Who Should Pay?

After a meeting of the INKWELL 3, we decided to try and answer these questions for people. If you are a homeowner you have been watching the drama unfold with the housing markets and the sub-prime thing. Well, what is happening?

The Fed lowered its discount rate to banks in an attempt at heading off the collapse of the banks and such. IMO, this move could create what is known as a “moral hazard” to economists. This occurs when the government rescues people of institutions from the consequences of their judgement, bad judgement. The bad judgement was that of the hedge funds managers, who invested in the sub-prime market without doing their homework, because the market was so lucrative. By cutting rates, the Fed is encouraging these funds to continue to make risky and faulty investments.

Another problem that will soon show its ugly face is a drop in the housing markets. Home prices fell about 3.2% nationwide and could drop as much as 10% before the thing is over. But the government is playing the same game that they played with the Savings & Loan crisis in the 1990’s. When the government absorbed the bad debts and stuck the taxpayer with the bill. in the long run the average taxpayer will be paying the price of the greed of the funds. Basically, the government would be bailing out hedge funds for making bad decisions.

Once again, I ask , where is the free market in this? The taxpayer is just subsidizing the wealthy, while placing themselves in a position that they cannot extract themselves from anytime soon. The people need to pull their collective heads out of their butts and see just what is being done in their name.


08 Sept 2007

Professor’s Poll Watch

This this was just a trial section and if I deem it to be worthless I will make it disappear, GITMO comes to mind. This week I will post polls on the Repub side of the campaign. In national polls Mitt has finally broke into double digit approval; he now is at 14%. He is third behind Rudy at 32% and Fred boy at 19%.

I still am amazed that Fred has been in second place for awhile now and he was not a candidate until this week. Repubs are not too damn thrilled with their choices, it appears.

Seems that scandal just really, really likes these guys. Why? Craig thing, Newt misleads donors, Fred in a medicare thing, and the beat goes on. They are handing the campaign to the Dems. The way this whole campaign season is going I would say that there is a possibility that the voter turn out will be one of the lowest in a very long time. Something will have to be offered to the voters to get them excited again, and I see nothing so far.


Political Quote Of The Week

Saturday and all is well in the state of confusion.

Political language — and with variations this is true of all political parties, from Conservatives to Anarchists — is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.
George Orwell,

A smart man!