I have been hearing nothing but gloom and doom bailout stories on the airwaves -- so much that I just don't believe anyone really knows what will work. Remember that old song "Rescue Me" - that has been going through my head so much when I hear the news that it should be a theme song for the times we are going through.
You know there are a lot of people who would like to be rescued. And there are a lot of people who used to live with the optimism that if anything went wrong, someone would rescue them from disaster. So tell me, why should corporate America be rescued? Why shouldn't they, like us, suffer the results of their excesses, their greed, their poor judgments, their disappointments, etc.?
Are we just feeding the monster by not letting everything hit a natural bottom. Who is to say we would not rebuild a better system? We will never know because "bailout money" is flowing like a river of American blood. I don't see any rhyme or reason to the approach being taken. It seems like everything we are doing is a knee-jerk reaction to another leak in the dam. We have not had time to take any proactive preventative steps because in my opinion everyone is guessing at the solutions and throwing good money after bad. Even Greenspan admitted that his long held beliefs were wrong. I am not a total Grinch because I do see the importance of shoring up our banking system and some of the other basic systems, but as a country, we can not continue to support these failing companies with unlimited funds.
I remember when I went through what I call my "down-to-earth" moment when I was a Junior in college. I realized that yes you can do anything you put your mind to but you have to put your mind to it 100%, you have to be focused and this is important -- you have to sacrifice. That was when I realized that life was not a fairy tale and that happy endings were not guaranteed. I also realized that sometimes an individual's dreams did not match their talents or their passion. I learned to live with my own imperfections as well as those of others. I accepted that I was never going to succeed at the level I wanted to succeed. But I also took responsibility for this choice. I chose not to sacrifice, I was materialistic and I required more security than I could expect if I followed my dream.
Today, I feel satisfied with my life and the direction I took. I have reached a level of success that allows me to have very few regrets. I tried to make careful decisions, I took few risks, but I did pursue some things that required I commit to a life changing direction. None of these choices were more than I could handle and some required a little sacrifice on my part. None of my goals were unattainable, but all of them could have been derailed for a variety of reasons, and some were due to my own actions. The point is that I picked myself up from every disappointment or failure and kept on. Most of us do that, giving up is not an option. Unlike a corporation we can't just shut down operations.
So by rescuing these corporations we are saying take any risk because we will save you if it turns sour. I just think that is wrong. In the meantime, the real suffering is at the lowest level, the working "joe" who is struggling to make ends meet to pay the bills and to raise his family.
There is no doubt that unpleasant things will happen to good people. It is how they handle themselves that means the most to me. Do they turn bitter, angry and resentful? Or do they start again and take responsibility and not let the disappointments turn them into blamers, complainers, and negative people. I confess that there are often reasons to be bitter and angry, but if you don't move beyond that, how can you make things better?
I realize that this may sound like I don't care if the country goes into a deep recession. But that is not why I am wondering out loud about this. I almost sound like a Republican on this subject, but no I do believe in regulation and that as a nation we have social responsibilities to help with things like heathcare, security in our old age, and care for those who cannot care for themselves. But for the most part I do not believe in permanent federal subsidies. I do believe that the government is an agent for good not evil. But I also believe that there are some people in the government who do not serve the public good.
It is easy to see how the Libertarian ideas strike a cord on some points. But then so does Hucklebee (fair tax) and so does John Cain. It is still a matter of finding balance. I still think Obama will bring us a more balanced goverment.
So that is my point of view in this posting. Until my next thought strikes, so long for now.
Tuesday, October 28, 2008
Friday, October 17, 2008
Trickle Down Should Not be the Only Policy
First let me put in my disclaimer: I am not an economist and my theories and opinions are just that, my own.
I do not believe in the Trickle Down economic theory as a stand alone policy. My reasons are purely observational. Not much seems to trickle down and certainly not quickly. After everyone along the way has taken their "cut" there is not much left over for the guy or gal at the bottom. I think this is illustrated a little by the failure of banks to work with borrowers to rework mortgages for those in trouble.... the corporations just will not voluntarily give up any profit to help keep a loan viable. Instead of thinking that something is better than nothing, they take an all or nothing stand and in my opinion this is just stupid. Even if I were a shareholder of the bank, I think I would rather see adjusted earnings forecasts go down than a complete failure of the bank because of its inflexibility. Remember what I said about how banks used to operate, it was a person in the community that the bank knew personally and he would make a judgment based on what he knew about the person -- and that is not always numbers on an application.
Now an example of Trickle Up economics can be illustrated but it too has its flaws, especially if excess funds are put in savings instead of being spent. But even that would have its benefits, since it is savings that become the basis for bank funds available. My example is the last stimulation refund/tax rebate that was done. That hit the retail numbers pretty quickly and it was clear that it was needed (or a lot of it would have disappeared into savings accounts.) So this is the basis for my belief that Trickle Up needs to be combined with Trickle Down for a more balanced approach to resolving our economic woes.
