HONOLULU- New figures by the Honolulu Board of Realtors show the median price of real estate on Oahu taking a plunge in the month of August compared to the same time last.
According to a report released Wednesday, the median price of a single family home stood at $557,500 last month – a 13.1 percent drop compared to the same month in 2010.
The median price for condominiums came in at $300,000 – a 1 percent drop compared to a year ago.
I can’t believe anyone is still buying condos here… especially for $300k.
Like the one commentator said afterwards , we are all only 1 % behind poor Jon Huntsman , and we aren’t running . It’ll be Rick Perry ,after he gets a bit of debating experience.
Mitt looks and sounds good , but his full time job is and has been running for this office for the last 5 years, that bothers me .
We still like Michele , but it does not look good for her at this point.
Romney is nothing more than another BS artist salesman that sold
his socialized medicine Romneycare to the chumps in Taxachusetts,
and now they are stuck with cost overruns.
Huntsman’s problem is the same as Romney- they’re far too reasonable for a party whose primary voters still think the world is flat and Adam and Eve rode a dinosaur to Sunday school.
Michelle and Perry don’t share that problem. Perry’s problem will be explaining his disdain for social security to the Florida voters.
“They look like the same point to me. Round earth is only a theory after all.”
Typical liberal thinking.
Comment by ahansen
2011-09-08 09:45:50
Maybe evil was contesting the “beaucoup buckaroos” contention? He’s too smart not to see the anti-science connection….
Comment by evildocs
2011-09-08 10:36:42
Jim “They look like the same point to me. Round earth is only a theory after all.”
Straw Man. Weak one at that. You sound angry.
Comment by NYGoon
2011-09-08 10:54:41
Smart coward maybe.
Comment by jim
2011-09-08 10:55:49
Actually, it was an observational comment, followed up by a what I would call a generalized ad hominem attack.
Comment by evildocs
2011-09-08 11:07:43
Comment by NYGoon—Smart coward maybe—-
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
“RNC trolls are especially gifted in that area…
And a troll too.”
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
Comment by jim
2011-09-08 11:33:07
“generalized ad hominem attack”
“RNC trolls are especially gifted in that area…”
Wait, I thought thats what I was trying to attack the RNC with??
I’m so confused.
/Breaks out internet debate strategies for dummies. http://plover.net/~bonds/adhominem.html Hmmm.
Completely unnecessary for anything so totally obvious to anyone who is paying attention and has an IQ of 70 or more.
Comment by nickpapageorgio
2011-09-08 19:07:28
“theory of evolution”
It has always been just a theory, there is not proof. So count me in as one of those who do not believe. Nobody knows how we came to be, you have theories and faith, that’s it. I would lay down a large amount of money (if I had it) that I am not an evolved ape. Java man, Homo Erectus…give me a break.
“It has always been just a theory, there is not proof.”
And there you have the non-scientist politician’s argument in favor of teaching Creationism, Creation Science, Intelligent Design, and any number of other non-theories in U.S. public schools as though they should be treated as equally plausible explanations for the Origin of the Species as the Theory of Evolution.
I suppose you are now going to explain to us that the theory the earth revolves around the sun has never been proven, either, and hence we should continue to entertain the earlier theory that the sun revolves around the earth?
Comment by evildocs
2011-09-08 21:15:46
CIBT: “Completely unnecessary for anything so totally obvious to anyone who is paying attention and has an IQ of 70 or more.”
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
Comment by nickpapageorgio
2011-09-08 21:18:28
I was just saying that my non scientific opinion is that I don’t know. Maybe I will know after I die, maybe I won’t, but there is no absolute proof in either direction. Evolution is a scientific theory and Intelligent design is also a theory only faith based. I have no problem with both being taught in school with proper context.
Why not throw in a few more religious crackpot theories and pretend they also qualify as science? Most Americans are too poorly educated to know the difference. We will be the laughing stock of the developed world, but so what? This is ‘Mericuh…
Comment by ahansen
2011-09-08 22:00:40
Nicky,
It would be useful if you took the time to educate yourself as to the scientific usage of the term “theory.”
Gravitation is a “theory.” That germs can cause disease is a “theory.” Evolution is a demonstrable fact, a set of readily accepted and provable principles. A “theory.”
It concerns me that you have the vote.
Sigh.
Comment by nickpapageorgio
2011-09-08 22:27:18
Intelligent design is taught in this country because we have a Judeo-Christian heritage, it should not be presented as fact, but as a predominant faith based view in this country. I am pretty sure we share other faith’s views of how we came to be at some point in a child’s academic career.
Other than that, school should be religiously neutral…I remember living in Texas back in the 70’s in second grade, we had just moved there from the bay area, we had to recite the lords prayer just after the pledge of allegiance. That was a bit strange and the practice was stopped just after I moved to a different school district a year later.
Comment by nickpapageorgio
2011-09-09 12:35:38
Ms. Hansen,
I will take the IQ Pepsi Challenge with anyone on this board +- 10pts.
Hwy tips his hat to the reasonable x2 Senator gals a way up north in Maine! Howdy!
“they’re far too reasonable…”
JON HUNTSMAN, FORMER UTAH GOVERNOR:
On candidates signing pledges:
“I’d love to get everybody to sign a pledge to take no pledges. I have a pledge to my wife, and I pledge allegiance to my country, but beyond that, no pledges. I think it diminishes the political discussion. I think it jeopardizes your ability to lead once you get there.”
On whether the Republican Party is becoming anti-science:
“When you make comments that fly in the face of what 98 out of 100 climate scientists have said, when you call into question the science of evolution, all I’m saying is that, in order for the Republican Party to win, we can’t run from science.”
Broaden the tax base (raise taxes on the poor and middle class) while lowering top rates (lowering taxes on the rich).
Sorry, but Huntsman’s political agenda is no more reasonible than the other fools. Sure, he’s not a Bible thumper, but that does not make him more reasonible.
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Comment by alpha-sloth
2011-09-08 06:40:38
I’m not saying he nor Mitt is reasonable per se, just that they are reasonable compared to the raving nutters that the GOP is fielding this time.
Comment by Bub Diddley
2011-09-08 08:07:48
I’m actually hoping Romney wins at this point, just so one of the bible freaks doesn’t get in.
As for policy, seems Romney’s agenda would be pretty much exactly the same as Obama’s, so no big changes there.
Anthropogenic Global Warming is science. Poor science.
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Comment by Diogenes (Tampa, Fl)
2011-09-08 09:42:05
Yea, it’s always been a wonder to me, how a bunch of “scientists” can’t forecast the proper weather pattern a week ahead of time, but can come up with models that project the change in “global climate” by using a set of past data, and ignoring the effect of the sun? I can’t quite have a lot of faith in the whole process.
By the way, did Anthropods burn up a lot of the forests and cause the ice sheets to melt? Must be so. It couldn’t be that Natural processes, primarily solar flares and changes in topography (volcanic eruptions and plate upheaval) cause major changes in environment.
It’s got to be CO2 emissions.
Comment by ahansen
2011-09-08 09:52:32
Climate scientists don’t profess any expertise in the practice of medicine.
Perhaps you shouldn’t assume that an MD gives you any particular expertise in climatology– let alone peer-reviewed scientific research?
After 50 years of hyperactive solar activity it appears that our Sun is going to become rather dormant. The periods of low solar activity have been cold periods and that is a matter of historical fact. One interesting side note is this solar cycle is going to peak at the end of 2012 or the beginning of 2013, roughly the end of the Mayan Calendar. So maybe they saw a new ice age coming? I have my spam and wine so I will be fine, plus growing up in Vermont and experiencing times during the Winter when below zero weather was common, I think I can endure the New Mexico winters for sometime, even if they become much colder.
Comment by evildocs
2011-09-08 10:47:15
Ahansen: Climate scientists don’t profess any expertise in the practice of medicine.
Perhaps you shouldn’t assume that an MD gives you any particular expertise in climatology– let alone peer-reviewed scientific research?
Straw man. Really, “A”, in general I expect better from you. This blog with 400 posts or so per day about the Economics of Housing has how many board certified economists (oh yeah, we mock economists), and how many people in the business of buying/selling/trading/marketing… housing? Oh yeah… we mock them too. Maybe Mr. Jones should close down the blog since essentially no one who plays here has *formal* qualifications to opine
But, having dismissed the straw man point and note instead that thoughtful people of decent intellect and common sense can take issue with highly debated (and debatable) science, which has players on both sides, save that the monied class that stands to make billions from the claim, all fall on one side.
I’m barely old enough to recall when stomach ulcers where known to be caused by acid, stress and such, and when those deniers of this Scientific Theory, suggesting instead that infection could play a big role, where laughed out of the room by Establishment scientists. The examples cascade from there.
I mean, really, I make no claim that having a degree in Mol Bio from Princeton makes me per se an expert in doing “global warming” research. I’m impressed how many believe being Algore makes one such an expert.
Comment by Pete
2011-09-08 10:51:46
“The periods of low solar activity have been cold periods and that is a matter of historical fact.”
True, from what I’ve read. It could possibly mitigate FOR NOW the effects of CO2 in the atmosphere. The problem will come with the next wave of high solar activity in conjunction with what we’ve put in our atmosphere. Might be another hundred years or so. Sounds like kicking the can down the road, as y’all like to say here.
Comment by ahansen
2011-09-08 10:56:56
dan,
It’s not so much a matter of “hotter” or “colder” as it is of CO2 concentrations and the atmospheric consequences– which are reaching, if not at a catastrophic tipping point.
At one time, you may recall from geology 101, the planet was inhabited by methanogenic bacteria– which metabolized themselves out of existence by off-gassing too much oxygen.
Comment by evildocs
2011-09-08 11:12:34
Let me toss the bomb in the pond, metaphorically speaking.
Let’s say AGW is all true and we are all doomed.
My assertion is that all proposed solutions, even at their most extreme, must fail. Seriously. Won’t work. We will all die.
Anyone care to explore why that is so?
Hint: Current solutions for AGW overlook the actual core problem.
Comment by Albuquerquedan
2011-09-08 11:12:58
Yes, but the question is how much of the recent warming really has been caused by CO2 when the last 50 years has been the most active sunspot period in a 1000 years? BTW, continental drift was rejected by geologists and I believe the promoter had no expertise in the area, actually think he had expertise in weather but I might be wrong on that. Sometimes common sense just beats a degree and the group think of the profession blinds more than it enlightens. However, even the founder of weather channel does not believe in AGW so this pronouncement of uniformity of opinion to close debate only makes me more suspicious.
The science is NOT debated by the relevant scientific community any more than germ theory is debated by the medical community.
Yes, there are a few MD’s who contend that human immunodeficiency virus does not cause AIDS just as there are also a few MD’s who espouse creationism. But their pseudoscience does not pass peer-review, relying instead upon faulty reasoning, cherry picking, and the misrepresentation of mainly outdated scientific data.
The science IS “debated,” however, by those who profess an expertise they do not possess, and their equally-ill-informed political acolytes who invoke the name of Galileo (for example,) to bolster their weak and discredited arguments with false equivalencies. (See: “Five Hundred Scientists Named Steve.”)
Comment by ahansen
2011-09-08 11:37:58
Kay, evil, I’ll play.
There is a high likelihood that humanity will be eradicated by a series of pandemic viruses before it is wiped out by the effects of anthropogenic pollution.
Should we therefore stop trying to develop anti-viral vaccines? After all, Big Pharma stands to make trillions off of the scare-mongering….
Comment by ecofeco
2011-09-08 12:16:07
Despite the RECORD setting drought, heat and wildfires, most people in Texas still insist global warming is a conspiracy.
Comment by Albuquerquedan
2011-09-08 12:35:00
Funny when people that talk about one region being colder than another they are referred to as ignorant not knowing the difference between weather and climate by AGW advocates. How is the weather in South America during their winter our summer? Perhaps one of the coldest on record? For that matter, show me a graph of world weather including so far this year and compare it to 1998? Where is the warming since we know with China growing 10% a year burning coal that there is a lot more CO2 in the air.
The periods of low solar activity have been cold periods and that is a matter of historical fact.”
thats like saying heat comes from the sun !!
oh wait……
Comment by ecofeco
2011-09-08 12:47:37
A-Dan, as with any asymmetric disturbance of a complex cyclical oscillating system, the effects are not perfectly linear and only become apparent over the span of the complex cycle when it goes back to the first step.
Comment by ecofeco
2011-09-08 12:49:50
…currently, the observable effects are record weather extremes as the system tries to find its previous equilibrium.
Comment by The_Overdog
2011-09-08 12:58:45
Despite the RECORD setting drought, heat and wildfires, most people in Texas still insist global warming is a conspiracy.
——-
Actually TX fell one day short of setting a record for most consecutive days over 100F, passed the record (by like 2 days) of most days over 100F non-consecutive, set a few lack-of-rainfall records, but didn’t pass last year’s single day high temp of 112F.
So I don’t think global warming is a conspiracy but I also don’t think this particular year has anything important to say about it.
Comment by Albuquerquedan
2011-09-08 13:33:57
This year had a La Nina, they tend to be cooling on a global scale but the Southwest can expect to be dry.Thus, no need for an AGW explanation for what is going on. Last year was an El Nino and strong ones produce warmer worldwide temps. and it did. Finally, you have the PDO which tends to run in 30 year cycles. Up to a few years ago it was in a warm cycle and it tends to warm the entire earth and in particular the waters in the Pacific, actually causes poor salmon runs on the West coast. It also either enhances or diminishes the other shorter cycles. About 1977 was the bottom of the last PDO (its coolest point) with 2008 being the top. Thus it is not surprising we had a thirty year run of increasing temps. How exactly an active sunspot cycle plays into these other events, be dammed if I know but would not be surprised if there is a connection. However, Co2 is now running against the PDO and soon will be running against the sunspot cycle and I think it will be clear that Co2 is a very weak warming mechanism.
Comment by evildocs
2011-09-08 13:55:33
Evildoc (I) wrote:
Let’s say AGW is all true and we are all doomed.
My assertion is that all proposed solutions, even at their most extreme, must fail. Seriously. Won’t work. We will all die.
Anyone care to explore why that is so?
Hint: Current solutions for AGW overlook the actual core problem.
Per Ahansen Kay, evil, I’ll play.
There is a high likelihood that humanity will be eradicated by a series of pandemic viruses before it is wiped out by the effects of anthropogenic pollution.
Should we therefore stop trying to develop anti-viral vaccines? After all, Big Pharma stands to make trillions off of the scare-mongering….
Ok then. Welcome to the game
I certainly cannot exclude the possibility of other cataclysms, but in this case… no… because my challenge relates specifically to the thesis of A] Anthropogenic warming and b] Warming being a bad thing. If either is untrue, then we have no worries, either the warming (if there is warming) is not due to us and even if there is warming it is not harmful.
So, for this game we have human-caused warming AND because of that we are all… DOOMED.
Viruses are a confounding variable and thus don’t count.
However, the very solutions bandied for Warming, putting aside making a fortune for their purveyors, won’t work.
USA is 5% of world population and a significant carbon generator as it has been said (i lack proof on hand) that we use about 20% or more of the world’s energy output.
So, fine, we squelch our usage and drop it by 10-20% and maybe even make the generation of what we use a bit more green (assuming one accepts the definitions of what sort of energy usage leads to more warming).
Meanwhile, as the USA economy tanks (spoken of at length in HBB), those parts of the world what have, oh, 2-3 billion people (vs our 300 million) are ramping up their energy usage as they fight to free themselves from the shackles of 3rd-worlds status. After all, a big chunk of what separates mainstream mcmansion USA from mud-hut starvation ethiopia is… per capita energy use.
So, I see— or I hypothesize– that in best case scenario, Algore becomes a billionaire from bank assets in cap-trade scenarios and perhaps the USA– per capita– drops energy consumption a bit and makes a bit greener use of energy over the next 30 years.
Meanwhile our population doubles in 30 years, meaning in 30 years the USA is putting out 150% or more carbon/heat/etc as now, even IF we do everything Al wants us to.
Meanwhile, earth population doubles in thirty years as well from 6- 12 billion people, with half of that in areas that are increasing their carbon footprint per capita, so, let’s say Chindia goes from 2 to 4 billion people in thirty years and its carbon footprint more than doubles, maybe quadruples, as population goes up and clearly energy use is going up. There is after all a reason Ford put new plant in India not Detroit.
So, if USA goes a Gore shade of Green, our carbon footprint goes up 150% IN 30 years and Chindia goes up 400% and rest of world who knows somewhere in between.
If we are, truly, doomed now by AGW if we don’t cut our absolute carbon footprint, then, verily we really are doomed, as in 30 years the planet’s carbon footprint will triple.
So… solutions? Answer isn’t pretty, if one believes in AGW
Comment by Hwy50ina49Dodge
2011-09-08 14:12:46
The world is flat, the sun revolves around the Earth, let us descendant children of x1 Adam & x1 Eve argue, then pray for the truth. How’s that angle of organismic logic working out?
Comment by Happy2bHeard
2011-09-08 16:08:02
“So… solutions? Answer isn’t pretty, if one believes in AGW”
Climate change doesn’t care if you believe in it. I need go no further than Mount Ranier to see the effects on its glaciers over the last 50 years.
IMO, a lot of the folks who argue against it simply don’t want to have to change their behavior. Perry is beholden to oilmen who prefer a “Drill, baby, drill” approach. These are the same people who argue against peak oil and alternative energy and the EPA. They have a vested interest in maintaining the status quo as long as possible. If they can cast doubt on the science, then they don’t have to fight the policy proposals.
Solutions? IMO, an increase in gas taxes solves several problems. It would cut consumption and it would isolate the economy from the effects of volatility in the price per barrel. It lets people make their own decisions about how much to consume. It favors public transportation and denser living, which also helps to preserve farmland and open spaces. It is simple to implement and it increases revenue, which could be used to reduce the deficit (although it probably wouldn’t be). It would increase farm costs and probably the price of food. And there would be other impacts on prices of other goods, which overall reduces consumption and the associated manufacturing and distribution emissions.
Similar taxes on coal and natural gas could also be implemented.
OTOH, whether one believes in AGW or not, we can stick our head in the sand, make no changes, and burn carbon based fuels at an increasing rate (as populations grow and Chindia consumes at a greater rate per person). We can continue to trash environments globally so that when everything crashes, we won’t even be able to live off the land. Unless you believe in a scientific breakthrough or the magic hand of the free market.
Comment by evildocs
2011-09-08 16:21:48
—Climate change doesn’t care if you believe in it. I need go no further than Mount Ranier to see the effects on its glaciers over the last 50 years.—–
A. Lack of “anthropogenic” climate change also doesn’t care if you believe in it. Its not there. Or it is there. But neither has anything to do with the post to which you responded, which assumed– for sake of argument– that A] it is present and B] it is a bad thing.
—Solutions? IMO, an increase in gas taxes solves—-
As noted in my post, just prior to your response, if AGW is severe enough to threaten us now, currently proposed solutions, of which “yours” is a subset, do not allow humanity to continue living. AGW is too big.
—OTOH, whether one believes in AGW or not, we can stick our head in the sand, —-
A. If one does not buy the AGW tale, then not following aggressive “solutions” is not sticking one’s head in sand… it is being reasonable.
—We can continue to trash environments globally so that when everything crashes, we won’t even be able to live off the land. Unless you believe in a scientific breakthrough or the magic hand of the free market.—–
Ahhh, so it’s not about “Warming” then? Warming is just an excuse to do other behaviors we might happen to deem good?
You missed the point of my post. I tossed out some basic numbers (including one in error, not yet noted by anyone) to show that none of the proposed solutions stop global warming from being 3x as bad in 30 years as it is now. The global warming alarmists (whether right or not ultimately) have claimed we already are toast if we don’t change our ways. I showed that changing our ways as they would have us do, is no solution.
So, then, is “sticking head in sand” for believers of AGW the act of believing the Gorean solutions will work? Self delusion? Denial?
And, then, how does one abort life threatening global warming. The answer seems there. But, denial is powerful…
Comment by ecofeco
2011-09-08 18:00:27
A minor quibble, Overdog. Texas officially set the record for the overall hottest place in the entire nation this year… ever.
I just noticed a notice that over 1.4 million people are off line. No electricity, Nada, zero volts and If it lasts more than 8 hours there will be a hit to the regional economy. Now I’m sure it will pop right back on soon and there will be cries for investigations for who’s fault it is.
It’s funny because today was a new record low price per watt for solar panels. I have reached to point I’m putting my money on the line. I’m getting ready to buy 20, 235w solar panels for a price of $1.60 per watt for $7,520 + $250 SH. That’s 4,700 watts and it will cut my electric bill by over 65%. After adding batteries/inverter/ground mounting I hope to spend less than $14,000 before rebates or tax credits. In 5-6 years they will be paid off and when I have to re-roof my house I can just add more panels till I’m completely off the grid.
Search eBay for “SOLAR SHARP NU-235FB1″
Comment by AV0CADO
2011-09-08 18:40:09
But…. the non-believers wont even admit it has been getting warmer and the ice is melting. Yes, the cause for it is up for debate.
I do like clean air.
Comment by AV0CADO
2011-09-08 18:41:52
BlueStar - dont forget to insulate and make your house “smart” you may be able to cut back 25% just doing that.
Comment by Happy2bHeard
2011-09-08 18:47:15
“You missed the point of my post.”
“If either is untrue, then we have no worries”
As you did mine. My point is that belief in AGW is irrelevant. We have other, major problems that would be mitigated by changing our behavior, which would also mitigate global warming.
Meanwhile, as the USA economy tanks
An assumption. If we make major investments here in changing energy infrastructure, the economy may improve.
“ramping up their energy usage “
It doesn’t matter if we change unless China and India also do? My father never let me get away with the everyone else is doing it argument. If we develop a better energy solution, they will adopt it.
“cap-trade “>
Now you are talking policy. This is independent of belief in AGW. I think cap and trade is not very good policy. Too complicated. Too susceptible to being gamed.
“I tossed out some basic numbers (including one in error, not yet noted by anyone)”
I don’t care about your numbers.
“And, then, how does one abort life threatening global warming. “
There are a number of technological solutions that have been proposed, either blocking sunlight (like a Krakatoa event) or reflecting sunlight. I am not certain that any of them are called for at this point. But if we are in crisis in 30 years, they may be tried.
There may be events that cause the planet to cool, like a drop in solar output or a major volcanic eruption, but they do not necessarily negate the validity of AGW.
Comment by ecofeco
2011-09-08 18:54:34
Good for you BlueStar!
(look at those costs people. I told for the the price of a new economy car you can power your house!)
But you’re looking at your payback wrong. Electricity is going to keep going up EVERY YEAR.
Comment by evildocs
2011-09-08 19:23:53
Happy to be heard
Me then: “You missed the point of my post.”
“If either is untrue, then we have no worries”
You: As you did mine. My point is that belief in AGW is irrelevant. We have other, major problems that would be mitigated by changing our behavior, which would also mitigate global warming.
Me now: You continue to respond to the wrong post, or show lack of awareness of the thread into which you have asserted yourself. The entire post assumed AGW is real and is threatening. The point of the post is that all proposed solutions cited fail to solve it and that we remained…. DoooOOOOooomed. DOOOOOooooooomed.
Your distraction and admission that whether or not we are doomed, AGW is just a manipulation to try to get us to “live greener” or some such, is telling. But, since for the moment, we are DOOOOOmed by AGW, my initial challenge, which Ahansen embraced to play, was… why are we DooooooOOOOOOmed no matter the solutions proposed to AGW. You still fail to save us from that Doooom.
Me Then: Meanwhile, as the USA economy tanks
You : An assumption. If we make major investments here in changing energy infrastructure, the economy may improve.
No. Rather, one of the core reasons for existence of this blog. No no jobs. Real joblessness at Depresssion levels 19% not 9% as gov’t says, discounting people out of work too long. Overwhelming debt for country. Real incomes not up in a decade. Economy is tanking. Whether it can be saved is a worthwhile question that by no means makes the “tanking” an assumption.
Me then, on Chindia et all: “ramping up their energy usage”
You now It doesn’t matter if we change unless China and India also do? My father never let me get away with the everyone else is doing it argument. If we develop a better energy solution, they will adopt it.
As noted, it indeed does not matter if we change even if Chindia stays the same and it does not matter if we change even as Chindia grossly worsens the posited AGW. By the criteria of the AGW’ers, we will be DoooOOOOooomed, as per my post, even with the best plans per the Greenies, successfully implemented. Still dooomed. Our better energy solutions as claimed by Gore et al., do not prevent the Doooooom.
So, what’s the only Doooooom blocker, if one believes in AGW? That was in the opening post too.
Me then: “cap-trade “
YOU: Now you are talking policy. This is independent of belief in AGW. I think cap and trade is not very good policy. Too complicated. Too susceptible to being gamed.
Again, you are woefully seeing a tree and not the forest. This whole exercise was a hypothetical, but one clearly defined. You have tangented and missed the point of core question.
AGW was cited as an issue under debate, which for the sake of this thread was granted as being wholly real AND wholly threatening.
Again, if AGW is real and if we were to do the best case solutions posited by the greenies, we are all dooooomed to die due to… global warming. See the first point. That C/T is more game-able than other solutions is irrelevant. You claim C/T is imperfect policy? Doesn’t matter. Perfect current policy still leaves the planet dead from AGW. That’s rather the point.
Me Then: “I tossed out some bas
You now: I don’t care about your numbers.
Me Now; THEN, you are an irrelevancy, chiming in on an issue in which he did not read the terms and fails to understand the game. I pity you.
Me Then: “And, then, how does one abort life threatening global warming. “
You now: There are a number of technological solutions that have been proposed, either blocking sunlight (like a Krakatoa event) or reflecting sunlight. I am not certain that any of them are called for at this point. But if we are in crisis in 30 years, they may be tried.
Per the greenies, we already are in crisis, and science fiction (assuming for moment that AGW is real) is irrelevant. If that solution– and if it is one– is found, then the other stuff proposed by the Greenies is unnecessary. If not, we all are DoooOOOOoomed, so it doesn’t matter. Still the solution is ducked.
You: There may be events that cause the planet to cool, like a drop in solar output or a major volcanic eruption, but they do not necessarily negate the validity of AGW.
Me Now: You did not read the thread, your posts are irrelevant. The validity of AGW certainly is in question, but for the sake of those who care and who believe, AGW’s validity was accepted as a given at the start of this thread. And, given that, we are DoooOOOOoomed. No solution posited by the greenies overcomes the population effect, which– by the numbers you don’t care at all about– give us with 3x current “disastrous” carbon footprint next generation, assuming we do all the solutions the greenies would have us do. Look out melting icebeeerg.
Comment by ahansen
2011-09-08 19:40:06
Who said anything about “warming,” Dr. Strawman? At issue here is anthropogenic pollution and its atmospheric effects– both near and long-term.
It stands to reason that any ameliorating efforts that begin with and are mandated by the USA will be followed by its trading partners. (Look to the brouhaha over California’s emission standards for the precedent.) PRC is already far ahead of America in its “clean” technologies, as is most of Europe and SEAsia. Anti Cap’n Trade efforts are spearheaded and financed by American oil interests. That fact alone tells us all we need to know about the “science” behind it.
Whether any of these efforts will make a dent in what is likely an irreversible cascade is debatable. But what is certain is that without these efforts initiated and promulgated by the US, catastrophic climate change is inevitable.
Personally, I’m going with financial disincentive. Your ahem, mileage may vary.
Everyone involved in the AGW, until they.. .didn’t. Then it became “climate change”. Go figure. But, AGW does stand for “warming”. IN any case, it offers s till with big bucks for Algore if the “solutions” are implemented.
I will forgive you for using disparaging personal name for me. It reveals you are insecure about your argument. I shall endeavor not to stoop to mutating your name in our dialogue. I do find it interesting how many people on blogs start using crabby names for people with whom they disagree, rather than affording them the same courtesy they would want for themselves.
—At issue here is anthropogenic pollution and its atmospheric effects– both near and long-term.—-
Well, no. This is not a thread on pollution. It is a thread on AGW- which, per those who worry about it- will kill humanity and render our planet uninhabitable, a point which for the sake of argument I accepted in order to initiate this thread strand about why we are doomed- per the tenets of AGW- even if we implement the solutions posited by the green crowd. A thread on “pollution” might have merit, but it would be a different thread. Verily, few people advocate, per se, increasing pollution for its own sake. As with most actuarial discussions, the question then is how much pollution can be tolerated, and what costs are acceptable to minimize. But, again, for another thread.
—It stands to reason that any ameliorating efforts that begin with and are mandated by the USA will be followed by its trading partners.—-
It stands to reason that most claims starting with “it stands to reason” often don’t stand to reason ;)’
But, again, as per my first “bombshell post”, my core assertion here is that *even if* our trading partners follow our plans and *even if* we and they manage a 10-30% per capita decrease in carbon footprint, if one believes in AGW then this merely guarantees that all humanity dies from AGW. That’s the key point that has been skirted.
—PRC is already far ahead of America in its “clean” technologies, as is most of Europe and SEAsia.—
Yes, the same PRC that had to close itself down in order to have clean enough air to host the Olympics. The same PRC frantically building ghost cities (sorry to corrupt this AGW thread with a housing reference). And, again, even if per-energy-use carbon footprint improves a bit, the per-person energy consumption of Chindia stands to staggeringly skyrocket over the next generation. So, China’s energy consumption might quadruple, so that even if 15% cleaner from a carbon standpoint, Chindia will more than triple the carbon print, while *maybe* the USA only increases (yes increases) its carbon footprint by 50% (our population doubles, our print-per-person decreases 20%)
—Anti Cap’n Trade efforts are spearheaded and financed by American oil interests. That fact alone tells us all we need to know about the “science” behind it.—
Well, no. That stoops to, say, dismissing anything said ever by any liberal because he is… gasp… a liberal. Or conservative. Or Jew. Or Christian or… whatever.
Indeed, Gore stands to benefit personally more from Cap and Trade than any single oil executive from “anti cap n trade”, not that this matters if one wishes to examine issues only.
Again, AGW is debatable. But the point of this thread is not to debate it. Again, for sake of argument, I’ve conceded that AGW is real and that it will kill us all. My challenge was… why does it not matter if all the proposed solutions (never mind the personal gain they offer some people) are implemented? And, as has been teased out to some degree, the demographic bomb will trump the savings efforts. Modest cut per person in some countries while their person count doubles? Carbon footprint jumps. And, recall, we already are doomed by AGW, so any worsening only confirms doom. And, Chindia et all will see a skyrocketing of carbon, even if clean steps are implemented, because not only are populations jumping, but energy use per person is jumping due to increased industrialization, as already happened in USA. We are thrice doomed.
—Whether any of these efforts will make a dent in what is likely an irreversible cascade is debatable. But what is certain is that without these efforts initiated and promulgated by the US, catastrophic climate change is inevitable. —
No. This is a hedge. Per AGW we are already doomed if we don’t improve. It is clear that AGW will only worsen- drastically- despite even severe steps as outlined by the USA Green Types– as the per-person carbon footprint still will jump due to industrialization or first-worldization of third world lands, and will jump far more even then as there will be far more people on average making bigger carbon footprint per person despite cut-back steps.
So… my post was not (really wasn’t) a snark post.
What’s the only way to avoid death by AGW for the planet? It should be obvious. At some level just as that other fellow started to use worries about AGW as a tool for other green goals he had, I suspect the AGW is displaced anxiety tied to subconcious realization about the real problem on Earth.
And that is…. ????
Comment by evildocs
2011-09-08 21:14:09
I have a fan base!
I feel so… validated.
Comment by ahansen
2011-09-08 23:30:08
“…Everyone involved in the AGW, until they.. .didn’t. Then it became “climate change”. Go figure….”
Science is like that, you see. When new data become available, positions get reevaluated and refined.
“Global warming” is your conceit, not mine. I’ve not used the phrase; hence my calling you to account for your hypocritical use of the “strawman” moniker on others. Nonetheless, you raise some valid issues here which no one has adequately addressed.
Allow me?
But not on Ben’s bandwidth. You may contact me offsite at dee vee ess en tee tee at bee enn eye ess dot net, if you wish, and we can continue this discussion. I sense philosophical layers beyond the subject at hand — which I’ll be glad to respond to if you’d like.
Huntsman’s and Romney’s problme is not that they are too reasonible.
Their problme is that want more of the same that got us here. Raise taxes on the poor and middle class by eliminating tax credits and deductions, then lower taxes on the rich with lower top marginal rates.
RIIIGGGHHHHTTTTT… Because the rich aren’t rich enough as exemplified by the 2% treasury rates, and the middle class are too rich as proven by how fast goods are flying off store shelves.
CLUELESS and dangerous fools!!! FOOLS I tell you.
Reagan’s economic turn around was not based on lowering taxes on the rich while rasing them for the poor and middle-class (which is what he did). The turn around came from turning on the debt. When he took office, we were at post-Civil-War record low total (public and private) debt, and 20 years after he left office we were at all-time record high total debt/gdp ratio.
Reagan put us on the road to massive debt which is going to collapse into depression. Yeah depression. Yeah Reagan.
Let’s also not forget that the 1980’s was when CEO’s (*ahem* JACK) began cannibilizing their own companies to harvest profit.
Corporate cannibilism didn’t make much of a dent at the time. Easy for a President to look good under those circumstances as long as he could read Freedom and Apple Pie off his teleprompter to assuage the fears of the laid-off in the rust belt. But after 30 years of corporate greed, now it’s cutting into even the basic standard of living, especially for the lower middle classes. Hard for any President to look good.
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Comment by measton
2011-09-08 12:14:22
Nope they hid the cannibalization with a GIANT debt bubble. The currtain is now being raised and the formerly middle class and upper middle class and lower end elite are about to find out that the elite have been drinking their milkshake.
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
Comment by ahansen
2011-09-08 21:46:39
evil, darlin’,
You’re not like your usual well-reasoned self today. Whatever has lodged itself in your nether cavities, I hereby wish it elsewhere and away from your generally-good-witted person.
—Huntsman’s problem is the same as Romney- they’re far too reasonable for a party whose primary voters still think the world is flat and Adam and Eve rode a dinosaur to Sunday school.—–
Strange. I’m a primary voter, with degree from Princeton in Molecular Biology, a practicing physician. I don’t believe the world is flat. Having spoken to many primary voters, I found none who believed Adam and Eve rode a dinosaur to Sunday School. For that matter, many of us who are primary voters are not of a religion that ever had Sunday school
Evidence suggests that your party’s voters wants to be represented by hard core theocratic wackaloons. Stop voting for them and we will start thinking the majority of your party is reasonable. Or perhaps start/join a new party that dosent cater to the insane minority.
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Comment by evildocs
2011-09-08 08:51:47
You will be disappointed to learn I don’t vote based simply on your wishes and directives. You use mindless ad hominem insults in place of issue-based discussion, which has the effect to trivialize your input. Very disappointing.
Too, it is a bit prideful of you to believe “we” worry too much how “you” think of “our” party, if I must retreat to simplistic jargon such as you offered.
My issue-oriented observation in that the Republicans stand pretty good chance to take the General Election, whichever of current candidates wins nomination.
The current occupant of high office, having had no prior executive experience, and at least superficially demonstrating narcissism which transcends that of the republican candidates, has been a bloody disaster. The opposition candidates might or might not be great, but they have been handed a remarkable opportunity to win, sans greatness, due to the course of the current administration
Can’t the RNC find a better place to fish for votes?
Comment by oxide
2011-09-08 10:15:36
If I were to guess, I would say that Ben’s blog is getting a little too successful and little too sensible for the R’s comfort zone. The wouldn’t send the paid trolls otherwise. Maybe they’ll click on a few ads while they’re here.
MSNBC and CNN comment boards have already been overrun with them.
Can’t the RNC find a better place to fish for votes?
Golly and gee willikers. Is the DNC mad that the RNC also has follower here. That is a pity for certain.
Weird how this RNC guy (I s’pose now I must join, having been so instructed), chats issues, to which others respond with Straw Men
Snort!
Comment by jim
2011-09-08 10:43:32
I apologize if that came off as an ad hominem insult, or a personal insult.
It was, however, meant to be a direct observation and opinion that the modern day Republican Party has come to be the party of ignorance and theocracy. They are no longer the party of economic conservatism and small reasonable government; they have become the party of christian only corporations. I believe that their core supporters (or at least the ones they pander to) are no longer remotely rational, and their leadership and actions has come to reflect this.
This may not be the makeup of the entire party, or even a majority, however, this is what it looks like from the outside.
Comment by Realtors Are Liars®
2011-09-08 11:03:40
“The current occupant of high office, having had no prior executive experience, and at least superficially demonstrating narcissism which transcends that of the republican candidates, has been a bloody disaster.”
You hate him….. no reason to tapdance. Be a man about it.
Comment by evildocs
2011-09-08 11:05:02
Now we return at least to a semblance of issue-based discussion. That’s a start.
Yeah, so, people in general are morons. I get it. Said moronitude (sic) manifests with different irrationalities for different groups of the morons. I get that too. Where I start to laugh is when one of the “Yankees better! No! Mets better!” political groups starts to believe the “other side” has monopoly in this arena.
We have the religion of “flood and no dinosaurs” for some. We have the religion of “global warming”, right down to Indulgences and to freedom to practice not as they preach for the High Priests, for others. Never mind mapping these schisms to the ecomony? Entitlements for all? Or Social Darwinism? And, yeah, I have a solid science background and read science journals weekly, but remain unconvinced by AGW. But, that’s a tangent. And, yeah, I read multiple econ blogs daily. No doubt that leaves me in position to save the world.
And, yeah, there are oodles more examples bilaterally. I see little evidence that Prez’s who pander to atheistic elitists hypergreens do better for the country than do Prez’s who cater to those who derive their morality from their understanding of Divine Law. I see media Left see racism at every turn, in those who disagree with the Prez, seriously leading me to see major projection going on.
I invite you to investigate the the psych theory of Backfire Effect, which anyone who posts on a blog should read. The basic notion that most who enter have preconceived notions and that contrary info has the effect of *reinforcing* their preconceived notions, that few enter ambivalent and really wanting to learn, that most want to *seem* right- win the brawl- more than they want actually to *be* right, to know truth, recognizing of course that the process of “knowing truth” is a bumpy path.
Does someone *really* believe tossing “RNC member” as a response to an issues-oriented post with which he disagrees, is likely to convince either his target or casual observers of the merit of his *own* position? Nah. No one could be that foolish, right?
To return to your point, in my view, both parties have to cater to common denominator populations. Sad. But, all else aside, it is far from clear that catering to those who buy into morality derived from Judeo-Christian heritage are doing worse for the country than those who cater to those who want monstrous entitlements and to punish those who create business. Yeah, each Party has way more to it and each of those points (J-C heritage vs Entitlements) can lead to pages of debate. So it goes.
From an econ side, if I must post my own actual beliefs, instead of simply picking at nonsense I see tossed about, I believe our society is suffering from a 40 year failure process. It wasn’t Shrub’s fault. It’s not Oblamer’s fault. To a degree they are bobbers on the tidal wave. Where Obama has alienated many neutrals, has not been his failure to save economy, but has been his incessant complaining the economy was other people’s fault. That too, can give pages of comments.
