A few personal ramblings …
Because of what we have viewed as a fragile economy, and a weakening dollar, my husband and I have moved much of our stock portfolio into cash over the past few months – placing that cash in a money market fund at our brokerage firm.
Throughout the playing out of the sub prime debacle, the crumbling of corporations that were once financial giants, and the ludicrous bailout proposals, we have maintained that stance, continuing to hold precious metals/miners and commodities long-term, but keeping the remainder in cash, which sweeps into the money market account.
A few days ago we received a letter from our online brokerage firm, telling us that the NAV in our money market fund has fallen below $1, due, in part, to the decrease in value of debt securities issued by Lehman Brothers and held by the fund.
Long story short … as a result, until our funds are redeemed by our brokerage, we will not have access to them for withdrawal or transactions. We were informed that this action is being taken in our best interest ‘in order to limit potential losses’.
We (and millions of other American investors) have been attempting to step back from market speculation during what we determined to be an uncertain economic period (to put it mildly) by putting a significant portion of our savings into what most would consider to be a safe, conservative investment vehicle, and even that decision has been affected by the turmoil.
Which got me to thinking … those who are responsible for the current disaster-in-the-making … just how are they being affected by the results of their corrupt machinations?
The special interest groups that pressured their friends in congress to relax the underwriting standards in order to allow home ownership for people who did not have the financial wherewithal to own a home … are they suffering as much as the ‘average American’ (and the generation to follow) will in bearing the ultimate burden for this travesty?
The members of congress who pressured the mortgage and banking industry to relax the borrowing requirements … are they suffering as much as the ‘average American’ (and the generation to follow) will in bearing the ultimate burden for this travesty?
The financial gurus who got lost in their own importance, and their own power to call the shots while lining their own pockets … are they suffering as much as the ‘average American’ (and the generation to follow) will in bearing the ultimate burden for this tragedy?
My husband and I are only two of tens of millions of Americans whose lives have already been negatively affected. And this recent ‘negative effect’ will prove to be only the tip of a monstrous iceberg.
Today we do not have access to money that we spent a lifetime earning -- money that we placed in what we considered to be a ‘safe’ and liquid location.
Tomorrow, and possibly for the remainder of our lives, we, and tens of millions of our fellow Americans, will be forced to use a large portion of the fruits of our labors in order to pay the debt that was created by an elite group of lobbyists, legislators, and financiers – without our knowledge, and without our approval.
A friend wrote to me today, 'I find myself sitting in a high-stakes Texas hold-em game with a lot of chips in the pot that I cannot remember betting.'
And this is just the beginning. Private enterprise is fast becoming nationalized. Enormous financial and political power is being accorded to people in Washington who are unelected by, and unaccountable to, the people.
It is that last paragraph that terrifies me most. The fact that the present and future personal finances of every American are being plundered by an elite ruling class is egregious. But the fact that the United States Constitution is being declared all but irrelevant by the simultaneous swipes of countless bureaucratic pens is a tragedy beyond comprehension.
The days of our existence as a representative republic are numbered, thanks to the ever-increasing power of the governmental, financial, media and academic elite who have no comprehension of the preciousness and fragility of individual liberty, and whose collective sense of allegiance, duty, and integrity could fit into the eye of a gnat.