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Sunday, August 25, 2013

1828 - AN ENDING

I can imagine what it was like to wake up every morning as a slave. Can you? Each dawn mocked you with a false promise of hope. Every evening, your future died again in darkness. Should your gaze fall upon your children you could not help but wonder if this day they would be sold away, because “masa'” lost a bet, or wanted to buy his child a present. Modern apologists for slavery may want to believe beatings were uncommon. But we know from personal letters by her master that for 30 years a woman named Betty was Rachel Jackson's personal slave, and that in the General's words, she “must be ruled with the cowhide” - meaning she was periodically whipped. What kind of a woman was this white slave master, Rachel Jackson, who could live every day with an intimate, and then coldly countenance her being beating?
On November 3, 1813, militia under General Andrew Jackson attacked the Creek Indian village of Talulshatche, and in the words of participant David Crockett, “We shot them down like dogs.” A child of eight months was found alive in the burning village, and was delivered to the General, evidently as a trophy. But the orphaned Jackson felt what he called “an unusual sympathy” for the orphaned child. Andrew sent the baby to his home, instructing Rachel, “I...want him well taken care of, (as) he may have been given to me for some valuable purpose.”
He was given the name of Lyncoya and raised in the main house at the Hermitage, along with Jackson's nephew, Andrew Jackson, Jr. He was the closest thing to her own child Rachel Jackson would ever have. At the age of five Lyncoya made himself a bow and arrows, and in full war paint would descend, issuing high pitched battle screams without warning on unwary visitors. At eight he began attending a local school, but rebelled, and ran away several times. His third year Lyncoya began to apply himself, and showed an aptitude for mechanical devices. He also began to spend much of his time alone. His academic improvements were so great that General Jackson began to think about sending his adopted son to West Point. But it was not to be.
It seems likely that after the General's loss in the Presidential election of 1824, the boy was seen as a political liability: Perhaps. But for whatever reason Lyncoya Jackson never applied to the military academy. Instead, in 1827, he became an indentured servant to a saddle maker in Nashville, Tennessee. For a child with understandable abandonment issues, his first time away from the only security he knew must have been stressful. The next winter Lyconia came down with a cold, which settled in his lungs. He told his employer he wanted to “go home” to the Hermitage (above). That winter and spring Rachel nursed him and was often seen with the 16 year old in her carriage, seeing he got fresh air. But the boy died on June 17, 1827. He was buried somewhere on the grounds of the Hermitage, in an unmarked grave. Perhaps his resting place would have been remembered if his adoptive mother, Rachel, had lived.
On the morning of Wednesday, December 17th,  Rachel Jackson (above) was overseeing the slaves packing up her life for the move to Washington, when she suddenly issued a “horrible shriek” and grabbed at her heart. A slave woman known only as Old Hanna rushed to Rachel's side and found her struggling for breath. Hanna lowered her mistress into a chair, and began to desperately rub Rachel's side “till she was black and blue”. The General was sent for, and he sent for the family doctor. For the next three days and nights Andrew never left her side.
On the third day Rachel seemed to recover, and she urged Andrew to go to bed and get some sleep. Five minutes after he left her room, the slaves lifted Rachel up while they changed the sheets. And while sitting in a chair, in the arms of Old Hanna, Rachel Jackson suffered another heart attack. She issued a long, loud cry, followed by “a rattling in her throat”, and died in the arms of a slave, December 22, 1828.
It is an insight into generations of slave masters and mistress in the antebellum south, that their first human touch in their life was usually the rough working hands of slave women, and their last conscious touch with humanity was in the exact same way. They had no control over that first contact. But they did have control over the last.
Rachel was buried in the gown she had made for the inaugural ball. And on her tombstone, Andrew had caved the words, “A being so gentle and so virtuous slander might wound, but could not dishonor.”
Even in the words on his wife's memorial, Andrew Jackson managed to bury his own pain, beneath his hatred for those he held responsible. Many historians have suggested that Jackson's  anger over Rachel's death changed the man.  He wrote, “I can and do forgive all my enemies. But those vile wretches who have slandered her must look to God for mercy.” But Jackson was a hater long before he ever met Rachel. He was even a hater before his mother died while tending to others, rather than her own son. It almost seems Andrew Jackson was born hating.
On March 4, 1829, Andrew Jackson became President.  In a bit of stage drama, President. John Quincy Adams did not attend the ceremony, as Jackson had refused to visit him in the White House, despite having arrived in Washington days earlier. And so began the Presidency of Andrew Jackson: angry.  Henry Clay compared Jackson's administration to a tornado, destroying everything in his path. Well, not everything. When he left the White House eight years later, Andrew Jackson said two things of real import. One was purely personal, the other purely public. When asked if there was anything he regretted about his time as President, he admitted to two, “That I have not shot Henry Clay or hanged John C. Calhoun.”