Comment by evildocs
2011-09-08 11:19:58
Well, my thoughtful long response seems to have been eaten by the system or in moderation for length. We shall see if it shows up.
Comment by evildocs
2011-09-08 11:31:15
—-“The current occupant of high office, having had no prior executive experience, and at least superficially demonstrating narcissism which transcends that of the republican candidates, has been a bloody disaster.”
You hate him….. no reason to tapdance. Be a man about it.
————
Ahhh, the next step beyond Straw Man and Ad Hominem attack. We call this one The Telepath
How to respond at this level???
Let’s see…
“I know you are but what am I”
“Neener neener”
“Don’t hold back ‘realtor”, you know you really miss Bush”
And so forth.
Gosh, at least Jim switched back to issues oriented discussion. Some of you guys are pretty week. Do research the Backfire Effect.
Fun Stuff
Comment by NYGoon
2011-09-08 11:45:21
All that writing in an effort to appear agenda-less and you still negatively characterize those you disagree with and use positive language for positions you anchor to. You label us “partisan” and accuse us of attempting to persuade or convince the other side…. and that is precisely what you’re doing. Persuading others is a losers game and you’re still playing it.
Comment by jim
2011-09-08 11:53:39
Actually, I don’t think he was trying to criticize the attempt at persuasion, just the manner used in the attempt.
And he’s right about that, coming into an internet forum calling people names will not convince anyone to change their view on things. It is, however, fun.
/rest of what NYGoon said seemed about right though.
Comment by Realtors Are Liars®
2011-09-08 12:04:55
Of course E-Doc can’t respond because it’s true. He has a burning hatred for O.
Comment by jim
2011-09-08 12:17:42
“Ahhh, the next step beyond Straw Man and Ad Hominem attack. We call this one The Telepath
How to respond at this level???”
The hell with that, I’m taking it to the NEXT level.
You are now breathing manually.
You are now blinking manually.
Your head itches.
The Final Countdown is playing in your head.
MWHAHAHAHAH
Next, I shall levitate your cat using the power of my mind alone!!
Comment by ecofeco
2011-09-08 12:53:39
“The current occupant of high office, having had no prior executive experience…”
Do any of them ever?
Term limits, how do they work?
Comment by evildocs
2011-09-08 13:58:44
Some goon wrote ——All that writing in an effort to appear agenda-less and you still negatively characterize those you disagree with and use positive language for positions you anchor to. You label us “partisan” and accuse us of attempting to persuade or convince the other side…. and that is precisely what you’re doing. Persuading others is a losers game and you’re still playing it.—–
Evildoc’s Response: Projection is a terrible curse. I’m sorry you suffer for it. I have the most vague recollection that all responses by me of this sort have been prompted by some other critters’ responding to my issues-based posts with retorts of “RNC member and Troll”. Soooooo…. who be da partisan here, matey?
Snort!
Comment by evildocs
2011-09-08 14:01:38
Some lying realtor wrote, “Of course E-Doc can’t respond because it’s true. He has a burning hatred for O.”
Hey, I like the Story of O.
I laugh heartily at folks who pretend to read minds, while contributing nothing but mindless ad hominem attacks to what could be an issues-based conversation.
I invite evidence that I hate… anyone.
Snort!
Comment by evildocs
2011-09-08 14:10:04
Well, if that’s a real question, the real answer is yes, some of the have prior executive question. Then of course, if I may hand you your next and perhaps stronger question, would be, “does prior executive experience correlate to being a better Prez?”
Of course, then we need to define “better”
And… off we go
Comment by oxide
2011-09-08 14:12:58
Well technically, Grover Cleveland did.
Comment by Realtors Are Liars®
2011-09-08 14:34:41
You have a burning hatred for O. Face it.
Comment by evildocs
2011-09-08 18:59:46
——Comment by Realtors Are Liars® You have a burning hatred for O. Face it.———-
A. It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
B. Snort!
Comment by GrizzlyBear
2011-09-08 20:10:22
Narcissistic Personality Disorder alert!
Comment by Realtors Are Liars®
2011-09-08 20:34:03
More accurately Obama Derangement Syndrome. (now tapdance Waldo)
And that’s the challenge. Having the wrong litmus test, or let’s say, “being simplistic in a complicated world”.
Believing or not in Evolution no doubt raises some political challenges for some followers of politics and for some who wish to play in politics.
Buuut… so too does not believing in secure borders, such that a chunk of entry level jobs no longer are available to citizens with limited skill sets.
Soooo…. vote for a group because (assuming one believes it) it would improve border security, even if some of its members disagree with me as to how humanity came to be here, or vote for the other guys, because over beers I might be happier chatting evolution with them, even as they embrace illegal immigration and trash the country. Which is worse, how to choose how to choose
Comment by Carl Morris
2011-09-08 12:14:03
Thanks evildocs. I can’t tell if I agree with you or not on issues, but I like your style.
Comment by alpha-sloth
2011-09-08 19:43:11
And that’s the challenge. Having the wrong litmus test, or let’s say, “being simplistic in a complicated world”.
Believing or not in Evolution no doubt raises some political challenges for some followers of politics and for some who wish to play in politics.
Your demand was that we present documentation that most Republicans don’t much believe in mainstream science- which we did, and I guess that’s why you’re now trying to change the argument into whether belief in science is germane to political judgement. I say yes, as would any reasonable person, for reasons too obvious and tiresome to state, other than to point out that recognizing reality would seem important to any type of judgement.
Next absurd argument?
Comment by evildocs
2011-09-08 21:52:19
===present documentation that most Republicans don’t much believe in mainstream science- which we did, and I guess that’s why you’re now trying to change the argument ===
Nonsense. Your gripe was with a single issue, a microcosm. I embrace the macrocosm. Too, given that most of these arguments are used by people to say, “here’s why you should vote for Party X not Party Y”, I simply skip the obfuscation and get to the real issues.
Being Mormon is a huge liability to Huntsman. His remark about only giving pledges to his wife and country showed he is very much trying to down play his church.
It’s very easy to explain. There is way more money going out than is coming in. In the next decade, there will be WAY more money going out than coming in based on the simple demographics of the US and the benefits promised. It can’t work.
Either tax the hell out of younger workers, or cut benefits, and or/extend retirement age to 70 and beyond.
That’s pretty simple to explain. There isn’t enough money to cover the projected promises.
You recall the Democrat “lockbox” don’t you? What happened to that? Never happened.
And how about PAYGO, remember the “pay as you go” based on revenues taken in the Democrats raved about, and passed.
They still haven’t passed a budget after 2 years of Obama in the White House.
Why? Simple. They would have to show their hand. They won’t.
They’ll pass it to a committee, like Obama already did, and when they don’t like the result, they’ll blame the republicans and pass the problem down the road with a “continuing resolution”.
The Texas Governor if correct. SS is a Ponzi scheme and he is the only candidate with the nads to call it what it is.
Ron Paul won the straw pole[ Drudge Report] despite the main news including Fox has blew him off as some “crack pot”. His answers spoke with truths and it showed when compared to the answers others gave.
Jon Stewart had a good piece on this showing all the coverage to people like Santorum who got a fraction of the votes Ron Paul got, this despite not having endless food and high priced entertainment like some of the tents.
Perry is a very sinister character, reminds me of Rumsfeld or Cheney. On top of that he’s one of those conservative, fake bible thumpers that makes liberal use of the death penalty. The forced vacination incident of school girls in Texas after meeting with Merck lobbyist (Dr. Mengele) will not go over well with the voter. I can picture low hitting mudslinging ads based on this issue alone.
Romney is another career politician loyal to Wall Street, Big Oil and the military/industrial complex. He has no firm stand on any issue, perfect candiate for big business.
The media and big business hate Ron Paul. His principles, intellect, integrity and stuborness get in the way of doing what’s right for Wall Street and big business. No campaign donation or air time for you!
At least Ron Paul comes across as an honest and sincere person,
whom the country could trust even if you don’t agree with every
policy he is in favor of.
I agree with you, unc, but I was one of those Ross Perot voters. He offshored jobs in the end. You live, you learn, they all are BS artists. But I do think Ron Paul is a good man.
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Comment by oxide
2011-09-08 11:12:32
It’s possible to offshore even if you’re not bought off. Offshoring is classic Tragedy of the Commons. The other guy did it, therefore I have to do it too or go out of business. As a corollary, the honest ones who don’t offshore go out of business and disappear, so everyone left is dishonest by definition selection.
The only way to get around it is to pass laws preventing it to everybody.
fake bible thumpers that makes liberal use of the death penalty.
“When Brian Williams of NBC mentioned that 234 people had been executed in Texas, the audience applauded—which they did not do when Perry credited Obama with ordering the operation to kill Bin Laden.”
Slate
Yeah… little scary when people clap on the mention of killing people.
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Comment by Arizona Slim
2011-09-08 09:56:36
I agree. Even if the state kills one innocent person, that’s one too many.
Comment by oxide
2011-09-08 14:14:57
No, more like considering the audience. Anyone sitting in that audience likely doesn’t want to admit that it was the black man, and not the golden boy, who got the brown man.
I’m a bible thumper in that I believe in God, and I don’t really give a crap that 234 people have been executed. Sorry but I care more about the victims than the killers.
I would agree that there are problems with the judical system re: determining guilt, but once guilt has been determined, I think the death penalty is just fine.
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Comment by darrell_in_phoenix
2011-09-08 08:45:10
I also do not have a problem with the death penalty. However, I consider it an evil, even if a necessary evil.
When applied, it may be justified, but that doen’t mean that its use was not sad.
I would never applaud its use.
Yeah, there were murders so we killed the murderer!! Woot woot.
Comment by jim
2011-09-08 08:46:18
IN theory, I am fine with the death penalty. In practice, we keep executing innocent people, especially Texas. They keep finding more and more cases where people have been proven innocent by better forensics, or crooked courts. The death penalty is too final.
Comment by Pete
2011-09-08 11:01:10
“proven innocent by better forensics, or crooked courts. The death penalty is too final.”
Bingo. In theory I can live with the death penalty, provided no innocent person would ever be executed. Don’t know if we could ever get there, given the imperfect and corruptible nature of our system.
Comment by Neuromance
2011-09-08 11:18:26
IN theory, I am fine with the death penalty. In practice, we keep executing innocent people, especially Texas.
There’s a lot more people killed by repeat murderers than even the grandest claims of people killed by wrongful execution.
Plus, there’s deterrence. We’re expected to believe that incarceration does in fact deter, yet a harsher penalty like the death penalty does not? Absurd.
Comment by Neuromance
2011-09-08 11:20:33
Bingo. In theory I can live with the death penalty, provided no innocent person would ever be executed.
By that standard, we wouldn’t let people drive, fly in airplanes, build buildings, or go swimming. Or, even incarcerate people. Because innocent people die as a result of all those things.
Comment by polly
2011-09-08 11:30:03
“There’s a lot more people killed by repeat murderers than even the grandest claims of people killed by wrongful execution.”
And you don’t see any problem with the state being the one that does the executing of an innocent person? It is only a matter of numbers? Never mind that the issue can be solved by not paroling convicted murderers.
The only situation in which I could ever see agreeing with the government excuting someone is if that person proves that even prison is not enough to keep them from killing again. It might be appropriate for a person who cannot be kept from killing even by incarceration in a supermax. But even then I see that as our failing that should be corrected, not really a reason to have the state decide who lives and dies when isolation from the rest of society should be enough for our protection.
Comment by Pete
2011-09-08 11:39:23
“There’s a lot more people killed by repeat murderers than even the grandest claims of people killed by wrongful execution.
Plus, there’s deterrence. We’re expected to believe that incarceration does in fact deter, yet a harsher penalty like the death penalty does not? Absurd.”
All irrelevant. When the state kills an innocent citizen, EVEN ONE, it has lost all moral standing.
Comment by Pete
2011-09-08 11:42:45
“By that standard, we wouldn’t let people drive, fly in airplanes, build buildings, or go swimming. Or, even incarcerate people. Because innocent people die as a result of all those things.”
Those are not done at the hands of the state. Huge difference that should be obvious. And incarceration leads to death? By that measure, so does living. And as I recall, prisoners get free health care.
Comment by Neuromance
2011-09-08 11:48:25
The only situation in which I could ever see agreeing with the government excuting someone is if that person proves that even prison is not enough to keep them from killing again.
We had a famous case in Maryland where a double-murderer, shackled hand and foot, managed to kill another prisoner, during a bus ride.
All irrelevant. When the state kills an innocent citizen, EVEN ONE, it has lost all moral standing.
Everyone’s entitled to their opinion. I disagree.
There is no way to deal with murderers without getting your hands dirty. I prefer to err on the side of safety. And execute them.
It’s the closest thing to justice we can reach; it prevents them from killing again; and it deters as least as surely as the lesser punishment of incarceration.
Comment by jim
2011-09-08 11:58:26
I think we can all agree that it is better a thousand innocent men be executed rather than let one guilty one escape punishment. Remember, everone is guilty of something. It is what our legal system is founded on.
Comment by Neuromance
2011-09-08 12:00:14
And you don’t see any problem with the state being the one that does the executing of an innocent person? It is only a matter of numbers?
One has to look at this in context. Putting people in jail already results in the death of innocent people. All the time. It creates a risk, when violent offenders are housed together. That risk is realized.
So, you have one criminal justice policy that definitely results in the death of an innocent person. I see few objecting to that policy.
You have another criminal justice policy, execution, which may result in the death of an innocent person. There are vague, grand claims about innocents executed, but no credible evidence of any innocents executed, since the reintroduction of the death penalty in the 70s.
One can object to the death penalty. But objecting to it on the grounds of the possibility of the innocent executed, and then not objecting to incarceration with its observable high body count, seems to… not be looking at the totality of the issue, only one side.
Comment by Neuromance
2011-09-08 12:04:19
I think we can all agree that it is better a thousand innocent men be executed rather than let one guilty one escape punishment. Remember, everone is guilty of something. It is what our legal system is founded on.
So it’s better to let 10 guilty men go free than to imprison one innocent man.
So - how about letting 5 spree killers and 5 serial killers go free, to keep that innocent man out of jail?
It’s all about the cost/benefit.
Comment by Carl Morris
2011-09-08 12:08:12
Bingo. In theory I can live with the death penalty, provided no innocent person would ever be executed. Don’t know if we could ever get there, given the imperfect and corruptible nature of our system.
I think I’ve mentioned this before. I think we need two tiers of guilt. Beyond a reasonable doubt, and beyond all doubt. The second being defined by some combination of witnesses and confessions, and being the only category eligible for the death penalty.
Comment by polly
2011-09-08 14:11:18
Witnesses and confessions are both notoriously unreliable. And, yes, I am completely serious.
Comment by Carl Morris
2011-09-08 14:26:17
Yeah, I know. There ought to be some threshold that could be legally defined, though. There are probably some cases that would fit even a very stringent definition. And those are the ones people get so upset about when the person is not executed and lives to commit more crimes.
Comment by Happy2bHeard
2011-09-08 17:00:26
My problem with convicting and executing the innocent is that there is a guilty person loose who is still free to commit mayhem.
Comment by nickpapageorgio
2011-09-08 19:28:33
I hope every state will eventually decide to abolish the death penalty. Over zealous prosecutors, lying cops and circumstantial evidence have all led to executions and that is shameful.
those 234 people had been through multiple trials, as noted, and found in each case to be guilty of heinous crimes.
Bin Laden, who could have provided valuable intelligence, was executed, without trial, when, in my mind, he could just as easily have been captured and put on trial. Why not?
The Military acted as Court, without trial, guilt assumed.
How can the 2 situations be considered equivalent?
It reminds me of the swift Execution of Timothy McVeigh. He didn’t get to spend decades on trial, with countless appeals. He was eliminated very quickly. I would have thought the FBI would have wanted to interrogate him more. The press should have been aching to do a profile and make a series of shows about his family, friends, his “state of mind”, etc, etc. But no. Gone.
NO further questions to be asked.
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Comment by measton
2011-09-08 13:09:43
A long trial would have been a GIANT Propaganda gift to Al Queda.
PS What’s to say OBL isn’t in some cave coughing up intelligence as we speek?? Do you have any proof that this is not the case?
Comment by oxide
2011-09-08 14:17:02
measton, there’s the Photo of the Hanging Eyeball, or so I hear. That’s about as good as we’re going to get.
Comment by Carl Morris
2011-09-08 14:30:49
I have shot human-sized animals in the head before. On at least one occasion eyeballs came out of their sockets. Not the grossest thing I’ve ever seen, but enough that I have no desire to see any OBL pictures. I wouldn’t have any way of knowing for sure it was him in the picture anyway.
Yeah, will be tough choice in the General Election, Right vs Left. Sinister but effective, vs incompetent and community organizing… and a bit sinister too
Right on, Mike! You nailed it. Perry is a pos. While Texas burns, he’s out campaigning. That should tell anyone with half a brain what he’d do as prez. While the country goes down in flames, he’d be doing his Elmer Gantry routine. One helluva snake oil salesman.
Perry ought to be back in his state, if for no other reason than to lend moral support. But he’s not going to let massive wildfires inconvenience him, is he?
OTOH, he’s seeing to it that Texas gets rid of some of its excess housing stock, no?
I have to say, in my years of doing business over the internet, the most courteous, fast paying customers I’ve had have come from Texas, hands down. (That’s not to say I haven’t had good customers from other parts of the country, I have, but my dealings with Texans have been consistently rewarding) I have always enjoyed my interaction with Texas customers. Based on my experience, I don’t understand how Texans elects such governers as Perry and Bush. Maybe they’re just too decent to see the evil in others.
It’s the two party system. Chances are, one party’s candidate is going to win. This is because the people are sick of the last bastard. So the nomination process begins and 1 or 2 % of the population actually pick the nominee. That person wins and everybody wonders, how did we end up with that fool?
It works the same way when they migrate up to federal office.
Anyway, every school boy and girl in Texas knows the Governor is a figurehead, and the LT Gov actually runs the state govt.
Comment by oxide
2011-09-08 08:18:08
Getting rid of housing stock will just screw renters even more. Who’s our Austin poster — his rent went up 20%(?) and he had no other choice because all LL’s were raising rent at the same time.
Comment by palmetto
2011-09-08 09:09:24
Hey, Ben, thanks, I should have known that, actually.
With all the crap Texans have taken over the years, I’m surprised they’re still standing. A real testimony to the character of the Texan.
Of course, it’s been my experience that where people are at their best, the bastards move in to hold them down.
Comment by ecofeco
2011-09-08 12:57:35
I’ve lived in Texas many decades, and you give them too much credit.
Mostly, they’re just too damn dumb to know they are being effed over.
The fact that a preventable cancer is sexually transmitted should not cause a conniption fit amongst parents.
I don’t think that’s causing the conniption. It’s the fact that a medical procedure (innoculation) was being mandated by law, that the cost was to be borne by the parents (i believe), and Perry had a huge conflict of interest in the whole thing.
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Comment by darrell_in_phoenix
2011-09-08 11:00:39
As stated, lots of vaccines are manditory and paid for by parents.
The problem with this one was the STD nature of it. The Bible Thumbers in Texas didn’t want to send “mixed signals” to girls. Same as their abstenance only education.
I guess they like lots of teen moms with STDs in Texas.
The problem with this one was the STD nature of it.
Care to back that up?
Perhaps it has to do with the real risk of transmission to classmates. Other mandatory vaccinations are for diseases that are airborne…this one is not, and as such doesn’t exactly pass the same muster for mandatory vaccination.
Do you really claim to know why people objected? Can you back up your statement that people objected due to the “STD nature” of it.
Comment by ecofeco
2011-09-08 13:01:20
I can. I live here and he’s right.
For more info, search the state newspapers, especially the comments sections on their websites.
The second most important factor of concern is the fatal reaction risk to the vaccine.
Comment by Realtors Are Liars®
2011-09-08 14:53:51
“The problem with this one was the STD nature of it. The Bible Thumbers in Texas didn’t want to send “mixed signals” to girls. Same as their abstenance only education.”
The ScriptureSlingers went berserk over this “issue” no different than all their other sex related manufactured nonsense.
“The fact that a preventable cancer is sexually transmitted should not cause a conniption fit amongst parents.”
It’s the rush of the vaccine Gardasil to market, and the newly discovered side effects. Seizures after the final injection, have been reported as a side effect.
Like many drugs, the masses are the study, since REAL controlled studies slow down the marketing time. Time is money, the hell with the collateral damage.
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Comment by cactus
2011-09-08 13:08:08
It’s the rush of the vaccine Gardasil to market, and the newly discovered side effects. Seizures after the final injection, have been reported as a side effect.”
my step daughter who works in the medical field warned me about this, at the school my younger kids go to they were pushing this but it was not mandatory.
I love the intellectual discussion of deep issues. Sigh.
right there with you, evildocs. I can’t help but notice the trend of the folks who resort to strawmen and ad hominems. The worst part is they don’t act solo, but seem to like to pile on the logical fallacies.
So many smart people here of different backgrounds, different jobs, different ages, and different geographical locations. And it’s wasted by such childishness.
Sigh. We’ll have to purge CIBT from the board. Too bad. I like political trolls.
troll. Troll. TROLL. Ooooh, so empowering for him. It can’t think. Just babbles. I like you CIBT
Comment by nickpapageorgio
2011-09-08 19:43:18
“Easily eliminated: Keep the RNC trolls off the HBB.”
Yeah, it’s terrible living in a country were multiple points of view exist. If only the poor progressives could just rule the airwaves and the blogosphere uninhibited.
Why are these RNC trolls coming out of the woodwork here? I repeat: This is not a political blog. Go pump Cretin Science education on some other blog, pleeze…
Comment by evildocs
2011-09-08 22:35:59
Why are these DNC trolls coming out of the woodwork here? I repeat: This is not a political blog. Go pump Cretin Science education on some other blog, pleeze…
Comment by nickpapageorgio
2011-09-08 22:37:57
Nope, but if I am to be called a Troll after all these years of posting, I would prefer to be called a Libertarian Troll.
I repeat: This is not a political blog. Go pump Cretin Science education on some other blog, pleeze…
PBear, you really need to look in the mirror here. You raise politics day in and day out.
You’re right, the subject of this blog is not politics. However many posters engage in political discussion as it relates to housing and our current economic mess. You are just as guilty as the rest of us. Do you really think you somehow have the moral high ground here such that you can tell others to stop it and go away?
Please, keep your ad hominems to yourself. Labeling anyone with a different point of view is a “RNC troll”? You are so ridiculously closed-minded. Yet here you go on hurling insults at people who are religious (note the crack against mormons above).
You really need to take a long look at your own behavior here before you start criticizing others and trying to chase them off. Sure, you post a lot of articles. Outside of that, you simply stir the pot, call people names, and insult people. Is that really all you’ve got to bring to the table?
IMHO, Ron Paul can beat Obama.. However, he’s not crazy enough to get the GOP nomination, and therefore, is unelectable. It pains me to say that, because, although I find some of his ideas a little “out there” I really think that he has the mental horsepower and the ability to help heal this country.
The trump card is that RP can, without a doubt, make any other GOP candidate unelectable. If he runs as an independant, it will, without the slightest shred of a doubt, get Obama a 2nd term. It’s the nuclear option, and I doubt that he will take it if he doesn’t get the GOP bid. However, it’s something the GOP has to worry about; he’s the only candidate that can split the vote like that today, and it makes him extremely dangerous.
Ron Paul is a smart guy. Yes, some of his ideas are “a little out there” but a lot of the conventional ideas got us where we are today. Maybe it is time to try something new, something that’s well reasoned.
For example, we tried a $800 billion stimulus package that didn’t really stimulate. Japan tried this same recipe for 2 decades. All it did is create the largest debt/GDP ratio in the world. So what’s their response? They double down and try another stimulus program. I call that learning resistant. Maybe its time to try something else.
“If he runs as an independant, it will, without the slightest shred of a doubt, get Obama a 2nd term.”
I disagree. By 2012 things might be so bad that he could win the election. A lot of people that will not vote at all otherwise might vote for RP.
yeah yeah yeah pay down peoples credit cards and for those of you that are debt free…hey you get an ounce and a half of gold or 75 ounces of silver….fair enough?
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Comment by alpha-sloth
2011-09-08 08:12:04
The bargaining stage?
Comment by aNYCdj
2011-09-08 08:34:02
Just once lets try a bottoms up approach
or we can rasie gas taxes which would start filling the highway trust fund tomorrow and we can put people to work quite quickly repaving and filling potholes….
I loved Ron’s comment about the fanatical zeal the candidates obsessed with on building fences and “multilayer defenses” on the border. They work both ways too as they can keep us from escaping from Amerika. There is already a law on the books from the Patriot Act that can freeze your funds if you try to move to another country if the Govt. labels you a risk or threat.
Speaking as someone who lives within an hour of the much-vaunted border fence, I can tell you that it doesn’t work. Parts of it have already been undermined by heavy rainstorm-caused flooding. And people are already figuring out how to climb over it.
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Comment by X-GSfixr
2011-09-08 13:11:25
Fine the crap out of, or put anyone and everyone hiring illegals in jail, and you wouldn’t need a fence.
“Fixed defenses are monuments to man’s stupidity”
George S. Patton
Comment by Carl Morris
2011-09-08 13:49:02
“Fixed defenses are monuments to man’s stupidity”
I know they’re a good way to lose to any player that’s not stupid in the game Starcraft.
Comment by Steve J
2011-09-08 14:14:48
In Big Bend National Park, you can simply walk across the mudflats to Mexico in the dry months(assuming your vaccinations are upto date).
Comment by oxide
2011-09-08 14:19:18
Does the fence work when it’s actually still a fence?
Good news! All that money that flows to China? It comes back when the rich flee the conditions of unfettered, poorly regulated crony capitalism and emigrate here- to the sweet land of regulation- to live in a land with an FDA and an EPA.
Top of Chinese wealthy’s wish list? To leave China
yahoo
BEIJING (AP) — Chinese millionaire Su builds skyscrapers in Beijing and is one of the people powering China’s economy on its path to becoming the world’s biggest.
He sits at the top of a country — economy booming, influence spreading, military swelling — widely expected to dominate the 21st century.
Yet the property developer shares something surprising with many newly rich in China: he’s looking forward to the day he can leave.
Su’s reasons: He wants to protect his assets, he has to watch what he says in China and wants a second child, something against the law for many Chinese.
Among the 20,000 Chinese with at least 100 million yuan ($15 million) in individual investment assets, 27 percent have already emigrated and 47 percent are considering it, according to a report by China Merchants Bank and U.S. consultants Bain & Co. published in April.
Nearly 60 percent of the people surveyed said worries over their children’s education are a reason for wanting to leave.
China’s richest are increasingly investing abroad to get a foreign passport, to make international business and travel easier but also to give them a way out of China.
“The living conditions abroad are better, like residential conditions, food safety and education,” said the millionaire as he dined in the VIP room of a Beijing restaurant. Lowering his voice, he said for many rich there are worries about the authoritarian government. “This is a very sensitive topic. Everyone knows this. It’s freer and more just abroad,” he said.
And the Chinese tax the wazoo out of rich people. The maximum tax rate is 45%. No “state” income tax but no way to do any tax planning either. No wonder the super-rich want out.
Well Capital is global and knows no national loyalities. Perhaps one day their elites will leave the country a burned out smoking hulk - not unlike the way our elites left our cities once they were finished with them?
Sounds to me like it’s a good business model for the USA, going forward……”Land of the Robber Barons and Despots”
Rape and pillage your own country, poison the land with pollution, steal everything you can steal, then come to the USA, where the air and water is still relatively clean, the courts will protect you as long as you have money, protected by a police force biased toward arresting petty criminals instead of white collar criminals.
I’ve gotta wonder what kind of roadblocks their government will put in their way.
When I was in college in the mid/late 1970’s I went to school with a girl from a very wealthy family from Lebanon. They were unable to get permission for all the family members to leave the country at once because they knew that once they all left they probably wouldn’t come back. Each time she came back from visiting home she was loaded up with diamonds and gold jewelry as a way to get some of their money out of the country.
Letting homeowners to take advantage of ultra-low interest rates would decimate MBS investors, which cuts the odds of such a scheme.
Giving every homeowner the same largesse of record low interest rates enjoyed by blue-chip corporations would seem to be the ultimate free lunch, both in terms of politics and economic policy. No wonder there seems a growing drumbeat that the Obama Administration will announce such a plan next month as part of its program to rouse the economy from its torpor in time for its reelection campaign in 2012.
The appeal of such a scheme is undeniable. Too bad it has myriad problems, which is why it has failed to gain any traction when it has been proposed previously.
The idea of letting homeowners refinance at interest rates as low as 4% surfaced again last week when the New York Times reported it was under consideration at the White House. The plan would allow loans already backed by Fannie Mae and Freddie Mac, the mortgage giants under federal conservatorship, to be refinanced even if the homeowners were “under water,” that is, owing more than the value of the property because of the collapse in house prices.
Presumably a borrower who has continued to pay off a 6% mortgage would be more willing and able to pay off a 4% loans. For a $400,000 mortgage, that would cut the monthly payment to about $1900 from $2400, freeing up $500 a month that could be spent elsewhere. It would be equivalent to a tax cut that would not increase the deficit.
After all, if a member of the Dow Jones 30 Industrials can borrow at less than 4%, such as Walt Disney (ticker: DIS) can borrow at 4%, why shouldn’t Middle Americans whose mortgages are backed by taxpayer-supported mortgage agencies? Disney recently issued 10-year bonds with a 2.75% coupon rate, the lowest on record for such a maturity (which would be comparable in duration to a 30-year mortgage with monthly principal and interest payments.) Standard & Poor’s rates The Mouse single-A, several notches below the recently reduced double-A-plus for Uncle Sam, as well as its charges, Fannie and Freddie.
Top policymakers recently have endorsed the idea of boosting housing and mortgage lending. In his speech in Jackson Hole last week, Federal Reserve Chairman Ben Bernanke endorsed “good, proactive housing policies” as steps to stimulate growth. At the same confab, Christine Lagarde, the new head of the International Monetary Fund, was more specific, urging U.S. policy makers to undertake “more aggressive principal reduction programs for homeowners, stronger intervention by the government housing finance agencies, or steps to help homeowners take advantage of the low interest rate environment.”
Yet if the benefits of helping homeowners take advantage of low interest rates are clear, one would think such a plan would have been put in place a while ago. Indeed, this isn’t the first time the proposal has been floated.
The problem, explain Mark McClellan and Ron Torrens, managing editors of U.S. Investment Strategy and U.S. Bond Strategy from BCA Research, publisher of the venerable Bank Credit Analyst, it that the gains for homeowners would result in heavy losses for owners of the mortgage-backed securities.
“Agency MBS holders would presumably receive $100 for securities that are valued well above that level at the moment. To the extent that Fannie and Freddie buy each other’s securities for their own portfolios, taxpayers would bear at least some of the cost. Moreover, would the Administration really stick China with sizable losses on its MBS portfolio? The domestic banking sector is the single largest holder of agency MBS and imposing a loss on this sector would risk reopening a barely-healed wound. It is unclear whether the [government sponsored enterprises] have the authority to force refinancing anyway, and the [Federal Housing Finance Agency] might be violating the terms of the conservatorship if it allowed the GSEs to do so,” they write.
“These factors make it quite difficult for the Administration to push through such a plan. Republicans will try to block any large Administration initiative that might boost the President’s re-election chances, but something could be done without Congressional approval. Moreover, there was a dangerous precedent set when Washington steamrolled the bondholders of General Motors in 2009.
“The bottom line is that we cannot rule out a refinancing plan coming to fruition, but we see the chances as considerably less than 50%. We remain overweight agency MBS, and recommend that investors continue to hold mortgage [real estate investment trusts] until we see signs that a refinancing plan is gaining momentum,” McClellan and Torrens conclude.
…
Come to think of it, I actually learned that on the first day of first-year undergraduate physics class; only heard it later on in economics discussions.
My wife gets free lunch nearly everyday. She makes $19 an hour taking people’s blood pressure as an MA for a cardiologist, and drug representatives bring them $20+ lunches nearly everyday. She’ll eat the soup portion or salad and bring the rest home. I get burned out on restaurant food if I eat it too much, so at times we just toss it out or give it to the pets.
Still not a free lunch, not even for her. It’s being paid for by Big Pharma <–Medicare <– taxpayer <– your wife.
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Comment by The_Overdog
2011-09-08 09:21:40
I agree, but my medical costs so far have been low, as have the ones actually paid for by her, so I think we’re coming out ahead so far.
I’m sure I’ll get good and sick as I get older for them to claw back though.
Comment by polly
2011-09-08 11:36:46
You’ve completely missed the point, Overdog. The “no free lunch” meme isn’t that one particular person can’t come out ahead. It is that someone, somewhere is paying for it. Your wife’s free lunch is paid for by a drug company because doing so encourages the doc to prescribe more drugs on patent from that company. That increases drug costs which makes private insurance and goverment provided health care more expensive and we all pay for that.
“I’m ahead of the game so far” isn’t an answer.
Comment by The_Overdog
2011-09-08 13:14:08
I think I got that point across with the comment with “The medical industry is seriously messed up” that I made, but that would require you to be able to read, which I guess is a high requirement.
But since you brought it up, the use of interest rates to steer the economy, rather than just maintain the dollar as a stable store of value, seems like a rather questionable strategy at this point, no? How is that string pushing working out for them?
It’s on the topic of government decisions that hurt a class of asset-holders.
“How is that string pushing working out for them?”
Exactly as Keynes predicted, not well. Poor Friedman must be rolling over in his grave. Bang! goes 50 years of conservative economic theory:
Remarks by Governor Ben S. Bernanke
At the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois
November 8, 2002
On Milton Friedman’s Ninetieth Birthday
“As a personal aside, I note that I first read A Monetary History of the United States early in my graduate school years at M.I.T. I was hooked, and I have been a student of monetary economics and economic history ever since.1 I think many others have had that experience, with the result that the direct and indirect influences of the Monetary History on contemporary monetary economics would be difficult to overstate…
Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again. ”
The banks are keeping their Fed-funded-at-ZIR powder dry at the moment for the fire sale of the 21st century. At what point will it make sense to purchase banking stock shares to avoid catching a falling knife yet also share in the Fed’s largess?
But the MBS holders were never promised that people wouldn’t be able to refi out of their current loans.
My message to the MBS holders…. Whhhaaaaaa….
Shut up cry babies.
Sure, the current MBS holders like their free lunch, with them collecting the higher interest and government absorbing the risk, but too bad. The free lunch should end.
People that bought GSE bonds whining about government meddeling is like moving next to an airport then whining about the noise of planes flying over your house.
“But the MBS holders were never promised that people wouldn’t be able to refi out of their current loans.”
It amazes me how the posters here can’t distinguish between a world where refinancing occurs on an occasional, random basis versus an alternative universe where everyone is prodded by a top-down cut-rate interest offer into refinancing at the same time. This isn’t rocket science, people!
No one promised the MBS holder that interest rates would not be lowered and everyone would refi out.
If not for the crashing housing market and underwter situation, people would already be refi-ing to lower rates. So, what we’re talking about is not letting the “underwater” situation from preventing the refi.
But why would the entity on the hook let the person refi? Becuase the entity on the hook for the loss is not the person whose getting the profit in the case of GSE MBS.
Again, you can’t buy a bond that would not exist without gevernment meddeling, then complain about government meddeling.
My anser is the same as when someone that moves next to an airport cimplains about the airport. STFU!
I was just trying to point out that there is a $15bn or so transfer effect involved with taking away future interest rate payments from GSE MBS owners and handing it over to underwater homeowners. Whether that is a good or bad thing is someone else’s call. I’m just trying to help publicize the actual public choice involved, in contrast to the propaganda that has been floated about how the cost of the program will be $0 or so.
We can distinguish it, Bear. We just understand that the disclosure on the MBSs didn’t promise that there wouldn’t be changes in the mortgage business over the time period that the owners held the bonds. If they didn’t promise and disclosed that the payout on the bonds could be influenced by changes in the mortgage market and interest rates (believe me, they do), there is no problem.
Lets assume that some time in the next 5 years the US adopts socialized medicine. Not single payer, but socialized where the docs are all employees of Uncle Sam. Do the people who are doctors in 5 years get to be reimbursed for the lost income they would have had if the government hadn’t become their employer? No, of course not. It is a risk you take when you get a US medical degree.
It amazes me how the posters here can’t distinguish between a world where refinancing occurs on an occasional, random basis versus an alternative universe where everyone is prodded by a top-down cut-rate interest offer into refinancing at the same time.
What PB describes is like a run on a bank, versus routine daily withdrawals and deposits.
Or the sudden load on a cell phone network, during an emergency (which breaks it), instead of normal daily load volume.
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Comment by polly
2011-09-08 12:23:58
And I was prevented from making a cell phone call for a few minutes when the earthquake happened and I wanted to call my family and let them know I was fine. So what? The cell phone contract does not guarantee conectivity at all times. If I assume it does, then too bad for me.
“What PB describes is like a run on a bank, versus routine daily withdrawals and deposits.”
I’d go one step further: It is more of a government-sponsored, financially-engineered run on the bank, conducted under the cover of propaganda to sell it as a ‘Free Lunch’ program (i.e. it doesn’t cost anyone a penny).
I prefer honesty about who gets to pay for political giveaways. At any rate, it’s not as though the owners of those MBS don’t understand they would pay for the financially engineered wave of refis.
Please note that there is nothing here that implies that the losers on the transaction would be able to sue to get their money back. That is because not all economic losses are torts or contract violations that are redressable under the law.
I just looked at rates this morning. With good credit you can get 4.375% with no to fractional points.
So the only people that would take advantage of this mass-refinance-cram-down would be people who are underwater. If you’re not underwater, odds are you’re either near that rate now or strongly considering refinancing.
Shockingly enough, the only people this would really help are underwater. And ta-da, they’d still be underwater if the rates were 0.00%.
Not sure what that has to do with letting people with upside down Freddie/Fannie mortgages refi to lower rates.
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Comment by oxide
2011-09-08 12:30:38
Oops, I thought you were talking abut mortgage rates in general. I didn’t know that Obama’s proposals were as specific as 4.375. I thought they were being vague with 6% –> 4%.
Comment by darrell_in_phoenix
2011-09-08 13:38:18
Obama’s plan is for people that are upside down, but Fannie and Freddie are already on the hook for the loss, to refi to the same balance but a lower rate.
There are two side effects.
1) No chance the loan could be returned to the bank that originated it.
2) The current MBS holders that are collecting high rates with no principal risk, get paid the outstanding balance but lose the future higher interest they thought they were going to collect virtually risk free.
Hair-of-the-dog demand-side mortgage market stimulus hasn’t gone out of fashion, just yet.
