One of our readers pointed out a comment by Senator Biden in last week's Vice Presidential debate that called for extending the authority of government to not only buy up toxic assets but to reset the value of the principle owed. This isn't the first time we've recently heard Democratic leaders talking about changing principle values. It's predictable really and just an extension of the core philosophy of Progressive thought.
The reasoning behind the move is to adjust principle values for properties that were bought at higher market values to current market conditions in order to protect those who are "upside down" in their homes. In other words, these property owners are in a situation where they owe more than the property is worth.
(Sidebar)It's the type of policy that warms the cockles of most Progressive's hearts. But it's also the type of dangerous policy that - despite the $700 BILLION Bailout and Pork-fest passed by Congress - would ultimately make money harder for home buyers to get.
Over the past few weeks the concept of a free market has taken somewhat of a beating. The fact is that we are the market. Our freedom to negotiate the exchange of goods or services is a foundational part of our individual liberty. When we lose the freedom of exchange we lose the freedom to be rewarded for our achievements.
(End Sidebar)
Say for example, you and your neighbor engage in a voluntary transaction where you loan your lawn mower and your weed whacker to them. The neighbor agrees not only to repay (return) your lawn mower and weed whacker but to refill their gas tanks and provide you with an additional gallon of gas.
The lawn mower and weed whacker are the principle, the gas is the interest. Along comes Barrack Hussein O'Biden who decide that the extra gas is really asking for too much. In addition, your neighbor who can't afford to maintain their lawn really needs your weed whacker to help them. So the O'Biden boys change the terms of your agreement forgiving them the additional gallon of gas and allowing your neighbor to keep your weed whacker.
What do you think will happen the next time your neighbor shows up on your doorstep to borrow something? That's right... you're not gonna' give him the time of day fearing the O'Biden boys will show up and make you pay for it.
Government intervention in a private transaction never benefits either party. The lender loses money and stops lending. The borrower ultimately ends up unable to borrow what they need. The only "winner" is the politician who convinces the borrower that they're getting something for free and that their benefactor is the intervening politician.
In addition, Obama and Biden are hawking a "progressive" tax scheme that they claim only raises taxes on those rich people who make over $250,000 a year. Like the O'Biden idea of allowing the government to reset principle amounts, this Robin Hood tax policy is appealing until you take a look at who actually pays.
Who are these evil "rich people" that should be required to pay more of their earnings? As you drive around town take a look at all of those local businesses that line the major streets. They're hardware stores, lock smiths, beauty salons, pet groomeries, and restaurants. These are your friends and neighbors that have invested their money, time, sweat, and tears in a business that they believe in. These are the people that make Albuquerque unique - not the big boxes, department stores, and chain restaurants that can be found in any city anywhere in the country. And these are the very people that O'Biden propose to increase taxes on.
When faced with increased taxes small businesses look at the increase as an increase in the cost of doing business. Their only choices are to absorb the increased cost of doing business, increase prices to their customers, or go out of business. So you see, the middle class - those who Obama and crew claim to be protecting - really face higher prices or the loss of goods or services.
If that sounds familiar that's because it's no different that the lender who makes a contract with a borrower to lend a specific amount of money for a set amount of profit who has both the profit and the amount to be repaid arbitrarily set by some politician.
You'll hear The Anointed One and his chief acolyte Biden talking about fairness. What is fair about forcing someone whose hard work earns them an amount of wealth that is in excess of some arbitrary line? What is fair about changing the terms of a freely and legally negotiated contract?
What Obama proposes is no different than the local hoodlum stealing your wallet at knifepoint. Make no mistake, if Obama becomes President he will work to take from those who have earned in order to give to those who haven't. The middle class will pay for that redistribution through higher prices for goods and services, and shortages caused by small businesses that are unable to absorb Obama's small business hold-up.
Democratic leaders have long advocated this type of theft as a policy - stealing from one group to give to another in exchange for political power. In this way (as in many others) Obama isn't change - he's the logical result of class warfare politics, the stock and trade of the Democratic Party since the '30's.
