Showing posts with label bailouts. Show all posts
Showing posts with label bailouts. Show all posts

Tuesday, October 15, 2013

Woodstock's Cranky Aftermath


Talk of “Freedom” was in the air at Tea Party Express rally for Steve Lonegan’s Senate campaign at the New Egypt Speedway on Saturday.  Add Richie Havens and some Jefferson Airplane and you are close to a veritable Woodstock, minus the idealism, marijuana and thankfully, public nudity.
Many of the people at Saturday’s rally in Plumsted Township were part of The Age of Aquarius, but they’ve traded weed for Lipitor, worry about fiber intake and sometimes need a good place to sit.  Their folk singer at the rally is lamenting government spending, high taxes and Obamacare.
The Tea Party likes to think it challenges the establishment and conveys much of the rhetoric of getting government off our backs and challenging the system.  They’re mad as hell and they’re not going to take it anymore, to borrow the phrase from Howard Beale in “Network.”
The Tea Party is the product of the politics of disillusionment.  They make an easy target for their opponents who write them off as “kooks” and “crackpots.”
Tea Party members have some legitimately overlooked grievances about President Obama and the federal government.
·         Is the government’s ability to gather my text messages a good use of resources in the name of fighting terror?  Why should they be entitled to breach our privacy?
·         Is the mandate to buy health insurance fair?
·         Why should the government bail out big businesses?
·         Do we have any business bombing Syria?  (Diplomacy may carry the day here.)
·         Why should our country continue to compound additional debt beyond the $17 trillion outstanding?
Politicians have capitalized on this disillusionment with great effect.  Saturday’s rally had its share of political double talk.
Sarah Palin, Alaska’s former governor and Sen. John McCain’s running mate in the 2008 Presidential election, lamented the disservice to our veterans by closing national landmarks and a few breaths later urging the House to hold the line on the government shutdown.
Steve Lonegan, the Republican candidate for U.S. Senator, speaking about maintaining our nation’s strong defense and the importance of the navy to protect shipping lanes and warned about the mounting debt.   Nothing was said about how defense spending – as well as entitlement spending – fuel the deficit.
To be fair, liberals have their own share of opportunists and double talkers that fail to account for the cost of expanded programs or new taxes to pay for them, when on the stump.  Also, political rallies are the last place where you’d expect candor about solving the nation’s problems, since the tone of political discourse has as much coherence as a pro-wrestling rant.
If conservatives -- or any politician in the political spectrum -- wanted to be honest and steer us away from a “socialist path” and tame the biggest risks to our government’s solvency, our seniors would lose their Social Security and Medicare. 
That would make the Woodstock generation, who spent a lifetime paying into these programs, much crankier and even more disillusioned.

Friday, January 30, 2009



Michael Lewis (Author of Liar's Poker, Moneyball, The New New Thing, and Panic) offers some conventional wisdom about our culture's obsession with investing. I wish a lot of the bank executives had followed his advice. We'd be a lot richer for it. Some of his advice follows the Warren Buffett adage about investing in only what you understand.

Friday, January 23, 2009

Nationalizing the Banks -- Adopting Sweden's Bailout Plan

Barry Ritholtz says the banking system may need to be nationalized to save it. It would clear the decks and could help depositors. I disagree. Depositors are insured and the banks could also be converted to mutual banks owned by depositors. It would be a modified form of receivership. Nationalizing the big banks introduces politics and the gov't picking winners and losers. Why should Citigroup or Bank of America get rewarded for mismanagement when the local thrift that prudently managed its business does not get help?

read more | digg story

Tuesday, January 13, 2009

Calvin & Hobbes comic strip captures the truth

This link says so much about the current business climate. I get more truth from a Calvin & Hobbes strip than an entire month of The Wall Street Journal. This is courtesy of Barry Ritholtz' "The Big Picture" blog.

read more | digg story Click "Read More" to see the strip.

Saturday, November 15, 2008

Don't bail out the carmakers: The Economist

Politicians, business and the unions all want a bail-out of Ford and General Motors. That would be a mistake. Chapter 11 was made for situations like this. As article says: Bailing out Detroit would be a bad use of public money. It would be bad in principle, because it would be an open invitation to companies everywhere to apply for aid to survive the recession. Banks qualify for help because the entire economy depends upon their services. They are vulnerable to sudden collapses in confidence that can spread to other banks that are perfectly solvent. A good car company does not face the same threat. And although Detroit employs a network of suppliers, which would suffer if production shuts down, nothing would sap a recovery and job-creating enterprise like locking up badly used resources in poorly performing companies.

read more | digg story