But in his farewell address to the nation in December of 1837, the original small government revolutionary, warned the American public, “...unless you become more watchful...and check this spirit of monopoly and thirst for exclusive privileges, you will in the end find that the most important powers of Government have been given...away, and the control over your dearest interests has passed into the hands of these corporations.” That remark proved that whatever his personal failings, Andrew Jackson was ideologically a lot closer to Henry Clay than he would have dared to admit.
And closer to Johnny Q, as well. Three months after Jackson took the oath of office, at about one on the afternoon of June 8, 1829, in Providence, Rhode Island, John Quincy Adam's 28 year old eldest son, the handsome George Washington Adams (above), boarded the double wheeled steam ship, Benjamin Franklin. 
While Captain Eliuh S. Bunker guided the 144 foot long, 419 ton double deck packet boat down Narraganset Bay, the retired two term Congressman remained in his cabin, complaining of illness. As the sun set the Franklin slipped passed Block Island and entered Long Island Sound. They missed George in the forward bar that night, as he was a regular on every trip between the family home south of Boston, and New York City.
George did not leave his cabin until just about two in the morning of June 9, and was seen walking on the open deck wearing a hat and cloak. He was heard pacing for some little time, and then somewhere in the lonely dark, George lost his way. At about four in the morning,his outer garments were found lying on the deck. If he left a note of explanation, it was not found. Four days later his corpse washed ashore on Long Island. To compare the grief that now befell the John Quincy and Louisa Adams, against that felt earlier by Andrew and Rachel Jackson is pointless, and yet to the point. One of the things that binds all humans together is grief and its companion, love. We dream of the one, knowing it never arrives alone. It is our commonality, our shared heritage, which, it seems, we spend a lifetime denying.
And thus ended the campaign of 1828.
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Friday, August 23, 2013

PERVERSION FOR PROFIT


“If pro is the opposite of con, what is the opposite of Congress?”
Will Rogers
I find it curious that Charlie Humphrey Keating Jr (above) spent his adult life crusading against pornography, which he called a “Perversion for Profit”. At the same time he saw no perversion in profiting from duping naive investors, even telling his sales agents, “...the weak, meek and ignorant are always good targets.” Charlie did not invent hypocrisy, nor the investment scam, nor even political graft. But when asked if he had bought five U.S. Senators, Charlie responded forcefully, “I certainly hope so.” It was Charlie's sociopathic self-serving arrogance which made him famously wealthy and infamously despised. And then Charlie got his hands on a bank.
“A holding company is a thing where you hand an accomplice the goods while the policeman searches you.”
Will Rogers
Once upon a time in America there were two kinds of banks, commercial banks, with few restrictions on their investments, and “Savings and Loans”. Federal regulations kept S&L's the dull, cautious bedrock of private home ownership. But even real estate suffers the boom and bust of capitalism, better known as the “business cycle”. So politicians, following an ideology of greed, created the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980, which among other things, lifted the limit S&L's were allowed to invest in things other than homes. In the decade after, S&L's went from 53% of their money being in home loans, to less than 30%. Seeking profit bankers then invented the Certificate of Deposit, or CD's, which allowed them to pay higher interest rates and compete with commercial banks for investors. But paying higher interest rates meant each new customer also cost more. In the world of academic economics this is known as an “asset-liability mismatch”. In Charlie Keating's world this was known as a business opportunity.
“Don't gamble. Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.”
Will Rogers
Charlie had arrived in Phoenix, Arizona  (above) in 1976, having been chased out of Cincinnati, Ohio by the Federal Securities and Exchange Commission. Once in town he proceeded to duplicate the behavior which had gotten him into trouble in Ohio, metamorphosing a faltering home construction company into American Continental Corporation, a holding company with maze of 54 divisions (and a few secret overseas operations), $6 billion in assets, 2,500 employees and a couple of corporate jets. When federal regulators started sniffing around Charlie even got economics guru Alan Greenspan to write him a letter of recommendation. Forbes Magazine, although impressed with Charlie's explosive growth, noted, “It seems almost impossible to find anyone who actually likes Charlie Keating.” His own brother admitted that Charlie was impatient and aggressive - but he left out, greedy. And then in 1980, Ronald Reagan won the White House, and geed became “good”, and deregulation, such as DIDMCA, became the mantra of the day. In 1984, Charlie used American Continental to buy Lincoln Savings Bank of California, for $51 million. He fired the management wholesale, and converted it into his personal bank.