We don't believe that your everyday Democrat truly believes that it's right to steal. We believe that they're good people who want to see everyone succeed. The problem is success cannot be given, it has to be earned. And while there's little doubt that Republicans lost their way... It is certain that an Obama Presidency would be a gigantic leap toward more government, more taxes, and less liberty.
25 comments:
Your little weed wacker analogy is a bit simplistic. In the mortgage game, that neighbor ends up paying an entire gas station for the damn weed wacker.
When a bank deigns to loan you money for a home, they have already made damn sure all the rules are designed in their favor and you (the producer) will pay and pay.
Why is interest paid up front to the bank? Does nobody ever consider this neat little 'free market' trick: Pay $1200 a month on your $150k loan for 10 years and STILL less than $250 out of each payment goes to principle.
That means YOU HAVE ALREADY PAID AN AMOUNT EQUIVALENT TO THE PRICE OF THE HOME TO THE MORTGAGE COMPANY, BUT you still owe $120k and 20 more years of interest.
Right - talk to me about stealing from one group to give to another . . .
Were you drunk when you wrote this Eye? It makes no sense whatsoever. Biden wasn't talking about going out and forcing banks to write down the principle on mortgages they own, he was talking about the Government itself writing down the principle on some of the loans it will be acquiring through the bailout. The reason that this *may be* desirable is that, from the debt owner standpoint, its better to get some of the debt owed back than none of it - they're trying to prevent defaults. Defaults are damaging to both the borrower (lost house, destroyed credit rating) and the lender (usually only get one fifth the debt owed back).
The fact that you're trying to frame this as some kind of wealth redistribution scheme is laughable. Its actually an attempt save the economy as a whole from the excesses of the free market that you're such a proponent of.
You claim that this is "stealing from one group to give to another" - the former are the ones getting bailed out here (owners of mortgage backed securities) and the latter are so far getting nothing, though there are discussions about doing something for them in the future. I went through your archives and couldn't find where you complained about the Bush administration spending the last seven years stealing from future generations - to the tune of $5 Trillion - to enrich their buddies in the military contracting and oil industries today. Apparently in the Eye world "stealing" from the rich and giving to the poor is bad but stealing from the children/unborn and giving to the rich is hunky-dory.
First poster, it works that way so that lenders will actually risk capital, if it didn't work that way you have two choices, either the Govt. backs and provides the housing dollars for all which would entail enourmous amounts of tax raised captial [the current mess is based on a default rate of what, 10% of the high risk borrowers defaulting vs. what would essentially be everyone if the govt takes it over]. Barring that, save enough money to buy it outright.
My 1st example is socialism and the 2nd example is impossible.
No one wants to bail out the banks but it is sort of like watching a crook drown in fast water, you dont want to risk your stuff to help him, but then you notice that he has a rope and the other end is tied to your friends who for the moment are safe and dry on the bank, but if he goes down he will drag them with.
I was hoping that Biden mis-spoke when he made that comment, but I guess not.As tidy as that sounds to say that he was only talking about writing down the principle on a few homes that the govt. is holding the note on anyway let me point out that if you live next door to one of them and I was asked to run a price analysis of your home that neighbor's [new] value will be included in the mix. Devaluing your home.
Not planning on selling and ok with that? Ok, then consider that his property taxes are likely to reflect that new value while your's will remain the same.
Starting to think that he may be receiving welfare while you are still paying the [total] bills for your house?
By comparison, if he defaults, his home will eventually sell at something close to market value and even if that takes a year it is not going to dick up your home's value.
As mean as that sounds remember that unless these people are functionally retarded and didn't get the math, they mostly have no excuse for not "getting" the facts that were explained to them by a lender, a Realtor, and a closing person at the title company and given to them in writing several times along the way between contract and closing of escrow.
Who cares.....! See ya' distraught Republicans January, 2009 when Obama takes the White House.
The weed whacker analogy is right on! Mortgage companies have been dealing this way for decades. People need to take some responsibility and pay down their principal every year, maybe with their tax return instead of the trip to Disney Land. Refinacing a home for luxuries is criminal and leaves the homeowner upside down.