Loan workouts need to become a priority and soon. People can not wait for the bailout money to trickle down and there is no pressure on the lenders to do anything but wait for the government to bail them out once again. Foreclosures are bad, finding solutions that avoid foreclosures whenever possible are good. We need to break the cycle and that requires interference -- a bold step and bound to be unpopular with corporate America but it is the morally right thing to do. Forget about blame -- so what if someone got into debt too deeply. Let's do what America does so well -- lend a hand and help your neighbor get back up.
You know, the attitude that everyone is responsible for themselves is not bad but it should not be absolute. Circumstances, luck, etc. -- think of the Nationwide Insurance advertisment "Life comes at you.." -- we need to be more compassionate, forgiving, tolerant and less judgmental, and that is not being gullible. Who knows, one day you or I might need that helping hand. Let's stop turning our backs on the less fortunate. One person at a time we can change the country.
Republican policies are not all bad and Democratic policies are not all good. Compromise, the willingness to work together to solve problems - what both candidates have promised to do -- is what we need. The give and take of good discourse is necessary but at the end of the day, be willing to give something a try.
We have a responsibility as citizens to be active participants in our government. This can be as simple as voting, not just in the national elections but in the local ones too. Tip O'Neill said it best: "All politics is local" so write that letter, attend a town council meeting and don't be afraid to speak up, go to that school board meeting, make an appointment to just chat with your county elected official, meet candidates and talk to them about what is important to you. Teach your children the importance of the freedoms that we have and voting is the most important. Don't be the silent majority about things that matter to you.
You know we are so fortunate here in America, there are two very decent individuals running for the top elected office in our country. Let's honor them by voting on November 4th!
I do not believe in the Trickle Down economic theory as a stand alone policy. My reasons are purely observational. Not much seems to trickle down and certainly not quickly. After everyone along the way has taken their "cut" there is not much left over for the guy or gal at the bottom. I think this is illustrated a little by the failure of banks to work with borrowers to rework mortgages for those in trouble.... the corporations just will not voluntarily give up any profit to help keep a loan viable. Instead of thinking that something is better than nothing, they take an all or nothing stand and in my opinion this is just stupid. Even if I were a shareholder of the bank, I think I would rather see adjusted earnings forecasts go down than a complete failure of the bank because of its inflexibility. Remember what I said about how banks used to operate, it was a person in the community that the bank knew personally and he would make a judgment based on what he knew about the person -- and that is not always numbers on an application.
Now an example of Trickle Up economics can be illustrated but it too has its flaws, especially if excess funds are put in savings instead of being spent. But even that would have its benefits, since it is savings that become the basis for bank funds available. My example is the last stimulation refund/tax rebate that was done. That hit the retail numbers pretty quickly and it was clear that it was needed (or a lot of it would have disappeared into savings accounts.) So this is the basis for my belief that Trickle Up needs to be combined with Trickle Down for a more balanced approach to resolving our economic woes.
Loan workouts need to become a priority and soon. People can not wait for the bailout money to trickle down and there is no pressure on the lenders to do anything but wait for the government to bail them out once again. Foreclosures are bad, finding solutions that avoid foreclosures whenever possible are good. We need to break the cycle and that requires interference -- a bold step and bound to be unpopular with corporate America but it is the morally right thing to do. Forget about blame -- so what if someone got into debt too deeply. Let's do what America does so well -- lend a hand and help your neighbor get back up.
You know, the attitude that everyone is responsible for themselves is not bad but it should not be absolute. Circumstances, luck, etc. -- think of the Nationwide Insurance advertisment "Life comes at you.." -- we need to be more compassionate, forgiving, tolerant and less judgmental, and that is not being gullible. Who knows, one day you or I might need that helping hand. Let's stop turning our backs on the less fortunate. One person at a time we can change the country.
Republican policies are not all bad and Democratic policies are not all good. Compromise, the willingness to work together to solve problems - what both candidates have promised to do -- is what we need. The give and take of good discourse is necessary but at the end of the day, be willing to give something a try.
We have a responsibility as citizens to be active participants in our government. This can be as simple as voting, not just in the national elections but in the local ones too. Tip O'Neill said it best: "All politics is local" so write that letter, attend a town council meeting and don't be afraid to speak up, go to that school board meeting, make an appointment to just chat with your county elected official, meet candidates and talk to them about what is important to you. Teach your children the importance of the freedoms that we have and voting is the most important. Don't be the silent majority about things that matter to you.
You know we are so fortunate here in America, there are two very decent individuals running for the top elected office in our country. Let's honor them by voting on November 4th!
Friday, October 10, 2008
Hunkering Down
Remember back when I said something big was coming but I did not know what? Well I guess we all know what it was ... a huge economic crisis that is a once in a lifetime (we hope) event. When combined with the political campaign, I am sure that a lot of people are conflicted about what to do. I have always thought that there is some truth to history repeating itself. But more than that, I think that history informs us on how to go forward.
