Marty's Blog

Bruce Larson- “My Creator, My Friend”

The conviction that God is affects all that we are and do. Our personal and corporate destiny hinges on whether we or not believe God is the Creator.

Even Benjamin Franklin, hardly known for his piety, said, “I have lived, sir, a long time, and the longer I live, the more convincing proof I see of this truth-that God governs in the affairs of men.”

What’s weighing you down? Fear? Regrets? A broken relationship? Failure?Depression is at an all-time high—fiscally and emotionally. All too often we hear about…

…people having the blues.
…new mothers experiencing postpartum depression.
…children who are depressed being put on antidepressants.

What is the antidote for depression? JOY!

Don’t confuse joy with happiness. Happiness is dependent on what is happening around you and to you. Joy, on the other hand, is that deep inner peace, the contentment that nothing can take from you. It is a sense of well-being even when life is falling to pieces all around you.

Mission Impossible? No. Mission Possible? Yes! It’s possible to walk on the moon even when life’s circumstances are pulling you down—that is IF you get a faith lift by looking into the face of God.

Where do you get JOY?

JOY comes from connecting with a positive FAITH in a powerful God!Get a faith lift through a face lift! Look UP into the face of God and let him lift you up when life gets you down.

“Fame is a fickle food upon a shifting plate.” – — Emily Dickinson …

E.J. Dionne  Jan 24, 2010

“Populism” is the most overused and misused word in the lexicon of commentary. But thanks to a reckless decision by Chief Justice John Roberts’ Supreme Court and also the greed of the nation’s financial barons, we have reached a true populist moment in American politics.

The Supreme Court’s 5-4 decision last week giving American corporations the right to unlimited political spending was an astonishing display of judicial arrogance, overreach and unjustified activism.

Turning its back on a century of practice and decades of precedent, a narrow right-wing majority on the court decided to change the American political system by tilting it decisively in favor of corporate interests.

An unusually blunt headline in Friday’s print edition of The New York Times told the story succinctly: “Lobbies’ New Power: Cross Us, and Our Cash Will Bury You.” 

Think of this rather persuasive moment in a chat between a corporate lobbyist and a senator: “Are you going to block that taxpayer bailout we want? Well, I’m really sorry, but we’re going to have to run $2 million worth of really vicious ads against you.” The same exchange might take place on tax breaks, consumer protections, environmental rules and worker safeguards.

Defenders of this vast expansion of corporate influence piously claim it’s about “free speech.” But since when is a corporation, a creation of laws passed by governments, entitled to the same rights as an individual citizen? This ruling will give large business entities far more power than any individual, unless you happen to be Michael Bloomberg or Bill Gates.

The only proper response to this distortion of our political system by ideologically driven justices is a popular revolt. It would be a revolt of a sort deeply rooted in the American political tradition. The most vibrant reform alliances in our history have involved coalitions between populists (who stand up for the interests and values of average citizens) and progressives (who fight against corruption in government and for institutional changes to improve the workings of our democracy). It’s time for a new populist-progressive alliance.

This court ruling should also challenge the fake populism we have seen on display of late. It disguises a defense of the interests of the powerful behind crowd-pleasing rhetoric against “Washington,” “taxes” and, yes, “Obama.”

President Barack Obama has helped feed this faux populist revolt by failing to understand until recently how deeply frustrated politically moderate, middle-class Americans are over policies that bailed out the banks while leaving behind millions of unemployed and millions more alarmed about their economic futures.

If average voters came to see government primarily as an instrument of the banks, why should they believe that the same government could help them on matters of health care and employment? This problem was aggravated by puffed-up, self-involved U.S. senators who conspired to make the legislative process look as ugly and chaotic as possible.

Obama began taking a turn toward populism before the results of the Massachusetts Senate race rolled in. Republican Scott Brown’s victory made the new turn imperative.

The president has now offered a modest tax on the big financial institutions to cover the costs of bailouts, and a tougher approach to banks that will limit their size and their capacity to make economy-wrecking financial bets. It’s a decent start, and it’s about time.

Next will come legislation to turn back the Supreme Court’s effort to undermine American democracy. Sen. Charles E. Schumer and Rep. Chris Van Hollen are working with the White House on a measure to rein in the reach of the Supreme Court ruling.

Their bill is still being written, but the ideas they’re considering include prohibiting political spending by corporations that receive government money, hire lobbyists, or make most of their income abroad.

And shouldn’t shareholders have the right to vote before a corporation spends money on politics? Do we want foreign-owned corporations, especially those owned by foreign governments, to exercise an undue influence in our politics? Imagine what an enterprise owned or influenced by the Chinese or Russian governments might try to do to a politician who campaigns too ardently for human rights?

My favorite idea: Requiring CEOs to appear in ads their corporations sponsor, exactly as politicians have to do. (“I’m Joe Smith, the CEO of Acme Consolidated Megacorporation, and I approve this message.”)

President Obama was right to invoke Teddy Roosevelt in his radio address on Saturday. American democracy and the square deal in government for which TR battled are in jeopardy.

E.J. Dionne’s e-mail address is ejdionne(at)washpost.com.

Chris Hedges  Jan 25, 2010

Corporate forces, long before the Supreme Court’s decision in Citizens United v. Federal Election Commission, carried out a coup d’état in slow motion. The coup is over. We lost. The ruling is one more judicial effort to streamline mechanisms for corporate control. It exposes the myth of a functioning democracy and the triumph of corporate power. But it does not significantly alter the political landscape. The corporate state is firmly cemented in place.