What's new? Were the no interest down loans that were padded so the new poor homeowner, who couldn't afford the house payment in the first place, had extra money to furnish their homes. Did they make payments, maybe some, but most didn't make any. Hey, who wouldn't take that deal, but now it's time for them to pay for themselves. They've lived in these houses for years as if the middle class owes it to them.
Maybe instead of the big screen TV's they should have thought about their shelter and have some pride.
When we keep giving we keep enabling. Keep putting the bird seed out and there will be poop all over your yard.
How much more can we be screwed than we already have been by the Repugs in office for the last 8 years? Are we supposed to bend over and take it for 4 more years?
How do you like the Economy? President Ronald Ray-gun's 'trickle down economy' worked wonders, didn't it?
George Bushie must have gotten his Harvard MBA as a 'legacy' of his last name. I know his undergraduate studies was a Yale Cheer Leader.
McSame who would have been thrown out of the Naval Academy had not his father and grandfather been Admirals graduated 5th from the BOTTOM of his class. McSame said he 'doesn't know much about the economy.'
Sarah Palin? The Journalism major and former news anchor won't answer questions, doncha know, Joe Six Pack?
Throw these idiots OUT. They have screwed the country into a Depression.
Oh lord, when did all these Libs discover this blog? It used to be fun, then for a while it was funny, now it is just pathetic
Can't they fire up the soup lines, right before the election to drive home the point of our "Financial fundamentals are on solid foundation"? The economy is gonna be what does the "War Hero" in!
Ya know, up here in Alaska (wink wink) we are darn on it when it comes to "Joe six pack"!
The ratio of men to women is about 100-1. Just think if you're adorable! I just may want to move up there in Alaska.
This blog is still fun if you have a sense of humor, if not don't post.
Retards you all are. It's not about mortgage backed securities. It's about the $45TRILLION unregulated (that means FREE MARKET in eye-speak) trade of Credit Default Swaps that brought this house down. Get off your rose colored party tinted glasses and wake up.
How dare anyone mock the Repubs. How dare anyone have a choice of partys in this free country. How dare us come onto "your" blog and make fool's out of your dumb so called "conservative" views. How dare us be different than you. Whats pathetic is your trying to make us buy into your way of thinking while your fellow Repub. G.W. has driven this country into the ground. Whats pathetic is you now blame Clinton. Talk about desperate. haha
Concur, Im not retarded and it is an unfair and cruel label. A label that should not be used, although if I had to describe Barney Frank........
Get out of YOUR box retard. And the people who weren't offended weren't meant to be offended.
Amazing. The first ever global depression will go down in history horribly misunderstood. What a pathetic bunch of ignorant fools we have become. Consumer junkie credit card morons. Perfect little victims. Say that reminds me.
Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold ALMOST 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, offshore accounts, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST ONE PERCENT HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars which have been transfered FROM US TO THEM. All over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They just keep getting richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductible crumbs and call themselves ‘humanitarians’. Cashing in on the PR and getting even richer the following year. IT CAN’T WORK THIS WAY. Their bogus efforts to make the world a better place can not possibly succeed. Any ‘humanitarian’ progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. So don’t fall for any of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductible contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. Crime, poverty, and suicide will skyrocket. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. IF IT WEREN’T FOR THE OBSCENE, UNREASONABLE, AND UNJUST DISTRIBUTION OF UNITED STATES WEALTH, THERE NEVER WOULD HAVE BEEN SUCH A MARKET FOR SUB-PRIME AND THERE NEVER WOULD HAVE BEEN A COLLAPSE IN THE HOUSING MARKET. Sub-prime did not cause the problem. It only accelerated the outcome. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah Winfrey, Ellen DeGeneres, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. In fact, they specifically endorsed Countrywide by name. The same Countrywide widely responsible for predatory adjustable rate sub-prime lending and the accelerated collapse of the housing market. ENDORSED BY OPRAH WINFREY, ELLEN DEGENERES, AND DR PHIL. Now, there are commercial ties between nearly every industry and every public figure. IT MAKES THEM RICHER. It also drives up the cost for nearly every product and service on the market. