The average investor's purchase of stock is no longer an invesment in business enterprise, it is a gamble with a bookie broker!
In the pre Regan area, the purchase of stock in a company was a purchase of a part of that company entitling the stock holder to a return of a portion of the profits of the company in the form of dividends. Theoretically, at least, the common stock holder had a right to vote for the "Directors" of the Company who represented the rights of the stockholders and appointed a CEO to operate the Company for the benefit of the owners.
Somewhere along the line the CEO's became the "Owner's" of the company. Directors did little directing and received lucrative compensation. CEO's tried to expand the company gaining enormous compensation in the form of Bonuses and "Stock Rights" (too complicated to explain) giving the Investors (now gamblers) inflated imaginary earnings called growth stock. This imaginary "growth stock" was "traded" (gambled) to produce enormous amounts of "paper money." Companies (Corporate Congloberates) became so big that even the IRS couldn't figure out the proper tax that was to be paid, and imaginary off shore holding companies were formed to confuse the issue even more and line the pockets of the creators of the inflated imaginary economy that was supposed to be the greatest private, free market business enterprise system that ever existed. Credit was extended beyond reason and the government set up "Insurance Entities" to guanantee the value of the inflated economy. A super insurance entity was established to insure the insurance entities. This super insurance entity was backed by solid imaginary credit. Then, Hell broke loose, and imagination turned to reality and the government turned to the taxpayers, who had lost their shirts, to further mortgage their future and their children's future to help out the gamblers and give them money to reimburse them for the loss of their imaginary paper gains. What a system!
Saturday, May 30, 2009
Monday, May 25, 2009
CONTROLLING THE COST OF HEALTH CARE
Can the Private, Free Market, Business Enterprise System keep the cost of Healh Care in the range of all citizens in the society? The Private, Free Market Business Enterprise System in simple terms it is only a system to determine price/cost based upon supply and demand with a little manipulation from business and the government, but, it is the foundation for the entire economy. This system has worked near perfection in distributing the Nation's wealth in a peaceful, equitable manner with the exception of a few recessions and a couple of depressions, but can it work to control a necessity of life like Health Care where the common place side effect of bankruptcy is not an acceptable condition?
The government and some business leaders inspired by the American Dream of finding a pot of gold came up with a solution to the problem with a number of agencies under the heading of "Health Care Insurance." This "solution" has not been as successful as hoped for and has not only failed to control the health care costs, it has conflicted with the Health Care Provider's practice of administering health care. Providers claim that this system of health care insurance takes health care decisions out of the hands of the doctors and places these decisions on a profit and loss basis. It also leaves a large portion of the popultion without any health care protection. The cost of the management of this current health care system appears to be nearly as high as the cost of providing the actual health care.
Government "Medicare" for all citizens appears to be the best solution to keep health care affordable for all and to keep the actual health care system in the private, free market, business enterprise system. Health care decisions would be in the hands of the doctors and their patients, and payments would be made to private, free market, business enterprises.
AN ADDED BONUS! Under a national medicare system; private, free market business enterprises (both small businesses and corporations) would no longer be burdened with employee health care costs and this would give them a fair field to compete with foreign enterprises that do not have this cost. For example, Foreign autos have outsold domestic autos due mainly to their lower prices which were helped by not having to pay health costs for their employees. This of course would also allow domestic small businesses to offer lower prices and increase their own profit as well.
It should be noted that many skilled and caring workers in the current health insurance agencies could conveniently transfer into the expanded government universal health care plan. The only loosers would appear to be the politicians who would no longer receive their generus campaign gifts from the Insurance Agencies, (which, incidentally, have added to the cost of health care)
and of course the executive officers in the health insurance agencies would loose their "bonuses."
The "Change" to government reform and control from the "out of control" Health Care Insurance System could be the key to our economic recovery and may even make us a healthier and more caring society.
The government and some business leaders inspired by the American Dream of finding a pot of gold came up with a solution to the problem with a number of agencies under the heading of "Health Care Insurance." This "solution" has not been as successful as hoped for and has not only failed to control the health care costs, it has conflicted with the Health Care Provider's practice of administering health care. Providers claim that this system of health care insurance takes health care decisions out of the hands of the doctors and places these decisions on a profit and loss basis. It also leaves a large portion of the popultion without any health care protection. The cost of the management of this current health care system appears to be nearly as high as the cost of providing the actual health care.