The fiction of democracy remains useful, not only for corporations, but for our bankrupt liberal class. If the fiction is seriously challenged, liberals will be forced to consider actual resistance, which will be neither pleasant nor easy. As long as a democratic facade exists, liberals can engage in an empty moral posturing that requires little sacrifice or commitment. They can be the self-appointed scolds of the Democratic Party, acting as if they are part of the debate and feel vindicated by their cries of protest.

Much of the outrage expressed about the court’s ruling is the outrage of those who prefer this choreographed charade. As long as the charade is played, they do not have to consider how to combat what the political philosopher Sheldon Wolin calls our system of “inverted totalitarianism.”

Inverted totalitarianism represents “the political coming of age of corporate power and the political demobilization of the citizenry,” Wolin writes in “Democracy Incorporated.” Inverted totalitarianism differs from classical forms of totalitarianism, which revolve around a demagogue or charismatic leader, and finds its expression in the anonymity of the corporate state. The corporate forces behind inverted totalitarianism do not, as classical totalitarian movements do, boast of replacing decaying structures with a new, revolutionary structure. They purport to honor electoral politics, freedom and the Constitution. But they so corrupt and manipulate the levers of power as to make democracy impossible.

Inverted totalitarianism is not conceptualized as an ideology or objectified in public policy. It is furthered by “power-holders and citizens who often seem unaware of the deeper consequences of their actions or inactions,” Wolin writes. But it is as dangerous as classical forms of totalitarianism. In a system of inverted totalitarianism, as this court ruling illustrates, it is not necessary to rewrite the Constitution, as fascist and communist regimes do. It is enough to exploit legitimate power by means of judicial and legislative interpretation. This exploitation ensures that huge corporate campaign contributions are protected speech under the First Amendment. It ensures that heavily financed and organized lobbying by large corporations is interpreted as an application of the people’s right to petition the government. The court again ratified the concept that corporations are persons, except in those cases where the “persons” agree to a “settlement.” Those within corporations who commit crimes can avoid going to prison by paying large sums of money to the government while, according to this twisted judicial reasoning, not “admitting any wrongdoing.” There is a word for this. It is called corruption.

Corporations have 35,000 lobbyists in Washington and thousands more in state capitals that dole out corporate money to shape and write legislation. They use their political action committees to solicit employees and shareholders for donations to fund pliable candidates. The financial sector, for example, spent more than $5 billion on political campaigns, influence peddling and lobbying during the past decade, which resulted in sweeping deregulation, the gouging of consumers, our global financial meltdown and the subsequent looting of the U.S. Treasury. The Pharmaceutical Research and Manufacturers of America spent $26 million last year and drug companies such as Pfizer, Amgen and Eli Lilly kicked in tens of millions more to buy off the two parties. These corporations have made sure our so-called health reform bill will force us to buy their predatory and defective products. The oil and gas industry, the coal industry, defense contractors and telecommunications companies have thwarted the drive for sustainable energy and orchestrated the steady erosion of civil liberties. Politicians do corporate bidding and stage hollow acts of political theater to keep the fiction of the democratic state alive.

There is no national institution left that can accurately be described as democratic. Citizens, rather than participate in power, are allowed to have virtual opinions to preordained questions, a kind of participatory fascism as meaningless as voting on “American Idol.” Mass emotions are directed toward the raging culture wars. This allows us to take emotional stands on issues that are inconsequential to the power elite.

Our transformation into an empire, as happened in ancient Athens and Rome, has seen the tyranny we practice abroad become the tyranny we practice at home. We, like all empires, have been eviscerated by our own expansionism. We utilize weapons of horrific destructive power, subsidize their development with billions in taxpayer dollars, and are the world’s largest arms dealer. And the Constitution, as Wolin notes, is “conscripted to serve as power’s apprentice rather than its conscience.”

“Inverted totalitarianism reverses things,” Wolin writes. “It is politics all of the time but a politics largely untempered by the political. Party squabbles are occasionally on public display, and there is a frantic and continuous politics among factions of the party, interest groups, competing corporate powers, and rival media concerns. And there is, of course, the culminating moment of national elections when the attention of the nation is required to make a choice of personalities rather than a choice between alternatives. What is absent is the political, the commitment to finding where the common good lies amidst the welter of well-financed, highly organized, single-minded interests rabidly seeking governmental favors and overwhelming the practices of representative government and public administration by a sea of cash.” 

Hollywood, the news industry and television, all corporate controlled, have become instruments of inverted totalitarianism. They censor or ridicule those who critique or challenge corporate structures and assumptions. They saturate the airwaves with manufactured controversy, whether it is Tiger Woods or the dispute between Jay Leno and Conan O’Brien. They manipulate images to make us confuse how we are made to feel with knowledge, which is how Barack Obama became president. And the draconian internal control employed by the Department of Homeland Security, the military and the police over any form of popular dissent, coupled with the corporate media’s censorship, does for inverted totalitarianism what thugs and bonfires of books do in classical totalitarian regimes.

“It seems a replay of historical experience that the bias displayed by today’s media should be aimed consistently at the shredded remains of liberalism,” Wolin writes. “Recall that an element common to most 20th century totalitarianism, whether Fascist or Stalinist, was hostility towards the left. In the United States, the left is assumed to consist solely of liberals, occasionally of ‘the left wing of the Democratic Party,’ never of democrats.”

Liberals, socialists, trade unionists, independent journalists and intellectuals, many of whom were once important voices in our society, have been silenced or targeted for elimination within corporate-controlled academia, the media and government. Wolin, who taught at Berkeley and later at Princeton, is arguably the country’s foremost political philosopher. And yet his book was virtually ignored. This is also why Ralph Nader, Dennis Kucinich and Cynthia McKinney, along with intellectuals like Noam Chomsky, are not given a part in our national discourse.

