Detroit (2..)
The main of this article is compare how these Cites either
in terms of depression or recession react to
the problems of National Concern, that is how some of these
Cities were able to absorb the shocks of
disinvestment of National scale and how these Cities in the
Third Rank are Cities that may point to the
future as they best defined the American Culture. Though the
history of American Industries shift from
left of Europe to the South from the beginning, but like we
are eager to mention, that a place such as
New York is reasonably important in directing our
understanding of how foreign interest could
transform with levity economies in situ of nearly every
demand and supply. It is not strange that with
arrival of European Jews at the middle of 19th century
coincided with the up thrust of an unready
vibrant City. Yet more than New York were other places of
import such as Boston which netted at end of
that Icarus Century as much attention from immigrants as New
York. Why does it now appear that it is
New York carried the lantern for such a long time, why in
recent time, do we find the same interest
bequeathed to California and their Los Angeles, yet where
New York took advantage of immigration
capacity entering the City planning its future, some of
these States saving Chicago that was saved by the
introduction overnight lending and CBOE as perforce by
Milton Friedman and Wife.
There is nothing to learn about comparing Detroit to New
York, but there is a gap in the transition
strategy of these towns, that a City was interest in the
present value of its living and attractive vise of
segregation and violent humanity, New York is riddle of the
transforming presence of others with as
much hope and future will as guile. There is then something
to learn about the failures that accompany
the work of the Detroit born Shilling who in 2013 was among
the heroes in Economics, that few would
not wondered at the brilliance of the Auto-City in the 50s
and few would have imagined its abysmal
descent by 2000. It is not impossible to argue that the fate
of the Motor City was decided from the
beginning, that it is also eagerness that must challenge the
assumption that White flights caused the
Detroit fall. It is eagerness that moves to a limit that the
so-called flight would have served a best placed
example for those were left behind to attempt a cultural
revolution, if not in the immediate sense of the
conditions but for emphasis on education for at least the
gradual majority. These people did not also
plan for the future, that in spite of the strength which
individuals from Detroit of assorted backgrounds
are known for, there is nothing truly origin to the area
since the 1970's, that the migrants to these towns
were mainly interested in their own immediate survival.
Detroit with 18% unemployment is an economic depression.
There is no denying that Banks have a lot to
do with the crisis in these areas, not only for Debt which
pass from one Debt Collector to another but for
been able to repackage...U.S economy for Neo-Hamiltonian
transformation; (a) " A wartime income tax"
, (2) "large-scale borrowing and debt security issuance
in excess of $2.5 billion" (3) "a new national
banking system" (4) "a massive expansion of the currency
and a shift from Gold to paper money - the
famous greenbacks"
For all we know, Atlanta was the center of Americas Federal
operations and the creation of the
Hartsfield Airport which is supposedly the largest airport
in the world employed up to 30 000 persons in
1981 alone and approached a billion dollars of payment to
these workers. In essence, it took a powerful
of cooperation of the State of Georgia and the ambiance of
Jimmy Carter to make at least a demanding
expect of overnight miracle to be possible. It seems that in
other to compare the Detroit Question to the
questions of Atlanta, we may consider the transition
strategies employed by these other Mayors, and
why then and as much now, the Ghost of C.A Young still hunt
the streets of Detroit.
In numbers; both in projects and in voting blocks, and in
number; both in negative aversion of poverty
and the culture of prosperity from the economic challenges,
there is no formal estimate of the gaps
between the largely black community in Detroit and the State
of Michigan that simply would not take
part in that economy. For it seems that the rest of Michigan
has no fared any worse but from experience
of Baltimore and Maryland and neglect of the Baltimore which
has managed to barely hang in there, we
can draw the first blood from Detroit Question that perhaps
Michael Moore was not wrong, that it was
not for lack trying that Detroit has constituted a problem
that it was the greater portion of the blame
should be placed on the State which looked at Baltimore as a
town no more than what is was, a black
land economics synthesized from larger and constituted
state.
But the prove of the riddle is the knowing, and by that we
look at the failure of Young himself to
adequately train the young Black Generation of his time,
many of whom were indeed struggling but
would have done better than the current issue of ‘functional
illiteracy’. It is not to be missed that hate
that the years of separation and economic apartheid which
may have resulted from protected
economies in Michigan as from Europe created, to the end
that even Federal and State projects were
awarded to common interest others, who were set above the
sea of blacks and Indians. But again in the
year of 2013, as the instances of the problems regarding a
Black Crowd without adequate financial
institutions such as Banks and Insurance companies, there is
a recalling of the older years when finances
followed one economic pathway.
