The recent financial turmoil arising out losses in the tens of billions of dollars for those companies that decided to become predatory lender. The behavior of these corporations is no different from infectious germs that attach the immune system of the weak succeeding in the end to kill the patient.
Unlike diseases which can be fought with anti-biotic and drugs and medical facilities, the poor and the sub-prime have no where to turn to for help. Our not so great Congress especially under the Republican leadership have left consumers and citizens at the mercy of these predators whether mortgage companies, credit card companies or even lenders. Every Tom, Dick and Harry in crooked and unethical American found an alliance in members of Congress who are willing to sell their own mothers to raise money and get re-elected.
The crisis of the sub-prime mortgage is nothing new. Every few years the great brains of crooked America sit down in their corporate board room eating fancy food and traveling by private jets, and having succeeded in buying member of Congress sit down and decide who to fleece the nation again.
Over the last 20 years or so we have witnessed one financial crisis after another. First there was the crash of the stock market where the people’s fortune and life time saving went down the drain. Then came the saving and loan association where again, the saving of average citizens went down the drain in a criminal collusion between saving and loan executives and developers and the consumers and tax payers ending paying twice to save these institutions with officers getting away with tens of millions of dollars in fees and salaries, leaving the nation holding the bag.
Then came the junk bond fiasco where corporations saw their value melt down in days if not weeks while the king makers of Wall Street where making hundreds of millions of dollars in annual compensations arising out of servicing the same corporation they helped to destroy.
Of course we not mention the Internet bubble where ideas and not real products attracted billions of dollars of investors money, where the majority of investors lost and the one who made the money where the middle brokers who raised the money from investors and who gave it to the guys with the best bullshit marketing scheme.
We need not forget the telecommunications like WorldCom and the Enron’s of the nations where people saw their life saving and pension disappear over night because executives not only lied about the financial health of their companies but lied to the very people who entrusted them with managing the companies. All along the smart kids, the analyst of Wall Street where making tens of millions of dollars in annual compensation simply because they went along with the lies and appearing on television telling consumers to buy when they supposed to warn consumers of the crooks sitting behind big and fancy executives offices.
Now that American executives succeeded in fleecing the American public they are no their way by corporate jets and first class travel, on their way to the Arabian Gulf to convince wealthy executives and financial institutions to come to American and make investments. Of course I hope the Arab Gulf people will not be fooled by these sweet talking executives who succeeded in fleecing America and are on their way to fleece the world.
Beside, Arab and Gulf investors have to be weary of members of Congress and a hostile administration that are pent of freezing the funds and assets under the pre-text of fighting terrorism. The Arab investors should be leery, if the US does not start a war to make sure all the money and wealth of the Gulf disappear then the business executives will make sure they do that. Microsoft and Bechtel are of the few exceptions of good citizenship.
No doubt at one time, no one could ever match the American executives and American corporations with their very high standard of ethics and business dealings. No more. It is much safer for the Arab Gulf wealth to go to markets in the East such as Malaysia, India and China and make investment there, since there are some business ethics remaining.
Well what about investing in the Arab countries. Well one only need to see the difficulties of getting any thing going. With ministers waiting to take their unpaid shares, while local officials putting every obstacle in the way to get paid for solving the problem. The Arab countries and Arab governments need to convince investors they are in support of investment not an obstacle to it. So far, the number of governments and countries that are obstacles to investment outnumber those who created the right conditions for investment. Transparency and not much bureaucracy are solutions to inviting investment in country of course not to mention good and fair labor laws and good and skilled and not so much lazy labor and work force.
Arab governments do not share in or guarantee investor’s losses, why are they making all of the decisions as to where and when and how to manage the investments? If government bureaucrats are that smart they will not be sitting behind desks in some ministries but will be out there making things happen.