The Earth is cooling; (no word on sea levels yet)
Gas prices are falling,
The economy is rebounding, and
Peace engulfs the planet.
(well 3 out of 4 ain't bad)
Friday, October 31, 2008
Tuesday, October 28, 2008
Socialism (or charity at gunpoint)
A story redistributed (stolen) from an unknown (to me) source:Yesterday on my way to lunch I passed a homeless guy with a sign that read "Vote Obama, I need the money". I laughed. Once in the restaurant my server had on an "Obama 08" Button, again I laughed as he had given away his political preference -- just imagine the coincidence. When the bill came I decided not to tip the server and explained to him that I was exploring the Obama redistribution of wealth concept. He stood there in disbelief while I told him that I was going to redistribute his tip to someone who I deemed more in need--I pointed out the homeless guy outside. The server angrily stormed from my sight. I went outside, gave the homeless guy $10 and told him to thank the server inside as I've decided he could use the money more. The homeless guy was very grateful. At the end of my rather unscientific redistribution experiment I realized the homeless guy was grateful for the money he did not earn, but the waiter was pretty angry that I gave away the money he did earn even though the actual recipient "lacked" the money more. I guess redistribution of wealth is an easier thing to swallow in concept than in practical application.
Sunday, October 26, 2008
Predicting the Future
McCain Win - "300" (Spartans)
It will be a continuation of the war on terror, war on big government, picking up the pieces, fighting a congress with even more Democrats in it, and even more frustration.
Obama Win - Jimmy Carter 2 - Organizing the Communities of Malaiseia/Held Hostage by Iran 2
Surrender on the war on terror, surrender on the war on big government, more pieces to pick up, no one to fight the Democrats in congress, and even more frustration.
Unfortunately, I don't see much hope either way, at least for the next 2 years.
It will be a continuation of the war on terror, war on big government, picking up the pieces, fighting a congress with even more Democrats in it, and even more frustration.
Obama Win - Jimmy Carter 2 - Organizing the Communities of Malaiseia/Held Hostage by Iran 2
Surrender on the war on terror, surrender on the war on big government, more pieces to pick up, no one to fight the Democrats in congress, and even more frustration.
Unfortunately, I don't see much hope either way, at least for the next 2 years.
Warm Body Democracy
I heard that term the other day and it struck a chord. In Athens male citizens above a certain age voted and what was decided upon affected them as well as others. For instance, if it was decided that war was to be, you and your boys better get the armor out and get ready. Of course, that was a direct democracy.
Over the years various groups have been allowed into the decision making process to the point that now any warm body (along with Mickey Mouse and that dead goldfish) are on the voter rolls. The author who used the phrase "warm body democracy" was warning that as soon as the dependent class finds out that they can vote themselves a pay raise, it's over. Sounds kind of like Congress huh?
My dad used to say that, "The inmates were running the place." We may have reached that tipping point.
Over the years various groups have been allowed into the decision making process to the point that now any warm body (along with Mickey Mouse and that dead goldfish) are on the voter rolls. The author who used the phrase "warm body democracy" was warning that as soon as the dependent class finds out that they can vote themselves a pay raise, it's over. Sounds kind of like Congress huh?
My dad used to say that, "The inmates were running the place." We may have reached that tipping point.
Sunday, October 19, 2008
Stick it to the Rich!!
It would be amusing if it weren't so dangerous to hear people demand more from "the rich" because by rich they mostly mean people who have worked and prospered more than themselves. In the teacher's lounge I hear this and have to remind them that I make what they do but have done different things with my money. I'm certainly not rich but I am a Republican which by itself means I am hateful and selfish.
The talk is always the same, "My daughter (who got pregnant in highschool and is still not married) doesn't have a good paying job and doesn't qualify for susidized child care." Or, "Student loans are difficult to get." The answer is always that teachers don't make enough (therefore the taxpayers need to pay more) or the government needs to "do something". Many are single and in financial straits due to divorce and have found that as a teacher you just can't make enough. Almost all are Democrats and usually union members.
The simple answer is always that the rich are getting away with something and need to pay more. They never consider that businesses have to make a profit (but not too much the corporate tax rate in America is the second highest in the world) to be able to hire the unmarried daughter at all so that someone, probably not her, can pay taxes to keep us in our jobs.
But look at the bright side, people like them will possibly elect the next president and get to see first hand how it is all tied together. Unfortunately the rest of us are on the same train.
