Why I'm Against the Bailout

Last week, my mom sent me an email that started with the sentence: "Would we be better or worse off if there was no bailout of these banks?"



I was going to just answer her question right there, but then I realized my answer would make for a great blog post. So, here you go, Mom! Sorry it took so long, but I got a little distracted with the news lately. :)



By the screencap above, you might think we'd be better off if the bailout went through. The Dow dropped more than 500 points by closing today in reaction to the bailout bill not passing the House.



If the bailout did go through, we'd see banking begin to return to normal--loans could be given again, loads of people would still have jobs, and both the USG and Wall Street would save tremendous face (after all, it was the two bodies in concert who is responsible for this mess).



Of course, those are just the good things that would happen. There would be bad things, too, that our leaders aren't really going into.



Most importantly, in my mind, if the government really decides to spend $700 billion (about the price we've paid in Iraq so far), the negative impact could be pretty far reaching--especially on one part of our economy that no one likes to *really* talk about.



We have a problem in our culture--no one really likes to talk about the "i" word.



No, not impeachment.



Well, they don't like to talk about that either, but Americans seem even more loathe to use the other "i" word, inflation.



I'm kind of a broken record when it comes to inflation. I explained my view of it in a recent blog post here: http://thepete.com/…ed-economy



Suffice it to say, when $700 billion gets injected into our economy, it will be a lot of new money floating around. When you increase the supply of money, the existing money drops in value (as dictated by the law of "Supply and Demand"). When the bailout goes through, it'll send the dollar's value plummeting.



That's what can really make for a weak economy, BTW. A weak dollar.



So, in the end, sure, a bailout is going to keep our lives more or less like they are now. We'll be able to borrow again and bankers will keep their jobs and life will be grand until the real meaning of "trickle-down economics" is learned--when the lost-value of the dollar trickles down from the rich (who will use the new money first) to the poor (who will only see the benefits of that new money once the value of their own money drops--it's a little abstract, my apologies).



Another thing any bailout will fail to do is guarantee this won't happen again. We are all familiar with the Great Depression and the stock market crash that preceded it. Was there a bailout then? I don't know.



Regardless, we, as a country, survived the Great Depression and I'm sure America will survive this, whether we have the bailout or not.



So, why does it matter? It matters because the bailout lets people get away with breaking the rules. Hell, the bailout itself is breaking the rules of the free market.



I'm no free-marketeer, but the way I look at it, if you're going to bother to make rules, you should bother to follow them. If you don't want to bother to follow them, then change them and follow the new ones.



Breaking your own rules just makes you look unprofessional.



I'll post more about rule breaking tomorrow...



...assuming I don't get distracted by the news again. :\



Tomorrow's post on the rules will also involve socialism vs. capitalism, conservatives vs. liberals, and probably even McCain vs. Obama, if I can get really creative.



So:



Bailout = good in the short term (status quo, status quoed)



Bailout = bad in the long term (inflates inflation, weakens our overall economy and our individual power to buy stuff, doesn't prevent another economic explosion, also lets bad guys get away with it)



Well, Mom? I hope that answers your question.



Either way, we're in for a world of hurt. Luckily, most of us are broke, so we won't feel it as much as the rich folks panicking right now (though we may have trouble buying things that are about to get more expensive).



For all the folks on Utterli who got notified about this post, I hope you don't mind! I hardly ever notify everyone I've friended about posts, so hopefully you'll forgive me if you're not interested in this post.



Also, I'd love to hear what anyone reading this thinks. I really want to learn more about our money and how it works. I'm really nervous that it's really as simple and truly as messed up as it looks.

thepete's Mobile post sent by brettbum using Utterli.  Replies.

CNN Calls Bush a High Functioning Moron

Paul Begala on Anderson Cooper 360 just called President Bush a high functioning moron on CNN. No one refuted him.



You can bet that the phones are ringing off the hook at McDonalds as high functioning morons across the nation attempt to call CNN to complain about that insult!

Mobile post sent by brettbum using Utterli.  Replies.

