Friday, December 12, 2008
Wednesday, December 03, 2008
More Bailouts
So the bailout proceeds without oversight. What else is new?
How about more criminal investigations of the SEC and securities appraisers? Investigate the SEC and the securities ratings services and a lack of competition.
Will the bailouts prop up prices? Will that help the little guy? What will help the smallholders?
Assumptions about future financial situations should be absent from mortgage arrangements, which would void any ARM contracts in favor of the teaser rate. Avoiding raising the ARMS is an aim of low interest rates, which leaves depositors taking the low interest rate hit. How about lowering the price instead of the interest rates? More sales would result, while maintaining a reasonable rate of return for depositors. Lowering prices would be more beneficial to more people than lowering interest rates.
Of course, lowering prices would create more upside down debt, where people owe more than the goods they bought with borrowed money are worth. It is safe to say that this posited situation of lower prices for real estate and goods would benefit more people than those who indebted themselves. Fair interest rates for depositors would raise the level of deposits, regaining real capital.
If the people running things profit from higher prices at the expense of most of the rest of us, policy reviews are in order.
Engineered inflation and constant growth are untenable positions in a finite world. Cancel the construction and sale of debt based securities, as they produce nothing of real value, only taxpayer supported gambling debt.
Let Las Vegas handle the gambling.
How about more criminal investigations of the SEC and securities appraisers? Investigate the SEC and the securities ratings services and a lack of competition.
Will the bailouts prop up prices? Will that help the little guy? What will help the smallholders?
Assumptions about future financial situations should be absent from mortgage arrangements, which would void any ARM contracts in favor of the teaser rate. Avoiding raising the ARMS is an aim of low interest rates, which leaves depositors taking the low interest rate hit. How about lowering the price instead of the interest rates? More sales would result, while maintaining a reasonable rate of return for depositors. Lowering prices would be more beneficial to more people than lowering interest rates.
Of course, lowering prices would create more upside down debt, where people owe more than the goods they bought with borrowed money are worth. It is safe to say that this posited situation of lower prices for real estate and goods would benefit more people than those who indebted themselves. Fair interest rates for depositors would raise the level of deposits, regaining real capital.
If the people running things profit from higher prices at the expense of most of the rest of us, policy reviews are in order.
Engineered inflation and constant growth are untenable positions in a finite world. Cancel the construction and sale of debt based securities, as they produce nothing of real value, only taxpayer supported gambling debt.
Let Las Vegas handle the gambling.
Monday, November 24, 2008
BAILOUT BLUES
Another bailout? This time to Citigroup. What’s a few more billion? Job stimulus packages are much smaller, however.
Tell me why this money can’t be funneled directly to the funds put together by the taxpayer? Like in Arizona, the state retirement fund, county funds and other governmental funds lost money on the Lehman bankruptcy.
So bailout the important funds that belong to the taxpayer, not the lending institutions who sold fraudulent securities to USA retirement, state, county and county funds. Give these funds the bailout money. Give them back the money they lost and don’t funnel it through more brokers. The Feds should take applications based on investor losses, skip the corrupt middlemen, and deal with the American citizens represented by their local governments who lost money. This would infuse money into local economies where job losses are escalating. Let these citizen funds decide investment in local projects with projected returns paying into the funds through existing taxes. We need a long term fix on this problem of exporting our local money to be lent out in Ponzi schemes.
How about more criminal investigations of these scams? We need law and order, not more burglary.
We need simplification. We need our money back. Thieves stole our funds as they sold bogus securities to the fund managers, who took the word of appraisers and raters and bought this garbage. Giving the thieves our tax money to give to the lenders to lend to us again to buy price inflated goods again is not an economic system. It’s a milking machine.
Tell me why this money can’t be funneled directly to the funds put together by the taxpayer? Like in Arizona, the state retirement fund, county funds and other governmental funds lost money on the Lehman bankruptcy.
So bailout the important funds that belong to the taxpayer, not the lending institutions who sold fraudulent securities to USA retirement, state, county and county funds. Give these funds the bailout money. Give them back the money they lost and don’t funnel it through more brokers. The Feds should take applications based on investor losses, skip the corrupt middlemen, and deal with the American citizens represented by their local governments who lost money. This would infuse money into local economies where job losses are escalating. Let these citizen funds decide investment in local projects with projected returns paying into the funds through existing taxes. We need a long term fix on this problem of exporting our local money to be lent out in Ponzi schemes.
How about more criminal investigations of these scams? We need law and order, not more burglary.
We need simplification. We need our money back. Thieves stole our funds as they sold bogus securities to the fund managers, who took the word of appraisers and raters and bought this garbage. Giving the thieves our tax money to give to the lenders to lend to us again to buy price inflated goods again is not an economic system. It’s a milking machine.
Wednesday, November 19, 2008
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