(KPLR) – Monday’s Jacology, Charles Jaco has a Labor Day edition, to point out the irony of the holiday.
Sometimes I get the feeling that what a lot of people really mean when they talk about today's holiday is, happy Labor Day. Suckers. All of us who work for a living know what's happened over the past few years. Wages have been frozen or have dropped. 401K's and pensions have been reduced or eliminated. Millions of jobs have vanished. In fact, things began to crumble almost exactly four years ago.
Exactly four years ago today, Governor Sarah Palin made her debut at the GOP national convention. But amid all the distractions about mama grizzlies and hockey moms and creeping socialism, the big money people behind the scenes were set to begin pulling the plug on the middle class. Remember, real wages adjusted for inflation had been dropping for decades. So to keep up, the middle class starting using it’s homes like ATM's, refinancing and borrowing against the escalating value of the homes.
So on September 7th four years ago, the federal government took over Freddie Mac and Fannie Mae, which between them guaranteed about half the country's mortgages. On September 14th, Bank of America took over Merrill Lynch. The next day, September 15th the Lehman Brothers firm collapsed. September 16th. Bond ratings for international insurance giant AIG were downgraded. There was a run on money market funds and companies suddenly could no longer borrow.
September 17th. The feds loan AIG 85 billion dollars. September 18th. Fed Chairman Ben Bernanke meets with top lawmakers over a 700 billion dollar bail out of banks with bad assets. Said Bernanke, if we don’t do this, we may not have an economy on Monday. And that's how this all got rolling. And it was only four years ago.
The bottom line is that huge investment firms and banks were bailed out to save the economy. And it worked, but nobody bailed out American workers. So here we are. The irony of Labor Day.
I'm Charles Jaco and that's Jacology.