John McCain Self Destructed By David Letterman

Pay Off All of our Credit Cards

In February the total US Credit Card debt was $790 billion.



http://www.voanews.com/…6-voa1.cfm



If Congress just rounded up to $800 billion, they could pay off everyone's credit card debt tomorrow.



I think that would go a long way towards making it possible for people to keep up with their mortgages, and stimulating the economy.

Mobile post sent by brettbum using Utterli.  Replies.

Right Wing Newspaper Zeroes in on Obama

I realize that this article is from a Right Wing paper, but I think they actually capture one of Obama's flaws.



What do you think?



see San Francisco Chrnoicle Article 'Saint Obama comes down to earth' - http://www.sfgate.com/…rticle.cgi



" On campaign-finance reform, FISA, NAFTA, abortion, capital punishment, guns, Iran, Iraq, the surge and drilling offshore, Obama has fudged on his earlier positions in the normal way of savvy pragmatists - but not in a manner befitting angelic idealists.



The new Obama probably will recover his temporary setback in the polls. But right now his problem is that disappointed independent voters are catching on that this saintly savior is all too human."

Mobile post sent by brettbum using Utterli.  Replies.

Executive Crayon Tax Plans from Obama/McCain

As I hop over to Obama's web site to review his 'tax plan' I am struck by the lack of a tax plan. :)



http://www.barackobama.com/…s/economy/



He has a number of bullet points about things that he will give to people in the form of cash back rebates, new deductions or tax credits or investments in special projects, but I do not see an actual tax plan.



As a poor schmuck, and accountant with a Master's in Taxation, I see Obama's page of giveaways, as a bit of a grab bag, that gives a little of this and a little of that to a lot of people.



Consider that Bush was loudly pounced upon by Democrats for spending about $150 billion to stimulate the economy with tax rebates not so long ago. It would appear that Obama wants to do basically the same thing.



That's nice of him to want to give away some of the Government's money, but I've got a news flash for Obama.



We have a $9 trillion debt, and that was the price BEFORE the fed spent close to a trillion dollars last week bailing out Freddie Mac and Fannie Mae.



Obama can give away all the cash or dollars he likes, but the truth is that if the government keeps giving away money that it doesn't have and printing more, well that money isn't going to be worth the dead trees its printed on.



Now, I'm not saying John McCain's plan is any better or worse (his focuses on a small handful of tax decreases as opposed to cash back give aways.



http://www.johnmccain.com/…/taxes.htm





I do also realize that neither of these candidates is the sharpest knife in the rack when it comes to the economy. Neither of them have hardly any experience working with economic matters. I think this lack of economic wisdom is reflected in both Obama and McCain's website (despite the conventional wisdom that they will hire 'smart' people to consult with, which doesn't seem to have happened).



Obama's tax plan page is basically a pandering central page. If you can't find a promise on that page that appeals to you, then you just aren't scrolling far enough.



McCain's tax plan page reflects McCain's own simplistic un-understanding of the economy. It doesn't pander to everyone under the sun, but does throw out 3 or 4 standards in tax cut dogma. He's not really pandering, he's not really simplifying the tax code either, just making small modifications.



Neither candidate seems to really be helping Americans or the economy with their 'plans'. If these plans weren't printed up on fancy internet websites, I'd swear they were written with white board marker (executive crayons) and thrown up haphazardly just to put 'something' on each respective website.

Mobile post sent by brettbum using Utterz.  Replies.

Surprise! Bush is Bringing Osama to Dinner

There have been a ton of things the news of the last couple of days, and so it could be very possible that many people of miss the story that's taking place in Afghanistan and Pakistan.



George W. Bush has changed the rules of engagement for the military, enabling them to fire upon targets across the border in Pakistan from Afghanistan without having to be first provoked or attacked. Several cross-border incursions, and missile attacks have been taking place since this change in the rules of engagement.



Why the sudden ramp up in attacks?