Government "Medicare" for all citizens appears to be the best solution to keep health care affordable for all and to keep the actual health care system in the private, free market, business enterprise system. Health care decisions would be in the hands of the doctors and their patients, and payments would be made to private, free market, business enterprises.
AN ADDED BONUS! Under a national medicare system; private, free market business enterprises (both small businesses and corporations) would no longer be burdened with employee health care costs and this would give them a fair field to compete with foreign enterprises that do not have this cost. For example, Foreign autos have outsold domestic autos due mainly to their lower prices which were helped by not having to pay health costs for their employees. This of course would also allow domestic small businesses to offer lower prices and increase their own profit as well.
It should be noted that many skilled and caring workers in the current health insurance agencies could conveniently transfer into the expanded government universal health care plan. The only loosers would appear to be the politicians who would no longer receive their generus campaign gifts from the Insurance Agencies, (which, incidentally, have added to the cost of health care)
and of course the executive officers in the health insurance agencies would loose their "bonuses."
The "Change" to government reform and control from the "out of control" Health Care Insurance System could be the key to our economic recovery and may even make us a healthier and more caring society.
Tuesday, April 28, 2009
THE FIRST 100 DAYS OF CHANGE
The current administration has initiated a number of promised positive changes to give America back to the people (middle class) but one major problem remains in force --The Government continues to support Wall Street at the Expense of the Middle Class.
America's obsession with investment as the answer to a successful economy continues to cause a neglect of the basic force for success in our Republican Democracy - -the Middle Class. It is the energy of the middle class that fuels our economy.
The solution to the crisis presented by the Secretary of the Treasury was consistent for what one would expect from a former President of a Federal Reserve Bank (NY) --Bailout the Banks at the expense of the Taxpayers. (All the hype about putting the tax burden on the rich is a subterfuge. A small percentage of the ill gotten gains of the rich will go toward the enormous debt undertaken. The middle class will bear the huge burden that will be taken out of their modest income, requiring extensive restraint and hardship.
Why not consider the middle class in the bailout picture "for a change." A Patriot Bond Issue similar to the Savings Bonds that financed WWII could switch the bailout from the Government to a loan to the Banks and the Auto Industry from the taxpayers. Banks and Auto Manufacturers could pay back the taxpayers with interest in a secured program that would be more compatible with the Private Free Market Business Enterprise System than the present program of government intervention (Nationalizing the Banks and Auto Industry.)
Perhaps we could continue the change to "transparency" and "Reform" and add a change to recognizing the middle class as the driving force in our economy. Let Wall Street make their honest gains and take their losses as the middle class is forced to do. Hold Ceo's responsible for their management of the people's investment in the corporations and more responsible management will result. Enact reasonable credit restrictions on loans and a more reasonable rate of mortgages will be foreclosed.
Gambling should only be allowed with "cash in the hand of the gambler that belongs solely to the gambler!
America's obsession with investment as the answer to a successful economy continues to cause a neglect of the basic force for success in our Republican Democracy - -the Middle Class. It is the energy of the middle class that fuels our economy.
The solution to the crisis presented by the Secretary of the Treasury was consistent for what one would expect from a former President of a Federal Reserve Bank (NY) --Bailout the Banks at the expense of the Taxpayers. (All the hype about putting the tax burden on the rich is a subterfuge. A small percentage of the ill gotten gains of the rich will go toward the enormous debt undertaken. The middle class will bear the huge burden that will be taken out of their modest income, requiring extensive restraint and hardship.
Why not consider the middle class in the bailout picture "for a change." A Patriot Bond Issue similar to the Savings Bonds that financed WWII could switch the bailout from the Government to a loan to the Banks and the Auto Industry from the taxpayers. Banks and Auto Manufacturers could pay back the taxpayers with interest in a secured program that would be more compatible with the Private Free Market Business Enterprise System than the present program of government intervention (Nationalizing the Banks and Auto Industry.)
Perhaps we could continue the change to "transparency" and "Reform" and add a change to recognizing the middle class as the driving force in our economy. Let Wall Street make their honest gains and take their losses as the middle class is forced to do. Hold Ceo's responsible for their management of the people's investment in the corporations and more responsible management will result. Enact reasonable credit restrictions on loans and a more reasonable rate of mortgages will be foreclosed.
Gambling should only be allowed with "cash in the hand of the gambler that belongs solely to the gambler!
Monday, April 20, 2009
A TAXPAYER BAILOUT!