I have always been fascinated by economic theory. When I took my introductory course in economics we covered both macro and micro economics and I never missed a lecture. I probably would have taken more classes in economics if I had the luxury of unlimited time. But instead I have to rely on the talking heads to give me glimpses into current theories, sometimes conflicting opinons on what is happening and how to fix it. And what I have gathered from everything I have heard is that there are a lot of theories but no one really knows for sure what the real fix is. The reason is that there may be the right option embedded in all those theories but we can't agree on the path.
I have spoken with a lot of really smart and savvy people and some have really, really sharp minds and all of them say that we need to be prepared for an extended recovery period of several years. But the real question is whether the right theories are being followed by those who are trying to chart our path out of this mess. The wrong choice could extend the recovery timeline. And we are not just talking about national policy but international policy. It is possible that this is going to propel the paradym shift in international power.
So now that brings me back to politics. In the big scheme of things the economic policies of the two major political parties are far apart. Forget the people running for office and focus on the policies and try to make a judgement whether the current policy is working or whether a change in policy is needed. That is what will guide my vote in November. The individuals are both going to have a hard time their first few years in office and this crisis will resolve itself regardless of who is in office, with the benefit of reflecting favorably on the person in office if the recovery goes well. So the question I ask myself is what policy do I buy into and do I think the individual will implement it properly and can they implement it with the congress that they will have to work with. So there -- that is the big decision we all have to make. Of course there are other things that I am interested in and which also will effect my decision, but this is the big one, the deal breaker, the elephant in the room.
I have to say something about social conservatism and the Christian right. The republican party is not well served by the extremes of these philosophies. In fact the converse is also true, the democratic party is not well served by the extreme liberal philosophies. I believe that the majority of US citizens are much more moderate and tolerant in their opinions than either of these extremes. There are some things that act as lightning rods such as abortion and illegal immigration -- but on the majority of governance issues I think that there is more accord than not. What I am saying is that compromises could and should be made on the majority of goverment actions and that there should be an acceptance of agreement to disagree on the more difficult issues -- but that the majority rule needs to be honored. The problem as I see it is that there may not be a clear majority opinion, which implies that there is a real schizm in the country.
This schizm may be the warning canary of the gap developing in our society between the haves and the have-nots. I will have to think about this a little more.
I don't know the answer to how we resolve the abortion issue as a country, but I believe it is a personal choice up to a certain time in the pregnancy. I also believe that easily available abortions have changed our society -- and I have no religious issue here -- for the worse, making casual sex more acceptable because the consequences can be eliminated. This does erode our culture and our family unit. But I also believe that to totally prohibit abortions have costs both to individuals and to society, the burden of teenage pregnancies, the unwanted children, the health risks, illegal abortion clinics, etc. So as a result I believe that sex education is the absolutely right thing to do and that preventing unwanted pregnancies is important. In this role our religious institutions provide an important service. I do not agree that abortion should be legislated beyond where it is now. I also believe that we have a long way to go to reconcile the extremes on this issue and I would be alarmed if Roe v. Wade were reversed. Honestly, I want my granddaughter to have a choice and not to be trapped into a situation that was the result of immature and poor judgement on her part. Life's lessons are hard enough and the long term effect could ruin her future irrepairably.
Now the current mortgage crisis is a real problem which I am sure is very complex and will take a long time to resolve. But I was thinking that maybe it could be simplified. The big challenge is the loan workouts that need to happen. The banks did not get this done because they were so focused on their profits. They sort of bit off their nose to spite their face, don't you think?
I am sure there are a lot of solutions being considered but let me put my solution out there, it may be just too simple to take into consideration everything but here it is: Establish a nationwide mortgage interest rate and impose that rate on all mortgages made since 2005. The rate would have to be really low -- I am thinking maybe 3.5% or lower. Convert all the mortgages to this fixed rate and then base the term of the mortgage on the individual income of the mortgage holder. This means establish a standard percentage of total individual income -- say 30% --that is allocated to housing debt and this would then determine the length of the loan. Right now the conventional length is a 30 year mortgage. In this case the mortgages might actually have to be 50 year mortgages to get the payments low enough. This should stabilize the market enough to allow people to stay in their current homes. It would definitely change the real estate market - making it harder to actually sell a home because the built up equity would not be there -- so some thought should be put into that problem too. Then going forward re-confirm the lending practices -- how much of the value of a home would be financed, how much of someone's income should be available for housing debt, the term of the mortgage, limit the flexibility for a few years of the interest rates charged. Then provide assistance programs for first time home buyers to help them come up with downpayments. That is my plan with a going forward plan for tightening up on predatory lending practices.
I should also give you another opinion about how to solve this crisis. Rather than bail out all the corporations and financial institutions, my husband believes that instead of bailing out we should just give every tax paying American citizen $1 million dollars to pay on their mortgage or to buy a home.... would probably cost the same as the bailout.
So there you have my thinking today. It may change next week or next month. And yes I am thinking that I will vote for Obama.
I have always been fascinated by economic theory. When I took my introductory course in economics we covered both macro and micro economics and I never missed a lecture. I probably would have taken more classes in economics if I had the luxury of unlimited time. But instead I have to rely on the talking heads to give me glimpses into current theories, sometimes conflicting opinons on what is happening and how to fix it. And what I have gathered from everything I have heard is that there are a lot of theories but no one really knows for sure what the real fix is. The reason is that there may be the right option embedded in all those theories but we can't agree on the path.
