Adonis Diaries

Archive for October 24th, 2010

The economy did not restart.  The effective rate of unemployed citizens is increasing and converging to the dangerous critical mark of 20%.  That means 12% of the lower middle class citizens are jobless.  The Real Estates bubble is still infected.  Bursting the abscess of property ownership is not for any time soon for good reasons:  most foreclosures are illegal.  The documents of property ownership, amassed in the last three decades by banks and financial institutions, do not exist or are not available.

Paul Krugman, Nobel of economics for 2008, explains. Property rights are badly defined since nobody possesses  adequate documents for ownership.  In most cases, proper documents do not exist:  many loans have been extended by shady financial organizations intent on “showing numbers”.  The mortgages were sold to “funds” ad hoc that dismantled the loans into financial products and supported by mortgage borrowing.

The laws demand that these “funds” obtain the titles of mortgages detailing the obligations of the owners.  These legal formalities were considered to be useless and thus, were neglected by the financial institutions.  Consequently, most current foreclosures are illegal.  Facing this judicial nightmare, the courts are currently relying on sworn testimony of banks with written declarations signed by “robo-signers” or employees having no idea what they are signing on, simply because supervisors ordered them to sign.

The code order from the government to the justice system is: “If a bank declares to own a property then, you have to take their words for granted.”  The problem is that the “funds” cannot produce proper documents of ownership.  The mandatory parties (the financial institutions saved by the government after the crisis) can be sued by investors who bought the titles to ownership; these titles have fractions of their nominal values.

In my previous three articles I discussed reforms for this liberal capitalist democracy.  In this post I want to extend a reasonable way out for the bursting of the Real Estates bubble fiasco that is dooming the system to another financial crisis soon. Since the government has the legitimacy of creating the proper rights for ownership I suggest this proposal.  How about all properties “owned” by banks and financial institutions be considered as rented by the government for a short duration until laws of ownership are revised and proper documents delineated to be needed for property titles like the good old times?

It is advisable that reformed election laws that adequately represent the lower middle class and women be instituted to discussing property laws. If reforms are not to pass “peacefully and democratically”, at least, the next financial crisis will be postponed as the government is renting properties that lack legal documents for titles. People can still purchase these rented properties and State governments can extend the lease to 30 years.

The “Old Money” of the 1% oligarchy, capturing 30% of the nation’s wealth in the capitalist liberal democracy of the USA, knew of the incoming latest financial crash:  their immediate code order after the crisis was “Regaining confidence in our capitalist brand system”.   The code order meant “The common people must have lost hope that our political, social, and economic structure can continue to work as usual.  We must find a tactical scheme that extends hope that “change is very possible in our one century old-established system”.  The people must be worked upon to be re-convinced that our system is the only alternative to producing wealth; that the trickle down policy of the rich reaping the profit first before the scraps are re-distributed is still the most valid structure to contributing to a stable economy.”

Since economic reforms are out of the question and that restarting the economy any time soon is not feasible then,  a quick and dirty smoke screen effect scheme was to be generated.  The oligarchy, aided by the unethical technocrats, devised a diabolic believable smoke screen: “Let us elect a charismatic “Black Citizen” for President of the Republic. At least we will have demonstrated that our liberal democracy can absorb social change”  This scheme hides the untold purpose: The capitalist superstructure behind this ideological liberal democracy will resume functioning and will try to re-establishing security and stability in economic life after the people is exhausted and his savings depleted.

The Obama ticket did the job wonderfully.  Obama spread the requisite hope of  “confidence” in fantastic rhetorical speeches.  Then, Obama was put on short leach in order not to institute dangerous euphoric hopes that could run overboard.  The limited national health care coverage reform passed with the requisite roadblocks:  Reforms should not be taken for granted and done quickly because the people want it.  No other serious reforms were put on the table for discussion and for making decisions:  Just mentioning reasonable financial reforms were too dangerous to start with.

It does not look promising in the near future for any reforms.  The Republicans and the Democrats are sharing the same oligarchic bed and just sending angry smoke screens working on people’s fears of instability and insecurity.

Note:  I do not necessarily include the billionaires of the last two decades in the 1% oligarchy:  They might be more willing to support reasonable reforms to this brand of capitalism.


adonis49

adonis49

adonis49

October 2010
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