The government has determinded that we have a financial crisis because Main St. doesn not have enough money to pay their credit debts and buy a new car. The government has also determinded that the way to solve the credit crisis is to give 750 Billion to Wall Street plus near 0% interest credit so that they can give Main St. more credit to pay off their current credit debt. (Pay off credit with credit and buy a new car on credit too? How interesting!) Interesting question, "What will happen when this larger credit debt comes due?
Wouldn't it make more sense to use some of the bailout money to supplement the Unemployment Insurance, follow the normal bankruptcy procedure where appropriate and give those who reached beyond their means the opportunity to start over again.
It might also make sense to balance the government budgets , starting by cutting all salaries and pensions of government employees making $75,000 or more by 10%, and cutting remuneration of Elected Officials who are "serving" the people by 25% to put them on a more realistic level with the current economy.
Saturday, December 20, 2008
Wednesday, December 17, 2008
ARE WE THINKING?
The goverment has determined that the financial crisis was caused by excessive credit given as a result of easy credit encouraged by the government. The government solution to the crisis has been to give more money to the banks to extend more credit. Wouldn't this put the mortgagor even deeper in debt? If money is to be given away, shouldn't it be given to the mortgagor to pay off the debt?
Government intervention and lack of regulations brought about the crisis. Perhaps regulations and lack of intervention might be the solution to the crisis.
Government intervention and lack of regulations brought about the crisis. Perhaps regulations and lack of intervention might be the solution to the crisis.
Friday, December 5, 2008
EASY MONEY BROUGHT HARD TIMES
The American Dream was based on honest, hard work! Easy money to banks to give easy money to home owners is another example of Government Intervention to destroy the American Dream.
Remember when the American Dream was to work hard, save your money, and buy a home? Easy low interest credit for banks from the Government brought about low savings rates at the bank which discouraged savings, and easy credit for purchase of a home looked like a way around "work hard and save your money" to buy a home.
The problem came when the payments for the home (PLUS INTEREST) requires more cash than Average Joe and his wife can earn. The case is very simple. That $200,000 dream home will cost $400,000 WHEN INTEREST IS ADDED, and that is more than the Average Joe and his wife can earn.
The Government solution to the problem; more easy money to the banks which Average Joe and his wife will have to pay for in taxes, will not leave them anything from their hard work for savings, and thus destroy the American Dream for good.
The American Dream was not meant to be a gift, it was something to work for.
Food for Thought: The Government gives the banks credit at 1 1/2% and the banks charge the Average Joe and his wife 5 1/2%. Who is the Government helping by bailing out the banks with easy credit?
Remember when the American Dream was to work hard, save your money, and buy a home? Easy low interest credit for banks from the Government brought about low savings rates at the bank which discouraged savings, and easy credit for purchase of a home looked like a way around "work hard and save your money" to buy a home.
The problem came when the payments for the home (PLUS INTEREST) requires more cash than Average Joe and his wife can earn. The case is very simple. That $200,000 dream home will cost $400,000 WHEN INTEREST IS ADDED, and that is more than the Average Joe and his wife can earn.
The Government solution to the problem; more easy money to the banks which Average Joe and his wife will have to pay for in taxes, will not leave them anything from their hard work for savings, and thus destroy the American Dream for good.
The American Dream was not meant to be a gift, it was something to work for.
Food for Thought: The Government gives the banks credit at 1 1/2% and the banks charge the Average Joe and his wife 5 1/2%. Who is the Government helping by bailing out the banks with easy credit?
Tuesday, December 2, 2008
WILL BILL CLINTON BE A PROBLEM IN THE OBAMA ADMINISTRATION?
There is little reason not to think that Hillarie Clinton would be a competent member of the Obama team, but what about Bill? His lack of self discipline and "Poor Looser" characteristic are a matter of record. However, his pardoning of wealthy criminals and his subsequent acquisition of substantial wealth has not been all that well documented. Perhaps the confirmation of Eric Holder (former Deputy Attorney General under Clinton) as Attorney General will give the opportunity to look into this issue. Will Republicans in Congress fulfill their roles and invistigate Holder's role in the pardoning and question his reactions. Holder's answers on this issue could give legimate insight on his perception of the letter of the law and the spirit of the law. Perhaps some of the Democrates in Congress who believe in the principles of law would join in the interrogation.
Monday, November 24, 2008
IN A WORD!
A group of concerned citizens were trying to characterize the Bush/Cheney Administration in one word. Many suggestions were given: incompetent, irresponsible, corrupt, embarrassing, irrelevant. disastrous, foolish, etc. All
were valid descriptions but the one chosen unaminously at the end was the one given by former Senator Mitchell - ILLEGAL. Bush/Cheney violated International Law, Constitutional Law and Moral Law. It was probably the most incompetent, irresponsible, corrupt, embarrassing, irrelevant, disastrous, foolish and ILLEGAL Administration in the history of our great country.