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool. No offense fellow citizens. But we have been mislead by nearly every public figure. We still are. Even now, they claim to be ‘hurting’ right along with the rest of us. As if gas prices actually effect the lifestyle of a millionaire. ITS A LIE. IN 2007, THE RICHEST 1% INCREASED THEIR AVERAGE BOTTOM LINE WEALTH AGAIN. On average, they are now worth over $4,000,000 each. Thats an all time high. As a group, they are now worth well over $17,000,000,000,000. THATS WELL OVER SEVENTEEN TRILLION DOLLARS. Another all time high. Which by the way, is much more than the entire middle and lower classes combined. Also more than enough to pay off our national debt, fund the Iraq war for a decade, repair our infrastructure, and bail out the US housing market. Still think that our biggest problem is China? Think again. Its the 1% club. That means every big name celebrity, athlete, executive, entrepreneur, developer, banker, and lottery winner. Along with many attorneys, doctors, and politicians. If they are rich, then they are part of the problem. Their incredible wealth was not ‘created’, ‘generated’, grown in their back yard, or printed up on their command. It was transfered FROM US TO THEM. Directly and indirectly. Its become near impossible to spend a dollar without making some greedy pig even richer. Don’t be fooled by the occasional loss of a millionaire’s fortune. Overall, they just keep getting richer. They absolutely will not stop. Still, they have the nerve to pretend as if they care about ordinary people. ITS A LIE. NOTHING BUT CALCULATED PR CRAP. WAKE UP PEOPLE. THEIR GOAL IS TO WIN THE GAME. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Reaganomics. Their idea. Loans from China. Their idea. NAFTA. Their idea. Outsourcing. Their idea. Sub-prime. Their idea. High energy prices. Their idea. Oil ‘futures’. Their idea. Obscene health care charges. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. The multi-million dollar endorsement deal. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. Brainwash plots on TV. Their idea. Vioxx, and Celebrex. Their idea. Excessive medical testing. Their idea. The MASSIVE campaign to turn every American into a brainwashed, credit card, pharmaceutical, medical testing, love-sick, celebrity junkie. Their idea. All of the above drive up the cost of living, shrink the middle class, concentrate the world’s wealth and resources, create a dominoe effect of socio-economic problems, and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, executives, entrepreneurs, attorneys, and politicians. IT MAKES THEM RICHER. So don’t fall for any of their ‘good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTIBLE PR CRAP. In many cases, the ‘charitable’ contribution is almost entirely offset. Not to mention the opportunity to plug their name, image, product, and ‘good will’ all at once. Which is usually done just before or after the release of their latest commercial project. IT MAKES THEM RICHER. These filthy pigs even have the nerve to throw a fit and spin up a misleading defense with regard to ‘federal tax revenue’. ITS A SHAM. THEY SCREWED UP THE EQUATION TO BEGIN WITH. If the middle and lower classes had a greater share of the pie, they could easily cover a greater share of the federal tax revenue. They are held down in many ways because of greed. Wages remain stagnant for millions because the executives, celebrities, athletes, attorneys, and entrepreneurs, are paid millions. They over-sell, over-charge, under-pay, outsource, cut jobs, and benefits to increase their bottom line. As their profits rise, so do the stock values. Which are owned primarily by the richest 5%. As more United States wealth rises to the top, the middle and lower classes inevitably suffer. This reduces the potential tax reveue drawn from those brackets. At the same time, it wreaks havok on middle and lower class communities and increases the need for financial aid. Not to mention the spike in crime because of it. There is a dominoe effect to consider. IT CAN’T WORK THIS WAY. But our leaders refuse to acknowledge this. Instead they come up with one trick after another to milk the system and screw the majority. These decisions are heavily influensed by the 1% club. Every year, billions of federal tax dollars are diverted behind the scenes back to the rich and their respective industries. Loans from China have been necessary to compensate in part, for the red ink and multi-trillion dollar transfer of wealth to the rich. At the same time, the feds have been pushing more financial burden onto the states who push them lower onto the cities. Again, the hardship is felt