I have spoken with a lot of really smart and savvy people and some have really, really sharp minds and all of them say that we need to be prepared for an extended recovery period of several years. But the real question is whether the right theories are being followed by those who are trying to chart our path out of this mess. The wrong choice could extend the recovery timeline. And we are not just talking about national policy but international policy. It is possible that this is going to propel the paradym shift in international power.
So now that brings me back to politics. In the big scheme of things the economic policies of the two major political parties are far apart. Forget the people running for office and focus on the policies and try to make a judgement whether the current policy is working or whether a change in policy is needed. That is what will guide my vote in November. The individuals are both going to have a hard time their first few years in office and this crisis will resolve itself regardless of who is in office, with the benefit of reflecting favorably on the person in office if the recovery goes well. So the question I ask myself is what policy do I buy into and do I think the individual will implement it properly and can they implement it with the congress that they will have to work with. So there -- that is the big decision we all have to make. Of course there are other things that I am interested in and which also will effect my decision, but this is the big one, the deal breaker, the elephant in the room.
I have to say something about social conservatism and the Christian right. The republican party is not well served by the extremes of these philosophies. In fact the converse is also true, the democratic party is not well served by the extreme liberal philosophies. I believe that the majority of US citizens are much more moderate and tolerant in their opinions than either of these extremes. There are some things that act as lightning rods such as abortion and illegal immigration -- but on the majority of governance issues I think that there is more accord than not. What I am saying is that compromises could and should be made on the majority of goverment actions and that there should be an acceptance of agreement to disagree on the more difficult issues -- but that the majority rule needs to be honored. The problem as I see it is that there may not be a clear majority opinion, which implies that there is a real schizm in the country.
This schizm may be the warning canary of the gap developing in our society between the haves and the have-nots. I will have to think about this a little more.
I don't know the answer to how we resolve the abortion issue as a country, but I believe it is a personal choice up to a certain time in the pregnancy. I also believe that easily available abortions have changed our society -- and I have no religious issue here -- for the worse, making casual sex more acceptable because the consequences can be eliminated. This does erode our culture and our family unit. But I also believe that to totally prohibit abortions have costs both to individuals and to society, the burden of teenage pregnancies, the unwanted children, the health risks, illegal abortion clinics, etc. So as a result I believe that sex education is the absolutely right thing to do and that preventing unwanted pregnancies is important. In this role our religious institutions provide an important service. I do not agree that abortion should be legislated beyond where it is now. I also believe that we have a long way to go to reconcile the extremes on this issue and I would be alarmed if Roe v. Wade were reversed. Honestly, I want my granddaughter to have a choice and not to be trapped into a situation that was the result of immature and poor judgement on her part. Life's lessons are hard enough and the long term effect could ruin her future irrepairably.
Now the current mortgage crisis is a real problem which I am sure is very complex and will take a long time to resolve. But I was thinking that maybe it could be simplified. The big challenge is the loan workouts that need to happen. The banks did not get this done because they were so focused on their profits. They sort of bit off their nose to spite their face, don't you think?
I am sure there are a lot of solutions being considered but let me put my solution out there, it may be just too simple to take into consideration everything but here it is: Establish a nationwide mortgage interest rate and impose that rate on all mortgages made since 2005. The rate would have to be really low -- I am thinking maybe 3.5% or lower. Convert all the mortgages to this fixed rate and then base the term of the mortgage on the individual income of the mortgage holder. This means establish a standard percentage of total individual income -- say 30% --that is allocated to housing debt and this would then determine the length of the loan. Right now the conventional length is a 30 year mortgage. In this case the mortgages might actually have to be 50 year mortgages to get the payments low enough. This should stabilize the market enough to allow people to stay in their current homes. It would definitely change the real estate market - making it harder to actually sell a home because the built up equity would not be there -- so some thought should be put into that problem too. Then going forward re-confirm the lending practices -- how much of the value of a home would be financed, how much of someone's income should be available for housing debt, the term of the mortgage, limit the flexibility for a few years of the interest rates charged. Then provide assistance programs for first time home buyers to help them come up with downpayments. That is my plan with a going forward plan for tightening up on predatory lending practices.
I should also give you another opinion about how to solve this crisis. Rather than bail out all the corporations and financial institutions, my husband believes that instead of bailing out we should just give every tax paying American citizen $1 million dollars to pay on their mortgage or to buy a home.... would probably cost the same as the bailout.
So there you have my thinking today. It may change next week or next month. And yes I am thinking that I will vote for Obama.
Wednesday, September 17, 2008
Act Locally - VOTE
New subject for a quick comment. Why are there so few actual voters that vote in local elections? I think we are going to see an enormous turnout for this coming election but where will they go when the town or the state holds their next elections.