WSJ Blogs
Developments
Real estate news and analysis from The Wall Street Journal
September 8, 2011, 1:00 PM ET
Six Steps That Could Boost Refinancing
…
The White House could take a number of steps to revamp the program, though many of these steps would require the blessing of Fannie and Freddie’s regulator, the Federal Housing Finance Agency. Here are six that policy makers would be likely to consider:
* Remove the eligibility date. Currently, loans that were originated after June 2009 aren’t eligible for HARP, and loans that have already refinanced once through HARP can’t be refinanced again.
* Eliminate the 125% loan-to-value cap. Nearly one in 13 loans backed by Fannie Mae can’t participate in the HARP program because they’re too far underwater. These loans weren’t eligible initially for HARP because they can’t be sold into standard pools of mortgage-backed securities issued by Fannie and Freddie. Some analysts have suggested that the Federal Reserve could buy these loans as one way to facilitate the program.
* Waive risk-based fees that Fannie and Freddie charge. The firms charge lenders extra fees for riskier borrowers, which effectively raises the rate and reduces the incentive for underwater borrowers to refinance. “It wouldn’t be just a refinance boom for the pristine credits. It would open it up for middle America as well,” says Bob Walters, chief economist at Quicken Loans.
* Streamline the application process to tamp down closing costs. Eliminating appraisals, waiving title insurance requirements, and simplifying the refinance process could reduce fees that may have discouraged underwater borrowers from refinancing. (There’s much more on this in a paper by mortgage-market consultant Alan Boyce and Columbia Business School economists Glenn Hubbard and Christopher Mayer.)
* Address second mortgages and mortgage insurance. Using the HARP program for borrowers who are underwater has proven “extraordinarily difficult,” says Mr. Walters, because many borrowers have second mortgages or mortgage insurance from companies that must sign off on the new loan. Coming up with a way to gain automatic pre-approval from participating second-lien holders and mortgage insurers could accelerate underwater refinancing.
* Indemnify lenders against the potential for “put-backs.” This is a big one. Many banks have been reluctant to refinance borrowers under HARP, or are charging hefty fees, because of the concern that they’ll have to buy back the loan from Fannie and Freddie if it defaults.
Of course, any uptick in refinancing would come at the expense of bondholders, muting some of the economic boost. A working paper from the Congressional Budget Office provided some estimates around the benefits and costs of refinancing more borrowers.
Fixing one or two of these steps would help at the margins. Dealing with all of them would provide a bigger boost to refinancing. And all of them stop short of the “blanket refinance” that some analysts have proposed, where Fannie and Freddie would automatically refinance borrowers with an above-market rate, whether they ask for it or not.
“Mass refinance” programs aren’t as likely to happen because they threaten to create significant uncertainty for mortgage-bond investors. Officials may be reluctant to take steps that reward yesterday’s borrowers at the expense of tomorrow’s.
The unemployed can’t afford to be political atheists.
These pre-debates are basically cheap reality shows. The media needs to keep Perry alive because they want his superpac ad money.
I have some respect for about half of Ron Paul, but I simply can’t see myself voting for someone who would allow the country to return to 1900.
The current socialist policies we have been running under and have been for the last 30 years and more are what is going to ensure we
go back to the 1900s.
What socialist policies? please educate us and explain what you would eradicate.
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Comment by unc
2011-09-08 06:33:58
Government intervention into everything. Deficit spending
up the wazoo. A nanny state where everyone looks to the
government to solve all their problems. A media propaganda
machine that constantly distorts and lies about the truth.And
an education system that has been bastardized by the left.
Comment by NYGoon
2011-09-08 07:29:56
GIVE him some examples.
Comment by Doghouse Riley
2011-09-08 08:59:22
Socialism is where the state or the workers control profitable industries so their profits can be equitably shared by the population at large.
What we have under Bush/Obamanomics is the state assuming or guaranteeing the debts of failing industries (TARP, GM, Chrysler, now Solyndra) so that their losses can be shared by the population at large.
So whatever the hell this is, it ain’t socialism.
Comment by unc
2011-09-08 09:51:10
What do you call the tax system thats been in place for years,
Federal, State and Local; its all about redistibution. That is
socialism.
“socialist policies we have been running under and have been for the last 30 years ”
Started with Reagen, eh? Well, you got that part right. But I’m not so sure it’s ’socialist’, unless you mean they socialize the losses while they privatize the profits- which isn’t socialism.
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Comment by alpha-sloth
2011-09-08 07:41:28
a
Comment by unc
2011-09-08 09:11:20
Don’t forget alpha-sloth that the democrats have had control
of both houses of congress for a vast majority of the last
approx. 70 years and republicans just 8 months in the house of the last almost 3 yrs. of “Hope and Change”.
Comment by ecofeco
2011-09-08 14:00:29
unc, you’re wrong.
Repubs controlled all branches of government from the first day Bush Jr was elected and did so until just 3 years ago.
Repubs once again control the House and the Dems really only had a technical majority anyway, which means they did NOT really “control” anything.
Go to the bottom of the page to “External Links.” The table called “United States Congresses (and years begun)” has the EXACT makeup of each Congress ever convened.
“The unemployed can’t afford to be political atheists.”
We used to live in a fairly low-income area. Many folks who officially belonged to my wife’s church congregation never showed up much on Sunday, but always had their hand out when the church distributed free goods and services.
Churches/Temples enjoy tax exempt status. They should give beyond their own congregation.
Showing up on Sunday doesn’t make you a Christian or good. It’s the life you lead.
OTOH, I have a friend who is a Sunday School Teacher, who takes from the food bank every Sunday (Trader Joes donates it). Yet, they both work, drive newer cars, and own a nice middleclass home (needs work, granted). She’s 100lbs+ overweight. She should not be eating the type of foods donated. It’s free, she tells me.
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Comment by polly
2011-09-08 12:26:35
Why is a person who takes food from a program for the needy when they are not in need your friend?
oxide
We’re living off 1/6 of our former incomes! I have no faith in any of the BS artists anymore. Follow the money. It’s bought and sold in both parties. This economy is structurally broken. Nobody has the balls to really fix it. It would be painful for Corporate America and the masses.
wash.rinse.repeat.
It’s easy to look at the gridlock and say that both parties are bought off. However, I think it’s more complex. I believe that 90% of the R’s are bought off, and about 20% of the D’s are truly bought off. This roughly matches the Senate voting records. That’s enough to block any fixes in either direction. But they aren’t all bought off.
Maybe this should be a weekend topic. What can we do, individually? It’s obvious that “government” won’t do anything.
[We can argue about WHY they won't/can't do anything, but the result is the same. ]
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Comment by whyoung
2011-09-08 07:45:20
Who was it that said “an honest politician is one who stays bought”?
Comment by Doghouse Riley
2011-09-08 09:01:45
When buying and selling are controlled by legislation, the first things to be bought and sold are legislators.
~P.J. O’Rourke
Comment by Awaiting
2011-09-08 09:12:22
oxide
I liked your post. On things we don’t agree, we can agree not to. I agree that the stinch leans more to the right, so to speak. You’re opinionated but diplomatic. I respect that.
Comment by michael
2011-09-08 09:49:00
” I believe that 90% of the R’s are bought off, and about 20% of the D’s are truly bought off.”
i “believe” different.
Comment by butters
2011-09-08 09:49:46
I believe that 90% of the R’s are bought off, and about 20% of the D’s are truly bought off.
Actually that’s not correct. 80 to 90% of republicans would vote the way they have been voting because of their ideology. No reason to buy them off. It’s the democrats who are truly bought off who say one thing but do exactly opposite. And that includes Obama.
Time for another presidential mottocade to a CEO this weekend…..
Comment by michael
2011-09-08 10:01:01
i “believe” it’s about equal.
just because you agree/support/side with the one doing the buying…doesn’t make it more or less justified.
Comment by Happy2bHeard
2011-09-08 21:03:06
“i “believe” it’s about equal.”
I agree with michael. Corporations are buying access and they do it where they will get the most bang for their buck. They watch the polls and side with the leader. Where the races are fairly even, they play both sides. It’s a classic hedge strategy.
WASHINGTON, D.C. (September 7, 2011) — Mortgage applications decreased 4.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending September 2, 2011.
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5.3 percent compared with the previous week. The Refinance Index decreased 6.3 percent from the previous week. The seasonally adjusted Purchase Index increased 0.2 percent from one week earlier. The unadjusted Purchase Index decreased 2.1 percent compared with the previous week and was 13.5 percent lower than the same week one year ago.
“Heading into the Labor Day weekend, the 30-year rate was at its second lowest level in the history of our survey (the low point was reached last October), and the 15-year rate marked a new low in our survey,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Despite these rates however, refinance application volume fell for the third straight week, and is more than 35 percent below levels at this time last year. Purchase application volume remains relatively flat at extremely low levels, close to lows last seen in 1996.”
…
You can go to the other side easy. You just can’t take much with you.
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Comment by Awaiting
2011-09-08 11:15:51
Blue-
I’m in no rush. My mortality is hitting me hard this year. I can lie to myself all I want, but I’m getting old!
Comment by Blue Skye
2011-09-08 14:01:02
I am getting there too. The best bankruptcy is a well planned bankruptcy. That said, why can’t you make payments on the mortality patches on a 100 year plan? The continued availability of patches might hang in the balance.
I can’t confirm or deny something like that. Whether you can get a car loan or a credit card are decisions made by private companies. It isn’t a legal thing.
But as a warning, you might not like the interest rates you are offered.
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Comment by Awaiting
2011-09-08 10:50:51
Polly -
Thank you for the reply.
With $ for a house (paying cash in So Ca), a stellar 825 FICO, no debt, and sound sleeping, I would only do a Medical BK.
I’m old school. Job loss & medical should be the triggers for personal bk. Living large shouldn’t be (in my way of thinking).
Comment by oxide
2011-09-08 11:27:26
Awaiting, I rather wondered about this. If you have a substantial amount to pay cash, why buy in SoCal? (family reasons?) You sound like a prime candidate for Oil-City-Plan. You could buy something for under $100K in the sticks, find a McJob,* and have several hundred thousand cash cushion.
WASHINGTON (MarketWatch) — With an economy barely growing and fiscal policy constrained by gridlock, Federal Reserve Chairman Ben Bernanke will get an opportunity Thursday in Minnesota to lay out what the U.S. central bank can do to revive the economy.
Of course, Bernanke had that opportunity just two weeks ago at an even-higher-profile event, the Fed’s annual gathering in Jackson Hole, and basically ignored it. He revealed for the first time that the upcoming September meeting will be for two days rather than one, and said that the Fed “is prepared to employ its tools as appropriate.”
…
Once upon a time in America, not so long ago, whole months - even years - passed with little more than a passing murmur from the Chairman of the Federal Reserve. Heck, most people didn’t even know his name, or care to.
The degree to which the financial world has woven itself into the fabric of American life is simply astounding. Any lines that may have existed between finance and culture have all been wiped away.
Why the Stimulus Failed New research on what actually happened to a trillion dollars.
WSJ | SEPTEMBER 8, 2011
Even zero jobs growth in August doesn’t seem to have disrupted President Obama’s faith in the economic policies of his first three years, so one theme we’ll be listening for in tonight’s speech is how he explains the current moment. Why did his first jobs plan—the $825 billion stimulus—so quickly result in the need for another jobs plan?
For readers who want to know, an important account is offered in a pair of new Mercatus Center working papers by the George Mason economists Garett Jones and Daniel Rothschild, who did field research on what they call the supply side of the stimulus.
The Keynesian theory was that a burst of new government spending would take up some of the slack in aggregate consumer demand. This was justified in 2008, again in 2009, and is still defended now based not on real-world observation but on abstract macroeconomic models that depend on the assumptions of the authors. The Congressional Budget Office’s quarterly studies—often cited to claim the stimulus created tens of thousands of new jobs—are based on such a model. By informative contrast, Messrs. Jones and Rothschild interviewed actual people who received stimulus dollars and asked how they spent the money.
In the first paper, the authors survey 85 different businesses, nonprofits and local governments across the country and conclude that “As is often the case when economic models are transferred from the blackboard to actual public policy, there was a gap between theory and practice.”
One of the major patterns Messrs. Jones and Rothschild uncovered was that the top-down stimulus was poorly targeted. In one redolent example, a federal contractor said he was told to use smaller, nonstandard tiles that are harder and more expensive to install in order to increase the cost of the project. That way, the government could claim the money was moving out the door faster. The famous Milton Friedman line about government ordering people to dig with spoons to employ more people comes to mind.
Stiumulus might work if it is invested instead of spend on consumption and nonsense. Some of the stuff build under FDR is still in use today. TVA, various infrastructure projects, etc.
If the money is spend on consumption or bridges to nowhere then it will do little to nothing other than increasing the debt. In fact it will hurt the economy long term due to the interest payments and zero long term economic gain.
If we had for example invested the money into long term energy security (electric rails, wind, solar, public transportation, energy efficiency, power grid, etc.) then we could reduce our energy imports (= cut funding to terrorists, trade deficit), needed less military to secure foreign energy sources (= bunch of money saved) and could instead pay for long term jobs to upgrade and maintain what was put in place.
You can’t spend your way to prosperity with money you do not have
Keynesian Theory is crap and does not work
Look at Japan - 20 YEARS of spending on infrastructure. They are still mired in a recession, high unemployment and have the world’s HIGHEST debt/GDP ratio. They are about to hit a wall.
No thanks.
ALL need to live within their means. You, I, local government, state government and federal government.
So the wealthy should pay their taxes at closer to the average rates of modern history in order to help us live within our means?
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Comment by Doghouse Riley
2011-09-08 09:03:32
You can have the 1955 tax code (the whole thing, not just the top rates) if I can have 1955 government spending as a percent of GDP.
Deal??
Comment by alpha-sloth
2011-09-08 09:44:50
“Deal??”
Sure! As long as we institute a national single-payer health care coverage system to get there. That’s where all the money goes. Fix that, and tax the rich at the average rate of modern American history, and it’s all good. We can be a first-world country again.
Comment by Mike in Miami
2011-09-08 10:29:20
Very different demographics in 1955. Much fewer old people, no globalization, energy demands etc.. Can’t compare to today.
Comment by oxide
2011-09-08 10:34:08
It’s not just the 1955 tax code. It’s also pre-outsource (no place to outsource TO) and an economic structure which allowed mom to stay at home with the kids.
I remember in 2000-2001, there were quite a few news stories where parents ran the numbers and concluded that it would make no difference finanially if mom (or sometimes dad) quit and stayed home. It was catching on, until the housing bubble blew up. Suddenly you needed two incomes to afford a house again, and families were put back on the hamster wheel.
Going back to a one-income household structure would almost immediately solve the unemployment problem.
Comment by Doghouse Riley
2011-09-08 13:23:45
Yes, it’s a fair point that 1955 is not like today. Which is why it’s inane to assume that raising the top tax rate to 1955 levels will produce 1955 levels of prosperity.
I’m fine with the bringing back the pre-Reagan top tax rates as long as we bring back income tax rates across -all- income levels, and bring back the pre-Reagan deductions too.
Comment by ecofeco
2011-09-08 14:11:03
How about we just stop giving tax breaks to companies for offshoring our jobs?
Comment by polly
2011-09-08 14:24:40
“I’m fine with the bringing back the pre-Reagan top tax rates as long as we bring back income tax rates across -all- income levels, and bring back the pre-Reagan deductions too.”
Tax lawyer/accountant full employment act of 2012?
If you have a rainy day fund, then you are a practicing Keynesian. The theory is not crap, just government interpretation and implementation of it.
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Comment by Al
2011-09-08 11:01:36
To go a step further, Keynesian is economic theory is the only approach that government could rationaly take.
1. Constant surplusses make no sense.
2. Constant deficits will ultimately lead to disaster; we’re just waiting to see which kind of disaster.
3. Trying to budget exactly according to revenue won’t work since government can’t predict what the economy will do. Any success in cutting spending before or during economic downturns will magnify the recession.
4. Budgeting below anticipated revenues with the intent of building reserves makes sense. When a recession happens govt can maintain or strategically increase spending by using reserves. Strategic spending could be an increased rate of infrastructure work or replacing vehicles/equipment or the like.
Stiumulus might work if it is invested instead of spend on consumption and nonsense. Some of the stuff build under FDR is still in use today. TVA, various infrastructure projects, etc.
Agreed. Here in Tucson, there are WPA-built sidewalks that are every bit as good as the ones built since then.
Likewise, the road and bridges in the Sabino Canyon Recreation Area. The CCC boys built those, and they’re holding up just fine.
an important account is offered in a pair of new Mercatus Center working papers
Wait, “Mercatus center?” Oh boy, ANOTHER THINK TANK! You all know the drill by now… .
———-
“The Mercatus Center was founded and is funded by the Koch Family Foundations. According to financial records, the Koch family has contributed more than thirty million dollars to George Mason, much of which has gone to the Mercatus Center, a nonprofit organization. ” [sourcewatch]
———-
“After the providing of several millions dollars to the George Mason University from the Koch Family it moved to George Mason in the mid-1980s before assuming its current name in 1999.[2] The Mercatus Center is entirely funded through donations, including from companies like Koch Industries[3] and ExxonMobil[4], individual donors and foundations.” [wiki]
I was watching a NOVA about human ancestors the other day on PBS. One of the “this program is made possible by” people was David Koch. Anyone know if that is one of the famous brothers?
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Comment by oxide
2011-09-08 10:39:25
It is indeed. His name is also all over the Mammal Hall in the Natural History Museum on the Mall (complete with evolution movie).
I gotta wonder how much he gave them. Was it more or less than the $30 million he gave to George Mason U, mostly to the Mercatus Center?
Comment by polly
2011-09-08 12:41:41
This is from the acknowledgements page of the exhibit that was named for him. No numbers included. Smithsonian might have a place where they thank donors in various ranges. I’ll see if I can find anything another time:
Acknowledgements
The David H. Koch Hall of Human Origins and the Human Origins Initiative of the Smithsonian Institution’s National Museum of Natural History are made possible through the generous support of the following individuals and organizations:
David H. Koch
take up some of the slack in aggregate consumer demand.
Wait, I thought demand wasn’t the problem. I thought that the “high corporate tax rates” and “overregulation” were the problem. Why on earth would they need to increase demand? Isn’t trickle-down supposed to solve all this?
FRANKFURT (MarketWatch) — A round of coordinated rate cuts and other measures to ease monetary policy by global central banks is growing increasingly likely with the United States and euro-zone governments unlikely to provide a fiscal response to economic weakness, economists at Morgan Stanley said in a research note issued late Wednesday. “The negative feedback loop between weak growth and soggy asset markets makes a coordinated monetary policy easing move more likely — perhaps as early as the G7 meeting” of finance ministers and central bankers this weekend in Marseille, France, wrote economists Manoj Pradhan and Joachim Fels. “The Fed, the [European Central Bank, the Bank of Japan and the Bank of England] could all participate in a coordinated move with a mix of rate cuts and quantitative easing,” they wrote.
Turns out BOA independently did mortgage deals that would have made Mozilo blush. Who’d've thunk?
This bank would be so done, if only it weren’t on the systemically-risky too-big-to-fail list.
Sept. 7, 2011, 9:50 a.m. EDT Feds say Bank of America worse than Countrywide
Commentary: Federal lawsuit says even Mozilo was shocked
…
You’ve heard the allegations before: These banks sold billions worth of mortgage-backed securities while lying about the thousands of funny little mortgages behind them.
Since Bank of America bought Countrywide, it will indeed pay for things Countrywide did. But it will pay for things it did, too.
The government is suing Bank of America for Countrywide, and it is suing Bank of America, separately, for things it did without Countrywide.
Bank of America issued a statement in response to the lawsuits, essentially saying Fannie and Freddie knew the risks of the securities they bought, and that the losses are due to a downturn in the housing market. But the United States of America would rather blame the Bank of America.
“BOA was one of the most aggressive competitors in the mortgage-origination market,” the government’s lawsuit reads.
And that’s where it hints that Bank of America was even worse than Countrywide:
“Even the top executives of Countrywide Financial Corp., the notorious mortgage lender …complained to each other…that BOA’s appetite for risky products was greater than that of Countrywide,” the lawsuit reads.
“In a June 13, 2005, email, Countrywide CEO Angelo Mozilo wrote to President and COO David Sambol: “This is the third deal in the last 10 days that BOA has offered that is impossible to beat. In fact, the other two were substantially worse than this one. It appears to me that BOA is making an aggressive move into mortgages once again.’”
Imagine that. Bank of America doing mortgage deals that even Mozilo found shocking.
…
“Bank of America issued a statement in response to the lawsuits, essentially saying Fannie and Freddie knew the risks of the securities they bought, and that the losses are due to a downturn in the housing market.”
A downturn caused by the lending practices of companies like BofA and Countrywide.
I’ve long wondered if BofA was forced to buy Countrywide in return for TARP funds. No longer. It looks more like they wanted to buy Countrywide. Clearly they weren’t concerned about risking lending practices.
The magician keeps waving the scarf in his right had and saying abracadabra, but I’m watching his left hand as it slips into his bocket depositing the egg and palming the dove.
Trade defuicits do not persist long-term. They result in excess debt, which can not be paid back unless the trade deficit reverses. Excess debt that can’t be paid back collapses into depression.
Let’s see… in 1980 we were at post Civil War lows total debt/GDP. 2008 we were at all time high total debt/gdp.
Hmmm… economic principles say we must be running up massive debt, and the data confirms it.
Economic principle says we must reverse the trade imbalances or plung into depression. We’re not working to reverse the trade imbalances, and sure enough,we remain on the verge of collapse into depression.
Amazing when economic principles align perfectly with REALITY!
But no one wants to deal with reality. They just want to restart the debt engine. Sorry, but it is kaput.
Fixation? you bet! Fixation on the real root cause of our troubles rather than allowing myself to be distracted by the tricks and gimicks of the lying politicians and burning, raping and pillaging Wall Street banksters.
The US holds 8133 tons or 261.5 ounces of gold. At $1900/ounce that’s $497 billion or about 11 month worth of trade deficit.
The old crook Nixon must have figured that out and close the gold window. Ever since foreigners are accepting our paper for their goods. This has been going on for over 40 years now. I doubt it’ll go on for another 40 years but then again, I would have never thought it would last that long.
WASHINGTON (MarketWatch) — Applications for unemployment compensation rose slightly last week, indicating little change in a weak U.S. jobs market in which net hiring remains near a standstill.
Jobless claims rose to 414,000 from 412,000, the Labor Department said Thursday. Economists surveyed by MarketWatch forecast claims to rise to a seasonally adjusted 411,000 in the week ended Sept. 3.
Initial claims from two weeks ago were revised up from an original reading of 409,000.
…
I have a question for the economics brain trust here on the HBB: There hundreds of billions (possibly trillions) of dollars in low-yielding investments held by seniors and retirees. If they are unable to get any appreciable yield on this money in the classic spots such as CD’s, MMA’s, etc then where is the money going? If it is being spent is it even registering in the economy or are these folks jumping into stocks/bonds and losing their shirts?
I believe the low rates are having a negative effect on the economy. Two large groups are hurting; the seniors (who depend on interest income) and the paycheck-to-paycheck crowd (who are spending too much for food and energy).
That’s the official story, but the one that makes sense is that large corporations get to borrow at very low rates, at the expense of people who used to depend on interest earnings on their money to pay living expenses.
Comment by MightyMike
2011-09-08 15:01:07
Theoretically the low rates were meant to juice the economy like so much Mad Dog 20/20 but that hasn’t worked in a long time.
There are a couple of reasons of pretty obvious reasons for that. Interest rates were already pretty low before the recession started, so the Fed couldn’t push them down much.
The other effect achieved by lowering interest rates in past recession has been to increase housing starts. Of course, that doesn’t work now because there are so many empty houses.
I honestly haven’t seen that seniors are hurting, at least not vis a vis other age groups. They still control the most money, have less responsiblities (kids are grown up, etc) and more financial control. Their medical costs are managed by the available federal programs. Also plenty still have pensions and the variable income investments are just icing, not the cake.
Compare that with reports that show 25%+ unemployment for 17-25 year olds. Even WalMart greeters around here are young, not old.
Maybe in a few more years, they will need to adjust their holdings, but for now, they are fine.
Those prattling on about politics, if they have been alive long enough and have good memories, should take a look at that total credit market debt as a share of GDP chart, staring in 1952.
Ever since Carter, when total debt has been going up (lots of free money around), politicians and in particular the President have been popular, and when total debt has been flat or falling (George HW Bush, early Clinton), the President has been unpopular. It is like people are bacteria responding to stimuli.
The debt bomb reached it’s peak the very quarter President Obama took office. We have been painfully delveraging ever since, despite the rise in federal debt.
I blame the politicians who sold out our nation’s future, not President Obama. I only blame President Obama for this — he doesn’t understand that this is the collapse of a 30-year debt driven economic structure, not just a recession.
President Obama did understand it in his last job. It’s difficult to get people to understand what they are paid to not understand.
As for blame, I think what was going on with the Federal debt just mirrored what was goin on with personal debt. A manic country gets a manic government.
OK, I’ve heard this one several times. Is there some GOP email forward going around that “Obama never had a real job?”
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Comment by 2banana
2011-09-08 08:09:31
OK, I’ve heard this one several times. Is there some GOP email forward going around that “Obama never had a real job?”
Well - stop tap dancing and TELL US WHAT IS WAS.
Community organizor?
Assistant eidtor of the Law Review?
State senator?
Comment by oxide
2011-09-08 08:36:22
Community organizing is a job, whether you think it is or not.
Law lecturer at U Chicago is a job, lesson plans and grading.
Civil rights attorney… wonder what kind of caseload he had.
Editing is a job, but wasn’t that while he was a student?
Studying for the bar is a job in itself.
If all else fails, Obama is an author and speechwriter — also a job.
Now, if you’re asking the working-class question “does he have a REAL job” like flipping burgers, or stocking boxes, or robosigning foreclosures, or perusing the tax code for loopholes, or killing Iraqis, well, then I guess you win.
Comment by WT Economist
2011-09-08 14:53:44
The reason Obama didn’t have a job is because he is an entrepreneur. He wrote books and ran for public office rather than working for a corporation or in a public bureaucracy.
Is that bad?
Comment by Arizona Slim
2011-09-08 15:37:37
The reason Obama didn’t have a job is because he is an entrepreneur.
Exactly. What he did was write two books and do very well on the sales of those books and spinoff products like the audio versions.
Yes, having a well-known name and a top literary agency certainly helped him, but there’s the other factor. That is the ability to make the money and keep making it.
The entertainment and creative arts worlds are full of people who made it big at one time, and well, then it was all gone. Think the “one-hit wonders” vs. perennial sellers like the Beatles. Of course, an argument could be made that, right before the band broke up, Apple Records was a badly mismanaged free-for-all, but steps were taken to fix that. Read Chris O’Dell’s book, Miss O’Dell, if you want the details.
A lot of other entertainers/creators find themselves in trouble after they signed contracts in which others got most of the money and they didn’t get much, if anything.
Jason Wilber’s song, “Pay Bo Diddley” speaks to this problem. It’s about how Bo was still owed money by Chess Records lo these many years later.
Since Obama is a lawyer, it’s a pretty fair bet that he knows how to work a publishing contract in his favor.
So, it’s not enough to be an entertainer/creator, you also have to be savvy enough to manage your career. For more on this topic, read David Cutler’s Savvy Musician.
Not just administrations. Businesses. State and local governments. And hundreds of millions of Americans. It was a social tsunami.
Like many who post here, I lived modestly — but no more modestly than in my childhood.
Avoided debt, except for student loans and a home mortgage I paid off as soon as possible.
And saved.
Virtually no one else did the same. People have looked at my wife and I over the years as nuts. No cable? One old car? One room AC that is seldom used? Not trading up to a bigger house? Etc.
I was angry about politics too. Why were the leaders of my state (New York) and country selling out our collective future. I even ran against the local state legislator, losing nearly a year of work income as a result. Now I see those sleazbags really were the men of the people after all!
WT Economist
I read your reply. Well said. We’ve done many of the same things, and I am livid that our house money is earning a .25 of a percent. We sold to find a sensible “tow tag” home, and feel punished for planning ahead. We’ve been stuck in a dump waiting out these insane prices in So Ca.
While these boobs try to save this titanic (ain’t gonna happen), people like us are screwed.
“I only blame President Obama for this — he doesn’t understand that this is the collapse of a 30-year debt driven economic structure, not just a recession.”
That’s an interesting comment to come from an economist, which Obama is not. He did what any reasonable person of means who lacked training in economics would do in similar circumstances: Asked around and hired the top experts in the field to advise him.
And he followed that advice — the typical response to a typical recession.
There are a few who counseled otherwise, however. Krugman argued for a 1930s style expansion of government, forgetting that back then the U.S. was a net creditor nation and now it is a debtor. Rogoff and Reinhardt said the measures taken couldn’t offset the deveraging.
The question is what is the right response? I’m beginning to think it is to allow the inevitable Great Depression to occur, and only then when contractural privileges have been wiped out by mass bankruptcy, intervene to restart the economy. In other words Hoover (Andrew Mellon — liquidate, liquidate, liquidate) followed by Roosevelt, on purpose.
I blame Obama because he thinks the answer to the problem of too much debt is more debt. The combined private and public debt as a percentage of GDP is not dropping so we are not healing. Stimulus just leads to more money going oversees. Oil was down to $35 a barrel in December 2008. Had we not stimulated the economy it would have stayed down longer and the nation would have had a stimulus based on lower prices which does not add to our debt or trade inbalance. Right now Brent is selling for over $116 a barrel only about $30 less than when unemployment in this country was about half of what it is now. We need to stop sending so much money overseas and that means no stimulus and energy policies that really cut our dependence on OPEC, sorry the Volt car and solar panels made in China are the not the answer. NGVs and coal conversion to oil are the answer, with wind in some areas. Also, since China is polluting the entire world with its coal burning since it does not use pollution controls even when they are built into the plants, I have no problem with a 30% environmental tariff on their exports.
Read the post above, I named two. But I will expand on how we cut dependency on OPEC: by using our abundant NG reserves, coal reserves and yes oil reserves off our coasts and in Alaska and new generation nuclear. There should be under strict environmental regulations and the royalties should be higher in environmental sensitive areas. Yes they are finite and we should continue research on the alternatives but there will never be a better time to start producing our energy reserves. By the time they will come on line we will be in the worse period of peak oil.
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Comment by oxide
2011-09-08 12:40:34
Ah. sorry, it was buried in your paragraph, NGV and coal. Only if you want to destroy the environment. Then again, maybe it would be better to get the soldiers out of the Middle East and use those resources to make sure that the coal is clean and that NGV doesn’t destroy the environment, and I like my Appalacian Mountains thank you very much. However, I’m still in favor of electric, at least as the source of power in the end-consumer machine (car). Then you can use the coal and NGV in the power plant where it’s easier to contain the pollution, and you can switchover to wind if you want.
Back from 9 days in Kings Canyon in a cabin with old friends. No tv, cell phone, etc. Just walks out in nature, native indian rock blessing, and watching the women work on quilting. Came back refreshed.
The cub was too playful and I was afraid would want to come and investigate. Mama bear was too big and could even out run me in my youth when I ran track. And I vividly remember a fellow HBBer who had a nasty encounter with one. Any one of the previous statements was enough to trigger a hasty retreat.
One by one, Federal Reserve regional presidents have begun to admit that another recession has started, or at least is on the horizon. Some have made suggestions about what can be done, but none of these ideas seems compelling.
Charles Evans, the chief of the Chicago Fed, said in a speech recently that, “In the summer of 2009, the U.S. economy began to emerge from its deepest recession since the 1930s. But today, two years later, conditions still aren’t much different from an economy actually in recession.”
That is an odd way to frame the issue. Either the economy is in a recession or it is not.
Evans is among the members of the Fed who believe the agency should take “strong action.” This could mean the purchase of more Treasury debt in the open market. It is hard to see what the central bank can do beyond that. Fed chairman Ben Bernanke insists that it falls to Washington, and new legislation, to fix the economic growth problem. Many politicians believe the Fed must act first, and perhaps alone.
…
Only a bold public works programme can tackle unemployment, but it won’t happen if placating Republicans is the goal
Michael Paarlberg
guardian.co.uk, Thursday 8 September 2011 15.00 BST
President Obama is good at making speeches, though he doesn’t always appear to enjoy it. It sometimes takes a crisis – whether to the country or to his political career – to push him to address what everyone else is already talking about.
Currently, there is no crisis causing more pain for more Americans than joblessness. And yet, you wouldn’t know it from the discourse in Washington. Over the past few months, lawmakers have been far more concerned with wrangling over crises that range from the decidedly non-urgent (the S&P downgrade), to the blatantly manufactured (the debt ceiling), than with the fact that 14 million Americans are out of work.
Some sense of urgency is understandably lost when the job market has been so bad for so long. Still, it’s disheartening that the event that finally stirred Obama to talk about jobs was not an outpouring of concern by elected officials, but a federal holiday honouring workers.
So, this week, Obama unveils his much-anticipated plan to ease joblessness. It comes on the heels of a disastrous report from the bureau of labour statistics, showing net job creation in August to be zero. And this figure is actually generous. As financial analyst John Mauldin points out:
The US has roughly the same number of jobs today as it had in 2000, but the population is well over 30,000,000 larger. To get to a civilian employment-to-population ratio equal to that in 2000, we would have to gain some 18 million jobs.
With circumstances so dire, and interest rates set as low as they can go, the only solution left is massive spending to boost demand. Everyone from labour leaders to the chamber of commerce is calling for big, bold action: hundreds of billions for infrastructure investment, job training programs and a New Deal-like civilian jobs corps. As for what we’ll get instead, all signs are pointing to feeble half-measures.
…
IMO, we’ve done the big spending and now are beginning to deal with the consequences. Hair of the dog isn’t a healthy remedy, but it’s all the junkie understands.
You wouldn’t by any chance be referring to the fact that the stimulus barely offset the reduced spending by state and local governments that had start to pull back because their income from taxes went down as the recession set in, are you, Oxide? That if you add up all government spending there wasn’t any meaningful increase in spending at all?
Darn those facts.
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Comment by Blue Skye
2011-09-08 11:00:51
No meaningful increase in government spending? Of greater importance was the meaningful increase in the gap between revenues and spending. Darn facts indeed!
Comment by NYGoon
2011-09-08 11:58:49
And of utmost importance is the unwillingness to raise revenue(or save revenue from high growth years) in order to balance the budget.
facts….. tsk tsk.
Comment by Blue Skye
2011-09-08 12:23:48
It was left to the individual to do this “saving”. Now the savings are being called in.
Comment by NYGoon
2011-09-08 14:06:28
No silly…. Govt.
Comment by oxide
2011-09-08 14:31:40
Not that complex! I was referring back to about 1980, when the someone ran up the credit a little quicker than usual.
Obama wants a plan that he knows the Republicans will vote against,
so he can blame the lack of “jobs” on them as if he had nothing to do with the situation.
We all know the Republicans are against any tax increase, and as they made clear during the possible expiration of the Bush tax cuts, cuts expiring ARE tax increases.
“Tax breaks for businesses
Obama is likely to propose extending the payroll tax cut to employers as a means of boosting hiring.”
Another idea Republicans have been requesting.
Comment by unc
2011-09-08 12:29:10
Well woopde-friggin do what is that really going to accomplish
when he will also propose some other tax increase that the
net effect will be more job losses and more pain especially on
the people that create the jobs.
Comment by Arizona Slim
2011-09-08 12:39:04
For this country’s growing number of non-employer businesses, a payroll tax cut won’t mean fiddly. What we most need are:
1. More customers
2. Health insurance that doesn’t feel like an intrusive procedure. Especially in the paying-for-it.
3. See #1
Republican House and Senate leaders have all but given up hope of working out a jobs deal with President Obama in light of his and Teamsters’ President James Hoffa’s Labor Day attack on the GOP.
“It’s the official beginning of campaign season. You can always count on it being kicked off by an intemperate screed from a union leader pledging their undying partisan support,” said a top Republican official after Hoffa said of the conservatives: “President Obama, this is your army. We are ready to march. Let’s take these son of bitches out and give America back to an America where we belong.”
…
No, its you flaming liberals that have completely gone off your
rocker since the Nov election. All you have is venom
spouting from your mouths. Hey get over it, your party lost
big time.
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Comment by NYGoon
2011-09-08 14:05:04
NOBODY.
Comment by In Colorado
2011-09-08 14:08:09
Funny how its the “conservatives” here who are calling people “goons” and “thugs”.
Comment by ecofeco
2011-09-08 18:18:29
…then rail about ad hominem attacks.
Not just victims, but effing hypocrites as well.
Comment by Realtors Are Liars®
2011-09-08 19:45:45
And our troll posing as an MD keeps running from his own Obama Derangement Syndrome. MD’s are suppose to heal themselves I thought.
Could anyone who understands the benefits of transferring billions of dollars from MBS investors to current homeowners, kindly enlighten the clueless (like me)?
A potential initiative to refinance millions of residential mortgages would create billions of dollars in losses for federal and private investors, according to a new paper released by the nonpartisan Congressional Budget Office (CBO).
The CBO analyzed a program that would enable 2.9 million mortgages to undergo refinancing and determined that such a program would result “in 111,000 fewer defaults.” The government-sponsored enterprises (GSEs) and the Federal Housing Administration would receive estimated savings of $3.9 billion on their credit guarantee exposure, the CBO adds.
However, the CBO warned that this potential refinancing would not produce savings for either federal investors or private investors in mortgage-backed securities (MBS). Federal investors - including the GSEs, Federal Reserve and Department of the Treasury - would “experience an estimated fair-value loss of $4.5 billion…[while] non-federal investors would experience an estimated fair-value loss of $13 billion to $15 billion.” The CBO identifies non-federal investors as holding approximately 65% of the outstanding MBS included in its analysis.
The CBO notes that this refinancing initiative would not impact the wider economy or the current housing market environment.
“Because the estimated gains and losses are small relative to the size of the housing market, the mortgage market and the overall economy, the effects on those markets and the economy would be small as well,” the CBO says. “Because this program is directed toward current homeowners, it would do little to alleviate the tighter underwriting standards and increased credit pricing for purchase loans. In addition, it would not create much demand for homes, because all of its participants would already have at least one property.”
Securities raters provide language in their ratings saying that they are not to be relied upon. That language is disclosed to potential purchasers in the issueing documents. I believe this disclosure makes them harmless from law suits under the securities laws and fraud statutes. Might be able to get them if you could prove they did their analysis, came up with a bad rating, and then changed it based on zero change in facts except a pay off from the issuer. Seriously, I think you would have to find that much proof to be able to go after the rating agencies. They just aren’t vulnerable to law suits except in the most dire circumstances.
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Comment by CrackerJim
2011-09-08 11:18:49
“Securities raters provide language in their ratings saying that they are not to be relied upon.”
Then why the heck are their unreliable ratings required or accepted? In my business, if we used the term “the work you pay us to do can not be relied on”, we would have been gone gone gone years ago.
Comment by Neuromance
2011-09-08 11:32:07
Then why the heck are their unreliable ratings required or accepted? In my business, if we used the term “the work you pay us to do can not be relied on”, we would have been gone gone gone years ago.