more by the majority and less by the 1% club. The rich prefer to live in exclusive areas or upper class communities. They get the best of everything. Reliable city services, new schools, freshly paved roads, upscale parks, ect. The middle and lower class communities get little or nothing without a local tax increase. Which, they usually can’t afford. So the red ink flows followed by service cuts and lay-offs. All because of the OBSCENE distribution of bottom line wealth in this country. Anyway, when you account for all federal, state, and local taxes, the middle class actually pay about the same rate as the rich. The devil is in the details. So when people forgive the rich for their incredible greed and then praise them for paying a greater share of the FEDERAL income taxes, its like nails on a chalk board. I can not accept any theory that our economy would suffer in any way with a more reasonable distribution of wealth. Afterall, it was more reasonable 30 years ago. Before Reaganomics came along. Before GREED became such an epidemic. Before we had an army of over-paid executives, bankers, celebrities, athletes, attorneys, doctors, investors, entrepreneurs, developers, and sold-out politicians to kiss their asses. As a nation, we were in much better shape. Strong middle class, free and clear assets, lower crime rate, more widespread prosperity, stable job market, lower deficit, ect. Our economy as a whole was much more stable and prosperous for the majority. WITHOUT LOANS FROM CHINA. Now, we have a more obscene distribution of bottom line wealth than ever before. We have a sold-out government, crumbling infrastructure, energy crisis, home forclosure epidemic, credit crunch, weak US dollar, 13 figure national deficit, and 12 figure annual shortfall. The cost of living is higher than ever before. Most people can’t even afford basic health care. ALL BECAUSE OF GREED. I really don’t blame the 2nd -5th percentiles in general. No economy could ever function without some reasonable scale of personal wealth and income. But it can’t be allowed to run wild like a mad dog. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. UNBRIDLED CAPITALISM ABSOLUTELY CAN NOT WORK. TOP HEAVY ECONOMIES ALWAYS COLLAPSE. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. The American dream will be shattered. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. THERE IS NO SUCH THING AS A MULTI-MILLIONAIRE HUMANITARIAN. EXTREME WEALTH MAKES WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, they will jump to small minded conclusions about ‘jealousy’, ‘envy’, or ’socialism’. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.
So what can we do about it? Well, not much. Unfortunately, we are stuck on a runaway train. The problem has gone unchecked for too many years. The US/global depression is comming thanks to the 1% club. It would take a massive effort by the vast majority to prevent it. Along with a voluntary sacrifice by the rich. THATS NOT GOING TO HAPPEN. But if you believe in miracles, then spend your money as wisely as possible. Especially in middle and lower class communities. Check the Fortune 500 list and limit your support of high profit/low labor industries (Hollywood, pro sports, energy, credit, pharmaceutical, cable, satelite, internet advertising, cell phone, high fashion, jewelry, ect.). Cancel all but one credit card for emergencies only. If you need a cell phone, then do your homework and find the best deal on a local pre-pay. If you want home internet access, then use the least expensive provider, and share accounts whenever possible. If you need to search, then use the less popular search engines. They usually produce the same results anyway. Don’t click on any internet ad. If you need the product or service, then look up the phone number or address and contact that business directly. Don’t pay to see any blockbuster movie. Instead, wait a few months and rent the DVD from a local store or buy it USED. If you want to see a big name game or event, then watch it in a local bar, club, or at home on network TV. Don’t buy any high end official merchendise and don’t support the high end sponsors. If its endorsed by a big name celebrity, then don’t buy it. If you can afford a new car, then make an exception for GM, Ford, and Dodge. If they don’t increase their market share soon, then a lot more people are going to get screwed out of their pensions and/or benefits. Of course, you must know by now to avoid those big trucks and SUVs unless you truly need one for its intended purpose. Don’t be ashamed to buy a foreign car if you prefer it. Afterall, those with the most fuel efficient vehicles consume a lot less foreign oil. Which accounts for a pretty big chunk of our trade deficit. Anyway, the global economy is worth supporting to some extent. Its the obscene profit margins, trade