Riots in Eastern Europe as Crisis Bites

[Timber7]

http://www.businessweek.com/globalbiz/content/jan2009/gb20090121_794144.htm?chan=top+news_top+news+index+-+temp_global+business

On Friday (16 January), demonstrators attacked the Lithuanian parliament building in Vilnius with stones, smoke bombs, eggs and ice, breaking windows and calling on the government to resign.

There had been a huge economic boom in recent years, then all of a sudden, everything stops."

The riots are not isolated events but a wave of predictable reactions to the economic crisis, Dorothee Bohle, a political scientist at the Central European University in Budapest told this website.

[Timber7]

Okay, not Eastern Europe. This one is Iceland.


http://features.csmonitor.com/economyrebuild/2009/01/21/global-financial-crisis-overwhelms-tiny-iceland/

http://features.csmonitor.com/globalnews/2009/01/21/envious-of-obama-icelanders-hurl-yogurt-and-stage-riots-for-new-leaders/

[Mike]

The riot threads are probably going to prove prescient and important.

What happened in Iceland?

Icelandic banks ran amok with leveraged long term investments financed with short term debt.  This wasn't just local, they took their practices global!!!

The credit crisis made the Icelandic banks illiquid.  What to do?

The Icelandic government realized the banks were too big to fail.  Soooo, they were nationalized.

Should the Icelandic government have realized that these banks' obligations were too big to save?

*********
We've got a similar situation in the US.  It began with the AIG bail out; then the FANNIE & FREDDIE.  There is a consensus that these institutions are too big to fail.  There is the assumption that this United States of America is so rich and powerful that it can backstop, buy, and war against the entire world.

Wrong!  These failed entities are too big to bail out.  It is a mistake to even consider trying.

Divide the debt by the population.  Or divide it by the GDP.  I have heard numbers, like $25k/person or 3X or 4X GDP.  I know, the numbers are fluid and hard to grab.  But government leaders can not expect to obligate the citizenry for the recklessness of banks, insurers, and corporations.

These riots are actually a healthy reaction to abusive governments.   

One more thing, the journalists want to believe there should have been government oversight.  That is wrong too.  Depositors.  Little guys like me need to exercise oversight.

[Dame]

Mike, I agree, little guys like me, and lots of us, need to excercise oversight.
And, the lots of us part would be the mutually assured part.

[Mike]

http://www.nytimes.com/2009/02/16/world/europe/16russia.html?_r=1&hp

The linked article is about riots in Vladivostok.

Russia imposed a tax on imported used Japanese cars which are very popular in eastern Siberia and account for 80% of the cars there.  Car dealers organized the demonstrations to protest the tax.

Trade makes everyone better off.  Restrictions to trade hurt everyone.  But sometimes it is not so obvious...and it actually seems like a tariff might be good.  But in reality trade barriers are bad and nowhere is it so obvious as in Siberia.

Let's keep a watch for economic demonstrations across the world and post them here.

[Mike]

Mike, I agree, little guys like me, and lots of us, need to excercise oversight.
And, the lots of us part would be the mutually assured part.

Roubini, Steve Keen, and it seems, almost everyone thinks it is the governments job to "do something."

In this case, the government can't.  The world economy is contracting and the contraction is too big and fast for the governments to handle.

But even if government could, it shouldn't try to regulate and manipulate economies.

What we are talking about is 'individual responsibility and oversight.'  What can we do?

Here is a quote.  Don't feel obligated to read it.  It is really long and rambling.  I read the guy's entire post; really long!

https://www.blogger.com/comment.g?blogID=2121490237517462736&postID=926763813170955350&isPopup=true