It sure isn't because we are getting along with Pakistan better these days. Pakistan just elected a new president, who ran on a platform espousing the notion that the United States should not cross the Pakistan border. The president of Pakistan has been very blunt in stating that the US should not attack anyone on on its own soil. They feel that they are cooperating enough with us and there should not be a need for the United States troops do this. Typically, the Pakistani government has not wanted to inflame instability in its own country by upsetting its people with US foreign troops on the ground.



So why are we risking the stability of one of our allies, and potentially upsetting that Ally at the same time?



All politics are local, and in our US local politics we are running into a presidential election. George W. Bush needs John McCain to win, if there is any hope that George's own place in history might be salvaged from ruin. The primary thing that George Bush could do to potentially save his own image, and possibly secured John McCain's place in the White House, would be to produce Osama bin Laden before the election.



As we consider that potential, and witness the change in the rules of engagement, and the increase in attacks on US soldiers on people across the border in Pakistan, have a strong suspicion that the US is finally making a strong attempt to capture or kill Osama bin Laden. Maybe they've been waiting for the perfect moment, maybe they've been waiting for political reasons, maybe they just got some information that could even be false hoping to ensnare Bush in a trap knowing Bush's own motives that I stated above.



I'm not sure what the answer to this is but we could be witnessing the October surprise unfolding right now in September.

Mobile post sent by brettbum using Utterz.  Replies.

You can put lipstick on a pig, it's still a pig

Look let's face it. Obama is an idiot.

There I said it, its out in the open. He's not an elitist savant, he's a freakin' moron.

Michelle needs to take him home tonight and smack him upside his stupid head a couple times.


Why is he stupid?

1. He didn't pick Hillary. Anyone could see a mile away that McCain was considering a female VP all year long.

2. He didn't pick Hillary. Hello, Obama, is there anyone in there. Hey you moron, if you made it past point 1 above, change your mind and pick Hillary. Otherwise you are going to lose!

3. He didn't pick Hillary. Hey, OK, look Obama you are driving straight into a train wreck. Let me mention a few names to you and see if you see in commonality between them and yourself (hint Republicans do, you all have the same weakness) Carter(80), Mondale, Dukakis, Gore, & Kerry (hint hint hint They let Republicans tear them apart with stupid shit and they would never defend themselves. Stupid or not Americans want leaders that will go to the mattresses to defend them (the people) against stupid shit. Shit rolls down hill and Americans don't like to be at the bottom of the hill. If you can't show them that you can build a retaining wall to block an avalanche of turds, they won't vote for you.

4. OK, let's face the facts. Palin made a joke that is now famous during the convention. she said 'you know what the difference between a hockey mom and a pit bull is? . . . . . Lipstick' So anytime anyone mentions lipstick in reference to politics, it is now a reference back to Palin. Palin told the world, I am a woman, I wear lipstick, deal with it or I will take a hockey stick and beat you across the head with it. When Obama paints the picture of putting lipstick on a pig (very old political reference that just got twisted like a pigs tail), everyone in the country that heard Palin's hockey mom joke, makes the inside joke reference to Sarah Palin. Obama stuck his stupid foot in his mouth, if he's not smart enough to realize that and more importantly DEAL with it, he is going to lose this race and go down in history as one of the dumbest candidates ever, first to NOT pick Hillary (hindsight is 20/20 that's Obama's problem not historians problem) and second for not jumping up and performing damage control to surgically remove his stupid foot from his stupid mouth. THEN he needs to grab himself by the ear, and yell in that big ol' ear, "Hey Barry! You are saying some stupid shit and walking into some easily avoided Republican snares. Get your shit together and play like you remember how to win."



Glad I'm still undecided btw. :) Obama might as well have volunteers passing out promotional items on street corners like those guys in Las Vegas that hand out adult trading cards, for all the good its going to do him, if he continues to run his campaign like a fool.

Mobile post sent by brettbum using Utterz.  Replies.