The uniformity of opinion is reinforced by the skillfully orchestrated mass emotions of nationalism and patriotism, which paints all dissidents as “soft” or “unpatriotic.” The “patriotic” citizen, plagued by fear of job losses and possible terrorist attacks, unfailingly supports widespread surveillance and the militarized state. This means no questioning of the $1 trillion in defense-related spending. It means that the military and intelligence agencies are held above government, as if somehow they are not part of government. The most powerful instruments of state power and control are effectively removed from public discussion. We, as imperial citizens, are taught to be contemptuous of government bureaucracy, yet we stand like sheep before Homeland Security agents in airports and are mute when Congress permits our private correspondence and conversations to be monitored and archived. We endure more state control than at any time in American history. 

The civic, patriotic and political language we use to describe ourselves remains unchanged. We pay fealty to the same national symbols and iconography. We find our collective identity in the same national myths. We continue to deify the Founding Fathers. But the America we celebrate is an illusion. It does not exist. Our government and judiciary have no real sovereignty. Our press provides diversion, not information. Our organs of security and power keep us as domesticated and as fearful as most Iraqis. Capitalism, as Karl Marx understood, when it emasculates government, becomes a revolutionary force. And this revolutionary force, best described as inverted totalitarianism, is plunging us into a state of neo-feudalism, perpetual war and severe repression. The Supreme Court decision is part of our transformation by the corporate state from citizens to prisoners.

Chris Hedges, a Pulitzer Prize-winning correspondent, writes a column published every Monday on Truthdig. His latest book is “Empire of Illusion: The End of Literacy and the Triumph of Spectacle.”

I recently read some great aphorisms and want to share them

1. Associate with people who have soulful values not selfish values

2. You can spend your life any way you want, but you can spend it only once- John Maxwell

3. Though no one can go back and make a brand new start, anyone can start from now and make a brand-new ending- Carl Bard

7 Decisions for Successful Living by Andy Andrews

1. The Buck Stops Here. I am responsible for my past and my future.

2. I Will Seek Wisdom. I will be a servant to others.

3. I Am A Person Of Action. I seize this moment. I choose now.   God is waiting for me to take action. (there are no right decisions; only decisions we make right)

4. I Have A Decided Heart (Passion). My destiny is assured.

5. Today I Will Choose To Be Happy. I am the possesor of a grateful spirit.

6.  I Will Greet This Day With A Forgiving Spirit. I will forgive myself.

7.  I Will Persist Without Exception. I am a person of great faith.

As children we are afraid of the dark; now as adults we are afraid of the light.

Bruce Larson-“My Creator, My Friend: Regarding a metaphor about Noah’s Ark–“If it wasn’t for the storm outside, you couldn’t stand the smell inside.”

Dan Froomkin  Jan 23, 2010 from Huffington Post

An extraordinary series of articles recently appeared on the Nieman Watchdog Web site, anchored by investigative reporter John Hanrahan and mostly based on interviews with some of the nation’s most perceptive, prescient and prophetic economists. The series laid out a broad landscape of economic issues that have been largely overlooked during the reporting of the nation’s economic collapse — to our great peril.

Hanrahan’s articles explore key elements of the story that reporters should have been — and should still be — writing about. Among them: The endemic fraud at the heart of the collapse, the resultant need for a comprehensive dissection of some key financial institutions, how the wars in Iraq and Afghanistan have weakened the economy, the dramatic effects of the crash on domestic poverty and world poverty, and underlying it all, the critically important role of government spending in a recovery, be it through a second stimulus or expanded entitlements or jobs programs, all of which requires that deficits be seen, for the short run at least, as the solution, not the problem.

As a coda to Hanrahan’s series, here is a list of seven things all of us should be more alarmed by than we currently are, going forward.

A common theme underlying them all is that while our leaders — and the voices of conventional wisdom — treat our current recession as cyclical in nature, and are essentially mostly just waiting around for growth to pick up again, there is plenty of reason to believe that this crisis was instead an expression of structural problems. And if that is so, and we don’t take the proper action, then the wait could be a long one.

No. 1: The middle class may never be the same again

The full effects of the crash of 2007-2008 on the lives of regular Americans has yet to be fully appreciated. For most members of the middle class, their sense of financial well-being was largely based on the size of their 401(k)s and their equity as homeowners. After the collapse of stock prices and with the steep drop in home prices, many may never feel the same way again, or spend their money as confidently.

While 401(k)s have somewhat bounced back, about one in four homeowners now actually have negative equity — are “underwater”. A recent study by Barry P. Bosworth and Rosanna Smart for Brookings finds that American households lost $13 trillion in wealth between mid-2007 and March 2009, or about 15 percent in all. That decline badly hit baby boomers just as they’re headed into retirement. And middle-income families whose head is age 50 or younger actually have smaller net incomes today than in 1983.

Meanwhile, many American families spent much of the last decade (or two) living beyond their means, piling up debt on their credit cards, or “bubble borrowing.” Two University of Chicago researchers have found that the housing bubble hugely increased household consumption as homeowners borrowed on average $0.25 to $0.30 for every $1 increase on their home equity. Now that housing prices have crashed and credit is tight, the inevitable result, Atif Mian and Amir Sufi write somewhat euphemistically, is a “painful process of household de-leveraging.”