Bar Stool Economics
Suppose that every day, ten men go out for beer and the bill for all ten
comes to $100. If they paid their bill the way we pay our taxes, it
would go something like this:
The first four men (The poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that's what they decided to do. The ten men drank in the bar every
day and seemed quite happy with the arrangement, until one day, the
owner threw them a curve. "Since you are all such good customers,"
he said, "I'm going to reduce the cost of your daily beer by $20."
Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the
first four men were unaffected. They would still drink for free
But what about the other six men - the paying customers? How could they
divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33. But if they subtracted
that from everybody's share, then the fifth man and the sixth man would
each end up being paid to drink his beer. So, the bar owner suggested
that it would be fair to reduce each man's bill by roughly the same
amount, and he proceeded to work out the amounts each should pay.
And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33% savings).
The seventh now pay $5 instead of $7 (28% savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued
to drink for free. But once outside the restaurant, the men began to
compare their savings.
"I only got a dollar out of the $20,"declared the sixth man.
He pointed to the tenth man," but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar,
too! It's unfair that he got ten times more than I!"
"That's true!!" shouted the seventh man. "Why should he get $10 back
when I got only two? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison.
"We didn't get anything at all. The system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat
down and had beers without him. But when it came time to pay the bill,
they discovered something important. They didn't have enough money
between all of them for even half of the bill!
And that, ladies and gentlemen, journalists and college professors, is
how our tax system works. The people who pay the highest taxes get the
most benefit from a tax reduction. Tax them too much, attack them for
being wealthy, and they just may not show up anymore. In fact, they
might start drinking overseas where the atmosphere is somewhat
friendlier.
The talk is always the same, "My daughter (who got pregnant in highschool and is still not married) doesn't have a good paying job and doesn't qualify for susidized child care." Or, "Student loans are difficult to get." The answer is always that teachers don't make enough (therefore the taxpayers need to pay more) or the government needs to "do something". Many are single and in financial straits due to divorce and have found that as a teacher you just can't make enough. Almost all are Democrats and usually union members.
The simple answer is always that the rich are getting away with something and need to pay more. They never consider that businesses have to make a profit (but not too much the corporate tax rate in America is the second highest in the world) to be able to hire the unmarried daughter at all so that someone, probably not her, can pay taxes to keep us in our jobs.
But look at the bright side, people like them will possibly elect the next president and get to see first hand how it is all tied together. Unfortunately the rest of us are on the same train.
Bar Stool Economics
Suppose that every day, ten men go out for beer and the bill for all ten
comes to $100. If they paid their bill the way we pay our taxes, it
would go something like this:
The first four men (The poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that's what they decided to do. The ten men drank in the bar every
day and seemed quite happy with the arrangement, until one day, the
owner threw them a curve. "Since you are all such good customers,"
he said, "I'm going to reduce the cost of your daily beer by $20."
Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the
first four men were unaffected. They would still drink for free
But what about the other six men - the paying customers? How could they
divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33. But if they subtracted
that from everybody's share, then the fifth man and the sixth man would
each end up being paid to drink his beer. So, the bar owner suggested
that it would be fair to reduce each man's bill by roughly the same
amount, and he proceeded to work out the amounts each should pay.
And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33% savings).
The seventh now pay $5 instead of $7 (28% savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued
to drink for free. But once outside the restaurant, the men began to
compare their savings.
"I only got a dollar out of the $20,"declared the sixth man.
He pointed to the tenth man," but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar,
too! It's unfair that he got ten times more than I!"
"That's true!!" shouted the seventh man. "Why should he get $10 back
when I got only two? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison.
"We didn't get anything at all. The system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat
down and had beers without him. But when it came time to pay the bill,
they discovered something important. They didn't have enough money
between all of them for even half of the bill!
And that, ladies and gentlemen, journalists and college professors, is
how our tax system works. The people who pay the highest taxes get the
most benefit from a tax reduction. Tax them too much, attack them for
being wealthy, and they just may not show up anymore. In fact, they
might start drinking overseas where the atmosphere is somewhat
friendlier.
Wednesday, October 15, 2008
When Will the Market Turn?
The short answer is when people perceive that the government can be trusted. The polls say, "It's Obama", the market says, "Oh no!" Confidence is needed but Obama does not make business investors comfortable, and there are very good reasons for that.
This current problem was caused by government policy distorting the market by creating customers that should not have been there. Capitalism is very good at making things, in this case houses. The builders said that if there would be customers to buy their houses, we will build them. The banks said if the government is backing the loans, we will give them. Investment companies said if we have loans to sell, we will package them and sell them.