I can not believe that the little town of Herndon has less than 2,500 active voters in local elections. Are we all so complacent and comfortable that we can't make the effort to get out to vote? Do we not think that these smaller arenas of politics are important? Please think again, voting is one of the very few ways that we as citizens have a voice. Don't you feel it is important to be heard to effect the character and fabric of your own community. No matter what party you are affiliated with, no matter whether you don't see the results or like me are always on the losing side, it is still so very important to vote. Don't abdicate your opportunity or your rights as a citizen by a laisse-faire, it will all work out kind of attitude. Don't wait for something bad to emerge before you wake up and think, I should have voted. History proves that when a population does not exert its ability to make choices and decisions, the more organized and sometimes intolerant fringe groups can impose their will on the majority before they know what hit them. So my message is VOTE!! VOTE!!! VOTE!!!
I can not believe that the little town of Herndon has less than 2,500 active voters in local elections. Are we all so complacent and comfortable that we can't make the effort to get out to vote? Do we not think that these smaller arenas of politics are important? Please think again, voting is one of the very few ways that we as citizens have a voice. Don't you feel it is important to be heard to effect the character and fabric of your own community. No matter what party you are affiliated with, no matter whether you don't see the results or like me are always on the losing side, it is still so very important to vote. Don't abdicate your opportunity or your rights as a citizen by a laisse-faire, it will all work out kind of attitude. Don't wait for something bad to emerge before you wake up and think, I should have voted. History proves that when a population does not exert its ability to make choices and decisions, the more organized and sometimes intolerant fringe groups can impose their will on the majority before they know what hit them. So my message is VOTE!! VOTE!!! VOTE!!!
A Nation of Debtors
We have become accepting of debt as if it were nothing to be concerned about. But I remember when I was young and the goal of every adult I knew was to get out of debt. To pay off the mortgage and the car loan and to eliminate debt from their lives. This was the time when getting a loan required collateral and there were limits on how much you could borrow on just your signature. It was a time when you bought a house not for an investment but for shelter and to raise your family. It was a time when credit cards were limited and every department store had its own credit card. Do you remember Sears Roebuck where America bought their appliances, tractors, lawn mowers, fabric to make their own clothes, and shopped the catalog?
We now have credit cards being sent in the mail to college students, credit limits increasing on cards you have without asking, and people don't have just one or two credit cards -- they have 10 0r more! Translate this into the national mentality and you will know why the federal debt is so huge.
We need to get back to the idea that you save for something you want not borrow, that you sacrifice for the luxuries of life. This sense of entitlement and desire to have it all is out of control. We need to live within our means and not try to speed up the attainment of our aspirations. We have become a society requiring instant gratification, planned obsolescence and the easy road to success.
What does this have to do with politics? Think about it, we just bailed out Fannie Mae and Freddie Mac and AIG. Saved by the goverment, not left to deal with problems of their own making, too big to let fail. No wonder there is no sense of doom that the country is in debt in the amount of $9,636,985,481,135.92 as of today. (http://www.brillig.com/debt_clock/)
If these companies do not self regulate (lets face it greed wins out over self control everytime) then it is up to the government to establish parameters and strict oversight. Companies this large loose the moral character needed to impose reasonable restrictions on themselves. While it is leadership, leaders can only do so much in a large stockholder driven conglomerate. Then again leaders can also do a lot to establish a corporate culture that in a limted way can balance the greed and profit driven pressures.
Now reality is that stockholders are you and me. We are invested in our retirement funds, our bank accounts and our homes. It is natural to want to see returns and profits but again I get back to balance, the yen and yang of our market driven, capitalist society. Dont' get me wrong, I LOVE capitalism. It is what gives us opportunity and hope for a better life, but what I don't love is the separation we have from our own lives and the investments we make. We are not invested in our local bank, that we visit everyday and whose customers are our neighbors. The closest I can get to this is my experience with credit unions. The board is elected by the members, you have to be a member to use the services and if you want a loan you have to give details on your financial situation to a credit committee made up of your neighbors, co-workers or friends. This was debt creation up close and personal. Your friends were not going to give you a loan you could not afford. And if they did not give you the loan they told you why and also what you could do to get a loan in the amount you wanted - collateral or a co-signer or a bigger down payment to lower the amount of the loan. Pretty straightforward and that is where responsible lending and borrowing should start, with people that know the community and the people in it.
How have we reached this very sad state? Well we have raised our children to expect more. Though our own hard work and sacrifice, we gave them the opportunities and extras that we did not have. When was the last time you were in a home without a dishwasher. Would you rent an apartment without one now? It is expected and has moved from a luxury to a necessity. Ka-ching, ka-ching -- all these things add up and it is no wonder that our children go into debt for all the material comforts they had growing up. New not handed down clothes, new cars not old reliable transportation, the latest and greatest toy or gadget -- all these things are must haves for our younger generation. And we did it folks.
Now I predict that unless we figure out how to impose moderation on ourselves, this country is going to weaken and lose critical world standing. We need to stop trying to be the saviour of the world and focus on our own needs. Too many countries rely on us for aid, we are fighting a war that is costing us is more ways than money, we are not taking care of our own -- we need to focus on education at all levels, we need to participate in the world economy in ways that support our population -- creating jobs, training, social policies and programs that solve problems in proactive ways with long term goals to improve our country and its citizens.
