We Been Collateralized

Collateralized Debt Obligations are basically debt secured by debt -- truly a house of debt cards -- so they act as a multiplier. The potential for gains is increased as is the potential for losses. The value in them as a whole is that they privilege insiders. They privilege the banks themselves and the tiny cadre of people in their highest echelons. Shareholders are on the list but far enough down they might get hurt. 

The society at large derives no benefit but, as we've seen, is insuring this mess.

In other words they're not legitimate financial instruments but a scam. And should be illegal. Republicans work in the same way. There's underlying value -- their votes in Congress, for example -- but not enough to support the debt. Their 'real' responsibilities, to their constituents, the 'rule of law' and so on, are unenforceable and therefore abandoned. But the risk resides there. Constituents are screwable.

Not so wealthy donors. They get benefits at no risk. You can only lose your life once, so you shouldn't be able to borrow as though there are three or four of you. You can only lose your financial or political life once by going bankrupt or getting beat in an election. You see why these politicians cling for life to their jobs. They are underwater, having sold themselves several times over. And they are forced to lie.

They have sold out and are screwing their constituents but they have to continue to convince them they represent them when they only represent their rich donors and the whole cesspool of lobbyists, lawyers, spin meisters, Fox News hosts and so on. This is an artificial industry, dwarfing the actually productive work of the rest of the economy, and powerful enough to put the entire society at risk. 

As we learned in 2008. On the heels of which we had the deregulator's costume ball. They all came made up as makers. Job creators. Wealth creators. Benefactors, philanthropists and heroes of the free market. But they don't make anything but money for themselves and misery for the rest of us, endlessly sucking off responsible citizens. Their constituents are apparently endlessly gullible and living in a fantasy. 

We been collateralized. Republicans borrowed against the value of our lives. But they don't care. Their system filters out decency.