“Big business don’t go broke any more. The minute it looks bad for them, they combine with something else and issue more stock.”
Will Rogers
Three years later an audit by three investigators for the San Francisco office of the Federal Home Loan Banks Board found that Lincoln had unreported losses of $135 million, and had exceeded the new looser limit on risky investments by $600 million. But what Charlie had learned from his first run-in with financial regulators back in Ohio was that it paid to have friends in high places. He had made over $1 million in political contributions to five U.S. Senators – Alan Cranston (D-Ca), Dennis DeConcini (D-Az), John McCain (R-Az), John Glenn (D-Ohio) and Donald Riegle (D-Michigan). Charlie now insisted that his “Keating Five” have a joint sit down with the three investigators from the FHLBB.
“Ancient Rome declined because it had a Senate. Now, what's going to happen to us, with both a House and a Senate?”
Will Rogers
On Thursday, April 9, 1987, the investigators were flown to Washington to be intimidated by the five senators in person. DeConcini explained that “Our friend at Lincoln...is a big employer and important to the local economy.” Former Astronaut and former Marine Senator John Glenn had little patience for such niceties. “To be blunt”, he told the bureaucrats,. “You should charge them (Lincoln Savings) or get off their backs.” The regulators worked up the courage to explain that it appeared money was being siphoned out of Lincoln to fuel false profits at American Continental. That converted their audit into a criminal investigation. The Senators backed off and rushed to tell Charlie.
“There ought to be one day - just one - when there is open season on senators.”
Will Rogers
Charlie was not happy "his" senators had not shut down the investigation. . He even called Senator John McCain a “whimp” to his face, and went looking for politicians more willing to do his bidding. When the San Francisco regulators persisted in recommending that Lincoln Savings be seized, the Reagan administration appointed a new head of the FHLBB, who forgave Lincoln for any past violations and started a brand new audit, this time run from Washington, D.C., where it could be controlled.  Charlie always said if they just relaxed the rules, the Savings and Loan industry could be “the biggest moneymaker in the world.”
“A lobbyist is a person that is supposed to help a politician make up his mind—not only help him but pay him.”
Will Rogers
It was at this point that the tellers at Lincoln Savings were ordered to begin pushing their customers to switch their savings from insured CD's to the uninsured American Continental bonds. Twenty -three thousand eventually fell for this sales pitch. Thanks to the delay in moving against him, Charlie had now bypassed the bank entirely. He was siphoning cash directly out of the customers' pockets into his. Federal Deposit Insurance Corporation chairman Seidman would later call this “one of the most heartless and cruel frauds in modern memory.”
“The short memories of the American voters is what keeps our politicians in office.”
Will Rogers
By December of 1988, even the bought politicians had become convinced Charlie was a fraudster. In January they finally ordered him to stop transferring money out of Lincoln savings. Three months later, both American Continental and Lincoln Savings and Loan went bankrupt, and those 23,000 dupes, who had trusted the tellers and managers at their neighborhood bank, lost their life savings by buying $288 million in uninsured bonds. Among the many suicides this crime produced, was that of Anthony Elliott, who slit his wrists after losing his life savings - $200,000 – to feed Charlie's ego. Anthony's Thanksgiving Day 1990 note asked, “My government is supposed to serve and protect, but who?" He then answered himself, writing, "Those who can gather the most savings from retired people. . . . It takes billions to fill the pockets of spendocrats”.
“I tell you folks, all politics is applesauce.”
Will Rogers
The FDIC had to shell out $3.4 billion to cover the insured part of Charlie's looting of Lincoln Savings. Finally, in December of 1991, the state of California convicted Charlie of 17 counts of fraud, racketeering, and conspiracy. In January 1993, the feds convicted him of 73 counts of fraud, racketeering and conspiracy. In 1994 the Resolution Trust Corporation, which had been created to clean up the Reagan deregulation mess, won the largest judgement against a private person in American history - $4.3 billion, against Charlie Keating. Still, somehow, after serving just 4 ½ years in jail, Charlie Keating was released, free and clear. He now lives with his daughter in Phoenix, Arizona, maintaining to this day that he was a political prisoner, and if the government had just left him alone, today all those investors, even Anthony Elliot, would be rich.
“There are three kinds of men. The ones that learn by readin’. The few who learn by observation. The rest of them have to pee on the electric fence for themselves.”
