As in bucks. Even the richest person hasn't gotten there yet, that I know of. Okay, they are at fractions of a trillion with their growing billions. But, China has this large of a bucket of bucks (could we use such a bucket?), reports the WSJ.
We need to consider that it's being shared mostly with a few (comparatively) there like anywhere. They have fat cats there (just like here) that got that way by influence, merit, or whatever.
Then, we need to consider the larger set (having lesser accumulations) which does not mean, necessarily, the very poor.
As, the middle people, especially on the lower ends, are stuck in the mire. The fat cats are hogging all the space in the sand box. Why? We've gone over this a few times and will continue to do so. But, it's not a simple issue.
Even Volker and Summers (look, you guys, too many from the Ivy League and with the modern financial indoctrination warp the context - look to the middle of the country, please - and state schools produce worthy peoples, to boot) are arguing about this. Like, ought GS, and those in their milieu, be reigned in, for example. The WSJ also says that CIT probably won't get help; you see, their clients are the smaller business people, perhaps fat cat strivers, but by no means amongst the dinosaurs (yes, used advisedly and will explain) of gigantic proportions.
Okay, back to the two trillion. So, that accumulation was from selling us stuff, via the role that they got under the guise of globalization, a lot of which was crap. Yes. Let me explain below.
But, first, during the same time period, Americans were losing jobs. Those that had them were swimming in deeper and deeper pools of debt. They were being led down the path to perdition while being told that consumerism (Darwin?) drove the economy. How? Well. Buy something now. Of course, use credit. That something would look good but, most likely, would fall apart (planned obsolescence) and need replacement. An eternal cycle that kept the monies flowing to the buckets/pockets of those who are really communistic at the core, that sucked the monies out of those who were on the tread mill here (not that China didn't work their people to death - actually, we exported the labor exploitation scheme to Japan, to boot - and are we ever proud of that, some of us, that is), and covered the oceans with carriers full of junk, more or less.
Ever wonder why the furniture stores, after about 10 years ago or so, didn't have anything USA made. Nope, it was prettied up junk. Of course, one could argue that one who thinks that a dining table ought to be able to last 20-30 years, oh my, is an idiot. Oh yes, buy prettied things, get half (or less) use, then throw it in the growing garbage pile.
Now, of course, that two trillion is mostly over here (is it not?) muddying up the US financial markets. Not that the fat cats care. They earn from the churning that muddies the water, no matter what.
How many in the past few months lost a lot (some everything)? And, were not some of these of a class that never expected such losses (say, the rules changed so that security holders saw their assumed value in hand vanish)? There is a lot more to tell.
Has anything really been done at the core? Nope, we have GS off running. Oodles envying their position. Thankfully, it is a new day, so things may change as needed.
As the comment to the last post mentioned, some of those who are acquiring continue to do so (one is in jail for 150 years, would that have even been seen if the administration had not been changed party-wise - think of if, Made-off still pocketing his gains, ill begottenly).
This is not a rant (well, maybe, a little full of hyperbole), by the way, as this discussion will continue with examples until the picture is clear about what might need to be done. Those in the flow now are too close, too addled trying to handle the complications, and tied too much to the rewards.
We need to step back and 'stop' as said by old WFB, Jr. And, that savings is up might be a good sign of something permanent. The WSJ also showed the star economic bloggers. Do any of those in the dismal science really know?
One could say nope, yet the function of thinking of these things is somewhat necessary. We can't go back to the agrarian. That was never fun, anyway.
But, think of how the current fat cats are not unlike the old lords who made the lives of the serfs miserable. Back then, the cardinality of the lords was small. The misery? Well, was it worse than now? The number of fat cats is larger now; their take is way much more - something like 0.01% of the people sitting on a big part of the wealth.
The fact is that we do not need as much structured finance as some would have those in the lead to believe.
Message to those in the lead. Let us get back to limited terms, gentleman and lady public servants, and this: finance can be run by people who can be non-profit in scope (no need for the silly games) and who have an impeccable (oh, what quaintness!) un-interest in money. Yes, it can be so.
08/10/2009 -- As promised, FEDaerated is here.
07/22/2009 -- We need to look at economic causes and their consequences.
07/21/2009 -- The WSJ was right. Elsewhere, someone remarked that the CIT rescue shows capitalism in action. Well, we'll go into all that in a new blog soon.
Yes, the fat cats go crying and get bailed out. Where is the talk of moral hazards nowadays?