An Obama win means more government distortion of the market with a weak economy and a broke government. A community organizer needs money, lots of it, and government power. That money needs to come from somewhere, either tax increases (letting the Bush tax cut die), printing more money, or borrowing from someone else (at a higher rate). Any of those choices will make it tougher on business. Hence the stock market falls.
I think, that even at this late date, it will still be a landslide for McCain when people connect the dots.
This current problem was caused by government policy distorting the market by creating customers that should not have been there. Capitalism is very good at making things, in this case houses. The builders said that if there would be customers to buy their houses, we will build them. The banks said if the government is backing the loans, we will give them. Investment companies said if we have loans to sell, we will package them and sell them.
An Obama win means more government distortion of the market with a weak economy and a broke government. A community organizer needs money, lots of it, and government power. That money needs to come from somewhere, either tax increases (letting the Bush tax cut die), printing more money, or borrowing from someone else (at a higher rate). Any of those choices will make it tougher on business. Hence the stock market falls.
I think, that even at this late date, it will still be a landslide for McCain when people connect the dots.
Sunday, October 12, 2008
Time To Name Names
The following is info gleaned from a variety of sources:
Barney Frank, the Black Caucus, Chris Dodd and many other Democrats are directly responsible for the bad loans that triggered the financial crisis we are currently experiencing. Barack Obama worked with ACORN and as a lawyer for a firm was personally involved suing banks to ensure that risky loans were made. He is part of the problem.
The U.S. Department of Housing and Urban Development's mortgage policies fueled the trend towards issuing risky loans.[83][84] In 1995, Fannie Mae and Freddie Mac began receiving affordable housing credit for purchasing mortgage backed securities which included loans to low income borrowers. This resulted in the agencies purchasing subprime securities.[85] Subprime mortgage loan originations surged by 25% per year between 1994 and 2003, resulting in a nearly ten-fold increase in the volume of these loans in just nine years.[86] As of November 2007 Fannie Mae held a total of $55.9 billion of subprime securities and $324.7 billion of Alt-A securities in their portfolios.[87] As of the 2008Q2 Freddie Mac had $190 billion in Alt-A mortgages. Together they have more than half of the $1 trillion of Alt-A mortgages.[88] The growth in the subprime mortgage market, which included B, C and D paper bought by private investors such as hedge funds, fed a housing bubble that later burst.
A September 30, 1999 New York Times article stated, "... the Fannie Mae Corporation is easing the credit requirements on loans... The action... will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough... Fannie Mae... has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people... borrowers whose incomes, credit ratings and savings are not good enough... Fannie Mae is taking on significantly more risk... the government-subsidized corporation may run into trouble... prompting a government rescue... the move is intended in part to increase the number of... home owners who tend to have worse credit ratings..." [89
Damning video compilation of the 2004 hearings on Fannie and Freddie.
Barney Frank, the Black Caucus, Chris Dodd and many other Democrats are directly responsible for the bad loans that triggered the financial crisis we are currently experiencing. Barack Obama worked with ACORN and as a lawyer for a firm was personally involved suing banks to ensure that risky loans were made. He is part of the problem.
The U.S. Department of Housing and Urban Development's mortgage policies fueled the trend towards issuing risky loans.[83][84] In 1995, Fannie Mae and Freddie Mac began receiving affordable housing credit for purchasing mortgage backed securities which included loans to low income borrowers. This resulted in the agencies purchasing subprime securities.[85] Subprime mortgage loan originations surged by 25% per year between 1994 and 2003, resulting in a nearly ten-fold increase in the volume of these loans in just nine years.[86] As of November 2007 Fannie Mae held a total of $55.9 billion of subprime securities and $324.7 billion of Alt-A securities in their portfolios.[87] As of the 2008Q2 Freddie Mac had $190 billion in Alt-A mortgages. Together they have more than half of the $1 trillion of Alt-A mortgages.[88] The growth in the subprime mortgage market, which included B, C and D paper bought by private investors such as hedge funds, fed a housing bubble that later burst.
A September 30, 1999 New York Times article stated, "... the Fannie Mae Corporation is easing the credit requirements on loans... The action... will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough... Fannie Mae... has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people... borrowers whose incomes, credit ratings and savings are not good enough... Fannie Mae is taking on significantly more risk... the government-subsidized corporation may run into trouble... prompting a government rescue... the move is intended in part to increase the number of... home owners who tend to have worse credit ratings..." [89
Damning video compilation of the 2004 hearings on Fannie and Freddie.