The Government has tried unconditional bailouts, loans and investment in stock to benefit Wall Street, the Banks and the Auto Companies in trying to solve the credit crisis; and reportedly some progress is being made, all at the expense of the taxpayer. Perhaps we should try a plan that would also be a benefit to the taxpayers? Perhaps something like a "Patriot Bond Issue" backed by the government and drawn on the bailout recipients. The bonds could yield reasonable interest (3-4% paid by the bailout recipients) with the interest tax exempt to a reasonsable annual limit of $10,000 or so, and the bonds would be made available for purchase by US taxpayers.
This private investment could wipe out the enormous debt the government has taken on and it would be more compatible with our private business enterprise system while affording the taxpayers a safe investment opportunity to supplement social security.
It is obvious that the stock market is not a reliable plan for retirement security and perhaps a safer, less ambitious investment plan would be a more realistic approach.
This private investment could wipe out the enormous debt the government has taken on and it would be more compatible with our private business enterprise system while affording the taxpayers a safe investment opportunity to supplement social security.
It is obvious that the stock market is not a reliable plan for retirement security and perhaps a safer, less ambitious investment plan would be a more realistic approach.
Friday, April 17, 2009
PULL OUT OF IRAQ
There is little to be gained by leaving "Advisors" in Iraq. Combat troops could at least try to protect themselves, but advisors are just sitting ducks.
There are extreemists that will resist until they are put under control by the Iraqi Government. These extreemists consider the US as their main enemy and will not yield as long as we are in Iraq. Our presence simply gives them another cause to pursue.
Every country has its Rebels and it is an internal problem that each country has to solve for itself.
The Mexican drug problem is another issue. Gun dealers and drug pushers in the US have caused the problem and continue to contribute to the problem. Actually, we are one of the main contributers to the drug problem in Afghanistan as well; and ironically the Teliban would probably do a better job of controlling this problem than we have done, or will do.
God help us to tackle the problems that we can solve and stay away from the problems that we cannot solve; and help us to know which is which.
There are extreemists that will resist until they are put under control by the Iraqi Government. These extreemists consider the US as their main enemy and will not yield as long as we are in Iraq. Our presence simply gives them another cause to pursue.
Every country has its Rebels and it is an internal problem that each country has to solve for itself.
The Mexican drug problem is another issue. Gun dealers and drug pushers in the US have caused the problem and continue to contribute to the problem. Actually, we are one of the main contributers to the drug problem in Afghanistan as well; and ironically the Teliban would probably do a better job of controlling this problem than we have done, or will do.
God help us to tackle the problems that we can solve and stay away from the problems that we cannot solve; and help us to know which is which.
Monday, March 30, 2009
THE AUDACITY OF CREDIT
Credit, like hope is a major element for achievement in our society and culture; but without substance they become the hollow cry of defeat; a prologue to disaster. Hope, without the effort to achieve the prize hoped for is meaningless. Credit, without the security for repayment is a frivolous gamble.
While investment is a financial risk for the investor; credit is a double risk; a financial risk for the party giving credit, and a financial risk for the party receiving credit. Insurers of the risk for the party giving credit has tended to encourage less responsible issuance of credit. The insurers of the insurers guaranteeing credit have created a false illusion of security that has produced grossly irresponsible issuance of credit, resulting in the crisis we now face.
Government bailout for irresponsible credit to restore credit will not solve the crisis. The only solution to credit failure is government regulation to require more responsible issuance of initial credit. Insuring credit by a third party passes the liability to a party once removed from the transaction. Insuring the Insurers passes the liability to a party twice removed from the transaction. The government proposal to establish the FDIC as the insurer of the insurer brings up the question, who is to insure the insurer of the insurer. That of course would be the taxpayer, a most audacious injustice.
While investment is a financial risk for the investor; credit is a double risk; a financial risk for the party giving credit, and a financial risk for the party receiving credit. Insurers of the risk for the party giving credit has tended to encourage less responsible issuance of credit. The insurers of the insurers guaranteeing credit have created a false illusion of security that has produced grossly irresponsible issuance of credit, resulting in the crisis we now face.
Government bailout for irresponsible credit to restore credit will not solve the crisis. The only solution to credit failure is government regulation to require more responsible issuance of initial credit. Insuring credit by a third party passes the liability to a party once removed from the transaction. Insuring the Insurers passes the liability to a party twice removed from the transaction. The government proposal to establish the FDIC as the insurer of the insurer brings up the question, who is to insure the insurer of the insurer. That of course would be the taxpayer, a most audacious injustice.