Will Rogers
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Wednesday, August 21, 2013

ALL ABOUT ME

I am a reluctant member of the “me” generation. As such I foresee a time in the not too distant future, when some moral adolescents will argue there is a need for a college course entitled “The History of Men”, to fill the yawning gap between what men have achieved and the scant notice they have received for it. How many of you, dear readers, realize it was a man who invented the tooth brush? The suppository? The zircon diamond? Men have labored too long in the shadows of history. In fact, we should probably redefine the entire field to some non-feminist dominated title, like, say, “His Story”. And once we have corrected this idiotic “poor me” issue, we can move on to other idiotic poor me issues like “The oppression of Christians in modern America”.
One evening in 1775 Samuel Johnson was quoted as saying, “Patriotism is the last refuge of a scoundrel”, but the greater truth is “I am the victim ” is the first refuge of every jackass caught with his hand in somebody else's cookie jar. It ain't evil to feel sorry for yourself. It's human. We all do when caught by our own hypocrisy. We've been doing it for two or three million years, and we ain't likely to change now. But, as the famous social critic Anonymous once put it, “He who smell it, dealt it.” Words to live by.
Yes, history is a sexist term, because most historians have traditionally been men. You can't blame men for that. Well, okay, you can. But arrogance is a human condition suffered by both sexes and all races, and all religions. Focusing on the arrogance of Caucasian males seems a limited field of study – at least to this Caucasian male. And who can say how the next generation will define sexism, when I'm not really certain how this one does? Is a man giving up his seat on a bus to a woman, a sexist? How about a man not giving up his seat to a woman? Seriously, what is the rule? And if it is written down somewhere, was it written by a woman, because if it was I think that raises the issue of bias.   Or is it sexist of me to even suggest that?
I could spend the next eight or nine hundred words arguing this issue, squeezing most of the jokes out of it in the process. But frankly, its one of those messy social issues that doesn't really have a solution. It is what you call situational. If the woman is pregnant, or old, or looks tied, you should give up your seat. If the man is old or tired or pregnant, he should keep it. Men and the women are entitled to their own opinions about what is the decent and fair thing to do. Face it - the best that your generation can do is to stumble on, knowing you are making the same stupid mistakes my generation made, and our ancestors made, men and women, black, white, yellow and red, rich and poor, all the way back up the trees. There is enough blame to go around. It is best to remember that to say “People are just people” is not a compliment, an excuse nor even a conclusion. It is conundrum
Take religion: please. When we talk about religion, I think we are rarely actually talking about religion. It can be argued (I might say obvious) that true Christianity is incompatible with true capitalism. In fact to some degree all religion was invented as a response to the selfish short sighted greed of a true capitalist in full hoarding behavior. I'm sure religious fanatics in Ephesus threw the money changers out of the Temple of Artemis at least once or twice. And I'm sure they were arrested for it. Because that's why they did it – to get arrested. Its why the anti-abortion protesters crowd outside the clinics, today. And its why, if the police don't arrest a few now and then, they start shooting the doctors and nurses. They are seeking to provoke a response. It's why the Westboro Church in Topeka , Kansas demonstrates against homosexuals at the funerals of straight veterans. The publicity is the point of any public act. And public acts are rarely religious acts, even ones like anti-abortion protests.
Can you image how ticked off Jesus of Nazareth was when the Jewish cops did not arrest him after his monetary protest in the temple in Jerusalem? He wasn't trying to tick off the Romans. He was trying to get a response from the Jewish leadership. And if Jesus was a man and not God himself, then what he did may have have evolved over time, if he had been given any, but his motivations for doing it, would not have. Of course, if Jesus was not a man, but a God, then neither his motivations nor his acts themselves would evolve. And this is why I believe in evolution – because a universe without evolution never has a chance of getting better. And that is the end of hope.
We came down out of the trees two or three million years ago with a single set of emotional reactions to stimuli. The stimuli have change somewhat over the millennium, but we have not displayed any new responses to them. Not a one. Take Capitalism, please. I see it as a self fulfilling prophecy of a future shortage. As any first year economics student will tell you, hoarding is how you create a shortage. I may be hungry tomorrow, which is why I am hoarding today. But hording is only possible during periods of bounty. You can't hoard what you don't have. And bringing home other people's trash (or their money) and piling it up in your living room or your stock portfolio is how you become a hoarder. To put it another way, wealth to a capitalist is a form of comfort food, and if allowed to remain untreated, it spreads. A society controlled by and for hedge fund managers and bankers will become morbidly and morally obese.