Because they’re part of a scam. Marble floors, mahogany desks, blue suits all add to the image of legitimacy.
But they’ve been able to loot amounts of money from the public that would make mobsters sob with envy.
Comment by polly
2011-09-08 13:19:13
Let me clarify/correct my statement.
The raters provide their opinion letters to the issuer of the securities. In the letter it states basically that their analysis is just what they think of the securities in question and it doesn’t mean that the securities can’t behave very differently than other ones with the same rating. It also states that the opinionis ONLY for the issuer and no one else can rely on it for anything ’cause they aren’t talking to *them.* It is this little bit of language that means that no one else can sue the rating agency. My guess is that the issuer might (emphasis on might) have an action if they could prove the rating agency decided the rating of the security by the “pile of docs at the top of the stairs being hit by a tennis racket and give top ratings to anyone who gets more than three steps down from where they started” and didn’t disclose that this was their method.
They get the rating because despite the language saying you can’t rely on it, purchasers do rely on the ratings believing the rating agencies are experts at assessing the risk. Mostly they are used by the sales guys at the investment banks to get people to buy the stuff. And a number of states have laws requiring certain types of entities (like insurance companies and pension funds) to keep a portion of their assets in “safe investments” that are above a certain rating.
“Could anyone who understands the benefits of transferring billions of dollars from MBS investors to current homeowners, kindly enlighten the clueless (like me)?”
This is GSE MBS. The MBS holders get the interest while the government eats the loss if there is a foreclosure. Of course they don’t want a refi that will reduce the interest while also decreasing the risk of foreclosure.
But, since they aren’t on the hook for the loss, it isn’t thier choice if there is a refi or not.
IF the GSE MBS holders were on the hook for the loss, they would have the say. They aren’t, so they don’t.
We are not talking about principal reductions where the MBS holders get less than face for the loan. We’re talking about a refi where the MBS holder just doesn’t get the interest. The loans in the MBS ALWAYS had the risk of the loans being refied out.
Buying a bond that would not exist without government meddeling, then complaining about government meddeling is the equivilant of buying a house next to an airport then complaining about the noise.
Medical device tax could kill 11 percent of U.S. med-tech jobs
MassDevice | September 7, 2011 | Emily Greenhalgh
An excise tax on medical devices, set to go into effect in 2013, could mean a nearly 11 percent cut for the U.S. medical technology sector and add $2.67 billion to the industry’s annual tax bill, according to a study funded by the Advanced Medical Technology Assn.
Medical device industry lobby AdvaMed says that the new 2.3 percent excise tax, slated to go into effect in 2013, will be “the last straw on the camel’s back” for medical device companies trying to thrive in the struggling American economy.
The tax puts more than 43,000 U.S. jobs at risk by all but forcing medical device companies to move production offshore to avoid higher taxes, according to the study.
“The medical device industry is a leader in innovation and in well-paying jobs,” lead author and Manhattan Institute senior fellow Diana Furchtgott-Roth said on a conference call. She argued that the government should make the US a more “job-friendly environment” instead of imposing taxes that could push companies outside its borders.
Funny how when we try to cut government spending by 2.3% (OR LESS) we get dems/liberals crying that we are going to throw grandma into the streets and strave children…
But for government to TAKE an extra 2.3% from you - just shut the f*ck up and keep working…
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Comment by darrell_in_phoenix
2011-09-08 13:32:54
But is the 2.3% is used to fund more medical procedures for more people, increasing demand and revenue… yeah, stfu!
Especially when upto half your current demand already comes from government spending.
You hit the nail on the head. Once the Medicare/caid funds begin to dry up the medical devices industry will really see change.
For instance … in the US most ambulances have high end defibirilators on board, typically costing $10K or more. In other countries the ambulances have $2K AEDs instead.
Once the Medicare/caid funds begin to dry up the medical devices industry will really see change.
Right now, we have way too many “Scooter Store” schemes in the medical device arena. And I, for one, would like to see innovation in the hearing aid space similar to what the contact lens industry experienced a few decades back.
Remember when contacts were those little glass things that fell out at inopportune moments? Then came plastic contacts, contacts you could leave in place for extended periods of time, and so it goes.
Likewise, glasses. Recall that they used to only be available in a few styles and the lenses were heavy and glass. Well, that was then, this is now. You can get glasses in just about any flavor you want.
And how about pregnancy tests? Wasn’t too many years ago when you had to make a doctor’s appointment to find out if you were in a family way. These days, it’s off to the drugstore to buy the kit, then you take it home and do the piddle test yourself.
As for AEDs, has anyone else taken that training? I have. And the things are so easy to use that all you have to do is listen very carefully to the machine’s instructions and follow them.
No arrests too. Yet the tea party are terrorists and sons of b*tches.
—————–
Longshoremen storm Wash. state port, damage RR
AP – Wednesday, Sept. 7, 2011
LONGVIEW, Wash. (AP) — Hundreds of Longshoremen stormed the Port of Longview early Thursday, overpowered and held security guards, damaged railroad cars, and dumped grain that is the center of a labor dispute, said Longview Police Chief Jim Duscha.
Six guards were held hostage for a couple of hours after 500 or more Longshoremen broke down gates about 4:30 a.m. and smashed windows in the guard shack, he said.
No one was hurt, and nobody has been arrested. Most of the protesters returned to their union hall after cutting brake lines and spilling grain from car at the EGT terminal, Duscha said.
The International Longshore and Warehouse Union believes it has the right to work at the facility, but the company has hired a contractor that’s staffing a workforce of other union laborers.
Thursday’s violence was first reported by Kelso radio station KLOG.
Police from several agencies in southwest Washington, the Washington State Patrol and Burlington Northern Santa Fe responded to the violence to secure the scene that followed a demonstration Wednesday.
“We’re not surprised,” Duscha said. “A lot of the protesters were telling us this in only the start.”
One sergeant was threatened with baseball bats and retreated, Duscha said. “One officer with hundreds of Longshoremen? He used the better part of discretion.”
The train was the first grain shipment to arrive at Longview. It arrived Wednesday night after police arrested 19 demonstrators who tried to block the tracks. They were led by ILWU International President Robert McEllrath, who said they would return.
The blockade appeared to defy a federal restraining order issued last week against the union after it was accused of assaults and death threats.
Longshoreman are the last union workers earning union type wages over $100,000.00 per year. One of the reasons NAFTA sought to have goods travel to Mexico ports and then be trucked in to the U.S. Don’t condone the violence but I do understand. If their union gets busted they will go from a low six figure salary to maybe 30 to 35 thousand a year.
I am posting it because it was used as an example of winning the global game but it shows that no one’s wages are guaranteed while the race to the bottom goes on.
Perhaps they are not aware of the extent to which exports of agriculture goods bolster GDP and how a rising GDP would go a long way to improving the re-election chances of their perceived benefactor?
As usual, there is always more to the story……see the 9/08/2011 article from “The Stand: Your internet Newsstand in Washington State”
“EGT escalates dispute at Port of Longview”
The union has a contract for operations at the Port of Longview. EGT a Japanese/South Korean/Bunge North America consortium, (who, oh by the way, got a 100% tax exemption from the State of Washington for constructing the facility) built the facility with out of state, non-union labor, and now wants to staff it with scabs, valid contract notwithstanding.
The union has a contract for operations at the Port of Longview. EGT a Japanese/South Korean/Bunge North America consortium, (who, oh by the way, got a 100% tax exemption from the State of Washington for constructing the facility) built the facility with out of state, non-union labor, and now wants to staff it with scabs, valid contract notwithstanding.
Well - I guess that justifies kidnapping, destroying private property and threatening police.
Only to democrats/liberals does union violence and union threats of violence don’t really matter.
However, just try to pray in front of an abortion clinic…
Abortion opponents whacked by abortion supporters? Body count of zero, last time I checked.
Not disputing your statements, but more pointing out I think you miss the point. It’s just not just about abortion. It’s about violence being tolerated, regardless of the issue.
Comment by Blue Skye
2011-09-08 12:18:22
“Body count of zero, last time I checked”
Pretty sure it is in the 10s of millions.
Comment by Arizona Slim
2011-09-08 12:40:32
Abortion opponents whacked by abortion supporters? Body count of zero, last time I checked.
As one of my non-believing acquaintances likes to say, “Have you ever noticed that there are no atheist suicide bombers?”
Comment by X-GSfixr
2011-09-08 12:52:59
“Pretty sure it is in the tens of millions.”
By your definition. That I don’t agree with.
Along with most other Americans.
Comment by Blue Skye
2011-09-08 13:53:56
That’s OK fixer, and I don’t hold it against you. Some things one must grapple with outside the sway of what the majority thinks and find their own answer. Something that most Americans do not do for themselves and cannot respect in others, IMO.
Comment by MightyMike
2011-09-08 15:50:55
It’s about violence being tolerated, regardless of the issue.
Who it exactly, that you referring to? Who is tolerating violence?
Also, the original article pasted by 2banana specifically says, “No one was hurt”.
Who it exactly, that you referring to? Who is tolerating violence?
The unions and the folks who support them in this instance?
Also, the original article pasted by 2banana specifically says, “No one was hurt”.
I’d argue that violence doesn’t have to be directed at individuals, and when it is, doesn’t always end in casualties. Is flipping over cars and starting fires not “violence”? If I tackle you and pin you to the ground, even if I don’t break a bone or cause you to bleed, is that not a violent act?
Comment by evildocs
2011-09-08 18:26:00
Union violence is sanctioned mob violence by a “party”. Case cited of abortion violence is individual crime. Not same thing.
Hoffa et al. Union thugs. Nancy, Dingy Harry and Oblamer call out “right wing rhetoric”. Should look first to their own organized criminals.
The Tea Parties abhor violence/bad language directed at them, but don’t have a problem with it when it’s directed at their opponents.
(all the Tea-Partiers I know (and I know a bunch of them) fall into the “Bomb everyone back into the Stone Age”, along with the “Stop giving money to freeloaders, and I’ll shoot them if they try to steal from me” camps.)
do you not see the distinction here? It’s one thing to protect your belongings/life/liberty. Very different from advocating violence against someone who simply holds office and you disagree with them.
I have been thinking about what the President should do tonight and agree with Slim and Polly’s previous emails.
Credit for new jobs should not be based on jobs created but on total manhours consumed monthly and a refund cheque of $2 given monthly to that company for the increase in manhours. Companies supported should only be private corporations - small to mid size only (up to 500 employees).
80% of new employment is created by small businesses with 20 or more employees and established about five years. They also are responsible for the highest average tax yield of any type of company (sales tax, employee withholding, customs duties, corporate tax - 45% of sales). Most new products start within these types of companies.
Infrastructure is important but if you have a good tax base it should look after itself. Truckers have to pay user fees - use that money. Please, no more paving roads every two years !
An office chair manufactured in Canada that sold for $100 would need to be replaced in 20 years. One made in Chindia needs to be replaced every two years but costs $40 plus taxes (including customs) which is generally charged on a credit card at 29%. Within two years the total cost is again $100 for the Chindia chair.
On the NA mfgd chair the gov reaps $45 in taxes. On the Chindia chair they get $10 up front and $12.50 over two years (if the credit card company is profitable).
The President should also erect a tariff wall. But he won’t because BB thinks the depression was extended because of doing just that before. - But the depression was ending before the war started.
I look forward to Continentalism - North America -
In my ideal world you don’t give people additional tax credits for creating jobs whether they are based on head count or hours worked. First of all, houres worked is even easier to manipulate than head count so companies can reduce hours worked in the months preceding implementation so they can get the tax break. Sencond, and more important financially, when you create such a break you are paying out the vast majority of your money to firms that would have hired the additional staff/increased staff hours anyway. The amount of credit offered is never enough to get people who don’t see a need for more of their goods and services to hire. And prices for many goods and services are sticky on the way down. So all you do is add to the bottom line of a company that would have hired those people anyway.
The government can’t afford to lose that income to a successful company that is expanding without help.
I’ve seen it in the real world. Tax credits for hiring are a mess. Next to impossible to implement. Next to impossible to enforce. And they have almost no impact on hiring.
I respect your opinion but respectfully, in part, disagree. I have seen job enhancement programs work in Canada ie Canada Ontario Employment Development, the NRC’s IRAP, Sec 80 of the UI Act, college and university subsidized students for up to one year, even SR&ED, etc. Without the SRED program in Canada many manufacturers would be out of business but currently most make a profit.
I agree with you that labour programs are rift with abuse. But I personally know of probably a hundred or more people today who have successfully negotiated thru these programs.
The point is, something has to be done. Geithner says to create growth. Okay, HOW? I say get people back to work doing Yankee Ingenuity type things to do with manufacturing which will create demand from their wages and their new products or processes.
How much of a subsidy are they providing? I can just about guarantee that the US can never pass anything that large. I think all the president is asking for is 2% and even that is unlikely to pass.
And believe me, US and Canadian business culture is so different as to not be believed. My experience with these programs comes from a NY employment tax credit case that I worked on for a large Canadian bank. The client’s executives could not understand why there was a problem. It was a charming, but naive way to look at a US legal issue.
WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner on Thursday called on global finance chiefs to boost growth but said a repeat of the massive coordinated fiscal stimulus efforts of 2009 was no longer possible.
In an opinion piece written for the Financial Times, Geithner said the United States must strengthen employment, Europe must act more forcefully to quell its debt crisis and China and other emerging markets should strengthen domestic demand and allow their currencies to rise more rapidly.
“The imperative remains to strengthen economic growth. Fiscal policy everywhere has to be guided by the imperatives of growth,” Geithner wrote a day before finance ministers from the Group of Seven wealthy economies are due to meet in Marseilles, France.
Geithner acknowledged that some governments with high deficits and high borrowing costs have no choice but to consolidate their fiscal positions, while others have room to take more action to support growth or at least slow their fiscal consolidation.
“In early 2009, the world showed remarkable unity and deployed remarkable financial force in rescuing the global economy,” Geithner wrote. “The challenges now are different and cannot realistically be confronted by a repeat of that coordinated global response of financial stabilization and fiscal and monetary stimulus.”
Geithner said President Barack Obama on Thursday evening will push for a “very substantial package” of public investments, tax incentives and targeted jobs measures, which will be combined with reforms to restore medium-term fiscal responsibility. He did not provide any specifics.
WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke said he’s surprised by how cautious consumers have been in the two years since the recession officially ended. But the Fed chief offered no hints of any steps the Fed would take to boost the weak economy.
Bernanke said Thursday that a number of factors are keeping consumers from spending more, including high unemployment, a temporary spike in energy prices, falling home prices and high debt burdens.
“Even taking into account the many financial pressures they face, households seem exceptionally cautious,” Bernanke said, according to a transcript of a speech his is giving in Minneapolis.
Anyone want to explain it to the FED chairman?
Job insecurity and stagnant to falling salaries + combined with more fees fewer services from the states + No abillity to increase household income by sending the wife to work + No savings + inabillity to borrow + increasing food and fuel prices = Falling demand for services and manufactured goods.
We should also throw in no faith in the system to prevent thieves on Wallstreet from stealing everything from your job to your retirement account to the equity in your house.
To summarize, the cable reveals that top government officials in France and the US knew Wall street banks were committing fraud in the origination and packaging of sub-prime mortgage and lying to investors about the resulting securities they were creating and selling. Officials knew banks were also lying about their own liabilities and hiding them from investors by keeping the assets off their balance sheets. The government also knew that both regulators and ratings agencies were participating in the scheme.
The discussion of “systemic risk”, “market turbulence” and “taxpayer bailouts” over a year before the markets actually collapsed and those events actually occurred, show they knew a global financial collapse.
To summarize, the cable reveals that top government officials in France and the US knew Wall street banks were committing fraud in the origination and packaging of sub-prime mortgage and lying to investors about the resulting securities they were creating and selling. Officials knew banks were also lying about their own liabilities and hiding them from investors by keeping the assets off their balance sheets. The government also knew that both regulators and ratings agencies were participating in the scheme.
Slim sniffs the air. Detects the smell of a smoking gun.
2006 they fire the guy that had been Fed President for 20 years and replaced him with a guy that is considered to be the world’s leading expert on the Great Depression.
I ran into our area realtor down at the Bakersplat CostCo yesterday, and he told me that Kern Kounty banks are offering 10% commissions on sales of their REO’s. (This is in addition to the standard 6% realtors collect from the buyer/seller.) This practice is reminiscent of the 12% pay-out the State of California used to get rid of Sacramento overbuild in 2008-2009.
He also told me that the banks LOVE foreclosures because they get to sell the same properties over and over after being reimbursed for losses by the insurance guarantee fund. His cart was full of expensive meats and fresh produce, so I can only suppose he’s doing well these days….
Solyndra LLC, the bankrupt solar- panel maker that was backed by the Obama administration, is being raided by the Federal Bureau of Investigation today, an agency spokeswoman said.
“We’re executing a search warrant jointly” with the Department of Energy inspector general “regarding an investigation,” FBI spokeswoman Julie Sohn said of the raid at the company’s Fremont, California, headquarters offices and plant. Sohn said she couldn’t provide details about the investigation.
The company, whose $535 million federal loan guarantee was criticized by Republicans, filed bankruptcy on Sept. 6, six days after shutting down its factory and firing 1,100 people.
Former Solyndra employees sued the company, claiming it failed to give the warning required under federal law before shutting down and firing them.
Solyndra said it failed because it couldn’t compete with foreign manufacturers funded by their foreign governments. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the company’s biggest lender, according to court papers.
Congressional Democrats have asked the company’s chief executive officer to explain his optimistic projections about its future.
‘Strong Financial Position’
Democratic Representatives Henry Waxman of California and Diana DeGette of Colorado said Solyndra Chief Executive Officer Brian Harrison met with them earlier this year and assured them it was in a “strong financial position.”
“At that time, he said the company was projected to double its revenues in 2011, there was ‘strong demand in the United States’ for its shipments, and the company was expected to double the megawatts of panel production shipped this year,” Waxman and DeGette wrote in a letter today to Representative Cliff Stearns, a Florida Republican who heads the oversight panel of the House Energy and Commerce Committee.
I don’t have the facts of the case, but I suspect that this company was doing some game-playing with the federal money it got.
Speaking as someone who has signed up for — and has been certified — under one federal purchasing preference program (HUBZone), I’m here to tell you that the government is not a very happy camper if it finds out that you’ve misrepresented your business or used its money for something other than what you said you would.
Oh, one more thing: Being certified is not a slam dunk. You still have to go out there and sell your services to the agencies that might need them.
Barry Cinnamon, CEO of decade-old Westinghouse Solar in Campbell, Ca., posted an op-ed on the company’s corporate website lamenting the exit of rival Solyndra from the marketplace but also not pulling any punches when it came to describing who and what was to blame: Two big bets Solyndra made that didn’t pan out.
The first, he says, was that the main ingredient in solar panels, polysilicon, would remain expensive. Instead the global price has fallen 20 percent in the first half of 2011 alone.
As Cinnamon explains: “Solyndra invented a solar panel that didn’t use expensive silicon. Unfortunately for Solyndra, and fortunately for all the silicon solar panel manufacturers and customers, silicon has gotten very cheap over the past few years.”
The second fatal error Solyndra made, according to Cinnamon, was that Solyndra could make up for the cost of producing more expensive solar panels by achieving savings in installation. Solyndra touted its flat panels as being easier to install and rotate. As the company’s website description reads:
The ease of installation and simpler mounting hardware of the Solyndra system enables customers to significantly reduce labor, hardware, design and other BOS costs, which account for a substantial portion of the total installed cost of a conventional PV system. Fast installations mean less business disruption for the end customer as the rooftop work is completed quickly. For installers, being able to complete more jobs quickly means more revenue during the best installation seasons.
But Cinnamon notes: “Other commercial flat roof products are on the market (full disclosure, Westinghouse Solar has an inexpensive and easy to install flat roof solar panel product) with similar benefits at much lower costs to Solyndra.”
“With jobs so hard to come by for many Americans, you would think a private company deciding to create more than 1,000 jobs would be cheered by Republicans and Democrats alike.
“But President Obama’s National Labor Relations Board is doing everything it can to stop Boeing from opening a new plant in North Charleston.
“And as sad as it may seem, at the heart of the board’s actions is political cronyism at its absolute worst.”
“With jobs so hard to come by, you would think that a private company should be allowed to lay off and fire experienced union workers in Washington, and replace them with $12/hour non-union newbies in South Carolina”.
The Boeing management, instead of making up some fairy tale about “diversifying the industrial base”, told the truth. They were building a second assembly line in South Carolina to give them leverage against their Washington employees.
(Thanks partially, I might add, to subsidies from South Carolina)
This is against the law. The Washington unions filed a complaint. The NLRB agreed.
The Republicans have turned this into a “Obama hates American Workers” screed.
If you want to find out who hates who, ask Boeing how many jobs (including engineering jobs) have been farmed out to their subcontractors in Japan, China, etc.
For this reason alone I won’t set foot on a 787. To have such a cutting edge aircraft assembled by people who are paid what a shift manager is paid at a fast food joint is a disaster waiting to happen.
The project is screwed up for a bunch of reasons. Almost all of it due to Boeing management.
-Decided to make a high percentage of the airframe out of composites, creating issues with weight and assembly tolerances (management decision)
-Decided to farm out the design and construction of major sub assemblies and systems to companies who showed their inability to do so. These “partners” are scattered across the globe, creating inefficiencies in communications, logistics and supply chain management (management decision)
-Decided to get rid of all their subassembly engineers/employees, and become “systems integrators”, basically using the “Dell Computers” model to build airplanes (management decision)
All of these problems can be fixed for the most part, by throwing time and money at them.
Good thing Airbus decided to build the A380, or Boeing would be fooked.
If pay is the issue, is it a disaster waiting to happen, or are we just dialing things back a few decades?*
As long as overseas labor is as cheap as it is, and the trade balance issue isn’t addressed, it seems likely that our standard of living is being deep-sixed until a form of steady state is reached. And that state won’t be in favor of the pay of US workers relative to what it was just recently.
*I have no idea if this is equivalent pay from a few decades ago or not. Just trying to illustrate a point.
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Comment by X-GSfixr
2011-09-08 14:14:29
First the low skilled jobs got outsourced. All of those are pretty much gone.
Now, the high skill jobs are being outsourced. With a hundred years of engineering and manufacturing know how being given away for pennies on the dollar, and by coercing US employees into training their Mexican/Chinese replacements, by holding their severance and pensions hostage.
I think this is bull$hit. Businessmen, banksters and Republicans disagree with me.
Comment by sleepless_near_seattle
2011-09-08 14:35:59
Yep, and I think you illustrate quite clearly the unintended consequences that Boeing, HP, and many others have brought upon themselves. It’s too bad they’ve also made the US worker the collateral damage in all of this.
Both of those companies are in my backyard and I’ve been calling on them for a decade. Even the projects themselves I do still have with them end up being poached by my counterparts overseas…
Comment by X-GSfixr
2011-09-08 15:40:35
Who has been pushing the “free trade/outsourcing” dogma?
People who stand to profit from it. Stockholders, upper management, and the whores who are paid for justifying the position.
US employees, Federal, state and local tax bases, and, in time, the US strategic position.
European governments look at Airbus, and see a high tech jobs program.
The US government looks at Boeing, and sees a source for campaign contributions, if they just let Boeing do what it wants
Funny, even thought the Euros have resisted giving away the farm, they don’t have any trouble selling airplanes in China.
How much would unemployment go down, if EVERY JOB in the US was shipped off to China or India? A percentage point or two?
Take away legal means for people to make a living/survive, and they will resort to illegal means. Then you have Somalia.
Comment by towncryer
2011-09-08 16:14:43
If we let housing prices fall, get govt spending under control, and stop trying to artificially prop up everything which only benefits commodities, then 30-40K/year could be a good salary.
So who owns the job? The employer or the employee?
Union workers screw themselves over time and time again and that is a fact. Why I don’t know, perhaps they are to blind to see it. Or believe they are owed more.
A day trader, or a guy who has worked there 20 years?
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Comment by wmbz
2011-09-08 16:00:39
Who paid for all the training that the 20 year employee “invested” in said company? Who supplied the job? Who supplied the place in which to invest ones-self? Who chases after contracts to keep employees working?
There is and always will be a trade off, period. To brush aside simple facts is just a waste of time. Apparently you believe that employers always screw over their employees. So be it.
Comment by ecofeco
2011-09-08 18:38:56
An thing that is observable and is easily recreated by anyone and documented many times has NOTHING to do with belief.
“With jobs so hard to come by, you would think that a private company should be allowed to lay off and fire experienced union workers in Washington, and replace them with $12/hour non-union newbies in South Carolina”.
Well that is the real issue. The American standard of living is going down, except for the rich who set their own pay. (And there were a real market in executive pay, and no bailouts, their pay would probably have crashed even more).
So, say so. And then explain where the demand for what businesses want to sell will come from.
Greek Credit Swaps Surge; 91% Chance of Default
By Abigail Moses - Sep 8, 2011 Bloomberg
Credit-default swaps on Greek government debt surged to a record, signaling a 91 percent chance the nation will fail to meet debt commitments, after its economy shrank more than previously reported.
Five-year contracts on the country’s sovereign bonds jumped 196 basis points to 3,001 basis points, at 3:45 p.m. in London, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.
Gross domestic product shrank 7.3 percent from a year earlier after declining 8.1 percent on an annual basis in the first quarter, the Hellenic Statistical Authority said. Greece’s financial situation is “on a knife’s edge,” German Finance Minister Wolfgang Schaeuble told lawmakers last night, according to parliament’s HIB bulletin.
“It’s a combination of Greece continuing to disappoint and probably a growing realization among politicians that they’re throwing good money after bad,” said Gary Jenkins, head of fixed income at Evolution Securities Ltd. in London. “They’ve finally woken up to the fact that they’re not going to get this money back.”
The default probability, which is based on a standard pricing model, assumes investors would recover 40 percent of the bonds’ face value were Greece to fail to meet its obligations within five years.
$1 billion is 1,000 million and Congress has been borrowing at the heady rate of almost $100 billion a week since raising the federal debt ceiling barely a month ago. (100,000 million dollars a week!)
Since August 3rd the public debt has grown to $14.7 trillion with no slowdown in sight. Reduced to terms most of us can understand, that’s 400,000 million dollars of new debt.
Let it never be said the U.S. Congress is shy about spending other people’s money!
~ We are on the fast track to hitting the debt ceiling again. Not that anyone much cares.So we’ll get to listen to a bunch of whining and finger pointing once more. Then they’ll raise it. Screw fixing the problem, that’s to hard.
FBI raiding Obama’s favorite solar company. Eco-scams are ripping off taxpayers for untold billions, but hey, the important thing is that Obama and the DNC are raking in nice campaign contributions from the beneficiaries of the public’s involuntary “investments.”
The next scam: “Infrastructure investment.” The graft from these contracts will swell DNC campaign coffers.
It is a shame that he picked this particular company. They stood out in that their technology was much worse than what we had 30 years ago. That much money could have advanced some of the promising research ahead by decades.
Since I doubt we are going to make it easier to involuntarily commit crazy people any time soon, we need to have stronger teeth or is that weaker teeth laws?
Well in Illinois it looks like they might not be committing anyone…
“Gov. Pat Quinn announced Thursday he intends to lay off more than 1,900 state workers and close seven state facilities, including the Tinley Park Mental Health Center, in a budget-cutting move meant to help close a $313 million shortfall.”
…”Except for Tinley Park, the facilities Quinn intends to close are Downstate, including the Singer Mental Health Center, the Chester Mental Health Center, the Jacksonville Developmental Center, the Mabley Developmental Center, the Logan Correctional Center and Murphysboro Youth Correctional Center.
The layoffs target workers at all of those facilities and could begin as early as November, according to the governor and material provided by his office.”
Rick Perry was here this morning in SD, and now the power is out during OB’s speech. Do you think Perry said a prayer that the power would go down so SD County residents would miss the speech?
Got the lowdown on my coworker’s home sales saga today. They have been trying to sell for a couple of months, with no offers; now ready to lower the asking price. Their Realtor™ told them there were lots of short sales underway in SD County, and my colleague is just beginning to grasp what that means. I feel for them, as they are selling a home in the price range where the Oct 1 reduction in conforming loan limits will further limit the potential buyer pool. I didn’t get into the details of this, or its implications, but I gave my usual boilerplate advice, which is to first sell the home you are leaving before buying a new one, as it is very hard to tell what the market value of homes is when hardly any are selling, and the ones that sell are often foreclosures or short sales.
P.S. She knew nothing about last year’s $8K tax credit and its highly-leveraged impact on home sales prices funded with 3.5% down payment FHA loans. I didn’t get into it with her; it would have been a waste of breath to try to explain how $8K leveraged against a 3.5% down payment requirement can potentially increase the effective household-level home purchase budget to the tune of $8K/3.5% = $228,571. She is already sufficiently depressed about her plight…
Hubby, who used to work for a big SD commercial RE developer, is now laid off. He used to look at me like I was some kind of loony tune back around 2006 or so when I explained to him in plain English how bad the coming real estate crash was fixing to be. Now they are getting the real world education of a life time in selling a high-end home in a low-end market.
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Comment by sleepless_near_seattle
2011-09-08 23:32:12
And probably didn’t give credit where credit was due either.
Or, is he one of those guys who thought he just must’ve made a mistake somewhere and if he could’ve only done that one thing right, this would’ve all turned out different?
Comment by rms
2011-09-08 23:41:42
I was close to being banned from the Thanksgiving holiday back around 2005-2006 for explaining the disconnect from wages to cars and houses. Funny, I recall those who were the deepest in debt rocking on the balls of their feet as they strutted about like peacocks — the new economy.
A large swath of San Diego County was without power Thursday afternoon as officials investigated the cause of the outage.
Residents reported power being out across the city of San Diego as well as suburbs such as Oceanside and Chula Vista.
Sheriff’s officials told Fox 5 San Diego that many of its substations were without power. Utility officials are trying to determine what caused the outage.
There were also reports that parts of Orange County lost power.
Got about 26 minutes of battery power left on my laptop. By some miracle I don’t understand, wireless is holding up so far. Wifey just advised me to stop “wasting” battery power on blogging, so I am soon going to say “Guten Nacht und Guten Glück.”
I will say that power outages beat the heck out of earthquakes and hurricanes…
GOOD….someday people will listen to me you use more then Twice as much electrity at 4PM as 4 AM…
We need to give business reverse tax breaks…based on the number of full time with health insurance employees that DONT work 9-5 M-F….
Its a ghost town here in Long Island City after 6pm and weekends, holidays, but during the week you cant find a space to park. I would assume lots of the country is like this.
MYFOXNY.COM | NEWSCORE - More than 10,000 residents in the Binghamton, N.Y., area are under a mandatory evacuation order as waters continue to rise in the Susquehanna and Chenango rivers, the Press & Sun Bulletin reported Thursday.
At least 1,000 evacuees have taken up shelter at Binghamton University, and the Red Cross has opened several shelters in the region, according to the report.
“It’s just unknowable at this point as to whether or not those flood walls in the city of Binghamton will hold.
Went for a walk in the dark after dinner tonight. It was eerie to wander the ‘hood sans street lights, and no lights showing through the window of any house. The moon, the stars and headlights were the only light sources, except for the occasional flashlight.
SAN DIEGO—Public and private schools in San Diego County will be closed Friday as a precaution as area residents cope with a power outage that has left millions without electricity.
San Diego Unified Superintendent Bill Kowba said in a news conference Thursday that the closure will affect 200 campuses.
Officials say they are erring on the side of caution but expect schools to be operating normally Monday.
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http://www.khon2.com/news/local/story/Oahu-home-prices-fall-13-1-percent-in-August/d34IIGDriUmkI7-boDsvNw.cspx
HONOLULU- New figures by the Honolulu Board of Realtors show the median price of real estate on Oahu taking a plunge in the month of August compared to the same time last.
According to a report released Wednesday, the median price of a single family home stood at $557,500 last month – a 13.1 percent drop compared to the same month in 2010.
The median price for condominiums came in at $300,000 – a 1 percent drop compared to a year ago.
I can’t believe anyone is still buying condos here… especially for $300k.
Only $557,000? I’ll take two!
And you don’t even own the land.
But you do get to pay HOA fees!
And lease-hold rent on the land.
Realtors Are Liars®
Like the one commentator said afterwards , we are all only 1 % behind poor Jon Huntsman , and we aren’t running . It’ll be Rick Perry ,after he gets a bit of debating experience.
Mitt looks and sounds good , but his full time job is and has been running for this office for the last 5 years, that bothers me .
We still like Michele , but it does not look good for her at this point.
Romney is nothing more than another BS artist salesman that sold
his socialized medicine Romneycare to the chumps in Taxachusetts,
and now they are stuck with cost overruns.
Romney is haunted to this day by the thousands of lives saved by his healthcare debacle.
Where is your proof that thousands of lives were saved? Probably
the AP told you I bet.
I am hoping for a newcomer. The “do nothing” GOP needs a smart one this time.
Ron Paul and a super sharp outsider will get my vote.
Huntsman’s problem is the same as Romney- they’re far too reasonable for a party whose primary voters still think the world is flat and Adam and Eve rode a dinosaur to Sunday school.
Michelle and Perry don’t share that problem. Perry’s problem will be explaining his disdain for social security to the Florida voters.
Republican base = flat earth society with beaucoup buckaroos
Please present documentation to support claim
–
http://first-draft-blog.typepad.com/photos/uncategorized/2007/05/03/repubs_evolution.jpg
This good enough? Thier leaders don’t understand science, why whould the followers?
GALLUP NEWS SERVICE
PRINCETON, NJ — The majority of Republicans in the United States do not believe the theory of evolution
A.—-flat earth society with beaucoup buckaroos—-
B. —The majority of Republicans in the United States do not believe the theory of evolution—-
Me. Point B is irrelevant to point A.
Try to stay on topic, guys
They look like the same point to me. Round earth is only a theory after all.
“They look like the same point to me. Round earth is only a theory after all.”
Typical liberal thinking.
Maybe evil was contesting the “beaucoup buckaroos” contention? He’s too smart not to see the anti-science connection….
Jim “They look like the same point to me. Round earth is only a theory after all.”
Straw Man. Weak one at that. You sound angry.
Smart coward maybe.
Actually, it was an observational comment, followed up by a what I would call a generalized ad hominem attack.
Comment by NYGoon—Smart coward maybe—-
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
Straw Man remains
“generalized ad hominem attack”
RNC trolls are especially gifted in that area…
And a troll too.
“RNC trolls are especially gifted in that area…
And a troll too.”
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
“generalized ad hominem attack”
“RNC trolls are especially gifted in that area…”
Wait, I thought thats what I was trying to attack the RNC with??
I’m so confused.
/Breaks out internet debate strategies for dummies.
http://plover.net/~bonds/adhominem.html Hmmm.
“Please present documentation to support claim”
Completely unnecessary for anything so totally obvious to anyone who is paying attention and has an IQ of 70 or more.
“theory of evolution”
It has always been just a theory, there is not proof. So count me in as one of those who do not believe. Nobody knows how we came to be, you have theories and faith, that’s it. I would lay down a large amount of money (if I had it) that I am not an evolved ape. Java man, Homo Erectus…give me a break.
Thank you.
“It has always been just a theory, there is not proof.”
And there you have the non-scientist politician’s argument in favor of teaching Creationism, Creation Science, Intelligent Design, and any number of other non-theories in U.S. public schools as though they should be treated as equally plausible explanations for the Origin of the Species as the Theory of Evolution.
I suppose you are now going to explain to us that the theory the earth revolves around the sun has never been proven, either, and hence we should continue to entertain the earlier theory that the sun revolves around the earth?
CIBT: “Completely unnecessary for anything so totally obvious to anyone who is paying attention and has an IQ of 70 or more.”
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
I was just saying that my non scientific opinion is that I don’t know. Maybe I will know after I die, maybe I won’t, but there is no absolute proof in either direction. Evolution is a scientific theory and Intelligent design is also a theory only faith based. I have no problem with both being taught in school with proper context.
Why not throw in a few more religious crackpot theories and pretend they also qualify as science? Most Americans are too poorly educated to know the difference. We will be the laughing stock of the developed world, but so what? This is ‘Mericuh…
Nicky,
It would be useful if you took the time to educate yourself as to the scientific usage of the term “theory.”
Gravitation is a “theory.” That germs can cause disease is a “theory.” Evolution is a demonstrable fact, a set of readily accepted and provable principles. A “theory.”
It concerns me that you have the vote.
Sigh.
Intelligent design is taught in this country because we have a Judeo-Christian heritage, it should not be presented as fact, but as a predominant faith based view in this country. I am pretty sure we share other faith’s views of how we came to be at some point in a child’s academic career.
Other than that, school should be religiously neutral…I remember living in Texas back in the 70’s in second grade, we had just moved there from the bay area, we had to recite the lords prayer just after the pledge of allegiance. That was a bit strange and the practice was stopped just after I moved to a different school district a year later.
Ms. Hansen,
I will take the IQ Pepsi Challenge with anyone on this board +- 10pts.
Thank you.
Hwy tips his hat to the reasonable x2 Senator gals a way up north in Maine! Howdy!
“they’re far too reasonable…”
JON HUNTSMAN, FORMER UTAH GOVERNOR:
On candidates signing pledges:
“I’d love to get everybody to sign a pledge to take no pledges. I have a pledge to my wife, and I pledge allegiance to my country, but beyond that, no pledges. I think it diminishes the political discussion. I think it jeopardizes your ability to lead once you get there.”
On whether the Republican Party is becoming anti-science:
“When you make comments that fly in the face of what 98 out of 100 climate scientists have said, when you call into question the science of evolution, all I’m saying is that, in order for the Republican Party to win, we can’t run from science.”
Broaden the tax base (raise taxes on the poor and middle class) while lowering top rates (lowering taxes on the rich).
Sorry, but Huntsman’s political agenda is no more reasonible than the other fools. Sure, he’s not a Bible thumper, but that does not make him more reasonible.
I’m not saying he nor Mitt is reasonable per se, just that they are reasonable compared to the raving nutters that the GOP is fielding this time.
I’m actually hoping Romney wins at this point, just so one of the bible freaks doesn’t get in.
As for policy, seems Romney’s agenda would be pretty much exactly the same as Obama’s, so no big changes there.
Anthropogenic Global Warming is science. Poor science.
Yea, it’s always been a wonder to me, how a bunch of “scientists” can’t forecast the proper weather pattern a week ahead of time, but can come up with models that project the change in “global climate” by using a set of past data, and ignoring the effect of the sun? I can’t quite have a lot of faith in the whole process.
By the way, did Anthropods burn up a lot of the forests and cause the ice sheets to melt? Must be so. It couldn’t be that Natural processes, primarily solar flares and changes in topography (volcanic eruptions and plate upheaval) cause major changes in environment.
It’s got to be CO2 emissions.
Climate scientists don’t profess any expertise in the practice of medicine.
