Integrated Man

Capitalist Papers 4 - Eulogy for the Consumer - TEOTWAWKI

W got it half right in his photo op with the finance chiefs of the G7 on 10/11 when he said: "That which affects Wall Street affects Main Street as well."

The other side of that coin is: "That which affects Main Street affects Wall Street as well."  The Capitalist Catechism recognizes this in theory ("The customer comes first") but Capitalism's most ardent acolytes appear to have lost sight of this verity, ensconced in their gated communities or C-suites elevated above the street-level din.

The truth of these two statements can be found in the events leading up to the current crash in the price of oil.  Let's review:

Shock and Awe, The Sequel

Shock and Awe, Baby.  Shock and Awe.

It looks and feels a lot different when you're near the blast zone: your home, your job, your family.

I've been anticipating this moment since 1995, and yet now that it's here, I'm somewhat surprised by its timing and ferocity.  It's not like we couldn't see it coming.  We've been warned for years.

I cite 1995 as a point in time when we were staggering out of the financial wreckage of the Reagan years, and surveying the future.  My expectation was not of an immediate and universal implosion, but a long, steady slide into third world status, aided and abetted by serial failures in leadership.

Approximately one year ago, I attended a presentation of the Fiscal Wake-up Tour, conducted by David Walker, then Comptroller General of the Government Accountability Office (GAO), and a complement of economic policy wonks from institutions as diverse as The Heritage Foundation and the Brookings Institution.  They came to the University of Hartford to present a consensus view of our economic future if current policies and leadership did not change.  They painted a bleak picture, but one that was still some time in the future, though its seeds were already firmly planted and germinating.