We need responsible and enforceable immigration laws. Our laws and policies need a major overhaul. But we need to stop building fences and start creating positive ways to supplement our work force and solve the illegal immigrant issues by creating avenues that deal with the issue in humane and intelligent ways -- not with hate, anger and failing to get to the root of the problem - our restrictive immigration policies. Don't make illegal immigrants legal but provide a special temporary work permit which allows them to work while paying taxes and social security into a system that needs this to support the services that we are providing anyway. Embrace them and tax them don't shuffle them off from place to place, spend money catching, housing and deporting them. Right now they are successfully avoiding the system, bring them into the system so you can control them. The path of least resistence is often the solution. Create the day labor sites, provide temporary work permits and tax id numbers, collect taxes and social security, enforce the minimum wage laws and the worker rights, remove the black market and create the brown market that we control. And streamline the process for immigrants who contribute to our societal fabric to become contributing members -- make it easier to get the green card or to become a citizen. If social security is going to collapse because of slowing population growth and the retirement of baby boomers, lets beef up the ranks of contributors. Doesn't this make sense? And there seems to be a little justice to it also, my retirement being supported by new immigrants paying into our social system.
Well I guess I will have to get off my soapbox now and hope that this makes sense to someone out there.
We now have credit cards being sent in the mail to college students, credit limits increasing on cards you have without asking, and people don't have just one or two credit cards -- they have 10 0r more! Translate this into the national mentality and you will know why the federal debt is so huge.
We need to get back to the idea that you save for something you want not borrow, that you sacrifice for the luxuries of life. This sense of entitlement and desire to have it all is out of control. We need to live within our means and not try to speed up the attainment of our aspirations. We have become a society requiring instant gratification, planned obsolescence and the easy road to success.
What does this have to do with politics? Think about it, we just bailed out Fannie Mae and Freddie Mac and AIG. Saved by the goverment, not left to deal with problems of their own making, too big to let fail. No wonder there is no sense of doom that the country is in debt in the amount of $9,636,985,481,135.92 as of today. (http://www.brillig.com/debt_clock/)
If these companies do not self regulate (lets face it greed wins out over self control everytime) then it is up to the government to establish parameters and strict oversight. Companies this large loose the moral character needed to impose reasonable restrictions on themselves. While it is leadership, leaders can only do so much in a large stockholder driven conglomerate. Then again leaders can also do a lot to establish a corporate culture that in a limted way can balance the greed and profit driven pressures.
Now reality is that stockholders are you and me. We are invested in our retirement funds, our bank accounts and our homes. It is natural to want to see returns and profits but again I get back to balance, the yen and yang of our market driven, capitalist society. Dont' get me wrong, I LOVE capitalism. It is what gives us opportunity and hope for a better life, but what I don't love is the separation we have from our own lives and the investments we make. We are not invested in our local bank, that we visit everyday and whose customers are our neighbors. The closest I can get to this is my experience with credit unions. The board is elected by the members, you have to be a member to use the services and if you want a loan you have to give details on your financial situation to a credit committee made up of your neighbors, co-workers or friends. This was debt creation up close and personal. Your friends were not going to give you a loan you could not afford. And if they did not give you the loan they told you why and also what you could do to get a loan in the amount you wanted - collateral or a co-signer or a bigger down payment to lower the amount of the loan. Pretty straightforward and that is where responsible lending and borrowing should start, with people that know the community and the people in it.
How have we reached this very sad state? Well we have raised our children to expect more. Though our own hard work and sacrifice, we gave them the opportunities and extras that we did not have. When was the last time you were in a home without a dishwasher. Would you rent an apartment without one now? It is expected and has moved from a luxury to a necessity. Ka-ching, ka-ching -- all these things add up and it is no wonder that our children go into debt for all the material comforts they had growing up. New not handed down clothes, new cars not old reliable transportation, the latest and greatest toy or gadget -- all these things are must haves for our younger generation. And we did it folks.
Now I predict that unless we figure out how to impose moderation on ourselves, this country is going to weaken and lose critical world standing. We need to stop trying to be the saviour of the world and focus on our own needs. Too many countries rely on us for aid, we are fighting a war that is costing us is more ways than money, we are not taking care of our own -- we need to focus on education at all levels, we need to participate in the world economy in ways that support our population -- creating jobs, training, social policies and programs that solve problems in proactive ways with long term goals to improve our country and its citizens.
