Americans as a whole are intelligent, industrious, and honest people who probably trust too much. It is not in their nature to automatically question their elected officials as they believe that these officials share the same core values of honesty that Average Americans possess.
More and more Americans are turning to the Tea Parties and other forms of assembly and away from watching and believing in what they are hearing from their leaders or listening to a biased media. Members of the Democrat, Republican, Libertarian parties and independent voters are becoming more and more alienated by their own government officials. They vote, and nothing changes. They vote, and the nation goes further into debt. They vote, and their roads and highways deteriorate more and more each year. They vote, and none of the US poverty programs work. They vote, and their tax dollars just seem to disappear into an abyss of bureaucracy and debt service that consumes their tax dollars…
Where did we go wrong?
Unfortunately, we have delegated the power over our freedom to our elected offices who have in turn relegated our freedoms to a place of insignificance behind their own ambitions and self-aggrandizement. Americans are now wondering what went wrong? They work hard; raise their families as best they can; live by the rules; and try to treat their neighbors as they would like to be treated. So what went wrong? Let’s look at one situation that is driving Americans to a level of cynicism and malaise that we have not seen or felt in decades. This is just one example of how corrupt our system has become and why the average person can’t stand government, local, state or federal…
Warren Buffet and Barack Obama:
Warren Buffet is best known as one of the richest men on this earth and is the Chairman and CEO of Berkshire Hathaway, the 8th largest company in the world and it is described as a conglomerate holding company. A holding company does not produce any good or service directly but merely owns stock or other equity positions in other companies that do produce either goods or services. In short, they are money people who invest in existing or new companies. Holding companies of all sizes lobby to make sure that they can control political events to protect their investments:
POLITICAL CONNECTIONS AND THE CONTROL OF KEY VOTES AND POLICY THAT MAKE OR BREAK SPECIFIC BUSINESSES IN THE US ARE VITAL TO MAINTAINING A HOLDING COMPANYS’ PROFITS. POLITICAL RISKS HAVE TO BE MITIGATED BY MANIPULATING THE OUTCOME, I.E., MANIPULATING THE VOTES OR THE REGULATIONS.
Warren Buffet courted Obama during Obama’s Presidential campaign in 2007-2008 and has been rewarded by becoming one of Obama’s key advisors and confidants. Buffet and Obama are often pictured in the news to give Obama an air of authenticity by having a successful businessman by his side. Buffet learned a long time ago that in order to protect his own self-interest and that of the companys’ he has invested in, playing politics is the third leg on a three-legged stool. The other two legs include a business that has stock growth potential and the other is a business that generates cash with generous float capabilities, such as the insurance companies he owns (GEICO is one). He uses the latter to fund the cash flows needed to finance acquisitions in order to avoid debt.
So, we have a multi-billionaire who manages a multi-billion dollar empire and cozys up to the Washington Power Brokers and makes sure that they follow his yellow brick road! So, what is our case study?
Case Study: Buffet-Obama-Bank of America:
We saw from 2008-2011, the outcry from the government and the financial institutions over the imminent total collapse of our economy and even the entire global economy. This was the setup to the Troubled Asset Relief Program (TARP) and other more covert programs set up in secrecy by the Federal Reserve. Taxpayers were lined up against the wall awaiting the financial firing squad of Trillions in bailout programs for banks and Wall Street. Bank of American was at the front of the pig trough with their hands in our pockets. In 2008, B of A received $25 Billion from TARP; then again in 2009, B of A received $20 Billion from TARP and another $118 Billion in guarantees to protect B of A from potential losses! Also, in 2009, B of A was handed another $5.2 Billion from AIG!! AIG got the money they gave B of A from guess who, you the taxpayer via TARP!! If you are not ready to barf yet, how about the Federal Reserve giving B of A’s Morgan Stanley $1.9 Trillion and B of A itself received $1.2 Trillion in loans. So, B of A raked in a total of $3.1 Trillion in almost zero interest loans from the Fed (you) and another $50 Billion via TARP and the Treasury. This was the same time that B of A was refusing to renegotiate mortgages, refusing loans to small business, and crushing you with new credit card interest and fees!
Enter Warren Buffet and his wallet known as Berkshire Hathaway:
The favoritism the government has displayed, both Bush and Obama, for the benefit of the banks and Wall Street, started when the taxpayers had to pony up almost $800 Billion to bailout big banks and Wall Street firms to fix a problem they and the politicians created! At that point, Bank of America was in the front of the financial soup line with their hand in your pocket. Buffet, KNOWING through his relationships with Henry Paulsen, Tim Geithner, Ben Bernanke and Barak Obama (the candidate then the President) that B of A and the other banks and financials institutions would be “protected” as too big to fail by the Government (you), open up his checkbook! Since the Sub-Prime Crash in 2007, Buffet has purchased and sold 9.1 million shares of B of A, owns 12.6% of American Express, owns 19% of Wells Fargo, invested $3.5 Billion in Goldman Sachs, and owns 12.5% of Moodys, (the rating agency who rates the very financial institution Buffet owns). The cherry on the top of his investments was a sweetheart deal he just concluded with B of A. This deal followed the following events that occurred in less than two days.
- Obama and Buffet have a friendly phone chat while Obama is basking up the sun in August on Marth’s Vineyard. Ostensibly Buffet was counseling Obama in job growth and the health of the financial sector leading up to Obama’s post Labor Day speech.
- Buffet agrees to “host” a fundraiser for Obama at a cost of around $10-$35K per ticket!
- Buffet has an epiphany that B of A might be a good investment.
- Buffet gives B of A $5 Billion in return for preferred shares with guaranteed 6% dividends and a 5% guaranteed profit if the bank buys back the shares. B of A’s shares had declined 50% in the preceding year.
Do you really believe that the phone call, the fundraiser, and the investments in B of A were isolated events? Do you really think that Buffet did not know about the $3.1 Trillion in loans from the Fed or the $50 Billion in bailout funds from the Treasury would be forthcoming when he bought 9.1 million shares in B of A in 2007-2009? Do you really believe that Buffet did not get assurances from Obama that the Treasury, the Fed and his administration would prop up the financial institutions in case they got into trouble again? (actually they are still in trouble and would be gone without government intervention) Buffet is a genius when it comes to “investing” in businesses especially when he controls the outcomes! His political machinations are superb and he targets his favors where they can be used to manipulate outcomes.
So, when the average American is facing increasing levels of negative equity in their homes; the loss in one or more jobs in their household; the loss of lines of credit or loans for their small businesses; or increasing tax liabilities due to having to cash out retirement funds to live on; Buffet and the ruling class continue to stack the deck in their favor. This is what is wrong in American and the Average American gets it. They understand political favoritism and “crony capitalism” which is NOT capitalism, it is manipulated socialism. Americans are sick of the ruling class and business as usual in Washington. They are sick of being made the patsies of crony capitalism and thought to be an idiot for acquiescing! The next few months leading up to the 2012 election will be increasingly confrontational. Average Americans are ready to stand against further cronyism and further corruption within the ruling class. They are even more ready for a CHANGE than they were in the 2010 mid-term elections…
Buffet better get his money out before the people take back their government.