This is why the true capitalist is sycophantic with a true sociopath. Sociopaths have feelings. But their feelings are always about themselves. And capitalists have a morality, but theirs must always show a profit. Any morality that is always profitable is usually false, because if it doesn’t cost you anything, you will support anything. It's like believing in free love when you are 18. You have plenty of hormones and energy, but no money. Of course you believe in free love. But when you get older and develop arthritis, free love becomes more of an obligation. Show me a forty-five year old committed to free love and I will show you a man either recently or about to be divorced.
And that is why a billionaire is, on the face of it, a bad thing. At that level of wealth, a million dollars to buy a few politicians is spare change. And since politicians can then make it legal for the billionaire to make another billion while stopping their competitors, spending a million to collect a billion is a thousand percent profit. And it suggests an addendum to John Action's phrase, "Power tends to corrupt, and absolute power corrupts absolutely.” Lord Action added the sentence, “Great men are almost always bad men.”, which I agree with except, for Gandhi, and Jesus and Superman. But my addendum would be, “Greed makes you stupid.” And following the commutative  rules of social algebra, the greedier you are, the dumber you are, the fatter you are.
To a food addict there are never enough donuts. I know this is true as I have never had my fill of donuts. And to a wealth addict, there is never enough money in the world. Ask Mitt Romney, or the Koch brothers about this one. Knowing this, con men are constantly inventing new forms of money to tempt the money addicts, be it the futures market, the derivatives market or the “bitcoin”, or are as I like to call it the “Bite coin”, as in a fish biting on the hook. It's a fraud. Everyone knows it's a fraud. But you “bite” because the worm wiggling before your eyes looks so juicy and easy to swallow.
We have swallowed these hooks about once every decade since Ronald Reagan was elected President, producing one disaster after another, each worse than the one before - the savings and loan disaster in the 1980's, the dot com disaster in the 1990's, and the mortgage disaster in the 2000's. And my sense is we are right now swallowing another one. It turns out Karl Marx was right. Capitalism will bury itself, in donuts or bitcoins or derivatives or junk mortgages, or some other stupid thing, until the capitalists have all the money in the world and there is nothing left to buy. Which is, of course, the end of capitalism.
Now, that clashes with the Puritan concept called predestination, which held that God must love the wealthy, because he makes them wealthy, and in the modern context, the rich get richer because they know something you and I don't. Billionaires are the new Gnostics. They are smarter than us. We should follow their advice. But, of course, no true capitalist is going to tell us how to get rich, because they think of money as “their” money. That is how they got rich, by not sharing their money. That is how they stay rich. Following the advice of a true capitalist is like getting directions for an ocean voyage from a shark. The path they suggest invariably leads directly to their front door, and gets there just about lunch time.
That is why the journey of life never arrives at its destination because each generation changes the destination. Today we get directions from the shark, and tomorrow, if we are not eaten by the shark, from the minnow, until it grows big enough to eat us. The young (little fish) are optimistic, the greedy and selfish (big fish) are successful, the stupid (crabs) are violent and the old (walruses) are bitter. And most of those creatures reside inside each and every one of us. That's the way it is, folks. That's the way it has always been. As Pogo put it, “We have met the enemy, and he is us.” Words to live by.
But for some dumb reason, we keep trying for “better”, to form a “more perfect union”: Because we keep being born, because of the constant need for optimists to make the world function. Retirement and retreat behind monastery walls or gated communities is not an indicator of a healthy or a wealthy society, as has been amply proven by the Dark Ages and Moa Zedong's Great Leap Forward, and early 21st century Florida. It is evidence of a culture that has turned into a cul de sac. We can't back up, so the only escape is to either go forward very, very fast, to smash through the backyard fence (a revolution), or slowly turn around and go back the way you came, but keep going forward. Those have always been and will always be our only choices.
What I am suggesting is that we stop refusing to fix anything until we cab fix everything in the entire world. That is so dumb it is ideological. And ideology always fails because everything always fails eventually, a reality that ideology was invented to deny. I am suggesting that we concentrate on just patching things up, plugging the dike, rather than trying to drain the ocean. I think the Bible even said something about this, lighting a candle instead of cursing somebody or something. Words to live by. Let the next generation do their own damn patching. What, are they too good to get their hands dirty?  It will give them something to do. Idle hands are the Devil's whatever, you know. Words to live by. It will give the lazy unborn punks some purpose to their lives. All you have to do is leave the world a little screwed up. We don't even have to tell them we are doing for their own good.
 
Listen: to insist on fixing the whole world in one fell swoop is an act of selfishness. And I think the “Me” generation has been selfish enough, don't you?
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