Saturday, October 11, 2008
The Big Three Oh
I was given the chore of getting Brad out of the house for the day so that Jackie and Vicki could get the actual work done. My part wasn't tough because the goal was to just have fun.We went to breakfast at a nice outdoor cafe in Cave Creek and then to Cracker Jax, kind of a game place that caters to kids and adults. We chose the top level of the driving range so that we could appear better than we were (It probably gives your drive an extra 10 yards or so). Five irons and excellent form let us smash drives out to let's say 150 yards. (yeh). After blisters began to form we moved on to the batting range.
Sixty mph seemed about right and both of us looked like pros.
The plan was to hang out at the ballfield for a while before the last Diamondbacks game of the year so we talked stats. Believe it or not the numbers this year were very interesting. Home runs were down but stolen bases were up. There was speculation that a drop in the use of steroids may have had something to do with it.
The game was against the Rockies but both teams were out of the running so it was low stress. Winning at home on the last game is a lot of fun though, and win they did. Randy Johnson pitched and if you have ever seen him his long lanky body seems to stretch half-way to the plate. Unfortunately the win was one of those that is fun but in some way not satisfying. The relief pitcher loaded the bases and walked in the winning run. Sad.
On the way home we stopped at Dale's house and Brad got to try out his massage chair that looks like an ejection seat. It's the real deal. The thing grabs you by the arms and legs and squeezes. No kidding. By the time you finish you are sore and relaxed at the same time. Quite a machine.
When we got home Brad saw that they had decorated his office in NY Mets style. The wall was blue, there were pictures of the City and stadium and a new swivel chair. A very good day!
Friday, October 10, 2008
An Opportunity of a Lifetime
This could be what we have all been waiting for. Many of us have said for years that the government and its programs are wayyyy too large and expensive. We have pleaded for restraint at the yearly expansion and maybe the time has come. It is clear to the world that under pressure our Senate could only pass a "critical" bill by adding pork to it. (One of my liberal "green" friends was excited because the bill had a provision in it to pay for his new bicycle if he could document that it was used to ride to work. He couldn't understand why I wasn't impressed. OMG!!!) Government as usual. Time for a change.
If our way of life is looked at as a tree with the trunk being the free market system then many of the branches that the trunk supports are government. What we have now is a hurricane strength wind that will either snap off those limbs or give us an incentive to prune. And boy is that doable! I think it's clear that government can't save us, we need to save government but not by more of the same. If you watched the last debate there was only one person out there that was even talking about reducing government. Guess who.
If our way of life is looked at as a tree with the trunk being the free market system then many of the branches that the trunk supports are government. What we have now is a hurricane strength wind that will either snap off those limbs or give us an incentive to prune. And boy is that doable! I think it's clear that government can't save us, we need to save government but not by more of the same. If you watched the last debate there was only one person out there that was even talking about reducing government. Guess who.
Thursday, October 09, 2008
In Case it is Still Not Clear
What is happening is a purposeful transferrance of wealth. Democrat socialists used race (political correctness) to intimidate those who would resist the largest theft in American history. When people understand that their hard work and lifetime of savings have been sacrificed to buy votes for crooks it will be the beginning of a landslide for, of all people, John McCain.
This crisis was not only unnecessary and preventable but planned. It will sink in that there are many Democrats that need to go to jail not just defeated in an election.
It will be easy to dump Obama when his ties to radical socialists and his community "organizing" is revealed for what it is, part of the problem.
More market not government is necessary but it will not happen with the current Democrat leadership and speech-stifling atmosphere.
This crisis was not only unnecessary and preventable but planned. It will sink in that there are many Democrats that need to go to jail not just defeated in an election.
It will be easy to dump Obama when his ties to radical socialists and his community "organizing" is revealed for what it is, part of the problem.
More market not government is necessary but it will not happen with the current Democrat leadership and speech-stifling atmosphere.
Wednesday, October 08, 2008
Rewarding Bad Behavior
I guess the solution that our politicians came up with to the over building of homes is to devalue all of ours and reward people who "can't afford" what they bought. Since us taxpayer now own a bunch of worthless property why don't we just level it?
It sounds funny in a way but consider that supply and demand drive prices. Cut down on the number of houses and those left will be more valuable which will stabilize the housing market. There is no shortage of apartments so "affordable housing" is not the problem. No one will be left living on the street.
Why punish those who have been living within their means and reward those who haven't by giving them something for nothing?
It sounds funny in a way but consider that supply and demand drive prices. Cut down on the number of houses and those left will be more valuable which will stabilize the housing market. There is no shortage of apartments so "affordable housing" is not the problem. No one will be left living on the street.
Why punish those who have been living within their means and reward those who haven't by giving them something for nothing?
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