Against All Odds: Save the Middle Class and the American Dream

The American Dream is what is at stake for the Obama Administration, and they know it. This is the dirty, little secret that can longer be contained — it is escalating, cannot remain hidden, and may have significant political ramifications for the 2010 elections. The atrocity of the past years is this broken promise with the people, and it is deeply affecting the way they think, behave, vote and live. Moreover, it could begin to explain the groundswell response to candidate Barack Obama in 2008. The power of his words helped them believe that the dream was recoverable. He exemplified what was possible through education and hard work in his meteoric rise through American politics to the Oval Office. Further and more importantly, it also explains why we are now suffering such profound political despair reflected in the dropping poll numbers.
The middle class, for its survival, needs life to return to a semblance of “normalcy” – a time when they didn’t know how to spell the word “deficit” and didn’t have to care. They want their retirement savings back so they don’t have to work until they drop. They want a bank account that makes more then one percent interest. They want to know what their health insurance premiums will be this year and in ten. They want to know if their kids study, and if they save and sacrifice, that their lives will be better. They want their kids to get good jobs, and they want to hold onto our own jobs. And with despair and anger they realize that despite the heroic work of the Congress with this President in passing landmark legislation in all of these areas — they still are not safe. Economic ruin may still be right around the corner, and makes it hard to sleep at night.
You know we’ve all been hoodwinked and sold a bill of goods about the sanctity of the middle class in this country. It is a basic tenet of our lives, and made us different from other countries. The ranks swelled over the last decades after FDR to the present. But now for the first time since the Great Depression, the middle class is at risk of tipping over once and for all. They are not coming out of the financial, housing and environmental crises intact. Interest rates have ratcheted up on the family home, maybe there’s a balloon payment on the mortgage and its impossible to refinance under the “new” programs; savings have virtually no interest and are drying up; pensions have evaporated; health insurance premiums are basically unaffordable until 2014 if then; schools are overcrowded and on the decline; there are no jobs except in China and they don’t speak Mandarin; and unemployment is still at 9.5% — higher in key areas throughout the country. The new legislation is riddled with loopholes, as all legislation can be after laborious compromises and extensive details. What is different is that each of these loopholes is flagrantly being exploited by the banks, the credit card companies and the health insurance companies. For example, many of the unemployed cannot qualify for COBRA because their companies failed which is code for closed their doors. COBRA is not available when a company terminates their health insurance plan, and 2014 is a long way off when you need health insurance coverage now.
Frankly, this is not what the middle class signed up for. It was not part of the implicit promise made to them. As a result, they are angry (enter stage right the Tea Party to exploit this vulnerability), and depressed (evidenced in the lackluster June election voter turnout). This is a deadly combination that could seal the deal on the November elections for the big, bad guys. Yet somehow the middle class and its Democrats must rally again and rise above the collective depression (no pun intended). We cannot let the brilliant and effective message machine of the Republican Party lull them into universal amnesia — forgetting all the wrongs of the past. Remember these are the same guys (Bush and Cheney) that put the nails in the coffin cementing the potential extermination of the middle class. These same guys two weeks ago even blocked the extension of unemployment benefits while they frolicked on vacation. How could they do that to working families in this country? The extension passed the House before the break, but was filibustered in the Senate. And given all that, imagine life when we essentially give away the House because we are too depressed to vote or disorganized to keep these seats.
I will take liberal Speaker Nancy Pelosi any day over anti-choice, sanctimonious Republican Representative John Boehner as Speaker of the House. That would be a bad dream that just keeps on giving. This threat should be enough for the White House to saddle up and come out with a plan, a message (remember “hope and change”), and leadership to deliver – not the White House Press Secretary Gibbs message yesterday. David Gregory of Meet the Press has gotten so very good and Gibbs just walked into a fiasco announcing the potential lose of seats in the House. It was as bad as giving away candy instead of feeding the homeless, and maybe that’s why White House Special Advisor, David Axelrod, was so snarky with CNN’s Candy Crowley during the next hour on the Sunday morning political shows because it sure didn’t make any sense.
Snarky or not, we all know Obama and his team are awful busy with the economy, the oil spill and a few dozen Russian spies, but we need them to reach out to that disenfranchised middle class again, aka big voting block. After all, Obama is the master communicator and we know that he can do it because he has done it before to win in 2008. And now the stakes may even be higher. If we allow 40 seats in the House to go asunder and a few more in the US Senate — we can start waving bye-bye to the American Dream, the middle class, economic recovery, and maybe the Supreme Court for the next couple of decades.
Please see my Pearltree for some of the reference materials with more to come. This is a new tool to organize and share materials on the web. In full disclosure, I advise them as they build out the new features of this platform.
Middlle Class
Note, an earlier version of this article appeared this week on the Huffington Post.

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Today’s Housing Bubble Post – More News Stories

When the Bubble Bursts – Los Angeles Times,

It’s too early to say whether the slowdown will turn into a crash presaging a recession, as happened in the late 1970s and ’80s, although the economy’s other fundamentals remain healthier now than then. But it’s worth bearing in mind which homeowners are most likely to be affected by a possible downturn and which ones can lay off the antacids.
… A separate point of anxiety is the prospect of higher interest rates for buyers with adjustable-rate mortgages. The Federal Reserve recently took a break from its prolonged increasing of short-term rates, but lingering risks of inflation could push borrowing costs, and therefore adjustable mortgages, back up. Owners who can’t afford the higher payments might be forced to sell their homes at a loss.

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