In a word, what do you think?
were valid descriptions but the one chosen unaminously at the end was the one given by former Senator Mitchell - ILLEGAL. Bush/Cheney violated International Law, Constitutional Law and Moral Law. It was probably the most incompetent, irresponsible, corrupt, embarrassing, irrelevant, disastrous, foolish and ILLEGAL Administration in the history of our great country.
In a word, what do you think?
Thursday, November 6, 2008
REQUESTS FOR SOME SIMPLE CHANGES TO START THE BALL ROLLING
Changes were promised and we responded. Now we hopefully wait and submit our requests:
1 - Immediate action for the withdrawal of troops from Iraq. This invasion was not sanctioned by the UN and was in violation of International Law.
2 - Speedy settlement of the Afganistan Invasion
3 - Establish diplomatic relationships with all foreign nations whether we like them or not.
4 - Convert all Military Bases in foreign countries to UN Bases reducing US forces and US fiscal support by at least 50%
5 - Cease all military aid to foreign countries and channel all economic aid through Embassy offices. (All military aid to UN Bases)
6 - Pass Hillary"s Health Care Program
7 - Pass Part I of the New Tax Law rolling back Bush Administration tax breaks to those making over $250,000 and tax relief to those making $250,000 or less.
8 - Give control of the Government back to the People:
(Elected public officials in the Legislative Branch of the government have tended to pursue personal welfare rather than the welfare of the people they represent. To curb this action, the following changes are suggested.
a) Limit all (legislative) officials to a maximum two terms
b) Remuneration and Perks to be decided by a vote of the people rather than by the legislators themselves
c) Abolish all retirement benefits for both legislative and administrative officials.
d) Institute recall provision for both legislative and administrative officials
9 - Give control of the profits of the "Artificial Persons created by Law" back to the owners (Stockholders). To achieve this, the following changes are suggested:
a) Take away CEO's authority to:
1) Determine his or her own salary
2) Spend corporation funds for non business operation costs and expenses
3) Give funds to Political and Non-Profit Entities
b) After setting aside prudent reserves for contingencies, profits should begiven to shareholders as dividends. Decisions for expansion and gifts belong to the owners of the business. Expansion can be financed by issuance of additional stock when requested by the Board of Directors and approved by a majority vote of the stockholders.
10 -Enact laws and regulations to curb businesses from outsourcing jobs overseas and avoiding taxes.
11- Enact laws and regulations to curb pollution and global warming, and make the country more energy independent.
AGREE, DISAGREE, ADD OR SUBTRACT.
1 - Immediate action for the withdrawal of troops from Iraq. This invasion was not sanctioned by the UN and was in violation of International Law.
2 - Speedy settlement of the Afganistan Invasion
3 - Establish diplomatic relationships with all foreign nations whether we like them or not.
4 - Convert all Military Bases in foreign countries to UN Bases reducing US forces and US fiscal support by at least 50%
5 - Cease all military aid to foreign countries and channel all economic aid through Embassy offices. (All military aid to UN Bases)
6 - Pass Hillary"s Health Care Program
7 - Pass Part I of the New Tax Law rolling back Bush Administration tax breaks to those making over $250,000 and tax relief to those making $250,000 or less.
8 - Give control of the Government back to the People:
(Elected public officials in the Legislative Branch of the government have tended to pursue personal welfare rather than the welfare of the people they represent. To curb this action, the following changes are suggested.
a) Limit all (legislative) officials to a maximum two terms
b) Remuneration and Perks to be decided by a vote of the people rather than by the legislators themselves
c) Abolish all retirement benefits for both legislative and administrative officials.
d) Institute recall provision for both legislative and administrative officials
9 - Give control of the profits of the "Artificial Persons created by Law" back to the owners (Stockholders). To achieve this, the following changes are suggested:
a) Take away CEO's authority to:
1) Determine his or her own salary
2) Spend corporation funds for non business operation costs and expenses
3) Give funds to Political and Non-Profit Entities
b) After setting aside prudent reserves for contingencies, profits should begiven to shareholders as dividends. Decisions for expansion and gifts belong to the owners of the business. Expansion can be financed by issuance of additional stock when requested by the Board of Directors and approved by a majority vote of the stockholders.
10 -Enact laws and regulations to curb businesses from outsourcing jobs overseas and avoiding taxes.
11- Enact laws and regulations to curb pollution and global warming, and make the country more energy independent.
AGREE, DISAGREE, ADD OR SUBTRACT.
