From the Editor
Now at a New Low Introductory Rate
By Mark Fausz
Oct 1, 2008 - 9:07:26 AM

On Sunday night while rebonding with my daughter, who is now back from her adventures in California, I was treated to a lesson in fashion. Especially a trend that has young women scouring the racks of local Salvation Army and Goodwill stores across the nation – the vintage clothing rage.

Young people descend on the latest shipment of used clothes, hoping for a real vintage find and paying five or ten bucks for it. It’s a steal, and according to my firstborn, it’s stylish, too. Add a scarf to a 1970s business casual suit, along with some hip boots or heels, and Shockoe Bottom nightlife is your oyster.

But I can’t help but wonder which came first, the discovery of vintage clothing or the need to find some decent cheap old clothes because new clothes weren’t affordable. It’s a sort of chicken or egg scenario. Me, I think the chicken came first and had to find some cheap feathers to cover its bare thighs.

Salvation Army fashions for those who can’t even afford Wal-Mart. Now that’s making chicken salad.

Wearing less expensive clothes is just the tip of the iceberg. Driving less to avoid higher gas prices, putting off large purchases, and watching ever so closely any investments and banking as your neighbors watch their wallets is just the beginning.

As the Congress works out the details of the so-called bailout, I can’t help looking at what will be the local impact. Chesterfield does have some players in what’s playing out like a Greek tragedy.

Congressman Eric Cantor, who represents about half of Chesterfield, is leading a group of House Republicans on a plan that would have the Treasury buy mortgage-backed securities outright, insure them and charge premiums, paid to the government. But the problem according to some economists, is that it almost certainly won’t work. Justin Fox of Time Magazine breaks it down. “Writing insurance requires either a long history of past events or, at a minimum, knowledge of present market prices.” There is neither a long history of past events nor a knowledge of present market prices in this case. There’s not even a market for the products that would be insured, according to his article. That’s the fundamental problem.
Is this bailout and economic breakdown on everyone’s mind? It should be.

It hit close to home again on Sunday when the FDIC forced the sale of Wachovia Bank. I’m sure some of you bank there. Had you ever thought they would have problems? Remember what we were taught in school? It can’t happen here. Not now, there are too many safeguards in place.

So Wachovia has been taken over by Citigroup – you know, the guys that stuff your mailbox with the credit card solicitations. Now they have real buildings instead of call centers. An interesting thing about Citigroup is that the largest shareholder is Saudi Prince Alwaleed bin Talal, a nephew of Saudi King Abdullah.

So now, here’s how it works. Your paycheck, if you still have one, is automatically deposited in a Saudi-owned bank so you can use your Citi debit card to buy gas that is imported from Saudi Arabia and its Middle East neighbors. Along the way you stop at Walmart to buy some Chinese-made goods on your Citi credit card. Walmart charges you sales tax that helps pay for what’s left of the $270 billion Wachovia takeover. A little bit heads to Arkansas and the Walton family, while the lion’s share of your purchase dollars go to China. The Chinese then lend their profits to the U.S. government to bail out more banks and financial institutions that can issue you a new credit card to buy gas that the Saudis pump.

Vintage clothes, anyone?

mfausz@villagepublishing.com | 751-0421

© Copyright by Village Publishing LLC