Losing Faith: MF Global and Kodak (January 9, 2012)
. . .
K “With each passing day, the American dream is being stolen from more and more proverbial hard-working and law-abiding Americans. When enough ordinary Americans lose their few investments, there will not be enough Americans who are invested in America.”
J “MF Global and Jon Corzine stole money and did the American thing. They fraudulently filed Chapter 7 of Title 11, the Bankruptcy Code, as a securities dealer rather than a commodities broker to provide powerful creditors access to the company’s cash before its ordinary citizen clients.”
K “The picture at Kodak is not pretty. The retirees will discover that the pensions they worked a lifetime to build are vaporized or at least reduced in a moment via Section 365 of Title 11. Even the Bankruptcy Code is economically and morally bankrupt.”
J “And distorted and prostituted at every opportunity by bankruptcy lawyers and judges. For so many other ordinary Americans, their house is a cage, a prison and a leg-hold trap. The owners are drowning and can neither fight nor flee, neither tread water nor swim away. Housing prices still must drop substantially to achieve market clearing prices.”
K “If everyone acknowledged the real market value of houses, the house of cards would collapse. Big Banks and most homeowners would be forced to admit that everyone is hopelessly insolvent. Local governments would not be able to raise enough tax revenue unless they raised the mill rate to a crippling percentage of purported market value. The only way for the Republic to survive the day is to nourish a collective national delusion that everything really is alright.”
J “Is it better to nourish a collective national delusion?”
. . .
Bumper sticker of the week:
When you ain’t got nothin’, you ain’t got nothin’ to lose.