Harvard Professor Elizabeth Warren, an emerging hero among progressives in her role as chair of the congressional bailout oversight panel, sees the latest series of blows as the unfortunate culmination of a crisis that started taking form a generation ago. For long stretches of time, the growth in the nation’s GDP has gone almost entirely to the top 1% or less of the population. That has resulted in an dramatic shift in wealth away from the middle class, made the economy more vulnerable to disaster and made the toll of such a disaster more catastrophic to all but the wealthiest Americans. Warren writes:

America today has plenty of rich and super-rich. But it has far more families who did all the right things, but who still have no real security. Going to college and finding a good job no longer guarantee economic safety. Paying for a child’s education and setting aside enough for a decent retirement have become distant dreams. Tens of millions of once-secure middle class families now live paycheck to paycheck, watching as their debts pile up and worrying about whether a pink slip or a bad diagnosis will send them hurtling over an economic cliff.

She concludes: “America without a strong middle class? Unthinkable, but the once-solid foundation is shaking.”

No. 2: The recovery could take a really long time

Even assuming that we are at the beginning of an enduring recovery, there are many signs that it will be a slow one, and that it could be as long as a decade until most American families return to the standard of living they enjoyed before the crash.

Most notably, unemployment is widely expected to be astronomically high for at least another year or two — remaining around 10 percent through 2010.

And the recovery, such as it is, has been largely fueled by government money — not just the stimulus, but also the bailouts, targeted programs such as the homebuyers tax credit and “cash for clunkers,” and emergency spending on such things as extended unemployment insurance. What happens, however, when those stop? And none are designed to go on forever.

Washington Post financial columnist Steven Pearlstein recently put it this way:

My best guess is that the current upswings in economic output, confidence and financial asset prices are largely a reflection of the extraordinary fiscal and monetary juice provided by Treasury and the Federal Reserve, along with the natural rebound that occurs after a collapse in consumer and business spending like that which occurred in the first half of 2009. The surprising strength of the bounce-back testifies to the wisdom of the underlying strengths of the U.S. economy and the success of the policies, but is likely to peter out as the stimulus begins to wear off and the inventory correction is completed.

No. 3: The recovery could only be temporary

In an interview with Fox News back in November, Obama himself raised the possibility that the economy could once again head into a tailspin:

I think it is important though to recognize that if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the US economy in a way that could actually lead to a double-dip recession.

This is the classic Wall-Street influenced worst-case scenario — with government spending as the villain and interest rate increases as the ultimate horror, leading to doom.

But Obama may be worrying about the wrong side of the Wall Street/Main Street axis. The more likely reason the economy could tank again is because of insufficient demand.

For the past decade or so, the growth of the U.S. economy was primarily fueled by the credit and housing bubbles — which now turn out to have been illusory. So what will spur growth this time? Especially with so many Americans out of work? Where’s the demand going to come from?

Citing, among other things, the likelihood that the U.S. savings rate could go markedly higher in the coming years, Nobel laureate economist Joseph Stiglitz warns that “we are not seeing a recovery of sustained consumption,”and says there is a “significant chance” of a double-dip recesssion for that reason.

One plausible growth model involves extensive government investment in infrastructure, public works and public goods; expansion of social programs; and a return to pre-Reagan era-style growth based on rising middle-class incomes, where wages grow with productivity.

Obama, however, captured as he is by the Wall Streeters and deficit hawks on his economics team, doesn’t seem inclined in that direction — nor, of course, does our utterly dysfunctional Congress. Obama and his advisers don’t seem to feel the need for a new approach to growth, or to explain where they think it will come from. Their posture is simply to hang tough until it returns.

But the current economic situation is more fragile that some would have it. One particular danger is that because of bogus accounting rules, banks aren’t properly recognizing their losses — and are in fact largely insolvent.

Clinton-era Labor Secretary Robert Reich recently speculated about what lies ahead for the economy. He wrote he see only a 10 percent chance of a double dip recession (vs. a 30 percent chance of a strong or solid recovery; a 40 percent chance of a jobless recovery; and a 20 percent chance of a stalled recovery). But his description of that particular scenario was particularly vivid:

The commercial real estate market craters, carrying with it hundreds of regional banks and exposing how much junk is still on the books of major Wall Street banks. This triggers a long-awaited “correction” in the Dow and pushes the nation into another recession. Job losses rise.

No. 4: Then what? This time, we don’t have the tools to get out of a recession

The recognized way of dealing with a recession is to lower interest rates in order to stimulate the economy. But the Federal Reserve can’t lower the rate to below zero, so that’s out.

The government can pour vast amounts of money into the economy, either through a stimulus or a massive bailout — or, as the case may be, both.

But next time around, that money might not be there. Not only could the political will be lacking, but there is an upper limit to just how much money the country can borrow and spend at one time without it doing more harm than good.

No. 5: The ‘very serious’ people in Washington are still obsessed about the deficit

In Washington salons and newsrooms, you are not considered a serious person unless you are very, very worried about the deficit. The principle that reducing the deficit is of the greatest urgency (and must come at the cost of entitlements) is for some reason firmly lodged in the halls of power in Washington. An example of just how uncontroversial deficit hawkery is among Washington’s elite was provided by The Washington Post earlier this month when it apparently didn’t think twice about turning over its news columns to an organization funded by Peter G. Peterson, the billionaire investment banker on a crusade to reduce the deficit by looting Social Security.

But deficit hawkery right now is not just ludicrous, it’s dangerous. As New York Times columnist Paul Krugman noted recently, “the calls we’re already hearing for an end to stimulus, for reversing the steps the government and the Federal Reserve took to prop up the economy, will grow even louder.” He adds:

But if those calls are heeded, we’ll be repeating the great mistake of 1937, when the Fed and the Roosevelt administration decided that the Great Depression was over, that it was time for the economy to throw away its crutches. Spending was cut back, monetary policy was tightened — and the economy promptly plunged back into the depths.