We need responsible and enforceable immigration laws. Our laws and policies need a major overhaul. But we need to stop building fences and start creating positive ways to supplement our work force and solve the illegal immigrant issues by creating avenues that deal with the issue in humane and intelligent ways -- not with hate, anger and failing to get to the root of the problem - our restrictive immigration policies. Don't make illegal immigrants legal but provide a special temporary work permit which allows them to work while paying taxes and social security into a system that needs this to support the services that we are providing anyway. Embrace them and tax them don't shuffle them off from place to place, spend money catching, housing and deporting them. Right now they are successfully avoiding the system, bring them into the system so you can control them. The path of least resistence is often the solution. Create the day labor sites, provide temporary work permits and tax id numbers, collect taxes and social security, enforce the minimum wage laws and the worker rights, remove the black market and create the brown market that we control. And streamline the process for immigrants who contribute to our societal fabric to become contributing members -- make it easier to get the green card or to become a citizen. If social security is going to collapse because of slowing population growth and the retirement of baby boomers, lets beef up the ranks of contributors. Doesn't this make sense? And there seems to be a little justice to it also, my retirement being supported by new immigrants paying into our social system.
Well I guess I will have to get off my soapbox now and hope that this makes sense to someone out there.
Friday, September 12, 2008
Decisions Decisions -- Oh My
Obama McCain Obama McCain -- where is Hillary when you need her?
Okay so Al and I have been watching the conventions, the speeches, the talking heads and trying to make sense out of it all. As usual the two of us are leaning in opposite directions. Sarah Palin shook things up a bit but I am still pretty solidly Democratic after learning more about her and filtering out her charisma. But it sure is interesting watching the process. It actually gives me hope that change will really happen but you know I doubt if either candidate will get much movement on that one.
I think that McCain is a great hero and deserves recognition for the service he has given his country, but in the end Obama is the one I want to see making decisions in the White House. If I look at the issues and the solutions being offered I find that Obama most closely matches my own beliefs and opinions. I also am looking for someone who is not afraid to modify, change or even reverse their stand on an issue as circumstances and information change -- to me it is important to have someone who is not afraid to do this -- instead of stubbornly maintaining a position that with a little compromise and modification could be made more tenable to others. It is also necessary to be firm and strong when necessary but as the song says "know when to fold 'em."
Clearly, there are some differences in positions but much is similar with the two candidates (except their choices in VP running mates) but I am wondering if it does not come down to judgement and how they make decisions. I am very wary of McCain's judgment and also some of the choices he has made in this election season. I worry that he may have sold a small piece of his soul in his bid for president. Obama is smooth and very focused on keeping the election about the issues. I respect that about him and hope that as the days go on he is able to stay on the issues and not be distracted by the silliness of pigs and lipstick.
Okay so Al and I have been watching the conventions, the speeches, the talking heads and trying to make sense out of it all. As usual the two of us are leaning in opposite directions. Sarah Palin shook things up a bit but I am still pretty solidly Democratic after learning more about her and filtering out her charisma. But it sure is interesting watching the process. It actually gives me hope that change will really happen but you know I doubt if either candidate will get much movement on that one.
I think that McCain is a great hero and deserves recognition for the service he has given his country, but in the end Obama is the one I want to see making decisions in the White House. If I look at the issues and the solutions being offered I find that Obama most closely matches my own beliefs and opinions. I also am looking for someone who is not afraid to modify, change or even reverse their stand on an issue as circumstances and information change -- to me it is important to have someone who is not afraid to do this -- instead of stubbornly maintaining a position that with a little compromise and modification could be made more tenable to others. It is also necessary to be firm and strong when necessary but as the song says "know when to fold 'em."
Clearly, there are some differences in positions but much is similar with the two candidates (except their choices in VP running mates) but I am wondering if it does not come down to judgement and how they make decisions. I am very wary of McCain's judgment and also some of the choices he has made in this election season. I worry that he may have sold a small piece of his soul in his bid for president. Obama is smooth and very focused on keeping the election about the issues. I respect that about him and hope that as the days go on he is able to stay on the issues and not be distracted by the silliness of pigs and lipstick.
Tuesday, August 12, 2008
Time Perspective
I heard today that the value of the dollar is improving overseas. This supposedly has lead to the cost of oil going down so one would assume that the cost of gas will begin to decline here in the states. This leads me to think about a couple of things having to do with economics and our country. First we have a huge trade deficit and I think that this means that we import more than we export. With the weak dollar this deficit was getting smaller because foreign buyers could get more for their money. If the dollar gets stronger than this trend could reverse.
Which leads me to the huge budget deficit which basically means we spend more than we earn or take in leaving the expenses exceeding our income. In a household budget, this would lead to belt tightening or borrowing. I think that this deficit worries me more than any other economic indicator. Jobs, social security, recession, inflation, mortgage crisis, etc.
Does anyone else realize that we are in the midst of a huge global power shift? China and India are on the ascent and the US is stagnating. We need to look ahead and plan on being true partners with the rest of the world. We can not stand alone as Iraq is proving. What a mistake that was. And South America will be coming into its own soon too I think. So we need to learn to play nice with others. I am so tired of all this saber rattling and ultimatum foreign policy. We have been working on a seige mentality since 9-11 and as a result we have become something that I find I do not like. I see personal freedoms and privacy disappearing and understand the reasons but still regret their loss. I hope that we can pull back to something more reasonable.
I also think that the age of information is transitioning to something else. What that is I don't know but there is a next big thing coming and it might be related to energy or the global warming problem. I just sense that there is something and I don't know if it is good or bad, but I think it is big.