Sunday, March 29, 2009
THE FREE MARKET IS DROWNING IN CREDIT!
With a futile effort to eliminate Bankruptcy and Depression, the merger of Big Business and Government has the Economy taking its last gasps for freedom.
The ingenious Free Business Enterprise system that has produced the wealthiest nation in the world is destroying itself with the ambition to become perfect and to make the world perfect as well.
The free market system, which was a plan to distribute the wealth of the material world by non-violent means, has expanded and conquered the frontiers into outer space,and may have extended itself beyond the gravity of reality.
The "Free Market" was built on progress through risk. Forces competed with each other to explore and exploit the unknown. In this environment some forces fail and the total market tends to over produce causing a Recession; that could lead to a Depression. The process developed into what has been called the : Business Cycle.(ie Progress, Recession, Depression and Recovery)
Depression has been recognized as a "bad" thing, and the forces desired to "insure" against this dreaded disaster. Investment (Risk) was joined by the other "eye" of the system, Insurance, to lead to the promised land of constant prosperity.
In the first Depression, the banks failed and the masses lost their savings, which was determined a national disaster. The FDIC was enacted and regulations were put onto effect to curb irresponsible risks and insure against this disaster ever happening again. This conservatism slowed progress and impatience fought against the regulations to guard against the irresponsible risks. The merger of Big Business and Government (called by many, Government intervention) slowly
eroded rational responsibility until the "brilliant" idea of insuring insurers made billionaires out of some and victims out of the masses. The big question was "who is going to insure the insurers of the insurers? The foolhardy answer was "credit!"
Just as the government had established an artificial person created by law (The Dartmouth College case defining a Corporation) the government now created an artificial insurer called credit. This "scheme" has now collapsed and panic has set in. Some feel that more credit disguised as "private-Public Investment" (risk) will solve the problem. A few others feel that it is time to take a pause and recognize the Free Business Enterprise System and the Business Cycle for what it is. The only way to avoid depression in this system is to regulate the system (without government intervention) and outlaw unreasonable risk (investment). One of the major unreasonable investments is the Conglomerate Corporation. a monster that manipulates the wealth of many by a few to reward the few. As a starter, these monsters must be divested into manageable units that would be unable to bring the economy to its knees. Of course, the return of integrity to Big Business and Government would be an enormous help as well.
The ingenious Free Business Enterprise system that has produced the wealthiest nation in the world is destroying itself with the ambition to become perfect and to make the world perfect as well.
The free market system, which was a plan to distribute the wealth of the material world by non-violent means, has expanded and conquered the frontiers into outer space,and may have extended itself beyond the gravity of reality.
The "Free Market" was built on progress through risk. Forces competed with each other to explore and exploit the unknown. In this environment some forces fail and the total market tends to over produce causing a Recession; that could lead to a Depression. The process developed into what has been called the : Business Cycle.(ie Progress, Recession, Depression and Recovery)
Depression has been recognized as a "bad" thing, and the forces desired to "insure" against this dreaded disaster. Investment (Risk) was joined by the other "eye" of the system, Insurance, to lead to the promised land of constant prosperity.
In the first Depression, the banks failed and the masses lost their savings, which was determined a national disaster. The FDIC was enacted and regulations were put onto effect to curb irresponsible risks and insure against this disaster ever happening again. This conservatism slowed progress and impatience fought against the regulations to guard against the irresponsible risks. The merger of Big Business and Government (called by many, Government intervention) slowly
eroded rational responsibility until the "brilliant" idea of insuring insurers made billionaires out of some and victims out of the masses. The big question was "who is going to insure the insurers of the insurers? The foolhardy answer was "credit!"
Just as the government had established an artificial person created by law (The Dartmouth College case defining a Corporation) the government now created an artificial insurer called credit. This "scheme" has now collapsed and panic has set in. Some feel that more credit disguised as "private-Public Investment" (risk) will solve the problem. A few others feel that it is time to take a pause and recognize the Free Business Enterprise System and the Business Cycle for what it is. The only way to avoid depression in this system is to regulate the system (without government intervention) and outlaw unreasonable risk (investment). One of the major unreasonable investments is the Conglomerate Corporation. a monster that manipulates the wealth of many by a few to reward the few. As a starter, these monsters must be divested into manageable units that would be unable to bring the economy to its knees. Of course, the return of integrity to Big Business and Government would be an enormous help as well.
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