Perhaps you shouldn’t assume that an MD gives you any particular expertise in climatology– let alone peer-reviewed scientific research?
I think this article combined with the article of yesterday is the most important news of the year: http://news.nationalgeographic.com/news/2011/06/110614-sun-hibernation-solar-cycle-sunspots-space-science/
After 50 years of hyperactive solar activity it appears that our Sun is going to become rather dormant. The periods of low solar activity have been cold periods and that is a matter of historical fact. One interesting side note is this solar cycle is going to peak at the end of 2012 or the beginning of 2013, roughly the end of the Mayan Calendar. So maybe they saw a new ice age coming? I have my spam and wine so I will be fine, plus growing up in Vermont and experiencing times during the Winter when below zero weather was common, I think I can endure the New Mexico winters for sometime, even if they become much colder.
Ahansen: Climate scientists don’t profess any expertise in the practice of medicine.
Perhaps you shouldn’t assume that an MD gives you any particular expertise in climatology– let alone peer-reviewed scientific research?
Straw man. Really, “A”, in general I expect better from you. This blog with 400 posts or so per day about the Economics of Housing has how many board certified economists (oh yeah, we mock economists), and how many people in the business of buying/selling/trading/marketing… housing? Oh yeah… we mock them too. Maybe Mr. Jones should close down the blog since essentially no one who plays here has *formal* qualifications to opine
But, having dismissed the straw man point and note instead that thoughtful people of decent intellect and common sense can take issue with highly debated (and debatable) science, which has players on both sides, save that the monied class that stands to make billions from the claim, all fall on one side.
I’m barely old enough to recall when stomach ulcers where known to be caused by acid, stress and such, and when those deniers of this Scientific Theory, suggesting instead that infection could play a big role, where laughed out of the room by Establishment scientists. The examples cascade from there.
I mean, really, I make no claim that having a degree in Mol Bio from Princeton makes me per se an expert in doing “global warming” research. I’m impressed how many believe being Algore makes one such an expert.
“The periods of low solar activity have been cold periods and that is a matter of historical fact.”
True, from what I’ve read. It could possibly mitigate FOR NOW the effects of CO2 in the atmosphere. The problem will come with the next wave of high solar activity in conjunction with what we’ve put in our atmosphere. Might be another hundred years or so. Sounds like kicking the can down the road, as y’all like to say here.
dan,
It’s not so much a matter of “hotter” or “colder” as it is of CO2 concentrations and the atmospheric consequences– which are reaching, if not at a catastrophic tipping point.
At one time, you may recall from geology 101, the planet was inhabited by methanogenic bacteria– which metabolized themselves out of existence by off-gassing too much oxygen.
Let me toss the bomb in the pond, metaphorically speaking.
Let’s say AGW is all true and we are all doomed.
My assertion is that all proposed solutions, even at their most extreme, must fail. Seriously. Won’t work. We will all die.
Anyone care to explore why that is so?
Hint: Current solutions for AGW overlook the actual core problem.
Yes, but the question is how much of the recent warming really has been caused by CO2 when the last 50 years has been the most active sunspot period in a 1000 years? BTW, continental drift was rejected by geologists and I believe the promoter had no expertise in the area, actually think he had expertise in weather but I might be wrong on that. Sometimes common sense just beats a degree and the group think of the profession blinds more than it enlightens. However, even the founder of weather channel does not believe in AGW so this pronouncement of uniformity of opinion to close debate only makes me more suspicious.
Article on Bill Gray and AGW as a religion:
http://blog.chron.com/sciguy/2008/04/william-gray-global-warming-is-a-religion/
The science is NOT debated by the relevant scientific community any more than germ theory is debated by the medical community.
Yes, there are a few MD’s who contend that human immunodeficiency virus does not cause AIDS just as there are also a few MD’s who espouse creationism. But their pseudoscience does not pass peer-review, relying instead upon faulty reasoning, cherry picking, and the misrepresentation of mainly outdated scientific data.
The science IS “debated,” however, by those who profess an expertise they do not possess, and their equally-ill-informed political acolytes who invoke the name of Galileo (for example,) to bolster their weak and discredited arguments with false equivalencies. (See: “Five Hundred Scientists Named Steve.”)
Kay, evil, I’ll play.
There is a high likelihood that humanity will be eradicated by a series of pandemic viruses before it is wiped out by the effects of anthropogenic pollution.
Should we therefore stop trying to develop anti-viral vaccines? After all, Big Pharma stands to make trillions off of the scare-mongering….
Despite the RECORD setting drought, heat and wildfires, most people in Texas still insist global warming is a conspiracy.
Funny when people that talk about one region being colder than another they are referred to as ignorant not knowing the difference between weather and climate by AGW advocates. How is the weather in South America during their winter our summer? Perhaps one of the coldest on record? For that matter, show me a graph of world weather including so far this year and compare it to 1998? Where is the warming since we know with China growing 10% a year burning coal that there is a lot more CO2 in the air.
South American link: http://notrickszone.com/2011/07/26/south-america-gripped-by-brutal-winter/
The periods of low solar activity have been cold periods and that is a matter of historical fact.”
thats like saying heat comes from the sun !!
oh wait……
A-Dan, as with any asymmetric disturbance of a complex cyclical oscillating system, the effects are not perfectly linear and only become apparent over the span of the complex cycle when it goes back to the first step.
…currently, the observable effects are record weather extremes as the system tries to find its previous equilibrium.
Despite the RECORD setting drought, heat and wildfires, most people in Texas still insist global warming is a conspiracy.
——-
Actually TX fell one day short of setting a record for most consecutive days over 100F, passed the record (by like 2 days) of most days over 100F non-consecutive, set a few lack-of-rainfall records, but didn’t pass last year’s single day high temp of 112F.
So I don’t think global warming is a conspiracy but I also don’t think this particular year has anything important to say about it.
This year had a La Nina, they tend to be cooling on a global scale but the Southwest can expect to be dry.Thus, no need for an AGW explanation for what is going on. Last year was an El Nino and strong ones produce warmer worldwide temps. and it did. Finally, you have the PDO which tends to run in 30 year cycles. Up to a few years ago it was in a warm cycle and it tends to warm the entire earth and in particular the waters in the Pacific, actually causes poor salmon runs on the West coast. It also either enhances or diminishes the other shorter cycles. About 1977 was the bottom of the last PDO (its coolest point) with 2008 being the top. Thus it is not surprising we had a thirty year run of increasing temps. How exactly an active sunspot cycle plays into these other events, be dammed if I know but would not be surprised if there is a connection. However, Co2 is now running against the PDO and soon will be running against the sunspot cycle and I think it will be clear that Co2 is a very weak warming mechanism.
Evildoc (I) wrote:
Let’s say AGW is all true and we are all doomed.
My assertion is that all proposed solutions, even at their most extreme, must fail. Seriously. Won’t work. We will all die.
Anyone care to explore why that is so?
Hint: Current solutions for AGW overlook the actual core problem.
Per Ahansen Kay, evil, I’ll play.
There is a high likelihood that humanity will be eradicated by a series of pandemic viruses before it is wiped out by the effects of anthropogenic pollution.
Should we therefore stop trying to develop anti-viral vaccines? After all, Big Pharma stands to make trillions off of the scare-mongering….
Ok then. Welcome to the game
I certainly cannot exclude the possibility of other cataclysms, but in this case… no… because my challenge relates specifically to the thesis of A] Anthropogenic warming and b] Warming being a bad thing. If either is untrue, then we have no worries, either the warming (if there is warming) is not due to us and even if there is warming it is not harmful.
So, for this game we have human-caused warming AND because of that we are all… DOOMED.
Viruses are a confounding variable and thus don’t count.
However, the very solutions bandied for Warming, putting aside making a fortune for their purveyors, won’t work.
USA is 5% of world population and a significant carbon generator as it has been said (i lack proof on hand) that we use about 20% or more of the world’s energy output.
So, fine, we squelch our usage and drop it by 10-20% and maybe even make the generation of what we use a bit more green (assuming one accepts the definitions of what sort of energy usage leads to more warming).
Meanwhile, as the USA economy tanks (spoken of at length in HBB), those parts of the world what have, oh, 2-3 billion people (vs our 300 million) are ramping up their energy usage as they fight to free themselves from the shackles of 3rd-worlds status. After all, a big chunk of what separates mainstream mcmansion USA from mud-hut starvation ethiopia is… per capita energy use.
So, I see— or I hypothesize– that in best case scenario, Algore becomes a billionaire from bank assets in cap-trade scenarios and perhaps the USA– per capita– drops energy consumption a bit and makes a bit greener use of energy over the next 30 years.
Meanwhile our population doubles in 30 years, meaning in 30 years the USA is putting out 150% or more carbon/heat/etc as now, even IF we do everything Al wants us to.
Meanwhile, earth population doubles in thirty years as well from 6- 12 billion people, with half of that in areas that are increasing their carbon footprint per capita, so, let’s say Chindia goes from 2 to 4 billion people in thirty years and its carbon footprint more than doubles, maybe quadruples, as population goes up and clearly energy use is going up. There is after all a reason Ford put new plant in India not Detroit.
So, if USA goes a Gore shade of Green, our carbon footprint goes up 150% IN 30 years and Chindia goes up 400% and rest of world who knows somewhere in between.
If we are, truly, doomed now by AGW if we don’t cut our absolute carbon footprint, then, verily we really are doomed, as in 30 years the planet’s carbon footprint will triple.
So… solutions? Answer isn’t pretty, if one believes in AGW
The world is flat, the sun revolves around the Earth, let us descendant children of x1 Adam & x1 Eve argue, then pray for the truth. How’s that angle of organismic logic working out?
“So… solutions? Answer isn’t pretty, if one believes in AGW”
Climate change doesn’t care if you believe in it. I need go no further than Mount Ranier to see the effects on its glaciers over the last 50 years.
IMO, a lot of the folks who argue against it simply don’t want to have to change their behavior. Perry is beholden to oilmen who prefer a “Drill, baby, drill” approach. These are the same people who argue against peak oil and alternative energy and the EPA. They have a vested interest in maintaining the status quo as long as possible. If they can cast doubt on the science, then they don’t have to fight the policy proposals.
Solutions? IMO, an increase in gas taxes solves several problems. It would cut consumption and it would isolate the economy from the effects of volatility in the price per barrel. It lets people make their own decisions about how much to consume. It favors public transportation and denser living, which also helps to preserve farmland and open spaces. It is simple to implement and it increases revenue, which could be used to reduce the deficit (although it probably wouldn’t be). It would increase farm costs and probably the price of food. And there would be other impacts on prices of other goods, which overall reduces consumption and the associated manufacturing and distribution emissions.
Similar taxes on coal and natural gas could also be implemented.
OTOH, whether one believes in AGW or not, we can stick our head in the sand, make no changes, and burn carbon based fuels at an increasing rate (as populations grow and Chindia consumes at a greater rate per person). We can continue to trash environments globally so that when everything crashes, we won’t even be able to live off the land. Unless you believe in a scientific breakthrough or the magic hand of the free market.
—Climate change doesn’t care if you believe in it. I need go no further than Mount Ranier to see the effects on its glaciers over the last 50 years.—–
A. Lack of “anthropogenic” climate change also doesn’t care if you believe in it. Its not there. Or it is there. But neither has anything to do with the post to which you responded, which assumed– for sake of argument– that A] it is present and B] it is a bad thing.
—Solutions? IMO, an increase in gas taxes solves—-
As noted in my post, just prior to your response, if AGW is severe enough to threaten us now, currently proposed solutions, of which “yours” is a subset, do not allow humanity to continue living. AGW is too big.
—OTOH, whether one believes in AGW or not, we can stick our head in the sand, —-
A. If one does not buy the AGW tale, then not following aggressive “solutions” is not sticking one’s head in sand… it is being reasonable.
—We can continue to trash environments globally so that when everything crashes, we won’t even be able to live off the land. Unless you believe in a scientific breakthrough or the magic hand of the free market.—–
Ahhh, so it’s not about “Warming” then? Warming is just an excuse to do other behaviors we might happen to deem good?
You missed the point of my post. I tossed out some basic numbers (including one in error, not yet noted by anyone) to show that none of the proposed solutions stop global warming from being 3x as bad in 30 years as it is now. The global warming alarmists (whether right or not ultimately) have claimed we already are toast if we don’t change our ways. I showed that changing our ways as they would have us do, is no solution.
So, then, is “sticking head in sand” for believers of AGW the act of believing the Gorean solutions will work? Self delusion? Denial?
And, then, how does one abort life threatening global warming. The answer seems there. But, denial is powerful…
A minor quibble, Overdog. Texas officially set the record for the overall hottest place in the entire nation this year… ever.
http://today.msnbc.msn.com/id/44441386/ns/weather/
I just noticed a notice that over 1.4 million people are off line. No electricity, Nada, zero volts and If it lasts more than 8 hours there will be a hit to the regional economy. Now I’m sure it will pop right back on soon and there will be cries for investigations for who’s fault it is.
It’s funny because today was a new record low price per watt for solar panels. I have reached to point I’m putting my money on the line. I’m getting ready to buy 20, 235w solar panels for a price of $1.60 per watt for $7,520 + $250 SH. That’s 4,700 watts and it will cut my electric bill by over 65%. After adding batteries/inverter/ground mounting I hope to spend less than $14,000 before rebates or tax credits. In 5-6 years they will be paid off and when I have to re-roof my house I can just add more panels till I’m completely off the grid.
Search eBay for “SOLAR SHARP NU-235FB1″
But…. the non-believers wont even admit it has been getting warmer and the ice is melting. Yes, the cause for it is up for debate.
I do like clean air.
BlueStar - dont forget to insulate and make your house “smart” you may be able to cut back 25% just doing that.
“You missed the point of my post.”
“If either is untrue, then we have no worries”
As you did mine. My point is that belief in AGW is irrelevant. We have other, major problems that would be mitigated by changing our behavior, which would also mitigate global warming.
Meanwhile, as the USA economy tanks
An assumption. If we make major investments here in changing energy infrastructure, the economy may improve.
“ramping up their energy usage “
It doesn’t matter if we change unless China and India also do? My father never let me get away with the everyone else is doing it argument. If we develop a better energy solution, they will adopt it.
“cap-trade “>
Now you are talking policy. This is independent of belief in AGW. I think cap and trade is not very good policy. Too complicated. Too susceptible to being gamed.
“I tossed out some basic numbers (including one in error, not yet noted by anyone)”
I don’t care about your numbers.
“And, then, how does one abort life threatening global warming. “
There are a number of technological solutions that have been proposed, either blocking sunlight (like a Krakatoa event) or reflecting sunlight. I am not certain that any of them are called for at this point. But if we are in crisis in 30 years, they may be tried.
There may be events that cause the planet to cool, like a drop in solar output or a major volcanic eruption, but they do not necessarily negate the validity of AGW.
Good for you BlueStar!
(look at those costs people. I told for the the price of a new economy car you can power your house!)
But you’re looking at your payback wrong. Electricity is going to keep going up EVERY YEAR.
Happy to be heard
Me then: “You missed the point of my post.”
“If either is untrue, then we have no worries”
You: As you did mine. My point is that belief in AGW is irrelevant. We have other, major problems that would be mitigated by changing our behavior, which would also mitigate global warming.
Me now: You continue to respond to the wrong post, or show lack of awareness of the thread into which you have asserted yourself. The entire post assumed AGW is real and is threatening. The point of the post is that all proposed solutions cited fail to solve it and that we remained…. DoooOOOOooomed. DOOOOOooooooomed.
Your distraction and admission that whether or not we are doomed, AGW is just a manipulation to try to get us to “live greener” or some such, is telling. But, since for the moment, we are DOOOOOmed by AGW, my initial challenge, which Ahansen embraced to play, was… why are we DooooooOOOOOOmed no matter the solutions proposed to AGW. You still fail to save us from that Doooom.
Me Then: Meanwhile, as the USA economy tanks
You : An assumption. If we make major investments here in changing energy infrastructure, the economy may improve.
No. Rather, one of the core reasons for existence of this blog. No no jobs. Real joblessness at Depresssion levels 19% not 9% as gov’t says, discounting people out of work too long. Overwhelming debt for country. Real incomes not up in a decade. Economy is tanking. Whether it can be saved is a worthwhile question that by no means makes the “tanking” an assumption.
Me then, on Chindia et all: “ramping up their energy usage”
You now It doesn’t matter if we change unless China and India also do? My father never let me get away with the everyone else is doing it argument. If we develop a better energy solution, they will adopt it.
As noted, it indeed does not matter if we change even if Chindia stays the same and it does not matter if we change even as Chindia grossly worsens the posited AGW. By the criteria of the AGW’ers, we will be DoooOOOOooomed, as per my post, even with the best plans per the Greenies, successfully implemented. Still dooomed. Our better energy solutions as claimed by Gore et al., do not prevent the Doooooom.
So, what’s the only Doooooom blocker, if one believes in AGW? That was in the opening post too.
Me then: “cap-trade “
YOU: Now you are talking policy. This is independent of belief in AGW. I think cap and trade is not very good policy. Too complicated. Too susceptible to being gamed.
Again, you are woefully seeing a tree and not the forest. This whole exercise was a hypothetical, but one clearly defined. You have tangented and missed the point of core question.
AGW was cited as an issue under debate, which for the sake of this thread was granted as being wholly real AND wholly threatening.
Again, if AGW is real and if we were to do the best case solutions posited by the greenies, we are all dooooomed to die due to… global warming. See the first point. That C/T is more game-able than other solutions is irrelevant. You claim C/T is imperfect policy? Doesn’t matter. Perfect current policy still leaves the planet dead from AGW. That’s rather the point.
Me Then: “I tossed out some bas
You now: I don’t care about your numbers.
Me Now; THEN, you are an irrelevancy, chiming in on an issue in which he did not read the terms and fails to understand the game. I pity you.
Me Then: “And, then, how does one abort life threatening global warming. “
You now: There are a number of technological solutions that have been proposed, either blocking sunlight (like a Krakatoa event) or reflecting sunlight. I am not certain that any of them are called for at this point. But if we are in crisis in 30 years, they may be tried.
Per the greenies, we already are in crisis, and science fiction (assuming for moment that AGW is real) is irrelevant. If that solution– and if it is one– is found, then the other stuff proposed by the Greenies is unnecessary. If not, we all are DoooOOOOoomed, so it doesn’t matter. Still the solution is ducked.
You: There may be events that cause the planet to cool, like a drop in solar output or a major volcanic eruption, but they do not necessarily negate the validity of AGW.
Me Now: You did not read the thread, your posts are irrelevant. The validity of AGW certainly is in question, but for the sake of those who care and who believe, AGW’s validity was accepted as a given at the start of this thread. And, given that, we are DoooOOOOoomed. No solution posited by the greenies overcomes the population effect, which– by the numbers you don’t care at all about– give us with 3x current “disastrous” carbon footprint next generation, assuming we do all the solutions the greenies would have us do. Look out melting icebeeerg.
Who said anything about “warming,” Dr. Strawman? At issue here is anthropogenic pollution and its atmospheric effects– both near and long-term.
It stands to reason that any ameliorating efforts that begin with and are mandated by the USA will be followed by its trading partners. (Look to the brouhaha over California’s emission standards for the precedent.) PRC is already far ahead of America in its “clean” technologies, as is most of Europe and SEAsia. Anti Cap’n Trade efforts are spearheaded and financed by American oil interests. That fact alone tells us all we need to know about the “science” behind it.
Whether any of these efforts will make a dent in what is likely an irreversible cascade is debatable. But what is certain is that without these efforts initiated and promulgated by the US, catastrophic climate change is inevitable.
Personally, I’m going with financial disincentive. Your ahem, mileage may vary.
“Dr. Strawman”
That’s Dr. Evil Strawman to you…
—Who said anything about “warming,” —-
Everyone involved in the AGW, until they.. .didn’t. Then it became “climate change”. Go figure. But, AGW does stand for “warming”. IN any case, it offers s till with big bucks for Algore if the “solutions” are implemented.
I will forgive you for using disparaging personal name for me. It reveals you are insecure about your argument. I shall endeavor not to stoop to mutating your name in our dialogue. I do find it interesting how many people on blogs start using crabby names for people with whom they disagree, rather than affording them the same courtesy they would want for themselves.
—At issue here is anthropogenic pollution and its atmospheric effects– both near and long-term.—-
Well, no. This is not a thread on pollution. It is a thread on AGW- which, per those who worry about it- will kill humanity and render our planet uninhabitable, a point which for the sake of argument I accepted in order to initiate this thread strand about why we are doomed- per the tenets of AGW- even if we implement the solutions posited by the green crowd. A thread on “pollution” might have merit, but it would be a different thread. Verily, few people advocate, per se, increasing pollution for its own sake. As with most actuarial discussions, the question then is how much pollution can be tolerated, and what costs are acceptable to minimize. But, again, for another thread.
—It stands to reason that any ameliorating efforts that begin with and are mandated by the USA will be followed by its trading partners.—-
It stands to reason that most claims starting with “it stands to reason” often don’t stand to reason ;)’
But, again, as per my first “bombshell post”, my core assertion here is that *even if* our trading partners follow our plans and *even if* we and they manage a 10-30% per capita decrease in carbon footprint, if one believes in AGW then this merely guarantees that all humanity dies from AGW. That’s the key point that has been skirted.
—PRC is already far ahead of America in its “clean” technologies, as is most of Europe and SEAsia.—
Yes, the same PRC that had to close itself down in order to have clean enough air to host the Olympics. The same PRC frantically building ghost cities (sorry to corrupt this AGW thread with a housing reference). And, again, even if per-energy-use carbon footprint improves a bit, the per-person energy consumption of Chindia stands to staggeringly skyrocket over the next generation. So, China’s energy consumption might quadruple, so that even if 15% cleaner from a carbon standpoint, Chindia will more than triple the carbon print, while *maybe* the USA only increases (yes increases) its carbon footprint by 50% (our population doubles, our print-per-person decreases 20%)
—Anti Cap’n Trade efforts are spearheaded and financed by American oil interests. That fact alone tells us all we need to know about the “science” behind it.—
Well, no. That stoops to, say, dismissing anything said ever by any liberal because he is… gasp… a liberal. Or conservative. Or Jew. Or Christian or… whatever.
Indeed, Gore stands to benefit personally more from Cap and Trade than any single oil executive from “anti cap n trade”, not that this matters if one wishes to examine issues only.
Again, AGW is debatable. But the point of this thread is not to debate it. Again, for sake of argument, I’ve conceded that AGW is real and that it will kill us all. My challenge was… why does it not matter if all the proposed solutions (never mind the personal gain they offer some people) are implemented? And, as has been teased out to some degree, the demographic bomb will trump the savings efforts. Modest cut per person in some countries while their person count doubles? Carbon footprint jumps. And, recall, we already are doomed by AGW, so any worsening only confirms doom. And, Chindia et all will see a skyrocketing of carbon, even if clean steps are implemented, because not only are populations jumping, but energy use per person is jumping due to increased industrialization, as already happened in USA. We are thrice doomed.
—Whether any of these efforts will make a dent in what is likely an irreversible cascade is debatable. But what is certain is that without these efforts initiated and promulgated by the US, catastrophic climate change is inevitable. —
No. This is a hedge. Per AGW we are already doomed if we don’t improve. It is clear that AGW will only worsen- drastically- despite even severe steps as outlined by the USA Green Types– as the per-person carbon footprint still will jump due to industrialization or first-worldization of third world lands, and will jump far more even then as there will be far more people on average making bigger carbon footprint per person despite cut-back steps.
So… my post was not (really wasn’t) a snark post.
What’s the only way to avoid death by AGW for the planet? It should be obvious. At some level just as that other fellow started to use worries about AGW as a tool for other green goals he had, I suspect the AGW is displaced anxiety tied to subconcious realization about the real problem on Earth.
And that is…. ????
I have a fan base!
I feel so… validated.
“…Everyone involved in the AGW, until they.. .didn’t. Then it became “climate change”. Go figure….”
Science is like that, you see. When new data become available, positions get reevaluated and refined.
“Global warming” is your conceit, not mine. I’ve not used the phrase; hence my calling you to account for your hypocritical use of the “strawman” moniker on others. Nonetheless, you raise some valid issues here which no one has adequately addressed.
Allow me?
But not on Ben’s bandwidth. You may contact me offsite at dee vee ess en tee tee at bee enn eye ess dot net, if you wish, and we can continue this discussion. I sense philosophical layers beyond the subject at hand — which I’ll be glad to respond to if you’d like.
Cheers,
a
Huntsman’s and Romney’s problme is not that they are too reasonible.
Their problme is that want more of the same that got us here. Raise taxes on the poor and middle class by eliminating tax credits and deductions, then lower taxes on the rich with lower top marginal rates.
RIIIGGGHHHHTTTTT… Because the rich aren’t rich enough as exemplified by the 2% treasury rates, and the middle class are too rich as proven by how fast goods are flying off store shelves.
CLUELESS and dangerous fools!!! FOOLS I tell you.
Reagan’s economic turn around was not based on lowering taxes on the rich while rasing them for the poor and middle-class (which is what he did). The turn around came from turning on the debt. When he took office, we were at post-Civil-War record low total (public and private) debt, and 20 years after he left office we were at all-time record high total debt/gdp ratio.
Reagan put us on the road to massive debt which is going to collapse into depression. Yeah depression. Yeah Reagan.
Yeah JFK!
To the moon,…Alice…to the moon! Ralph Kramden, bus driver
Let’s also not forget that the 1980’s was when CEO’s (*ahem* JACK) began cannibilizing their own companies to harvest profit.
Corporate cannibilism didn’t make much of a dent at the time. Easy for a President to look good under those circumstances as long as he could read Freedom and Apple Pie off his teleprompter to assuage the fears of the laid-off in the rust belt. But after 30 years of corporate greed, now it’s cutting into even the basic standard of living, especially for the lower middle classes. Hard for any President to look good.
Nope they hid the cannibalization with a GIANT debt bubble. The currtain is now being raised and the formerly middle class and upper middle class and lower end elite are about to find out that the elite have been drinking their milkshake.
“Evildoc”
RNC troll alert.
Comment by Cantankerous Intellectual Bomb Thrower©
2011-09-08 16:59:23 ““Evildoc” RNC troll alert.”
It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
evil, darlin’,
You’re not like your usual well-reasoned self today. Whatever has lodged itself in your nether cavities, I hereby wish it elsewhere and away from your generally-good-witted person.
BEGONE demon! Fie thee from our evildox!
There now. Feel better. Okay?
Hugs.
—Huntsman’s problem is the same as Romney- they’re far too reasonable for a party whose primary voters still think the world is flat and Adam and Eve rode a dinosaur to Sunday school.—–
Strange. I’m a primary voter, with degree from Princeton in Molecular Biology, a practicing physician. I don’t believe the world is flat. Having spoken to many primary voters, I found none who believed Adam and Eve rode a dinosaur to Sunday School. For that matter, many of us who are primary voters are not of a religion that ever had Sunday school
Perhaps your research is flawed.
Evidence suggests that your party’s voters wants to be represented by hard core theocratic wackaloons. Stop voting for them and we will start thinking the majority of your party is reasonable. Or perhaps start/join a new party that dosent cater to the insane minority.
You will be disappointed to learn I don’t vote based simply on your wishes and directives. You use mindless ad hominem insults in place of issue-based discussion, which has the effect to trivialize your input. Very disappointing.
Too, it is a bit prideful of you to believe “we” worry too much how “you” think of “our” party, if I must retreat to simplistic jargon such as you offered.
My issue-oriented observation in that the Republicans stand pretty good chance to take the General Election, whichever of current candidates wins nomination.
The current occupant of high office, having had no prior executive experience, and at least superficially demonstrating narcissism which transcends that of the republican candidates, has been a bloody disaster. The opposition candidates might or might not be great, but they have been handed a remarkable opportunity to win, sans greatness, due to the course of the current administration
“evildocs”
Can’t the RNC find a better place to fish for votes?
If I were to guess, I would say that Ben’s blog is getting a little too successful and little too sensible for the R’s comfort zone. The wouldn’t send the paid trolls otherwise. Maybe they’ll click on a few ads while they’re here.
MSNBC and CNN comment boards have already been overrun with them.
Cantankerous Intellectual Bomb Thrower©:
Can’t the RNC find a better place to fish for votes?
Golly and gee willikers. Is the DNC mad that the RNC also has follower here. That is a pity for certain.
Weird how this RNC guy (I s’pose now I must join, having been so instructed), chats issues, to which others respond with Straw Men
Snort!
I apologize if that came off as an ad hominem insult, or a personal insult.
It was, however, meant to be a direct observation and opinion that the modern day Republican Party has come to be the party of ignorance and theocracy. They are no longer the party of economic conservatism and small reasonable government; they have become the party of christian only corporations. I believe that their core supporters (or at least the ones they pander to) are no longer remotely rational, and their leadership and actions has come to reflect this.
This may not be the makeup of the entire party, or even a majority, however, this is what it looks like from the outside.
“The current occupant of high office, having had no prior executive experience, and at least superficially demonstrating narcissism which transcends that of the republican candidates, has been a bloody disaster.”
You hate him….. no reason to tapdance. Be a man about it.
Now we return at least to a semblance of issue-based discussion. That’s a start.
Yeah, so, people in general are morons. I get it. Said moronitude (sic) manifests with different irrationalities for different groups of the morons. I get that too. Where I start to laugh is when one of the “Yankees better! No! Mets better!” political groups starts to believe the “other side” has monopoly in this arena.
We have the religion of “flood and no dinosaurs” for some. We have the religion of “global warming”, right down to Indulgences and to freedom to practice not as they preach for the High Priests, for others. Never mind mapping these schisms to the ecomony? Entitlements for all? Or Social Darwinism? And, yeah, I have a solid science background and read science journals weekly, but remain unconvinced by AGW. But, that’s a tangent. And, yeah, I read multiple econ blogs daily. No doubt that leaves me in position to save the world.
And, yeah, there are oodles more examples bilaterally. I see little evidence that Prez’s who pander to atheistic elitists hypergreens do better for the country than do Prez’s who cater to those who derive their morality from their understanding of Divine Law. I see media Left see racism at every turn, in those who disagree with the Prez, seriously leading me to see major projection going on.
I invite you to investigate the the psych theory of Backfire Effect, which anyone who posts on a blog should read. The basic notion that most who enter have preconceived notions and that contrary info has the effect of *reinforcing* their preconceived notions, that few enter ambivalent and really wanting to learn, that most want to *seem* right- win the brawl- more than they want actually to *be* right, to know truth, recognizing of course that the process of “knowing truth” is a bumpy path.
Does someone *really* believe tossing “RNC member” as a response to an issues-oriented post with which he disagrees, is likely to convince either his target or casual observers of the merit of his *own* position? Nah. No one could be that foolish, right?
To return to your point, in my view, both parties have to cater to common denominator populations. Sad. But, all else aside, it is far from clear that catering to those who buy into morality derived from Judeo-Christian heritage are doing worse for the country than those who cater to those who want monstrous entitlements and to punish those who create business. Yeah, each Party has way more to it and each of those points (J-C heritage vs Entitlements) can lead to pages of debate. So it goes.
From an econ side, if I must post my own actual beliefs, instead of simply picking at nonsense I see tossed about, I believe our society is suffering from a 40 year failure process. It wasn’t Shrub’s fault. It’s not Oblamer’s fault. To a degree they are bobbers on the tidal wave. Where Obama has alienated many neutrals, has not been his failure to save economy, but has been his incessant complaining the economy was other people’s fault. That too, can give pages of comments.
Well, my thoughtful long response seems to have been eaten by the system or in moderation for length. We shall see if it shows up.
—-“The current occupant of high office, having had no prior executive experience, and at least superficially demonstrating narcissism which transcends that of the republican candidates, has been a bloody disaster.”
You hate him….. no reason to tapdance. Be a man about it.
————
Ahhh, the next step beyond Straw Man and Ad Hominem attack. We call this one The Telepath
How to respond at this level???
Let’s see…
“I know you are but what am I”
“Neener neener”
“Don’t hold back ‘realtor”, you know you really miss Bush”
And so forth.
Gosh, at least Jim switched back to issues oriented discussion. Some of you guys are pretty week. Do research the Backfire Effect.
Fun Stuff
All that writing in an effort to appear agenda-less and you still negatively characterize those you disagree with and use positive language for positions you anchor to. You label us “partisan” and accuse us of attempting to persuade or convince the other side…. and that is precisely what you’re doing. Persuading others is a losers game and you’re still playing it.
Actually, I don’t think he was trying to criticize the attempt at persuasion, just the manner used in the attempt.
And he’s right about that, coming into an internet forum calling people names will not convince anyone to change their view on things. It is, however, fun.
/rest of what NYGoon said seemed about right though.
Of course E-Doc can’t respond because it’s true. He has a burning hatred for O.
“Ahhh, the next step beyond Straw Man and Ad Hominem attack. We call this one The Telepath
How to respond at this level???”
The hell with that, I’m taking it to the NEXT level.
You are now breathing manually.
You are now blinking manually.
Your head itches.
The Final Countdown is playing in your head.
MWHAHAHAHAH
Next, I shall levitate your cat using the power of my mind alone!!
“The current occupant of high office, having had no prior executive experience…”
Do any of them ever?
Term limits, how do they work?
Some goon wrote ——All that writing in an effort to appear agenda-less and you still negatively characterize those you disagree with and use positive language for positions you anchor to. You label us “partisan” and accuse us of attempting to persuade or convince the other side…. and that is precisely what you’re doing. Persuading others is a losers game and you’re still playing it.—–
Evildoc’s Response: Projection is a terrible curse. I’m sorry you suffer for it. I have the most vague recollection that all responses by me of this sort have been prompted by some other critters’ responding to my issues-based posts with retorts of “RNC member and Troll”. Soooooo…. who be da partisan here, matey?
Snort!
Some lying realtor wrote, “Of course E-Doc can’t respond because it’s true. He has a burning hatred for O.”
Hey, I like the Story of O.
I laugh heartily at folks who pretend to read minds, while contributing nothing but mindless ad hominem attacks to what could be an issues-based conversation.
I invite evidence that I hate… anyone.
Snort!
Well, if that’s a real question, the real answer is yes, some of the have prior executive question. Then of course, if I may hand you your next and perhaps stronger question, would be, “does prior executive experience correlate to being a better Prez?”
Of course, then we need to define “better”
And… off we go
Well technically, Grover Cleveland did.
You have a burning hatred for O. Face it.
——Comment by Realtors Are Liars® You have a burning hatred for O. Face it.———-
A. It uses mindless ad hominem insult, lacking ability to generate issues-oriented argumentation. It thus invalidates anything it subsequently has to say.
As a great physician once said, “I see the Klingon’s lips move, but no sound emerges”
B. Snort!
Narcissistic Personality Disorder alert!
More accurately Obama Derangement Syndrome. (now tapdance Waldo)
“Perhaps your research is flawed.”
Perhaps the people you know are not representative of the typical Republican voter- who according to polls doesn’t believe in evolution.
http://en.wikipedia.org/wiki/File:Creation_Museum_10.png
And that’s the challenge. Having the wrong litmus test, or let’s say, “being simplistic in a complicated world”.
Believing or not in Evolution no doubt raises some political challenges for some followers of politics and for some who wish to play in politics.
Buuut… so too does not believing in secure borders, such that a chunk of entry level jobs no longer are available to citizens with limited skill sets.
Soooo…. vote for a group because (assuming one believes it) it would improve border security, even if some of its members disagree with me as to how humanity came to be here, or vote for the other guys, because over beers I might be happier chatting evolution with them, even as they embrace illegal immigration and trash the country. Which is worse, how to choose how to choose
Thanks evildocs. I can’t tell if I agree with you or not on issues, but I like your style.
And that’s the challenge. Having the wrong litmus test, or let’s say, “being simplistic in a complicated world”.
Believing or not in Evolution no doubt raises some political challenges for some followers of politics and for some who wish to play in politics.
Your demand was that we present documentation that most Republicans don’t much believe in mainstream science- which we did, and I guess that’s why you’re now trying to change the argument into whether belief in science is germane to political judgement. I say yes, as would any reasonable person, for reasons too obvious and tiresome to state, other than to point out that recognizing reality would seem important to any type of judgement.
Next absurd argument?
===present documentation that most Republicans don’t much believe in mainstream science- which we did, and I guess that’s why you’re now trying to change the argument ===
Nonsense. Your gripe was with a single issue, a microcosm. I embrace the macrocosm. Too, given that most of these arguments are used by people to say, “here’s why you should vote for Party X not Party Y”, I simply skip the obfuscation and get to the real issues.
Checkmate
Being Mormon is a huge liability to Huntsman. His remark about only giving pledges to his wife and country showed he is very much trying to down play his church.
What were you expecting: Him to reference his pledges to his other five wives?
It’s very easy to explain. There is way more money going out than is coming in. In the next decade, there will be WAY more money going out than coming in based on the simple demographics of the US and the benefits promised. It can’t work.
Either tax the hell out of younger workers, or cut benefits, and or/extend retirement age to 70 and beyond.
That’s pretty simple to explain. There isn’t enough money to cover the projected promises.
You recall the Democrat “lockbox” don’t you? What happened to that? Never happened.
And how about PAYGO, remember the “pay as you go” based on revenues taken in the Democrats raved about, and passed.
They still haven’t passed a budget after 2 years of Obama in the White House.
Why? Simple. They would have to show their hand. They won’t.
They’ll pass it to a committee, like Obama already did, and when they don’t like the result, they’ll blame the republicans and pass the problem down the road with a “continuing resolution”.
The Texas Governor if correct. SS is a Ponzi scheme and he is the only candidate with the nads to call it what it is.
Social Security can be fixed. The Republicans don’t want to. They want to privatize it - or as Hermann Cain said, personalize it.
Ron Paul won the straw pole[ Drudge Report] despite the main news including Fox has blew him off as some “crack pot”. His answers spoke with truths and it showed when compared to the answers others gave.
Jon Stewart had a good piece on this showing all the coverage to people like Santorum who got a fraction of the votes Ron Paul got, this despite not having endless food and high priced entertainment like some of the tents.
“a party whose primary voters still think the world is flat and Adam and Eve rode a dinosaur to Sunday school.”
Don’t worry, your free stuff will keep coming no matter who wins.
Cool!
I like free stuff.
Perry is a very sinister character, reminds me of Rumsfeld or Cheney. On top of that he’s one of those conservative, fake bible thumpers that makes liberal use of the death penalty. The forced vacination incident of school girls in Texas after meeting with Merck lobbyist (Dr. Mengele) will not go over well with the voter. I can picture low hitting mudslinging ads based on this issue alone.
Romney is another career politician loyal to Wall Street, Big Oil and the military/industrial complex. He has no firm stand on any issue, perfect candiate for big business.
The media and big business hate Ron Paul. His principles, intellect, integrity and stuborness get in the way of doing what’s right for Wall Street and big business. No campaign donation or air time for you!
At least Ron Paul comes across as an honest and sincere person,
whom the country could trust even if you don’t agree with every
policy he is in favor of.