deficits, and BS from OPEC that get us into trouble. Otherwise, the global economy would be a good thing for everyone. Just keep in mind that the big 3 are struggling and they do produce a few smaller reliable cars. Don’t frequent any high end department store or any business in a newly developed upper class community. By doing so, you make developers richer and draw support away from industrial areas and away from the middle class communities. Instead, support the local retailer and the less popular shopping centers. Especially in lower or middle class communities. If you can afford to buy a home, then do so. But go smaller and less expensive. Don’t get yourself in too deep and don’t buy into the newly developed condos or gated communities. Instead, find a modest home in a building or neighborhood at least 20 years old. If you live in one of the poorer states, then try to support its economy first and foremost. Be on the lookout for commercial brainwash plots on TV. They are written into nearly every scene of nearly every show. Most cater to network sponsors and parent companies. Especially commercial health care. Big business is fine on occasion depending on the profit margins and profit sharing. Do your homework. If you want to support any legitimate charity, then do so directly. Never support any celebrity foundation. They spend most of their funding on PR campaigns, travel, and high end accomodations for themselves. Instead, go to Charitywatch.org and look up a top rated charity to support your favorite cause. In general, support the little guy as much as possible and the big guy as little as possible. Do your part to reverse the transfer of wealth away from the rich and back to the middle and lower classes. Unfortunately, there is no perfect answer. Jobs will be lost either way. Innocent children will starve and die either way. But we need to support the largest group of workers with the most reasonable profit margins. We also need to support LEGITIMATE charities (Check that list at Charitywatch.org). This is our only chance to limit the severity and/or duration of the comming US/global depression. In the meantime, don’t listen to Bernanke, Paulson, Bartiromo, Orman, Dobbs, Kramer, OReiley, or any other public figure with regard to the economy. They are all plenty smart but I swear to you that they will lie right through their rotten teeth. IT MAKES THEM RICHER. These people work for big business. The ‘experts’ they cite also work for big business. They are all motivated by their desire to accumulate more wealth. THEY WILL LIE RIGHT THROUGH THEIR ROTTEN TEETH. So don’t fall for their tricks. Instead, look at the big picture. The economic problems we face have been mounting for well over 20 years. All of them caused or aggrivated by a constant transfer of wealth from poorer to richer. Soon, it will cause the first ever GLOBAL DEPRESION. Its not brain surgery. Its simple math. Like I said, you are welcome to run this by any professor of economics or socio-economics. If thats not good enough, then look up what Einstein had to say about greed, extreme wealth, and its horrible concequences. I speak the truth. GREED KILLS. IT WILL BE OUR DOWNFALL.
Its already underway. A massive campaign to divert our attention. Trump, Buffet, OReiley, Dobbs, Pickens, Norris, and several other well known filthy rich public figures have been running their mouths about the economy. Finally admitting a hint of severity after almost 2 years of denial. They even have the nerve to acknowledge the possibility of a US/global depression. Still, they refuse to acknowledge the single greatest underlying cause. Instead, they focus on policies, procedures, and circumstances that were born FROM the underlying cause. Dancing their way around the big picture. DON'T FALL FOR IT. Remember: Our national debt was way up BEFORE sub-prime. Consumer debt was way up BEFORE sub-prime. The cost of living was up BEFORE sub-prime. Wall Street profits were obscene BEFORE sub-prime. The middle class were loosing free and clear assets BEFORE sub-prime. Our infrastructure was in bad shape BEFORE sub-prime. Loans from China were taken out BEFORE sub-prime. The dollar was loosing value BEFORE sub-prime. So don’t let these cowardly filthy rich public figures divert your attention or limit your range of thought. THE CURRENT ECONOMIC CRISIS WAS NOT CAUSED BY A SINGLE POLICY OR PROCEDURE. IT WAS CAUSED PRIMARILY BY A MASSIVE TRANSFER OF WEALTH FROM POOR TO RICH. THIS ALSO REPRESENTS A MASSIVE CONCENTRATION OF CAPITAL WORLDWIDE. OTHERWISE, THERE WOULD NOT HAVE BEEN SUCH A MARKET FOR SUB-PRIME AND THERE WOULD NOT HAVE BEEN A GLOBAL CREDIT CRUNCH. MONEY DOES NOT GROW ON TREES AND IT DOES NOT JUST FLOAT AWAY. IT ONLY TRANSFERS FROM ONE PARTY TO ANOTHER. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. GREED KILLS. IT WILL BE OUR DOWNFALL.
