Long-Term Capital Mismanagement

Here's one for the fact column. We knew in 1998 that hedge funds weren't hedging anything. Any hedging going on was courtesy of the free insurance American taxpayers were providing to a bunch of already fantastically wealthy people. Not a bad gig for those rich people.

We knew it because in 1998 a hedge fund imploded and the feds had to step in and ensure it didn't screw the economy up too badly. In other words, we covered their asses. Two of the fund's directors had invented the math which made derivatives markets possible.

They won a NOBEL PRIZE for it. This was as close as you could get to a controlled experiment showing that derivatives markets and hedge funds and reckless investment banking were evil and irresponsible and should have been banned or taxed into oblivion.

But that didn't happen because one of the things these rich people buy is protection, just like with the mob, protection from regulation. This is called "regulatory capture," when those supposedly being regulated buy off the regulators, fixing the game in their favor.

So we are fucked. This is why the whole world economic system nearly ceased to exist in 2008 and why the pathetic re-regulation enacted after that mess is being attacked and repealed by Republicans who are characteristically on their knees before rich people.

This is not government, let alone inclusive, democratic government, but organized criminal activity and thuggery. It's an insult to anyone who ever gave a shit about anything. Those rich people don't. It's all just barbarism made up to look civilized, hoping no one notices.

Typically, Thomas Frank expressed something essential about this when reflecting on the death of Harold Ramis, one of the writers of ANIMAL HOUSE. Recall when certain persons borrowed a Cadillac in that movie and returned it looking a lot like that '08 economy.

Their defense? How could you be stupid enough to entrust us with something nice you actually care about? Those are the people running everything. It's Bluto-land. I must be in a bad mood but this pisses me off. I used to be proud to be an American, when I was younger.

But the America I was proud to be a part of doesn't exist anymore. We threw it away for nothing. NOTHING! Out of carelessness and distraction. We are the loser generation running through its inheritance. Future generations will despise us. What a waste.