No. 6: Whatever is making the stock market go up could go away

The giddiness over the recovering stock market makes it easy to overlook some key questions about its rise. But what exactly has sent the Dow up almost 70 percent since March? Could it be another bubble? And could it burst?

Was it a function of the extraordinary liquidity pumped into the system, first through the bailouts and now through nearly zero-interest loans to the banks? Was it foreign investors attracted by weak dollar and low interest rates? Where’s all the money coming from?

No one seems to know. (Does anyone really care?) But whatever it was could presumably come to an end, devestating the market and the economy.

No. 7: The hugely irresponsible financial sector remains unchastened

Back in March, Obama described modern Wall Street as a “house of cards” and a “Ponzi scheme” in which “a relatively few do spectacularly well while the middle class loses ground.”

In his major speech on the economy in April, the president proclaimed that “we cannot go back to the bubble-and-bust economy that led us to this point.” He continued:

It is simply not sustainable to have a 21st-century financial system that is governed by 20th-century rules and regulations that allowed the recklessness of a few to threaten the entire economy. It is not sustainable to have an economy where in one year, 40 percent of our corporate profits came from a financial sector that was based on inflated home prices, maxed-out credit cards, over-leveraged banks and overvalued assets. It’s not sustainable to have an economy where the incomes of the top 1 percent has skyrocketed while the typical working household has seen their incomes decline by nearly $2,000. That’s just not a sustainable model for long-term prosperity.

He was right.

He even used powerful biblical imagery from Jesus’s Sermon on the Mount to liken the boom-and-bust economy he inherited to a house built on sand and the future U.S. economy he is working toward to one built on a rock, that could weather a storm.

But the big banks, with their enormous political clout, appear to be managing to duck the re-regulation that seemed inevitable a year ago — and they are now in fact more powerful than ever. The ultimate litmus test is that the banks that are “too big to fail,” rather than being broken up, are now making huge profits — and paying astronomical bonuses — based on the implicit guarantee that the government will pay their debts if they ever face bankruptcy. Indeed, that government backstop gives them every reason to place riskier bets than ever. Even Obama’s latest, much more assertive and populist proposal to limit bank activities does not break up those banks — and faces an uncertain future in our nearly paralyzed legislative branch.

Economist Simon Johnson (the subject of one of Hanrahan’s articles) recently said on CNBC:

The conventional wisdom is you can’t have back-to-back major financial crises. I think we’re going to push that, we’re going to have a look and see whether that’s true. And the next 12 months could really be exciting. People could be very positive, but we are setting ourselves up for an enormous catastrophe.

Indeed. By Obama’s biblical analogy, our economy is still very much built on sand –and the next big storm might not be very far away at all.

Dan Froomkin is Washington Bureau Chief of the Huffington Post, and also Deputy Editor of NiemanWatchdog.org, where this post first appeared.

William Ernest Henley. 1849–1903

Out of the night that covers me,
Black as the Pit from pole to pole,
I thank whatever gods may be,
For my unconquerable soul.

In the fell clutch of circumstance
I have not winced nor cried aloud.
Under the bludgeonings of chance
My head is bloody, but unbowed.

It matters not how strait the gate,
How charged with punishments the scroll,
I am the master of my fate:
I am the captain of my soul.

Bill Mansell is president of MindPerk, Inc., the web’s largest resource for self improvement and business training.

The name of this poem is “Invictus” which means unconquered. The essence of the message is that no matter what happens to you, you get to decide how you will respond and react. You get to decide what you will do tomorrow and the next day. You get to choose your attitude; you decide what your goals will be and whether you will continue to strive or give up. You are the master of your own fate.

Let me tell you about William Ernest Henley who wrote this poem. He loved writing and literature, but his family could only afford a second-rate school. At 12, he contracted tuberculosis which weakened and crippled his limbs. One friend described it as “an insidious enemy [which] gnawed at his hands and feet.” At 18, one foot had to be amputated. In spite if this, he vigorously worked and studied so he could reach his dream of being an author and poet. At the age of 24, just as his career was beginning, doctors told him that his other foot would need to be amputated. To avoid amputation, he traveled to Edinburgh were he was hospitalized for nearly 2 years undergoing radical new treatments. It was during these many, painful months in the hospital that William wrote some of his most poignant poems including “Invictus,” which is a brave, bold statement of his determination to overcome both depression and his physical handicaps.

When he was finally released from the hospital, William found work as an editor of a little-read magazine. Despite his setbacks, he continued to write and work. Little by little, his writings became well known. He became chief editor of the “National Observer” and turned his career into an opportunity to help many up-and-coming authors. In this capacity, he discovered and helped many of Britain’s most well-known writers including Hardy, Shaw, Wells, Barrie, and Kipling. His unconquerable spirit drove him forward, undeterred by setbacks or challenges, until he vigorously lived his dream.

You too, are the master of your own fate. You can proactively decide, right now, what you want out of life. And, just like William Henley, you can work and persevere, overcoming the challenges of life, to achieve your dreams. Like the captain of a ship, you are the captain of your soul. This New Year is your chance to take control of the wheel and steer your course in any direction that you choose. You decide … it is up to you.

By Joseph E. Stiglitz Jan 2010

IT IS SAID THAT A NEAR-DEATH experience forces one to reevaluate priorities and values. The global economy has just escaped a near-death experience. The crisis exposed the flaws in the prevailing economic model, but it also exposed flaws in our society. Much has been written about the foolishness of the risks that the financial sector undertook, the devastation that its institutions have brought to the economy, and the fiscal deficits that have resulted. Too little has been written about the underlying moral deficit that has been exposed—a deficit that is larger, and harder to correct.

