The Coming Age of Uncertainty
The election has taken a dramatic turn over the last few weeks that no one foresaw a year ago and no one knows how it will end. Any pundit, commentator or columnist who says they know who will be the next President is either a fool or a partisan.
And as Lincoln once said, “Better to be silent and be thought a fool, than open your mouth and remove all doubt.” So I will take his counsel and not make a prediction on who will win in November.
However there is one thing of which I am more certain. America is entering a new age—the Age of Uncertainty. This new era has been coming for a long time and its roots run deep.
The very cornerstones of the American system that have sustained this nation through good times and bad are being challenged as never before and some will disappear forever. Financial institutions that have been around for many years have already disappeared and more are likely to follow. The media giants of the last century, the newspapers, are in serious trouble challenged by the internet, theblogosphere and a rapidly changing media environment.
No Wonder the $700 Billion Bailout Didn’t Pass
I’m no rocket scientist…just a political and PR hack. But, the massive taxpayer-funded bailout of Wall Street has been woefully misbranded. So poorly, in fact, that unless some heavy lifting is done, and soon, I don’t know when any legislation will pass. Imagining a stock market below 10,000 is no longer a nightmare, but a reality.
Look at it this way: why would anyone – Main Street America or Members of Congress – support a piece of legislation called a “bailout,” particularly one that is $700 billion?
To begin, bailout is a pejorative term. It’s uncomplimentary and highly negative. While the term may be accurate in describing the federal government’s financial assistance to a grossly irresponsible Wall Street, someone was clearly asleep at the switch when it came to positioning this piece of legislation.
Time for a Real Solution to the Financial Crisis
OK – we get it. The financial bailout program, a.k.a the Emergency Economic Stabilization Act of 2008, didn’t pass muster with our esteemed members of Congress this week. The President’s plan didn’t give our elected leaders – or most Americans – the confidence that it will get our nation’s financial house back in order. We understand. But, sadly, that still leaves us one more day in the red – and all the while, small business owners and our communities continue to suffer.
The many California small business owners that I have spoken to – and countless others throughout the nation – aren’t half as worried about Wall Street as they are about Main Street. They’re extremely angry and frustrated with what has taken place – and they have every right to be. After all, small business men and women – and the people they employ – did not create the financial mess on Wall Street.
While small business owners were doing what they do best – turning ideas into entrepreneurial opportunities, jobs and economic development for their communities -scores of greedy, negligent CEOs within the financial community were taking reckless risks and benefiting financially.
Residency and the nature of voting
I’m visiting Switzerland this week, touring the country with other journalists interested in direct democracy and speaking at a global conference on ballot initiatives and referenda. Here’s a dispatch from the road:
Over a bratwurst lunch Monday in an Alpine mountain pass, Sustenpass, I had an interesting back-and-forth with Bruno Kaufmann, the Swiss-Swedish journalist who is president of the Initiative & Referendum Institute Europe. The subject? Residency and the nature of voting.
Bruno was born Swiss, and remains a citizen. In fact, he’s considered a citizen in two different Swiss municipalities to which he and his family have ties. But Bruno lives with his wife and children in Sweden. He votes in all three places (though he only gets a Swiss federal ballot in one of the two Swiss towns). Shocked? This is perfectly legal, since citizenship here is granted locally, not federally.
Housing: Not at the bottom yet
Amid the dismal news of financial markets, a new report on the housing sector provides no relief. The closely-watched Case-Shiller index reports that homes in Californian metro areas are still rapidly losing value. Year-over-year changes in the index for Los Angeles, San Diego and San Francisco were -26.2%, -25% and -24.8%, respectively, with index declines from June to July at -1.6%, -1.8% and -1.8%, respectively.
California did not suffer the worst performance nationally; that anti-distinction went to Las Vegas, Phoenix and Miami. Seeking signs of good news – but finding few – the chairman of the S&P index committee, David M. Blitzer, said, "There are signs of a slow down in the rate of decline across metro areas, but no evidence of a bottom."