So what can we do about it? Well, not much. Unfortunately, we are stuck on a runaway train. The problem has gone unchecked for too many years. The US/global depression is comming thanks to the 1% club. It would take a massive effort by the vast majority to prevent it. Along with a voluntary sacrifice by the rich. THATS NOT GOING TO HAPPEN. But if you believe in miracles, then spend your money as wisely as possible. Especially in middle and lower class communities. Check the Fortune 500 list and limit your support of high profit/low labor industries (Hollywood, pro sports, energy, credit, pharmaceutical, cable, satelite, internet advertising, video, and music, cell phone, high fashion, jewelry, ect.). Cancel all but one credit card for emergencies only. Call the provider and demand a lower rate. Be persistent. You may get it. If you need a cell phone, then do your homework and find the best deal on a local pre-pay. If you want home internet access, then use the least expensive provider, and share accounts whenever possible. If you need to search, then use the less popular search engines. They usually produce the same results anyway. Don’t click on any internet ad. If you need the product or service, then look up the phone number or address and contact that business directly. Don’t pay to see any blockbuster movie. Instead, wait a few months and rent the DVD from a local store or buy it USED. Then loan it to a friend or family member. If you prefer the outing, then choose a film produced by the lesser known studeos with lower paid actors. If you want to see a big name game or event, then watch it in a local bar, club, or at home on network TV. Don’t buy any high end official merchendise and don’t support the high end sponsors. If its endorsed by a big name celebrity, then don’t buy it. If you can afford a new car, then make an exception for GM, Ford, and Dodge. If they don’t increase their market share soon, then a lot more people are going to get screwed out of their pensions and/or benefits. Of course, you must know by now to avoid those big trucks and SUVs unless you truly need one for its intended purpose. Don’t be ashamed to buy a foreign car if you prefer it. Afterall, those with the most fuel efficient vehicles consume a lot less foreign oil. Which accounts for a pretty big chunk of our trade deficit. Anyway, the global economy is worth supporting to some extent. Its the obscene profit margins, trade deficits, and BS from OPEC that get us into trouble. Otherwise, the global economy would be a good thing for everyone. Just keep in mind that the big 3 are struggling and they do produce a few smaller reliable cars. Don’t frequent any high end department store or any business in a newly developed upper class community. By doing so, you make developers richer and draw support away from industrial areas and away from the middle class communities. Instead, support the local retailer and the less popular shopping centers. Especially in lower or middle class communities. If you can afford to buy a home, then do so. But go smaller and less expensive. Don’t get yourself in too deep and don’t buy into the newly developed condos or gated communities. Instead, find a modest home in a building or neighborhood at least 20 years old. If you live in one of the poorer states, then try to support its economy first and foremost. Be on the lookout for commercial brainwash plots on TV. They are written into nearly every scene of nearly every show. Most cater to network sponsors and parent companies. Especially commercial health care. In particular, high profit pharmaceuticals and excessive medical testing. DON'T FALL FOR IT. Get off the couch and take care of your body the way nature intended. There is no substitute. If you must see a doctor then DEMAND that he/she give you more than 5 minutes of their undivided attention. Otherwise, dispute their unreasonable charges. Be prepared with written questions about your condition and get them answered one at a time. If they refuse, then dispute their unreasonable charges. If they prescribe excessive medical testing and find nothing new or signifigant, then dispute their unreasonable charges. If they prescribe a pharmaceutical, then ask for a generic. Better yet, concider a change in lifestyle or simple tolerance. If they still recommend the name brand pharmaceutical, then ask about any financial ties or conflict of interest. If they get offended, then dispute their unreasonable charges and consider a new doctor. If you must drug away your sniffles, aches, and pains, then at least do your homework. Be aware of the possible side-effects ahead of time. Don't be surprised to find yourself back a week or two later feeling worse. In which case, you should dispute their unreasonable charges. If you are diagnosed with another medical condition, then ask your doctor what he/she has done to rule out those possible side-effects. Otherwise, dispute their unreasonable charges. Don't let any greedy doctor treat you like a number, make you wait an hour, or rush you out of their office. Otherwise, dispute their unreasonable charges. Don't fall for this CRAP that doctors have no choice but to over-book their time or over-charge their patients because of high overhead. ITS A LIE. YOUR DOCTOR IS MOST LIKELY A MULTI-MILLIONAIRE. So don't fall for their CRAP. Demand their undivided attention and respect. Afterall, they took an oath. Do all of the above regardless of your coverage. Don't force your employer to cover the obscene and often fraudulent charges of a corrupt health care industry. Keep your guard up when watching ANY talk show. These people are not your friends. They are paid actors hired for their ability to plug network sponsors, coorporate partners, and parent companies. Nearly every segment is about marketing some over-priced product or service. Big business is fine on occasion depending on their ethics, profit margins, and profit