Sunday, November 2, 2008
GOVERNMENT INTERVENTION HAS BANKRUPT THE AMERICAN FREE BUSINESS ENTERPRISE SYSTEM
A combination of Good Intentions with Gross Incompetence and Irrational Greed has brought the American Economy to its knees. The incompetence and greed have been so bad that it has effected economies world wide.
It all started with the creation of an Artificial Person created by Law called the Cororation. This monster gave human beings called CEO's the freedom to use vast sums of other people's money and gamble with this money without any personal liability for irresponsible action or poor judgment.
In the beginning, with presumed moral responsibility, the corporations enabled the USA to amass greater wealth than any other nation has ever been able to achieve short of war and plunder, even though war was a factor in the equation for American prosperity.
The Free Business Enterprise System was an ingenious idea to legally manage the peaceful distribution of wealth according to each person's individual efforts. It was much like a sports event with presumed rules of play to ensure a fair game. The weak spot in the system was the "Business Cycle." When the supply exceeds the demand, a recession sets in. If the supply continues to exceed the demand, a depression results. In a wide diverse economy such as exists in the United States, businesses that continue to over supply can go bankrupt and fail, and other segments of the society can remain healthy to avoid mass depression. (a major crisis) Businesses with conservative management that voluntarily use restraint in over expansion can successfully weather the storms and expand when demand increases.
Unfortunately, Government has intervened to bail out failures and subsidize special interests in a botched attempt to manipulate the "business cycle." The Government further damaged the system by deregulating responsible rules
to curb excessive greed and avoid unfair exploitation. As a result many who were immuned from personal liabiltiy let their greed get out of hand and irresponsible exploitation developed to bankrupt the system.
Basically, it was the investment corporations that led the greed craze. The role of these corporations was to enable industry to develop and expand, gaining a portion of the industry's profit as their reward. As CEO's with limited liability and no regulations to stop them, investment corporations evolved into gambling establishments with great personal rewards for a winner and no responsibility for a loss. When irresponsble risks produced excessive losses and investment corporations ran out of funds, the Government took taxpayers money to pay for the losses. This, of course, was in complete violation of the Free Business Enterprize System, financially and morally, bankrupting the System.
The cause of the crisis is simple and the solution is simple as well, but the problem is not easy to solve, and it may be impossible.
Changes are needed. Control must be given back to the owners. (the stock holders) The free ride with limited personal liability has to go. Regulations have to be enacted to provide a fair game, but Government Intervention has to cease!
WHAT DO YOU THINK?
It all started with the creation of an Artificial Person created by Law called the Cororation. This monster gave human beings called CEO's the freedom to use vast sums of other people's money and gamble with this money without any personal liability for irresponsible action or poor judgment.
In the beginning, with presumed moral responsibility, the corporations enabled the USA to amass greater wealth than any other nation has ever been able to achieve short of war and plunder, even though war was a factor in the equation for American prosperity.
The Free Business Enterprise System was an ingenious idea to legally manage the peaceful distribution of wealth according to each person's individual efforts. It was much like a sports event with presumed rules of play to ensure a fair game. The weak spot in the system was the "Business Cycle." When the supply exceeds the demand, a recession sets in. If the supply continues to exceed the demand, a depression results. In a wide diverse economy such as exists in the United States, businesses that continue to over supply can go bankrupt and fail, and other segments of the society can remain healthy to avoid mass depression. (a major crisis) Businesses with conservative management that voluntarily use restraint in over expansion can successfully weather the storms and expand when demand increases.
Unfortunately, Government has intervened to bail out failures and subsidize special interests in a botched attempt to manipulate the "business cycle." The Government further damaged the system by deregulating responsible rules
to curb excessive greed and avoid unfair exploitation. As a result many who were immuned from personal liabiltiy let their greed get out of hand and irresponsible exploitation developed to bankrupt the system.
Basically, it was the investment corporations that led the greed craze. The role of these corporations was to enable industry to develop and expand, gaining a portion of the industry's profit as their reward. As CEO's with limited liability and no regulations to stop them, investment corporations evolved into gambling establishments with great personal rewards for a winner and no responsibility for a loss. When irresponsble risks produced excessive losses and investment corporations ran out of funds, the Government took taxpayers money to pay for the losses. This, of course, was in complete violation of the Free Business Enterprize System, financially and morally, bankrupting the System.
The cause of the crisis is simple and the solution is simple as well, but the problem is not easy to solve, and it may be impossible.
Changes are needed. Control must be given back to the owners. (the stock holders) The free ride with limited personal liability has to go. Regulations have to be enacted to provide a fair game, but Government Intervention has to cease!
WHAT DO YOU THINK?
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