Do you want a darn good money story on this historic Wall Street day? I’ve got one. But first, a disclaimer. I’m no fan of mindless religion. The church world is sick, like Wall Street. And the Bible gets twisted regularly by Church Street moguls. Nevertheless, whether one thinks the Bible is God-inspired, silly myth or a thing of mystery, there are a few capitalism stories in the book that say a lot by analogy. So, let's see what we can do with the story of Joseph. Remember, the smart guy in the upscale suit?
After escaping a frame job in Egypt, what did Joseph do but climb to the top of the financial pyramid — maybe an early Ponzi pyramid. Once there, Joseph so impressed Pharaoh that he was made ‘second of rank’ in all Egypt.’ But then came the fearful vision of seven lean years fast approaching. This economic problem called for capitalist ingenuity equal to Henry Paulson’s — the man who seems to be second in command in ‘Egyptian’ America.
So what did Joseph do? He told Pharaoh to extract ‘a fifth of the produce of the land.’ Working class Egyptians capitulated and gave their 20% tithe/tax to Egypt’s governing elites. Why not? They had been habituated in looking to Big Brother for decisions too complex for task oriented minds. And furthermore, the beer of the land was good, as were the hips of the dancing maidens.
Well, what’s next in this capitalist story? A few chapters into the hard years we read that the Egyptians came to Secretary of Wealth, Joseph, and said, “Give us food, for why should we die in your presence? For our money is gone” (Genesis 47:15, NASV). To which Joseph replies like any good self-respecting Wall Street capitalist: “Give up your livestock, and I will give you food for your livestock, since your money is gone” (ibid, 47:16). Or, in Paulson’s terms, ‘If you don’t want the world to collapse around your ears, you must let us extract a few hundred billion dollars more, and we’ll allow both you and the world to survive.’
Now, fable lovers, as the years go by the good people of Egypt are forced to sell more and more of their assets just to get seed to plant their fields. So, they fall into hardship — they live like people in a third world nation. Sound familiar?
How does the fairy tale end? Happily? For Pharaoh and his oligarchic court, yes! “So Joseph bought all the land of Egypt for Pharaoh, for every Egyptian sold his field...because the famine was severe. Thus the land became Pharaoh’s” (Genesis 47:20). And the people said, “You have saved our lives! Let us find favor...and we will be Pharaoh’s slaves” (47:25).
So, what is the meaning of the parable? Do you find it interesting that on this day when the War Lord of Money, Henry Paulson, comes bearing financial aid to the long-enduring American worker, we feel strangely honored that elites would be inclusive enough to bring in diversity so that we could bail out the system on our own dollar?
Change gears. Is there a Universal Supreme Being? You tell me. George Washington believed in “Divine Providence,” but then, what did he know! Does Divine Providence ever provide clues as to what may happen in the world? Clues for the watchful? Clues not only in religious books but everywhere?
Alas, and back to Joseph. With the passage of time, even Joseph’s family falls into slavery. After four centuries of servitude, the Egyptians and the Israelites are freed from their suffering — one by deliverance and the other by regime collapse.
Some readers will assume the Joseph story is not real. Fine. Choose your own perception of reality. But we do know that what happened on Wall Street today is real, even if myth was used to create the day’s tape. So, we can endure one more reality: The tax & inflation firm of Paulson, Bernanke, Bush, McCain and Obama. And man, do they have one a heck of a deal for you! Want to sit down and sign on? Or should we wish that the American electorate had shown enough foresight to come up with a presidential candidate like David Walker — the former U.S. Comptroller General who showed spunky statesmanship in endlessly petitioning the White House and the U.S. Congress to set the nation’s financial affairs in order.
Alas, we would rather be rescued by the cunning of the upscale man who ran Wall Street’s most successful investment bank. (For every loser there’s a winner — even if hidden behind the scenes.) I like the man and I respect his intellect; he’s a bird watcher, and I like bird watchers. But how will his policies affect your children’s future? Why not ask him to put some of his well-made millions on the negotiating table before you sit down to talk things over with him.
We don’t need the bailout: The main thing we’ve needed for weeks is a well-conceived correction of ‘mark-to-market’ rules for banks. (I explained the matter in this commentary, describing issues of transparency and money supply management, too.) The bailout is nothing more than a deceptive way of plundering the public’s lack of understanding about how financial problems are created and how they are best remedied. Nevertheless, if the problems are not fixed the right way, the bailout becomes a near necessity. How vexing! Why can’t we get policy that is benevolent toward the common good?