sharing. Do your homework. If you want to support any legitimate charity, then do so directly. Never support any celebrity foundation. They spend most of their funding on PR campaigns, exotic travel, and high end accomodations for themselves. Thats right. Filthy rich public figures have been jet-setting the world in the name of 'humanity' for years. Riding in personal jets, staying in super-exclusive resorts, and living it up in exotic locations around the world the likes of which most people could never afford even if their lives depended on it. They bring along agents, advisors, publicists, hair, make-up, wardrobe, lighting, and photo crews who are also in it for themselves. They are paid six figures for their ability to schedule, manage, document, showcase, praise, and publicize the 'good will' of said public figures and their respective industries. Every possible expense is passed of as 'incidental' or 'necessary' and billed right back to some 'foundation' named after said public figure and/or respective industry. Every possible tax deduction is claimed. Which are incredibly vague and diverse thanks to our sold-out government. Deals are cut with major networks who agree to praise the 'humanitarian' effort of said public figures and plug their latest commercial project. Others from around the world pick up the story and save these industries billions in advertising every year. Resulting in higher profits and paychecks for the 1% club. When its all said and done more wealth is transfered from poor to rich. NOT the other way around. So don't support any charity named after a living celebrity. Don't be fooled by any affiliation or inspired by any short term short sighted progress report. Instead, go to Charitywatch.org and look up a top rated charity to support your favorite cause. Its all there. For example: 'Habitat For Humanity' is a top rated charity. They operate with a low overhead, volunteer workforce, and donated materials. They have built homes for the less fortunate in nearly every city nationwide. Including New Orleans. They do so as we speak. No similar effort can match their progress hour for hour or dollar for dollar. So there is no legitimate reason to support a slower, less efficient effort represented by a filthy rich Hollywood actor who flies in on a personal jet, takes most of the credit, and makes a deal with a major network for plugs just days before the premier of his latest film or DVD release. By doing so, you support not only the effort, but also the filthy rich actor. Concentrating more wealth and dumbing down our society further in the process. Instead, support 'Habitat For Humanity'. Its not perfect. It is affiliated with some big business. However, it is MUCH more efficient, effective, and less corrupt than 'Make It Right'. The difference is profound. In general, support the little guy as much as possible and the big guy as little as possible. Keep your own greed in check. Don't play the lottery and don't invest only for profit. If you do come into a fortune, then give away the bulk of it to others who have far less. Find the courage and do it. STAY OUT OF THE 1% CLUB. Encourage others to do the same. Their standard is obscene, unjust, illogical, and immoral. There is no excuse for it. Do your part to reverse the transfer of wealth away from the rich and back to the middle and lower classes. Otherwise, there will be no economic recovery EVER. Unfortunately, there is no perfect answer. Jobs will be lost either way. Families will go cold and hungry either way. Innocent children will starve and die either way. But we need to support the largest group of workers with the most reasonable profit margins. We need to stand for a more reasonable distribution of income, bottom line wealth, and resources. We also need to support LEGITIMATE charities (Check that list at Charitywatch.org). This is our only chance to limit the severity or duration of the comming US/global depression. In the meantime, don’t listen to Bernanke, Paulson, Bartiromo, Orman, Dobbs, Kramer, Pickens, Larson, OReiley, Bruce, Inghram, or any other public figure with regard to the economy. They are all plenty smart but I swear to you that they will lie right through their rotten teeth. IT MAKES THEM RICHER. These people work for big business. The ‘experts’ they cite also work for big business. They are all motivated by their desire to accumulate more wealth. THEY WILL LIE RIGHT THROUGH THEIR ROTTEN TEETH. So don’t fall for their tricks. Instead, look at the big picture. The economic problems we face have been mounting for well over 20 years. All of them caused or aggrivated by a constant transfer of wealth from poor to rich. Soon, it will cause the first ever GLOBAL DEPRESSION. Its not brain surgery. For the mostpart, Its simple math. Like I said, you are welcome to copy this entry and run it by any professor of economics or socio-economics. If thats not good enough, then look up what Albert Einstein had to say about greed, extreme wealth, and its horrible concequences. I speak the truth. GREED KILLS. IT WILL BE OUR DOWNFALL.

[Rusty Shackelford]

Boy that's a rambling diatribe.  It's got enough truth to be interesting though.  Things like supporting your local video store are good - unless like mine, it's already closed. 

I always tell people, professional athletes and actors make a lot of money because people pay to see them.  If you didn't voluntarily pay, they wouldn't make as much.  It's perfect supply and demand.

[darkdwarf]

I always tell people, professional athletes and actors make a lot of money because people pay to see them.  If you didn't voluntarily pay, they wouldn't make as much.  It's perfect supply and demand.

Now if we could get such perfect suppy and demand for teachers...

[The Future]

Things are not that bad there yet.  This is just a preview at best.  This assessment is based on the fact they are throwing away eggs rather than eating them.