The Beginning of the Detroit Question should not be on why
the City failed but how it failed. It should
incorporate the impact of strategic starvation which the
least conscionable indigence of Michigan is
likely to discover, that it tends to pattern out the
argument that accountability is Detroit’s ultimate
problems and the problems of growing an economy goes beyond
Government spending, for sure,
International Economies or what they may call External
Economies of Scale deal a great hand. If Detroit
entertains any hopes of returning to an International
Standard, it should answer its own question
through a bifurcating of its status of Detroit as City in
Michigan to a City that account for itself of a larger
sea of World Market and not just in production possibility
but in banking and Insurance. It should be
willing to rent its economic landscape to nations outside
those of Europe. To sponsor an U.S interest in
the environment, the case of the Study of the City consider
its definition as a demand and supply within
Demand and Supply.
The drug rackets in the City and not much else in Michigan
is not by accident, poor and struggling Cities
such as Detroit is usually a pool for International Drug
money, as such the Police should not looking to
over the current problems without increasing its numbers and
without integrating the State Police. This
does not mean take over. There is no doubt that tight
credits and austerity measures which is now
applied, is designed to balance the budget, but like many
economist R. T Naylor and Joseph Stieglitz
have argued that undue austerity and lack of funding and
lending exercises, usually stymie long term
investment interest of business communities and companies or
individuals with business capacities.
They also mentioned that most government usually resort to
creation of bonds and in the place of
relieving the economy of the shortfalls of economic growth,
it creates the problem of fiscal management
and tax concessions.
Above all, we have to consider the face of U.S military in
Detroit, that the U.S military manufacturing is
relatively flat and that farm and pay role taxes gives us an
idea of a state that is still not very serious in
promoting business from within Detroit. He mentioned that
President Richard Nixon proposed “Family
Assistance plan would introduce a “negative income tax” – a
guaranteed minimum income for all.” It
would have eliminated specific disincentives to work and
made unnecessary a welfare bureaucracy to
determine eligibility and monitor compliance.”
Negative income tax faded….WPA, WIN; work incentive program,
Comprehensive Employment and
Training Act (CETA), JTPA; Job Training Participant Act,
AFDC – unemployed parents (AFDC – UP)…..
It is true that the book conditions the rest of the market
from one market, that is what is happening in
one area of the market is usually telling more than what it
is suggesting. There was no need from all
information available to the general public that the Real
Estate market such as those of New York would
ever lose value, of course, this was story from those
unfamiliar with the City. For people who lived and
dined in City for at least a very young age, New York is hot
potato that was getting brown and need to
offload. In the 80’s in the Bronx, many houses were still
lower than 90 000, and was considered
expensive. In some areas, all you needed was a dollar for a
down payment and then the show of income
for at least 6 months. It was perhaps lack of foresight that
shut many people from taking advantage of
these deals; above all, people were dying by the day and
usually in thousands by the State of New York.
It was very bad period and departures were common. But after
1992, Bronx and Brooklyn alone
recorded the highest number of murders in one year, but from
that time, effective measures were taken
to cut down the killings, many of which were drug based,
manufactured and distributed in the Bronx.
However by the turn of the 1999, most of these houses
noticed significant upsurge, there was hardly
any building within 300 thousand and unlike the 80’s were
there was job everywhere, the 90’s had
series of setbacks but the house prices were steady north
stream. It is not the 9/11 that brokered the
landscape but at least by the end of 2000, most of the Bronx
and usually expensive Brooklyn were
beyond the reach of every Americans. We might indicate the
Manhattan has a reputation of sustaining
its prices but even in the 1980s this was not the case.
Saving parts of downtown, there was hardly any
part of New York that did not offer affordable renting, in
fact Science District such 72- 96 street were
half projects from a decade or so leading to the 80’s, and
further down to the 60’s, the only part of
downtown at least from eyewitness account and from pictures
and from many of us remembered as
decaying trunks of the older cities, didn't offer the
glamour that it will inherit from the later years.
Whether the drug businesses of the 70’s or the 80’s, damaged
neighborhoods in New York will not
necessarily support fact that New York simply had as much
problem as a place in recent times such as
High Point North Carolina or were not as old and dilapidated
as Wilson Salem. But there was the
continued intrusion of immigrants and exiting of migrants
and there were those called immigrants,
usually first generation of some minority such as African or
some Indian or people who just arrived. The
silly thing about New York the buildings are not entirely
wonderful, as such places like Stuyvesant with
the old and brick houses are usually considered with taste
of architecture.
It is exuberance of the City for nothing and the fact that
the transition strategy and engines of support
for new arrivals are very present that make it possible for
people who flock the town, some glamorized
with Downtown plot their graphs for resettlement in New
York. If from practiced eyes that anyone can
take a long view at New York City, it is worth half the
actual price and going at the rate of the influx of
wealth from mainly Europe and from parts of United States,
the City hardly supports new comers as it
did before. When Harlem with all its drug and druggist
landlords and supers begin to price a small
apartment a 50% its previous prices, it is not only expected
of all asunder to check in or check out, it is a
sign that the market was experiencing an unusual volatility.