A word for those who respond with the usual ‘I know more than you. Look how smart, knowledgable, and articulate I am’ crap. Let me say this in advance. I don’t claim to be an expert in this field. But I did go on record with these predictions long before any public figure uttered the word ‘recession’. If you search long enough, you will find my early postings from ‘05′ and ‘06′. Including the first draft of this rant. Since then, I’ve gone on record against people like Greenspan, Bernanke, and Paulson. So far, my predictions have been accurate. Like I said. This is not brain surgery. For the mostpart, its simple math. When you concentrate the world’s wealth, you also concentrate its capital and shrink the middle class along with the potential market for every major industry. Homes go unsold. Bills go unpaid. Banks fail. More products go unsold. Jobs are lost. More banks fail. and so on. and so on. It happened 80 years ago. It will happen again. This time on a global scale. Throughout the cycle, the rich will tighten their grip. Concentrating the world’s wealth and resources even further and ensuring the collapse of every major economy worldwide. Think it can’t happen? Think again. GREED KILLS. IT WILL BE OUR DOWNFALL.
Another thing. I don’t want credit for any of this. Otherwise, I would have given my full name a long time ago. As far as I’m concerned, you can put this rant in your own words and take credit for all of it. I don’t care. Just spread the word. Otherwise, the greatest injustice of all time will go down in history unchecked.
By the way. The bailout won’t work. IT WON’T WORK. The plan fails to address the fundamental problem. The middle class don’t need more credit. They need a reasonable share of the economic pie. They also need a lower cost of living and a chance to catch their breath. They need a break from all of the psychological marketing tricks and mass market BS. Most of all, they need to wake up and see the truth. GREED KILLS. IT WILL BE OUR DOWNFALL.
To my surprise, two public figures have found the courage to acknowledge this problem to some degree. On 11.07.07 former presidential candidate Ron Paul mentioned the massive transfer of wealth from poor to rich. He also hinted at the possibility of economic collapse. He did so on 'Face the Nation'. He was blacklisted almost immediately for doing so. On 9.28.08 former secretary of labor Robert Reich refered to the obscene levels of income inequality as part of a "recipe for disaster". He mentioned the richest one percent in particular. He did so on 'Late Night With Conan OBrien'. As far as I know, Albert Einstein was the first to explain the link between extreme wealth and economic instability. He did so in 1949. He explained how the first Great Depression was actually caused by a massive transfer of wealth from poor to rich. He predicted that it would happen again. We are about to witness the first ever GLOBAL DEPRESSION. Amazing. The prosperity of an entire world is about to be compromised. Almost entirely because of greed. IT WILL BE OUR DOWNFALL.
The point about our government printing up more money was that it can't be done "on a whim" and that there are serious concequences for doing so (weak dollar, higher gas prices, inflation). I never said that it can't be or hasn't been done at all. Afterall, those loans from china weren't infused in the form of Chinese currency. They were infused in the form of our own. Not given to the middle class but instead to the banks in the form of credit. Its done nothing but perpetuate the problem. It never has been and never will be the answer. Sorry if I wasn't explicit enough the first time. The original draft was written 2 years ago and intended to fit within 300 characters. Anyway, I'm no English major. So if any of you want to re-word this post, feel free to do so. Whatever it takes to make people understand.
Nice try on making the argument about paying the interest up front. The problems with your argument is this:
1. The banks don't force you in any way. You don't have to go to them for a loan and if you don't want to pay the interest, just pay off your loan in full.