The country's leaders do not seem to be able to agree on how to avoid burdening our future generations with huge debts and to come to some agreements. Our political parties are stalemated over how to proceed. As a result they get nothing done, ABSOLUTELY NOTHING. This is frustrating to me to watch. Congress and the Senate have reached no resolution on any of the major problems that face this country. Our political partylines are getting in the way of good governance. Political debt and obligations to follow the leader just result in deadlock. Someone needs to break these ties that bind. The threat of a Presidential veto should not stop good decisions from being put forth. I understand that these issues are complex and that there are domino effects to every choice, but short of revolution, what choice do we have but to make some really significant changes in the way we do things. Something has got to give or we will have another 4 years of this unproductive environment.
I consider myself pretty middle of the road politically, no real extreme opinions but perhaps a little liberal leaning. I tend to agree with some of the ideas from both political parties and have always been an independent voter. My record is pretty bad, the guy I vote for does not usually get elected. But at least I vote. That is a pet peeve of mine, people who don't vote. So if you read this and don't vote, shame on you. Get out there and make your voice heard.
But I was really disappointed that Hillary Clinton is not the Democratic Party nominee. Besides the fact that I think this country needs a woman, I think that she and John Cain would really shake the status quo up. I like them both. I like Obama too but I really worry that he has a naive take on the presidency.
Even the Clinton's experienced problem's dealing with the established politicos when they came to Washington. It is really, really hard to change Washington politics. Let me go on record now as saying that I believe that Bill Clinton was a good president and I believe that George W. Bush for all his good intentions has not served this country well with his decisions or his advisors. I liked the first George Bush. So I really am apolitical in my likes and dislikes.
I am not sure what purpose blogs serve. Maybe they are merely a way for a frustrated average person to have their say. Or maybe it is merely belly button gazing for the challenged. So there you have it, today's point of view. I reserve the right to change my point of view, play devil's advocate and deny any responsibility for anything I say.... how is that for a fledgling disclaimer?
Which leads me to the huge budget deficit which basically means we spend more than we earn or take in leaving the expenses exceeding our income. In a household budget, this would lead to belt tightening or borrowing. I think that this deficit worries me more than any other economic indicator. Jobs, social security, recession, inflation, mortgage crisis, etc.
Does anyone else realize that we are in the midst of a huge global power shift? China and India are on the ascent and the US is stagnating. We need to look ahead and plan on being true partners with the rest of the world. We can not stand alone as Iraq is proving. What a mistake that was. And South America will be coming into its own soon too I think. So we need to learn to play nice with others. I am so tired of all this saber rattling and ultimatum foreign policy. We have been working on a seige mentality since 9-11 and as a result we have become something that I find I do not like. I see personal freedoms and privacy disappearing and understand the reasons but still regret their loss. I hope that we can pull back to something more reasonable.
I also think that the age of information is transitioning to something else. What that is I don't know but there is a next big thing coming and it might be related to energy or the global warming problem. I just sense that there is something and I don't know if it is good or bad, but I think it is big.
The country's leaders do not seem to be able to agree on how to avoid burdening our future generations with huge debts and to come to some agreements. Our political parties are stalemated over how to proceed. As a result they get nothing done, ABSOLUTELY NOTHING. This is frustrating to me to watch. Congress and the Senate have reached no resolution on any of the major problems that face this country. Our political partylines are getting in the way of good governance. Political debt and obligations to follow the leader just result in deadlock. Someone needs to break these ties that bind. The threat of a Presidential veto should not stop good decisions from being put forth. I understand that these issues are complex and that there are domino effects to every choice, but short of revolution, what choice do we have but to make some really significant changes in the way we do things. Something has got to give or we will have another 4 years of this unproductive environment.
I consider myself pretty middle of the road politically, no real extreme opinions but perhaps a little liberal leaning. I tend to agree with some of the ideas from both political parties and have always been an independent voter. My record is pretty bad, the guy I vote for does not usually get elected. But at least I vote. That is a pet peeve of mine, people who don't vote. So if you read this and don't vote, shame on you. Get out there and make your voice heard.
But I was really disappointed that Hillary Clinton is not the Democratic Party nominee. Besides the fact that I think this country needs a woman, I think that she and John Cain would really shake the status quo up. I like them both. I like Obama too but I really worry that he has a naive take on the presidency.
Even the Clinton's experienced problem's dealing with the established politicos when they came to Washington. It is really, really hard to change Washington politics. Let me go on record now as saying that I believe that Bill Clinton was a good president and I believe that George W. Bush for all his good intentions has not served this country well with his decisions or his advisors. I liked the first George Bush. So I really am apolitical in my likes and dislikes.
I am not sure what purpose blogs serve. Maybe they are merely a way for a frustrated average person to have their say. Or maybe it is merely belly button gazing for the challenged. So there you have it, today's point of view. I reserve the right to change my point of view, play devil's advocate and deny any responsibility for anything I say.... how is that for a fledgling disclaimer?
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