The success of ‘Irrational Exuberance’ 2000,
in New York was from the fact that people did not understand
why New York market was so hot. There
were no reasons for it; above all, the apartments were
accessible for the markets. Owners were willing
to sell to whomever and in fact, until the coming of
Bloomberg who ruined in my personal view ruined
the City, there was at least 300 thousand apartments owned
by New York City to be auctioned off.
These auctions take places every Friday at the City Hall
until Bloomberg. Whatever may be the frisson
effects for the City Real Estate, there was always the
underlining question surrounding baffling
everyone; where was the source of the money flowing into a
City that was laying-off people here and
there. The question may have spooked the interest of
Shilling and believe it, he was not the only person
writing about it and like many people he failed to connect
the rise of ETF market in Europe and the
money function of Euro to Dollars, which at the inception of
European union in 1999 and 2000, sent
initial handles from Europe into U.S in peeves of hundred
through Investment Banks, for the price of the
conversion of Europe earned investors a small intrusion into
the rich brocade of U.S Market and the
paper currency simply displaced Americans on fixed income.
Overtime, there was so money and so little
time that the myths of an ever-progressive high earn valued
market of New York will continue.
But it mainly for its real estate and not as far the job
numbers, to the point that many Americans would
not necessarily add the extra-ordinary impact of the Mighty
Chinese on New York, that the fact that
nearly half of everything consumed and displaced in New York
was linked to China. It was Chinese
entrance to World Market that shelved the no-show American
City called New York from burst at earlier
stages, such that one also accustomed to China Town before
1990, will hardly recognized the
transformation which really their making. Bloomberg gets
credit for Bowery and for repaving West Side
high way which from many years of driving through, was
possible to have picked the computerized
faults of the pavements. The road was shifting and the
contours were hardly the same. In essence,
people would have continued on the West Side without knowing
the difference like Guilliani who did
nothing. But this trite makes us you a citizen of goodwill
from New York Standard and from many New
Yorkers, Bloomberg passed high marks, but it is a sham. So
was the exuberance of its market…
Let us begin….
But from Robert Shilling, we get a sense of the changes in
the market which exceeds estimate and Time
Series, and there are estimators that give wrong figures
which they give all the time, but in spite of what
the numbers are saying, and in spite of what the indexes
were saying, if we all were making money from
the market, we are more than likely to over look at the gaps
and spreads in the prices, we are likely to
maintain the market rate. John Cassidy (2009) in his book
‘How Markets Fail’ tells us a story about this
housing bubble in New York and about the NASDAQ. That in
researching his book, that we went to see
his friend by name Richard Dallow in Long Island whose
families has been in Real Estate business since
1951 and he showed but expressed surprise that ‘…home prices
had defied the NASDAQ crash of 2000,
the economic recession of 2001, and aftermath of 9/11’, it
was not easy to link the digested breakdown
of U.S financial regulation with changes at the market
place.
If there is any link between what was happening at the
market and what was happening to the Real
Estate, it would have found time to materialize in
discouraging investment from outside. But the hot
money from International Market continued unabated and the
hot Crude oil spike which bifurcated The
Euro created problems for George Bush and there was hardly
anything Americans were able to do since
the higher the price….We are interested in the impact of
European Economy and how it finds its way
into the Americans, we are also looking at the trouble that
Americans are generally exposed when there
are short falls in the Market such as housing. But the
reserve index of high and ballooning house prices
are often a précis for larger problems elsewhere, and we
mentioned the incident of the 2008 market
expansion at the same the Feds were contracting, that the
market rates were far ahead of the estimates
and a burst was hardly avoidable.
There is very little doubt that the Great Depression as we
have been told and from sources which are
available probably arrived the Americans from overseas. In
one sense or another, the Credit and
Securities driven recessions of 2008 may started from Europe
and it was not that the money was coming
in at any point and the debts were not themselves settled on
time, but there is something about the
continues injection of Money into US through the Investment
Banks such as Lehman Brothers and Bear
Stearns and many others, that was re-invested in Asia and
particularly China. In some sense, these
wealth of nations were meant to buy a future for European
companies and Pension fund managers
funneled the reserves, and these were to be done using the
AIG as commercial vehicle which was
speeding ahead of the FANNIE MAE as SME, but then the race
towards closing a deal involves annual
flipping which was so crazy that when the frenzy entered New
Jersey neighborhood were sent to
auction block and when these houses are sold, they are
repackaged the same minute to the markets and
these people in turn, sale and repackage and then on and on.
