Clueless, wasn't she? Actually, Marie Atoinette wasn't the first to say it. It was an attitude ingrained within the aristocracy. To her it was just another cliche that seemed to fit the moment. It was a common attitude amongst the people who lived lives of privilege and who saw a distinction between "us" and "them". Welcome to the Revolution.

 

America was founded on a more egalitarian model (granted it lacked total equality at the start, but we are still making progress). The immigrated residents of the New World looked back with revulsion at a class structure in Europe. There were some that wanted to re-establish a monarchy, but the more inclusive model prevailed.

 

While the US is more egalitarian, we have always maintained stratifications within our populace. We've had rich and poor. We've had everything from slave to monopolistic dictator. The trend has been to limit the extremes. Extreme behaviour is rarely healthy. But the extremes exist, and can be helpful in appreciation of the magnitude of the possibilities within the borders.

 

Unfortunately, we continue the fight because our freedoms allow us to explore the edges and, occasionally, we let things go too far.

 

Some of the lessons we learned in The Depression, what got us into it, and what got us out of it, were recently cast aside in the name of deregulation. We learned those lessons through painful experience. People died on an economic battlefield before we realized that humans are an immature species and still require guidelines, rules, and laws within certain critical realms of society.

 

The elite elements of any society live within worlds of arcane language. Many of their conversations seem meaningless and frequently are, yet we are witnessing the impact of widespread ignorance of some of their recent actions. In the following discussion, if you want to remember anything, notice the dates.

 

 

This is not the smoking gun, or rather it is not the only smoking gun. This economy was shot through by cross fires shot from similar weapons. We've witnessed mass destruction on a scale that terrorists dream about. We did it to ourselves.

 

Back in 1789, the French populace eventually revolted. The aristocracy, that felt entitled to their life of privilege, were brought to earth, sometimes six feet deep, sometimes in pieces. France flung itself from one extreme to the other. They are a passionate people. But eventually they moderated and produced a commendable culture.

 

Our extremes have always been noticeable, but they haven't been this egregious since the Roaring Twenties. We have freedoms. We are encouraged to explore them. I am even an advocate for dreaming and living, but we also have a healthy tendency to pull back after we go too far. People were murdered when the French pulled down the aristocracy. Our members of our privileged class that are in the news for their schemes, bonuses, and unfettered incompetences, may not appreciate that they are being brought down in a civilized manner. I am proud that we have treated them with more justice than some think they deserve. I am worried about the remaining members, but we will always have a few. Besides, we need a few bad guys so we can identify the good guys.

 

The mindset that allowed too much deregulation is fading quickly. It holds on within mental enclaves, but the main elements of governance are returning to more sane considerations. As those rules are reinstated, the downward pressures on stocks, the chances of foreclosures, the difficulty getting loans, will all diminish. These are the low times. How does that motto go? "Buy low. Sell high."?

 

In March of 2009, members of the Senate met with the SEC to begin the process of restoring the Uptick Rule. Since March 9, several of my small stocks, which reportedly have been strongly influenced by short sellers, have climbed. (AMSC 13%, DNDN 50%, GAIA 35%, GERN 11%, MVIS 8% (but up 35% from 3/11), RSOL -1% (but up 20% from 3/11))

 

I eagerly await the day that the rules are back in place.

 

Then maybe I can celebrate with a bit of dessert.