I agree with you, unc, but I was one of those Ross Perot voters. He offshored jobs in the end. You live, you learn, they all are BS artists. But I do think Ron Paul is a good man.
It’s possible to offshore even if you’re not bought off. Offshoring is classic Tragedy of the Commons. The other guy did it, therefore I have to do it too or go out of business. As a corollary, the honest ones who don’t offshore go out of business and disappear, so everyone left is dishonest by definition selection.
The only way to get around it is to pass laws preventing it to everybody.
“…honest and sincere person…”
No way the Republican base will ever go for him.
“…Ron Paul comes across as an honest and sincere…”
He doesn’t fake it with hair coloring.
fake bible thumpers that makes liberal use of the death penalty.
“When Brian Williams of NBC mentioned that 234 people had been executed in Texas, the audience applauded—which they did not do when Perry credited Obama with ordering the operation to kill Bin Laden.”
Slate
Yeah… little scary when people clap on the mention of killing people.
I agree. Even if the state kills one innocent person, that’s one too many.
No, more like considering the audience. Anyone sitting in that audience likely doesn’t want to admit that it was the black man, and not the golden boy, who got the brown man.
I’m a bible thumper in that I believe in God, and I don’t really give a crap that 234 people have been executed. Sorry but I care more about the victims than the killers.
I would agree that there are problems with the judical system re: determining guilt, but once guilt has been determined, I think the death penalty is just fine.
I also do not have a problem with the death penalty. However, I consider it an evil, even if a necessary evil.
When applied, it may be justified, but that doen’t mean that its use was not sad.
I would never applaud its use.
Yeah, there were murders so we killed the murderer!! Woot woot.
IN theory, I am fine with the death penalty. In practice, we keep executing innocent people, especially Texas. They keep finding more and more cases where people have been proven innocent by better forensics, or crooked courts. The death penalty is too final.
“proven innocent by better forensics, or crooked courts. The death penalty is too final.”
Bingo. In theory I can live with the death penalty, provided no innocent person would ever be executed. Don’t know if we could ever get there, given the imperfect and corruptible nature of our system.
There’s a lot more people killed by repeat murderers than even the grandest claims of people killed by wrongful execution.
Plus, there’s deterrence. We’re expected to believe that incarceration does in fact deter, yet a harsher penalty like the death penalty does not? Absurd.
By that standard, we wouldn’t let people drive, fly in airplanes, build buildings, or go swimming. Or, even incarcerate people. Because innocent people die as a result of all those things.
“There’s a lot more people killed by repeat murderers than even the grandest claims of people killed by wrongful execution.”
And you don’t see any problem with the state being the one that does the executing of an innocent person? It is only a matter of numbers? Never mind that the issue can be solved by not paroling convicted murderers.
The only situation in which I could ever see agreeing with the government excuting someone is if that person proves that even prison is not enough to keep them from killing again. It might be appropriate for a person who cannot be kept from killing even by incarceration in a supermax. But even then I see that as our failing that should be corrected, not really a reason to have the state decide who lives and dies when isolation from the rest of society should be enough for our protection.
“There’s a lot more people killed by repeat murderers than even the grandest claims of people killed by wrongful execution.
Plus, there’s deterrence. We’re expected to believe that incarceration does in fact deter, yet a harsher penalty like the death penalty does not? Absurd.”
All irrelevant. When the state kills an innocent citizen, EVEN ONE, it has lost all moral standing.
“By that standard, we wouldn’t let people drive, fly in airplanes, build buildings, or go swimming. Or, even incarcerate people. Because innocent people die as a result of all those things.”
Those are not done at the hands of the state. Huge difference that should be obvious. And incarceration leads to death? By that measure, so does living. And as I recall, prisoners get free health care.
We had a famous case in Maryland where a double-murderer, shackled hand and foot, managed to kill another prisoner, during a bus ride.
http://www.usatoday.com/news/nation/2008-06-13-124197955_x.htm
Everyone’s entitled to their opinion. I disagree.
There is no way to deal with murderers without getting your hands dirty. I prefer to err on the side of safety. And execute them.
It’s the closest thing to justice we can reach; it prevents them from killing again; and it deters as least as surely as the lesser punishment of incarceration.
I think we can all agree that it is better a thousand innocent men be executed rather than let one guilty one escape punishment. Remember, everone is guilty of something. It is what our legal system is founded on.
One has to look at this in context. Putting people in jail already results in the death of innocent people. All the time. It creates a risk, when violent offenders are housed together. That risk is realized.
So, you have one criminal justice policy that definitely results in the death of an innocent person. I see few objecting to that policy.
You have another criminal justice policy, execution, which may result in the death of an innocent person. There are vague, grand claims about innocents executed, but no credible evidence of any innocents executed, since the reintroduction of the death penalty in the 70s.
One can object to the death penalty. But objecting to it on the grounds of the possibility of the innocent executed, and then not objecting to incarceration with its observable high body count, seems to… not be looking at the totality of the issue, only one side.
So it’s better to let 10 guilty men go free than to imprison one innocent man.
So - how about letting 5 spree killers and 5 serial killers go free, to keep that innocent man out of jail?
It’s all about the cost/benefit.
Bingo. In theory I can live with the death penalty, provided no innocent person would ever be executed. Don’t know if we could ever get there, given the imperfect and corruptible nature of our system.
I think I’ve mentioned this before. I think we need two tiers of guilt. Beyond a reasonable doubt, and beyond all doubt. The second being defined by some combination of witnesses and confessions, and being the only category eligible for the death penalty.
Witnesses and confessions are both notoriously unreliable. And, yes, I am completely serious.
Yeah, I know. There ought to be some threshold that could be legally defined, though. There are probably some cases that would fit even a very stringent definition. And those are the ones people get so upset about when the person is not executed and lives to commit more crimes.
My problem with convicting and executing the innocent is that there is a guilty person loose who is still free to commit mayhem.
I hope every state will eventually decide to abolish the death penalty. Over zealous prosecutors, lying cops and circumstantial evidence have all led to executions and that is shameful.
You’re catching on.
those 234 people had been through multiple trials, as noted, and found in each case to be guilty of heinous crimes.
Bin Laden, who could have provided valuable intelligence, was executed, without trial, when, in my mind, he could just as easily have been captured and put on trial. Why not?
The Military acted as Court, without trial, guilt assumed.
How can the 2 situations be considered equivalent?
It reminds me of the swift Execution of Timothy McVeigh. He didn’t get to spend decades on trial, with countless appeals. He was eliminated very quickly. I would have thought the FBI would have wanted to interrogate him more. The press should have been aching to do a profile and make a series of shows about his family, friends, his “state of mind”, etc, etc. But no. Gone.
NO further questions to be asked.
A long trial would have been a GIANT Propaganda gift to Al Queda.
PS What’s to say OBL isn’t in some cave coughing up intelligence as we speek?? Do you have any proof that this is not the case?
measton, there’s the Photo of the Hanging Eyeball, or so I hear. That’s about as good as we’re going to get.
I have shot human-sized animals in the head before. On at least one occasion eyeballs came out of their sockets. Not the grossest thing I’ve ever seen, but enough that I have no desire to see any OBL pictures. I wouldn’t have any way of knowing for sure it was him in the picture anyway.
“Perry is a very sinister character, reminds me of Rumsfeld or Cheney.”
That’s always been a big plus for Republican voters, at least back to my childhood, when they elected Tricky Dick.
Yeah, will be tough choice in the General Election, Right vs Left. Sinister but effective, vs incompetent and community organizing… and a bit sinister too
“Sinister but effective”
What on Gawd’s earth is your objective:
Having your and my kids taught Creationism along side of the (just a) Theory of Evolution?
Having your teenage daughter undergo mandatory vaccination against HPV with a Merck pharmaceutical product (think quid pro quo…)?
Perry will be effective, all right…
—-What on Gawd’s earth is your objective:
Having your and my kids taught Creationism —-
DNC Troll Alert
Right on, Mike! You nailed it. Perry is a pos. While Texas burns, he’s out campaigning. That should tell anyone with half a brain what he’d do as prez. While the country goes down in flames, he’d be doing his Elmer Gantry routine. One helluva snake oil salesman.
Perry ought to be back in his state, if for no other reason than to lend moral support. But he’s not going to let massive wildfires inconvenience him, is he?
OTOH, he’s seeing to it that Texas gets rid of some of its excess housing stock, no?
I have to say, in my years of doing business over the internet, the most courteous, fast paying customers I’ve had have come from Texas, hands down. (That’s not to say I haven’t had good customers from other parts of the country, I have, but my dealings with Texans have been consistently rewarding) I have always enjoyed my interaction with Texas customers. Based on my experience, I don’t understand how Texans elects such governers as Perry and Bush. Maybe they’re just too decent to see the evil in others.
‘how Texans elects such governers’
It’s the two party system. Chances are, one party’s candidate is going to win. This is because the people are sick of the last bastard. So the nomination process begins and 1 or 2 % of the population actually pick the nominee. That person wins and everybody wonders, how did we end up with that fool?
It works the same way when they migrate up to federal office.
Anyway, every school boy and girl in Texas knows the Governor is a figurehead, and the LT Gov actually runs the state govt.
Getting rid of housing stock will just screw renters even more. Who’s our Austin poster — his rent went up 20%(?) and he had no other choice because all LL’s were raising rent at the same time.
Hey, Ben, thanks, I should have known that, actually.
With all the crap Texans have taken over the years, I’m surprised they’re still standing. A real testimony to the character of the Texan.
Of course, it’s been my experience that where people are at their best, the bastards move in to hold them down.
I’ve lived in Texas many decades, and you give them too much credit.
Mostly, they’re just too damn dumb to know they are being effed over.
Children are forced to get many vaccinations in Texas ( Polio, Hepatitis, Diphtheria, Tetanus, Acellular Pertussis, etc).
With a large immigrant population, leaving this decision to the parents would be a medical nightmare.
The fact that a preventable cancer is sexually transmitted should not cause a conniption fit amongst parents.
Exactly
The fact that a preventable cancer is sexually transmitted should not cause a conniption fit amongst parents.
I don’t think that’s causing the conniption. It’s the fact that a medical procedure (innoculation) was being mandated by law, that the cost was to be borne by the parents (i believe), and Perry had a huge conflict of interest in the whole thing.
As stated, lots of vaccines are manditory and paid for by parents.
The problem with this one was the STD nature of it. The Bible Thumbers in Texas didn’t want to send “mixed signals” to girls. Same as their abstenance only education.
I guess they like lots of teen moms with STDs in Texas.
The problem with this one was the STD nature of it.
Care to back that up?
Perhaps it has to do with the real risk of transmission to classmates. Other mandatory vaccinations are for diseases that are airborne…this one is not, and as such doesn’t exactly pass the same muster for mandatory vaccination.
Do you really claim to know why people objected? Can you back up your statement that people objected due to the “STD nature” of it.
I can. I live here and he’s right.
For more info, search the state newspapers, especially the comments sections on their websites.
The second most important factor of concern is the fatal reaction risk to the vaccine.
“The problem with this one was the STD nature of it. The Bible Thumbers in Texas didn’t want to send “mixed signals” to girls. Same as their abstenance only education.”
The ScriptureSlingers went berserk over this “issue” no different than all their other sex related manufactured nonsense.
“The fact that a preventable cancer is sexually transmitted should not cause a conniption fit amongst parents.”
It’s the rush of the vaccine Gardasil to market, and the newly discovered side effects. Seizures after the final injection, have been reported as a side effect.
Like many drugs, the masses are the study, since REAL controlled studies slow down the marketing time. Time is money, the hell with the collateral damage.
It’s the rush of the vaccine Gardasil to market, and the newly discovered side effects. Seizures after the final injection, have been reported as a side effect.”
my step daughter who works in the medical field warned me about this, at the school my younger kids go to they were pushing this but it was not mandatory.
so we said no thanks
“We still like Michele , but it does not look good for her at this point.”
The RNC spokesman posts right here on the HBB — cool!
Clarification: You did mean to type Michelle, as in Michelle Obama, right? Spelling mistake excused…
The DNC spokesman posts right here on the HBB — cool!
I love the intellectual discussion of deep issues. Sigh.
I love the intellectual discussion of deep issues. Sigh.
right there with you, evildocs. I can’t help but notice the trend of the folks who resort to strawmen and ad hominems. The worst part is they don’t act solo, but seem to like to pile on the logical fallacies.
So many smart people here of different backgrounds, different jobs, different ages, and different geographical locations. And it’s wasted by such childishness.
“I can’t help but notice the trend of the folks who resort to strawmen and ad hominems.”
Easily eliminated: Keep the RNC trolls off the HBB.
—–Comment by Cantankerous Intellectual Bomb Thrower© Easily eliminated: Keep the RNC trolls off the HBB.———
Sigh. We’ll have to purge CIBT from the board. Too bad. I like political trolls.
troll. Troll. TROLL. Ooooh, so empowering for him. It can’t think. Just babbles. I like you CIBT
“Easily eliminated: Keep the RNC trolls off the HBB.”
Yeah, it’s terrible living in a country were multiple points of view exist. If only the poor progressives could just rule the airwaves and the blogosphere uninhibited.
Why are these RNC trolls coming out of the woodwork here? I repeat: This is not a political blog. Go pump Cretin Science education on some other blog, pleeze…
Why are these DNC trolls coming out of the woodwork here? I repeat: This is not a political blog. Go pump Cretin Science education on some other blog, pleeze…
Nope, but if I am to be called a Troll after all these years of posting, I would prefer to be called a Libertarian Troll.
Thank you.
I repeat: This is not a political blog. Go pump Cretin Science education on some other blog, pleeze…
PBear, you really need to look in the mirror here. You raise politics day in and day out.
You’re right, the subject of this blog is not politics. However many posters engage in political discussion as it relates to housing and our current economic mess. You are just as guilty as the rest of us. Do you really think you somehow have the moral high ground here such that you can tell others to stop it and go away?
Please, keep your ad hominems to yourself. Labeling anyone with a different point of view is a “RNC troll”? You are so ridiculously closed-minded. Yet here you go on hurling insults at people who are religious (note the crack against mormons above).
You really need to take a long look at your own behavior here before you start criticizing others and trying to chase them off. Sure, you post a lot of articles. Outside of that, you simply stir the pot, call people names, and insult people. Is that really all you’ve got to bring to the table?
Weak.
IMHO, Ron Paul can beat Obama.. However, he’s not crazy enough to get the GOP nomination, and therefore, is unelectable. It pains me to say that, because, although I find some of his ideas a little “out there” I really think that he has the mental horsepower and the ability to help heal this country.
The trump card is that RP can, without a doubt, make any other GOP candidate unelectable. If he runs as an independant, it will, without the slightest shred of a doubt, get Obama a 2nd term. It’s the nuclear option, and I doubt that he will take it if he doesn’t get the GOP bid. However, it’s something the GOP has to worry about; he’s the only candidate that can split the vote like that today, and it makes him extremely dangerous.
Ron Paul is a smart guy. Yes, some of his ideas are “a little out there” but a lot of the conventional ideas got us where we are today. Maybe it is time to try something new, something that’s well reasoned.
For example, we tried a $800 billion stimulus package that didn’t really stimulate. Japan tried this same recipe for 2 decades. All it did is create the largest debt/GDP ratio in the world. So what’s their response? They double down and try another stimulus program. I call that learning resistant. Maybe its time to try something else.
“If he runs as an independant, it will, without the slightest shred of a doubt, get Obama a 2nd term.”
I disagree. By 2012 things might be so bad that he could win the election. A lot of people that will not vote at all otherwise might vote for RP.
yeah yeah yeah pay down peoples credit cards and for those of you that are debt free…hey you get an ounce and a half of gold or 75 ounces of silver….fair enough?
The bargaining stage?
Just once lets try a bottoms up approach
or we can rasie gas taxes which would start filling the highway trust fund tomorrow and we can put people to work quite quickly repaving and filling potholes….
How much was repaid from TARP? Nobody seems to want to agree that it was, for the most part, successful. Game on!
I loved Ron’s comment about the fanatical zeal the candidates obsessed with on building fences and “multilayer defenses” on the border. They work both ways too as they can keep us from escaping from Amerika. There is already a law on the books from the Patriot Act that can freeze your funds if you try to move to another country if the Govt. labels you a risk or threat.
Speaking as someone who lives within an hour of the much-vaunted border fence, I can tell you that it doesn’t work. Parts of it have already been undermined by heavy rainstorm-caused flooding. And people are already figuring out how to climb over it.
Fine the crap out of, or put anyone and everyone hiring illegals in jail, and you wouldn’t need a fence.
“Fixed defenses are monuments to man’s stupidity”
George S. Patton
“Fixed defenses are monuments to man’s stupidity”
I know they’re a good way to lose to any player that’s not stupid in the game Starcraft.
In Big Bend National Park, you can simply walk across the mudflats to Mexico in the dry months(assuming your vaccinations are upto date).
Does the fence work when it’s actually still a fence?
I know they’re a good way to lose to any player that’s not stupid in the game Starcraft.
exactly. It’s all about the siege tanks.
In SC1 I like huge herds of hydras. In SC2 I like to turtle and tech and then send out the void rays. I’m not a “real” player, though.
Do the electric fences still work when the Southern part of CA and the Northern part of Mexico lose power due to a monitoring problem in AZ?
Like today??
Good news! All that money that flows to China? It comes back when the rich flee the conditions of unfettered, poorly regulated crony capitalism and emigrate here- to the sweet land of regulation- to live in a land with an FDA and an EPA.
Top of Chinese wealthy’s wish list? To leave China
yahoo
BEIJING (AP) — Chinese millionaire Su builds skyscrapers in Beijing and is one of the people powering China’s economy on its path to becoming the world’s biggest.
He sits at the top of a country — economy booming, influence spreading, military swelling — widely expected to dominate the 21st century.
Yet the property developer shares something surprising with many newly rich in China: he’s looking forward to the day he can leave.
Su’s reasons: He wants to protect his assets, he has to watch what he says in China and wants a second child, something against the law for many Chinese.
Among the 20,000 Chinese with at least 100 million yuan ($15 million) in individual investment assets, 27 percent have already emigrated and 47 percent are considering it, according to a report by China Merchants Bank and U.S. consultants Bain & Co. published in April.
Nearly 60 percent of the people surveyed said worries over their children’s education are a reason for wanting to leave.
China’s richest are increasingly investing abroad to get a foreign passport, to make international business and travel easier but also to give them a way out of China.
“The living conditions abroad are better, like residential conditions, food safety and education,” said the millionaire as he dined in the VIP room of a Beijing restaurant. Lowering his voice, he said for many rich there are worries about the authoritarian government. “This is a very sensitive topic. Everyone knows this. It’s freer and more just abroad,” he said.
“The living conditions abroad are better, like residential conditions, food safety and education,” ”
Yeah, you moron. Amazing what happens when there are regulations and taxes to enforce them.
Dirty industry migrates out, people migrate in…makes sense to me.
And the Chinese tax the wazoo out of rich people. The maximum tax rate is 45%. No “state” income tax but no way to do any tax planning either. No wonder the super-rich want out.
45% does not strike me as “out the wazoo.” Especially if you’re ultra rich.
Well Capital is global and knows no national loyalities. Perhaps one day their elites will leave the country a burned out smoking hulk - not unlike the way our elites left our cities once they were finished with them?
Sounds to me like it’s a good business model for the USA, going forward……”Land of the Robber Barons and Despots”
Rape and pillage your own country, poison the land with pollution, steal everything you can steal, then come to the USA, where the air and water is still relatively clean, the courts will protect you as long as you have money, protected by a police force biased toward arresting petty criminals instead of white collar criminals.
All of this paid for by the peasants, of course.
Fixer,
Your posts have become positively lyrical recently. I’ve been very impressed. Thank you for sharing.
-Polly
Nothing like seeing stupidity surrounding me every day, to bring out my natural sarcastic nature.
I’ve gotta wonder what kind of roadblocks their government will put in their way.
When I was in college in the mid/late 1970’s I went to school with a girl from a very wealthy family from Lebanon. They were unable to get permission for all the family members to leave the country at once because they knew that once they all left they probably wouldn’t come back. Each time she came back from visiting home she was loaded up with diamonds and gold jewelry as a way to get some of their money out of the country.
Ain’t that just like a damn socialeest/commie to want regulations and rules and laws!
What do you learn in the classroom on the first day of freshmen economics class?
There is no such thing as a free lunch.
Up and Down Wall Street | TUESDAY, AUGUST 30, 2011
This “Free Lunch” Could Have a High Tab
By RANDALL W. FORSYTH | MORE ARTICLES BY AUTHOR
Letting homeowners to take advantage of ultra-low interest rates would decimate MBS investors, which cuts the odds of such a scheme.
Giving every homeowner the same largesse of record low interest rates enjoyed by blue-chip corporations would seem to be the ultimate free lunch, both in terms of politics and economic policy. No wonder there seems a growing drumbeat that the Obama Administration will announce such a plan next month as part of its program to rouse the economy from its torpor in time for its reelection campaign in 2012.
The appeal of such a scheme is undeniable. Too bad it has myriad problems, which is why it has failed to gain any traction when it has been proposed previously.
The idea of letting homeowners refinance at interest rates as low as 4% surfaced again last week when the New York Times reported it was under consideration at the White House. The plan would allow loans already backed by Fannie Mae and Freddie Mac, the mortgage giants under federal conservatorship, to be refinanced even if the homeowners were “under water,” that is, owing more than the value of the property because of the collapse in house prices.
Presumably a borrower who has continued to pay off a 6% mortgage would be more willing and able to pay off a 4% loans. For a $400,000 mortgage, that would cut the monthly payment to about $1900 from $2400, freeing up $500 a month that could be spent elsewhere. It would be equivalent to a tax cut that would not increase the deficit.
After all, if a member of the Dow Jones 30 Industrials can borrow at less than 4%, such as Walt Disney (ticker: DIS) can borrow at 4%, why shouldn’t Middle Americans whose mortgages are backed by taxpayer-supported mortgage agencies? Disney recently issued 10-year bonds with a 2.75% coupon rate, the lowest on record for such a maturity (which would be comparable in duration to a 30-year mortgage with monthly principal and interest payments.) Standard & Poor’s rates The Mouse single-A, several notches below the recently reduced double-A-plus for Uncle Sam, as well as its charges, Fannie and Freddie.
Top policymakers recently have endorsed the idea of boosting housing and mortgage lending. In his speech in Jackson Hole last week, Federal Reserve Chairman Ben Bernanke endorsed “good, proactive housing policies” as steps to stimulate growth. At the same confab, Christine Lagarde, the new head of the International Monetary Fund, was more specific, urging U.S. policy makers to undertake “more aggressive principal reduction programs for homeowners, stronger intervention by the government housing finance agencies, or steps to help homeowners take advantage of the low interest rate environment.”
Yet if the benefits of helping homeowners take advantage of low interest rates are clear, one would think such a plan would have been put in place a while ago. Indeed, this isn’t the first time the proposal has been floated.
The problem, explain Mark McClellan and Ron Torrens, managing editors of U.S. Investment Strategy and U.S. Bond Strategy from BCA Research, publisher of the venerable Bank Credit Analyst, it that the gains for homeowners would result in heavy losses for owners of the mortgage-backed securities.
“Agency MBS holders would presumably receive $100 for securities that are valued well above that level at the moment. To the extent that Fannie and Freddie buy each other’s securities for their own portfolios, taxpayers would bear at least some of the cost. Moreover, would the Administration really stick China with sizable losses on its MBS portfolio? The domestic banking sector is the single largest holder of agency MBS and imposing a loss on this sector would risk reopening a barely-healed wound. It is unclear whether the [government sponsored enterprises] have the authority to force refinancing anyway, and the [Federal Housing Finance Agency] might be violating the terms of the conservatorship if it allowed the GSEs to do so,” they write.
“These factors make it quite difficult for the Administration to push through such a plan. Republicans will try to block any large Administration initiative that might boost the President’s re-election chances, but something could be done without Congressional approval. Moreover, there was a dangerous precedent set when Washington steamrolled the bondholders of General Motors in 2009.
“The bottom line is that we cannot rule out a refinancing plan coming to fruition, but we see the chances as considerably less than 50%. We remain overweight agency MBS, and recommend that investors continue to hold mortgage [real estate investment trusts] until we see signs that a refinancing plan is gaining momentum,” McClellan and Torrens conclude.
…
There is no such thing as a free lunch.
That’s what we learned in the first day of P-Chem too.
The majority of our citizens apparently never took either course.
the majority of our citizens couldn’t pass it either.
Come to think of it, I actually learned that on the first day of first-year undergraduate physics class; only heard it later on in economics discussions.
+1 for taking p-chem! You can’t win, you can’t break even, you can’t get out of the game…
My wife gets free lunch nearly everyday. She makes $19 an hour taking people’s blood pressure as an MA for a cardiologist, and drug representatives bring them $20+ lunches nearly everyday. She’ll eat the soup portion or salad and bring the rest home. I get burned out on restaurant food if I eat it too much, so at times we just toss it out or give it to the pets.
The medical industry is seriously messed up.
Still not a free lunch, not even for her. It’s being paid for by Big Pharma <–Medicare <– taxpayer <– your wife.
I agree, but my medical costs so far have been low, as have the ones actually paid for by her, so I think we’re coming out ahead so far.
I’m sure I’ll get good and sick as I get older for them to claw back though.
You’ve completely missed the point, Overdog. The “no free lunch” meme isn’t that one particular person can’t come out ahead. It is that someone, somewhere is paying for it. Your wife’s free lunch is paid for by a drug company because doing so encourages the doc to prescribe more drugs on patent from that company. That increases drug costs which makes private insurance and goverment provided health care more expensive and we all pay for that.
“I’m ahead of the game so far” isn’t an answer.
I think I got that point across with the comment with “The medical industry is seriously messed up” that I made, but that would require you to be able to read, which I guess is a high requirement.
What do you learn in the classroom on the first day of freshmen economics class?
That depends whether you’re talking about microeconomics or macroeconomics.
“…macroeconomics…”
Crackpot theories about the economy of alternative reality
…as viewed from the ivory tower.
‘It’ll hurt the MBS holders!’
You could say the same thing about the Fed raising interest rates hurting stock prices.
Off topic.
But since you brought it up, the use of interest rates to steer the economy, rather than just maintain the dollar as a stable store of value, seems like a rather questionable strategy at this point, no? How is that string pushing working out for them?
“Off topic.”
It’s on the topic of government decisions that hurt a class of asset-holders.
“How is that string pushing working out for them?”
Exactly as Keynes predicted, not well. Poor Friedman must be rolling over in his grave. Bang! goes 50 years of conservative economic theory:
Remarks by Governor Ben S. Bernanke
At the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois
November 8, 2002
On Milton Friedman’s Ninetieth Birthday
“As a personal aside, I note that I first read A Monetary History of the United States early in my graduate school years at M.I.T. I was hooked, and I have been a student of monetary economics and economic history ever since.1 I think many others have had that experience, with the result that the direct and indirect influences of the Monetary History on contemporary monetary economics would be difficult to overstate…
Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again. ”
___
Don’t be so sure, Bennie.
How is that string pushing working out for them?
”
I beleive its helping the banks what else could you want but strong profitable banks besides over priced medical costs and and education of course?
The banks are keeping their Fed-funded-at-ZIR powder dry at the moment for the fire sale of the 21st century. At what point will it make sense to purchase banking stock shares to avoid catching a falling knife yet also share in the Fed’s largess?
But the MBS holders were never promised that people wouldn’t be able to refi out of their current loans.
My message to the MBS holders…. Whhhaaaaaa….
Shut up cry babies.
Sure, the current MBS holders like their free lunch, with them collecting the higher interest and government absorbing the risk, but too bad. The free lunch should end.
People that bought GSE bonds whining about government meddeling is like moving next to an airport then whining about the noise of planes flying over your house.
“But the MBS holders were never promised that people wouldn’t be able to refi out of their current loans.”
It amazes me how the posters here can’t distinguish between a world where refinancing occurs on an occasional, random basis versus an alternative universe where everyone is prodded by a top-down cut-rate interest offer into refinancing at the same time. This isn’t rocket science, people!
And totally irrelivant.
No one promised the MBS holder that interest rates would not be lowered and everyone would refi out.
If not for the crashing housing market and underwter situation, people would already be refi-ing to lower rates. So, what we’re talking about is not letting the “underwater” situation from preventing the refi.
But why would the entity on the hook let the person refi? Becuase the entity on the hook for the loss is not the person whose getting the profit in the case of GSE MBS.
Again, you can’t buy a bond that would not exist without gevernment meddeling, then complain about government meddeling.
My anser is the same as when someone that moves next to an airport cimplains about the airport. STFU!
“STFU!”
Getting a little testy, are we?
I was just trying to point out that there is a $15bn or so transfer effect involved with taking away future interest rate payments from GSE MBS owners and handing it over to underwater homeowners. Whether that is a good or bad thing is someone else’s call. I’m just trying to help publicize the actual public choice involved, in contrast to the propaganda that has been floated about how the cost of the program will be $0 or so.
We can distinguish it, Bear. We just understand that the disclosure on the MBSs didn’t promise that there wouldn’t be changes in the mortgage business over the time period that the owners held the bonds. If they didn’t promise and disclosed that the payout on the bonds could be influenced by changes in the mortgage market and interest rates (believe me, they do), there is no problem.
Lets assume that some time in the next 5 years the US adopts socialized medicine. Not single payer, but socialized where the docs are all employees of Uncle Sam. Do the people who are doctors in 5 years get to be reimbursed for the lost income they would have had if the government hadn’t become their employer? No, of course not. It is a risk you take when you get a US medical degree.
“…changes in the mortgage business over the time period that the owners held the bonds…”
Like a ‘business decision’ to transfer billions of dollars in wealth from bond owners to home owners, for instance?
Yup. It is an economic change. It is not reimbursable. You can’t sue for it. There is no legal damage.
What PB describes is like a run on a bank, versus routine daily withdrawals and deposits.
Or the sudden load on a cell phone network, during an emergency (which breaks it), instead of normal daily load volume.
And I was prevented from making a cell phone call for a few minutes when the earthquake happened and I wanted to call my family and let them know I was fine. So what? The cell phone contract does not guarantee conectivity at all times. If I assume it does, then too bad for me.
“What PB describes is like a run on a bank, versus routine daily withdrawals and deposits.”
I’d go one step further: It is more of a government-sponsored, financially-engineered run on the bank, conducted under the cover of propaganda to sell it as a ‘Free Lunch’ program (i.e. it doesn’t cost anyone a penny).
I prefer honesty about who gets to pay for political giveaways. At any rate, it’s not as though the owners of those MBS don’t understand they would pay for the financially engineered wave of refis.
“…when the earthquake happened…”
Are you making an analogy between stealth financial engineering plans and earthquakes? Hmmmm… now that you mention it, it sort of fits…
Please note that there is nothing here that implies that the losers on the transaction would be able to sue to get their money back. That is because not all economic losses are torts or contract violations that are redressable under the law.
I just looked at rates this morning. With good credit you can get 4.375% with no to fractional points.
So the only people that would take advantage of this mass-refinance-cram-down would be people who are underwater. If you’re not underwater, odds are you’re either near that rate now or strongly considering refinancing.
Shockingly enough, the only people this would really help are underwater. And ta-da, they’d still be underwater if the rates were 0.00%.
But less likely to walk if their payments are closer to rent equivilant.
Actually, low rates would help potential buyers who have some cash for a down payment.
Not sure what that has to do with letting people with upside down Freddie/Fannie mortgages refi to lower rates.
Oops, I thought you were talking abut mortgage rates in general. I didn’t know that Obama’s proposals were as specific as 4.375. I thought they were being vague with 6% –> 4%.
Obama’s plan is for people that are upside down, but Fannie and Freddie are already on the hook for the loss, to refi to the same balance but a lower rate.
There are two side effects.
1) No chance the loan could be returned to the bank that originated it.
2) The current MBS holders that are collecting high rates with no principal risk, get paid the outstanding balance but lose the future higher interest they thought they were going to collect virtually risk free.
Hair-of-the-dog demand-side mortgage market stimulus hasn’t gone out of fashion, just yet.
WSJ Blogs
Developments
Real estate news and analysis from The Wall Street Journal
September 8, 2011, 1:00 PM ET
Six Steps That Could Boost Refinancing
…
The White House could take a number of steps to revamp the program, though many of these steps would require the blessing of Fannie and Freddie’s regulator, the Federal Housing Finance Agency. Here are six that policy makers would be likely to consider:
* Remove the eligibility date. Currently, loans that were originated after June 2009 aren’t eligible for HARP, and loans that have already refinanced once through HARP can’t be refinanced again.
* Eliminate the 125% loan-to-value cap. Nearly one in 13 loans backed by Fannie Mae can’t participate in the HARP program because they’re too far underwater. These loans weren’t eligible initially for HARP because they can’t be sold into standard pools of mortgage-backed securities issued by Fannie and Freddie. Some analysts have suggested that the Federal Reserve could buy these loans as one way to facilitate the program.
* Waive risk-based fees that Fannie and Freddie charge. The firms charge lenders extra fees for riskier borrowers, which effectively raises the rate and reduces the incentive for underwater borrowers to refinance. “It wouldn’t be just a refinance boom for the pristine credits. It would open it up for middle America as well,” says Bob Walters, chief economist at Quicken Loans.
* Streamline the application process to tamp down closing costs. Eliminating appraisals, waiving title insurance requirements, and simplifying the refinance process could reduce fees that may have discouraged underwater borrowers from refinancing. (There’s much more on this in a paper by mortgage-market consultant Alan Boyce and Columbia Business School economists Glenn Hubbard and Christopher Mayer.)
* Address second mortgages and mortgage insurance. Using the HARP program for borrowers who are underwater has proven “extraordinarily difficult,” says Mr. Walters, because many borrowers have second mortgages or mortgage insurance from companies that must sign off on the new loan. Coming up with a way to gain automatic pre-approval from participating second-lien holders and mortgage insurers could accelerate underwater refinancing.
* Indemnify lenders against the potential for “put-backs.” This is a big one. Many banks have been reluctant to refinance borrowers under HARP, or are charging hefty fees, because of the concern that they’ll have to buy back the loan from Fannie and Freddie if it defaults.
Of course, any uptick in refinancing would come at the expense of bondholders, muting some of the economic boost. A working paper from the Congressional Budget Office provided some estimates around the benefits and costs of refinancing more borrowers.
Fixing one or two of these steps would help at the margins. Dealing with all of them would provide a bigger boost to refinancing. And all of them stop short of the “blanket refinance” that some analysts have proposed, where Fannie and Freddie would automatically refinance borrowers with an above-market rate, whether they ask for it or not.
“Mass refinance” programs aren’t as likely to happen because they threaten to create significant uncertainty for mortgage-bond investors. Officials may be reluctant to take steps that reward yesterday’s borrowers at the expense of tomorrow’s.
Who cares. When I left the GOP, and became a Political Atheist, I terminated R&D Political Theatre.
The unemployed can’t afford to be political atheists.
These pre-debates are basically cheap reality shows. The media needs to keep Perry alive because they want his superpac ad money.
I have some respect for about half of Ron Paul, but I simply can’t see myself voting for someone who would allow the country to return to 1900.
The current socialist policies we have been running under and have been for the last 30 years and more are what is going to ensure we
go back to the 1900s.
Trade inbalances, exploding public and private sector debt required to fund those imbalances, widening wealth disparity….
We’re going back to the 1930.
What socialist policies? please educate us and explain what you would eradicate.
Government intervention into everything. Deficit spending
up the wazoo. A nanny state where everyone looks to the
government to solve all their problems. A media propaganda
machine that constantly distorts and lies about the truth.And
an education system that has been bastardized by the left.
GIVE him some examples.
Socialism is where the state or the workers control profitable industries so their profits can be equitably shared by the population at large.
What we have under Bush/Obamanomics is the state assuming or guaranteeing the debts of failing industries (TARP, GM, Chrysler, now Solyndra) so that their losses can be shared by the population at large.
So whatever the hell this is, it ain’t socialism.
What do you call the tax system thats been in place for years,
Federal, State and Local; its all about redistibution. That is
socialism.
GIVE an example.
So whatever the hell this is, it ain’t socialism.
Corporate Communist Capitalism©®™ is what it is.
unc, there will always be redistribution. Would you like American redistribution or Somali redistribution?
“socialist policies we have been running under and have been for the last 30 years ”
Started with Reagen, eh? Well, you got that part right. But I’m not so sure it’s ’socialist’, unless you mean they socialize the losses while they privatize the profits- which isn’t socialism.
a
Don’t forget alpha-sloth that the democrats have had control
of both houses of congress for a vast majority of the last
approx. 70 years and republicans just 8 months in the house of the last almost 3 yrs. of “Hope and Change”.
unc, you’re wrong.
Repubs controlled all branches of government from the first day Bush Jr was elected and did so until just 3 years ago.
Repubs once again control the House and the Dems really only had a technical majority anyway, which means they did NOT really “control” anything.
This might help you get a grip on reality: http://en.wikipedia.org/wiki/List_of_United_States_Congresses
Go to the bottom of the page to “External Links.” The table called “United States Congresses (and years begun)” has the EXACT makeup of each Congress ever convened.
“The unemployed can’t afford to be
politicalatheists.”We used to live in a fairly low-income area. Many folks who officially belonged to my wife’s church congregation never showed up much on Sunday, but always had their hand out when the church distributed free goods and services.
Churches/Temples enjoy tax exempt status. They should give beyond their own congregation.
Showing up on Sunday doesn’t make you a Christian or good. It’s the life you lead.
OTOH, I have a friend who is a Sunday School Teacher, who takes from the food bank every Sunday (Trader Joes donates it). Yet, they both work, drive newer cars, and own a nice middleclass home (needs work, granted). She’s 100lbs+ overweight. She should not be eating the type of foods donated. It’s free, she tells me.
Why is a person who takes food from a program for the needy when they are not in need your friend?
“The unemployed can’t afford to be political atheists”
who’s going to “save” them…obama? perry? romney? hillary?
based on your posting history i would assume you think it’s obama…not working out for them so much.
i take it back…perpetual unemployment benefits is the answer…why didn’t anyone think of that before?
Right, something tells me that fifty years from now the poor will still vastly outnumber everyone else. Just a hunch.
“something tells me that fifty years from now the poor will still vastly outnumber everyone else.”
“You will always have the poor among you, but you will not always have me.” John 12-8
“…but you will not always have me.”
Apparently only half that prediction panned out…
Ha!
oxide
We’re living off 1/6 of our former incomes! I have no faith in any of the BS artists anymore. Follow the money. It’s bought and sold in both parties. This economy is structurally broken. Nobody has the balls to really fix it. It would be painful for Corporate America and the masses.
wash.rinse.repeat.
It’s easy to look at the gridlock and say that both parties are bought off. However, I think it’s more complex. I believe that 90% of the R’s are bought off, and about 20% of the D’s are truly bought off. This roughly matches the Senate voting records. That’s enough to block any fixes in either direction. But they aren’t all bought off.