Movement to Get Congress to Start Working on Immigration Problems Again

It is true that we have many problems to confront in the United States today.  That said, you can bet that when Congress sees a lot of balls thrown into the air that need some juggling, Congress will run away first and go on vacation.  Well, immigration issues still confront the United States and we need reform now to encourage legal immigration and stop or discourage illegal immigration. Most people think of immigration issues and think about protecting American jobs in business, but they don't always consider some of the other problems involved with illegal immigration that harm both citizens of the US and illegal immigrants and their children.

 

Illegal Immigration has Many Dangers and Causes many problems

Population growth

Population growth which exceeds the carrying capacity of an area or environment results in overpopulation.[21] Spikes in human population can cause problems such as pollution, water crisis[22][23] and poverty.[24][25] World population has grown from 1.6 billion in 1900 to an estimated 6.6 billion today. In Mexico alone, population has grown from 13.6 million in 1900 to 107 million in 2007.[26]

In 2000, the United Nations estimated that the world's population was growing at the rate of 1.14% (or about 75 million people) per year. According to data from the CIA's 2005–2006 World Factbooks, the world human population currently increases by 203,800 every day.[27] The United States Census Bureau issued a revised forecast for world population that increased its projection for the year 2050 to above 9.4 billion people, up from 9.1 billion people. We are adding a billion more every 12 years. Almost all growth will take place in the less developed regions.[28]

Dangers

As with any illicit activity, illegal immigrants expose themselves to dangers while engaged in illegal entry to another country. Aside from the possibility that they may be intercepted and deported, some considerably more dangerous outcomes have been known to result from their activity. As an example, illegal immigrants may been trafficked for exploitation.

Slavery

After the end of the legal international slave trade by the European nations and the United States in the early 19th century, the illegal importation of slaves has continued, albeit at much reduced levels. Although not as common as in Europe, Asia, Africa and Latin America, some women are undoubtedly smuggled into the United States and Canada.[29]

People been kidnapped or tricked into slavery to work as laborers, for example in factories. Those trafficked in this manner often face additional barriers to escaping slavery, since their status as illegal immigrants makes it difficult for them to gain access to help or services. For example Burmese women trafficked into Thailand and forced to work in factories or as prostitutes may not speak the language and may be vulnerable to abuse by police due to their illegal immigrant status.[30] In the Dominican Republic, Haitian migrant workers are sold into slavery on Dominican Sugar plantations, including children.[31][32]

Prostitution

The so-called "white slave trade" referred to the smuggling of women, almost always under duress or fraud, for the purpose of forced prostitution. Now more generically called "sexual slavery" it continues to be a problem, particularly in Eastern Europe and the Middle East,[33][34][35] though there has been an increase in the number of cases in the U.S.[6] Some Haitian children have allegedly been forced to work as prostitutes in the Dominican sexual tourism industry.[36] Currently the Dominican sex trade ranks third in the world, only behind Thailand and the Philippines.[37]

Rape

The possibility of being raped has become a problem for some women illegally entering another country. “After the coyotes get the women across the [U.S.-Mexico] border, safely on U.S. soil, they gang rape them to show they have total control over them. They hang their panties in the trees as signs of the conquest. . . If the women are young and pretty, they are kept in houses of prostitution where they have to have their families buy them out or work their way out. Of course, none will testify to this because the coyotes know where they are from and can seek revenge on their families in Mexico."[citation needed]

Death

Allegations have been made that thousands of illegal immigrants attempting to reach Europe have died since 1986.

In order to arrive to the sea, the dangerous passage of the Sahara is necessary. People have crossed it on trucks and off-road vehicles along the tracks between Sudan, Chad, Niger and Mali one one side and Libya and Algeria on the other. On this passage at least 1,069 people have died since 1996. The Libyan, Algerian and Morocan Governments have been accused of abandoning hundreds of migrants in open desert border areas.

Abuse has been reported of migrants in Libya. There are not any official data, but in 2006 Human Rights Watch and AFVIC accused Tripoli of arbitrary arrests, beatings and tortures in the migrant detention centers,[citation needed] In September 2000 in Zawiyah, in northwest Libya, at least 560 foreigners were killed in racist attacks.[citation needed]

247 stowaways in trucks were found dead in Albania, France, Germany, Greece, Turkey, the United Kingdom, Ireland, Italy, the Netherlands, Spain and Hungary.