It was not only New York and New Jersey that was experiences
these unusual interest from others, it
was something visible throughout the major cities in
America. House prices without matching
employment numbers simply took flights. In North Carolina
for instance, most areas in the region have
problem accounting for the craze of houses and real estates,
so also South Carolina. It is however in
Texas that the case was especially due to New York influx,
it also has to do with people escaping
California hot market. New Yorkers were priced out of the
market by the invasion of foreign money,
12
coming from Asia and their Government backed mutual funds,
the money was also coming from Russian
and the Bolsheviks laundered money including the most
significant cog of the investment furniture,
which Europe and Eastern Europe showing their time to
American based businesses.
But from the vintage of the economic past of American
Cities, continue from H.P Long.
New York is a concern and it is import because of the man
who created the New Deal was not from New
York, he was at some point the Governor of the State.
Majority of his commanding influence of his
administration were borrowed from New York City reformed
labor laws, especially those of Frances
Parkman and the need for government to protect the interest
of the Citizen…and at the time of the
problems that swept, country, immigrants brought the news of
the short falls in businesses from
Europe. Among these individuals were thoroughly educated PhD
holders that were literally ejected from
their villages and the rest had to find their way elsewhere
if not America. In the Americans, cultural as
well political existence did not hold enough water; the
kamikaze blowing through Washington under
Coolidge brought several new meaning to the laws of money
and the economic interest that will occupy
both continents for a long time.
President Hoover was the loudest in repealing the concession
those American economic systems was
not bullet proof, that a system can self-generate its own
shocks and its own decay, yet there was
something furlough about the new Index from Stock market
which in many ways than one chimed the
unemployment numbers. We have mentioned more than once, that
the shortfalls in Stock Market
expectations was the dagger that penetrated the jacket, but
the decline was long winded and lack of
informed numbers about the total economy and it was not
until Simon Kuznet did we begin to find the
total numbers operating across the boards with respect to
United States. According to Hoover ‘THE
DEPRESSION WAS NOT STARTED IN THE UNITED STATES’ a bold
statement in bold letters and dipped
from the routine European economy which he like the former
navy officer FDR, saw with their own eyes
that Europe was empty.
Hoover also pointed to the world war between 1914 – 18, as a
contributing factor to European debacle
and perhaps in recognition of Keynes ‘The Consequence of
Peace’ in 1919, Hoover may have also
maintained the tirades from his own informed sources about
Europe. But many experts have pointed
out that Hoover should have used his influence and his
resources at his disposal from National
Standpoint to help the economy back, but his failure to do
suggest that he was perhaps leaning towards
Austrian Consensus in spite of the weight of evidence that
the Model will not work in major economic
emergencies. When Hoover introduced his ‘Agricultural
Adjustment Act’ it was an innovation that made
him a friend of Tax and Welfare Economist eventually
modernized by Keynes, perhaps recognizing the
role of a free market economy…….
Huey Long from the long shots of the theory of
share-the-wealth, is to have enough for all and it was
popular for many other reasons especially for the man who
preached the gospel of the Plymouth
arrivals. According to Huey P. Long “The Theory of the Share
Our Wealth Society is to have enough for
all, but not to have one with so much that less than enough
remains for the balance of the people”. The
testimonial first appeared in Congressional Record 74th
congress, 2nd session., Vol. 79, no. 107 (May 23,
1935): 8333 - 36 (Via Opposing viewpoint – The Depression).
Long continued that “The whole line of my
political though has always been that America must face the
time when the whole country would
shoulder the obligation which it owes to every child born on
earth – that is, a fair chance to life, liberty
and happiness…” He also argued that as at 1932 ‘600
families’ in U.S, own everyone in the country put
together and 4% owned 87% of U.S total wealth. By proxy, 96%
of all American owned 13% of the all the
available resources. Huey P. Long maintained his position on
the process of Wealth Distribution which
was taking from rich and redistributing it, and this process
was quite extreme that some Americans
began to associate him with Communism and some experts
differed yet from excepts of his speeches, it
mirrored a version of communism that was growing in the
United States in late 20’s and early 30s.
Brook Institute conducted a study of the speeches and parallel
thinking common in the age preceding
the Depression. It compared three speeches from three
principle actors and these were Herbert Hoover,
F.D Roosevelt, and Huey Long, were principle actors, but
there were others whose speech were
represented. The Study cited the popular Roosevelt’s speech
on July 2, 1932 Democratic nomination in
Chicago Convention, where F.D.R mentioned “Throughout the
Nation, men and women, forgotten in the
political philosophy of the Government for the last years,
look to us here for guidance and for a more
equitable opportunity to share in the distribution of the
national wealth.” Then they introduced a line
from one of Herbert Hoover’s speeches that “My conception of
America is a land where men and
women may walk in ordered liberty, where they may enjoy the
advantages of wealth, not concentrated
in the hands of a few, but diffused through the lives of
all.”
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