Maybe this should be a weekend topic. What can we do, individually? It’s obvious that “government” won’t do anything.
[We can argue about WHY they won't/can't do anything, but the result is the same. ]
Who was it that said “an honest politician is one who stays bought”?
When buying and selling are controlled by legislation, the first things to be bought and sold are legislators.
~P.J. O’Rourke
oxide
I liked your post. On things we don’t agree, we can agree not to. I agree that the stinch leans more to the right, so to speak. You’re opinionated but diplomatic. I respect that.
” I believe that 90% of the R’s are bought off, and about 20% of the D’s are truly bought off.”
i “believe” different.
I believe that 90% of the R’s are bought off, and about 20% of the D’s are truly bought off.
Actually that’s not correct. 80 to 90% of republicans would vote the way they have been voting because of their ideology. No reason to buy them off. It’s the democrats who are truly bought off who say one thing but do exactly opposite. And that includes Obama.
Time for another presidential mottocade to a CEO this weekend…..
i “believe” it’s about equal.
just because you agree/support/side with the one doing the buying…doesn’t make it more or less justified.
“i “believe” it’s about equal.”
I agree with michael. Corporations are buying access and they do it where they will get the most bang for their buck. They watch the polls and side with the leader. Where the races are fairly even, they play both sides. It’s a classic hedge strategy.
No. There IS A HUGE difference between the parties:
http://www.reuters.com/article/idUSTRE68R40I20100928
Republicans block ending offshore jobs tax breaks | Reuters
Almost-free money, yet nobody wants to borrow any… go figure!
Press Release - Weekly Application Survey
Title: Mortgage Applications Decrease in Latest MBA Weekly Survey
Source: MBA
Date: 9/7/2011
WASHINGTON, D.C. (September 7, 2011) — Mortgage applications decreased 4.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending September 2, 2011.
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5.3 percent compared with the previous week. The Refinance Index decreased 6.3 percent from the previous week. The seasonally adjusted Purchase Index increased 0.2 percent from one week earlier. The unadjusted Purchase Index decreased 2.1 percent compared with the previous week and was 13.5 percent lower than the same week one year ago.
“Heading into the Labor Day weekend, the 30-year rate was at its second lowest level in the history of our survey (the low point was reached last October), and the 15-year rate marked a new low in our survey,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Despite these rates however, refinance application volume fell for the third straight week, and is more than 35 percent below levels at this time last year. Purchase application volume remains relatively flat at extremely low levels, close to lows last seen in 1996.”
…
“on a seasonally adjusted basis from one week earlier”
Haha! Consecutive week’s data adjusted for seasonality.
There are lots of people that would want to borrow, but they are already tapped out, have low to no income, and/or have already trashed their credit.
Yeah, rates are cheap, but standards are a lot tighter.
BK ad last night:
Myth: 10 years to buying a home.
Attorney said: 24 months to buy a home again.
Myth: Bk trashes your credit for years
Attorney said: You can wait a # of months and buy a car or get a cc.
There was another bullet point. Can any legal eagles here confirm this?
We’re solid with no debt. I was just wondering if this is true. If it is, I’m going over to the other side. (tongue-in-cheek)
You can go to the other side easy. You just can’t take much with you.
Blue-
I’m in no rush. My mortality is hitting me hard this year. I can lie to myself all I want, but I’m getting old!
I am getting there too. The best bankruptcy is a well planned bankruptcy. That said, why can’t you make payments on the mortality patches on a 100 year plan? The continued availability of patches might hang in the balance.
I can’t confirm or deny something like that. Whether you can get a car loan or a credit card are decisions made by private companies. It isn’t a legal thing.
But as a warning, you might not like the interest rates you are offered.
Polly -
Thank you for the reply.
With $ for a house (paying cash in So Ca), a stellar 825 FICO, no debt, and sound sleeping, I would only do a Medical BK.
I’m old school. Job loss & medical should be the triggers for personal bk. Living large shouldn’t be (in my way of thinking).
Awaiting, I rather wondered about this. If you have a substantial amount to pay cash, why buy in SoCal? (family reasons?) You sound like a prime candidate for Oil-City-Plan. You could buy something for under $100K in the sticks, find a McJob,* and have several hundred thousand cash cushion.
Something like this:
http://www.zillow.com/homedetails/205-Barbe-Ct-Arbuckle-CA-95912/18561279_zpid/#{scid=hdp-site-map-list-address}
1997 3/2 on 0.3 acres in Arbuckle, which is up Route 5 from San Fran. $92K. Forgive me, i don’t know CA at all, this was just a first glance.
————-
*If you’re making 1/6 of your previous income, the pay from a McJob can’t be much lower.
Sept. 7, 2011, 1:11 p.m. EDT
Bernanke gets another shot to lay out QE3 options
By Steve Goldstein, MarketWatch
WASHINGTON (MarketWatch) — With an economy barely growing and fiscal policy constrained by gridlock, Federal Reserve Chairman Ben Bernanke will get an opportunity Thursday in Minnesota to lay out what the U.S. central bank can do to revive the economy.
Of course, Bernanke had that opportunity just two weeks ago at an even-higher-profile event, the Fed’s annual gathering in Jackson Hole, and basically ignored it. He revealed for the first time that the upcoming September meeting will be for two days rather than one, and said that the Fed “is prepared to employ its tools as appropriate.”
…
Bernanke. There’s one Fed tool I’d like to see unemployed.
Once upon a time in America, not so long ago, whole months - even years - passed with little more than a passing murmur from the Chairman of the Federal Reserve. Heck, most people didn’t even know his name, or care to.
The degree to which the financial world has woven itself into the fabric of American life is simply astounding. Any lines that may have existed between finance and culture have all been wiped away.
This is an easy one.
1. Get rid of pesky expensive employees —> stock price goes up. Suddenly your job depends on the DOW.
2. Convince that sheeple that they are the masters of their own 401K universe. Suddenly your retirement depends on the DOW.
CAFRs.
Your local government, non-profs and organizations are HEAVILY invested in the financial markets.
“Conflict of interest” would be putting it mildly.
Why the Stimulus Failed New research on what actually happened to a trillion dollars.
WSJ | SEPTEMBER 8, 2011
Even zero jobs growth in August doesn’t seem to have disrupted President Obama’s faith in the economic policies of his first three years, so one theme we’ll be listening for in tonight’s speech is how he explains the current moment. Why did his first jobs plan—the $825 billion stimulus—so quickly result in the need for another jobs plan?
For readers who want to know, an important account is offered in a pair of new Mercatus Center working papers by the George Mason economists Garett Jones and Daniel Rothschild, who did field research on what they call the supply side of the stimulus.
The Keynesian theory was that a burst of new government spending would take up some of the slack in aggregate consumer demand. This was justified in 2008, again in 2009, and is still defended now based not on real-world observation but on abstract macroeconomic models that depend on the assumptions of the authors. The Congressional Budget Office’s quarterly studies—often cited to claim the stimulus created tens of thousands of new jobs—are based on such a model. By informative contrast, Messrs. Jones and Rothschild interviewed actual people who received stimulus dollars and asked how they spent the money.
In the first paper, the authors survey 85 different businesses, nonprofits and local governments across the country and conclude that “As is often the case when economic models are transferred from the blackboard to actual public policy, there was a gap between theory and practice.”
One of the major patterns Messrs. Jones and Rothschild uncovered was that the top-down stimulus was poorly targeted. In one redolent example, a federal contractor said he was told to use smaller, nonstandard tiles that are harder and more expensive to install in order to increase the cost of the project. That way, the government could claim the money was moving out the door faster. The famous Milton Friedman line about government ordering people to dig with spoons to employ more people comes to mind.
Stiumulus might work if it is invested instead of spend on consumption and nonsense. Some of the stuff build under FDR is still in use today. TVA, various infrastructure projects, etc.
If the money is spend on consumption or bridges to nowhere then it will do little to nothing other than increasing the debt. In fact it will hurt the economy long term due to the interest payments and zero long term economic gain.
If we had for example invested the money into long term energy security (electric rails, wind, solar, public transportation, energy efficiency, power grid, etc.) then we could reduce our energy imports (= cut funding to terrorists, trade deficit), needed less military to secure foreign energy sources (= bunch of money saved) and could instead pay for long term jobs to upgrade and maintain what was put in place.
You can’t spend your way to prosperity with money you do not have
Keynesian Theory is crap and does not work
Look at Japan - 20 YEARS of spending on infrastructure. They are still mired in a recession, high unemployment and have the world’s HIGHEST debt/GDP ratio. They are about to hit a wall.
No thanks.
ALL need to live within their means. You, I, local government, state government and federal government.
So the wealthy should pay their taxes at closer to the average rates of modern history in order to help us live within our means?
You can have the 1955 tax code (the whole thing, not just the top rates) if I can have 1955 government spending as a percent of GDP.
Deal??
“Deal??”
Sure! As long as we institute a national single-payer health care coverage system to get there. That’s where all the money goes. Fix that, and tax the rich at the average rate of modern American history, and it’s all good. We can be a first-world country again.
Very different demographics in 1955. Much fewer old people, no globalization, energy demands etc.. Can’t compare to today.
It’s not just the 1955 tax code. It’s also pre-outsource (no place to outsource TO) and an economic structure which allowed mom to stay at home with the kids.
I remember in 2000-2001, there were quite a few news stories where parents ran the numbers and concluded that it would make no difference finanially if mom (or sometimes dad) quit and stayed home. It was catching on, until the housing bubble blew up. Suddenly you needed two incomes to afford a house again, and families were put back on the hamster wheel.
Going back to a one-income household structure would almost immediately solve the unemployment problem.
Yes, it’s a fair point that 1955 is not like today. Which is why it’s inane to assume that raising the top tax rate to 1955 levels will produce 1955 levels of prosperity.
I’m fine with the bringing back the pre-Reagan top tax rates as long as we bring back income tax rates across -all- income levels, and bring back the pre-Reagan deductions too.
How about we just stop giving tax breaks to companies for offshoring our jobs?
“I’m fine with the bringing back the pre-Reagan top tax rates as long as we bring back income tax rates across -all- income levels, and bring back the pre-Reagan deductions too.”
Tax lawyer/accountant full employment act of 2012?
“ALL need to live within their means. You, I, local government, state government and federal government.”
Which is impossible with a massive trade imbalance.
All goods and services bought must equal all goods and services sold.
B1+B2 = S1+S2
If B1 S2 (someone else MUST be buying more than they sell).
We can’t live within out means if we’re continuing to buy $500B a year more from out trading partners than they buy from us.
If you have a rainy day fund, then you are a practicing Keynesian. The theory is not crap, just government interpretation and implementation of it.
To go a step further, Keynesian is economic theory is the only approach that government could rationaly take.
1. Constant surplusses make no sense.
2. Constant deficits will ultimately lead to disaster; we’re just waiting to see which kind of disaster.
3. Trying to budget exactly according to revenue won’t work since government can’t predict what the economy will do. Any success in cutting spending before or during economic downturns will magnify the recession.
4. Budgeting below anticipated revenues with the intent of building reserves makes sense. When a recession happens govt can maintain or strategically increase spending by using reserves. Strategic spending could be an increased rate of infrastructure work or replacing vehicles/equipment or the like.
The basic problem with Keynesian policies is that government will not stop deficit spending except under black-swan-esque exceptional circumstances
Clinton and the Republican congress did manage to come up with a surplus. As a result, I believe, of unexpected tax receipts due to a tech bubble.
Government may reduce deficit spending - maybe - either just before a historic economic collapse, or perhaps during the first phases of it.
Short of these two extreme scenarios, government has SHOWN, not speculation, that it will not stop deficit spending.
This data point needs to be incorporated into modern economic thought.
Didn’t we “loan” $400 million to a solar company in Cali that just went bankrupt??
More like $535 million, if I recall.
I think we loaned $70 billion to AIG, and what are we getting for that?
I’d rather take the chance on 175 solar companies.
Stiumulus might work if it is invested instead of spend on consumption and nonsense. Some of the stuff build under FDR is still in use today. TVA, various infrastructure projects, etc.
Agreed. Here in Tucson, there are WPA-built sidewalks that are every bit as good as the ones built since then.
Likewise, the road and bridges in the Sabino Canyon Recreation Area. The CCC boys built those, and they’re holding up just fine.
No doubt because they spent a little more on quality materials, unlike cost obsessed big biz which these days only seems capable of proucing garbage.
an important account is offered in a pair of new Mercatus Center working papers
Wait, “Mercatus center?” Oh boy, ANOTHER THINK TANK! You all know the drill by now… .
———-
“The Mercatus Center was founded and is funded by the Koch Family Foundations. According to financial records, the Koch family has contributed more than thirty million dollars to George Mason, much of which has gone to the Mercatus Center, a nonprofit organization. ” [sourcewatch]
———-
“After the providing of several millions dollars to the George Mason University from the Koch Family it moved to George Mason in the mid-1980s before assuming its current name in 1999.[2] The Mercatus Center is entirely funded through donations, including from companies like Koch Industries[3] and ExxonMobil[4], individual donors and foundations.” [wiki]
———-
Do I even NEED to comment here?
The KochTeaPuss is everywhere!
And who owns the Wall Street journal, where the article appeared?
The phone-tapping, email-snatching, police- and politician-bribing Fox.
I was watching a NOVA about human ancestors the other day on PBS. One of the “this program is made possible by” people was David Koch. Anyone know if that is one of the famous brothers?
It is indeed. His name is also all over the Mammal Hall in the Natural History Museum on the Mall (complete with evolution movie).
I gotta wonder how much he gave them. Was it more or less than the $30 million he gave to George Mason U, mostly to the Mercatus Center?
This is from the acknowledgements page of the exhibit that was named for him. No numbers included. Smithsonian might have a place where they thank donors in various ranges. I’ll see if I can find anything another time:
Acknowledgements
The David H. Koch Hall of Human Origins and the Human Origins Initiative of the Smithsonian Institution’s National Museum of Natural History are made possible through the generous support of the following individuals and organizations:
David H. Koch
Peter Buck
The National Science Foundation
The Ruth and Vernon Taylor Foundation, Montana
Mr. and Mrs. Jeffery Meyer
Charles E. Dern
Joan and Robert Donner
take up some of the slack in aggregate consumer demand.
Wait, I thought demand wasn’t the problem. I thought that the “high corporate tax rates” and “overregulation” were the problem. Why on earth would they need to increase demand? Isn’t trickle-down supposed to solve all this?
“Why did his first jobs plan—the $825 billion stimulus—so quickly result in the need for another jobs plan? ”
Becuase it was a TWO YEAR plan, implimented in spring 2009 and ending in spring 2011!
Duh!
Market Pulse Archives
Sept. 8, 2011, 3:41 a.m. EDT
Coordinated easing now more likely: Morgan Stanley
By William L. Watts
FRANKFURT (MarketWatch) — A round of coordinated rate cuts and other measures to ease monetary policy by global central banks is growing increasingly likely with the United States and euro-zone governments unlikely to provide a fiscal response to economic weakness, economists at Morgan Stanley said in a research note issued late Wednesday. “The negative feedback loop between weak growth and soggy asset markets makes a coordinated monetary policy easing move more likely — perhaps as early as the G7 meeting” of finance ministers and central bankers this weekend in Marseille, France, wrote economists Manoj Pradhan and Joachim Fels. “The Fed, the [European Central Bank, the Bank of Japan and the Bank of England] could all participate in a coordinated move with a mix of rate cuts and quantitative easing,” they wrote.
Again?
Bernanke better not go to Texas!
Turns out BOA independently did mortgage deals that would have made Mozilo blush. Who’d've thunk?
This bank would be so done, if only it weren’t on the systemically-risky too-big-to-fail list.
Sept. 7, 2011, 9:50 a.m. EDT
Feds say Bank of America worse than Countrywide
Commentary: Federal lawsuit says even Mozilo was shocked
…
You’ve heard the allegations before: These banks sold billions worth of mortgage-backed securities while lying about the thousands of funny little mortgages behind them.
Since Bank of America bought Countrywide, it will indeed pay for things Countrywide did. But it will pay for things it did, too.
The government is suing Bank of America for Countrywide, and it is suing Bank of America, separately, for things it did without Countrywide.
Bank of America issued a statement in response to the lawsuits, essentially saying Fannie and Freddie knew the risks of the securities they bought, and that the losses are due to a downturn in the housing market. But the United States of America would rather blame the Bank of America.
“BOA was one of the most aggressive competitors in the mortgage-origination market,” the government’s lawsuit reads.
And that’s where it hints that Bank of America was even worse than Countrywide:
“Even the top executives of Countrywide Financial Corp., the notorious mortgage lender …complained to each other…that BOA’s appetite for risky products was greater than that of Countrywide,” the lawsuit reads.
“In a June 13, 2005, email, Countrywide CEO Angelo Mozilo wrote to President and COO David Sambol: “This is the third deal in the last 10 days that BOA has offered that is impossible to beat. In fact, the other two were substantially worse than this one. It appears to me that BOA is making an aggressive move into mortgages once again.’”
Imagine that. Bank of America doing mortgage deals that even Mozilo found shocking.
…
“Bank of America issued a statement in response to the lawsuits, essentially saying Fannie and Freddie knew the risks of the securities they bought, and that the losses are due to a downturn in the housing market.”
A downturn caused by the lending practices of companies like BofA and Countrywide.
I’ve long wondered if BofA was forced to buy Countrywide in return for TARP funds. No longer. It looks more like they wanted to buy Countrywide. Clearly they weren’t concerned about risking lending practices.
“Fannie and Freddie knew the risks ”
How? From the strawberry picker’s “stated” income?
Since Bank of America bought Countrywide, it will indeed pay for things Countrywide did. But it will pay for things it did, too.
Good! Couldn’t happen to a nicer bank.
“The trade gap totaled $44.8 billion, ”
And that is half of the root cause of all of our troubles!!
Attack that and the growing wealth disparity, everything else will fix itself.
Bring back jobs, raise wages…. housing fixes itself, debt fixes itself, entitlements fix themselves…
fixation
Fixation on the real problem?
YEP!!!
The magician keeps waving the scarf in his right had and saying abracadabra, but I’m watching his left hand as it slips into his bocket depositing the egg and palming the dove.
Trade defuicits do not persist long-term. They result in excess debt, which can not be paid back unless the trade deficit reverses. Excess debt that can’t be paid back collapses into depression.
Let’s see… in 1980 we were at post Civil War lows total debt/GDP. 2008 we were at all time high total debt/gdp.
Hmmm… economic principles say we must be running up massive debt, and the data confirms it.
Economic principle says we must reverse the trade imbalances or plung into depression. We’re not working to reverse the trade imbalances, and sure enough,we remain on the verge of collapse into depression.
Amazing when economic principles align perfectly with REALITY!
But no one wants to deal with reality. They just want to restart the debt engine. Sorry, but it is kaput.
Fixation? you bet! Fixation on the real root cause of our troubles rather than allowing myself to be distracted by the tricks and gimicks of the lying politicians and burning, raping and pillaging Wall Street banksters.
Trade deficit! Wealth disparity!
Fix those and everything else fixes themselves.
“Trade deficit! Wealth disparity!”
No doubt.
So what lies ahead?
My take: We will be importing less crap. The Age of Credit is ending. Wealth disparity has a long way to run.
The US holds 8133 tons or 261.5 ounces of gold. At $1900/ounce that’s $497 billion or about 11 month worth of trade deficit.
The old crook Nixon must have figured that out and close the gold window. Ever since foreigners are accepting our paper for their goods. This has been going on for over 40 years now. I doubt it’ll go on for another 40 years but then again, I would have never thought it would last that long.
Nixon was a piker. Thank JFK.
Sept. 8, 2011, 8:37 a.m. EDT
Weekly U.S. jobless claims rise to 414,000
Data not seen affected by hurricane in Northeast
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — Applications for unemployment compensation rose slightly last week, indicating little change in a weak U.S. jobs market in which net hiring remains near a standstill.
Jobless claims rose to 414,000 from 412,000, the Labor Department said Thursday. Economists surveyed by MarketWatch forecast claims to rise to a seasonally adjusted 411,000 in the week ended Sept. 3.
Initial claims from two weeks ago were revised up from an original reading of 409,000.
…
I have a question for the economics brain trust here on the HBB: There hundreds of billions (possibly trillions) of dollars in low-yielding investments held by seniors and retirees. If they are unable to get any appreciable yield on this money in the classic spots such as CD’s, MMA’s, etc then where is the money going? If it is being spent is it even registering in the economy or are these folks jumping into stocks/bonds and losing their shirts?
I believe the low rates are having a negative effect on the economy. Two large groups are hurting; the seniors (who depend on interest income) and the paycheck-to-paycheck crowd (who are spending too much for food and energy).
“I believe the low rates are having a negative effect on the economy.”
but it’s saving the banks from insolvency.
The banks are a larger part of the economy than the eldery.
Theoretically the low rates were meant to juice the economy like so much Mad Dog 20/20 but that hasn’t worked in a long time.
That’s the official story, but the one that makes sense is that large corporations get to borrow at very low rates, at the expense of people who used to depend on interest earnings on their money to pay living expenses.
Theoretically the low rates were meant to juice the economy like so much Mad Dog 20/20 but that hasn’t worked in a long time.
There are a couple of reasons of pretty obvious reasons for that. Interest rates were already pretty low before the recession started, so the Fed couldn’t push them down much.
The other effect achieved by lowering interest rates in past recession has been to increase housing starts. Of course, that doesn’t work now because there are so many empty houses.
I honestly haven’t seen that seniors are hurting, at least not vis a vis other age groups. They still control the most money, have less responsiblities (kids are grown up, etc) and more financial control. Their medical costs are managed by the available federal programs. Also plenty still have pensions and the variable income investments are just icing, not the cake.
Compare that with reports that show 25%+ unemployment for 17-25 year olds. Even WalMart greeters around here are young, not old.
Maybe in a few more years, they will need to adjust their holdings, but for now, they are fine.
They’re not moving their money anywhere if they don’t have to.
As you say, “to where?” There is NOTHING out there that even keeps up with inflation.
Those prattling on about politics, if they have been alive long enough and have good memories, should take a look at that total credit market debt as a share of GDP chart, staring in 1952.
Ever since Carter, when total debt has been going up (lots of free money around), politicians and in particular the President have been popular, and when total debt has been flat or falling (George HW Bush, early Clinton), the President has been unpopular. It is like people are bacteria responding to stimuli.
The debt bomb reached it’s peak the very quarter President Obama took office. We have been painfully delveraging ever since, despite the rise in federal debt.
I blame the politicians who sold out our nation’s future, not President Obama. I only blame President Obama for this — he doesn’t understand that this is the collapse of a 30-year debt driven economic structure, not just a recession.
President Obama did understand it in his last job. It’s difficult to get people to understand what they are paid to not understand.
As for blame, I think what was going on with the Federal debt just mirrored what was goin on with personal debt. A manic country gets a manic government.
President Obama had a job?
OK, I’ve heard this one several times. Is there some GOP email forward going around that “Obama never had a real job?”
OK, I’ve heard this one several times. Is there some GOP email forward going around that “Obama never had a real job?”
Well - stop tap dancing and TELL US WHAT IS WAS.
Community organizor?
Assistant eidtor of the Law Review?
State senator?
Community organizing is a job, whether you think it is or not.
Law lecturer at U Chicago is a job, lesson plans and grading.
Civil rights attorney… wonder what kind of caseload he had.
Editing is a job, but wasn’t that while he was a student?
Studying for the bar is a job in itself.
If all else fails, Obama is an author and speechwriter — also a job.
Now, if you’re asking the working-class question “does he have a REAL job” like flipping burgers, or stocking boxes, or robosigning foreclosures, or perusing the tax code for loopholes, or killing Iraqis, well, then I guess you win.
The reason Obama didn’t have a job is because he is an entrepreneur. He wrote books and ran for public office rather than working for a corporation or in a public bureaucracy.
Is that bad?
The reason Obama didn’t have a job is because he is an entrepreneur.
Exactly. What he did was write two books and do very well on the sales of those books and spinoff products like the audio versions.
Yes, having a well-known name and a top literary agency certainly helped him, but there’s the other factor. That is the ability to make the money and keep making it.
The entertainment and creative arts worlds are full of people who made it big at one time, and well, then it was all gone. Think the “one-hit wonders” vs. perennial sellers like the Beatles. Of course, an argument could be made that, right before the band broke up, Apple Records was a badly mismanaged free-for-all, but steps were taken to fix that. Read Chris O’Dell’s book, Miss O’Dell, if you want the details.
A lot of other entertainers/creators find themselves in trouble after they signed contracts in which others got most of the money and they didn’t get much, if anything.
Jason Wilber’s song, “Pay Bo Diddley” speaks to this problem. It’s about how Bo was still owed money by Chess Records lo these many years later.
Since Obama is a lawyer, it’s a pretty fair bet that he knows how to work a publishing contract in his favor.
So, it’s not enough to be an entertainer/creator, you also have to be savvy enough to manage your career. For more on this topic, read David Cutler’s Savvy Musician.
Uh, US Senator? Did you forget that he wasn’t right out of the Cracker Jack box?
That’s not a job. Its a position of power and corruption.
WT Economist, Thank you.
It’s been decades of mistakes, and backroom deals piled upon administrations of both parties.
Political bickering and hopium isn’t the answer. Amen.
Not just administrations. Businesses. State and local governments. And hundreds of millions of Americans. It was a social tsunami.
Like many who post here, I lived modestly — but no more modestly than in my childhood.
Avoided debt, except for student loans and a home mortgage I paid off as soon as possible.
And saved.
Virtually no one else did the same. People have looked at my wife and I over the years as nuts. No cable? One old car? One room AC that is seldom used? Not trading up to a bigger house? Etc.
I was angry about politics too. Why were the leaders of my state (New York) and country selling out our collective future. I even ran against the local state legislator, losing nearly a year of work income as a result. Now I see those sleazbags really were the men of the people after all!
WT Economist
I read your reply. Well said. We’ve done many of the same things, and I am livid that our house money is earning a .25 of a percent. We sold to find a sensible “tow tag” home, and feel punished for planning ahead. We’ve been stuck in a dump waiting out these insane prices in So Ca.
While these boobs try to save this titanic (ain’t gonna happen), people like us are screwed.
toe?
“I only blame President Obama for this — he doesn’t understand that this is the collapse of a 30-year debt driven economic structure, not just a recession.”
That’s an interesting comment to come from an economist, which Obama is not. He did what any reasonable person of means who lacked training in economics would do in similar circumstances: Asked around and hired the top experts in the field to advise him.
And he followed that advice — the typical response to a typical recession.
There are a few who counseled otherwise, however. Krugman argued for a 1930s style expansion of government, forgetting that back then the U.S. was a net creditor nation and now it is a debtor. Rogoff and Reinhardt said the measures taken couldn’t offset the deveraging.
The question is what is the right response? I’m beginning to think it is to allow the inevitable Great Depression to occur, and only then when contractural privileges have been wiped out by mass bankruptcy, intervene to restart the economy. In other words Hoover (Andrew Mellon — liquidate, liquidate, liquidate) followed by Roosevelt, on purpose.
I blame Obama because he thinks the answer to the problem of too much debt is more debt. The combined private and public debt as a percentage of GDP is not dropping so we are not healing. Stimulus just leads to more money going oversees. Oil was down to $35 a barrel in December 2008. Had we not stimulated the economy it would have stayed down longer and the nation would have had a stimulus based on lower prices which does not add to our debt or trade inbalance. Right now Brent is selling for over $116 a barrel only about $30 less than when unemployment in this country was about half of what it is now. We need to stop sending so much money overseas and that means no stimulus and energy policies that really cut our dependence on OPEC, sorry the Volt car and solar panels made in China are the not the answer. NGVs and coal conversion to oil are the answer, with wind in some areas. Also, since China is polluting the entire world with its coal burning since it does not use pollution controls even when they are built into the plants, I have no problem with a 30% environmental tariff on their exports.
“energy policies that really cut our dependence on OPEC, ”
Like what?
Read the post above, I named two. But I will expand on how we cut dependency on OPEC: by using our abundant NG reserves, coal reserves and yes oil reserves off our coasts and in Alaska and new generation nuclear. There should be under strict environmental regulations and the royalties should be higher in environmental sensitive areas. Yes they are finite and we should continue research on the alternatives but there will never be a better time to start producing our energy reserves. By the time they will come on line we will be in the worse period of peak oil.
Ah. sorry, it was buried in your paragraph, NGV and coal. Only if you want to destroy the environment. Then again, maybe it would be better to get the soldiers out of the Middle East and use those resources to make sure that the coal is clean
and that NGV doesn’t destroy the environment, and I like my Appalacian Mountains thank you very much. However, I’m still in favor of electric, at least as the source of power in the end-consumer machine (car). Then you can use the coal and NGV in the power plant where it’s easier to contain the pollution, and you can switchover to wind if you want.
Exactly.
But, why the debt in the first place?
Hint: Debt is required to fuel trade imbalances.
And debt is required for the whole world to sell more to the bottom 90% in the U.S. even though they are paid less.
Without debt, free trade would not have produced the trade imbalances we have, or the inequality of income we have.
Back from 9 days in Kings Canyon in a cabin with old friends. No tv, cell phone, etc. Just walks out in nature, native indian rock blessing, and watching the women work on quilting. Came back refreshed.
salinasron - Welcome back. Doesn’t just “being” put our lives in perspective!
Now, get back to stressing, Big Pharma needs your money. LOL
I am ready to get back to that quiet solitude. It is like traveling between two dimensions.
Did meet mama bear and little bear on the trail heading my way (75 yards) and decided that a retreat on my part was the way to go.
It was also refreshing to know that @ 71yrs that I could still hike and climb with ease at 8500 ft elevation.
ron
71 and fit, good for you. I bet mamma bear got your adrenaline flowing.
The cub was too playful and I was afraid would want to come and investigate. Mama bear was too big and could even out run me in my youth when I ran track. And I vividly remember a fellow HBBer who had a nasty encounter with one. Any one of the previous statements was enough to trigger a hasty retreat.
Sweet!
for you ron da man:
http://www.youtube.com/watch?v=l1kAPiz_8Yo
Another Fed President Signals Recession
Posted: September 8, 2011 at 6:35 am
One by one, Federal Reserve regional presidents have begun to admit that another recession has started, or at least is on the horizon. Some have made suggestions about what can be done, but none of these ideas seems compelling.
Charles Evans, the chief of the Chicago Fed, said in a speech recently that, “In the summer of 2009, the U.S. economy began to emerge from its deepest recession since the 1930s. But today, two years later, conditions still aren’t much different from an economy actually in recession.”
That is an odd way to frame the issue. Either the economy is in a recession or it is not.
Evans is among the members of the Fed who believe the agency should take “strong action.” This could mean the purchase of more Treasury debt in the open market. It is hard to see what the central bank can do beyond that. Fed chairman Ben Bernanke insists that it falls to Washington, and new legislation, to fix the economic growth problem. Many politicians believe the Fed must act first, and perhaps alone.
…
Obama’s job creation plan: New Deal or no deal?
Only a bold public works programme can tackle unemployment, but it won’t happen if placating Republicans is the goal
Michael Paarlberg
guardian.co.uk, Thursday 8 September 2011 15.00 BST
President Obama is good at making speeches, though he doesn’t always appear to enjoy it. It sometimes takes a crisis – whether to the country or to his political career – to push him to address what everyone else is already talking about.
Currently, there is no crisis causing more pain for more Americans than joblessness. And yet, you wouldn’t know it from the discourse in Washington. Over the past few months, lawmakers have been far more concerned with wrangling over crises that range from the decidedly non-urgent (the S&P downgrade), to the blatantly manufactured (the debt ceiling), than with the fact that 14 million Americans are out of work.
Some sense of urgency is understandably lost when the job market has been so bad for so long. Still, it’s disheartening that the event that finally stirred Obama to talk about jobs was not an outpouring of concern by elected officials, but a federal holiday honouring workers.
So, this week, Obama unveils his much-anticipated plan to ease joblessness. It comes on the heels of a disastrous report from the bureau of labour statistics, showing net job creation in August to be zero. And this figure is actually generous. As financial analyst John Mauldin points out:
With circumstances so dire, and interest rates set as low as they can go, the only solution left is massive spending to boost demand. Everyone from labour leaders to the chamber of commerce is calling for big, bold action: hundreds of billions for infrastructure investment, job training programs and a New Deal-like civilian jobs corps. As for what we’ll get instead, all signs are pointing to feeble half-measures.
…
IMO, we’ve done the big spending and now are beginning to deal with the consequences. Hair of the dog isn’t a healthy remedy, but it’s all the junkie understands.
“IMO, we’ve done the big spending ”
When? Careful, the instinctive answer may not be the correct answer.
Sounds like a trick question! The thing that is obvious is that we are there. I am contemplating the consequences a lot more than the forensics.
My incentive in this is to chisel out a personal strategy for destitution avoidance on the threshold of retirement.
You wouldn’t by any chance be referring to the fact that the stimulus barely offset the reduced spending by state and local governments that had start to pull back because their income from taxes went down as the recession set in, are you, Oxide? That if you add up all government spending there wasn’t any meaningful increase in spending at all?
Darn those facts.
No meaningful increase in government spending? Of greater importance was the meaningful increase in the gap between revenues and spending. Darn facts indeed!
And of utmost importance is the unwillingness to raise revenue(or save revenue from high growth years) in order to balance the budget.
facts….. tsk tsk.
It was left to the individual to do this “saving”. Now the savings are being called in.
No silly…. Govt.
Not that complex! I was referring back to about 1980, when the someone ran up the credit a little quicker than usual.
Obama wants a plan that he knows the Republicans will vote against,
so he can blame the lack of “jobs” on them as if he had nothing to do with the situation.
I am pretty sure you do not know what he is thinking.
Obama acts like he has had nothing to do with any of this.
I’m not watching him that close, but I think he acts like he’ll have nothing to do with resolving “any of this”.
Supposed to be a speech tonight, so we’ll see what comes of his recent reclusive thoughtfulness.
Yeah… That’s why he’s going to propose so many of the things Republicans have been asking for.
Examples please?
“Extensions of payroll tax cuts”
We all know the Republicans are against any tax increase, and as they made clear during the possible expiration of the Bush tax cuts, cuts expiring ARE tax increases.
“Tax breaks for businesses
Obama is likely to propose extending the payroll tax cut to employers as a means of boosting hiring.”
Another idea Republicans have been requesting.
Well woopde-friggin do what is that really going to accomplish
when he will also propose some other tax increase that the
net effect will be more job losses and more pain especially on
the people that create the jobs.
For this country’s growing number of non-employer businesses, a payroll tax cut won’t mean fiddly. What we most need are:
1. More customers
2. Health insurance that doesn’t feel like an intrusive procedure. Especially in the paying-for-it.
3. See #1
Blah blah blah…. here’s the real problem:
Republicans block ending offshore jobs tax breaks | Reuters
http://www.reuters.com/article/idUSTRE68R40I20100928
Obama, Hoffa Speeches Irk GOP
September 6, 2011 RSS Feed Print
Republican House and Senate leaders have all but given up hope of working out a jobs deal with President Obama in light of his and Teamsters’ President James Hoffa’s Labor Day attack on the GOP.
“It’s the official beginning of campaign season. You can always count on it being kicked off by an intemperate screed from a union leader pledging their undying partisan support,” said a top Republican official after Hoffa said of the conservatives: “President Obama, this is your army. We are ready to march. Let’s take these son of bitches out and give America back to an America where we belong.”
…
Hoffa to Obama on National TV: “President Obama, this is your army.”
BoA exec to Perry in smoke filled room: “We’ll help you out.”
And these are different how?
Obama, Hoffa Speeches Irk GOP
September 6, 2011 RSS Feed Print
So the GOP has a case of hurt fee-fees? Awwww, poor Republicans.
Guys, it’s politics. A rough sport. And remember, you GOP-ers sure know how to play rough and tumble too.
With regards from Slim, who hasn’t been part of either major party since 1992. (What should I do for my 20th anniversary next year?)
Nobody plays the victim card like conservatives. Nobody.
No, its you flaming liberals that have completely gone off your
rocker since the Nov election. All you have is venom
spouting from your mouths. Hey get over it, your party lost
big time.
NOBODY.
Funny how its the “conservatives” here who are calling people “goons” and “thugs”.
…then rail about ad hominem attacks.
Not just victims, but effing hypocrites as well.
And our troll posing as an MD keeps running from his own Obama Derangement Syndrome. MD’s are suppose to heal themselves I thought.
“…troll posing as an MD…”
Probably good old Eddie…
From my perspective evildocs probably has a good 40+ IQ points over Eddie.
Could anyone who understands the benefits of transferring billions of dollars from MBS investors to current homeowners, kindly enlighten the clueless (like me)?
CBO Report: Massive Refi Program Will Cost Investors Billions
in News > Mortgage Servicing
by MortgageOrb.com on Thursday 08 September 2011
A potential initiative to refinance millions of residential mortgages would create billions of dollars in losses for federal and private investors, according to a new paper released by the nonpartisan Congressional Budget Office (CBO).
The CBO analyzed a program that would enable 2.9 million mortgages to undergo refinancing and determined that such a program would result “in 111,000 fewer defaults.” The government-sponsored enterprises (GSEs) and the Federal Housing Administration would receive estimated savings of $3.9 billion on their credit guarantee exposure, the CBO adds.
However, the CBO warned that this potential refinancing would not produce savings for either federal investors or private investors in mortgage-backed securities (MBS). Federal investors - including the GSEs, Federal Reserve and Department of the Treasury - would “experience an estimated fair-value loss of $4.5 billion…[while] non-federal investors would experience an estimated fair-value loss of $13 billion to $15 billion.” The CBO identifies non-federal investors as holding approximately 65% of the outstanding MBS included in its analysis.
The CBO notes that this refinancing initiative would not impact the wider economy or the current housing market environment.
“Because the estimated gains and losses are small relative to the size of the housing market, the mortgage market and the overall economy, the effects on those markets and the economy would be small as well,” the CBO says. “Because this program is directed toward current homeowners, it would do little to alleviate the tighter underwriting standards and increased credit pricing for purchase loans. In addition, it would not create much demand for homes, because all of its participants would already have at least one property.”
The full CBO report is online.
Who do you think “MBS investors” are?
The are pensions, widows, orphans, seniors, insurance companies, etc.
They invested in a product expecting a certain rate of return per a signed and legal contract.
Obama want to step in and tear-up those contracts - all for the votes of the fool homeowners.
“all for the votes of the fool homeowners.”
No, no, no.
Of course, if homemoaners continue to walk, the widows and orphans ain’t getting anything.
Of course, the MBS owners have another option. Sue the crap out of everyone who represented these turds as “AAA”
Securities raters provide language in their ratings saying that they are not to be relied upon. That language is disclosed to potential purchasers in the issueing documents. I believe this disclosure makes them harmless from law suits under the securities laws and fraud statutes. Might be able to get them if you could prove they did their analysis, came up with a bad rating, and then changed it based on zero change in facts except a pay off from the issuer. Seriously, I think you would have to find that much proof to be able to go after the rating agencies. They just aren’t vulnerable to law suits except in the most dire circumstances.