(Under the Obama world, the banks are FORCED to sacrifice)
2. You also make it sound like the banks get a good deal out if it by getting the interest up front. If they loan you a $1/4 million you only give them $1500. It will be years and years before they ever even see their 1/4 million back, much less a profit on that money.
The banks provide a service to us. You don't HAVE to go to a bank if you feel their terms are unreasonable. You can rent or live with mom and dad.
No one should have a right to go into my home or business and say, "There are others who make bad decisions, are lazy, or are afraid to risk -- because they lack what it takes, I am going to take from you so that they don't have to try as hard and so that I get to BUY THEIR VOTE WITH YOUR MONEY!!!!"
AMEN eye!
It appears that for the last 8 years .... Government has increased and our constitution has been compromised and demolished ... I'll vote for McCain and his cheerleader's opponent ..... go Obama!!
I take it all back, saw the debate where McCain's "game changer" was another 300 B$ give away.
I am now officially not voting,
my apologies to lefties Ive offended here.... good luck with your generation's Jimmy Carter experience, there is not a Republican to vote for any more.
Today I went to the County Clerks Office and proudly cast my vote for "That One"....
I have a little game for you (for some of you it won't be fun)- guess which presidential candidate said this:
"I would order the Secretary of Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes, at the diminished values of those homes, and let people make those - be able to make those payments and stay in their homes."
Hmmmmmm...
hint:(it starts with a Mc)
Regarding taxation:
So when the house (the casino) takes its cut from the pot for your winning hand at the poker table, that's unfair and must really tick you off, huh?
So it's ok to win at the game that our socio-economic system sets up, but when that system needs you to kick in a few percent extra for its upkeep, that's unfair. Even though it leaves you with plenty to insure you still have motivation to keep playing and winning at the game.
Interesting philosophy.
To the long commenter:
Wow- you've actually got some good points, but they get buried in some rambling.
Less hatin' on individuals would help- very few folks consider their own economic footprint. Oprah (for instance) is just a winner at the game, not part of a purposeful evil conspiracy.
The imbalance of wealth is a factor in economic, political and social instability, but the current economic crisis has many, many causes and participants.
Politically, consolidation of power by corporations is a threat to our Democracy.
Greed, in its strictest sense of providing motivation to achieve and innovate, is certainly necessary to our economy and isn't all bad- I think you mean to a point of excess.
I think you are right on target in that things are about to get ugly for many of us in this country. To live wisely, purposefully, frugally and with regard for our fellow countrymen may be valued again, rather than celebrity and gluttony. I'm afraid we soon may have to relearn the lessons that our parents/grandparents/great-grandparents learned the hard way almost 80 years ago.
So called liberals and so called conservatives really need to start setting some of the acrimony aside and get on to having a realistic debate about where we, as a country and as a people, see our government and our economic system settling on the spectrum where- at one extreme, we're all in this together...at the other extreme, the one who dies with the most wins.
The answer lies somewhere in between.
Eye are you planning on ever addressing the fact that McCain directly proposed adjusting mortgage principals to match current market values during the second debate? Do you actually care about this issue or are you just casting about for things to attack Obama/Biden on?
It must make you feel pretty dumb when you go out on a limb to write an attack piece in support of your candidate and then your candidate comes out in favor of and even more extreme version of what you attacked his opponents for, doesn't it?
Had enough of the Repubs? I have. I've voted for 3 Repubs in my lifetime. BIG mistakes. For example:
Nixon - He WAS a crook after all.
Reagan - His trickle down theory of cutting taxes to the rich to trickle down to the working person has turned out that he helped them piss on us. That's Reagan's Trickle Down Theory for you.
Bush 2000- I'll never forgive myself for putting the Crawford Village Idiot in office.
I voted a straight Dem ticket this morning at the Clerk's Office.
voting straight Dem or Rep is soooo irresponsible!
I'm a dem and would never do that. I do my homework and vote for the lesser of the evils.
Voting early is stupid, only if you couldn't because of a disability.
You never know what event may happen even the day before an election.
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