forclosed on.

Most of these people should take this housing market meltdown as an expensive lesson in the school of hard knocks. Learn the lesson and don't be such a fool with large sums of money. Middle class or poor, you're an idiot if you took out an adjustable mortgage and suddenly are crying about the mortgage payment. A huge proportion of the trouble is with people thinking they could forever keep flipping houses. The poor aren't even the ones taking the biggest hit. This find the author of that article very FOS.
BTW, I rent. I could buy a house but haven't.

A flaw with capitalism is that is assumes people are intelligent.

Anyway, I'm looking forward to buying a house in 7-10 years. The boomers are going to start selling (or dying) and the market will be flooded.