“Securities raters provide language in their ratings saying that they are not to be relied upon.”
Then why the heck are their unreliable ratings required or accepted? In my business, if we used the term “the work you pay us to do can not be relied on”, we would have been gone gone gone years ago.
Because they’re part of a scam. Marble floors, mahogany desks, blue suits all add to the image of legitimacy.
But they’ve been able to loot amounts of money from the public that would make mobsters sob with envy.
Let me clarify/correct my statement.
The raters provide their opinion letters to the issuer of the securities. In the letter it states basically that their analysis is just what they think of the securities in question and it doesn’t mean that the securities can’t behave very differently than other ones with the same rating. It also states that the opinionis ONLY for the issuer and no one else can rely on it for anything ’cause they aren’t talking to *them.* It is this little bit of language that means that no one else can sue the rating agency. My guess is that the issuer might (emphasis on might) have an action if they could prove the rating agency decided the rating of the security by the “pile of docs at the top of the stairs being hit by a tennis racket and give top ratings to anyone who gets more than three steps down from where they started” and didn’t disclose that this was their method.
They get the rating because despite the language saying you can’t rely on it, purchasers do rely on the ratings believing the rating agencies are experts at assessing the risk. Mostly they are used by the sales guys at the investment banks to get people to buy the stuff. And a number of states have laws requiring certain types of entities (like insurance companies and pension funds) to keep a portion of their assets in “safe investments” that are above a certain rating.
Incorrect. We’re talking GSE MBS here.
The holders of the MBS get the interest, but Uncle Sam eats the losses on foreclosures.
The GSE MBS holders thought they were getting a free lunch. But, as the saying goes, there is no free lunch.
“The holders of the MBS get the interest, but Uncle Sam eats the losses on foreclosures.”
Not if the loan is refinanced.
We’re talking about loans where Freddie and Fannie is on the hook for the loss.
Way back in 2007, the MBS holders were on the hook for the loss. That was the condition when the “legal contract was signed”.
Then in 2007, government steps in front of the loss and says.. we must protect the MBS holders from total loss.
So, now governmetn says.. okay, we’ll make sure you get your principal back, but just not all the interest you thought you were going to get.
And here is the shocker… there was nothing in those “legal contracts” that said the debtor would not be able to refi the loan out of the MBS.
My message to the GSE MBS holders… you moved in next to the airport and NOW you complain about the plane noise.
You can’t buy something that would not exist without government meddeling, then complain about government meddeling!
“Could anyone who understands the benefits of transferring billions of dollars from MBS investors to current homeowners, kindly enlighten the clueless (like me)?”
This is GSE MBS. The MBS holders get the interest while the government eats the loss if there is a foreclosure. Of course they don’t want a refi that will reduce the interest while also decreasing the risk of foreclosure.
But, since they aren’t on the hook for the loss, it isn’t thier choice if there is a refi or not.
IF the GSE MBS holders were on the hook for the loss, they would have the say. They aren’t, so they don’t.
We are not talking about principal reductions where the MBS holders get less than face for the loan. We’re talking about a refi where the MBS holder just doesn’t get the interest. The loans in the MBS ALWAYS had the risk of the loans being refied out.
Buying a bond that would not exist without government meddeling, then complaining about government meddeling is the equivilant of buying a house next to an airport then complaining about the noise.
How government kills jobs.
How obamacare specifically kills jobs
Hope and change boys!
—————————
Medical device tax could kill 11 percent of U.S. med-tech jobs
MassDevice | September 7, 2011 | Emily Greenhalgh
An excise tax on medical devices, set to go into effect in 2013, could mean a nearly 11 percent cut for the U.S. medical technology sector and add $2.67 billion to the industry’s annual tax bill, according to a study funded by the Advanced Medical Technology Assn.
Medical device industry lobby AdvaMed says that the new 2.3 percent excise tax, slated to go into effect in 2013, will be “the last straw on the camel’s back” for medical device companies trying to thrive in the struggling American economy.
The tax puts more than 43,000 U.S. jobs at risk by all but forcing medical device companies to move production offshore to avoid higher taxes, according to the study.
“The medical device industry is a leader in innovation and in well-paying jobs,” lead author and Manhattan Institute senior fellow Diana Furchtgott-Roth said on a conference call. She argued that the government should make the US a more “job-friendly environment” instead of imposing taxes that could push companies outside its borders.
“according to a study funded by the Advanced Medical Technology Assn. ”
Research you can believe in.
“The tax puts more than 43,000 U.S. jobs at risk by all but forcing medical device companies to move production offshore to avoid higher taxes, ”
“Forced?” Yeah, by the bottomless stockholder maw.
It’s a reverse tariff. Pure genius!
Isn’t there anything in that infernal bill that is aimed at reducing the cost of medical care? Anything?
Nope, and that’s how the health insurance companies wanted it. Got a problem with it, call up Joe Lieberman and Max Baucus, not Obama.
For some reason, they do not take my calls.
new 2.3 percent excise tax
Can’t lose 2.3% in profits mow can you?
Can’t lose 2.3% in profits mow can you?
Funny how when we try to cut government spending by 2.3% (OR LESS) we get dems/liberals crying that we are going to throw grandma into the streets and strave children…
But for government to TAKE an extra 2.3% from you - just shut the f*ck up and keep working…
But is the 2.3% is used to fund more medical procedures for more people, increasing demand and revenue… yeah, stfu!
Especially when upto half your current demand already comes from government spending.
So instead of $2.67B in tax, let’s cut $200B from Medicaid and see what happens to those medical device manufacturing jobs… Or, $200B from Medicaid.
oops.. I meant $200B from Medicare… or Madicaid.
Again, what we have is people that would not have a job without government, complaining about government.
You hit the nail on the head. Once the Medicare/caid funds begin to dry up the medical devices industry will really see change.
For instance … in the US most ambulances have high end defibirilators on board, typically costing $10K or more. In other countries the ambulances have $2K AEDs instead.
Once the Medicare/caid funds begin to dry up the medical devices industry will really see change.
Right now, we have way too many “Scooter Store” schemes in the medical device arena. And I, for one, would like to see innovation in the hearing aid space similar to what the contact lens industry experienced a few decades back.
Remember when contacts were those little glass things that fell out at inopportune moments? Then came plastic contacts, contacts you could leave in place for extended periods of time, and so it goes.
Likewise, glasses. Recall that they used to only be available in a few styles and the lenses were heavy and glass. Well, that was then, this is now. You can get glasses in just about any flavor you want.
And how about pregnancy tests? Wasn’t too many years ago when you had to make a doctor’s appointment to find out if you were in a family way. These days, it’s off to the drugstore to buy the kit, then you take it home and do the piddle test yourself.
As for AEDs, has anyone else taken that training? I have. And the things are so easy to use that all you have to do is listen very carefully to the machine’s instructions and follow them.
…and wheelchairs that cost $5000.
What’s wrong with this picture?! A wheelchair is noting but a reconfigured, NO-SPEED, bicycle!
5K?! BULLCRAP!
How Republicans kill jobs, then blame Obama:
http://www.reuters.com/article/idUSTRE68R40I20100928
Its too bad the democrats still control the senate. Typical left wing
spin by the left dominated media.
Unions = Organized crime
No arrests too. Yet the tea party are terrorists and sons of b*tches.
—————–
Longshoremen storm Wash. state port, damage RR
AP – Wednesday, Sept. 7, 2011
LONGVIEW, Wash. (AP) — Hundreds of Longshoremen stormed the Port of Longview early Thursday, overpowered and held security guards, damaged railroad cars, and dumped grain that is the center of a labor dispute, said Longview Police Chief Jim Duscha.
Six guards were held hostage for a couple of hours after 500 or more Longshoremen broke down gates about 4:30 a.m. and smashed windows in the guard shack, he said.
No one was hurt, and nobody has been arrested. Most of the protesters returned to their union hall after cutting brake lines and spilling grain from car at the EGT terminal, Duscha said.
The International Longshore and Warehouse Union believes it has the right to work at the facility, but the company has hired a contractor that’s staffing a workforce of other union laborers.
Thursday’s violence was first reported by Kelso radio station KLOG.
Police from several agencies in southwest Washington, the Washington State Patrol and Burlington Northern Santa Fe responded to the violence to secure the scene that followed a demonstration Wednesday.
“We’re not surprised,” Duscha said. “A lot of the protesters were telling us this in only the start.”
One sergeant was threatened with baseball bats and retreated, Duscha said. “One officer with hundreds of Longshoremen? He used the better part of discretion.”
The train was the first grain shipment to arrive at Longview. It arrived Wednesday night after police arrested 19 demonstrators who tried to block the tracks. They were led by ILWU International President Robert McEllrath, who said they would return.
The blockade appeared to defy a federal restraining order issued last week against the union after it was accused of assaults and death threats.
Ties nicely into the article on the origin of Labor Day re Pullman and the FedGov vs. the Rail Union.
Longshoreman are the last union workers earning union type wages over $100,000.00 per year. One of the reasons NAFTA sought to have goods travel to Mexico ports and then be trucked in to the U.S. Don’t condone the violence but I do understand. If their union gets busted they will go from a low six figure salary to maybe 30 to 35 thousand a year.
An article from the NY Times from 2002:
http://www.nytimes.com/2002/10/06/weekinreview/the-nation-the-100000-longshoreman-a-union-wins-the-global-game.html?pagewanted
I am posting it because it was used as an example of winning the global game but it shows that no one’s wages are guaranteed while the race to the bottom goes on.
I too look forward to sharing the road with Mexican truck drivers.
I think you already do.
Perhaps they are not aware of the extent to which exports of agriculture goods bolster GDP and how a rising GDP would go a long way to improving the re-election chances of their perceived benefactor?
As usual, there is always more to the story……see the 9/08/2011 article from “The Stand: Your internet Newsstand in Washington State”
“EGT escalates dispute at Port of Longview”
The union has a contract for operations at the Port of Longview. EGT a Japanese/South Korean/Bunge North America consortium, (who, oh by the way, got a 100% tax exemption from the State of Washington for constructing the facility) built the facility with out of state, non-union labor, and now wants to staff it with scabs, valid contract notwithstanding.
The union has a contract for operations at the Port of Longview. EGT a Japanese/South Korean/Bunge North America consortium, (who, oh by the way, got a 100% tax exemption from the State of Washington for constructing the facility) built the facility with out of state, non-union labor, and now wants to staff it with scabs, valid contract notwithstanding.
Well - I guess that justifies kidnapping, destroying private property and threatening police.
Only to democrats/liberals does union violence and union threats of violence don’t really matter.
However, just try to pray in front of an abortion clinic…
Dr George Tiller
Shot twice by abortion opponents. Killed him the second time,
while he was ushering at church.
Add him to the list of abortion providers killed by abortion opponents, who are doing “God’s work”.
Abortion opponents whacked by abortion supporters? Body count of zero, last time I checked.
Abortion opponents whacked by abortion supporters? Body count of zero, last time I checked.
Not disputing your statements, but more pointing out I think you miss the point. It’s just not just about abortion. It’s about violence being tolerated, regardless of the issue.
“Body count of zero, last time I checked”
Pretty sure it is in the 10s of millions.
Abortion opponents whacked by abortion supporters? Body count of zero, last time I checked.
As one of my non-believing acquaintances likes to say, “Have you ever noticed that there are no atheist suicide bombers?”
“Pretty sure it is in the tens of millions.”
By your definition. That I don’t agree with.
Along with most other Americans.
That’s OK fixer, and I don’t hold it against you. Some things one must grapple with outside the sway of what the majority thinks and find their own answer. Something that most Americans do not do for themselves and cannot respect in others, IMO.
It’s about violence being tolerated, regardless of the issue.
Who it exactly, that you referring to? Who is tolerating violence?
Also, the original article pasted by 2banana specifically says, “No one was hurt”.
Who it exactly, that you referring to? Who is tolerating violence?
The unions and the folks who support them in this instance?
Also, the original article pasted by 2banana specifically says, “No one was hurt”.
I’d argue that violence doesn’t have to be directed at individuals, and when it is, doesn’t always end in casualties. Is flipping over cars and starting fires not “violence”? If I tackle you and pin you to the ground, even if I don’t break a bone or cause you to bleed, is that not a violent act?
Union violence is sanctioned mob violence by a “party”. Case cited of abortion violence is individual crime. Not same thing.
Hoffa et al. Union thugs. Nancy, Dingy Harry and Oblamer call out “right wing rhetoric”. Should look first to their own organized criminals.
Marie Antoinette didn’t get it either.
Trolls don’t care to get it.
Thus, you don’t get it.
The Tea Parties abhor violence/bad language directed at them, but don’t have a problem with it when it’s directed at their opponents.
(all the Tea-Partiers I know (and I know a bunch of them) fall into the “Bomb everyone back into the Stone Age”, along with the “Stop giving money to freeloaders, and I’ll shoot them if they try to steal from me” camps.)
I’ll shoot them if they try to steal from me”
do you not see the distinction here? It’s one thing to protect your belongings/life/liberty. Very different from advocating violence against someone who simply holds office and you disagree with them.
Unions and executives are constantly clawing at each other for parts of the company’s profit.
When the union gets too strong, you get abuses. When the executives get too strong, you get abuses. You need a balance.
“An organized minority will defeat a disorganized majority every time.” - a lesson which has repeated throughout history.
When you have organized executives (by definition), and no organized labor, you’ll see what CEO to working class pay scales like what we have today.
Unions make up less than 12% of the total workforce.
Too strong? You. Must. Be. Joking.
Remind me again how many trillions unions received AFTER ruining the economy 3 years ago?
Ye…ah.
I have been thinking about what the President should do tonight and agree with Slim and Polly’s previous emails.
Credit for new jobs should not be based on jobs created but on total manhours consumed monthly and a refund cheque of $2 given monthly to that company for the increase in manhours. Companies supported should only be private corporations - small to mid size only (up to 500 employees).
80% of new employment is created by small businesses with 20 or more employees and established about five years. They also are responsible for the highest average tax yield of any type of company (sales tax, employee withholding, customs duties, corporate tax - 45% of sales). Most new products start within these types of companies.
Infrastructure is important but if you have a good tax base it should look after itself. Truckers have to pay user fees - use that money. Please, no more paving roads every two years !
An office chair manufactured in Canada that sold for $100 would need to be replaced in 20 years. One made in Chindia needs to be replaced every two years but costs $40 plus taxes (including customs) which is generally charged on a credit card at 29%. Within two years the total cost is again $100 for the Chindia chair.
On the NA mfgd chair the gov reaps $45 in taxes. On the Chindia chair they get $10 up front and $12.50 over two years (if the credit card company is profitable).
The President should also erect a tariff wall. But he won’t because BB thinks the depression was extended because of doing just that before. - But the depression was ending before the war started.
I look forward to Continentalism - North America -
In my ideal world you don’t give people additional tax credits for creating jobs whether they are based on head count or hours worked. First of all, houres worked is even easier to manipulate than head count so companies can reduce hours worked in the months preceding implementation so they can get the tax break. Sencond, and more important financially, when you create such a break you are paying out the vast majority of your money to firms that would have hired the additional staff/increased staff hours anyway. The amount of credit offered is never enough to get people who don’t see a need for more of their goods and services to hire. And prices for many goods and services are sticky on the way down. So all you do is add to the bottom line of a company that would have hired those people anyway.
The government can’t afford to lose that income to a successful company that is expanding without help.
I’ve seen it in the real world. Tax credits for hiring are a mess. Next to impossible to implement. Next to impossible to enforce. And they have almost no impact on hiring.
Polly
I respect your opinion but respectfully, in part, disagree. I have seen job enhancement programs work in Canada ie Canada Ontario Employment Development, the NRC’s IRAP, Sec 80 of the UI Act, college and university subsidized students for up to one year, even SR&ED, etc. Without the SRED program in Canada many manufacturers would be out of business but currently most make a profit.
I agree with you that labour programs are rift with abuse. But I personally know of probably a hundred or more people today who have successfully negotiated thru these programs.
The point is, something has to be done. Geithner says to create growth. Okay, HOW? I say get people back to work doing Yankee Ingenuity type things to do with manufacturing which will create demand from their wages and their new products or processes.
How much of a subsidy are they providing? I can just about guarantee that the US can never pass anything that large. I think all the president is asking for is 2% and even that is unlikely to pass.
And believe me, US and Canadian business culture is so different as to not be believed. My experience with these programs comes from a NY employment tax credit case that I worked on for a large Canadian bank. The client’s executives could not understand why there was a problem. It was a charming, but naive way to look at a US legal issue.
Working in Canada doesn’t mean it can work here.
ALL that needs to be done is to END tax breaks for offshoring our jobs.
http://www.reuters.com/article/idUSTRE68R40I20100928
Geithner urges global action to boost growth
WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner on Thursday called on global finance chiefs to boost growth but said a repeat of the massive coordinated fiscal stimulus efforts of 2009 was no longer possible.
In an opinion piece written for the Financial Times, Geithner said the United States must strengthen employment, Europe must act more forcefully to quell its debt crisis and China and other emerging markets should strengthen domestic demand and allow their currencies to rise more rapidly.
“The imperative remains to strengthen economic growth. Fiscal policy everywhere has to be guided by the imperatives of growth,” Geithner wrote a day before finance ministers from the Group of Seven wealthy economies are due to meet in Marseilles, France.
Geithner acknowledged that some governments with high deficits and high borrowing costs have no choice but to consolidate their fiscal positions, while others have room to take more action to support growth or at least slow their fiscal consolidation.
“In early 2009, the world showed remarkable unity and deployed remarkable financial force in rescuing the global economy,” Geithner wrote. “The challenges now are different and cannot realistically be confronted by a repeat of that coordinated global response of financial stabilization and fiscal and monetary stimulus.”
Geithner said President Barack Obama on Thursday evening will push for a “very substantial package” of public investments, tax incentives and targeted jobs measures, which will be combined with reforms to restore medium-term fiscal responsibility. He did not provide any specifics.
WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke said he’s surprised by how cautious consumers have been in the two years since the recession officially ended. But the Fed chief offered no hints of any steps the Fed would take to boost the weak economy.
Bernanke said Thursday that a number of factors are keeping consumers from spending more, including high unemployment, a temporary spike in energy prices, falling home prices and high debt burdens.
“Even taking into account the many financial pressures they face, households seem exceptionally cautious,” Bernanke said, according to a transcript of a speech his is giving in Minneapolis.
Anyone want to explain it to the FED chairman?
Job insecurity and stagnant to falling salaries + combined with more fees fewer services from the states + No abillity to increase household income by sending the wife to work + No savings + inabillity to borrow + increasing food and fuel prices = Falling demand for services and manufactured goods.
We should also throw in no faith in the system to prevent thieves on Wallstreet from stealing everything from your job to your retirement account to the equity in your house.
I TOLD YOU THEY KNEW.
http://dprogram.net/2011/09/05/wikileaks—us-france-knew-in-2007-financial-collapse-was-imminent-due-to-wall-street-fraud/
To summarize, the cable reveals that top government officials in France and the US knew Wall street banks were committing fraud in the origination and packaging of sub-prime mortgage and lying to investors about the resulting securities they were creating and selling. Officials knew banks were also lying about their own liabilities and hiding them from investors by keeping the assets off their balance sheets. The government also knew that both regulators and ratings agencies were participating in the scheme.
The discussion of “systemic risk”, “market turbulence” and “taxpayer bailouts” over a year before the markets actually collapsed and those events actually occurred, show they knew a global financial collapse.
To summarize, the cable reveals that top government officials in France and the US knew Wall street banks were committing fraud in the origination and packaging of sub-prime mortgage and lying to investors about the resulting securities they were creating and selling. Officials knew banks were also lying about their own liabilities and hiding them from investors by keeping the assets off their balance sheets. The government also knew that both regulators and ratings agencies were participating in the scheme.
Slim sniffs the air. Detects the smell of a smoking gun.
Anyone else smell it?
“Anyone else smell it?”
Surely the legal eagles did, but they’re corrupt too. Game over!
Of course they knew.
2006 they fire the guy that had been Fed President for 20 years and replaced him with a guy that is considered to be the world’s leading expert on the Great Depression.
Greenspan wasn’t fired. He retired.
Last Fed chairman to be fired was G. William Miller, who served under President Carter.
Reagan refused to reappoint Volcker, who openly said he wanted to continue at the job. That is effectively firing.
Local Market Observation:
I ran into our area realtor down at the Bakersplat CostCo yesterday, and he told me that Kern Kounty banks are offering 10% commissions on sales of their REO’s. (This is in addition to the standard 6% realtors collect from the buyer/seller.) This practice is reminiscent of the 12% pay-out the State of California used to get rid of Sacramento overbuild in 2008-2009.
He also told me that the banks LOVE foreclosures because they get to sell the same properties over and over after being reimbursed for losses by the insurance guarantee fund. His cart was full of expensive meats and fresh produce, so I can only suppose he’s doing well these days….
Solyndra Headquarters Raided by FBI (Bloomberg)
Solyndra LLC, the bankrupt solar- panel maker that was backed by the Obama administration, is being raided by the Federal Bureau of Investigation today, an agency spokeswoman said.
“We’re executing a search warrant jointly” with the Department of Energy inspector general “regarding an investigation,” FBI spokeswoman Julie Sohn said of the raid at the company’s Fremont, California, headquarters offices and plant. Sohn said she couldn’t provide details about the investigation.
The company, whose $535 million federal loan guarantee was criticized by Republicans, filed bankruptcy on Sept. 6, six days after shutting down its factory and firing 1,100 people.
Former Solyndra employees sued the company, claiming it failed to give the warning required under federal law before shutting down and firing them.
Solyndra said it failed because it couldn’t compete with foreign manufacturers funded by their foreign governments. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the company’s biggest lender, according to court papers.
Congressional Democrats have asked the company’s chief executive officer to explain his optimistic projections about its future.
‘Strong Financial Position’
Democratic Representatives Henry Waxman of California and Diana DeGette of Colorado said Solyndra Chief Executive Officer Brian Harrison met with them earlier this year and assured them it was in a “strong financial position.”
“At that time, he said the company was projected to double its revenues in 2011, there was ‘strong demand in the United States’ for its shipments, and the company was expected to double the megawatts of panel production shipped this year,” Waxman and DeGette wrote in a letter today to Representative Cliff Stearns, a Florida Republican who heads the oversight panel of the House Energy and Commerce Committee.
I don’t have the facts of the case, but I suspect that this company was doing some game-playing with the federal money it got.
Speaking as someone who has signed up for — and has been certified — under one federal purchasing preference program (HUBZone), I’m here to tell you that the government is not a very happy camper if it finds out that you’ve misrepresented your business or used its money for something other than what you said you would.
Oh, one more thing: Being certified is not a slam dunk. You still have to go out there and sell your services to the agencies that might need them.
Barry Cinnamon, CEO of decade-old Westinghouse Solar in Campbell, Ca., posted an op-ed on the company’s corporate website lamenting the exit of rival Solyndra from the marketplace but also not pulling any punches when it came to describing who and what was to blame: Two big bets Solyndra made that didn’t pan out.
The first, he says, was that the main ingredient in solar panels, polysilicon, would remain expensive. Instead the global price has fallen 20 percent in the first half of 2011 alone.
As Cinnamon explains: “Solyndra invented a solar panel that didn’t use expensive silicon. Unfortunately for Solyndra, and fortunately for all the silicon solar panel manufacturers and customers, silicon has gotten very cheap over the past few years.”
The second fatal error Solyndra made, according to Cinnamon, was that Solyndra could make up for the cost of producing more expensive solar panels by achieving savings in installation. Solyndra touted its flat panels as being easier to install and rotate. As the company’s website description reads:
The ease of installation and simpler mounting hardware of the Solyndra system enables customers to significantly reduce labor, hardware, design and other BOS costs, which account for a substantial portion of the total installed cost of a conventional PV system. Fast installations mean less business disruption for the end customer as the rooftop work is completed quickly. For installers, being able to complete more jobs quickly means more revenue during the best installation seasons.
But Cinnamon notes: “Other commercial flat roof products are on the market (full disclosure, Westinghouse Solar has an inexpensive and easy to install flat roof solar panel product) with similar benefits at much lower costs to Solyndra.”
thank goodness it’s only 20% that are corrupt.
“With jobs so hard to come by for many Americans, you would think a private company deciding to create more than 1,000 jobs would be cheered by Republicans and Democrats alike.
“But President Obama’s National Labor Relations Board is doing everything it can to stop Boeing from opening a new plant in North Charleston.
“And as sad as it may seem, at the heart of the board’s actions is political cronyism at its absolute worst.”
~Ron Paul
“With jobs so hard to come by, you would think that a private company should be allowed to lay off and fire experienced union workers in Washington, and replace them with $12/hour non-union newbies in South Carolina”.
Fixed. No need to thank me.
so the solution is no jobs for anybody?
“screw you guys…i’m going home.” - eric cartman
SC is much better than the dreaded overseas.
The Boeing management, instead of making up some fairy tale about “diversifying the industrial base”, told the truth. They were building a second assembly line in South Carolina to give them leverage against their Washington employees.
(Thanks partially, I might add, to subsidies from South Carolina)
This is against the law. The Washington unions filed a complaint. The NLRB agreed.
The Republicans have turned this into a “Obama hates American Workers” screed.
If you want to find out who hates who, ask Boeing how many jobs (including engineering jobs) have been farmed out to their subcontractors in Japan, China, etc.
For this reason alone I won’t set foot on a 787. To have such a cutting edge aircraft assembled by people who are paid what a shift manager is paid at a fast food joint is a disaster waiting to happen.
The project is screwed up for a bunch of reasons. Almost all of it due to Boeing management.
-Decided to make a high percentage of the airframe out of composites, creating issues with weight and assembly tolerances (management decision)
-Decided to farm out the design and construction of major sub assemblies and systems to companies who showed their inability to do so. These “partners” are scattered across the globe, creating inefficiencies in communications, logistics and supply chain management (management decision)
-Decided to get rid of all their subassembly engineers/employees, and become “systems integrators”, basically using the “Dell Computers” model to build airplanes (management decision)
All of these problems can be fixed for the most part, by throwing time and money at them.
Good thing Airbus decided to build the A380, or Boeing would be fooked.
If pay is the issue, is it a disaster waiting to happen, or are we just dialing things back a few decades?*
As long as overseas labor is as cheap as it is, and the trade balance issue isn’t addressed, it seems likely that our standard of living is being deep-sixed until a form of steady state is reached. And that state won’t be in favor of the pay of US workers relative to what it was just recently.
*I have no idea if this is equivalent pay from a few decades ago or not. Just trying to illustrate a point.
First the low skilled jobs got outsourced. All of those are pretty much gone.
Now, the high skill jobs are being outsourced. With a hundred years of engineering and manufacturing know how being given away for pennies on the dollar, and by coercing US employees into training their Mexican/Chinese replacements, by holding their severance and pensions hostage.
I think this is bull$hit. Businessmen, banksters and Republicans disagree with me.
Yep, and I think you illustrate quite clearly the unintended consequences that Boeing, HP, and many others have brought upon themselves. It’s too bad they’ve also made the US worker the collateral damage in all of this.
Both of those companies are in my backyard and I’ve been calling on them for a decade. Even the projects themselves I do still have with them end up being poached by my counterparts overseas…
Who has been pushing the “free trade/outsourcing” dogma?
People who stand to profit from it. Stockholders, upper management, and the whores who are paid for justifying the position.
US employees, Federal, state and local tax bases, and, in time, the US strategic position.
European governments look at Airbus, and see a high tech jobs program.
The US government looks at Boeing, and sees a source for campaign contributions, if they just let Boeing do what it wants
Funny, even thought the Euros have resisted giving away the farm, they don’t have any trouble selling airplanes in China.
How much would unemployment go down, if EVERY JOB in the US was shipped off to China or India? A percentage point or two?
Take away legal means for people to make a living/survive, and they will resort to illegal means. Then you have Somalia.
If we let housing prices fall, get govt spending under control, and stop trying to artificially prop up everything which only benefits commodities, then 30-40K/year could be a good salary.
Darn those facts.
So who owns the job? The employer or the employee?
Union workers screw themselves over time and time again and that is a fact. Why I don’t know, perhaps they are to blind to see it. Or believe they are owed more.
Who has more “invested” in a company?
A day trader, or a guy who has worked there 20 years?
Who paid for all the training that the 20 year employee “invested” in said company? Who supplied the job? Who supplied the place in which to invest ones-self? Who chases after contracts to keep employees working?
There is and always will be a trade off, period. To brush aside simple facts is just a waste of time. Apparently you believe that employers always screw over their employees. So be it.
An thing that is observable and is easily recreated by anyone and documented many times has NOTHING to do with belief.
Science, how does it work?!
RUN AWAY! RUN AWAY! IT’S THE UNION BOGEY MAN!
Unions make up LESS than 12% of the total workforce and have for the last 20 years.
So anyone claiming unions have too much power and have screwed themselves are either misinformed or liars.
Marie Antoinette didn’t get it either.
“With jobs so hard to come by, you would think that a private company should be allowed to lay off and fire experienced union workers in Washington, and replace them with $12/hour non-union newbies in South Carolina”.
Well that is the real issue. The American standard of living is going down, except for the rich who set their own pay. (And there were a real market in executive pay, and no bailouts, their pay would probably have crashed even more).
So, say so. And then explain where the demand for what businesses want to sell will come from.
You think aircraft should be built by people making $12hr?
Tell me you’re joking. You have to be, because NOBODY is that damn stupid.
If it is being built in Taiwan and the COL is $800 a month, that $12 might pay engineers with masters degrees. Think globally.
You might want to ask Fixer about their QC, or serious lack thereof.
Me, I’ll be staying off an airplane over the next 20 years.
As for globally, 300 million Americans don’t live there, they live HERE, where the cost of living NEVER goes down.
OK. I wont.
Greek Credit Swaps Surge; 91% Chance of Default
By Abigail Moses - Sep 8, 2011 Bloomberg
Credit-default swaps on Greek government debt surged to a record, signaling a 91 percent chance the nation will fail to meet debt commitments, after its economy shrank more than previously reported.
Five-year contracts on the country’s sovereign bonds jumped 196 basis points to 3,001 basis points, at 3:45 p.m. in London, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.
Gross domestic product shrank 7.3 percent from a year earlier after declining 8.1 percent on an annual basis in the first quarter, the Hellenic Statistical Authority said. Greece’s financial situation is “on a knife’s edge,” German Finance Minister Wolfgang Schaeuble told lawmakers last night, according to parliament’s HIB bulletin.
“It’s a combination of Greece continuing to disappoint and probably a growing realization among politicians that they’re throwing good money after bad,” said Gary Jenkins, head of fixed income at Evolution Securities Ltd. in London. “They’ve finally woken up to the fact that they’re not going to get this money back.”
The default probability, which is based on a standard pricing model, assumes investors would recover 40 percent of the bonds’ face value were Greece to fail to meet its obligations within five years.
Consumer Borrowing up for 10th Straight Month- AP
Americans borrowed more money in July than any other month in more than three years. But they cut back on using their credit cards.
Does Congress know how much $1 billion is?
$1 billion is 1,000 million and Congress has been borrowing at the heady rate of almost $100 billion a week since raising the federal debt ceiling barely a month ago. (100,000 million dollars a week!)
Since August 3rd the public debt has grown to $14.7 trillion with no slowdown in sight. Reduced to terms most of us can understand, that’s 400,000 million dollars of new debt.
Let it never be said the U.S. Congress is shy about spending other people’s money!
~ We are on the fast track to hitting the debt ceiling again. Not that anyone much cares.So we’ll get to listen to a bunch of whining and finger pointing once more. Then they’ll raise it. Screw fixing the problem, that’s to hard.
Let it never be said the U.S. Congress is shy about spending other people’s money!
And both parites are VERY guilty of this.
My question is; what is the elastic limit of this thing?
That kind of debt is needed to fuel our $47T a month trade imbalnce and the ever widening wealth disparity.
Wow.. the internets put a T when I typed a B. That is weird.
Wow.. the internets put a T when I typed a B. That is weird.
It’s a new feature of the internet - it automatically adjusts currency amounts for inflation
http://www.businessinsider.com/now-the-fbi-is-raiding-obamas-favorite-solar-company-2011-9
FBI raiding Obama’s favorite solar company. Eco-scams are ripping off taxpayers for untold billions, but hey, the important thing is that Obama and the DNC are raking in nice campaign contributions from the beneficiaries of the public’s involuntary “investments.”
The next scam: “Infrastructure investment.” The graft from these contracts will swell DNC campaign coffers.
It is a shame that he picked this particular company. They stood out in that their technology was much worse than what we had 30 years ago. That much money could have advanced some of the promising research ahead by decades.
http://market-ticker.org/akcs-www?post=193789
Rick Santelli rips neo-con shill and arch-Keynesian Tom Friedman a new one. Priceless!
Santelli looks like his usual idiotic blowhard self. Impressive only to those that buy his BS.
Social Security is being drained dry by too many people who contributed too little into it.
Since I doubt we are going to make it easier to involuntarily commit crazy people any time soon, we need to have stronger teeth or is that weaker teeth laws?
http://www.thesmokinggun.com/documents/bizarre/female-vampire-bites-old-man-876543
Well in Illinois it looks like they might not be committing anyone…
“Gov. Pat Quinn announced Thursday he intends to lay off more than 1,900 state workers and close seven state facilities, including the Tinley Park Mental Health Center, in a budget-cutting move meant to help close a $313 million shortfall.”
…”Except for Tinley Park, the facilities Quinn intends to close are Downstate, including the Singer Mental Health Center, the Chester Mental Health Center, the Jacksonville Developmental Center, the Mabley Developmental Center, the Logan Correctional Center and Murphysboro Youth Correctional Center.
The layoffs target workers at all of those facilities and could begin as early as November, according to the governor and material provided by his office.”
Napervillesun.Suntimes.com
Rick Perry was here this morning in SD, and now the power is out during OB’s speech. Do you think Perry said a prayer that the power would go down so SD County residents would miss the speech?
Texas sets record for hottest summer in US (ever)
http://today.msnbc.msn.com/id/44441386/ns/weather/
What do you think?
I think Perry should pray for less fire and less drought.
Got the lowdown on my coworker’s home sales saga today. They have been trying to sell for a couple of months, with no offers; now ready to lower the asking price. Their Realtor™ told them there were lots of short sales underway in SD County, and my colleague is just beginning to grasp what that means. I feel for them, as they are selling a home in the price range where the Oct 1 reduction in conforming loan limits will further limit the potential buyer pool. I didn’t get into the details of this, or its implications, but I gave my usual boilerplate advice, which is to first sell the home you are leaving before buying a new one, as it is very hard to tell what the market value of homes is when hardly any are selling, and the ones that sell are often foreclosures or short sales.
P.S. She knew nothing about last year’s $8K tax credit and its highly-leveraged impact on home sales prices funded with 3.5% down payment FHA loans. I didn’t get into it with her; it would have been a waste of breath to try to explain how $8K leveraged against a 3.5% down payment requirement can potentially increase the effective household-level home purchase budget to the tune of $8K/3.5% = $228,571. She is already sufficiently depressed about her plight…
An educated victim?
Hubby, who used to work for a big SD commercial RE developer, is now laid off. He used to look at me like I was some kind of loony tune back around 2006 or so when I explained to him in plain English how bad the coming real estate crash was fixing to be. Now they are getting the real world education of a life time in selling a high-end home in a low-end market.
And probably didn’t give credit where credit was due either.
Or, is he one of those guys who thought he just must’ve made a mistake somewhere and if he could’ve only done that one thing right, this would’ve all turned out different?
I was close to being banned from the Thanksgiving holiday back around 2005-2006 for explaining the disconnect from wages to cars and houses. Funny, I recall those who were the deepest in debt rocking on the balls of their feet as they strutted about like peacocks — the new economy.
9/11 terror threats, banks on the brink, political blah blah, taxes, stimulus, everything that’s sucked about 2001-2011 all rolled into one week.
But… I still love y’all!
It has been an exciting week so far, with Friday still to come. So far the biggest personal-level snafu has been a local power outage.
Massive power outage hits San Diego
September 8, 2011 | 4:16 pm
A large swath of San Diego County was without power Thursday afternoon as officials investigated the cause of the outage.
Residents reported power being out across the city of San Diego as well as suburbs such as Oceanside and Chula Vista.
Sheriff’s officials told Fox 5 San Diego that many of its substations were without power. Utility officials are trying to determine what caused the outage.
There were also reports that parts of Orange County lost power.
I take it you don’t live in the “massive swath.”
Got about 26 minutes of battery power left on my laptop. By some miracle I don’t understand, wireless is holding up so far. Wifey just advised me to stop “wasting” battery power on blogging, so I am soon going to say “Guten Nacht und Guten Glück.”
I will say that power outages beat the heck out of earthquakes and hurricanes…
GOOD….someday people will listen to me you use more then Twice as much electrity at 4PM as 4 AM…
We need to give business reverse tax breaks…based on the number of full time with health insurance employees that DONT work 9-5 M-F….
Its a ghost town here in Long Island City after 6pm and weekends, holidays, but during the week you cant find a space to park. I would assume lots of the country is like this.
Don’t forget the hundred year floods in your homestate.
The city of Binghamton had mandatory evacuations this afternoon.
http://www.myfoxny.com/dpp/news/mandatory-evacuations-in-upstate-new-york-20110908-akd
MYFOXNY.COM | NEWSCORE - More than 10,000 residents in the Binghamton, N.Y., area are under a mandatory evacuation order as waters continue to rise in the Susquehanna and Chenango rivers, the Press & Sun Bulletin reported Thursday.
At least 1,000 evacuees have taken up shelter at Binghamton University, and the Red Cross has opened several shelters in the region, according to the report.
“It’s just unknowable at this point as to whether or not those flood walls in the city of Binghamton will hold.
Read more: http://www.myfoxny.com/dpp/news/mandatory-evacuations-in-upstate-new-york-20110908-akd#ixzz1XQ5OqzUM
Went for a walk in the dark after dinner tonight. It was eerie to wander the ‘hood sans street lights, and no lights showing through the window of any house. The moon, the stars and headlights were the only light sources, except for the occasional flashlight.
Gonna be a rough day tomorrow for Wifey — wait a minute; on second thought: POOL PARTY!!!
Outage causes San Diego County to close schools
The Associated Press
Posted: 09/08/2011 08:34:06 PM PDT
Updated: 09/08/2011 08:34:13 PM PDT
SAN DIEGO—Public and private schools in San Diego County will be closed Friday as a precaution as area residents cope with a power outage that has left millions without electricity.
San Diego Unified Superintendent Bill Kowba said in a news conference Thursday that the closure will affect 200 campuses.
Officials say they are erring on the side of caution but expect schools to be operating normally Monday.
Does this have anything to do with the heat wave? too many ac’s running?