One of the lessons of this crisis is that there is a need for collective action, that there is a role for government. But there are others. We allowed markets to blindly shape our economy, but in doing so, they also shaped our society. We should take this opportunity to ask: Are we sure that the way that they have been molding us is what we want?

We have created a society in which materialism overwhelms moral commitment, in which the rapid growth that we have achieved is not sustainable environmentally or socially, in which we do not act together to address our common needs. Market fundamentalism has eroded any sense of community and has led to rampant exploitation of unwary and unprotected individuals. There has been an erosion of trust—and not just in our financial institutions. It is not too late to close these fissures.

How the market has altered the way we think is best illustrated by attitudes toward pay. There used to be a social contract about the reasonable division of the gains that arise from acting together within the economy. Within corporations, the pay of the leader might be 10 or 20 times that of the average worker. But something happened 30 years ago, as the era of Thatcher/Reagan was ushered in. There ceased to be any sense of fairness; it was simply how much the executive could appropriate for himself. It became perfectly respectable to call it incentive pay, even when there was little relationship between pay and performance. In the finance sector, when performance is high, pay is high; but when performance is low, pay is still high. The bankers knew—or should have known—that while high leverage might generate high returns in good years, it also exposed the banks to large downside risks. But they also knew that under their contracts, this would not affect their bonuses.

What happens when reward is decoupled from risk? One cannot always distinguish between incompetence and deception, but it seems unlikely that a business claiming to have a net worth of more than $100 billion could suddenly find itself in negative territory. More likely than not, it was engaged in deceptive accounting practices. Similarly, it is hard to believe that the mortgage originators and the investment bankers didn’t know that the products they were creating, purchasing, and repackaging were toxic.

Bernie Madoff crossed the line between exaggeration and fraudulent behavior. But what about Angelo Mozilo, the former head of Countrywide Financial, the nation’s largest originator of subprime mortgages? He has been charged by the SEC with securities fraud and insider trading: He privately described the mortgages he was originating as toxic, even saying that Countrywide was “flying blind,” all while touting the strengths of his mortgage company, its prime quality mortgages using high underwriting standards. He eventually sold his Countrywide stock for nearly $140 million in profits. If he had kept the dirty secrets to himself, he might have been spared the charges; self-deception is no crime, nor is persuading others to share in that self-deception. The lesson for future financiers is simple: Don’t share your innermost doubts.

The investment bankers would like us to believe that they were deceived by the people who sold them the mortgages. But if there was deception, they were part of it: They encouraged the mortgage originators to go into the risky subprime market, because it generated the high returns they sought. It is possible that a few bankers didn’t know what they were doing, but they are guilty then of a different crime, that of misrepresentation, claiming that they knew about risk when clearly they did not.

Exaggerating the virtues of one’s wares or claiming greater competency than the evidence warrants is something that one might have expected from many businesses. Far harder to forgive is the moral depravity—the financial sector’s exploitation of poor and middle-class Americans. Our financial system discovered that there was money at the bottom of the pyramid and did everything possible to move it toward the top. We are still debating why the regulators didn’t stop this. But shouldn’t the question also have been: Didn’t those engaging in these practices have any moral compunction?

Sometimes, the financial companies (and other corporations) say that it is not up to them to make the decisions about what is right and wrong. It is up to government. So long as the government hasn’t banned the activity, a bank has every obligation to its shareholders to provide financial support for any activity from which it can obtain a good return. The predecessors to JPMorgan Chase helped finance slave purchases. Citibank had no qualms about staying in apartheid South Africa.

But consider, too, that the business community spends large amounts of money trying to create legislation that allows it to engage in nefarious practices. The financial sector worked hard to stop predatory lending laws, to gut state consumer protection laws, and to ensure that the federal government’s ever laxer standards overrode state regulators. Their ideal scenario, it seems, is to have the kind of regulation that doesn’t prevent them from doing anything, but allows them to say, in case of any problems, that they assumed everything was okay—because it was done within the law.

Securitization epitomized the process of how markets can weaken personal relationships and community. With securitization, trust has no role; the lender and the borrower have no personal relationship. Everything is anonymous, and with those whose lives are being destroyed represented as merely data, the only issues in restructuring are what is legal—what is the mortgage servicer allowed to do (see “Mortgage Shark Attack”)—and what will maximize the expected return to the owners of the securities. Enmeshed in legal tangles, both lenders and borrowers suffer. Only the lawyers win.

This crisis has exposed fissures between Wall Street and Main Street, between America’s rich and the rest of our society. Over the last two decades, incomes of most Americans have stagnated. We papered over the consequences by telling those at the bottom—and those in the middle—to continue to consume as if there had been an increase; they were encouraged to live beyond their means, by borrowing; and the bubble made it possible.

The country as a whole has been living beyond its means. There will have to be some adjustment. And someone will have to pick up the tab for the bank bailouts. With real median household income already down some 4 percent between 2000 and 2008, the brunt of the adjustment must come from those at the top who have garnered for themselves so much over the past three decades, and from the financial sector, which has imposed such high costs on the rest of society.

But the politics of this will not be easy. The financial sector is reluctant to own up to its failings. Part of moral behavior and individual responsibility is to accept blame when it is due. Yet bankers have repeatedly worked hard to shift blame to others, including to those they victimized. In today’s financial markets, almost everyone claims innocence. They were all just doing their jobs. There was individualism, but no individual responsibility.