There are still minefields along the Evros river between the Greece-Turkey border.[citation needed]

Additionally, 51 people drowned crossing rivers delimiting the frontier between Croatia and Bosnia; Turkey and Greece; Slovakia and Austria; and Slovenia and Italy.[citation needed] Forty-one people froze to death travelling over the icy mountains at the border between Turkey, Greece and Slovakia;[citation needed] 20 people died under the trains in the Channel tunnel trying to reach England;[citation needed] 33 people were shot dead by Spanish and Moroccan police or injured along the border fence of Ceuta and Melilla Spanish enclaves in Morocco;[citation needed] 11 people burnt when a deportation center in the Netherlands caught fire;[citation needed] and eight men were found dead hidden in the undercarriages of planes.[citation needed]

Death by exposure is also known to occur in the deserts of Southwestern United States during the hot summer season.

~Wikpedia: Illegal Immigrations

The United States is not alone in experiencing this problem, but that does not mean we have to suffer a problem either due to inaction.

This is just to important of an issue for our Congressional leaders to ignore. They need to know how important this issue is for you, your family and our country. Act Now! Click to send a fax to your Congress man or woman and get them to act as well.

This is not a time for our leaders in the capital of Washington DC to do nothing on Immigration!

Biden's Freudian Slips Increasingly Deployed - Leutenant Governor Palin is a Governor

Joe Biden, whom I like quite a bit just not the full ticket, would have us believe that he is the master of the well place freudian slip.  He constantly seems to mis-speak in a way that degrades his opponent.

Here's what Biden said the other night after Governor Palin (not Lieutenant Governor Palin) gave an amazing speech.

"I heard a very, by the way I mean this sincerely, a very strong and a very good political speech from a lieutenant governor of Alaska who I think is going to be very formidable, very formidable not only in the campaign but in the debate," Biden said Thursday at an economic discussion at George Mason University in Manassas, Virginia.

ABC News Blog

Here's Biden answering more questions about his responses to Governor Palin. He was full of praise as the day started, but he is slowly trying to find traction and stride against a very tough opponent."

Now Joe Biden definitely has a way of framing himself as an innocent when ever he screws up in a televised comment, such as the one last year where he made some inappropriate references to Barack Obama being a 'clean' candidate, intending to say fresh or something like that. 

That mistake sure didn't help him during the primaries, may have even cost him the primaries, but ultimately didn't send him away from politics to a life of selling picture frames.  No, he recovered and even managed through his charm and intelligence to get selected for the VP slot on the Obama ticket.  But how many times can he let his freudian cat out of the bag, before the accident starts to seem too much like a ploy.

Thompson and Lieberman and Some Bush 41

Having watched almost all of the footage from both conventions thus far, I have to say that other than Sen. Obama's acceptance speech, I was especially moved from the George H.W. Bush montage this evening. I really enjoyed the look on the 41st presidents face when they showed images of him as a young man in west Texas. 

I also enjoyed Fred Thompson's speech about Sen. McCain, it was interesting to learn what happened to that crazy old codger in Vietnam. I have to admit that it is fascinating to hear what Sen. McCain went through in that pit of hell and how he became the man he is today. I have more respect for him today than I ever had, but I don't trust him with a red-button, or Gov. Palin for that mater. 

And then Joe Lieberman took the microphone...

If there is still anyone out there who thinks of Joe Lieberman as a Democrat or Independent, has probably got some sort of wool over the eyes issues. Honestly, it felt like "I want to be Secretary of Something cronyism" to me. 

Overall, I think that the speeches were effective for the moment. The GOP has a product that is difficult to sell right now, so they are trying to change up their merchandising. I like their idea about focusing on a heroic candidate and uniting behind specific social issues. This will be the strong point for the GOP, this should help to solidify their base.

 When the Republicans give you a lemon, you make lemonade.