Some have argued that we had a problem in our financial plumbing. Our pipes got clogged, and we needed federal intervention to get the markets moving again. So we called in the same plumbers who installed the plumbing—having created the mess, presumably only they knew how to straighten it out. Never mind if they overcharged us for the installation, then overcharged us for the repair. We should quietly pay the bills, and pray that they did a better job this time than last.

But it is more than a matter of unclogging a drain. The failures in our financial system are emblematic of broader failures in our economic system and our society. That there will be changes as a result of the crisis is certain. The question is, will they be in the right direction? Over the past decade, we have altered not only our institutions—encouraging ever more bigness in finance—but the very rules of capitalism. We have announced that for favored institutions there is to be little or no market discipline. We have created an ersatz capitalism, socializing losses as we privatize gains, a system with unclear rules, but with a predictable outcome: future crises, undue risk-taking at the public expense, and greater inefficiency.

It has become a cliché to observe that the Chinese characters for crisis reflect “danger” and “opportunity.” We have seen the danger. Will we seize the opportunity?

By Chris Hedges Jan 10, 2010

Corporations, which control the levers of power in government and finance, promote and empower the psychologically maimed. Those who lack the capacity for empathy and who embrace the goals of the corporation—personal power and wealth—as the highest good succeed. Those who possess moral autonomy and individuality do not. And these corporate heads, isolated from the mass of Americans by insular corporate structures and vast personal fortunes, are no more attuned to the misery, rage and pain they cause than were the courtiers and perfumed fops who populated Versailles on the eve of the French Revolution. They play their games of high finance as if the rest of us do not exist. And it is a game that will kill us.

These companies exist in a pathological world where identity and personal worth are determined solely by the perverted code of the corporation. The corporation decides who has value and who does not, who advances and who is left behind. It rewards the most compliant, craven and manipulative, and discards the losers who can’t play the game, those who do not accumulate wealth or status fast enough, or who fail to fully subsume their individuality into the corporate collective. It dominates the internal and external lives of its employees, leaving them without time for family or solitude—without time for self-reflection—and drives them into a state of perpetual nervous exhaustion. It breaks them down, especially in their early years in the firm, a period in which they are humiliated and pressured to work such long hours that many will sleep under their desks. This hazing process, one that is common at corporate newspapers where I worked, including The New York Times, eliminates from the system most of those with backbone, fortitude and dignity. 

No one thinks in groups. And this is the point. The employees who advance are vacant and supine. They are skilled drones, often possessed of a peculiar kind of analytical intelligence and drive, but morally, emotionally and creatively crippled. Their intellect is narrow and inhibited. They rely on the corporation, as they once relied on their high-priced elite universities and their SAT scores, for validation. They demand that they not be treated as individuals but as members of the great collective of Goldman Sachs or AIG or Citibank. They talk together. They exchange information. They make deals. They compromise. They debate. But they do not think. They do not create. All capacity for intuition, for unstructured thought, for questions of meaning deemed impractical or frivolous by the firm, the qualities that always precede discovery and creation, are banished, as William H. Whyte observed in his book “The Organization Man.” The iron goals of greater and greater profit, order and corporate conformity dominate their squalid belief systems. And by the time these corporate automatons are managing partners or government bureaucrats they cannot distinguish between right and wrong. They are deaf, dumb and blind to the common good.

These deeply stunted and maladjusted individuals, from Treasury Secretary Timothy Geithner to Robert Rubin to Lawrence Summers to the heads of Goldman Sachs, Morgan Stanley, J.P. Morgan Chase and Bank of America, hold the fate of the nation in their hands. They have access to trillions of taxpayer dollars and are looting the U.S. Treasury to sustain reckless speculation. The financial and corporate system alone validates them. It defines them. It must be served. This is why e-mails from the New York Fed to AIG, telling the bailed-out insurer not to make public the overpaying of Wall Street firms with taxpayer money, were sent when Geithner was in charge of the government agency. These criminals sold the public investments they knew to be trash. They used campaign contributions and lobbyists to turn elected officials into stooges and gut oversight and regulation. They took over retirement savings and pensions and wiped them out. And then they seized some $13 trillion in taxpayer money so they could lend it to us with interest. It is circular theft. This is why we will endure another catastrophic financial collapse. This is why firms like Goldman Sachs are more dangerous to the nation than al-Qaida.

“The psychology is about winning, and winning is marked by the level of compensation and bonuses and the power you have within the firm,” Nomi Prins, the author of “It Takes a Pillage” and a former managing director at Goldman Sachs, told me by phone from California. “Every investment bank is like a mini-country. The political maneuvering and the differences between individuals who run certain areas and move up the ladder of the company are not necessarily decided by a vote. They move up depending on how close they are to the person [above them]. If that person moves up they move up with them. A certain set of loyalties get created. It is an intense competition all the time. You have trading and doing deals with clients, but the result is to push people up the ladder and to make money.”

How you make money and how you climb the ladder of the corporate structure are irrelevant. Success becomes its own morality. Those who do well in this environment possess the traits often exhibited by psychopaths—superficial charm, grandiosity and self-importance, a need for constant stimulation, a penchant for lying, deception and manipulation, and the incapacity for remorse or guilt. They, like competitors on a reality television program, lie, cheat and betray to climb over those around them and advance. These demented individuals are admired and envied within the firm. They achieve heroic status. The lower-ranking employees are supposed to emulate them. And this makes Goldman Sachs and other speculative financial firms upscale lunatic asylums where the inmates wear Brooks Brothers suits and drink expensive chardonnay. Our problem is that the lunatics have been let out of the asylum. They have been empowered to cannibalize the government on behalf of the corporations that spawned them like mutant carp.

These corporations don’t make anything. They don’t produce anything. They gamble and bet and speculate. And when they lose vast sums they raid the U.S. Treasury so they can go back and do it again. Never mind that $50 trillion in global wealth was erased between September 2007 and March 2009, including $7 trillion in the U.S. stock market and $6 trillion in the housing market. Never mind that the total amount of retirement and household wealth trashed was $7.5 trillion or that we saw $2 trillion in 401(k)s and individual retirement accounts evaporate. Never mind the $1.9 trillion in traditional defined-benefit plans and the $2.6 trillion in nonpension assets that went up in smoke. Never mind the job losses, the foreclosures and the 35 percent jump in personal and small-business bankruptcies. There are bundles of new money, taken again from us, to make deals and hand out outrageous bonuses. And when these trillions run out they will come back for more until our currency becomes junk. Not that any of these people have thought this through. They are too busy focused on the pathetic, little monuments they are building to themselves and the intricacies of court intrigue.

“There are always internal conversations about taking credit for certain trades and deals,” Prins said of her time at Goldman Sachs. “It is childish, except there is so much money at stake and so much power within the firm at stake. Power in the firm allows you to make money, but it also provides a certain status that everyone looks up to and covets. There can be a period of a month or two at the end of the year where closed-door conversations occur between managers and people who work for them about compensation. In these conversations they go something like: ‘My group did that trade.’ ‘I did that trade.’ ‘No, that was my money.’ ‘No, that was my profit and loss.’ ‘That’s my client.’ ‘I know the other group said that it was their client but actually I had the relationship first.’ A lot of these petty conversations go back and forth. All of it to attain money and acquire power and influence within the firm.”

Those who advance in these institutions master the art of looking like they are doing more than they are actually doing. It does not matter who does the most. It matters who can take credit for doing the most. And that often means poaching someone else’s work. Friendship becomes a meaningless word. So does compassion. So does honesty. So does truth. By any standard comprehensible within the tradition of Western civilization these people are illiterate. They cannot recognize the vital relationship between power and morality. They have forgotten, or never knew, that moral traditions are the product of civilization. Existence, for them, boils down to one overriding imperative—me, me, me.

“The people who get the higher bonuses are not getting them because they are quietly doing whatever work they are supposed to do,” said Prins, who also ran the international analytics group at Bear Stearns in London. “They are getting that money because they are constantly able to promote themselves.”

“The environment is very insular,” Prins said. “It is all about what is happening in the firm. Who said what. Who is doing what. What did they say about you. How does it affect you. How does it affect your group. How does it affect the people above you and below you. It destroys individuality. You learn there is a certain way you are supposed to act to be successful. If you are not doing that, if you are fighting too hard to do something you believe is right, but your managers don’t want to do, you defer. Or you fight and it gets marked as a stripe against you. You don’t discuss interests that are counter to the firm’s interests or the firm’s positions.”

“You are not thinking whether it is ethical to dump a bunch of loans into the street or repackage them and re-rate them better,” she said. “You are only thinking about getting the deal done. You don’t think about how issuing certain securities or structuring certain deals will impact people [around you].”

“When you are living, competing and winning in an environment where it is all about the money and the power, it creates a dividing line between you and the rest of the world,” Prins said. “You do not bother to look over the dividing line. Your world is on your side of it and the rest of the world is on their side of it. You are not looking at people being kicked out of their homes and being foreclosed. You do not see the crying, the anger and the children in the street because [those in government] decided to give money to bail out Wall Street firms as opposed to renegotiate mortgage principals so people can continue to live their lives. You can be callous about it because it does not impact you. It is not something you notice. You might read about it. But you don’t feel it, watch it or go through it. You are detached.”

Banks are continuing to have hemorrhaging in consumer portfolios including mortgage loans, auto loans, credit card loans and other loans. Bankruptcies are endemic. Toxic assets if properly assessed would mean that many of our largest banks are insolvent. But the profits from the trading revenues and bonuses have climbed back to near-record highs. The sick mentality of the game, the one that created the first worldwide meltdown, dominates the nervous systems of our elite the way cravings overtake heroin addicts. They can’t think of anything else. They do not know how. No one goes to Wall Street to further the common good. People go to make money. And money, like power, is a potent narcotic.

“You don’t think you are doing anything wrong,” Prins said. “You are working. You are making money. You are trying to have your bosses like you and pay you. You run things by legal [the company’s legal department]. You run things by compliance. You don’t believe you are committing a crime. You are just doing what you are doing.”

“We will have another crisis,” she lamented. “I don’t know when, but it is brewing. If you don’t fundamentally change the foundation of the banking system you are piling on capital and time into something that is faulty. This does not result in decades of stability. They are banking on trading. Nothing has changed. The rest of the consumer economy is continuing to deteriorate. These losses go into banks. You gain on trading and lose on more solid practices. The foundation has not changed. The regulations are bullshit. The old assets are still crap. The new assets created off the old assets are still crap. The banks are still levering them and still doing the same practices they did before. We will have another liquidity crunch. Banks will again stop trusting their assets and each other. …  The buying of complex assets will stop, although this time more quickly. People will remember what happened before. You will have a repeat of credit constricting between financial institutions. It is already constricted on the consumer side. The banking system will use up this federal capital and then go back for more.” 

Chris Hedges, a former Middle East bureau chief of The New York Times, shared the 2002 Pulitzer Prize for Explanatory Journalism. He has written nine books, including “Empire of Illusion: The End of Literacy and the Triumph of Spectacle” (2009). His column appears on Truthdig every Monday.