Mid-term Election Thoughts

All right--I admit it.  The party of Thomas Jefferson blew it.  In 2008, it looked like it would transform the nation.   Money filled their coffers;  voters of all ages and races turned out in unbelievable numbers with unbridled exuberance.  The new president would be post-partisan and post-racial.  A filibuster-proof majority was sent to the Senate.  And now, November 1,2010, twenty-four hours before the mid-terms, all that feeling is gone.  The Democratic domination in 2008 has resulted in a wave of lethargy and the sense of unfulfilled expectations.
What caused this? The answers would fill a book and this is just a blog post.  But the short list would include the partisan leadership in both houses of congress on both sides.  There wasn't REAL leadership.  Just business same as ever and post-partisanship be damned.  The R's just said "NO" ; the D's never pushed the president's agenda.
So it's time to vote again.  In my state, the choices are pathetic.  No policy differences between the candidates for Congress.  If you didn't mark "D" or "R" beside their names you couldn't tell which was which.  For governor there are two women (we'll get our first female governor): one is tarred with allegations of her own corruption, the other tarred with the corruption in the present administration that caused our present governor to turn down a cabinet post.  Nice choice there.......
Normally, I might not even to bother to vote in this kind of an election.  But I am going to, and I am voting to support what I voted for in 2008----CHANGE.  Not Tea Party or Glen Beck B.S. but the change we need.  The change Obama promised.  Let's look at the record:

End of Partisanship----didn't happen, not because the president flubbed it but because the Republicans ignored the gestures and Reid and Pelosi did not push his agenda nor did they make the kind of attempts at reaching across the aisle that the president did.
Health Care Reform---again, Congress dropped the ball and gutted what could have been one of the defining pieces of legislation in the 21st Century.  There's much good in it and it deserves to be revisited and improved.  Repeal is moving backwards.  And a reminder to those sign holders--if the government took its hands off of "your" Medicare, there wouldn't be any Medicare--it's a government program, you fools!!!
WAR--"huh, good Gawd y'all, what is it good for?"(Edwin Starr) Obama has fulfilled his promise to wind down Bush's war of choice in Iraq.  He has escalated the effort in Afghanistan; unfortunately, because of the mis-begotten Iraq conflict, it's too late to destroy Al-Qaeda's structure, which has moved to Pakistan and Yemen.  But he has promised an end there as well in 2011.  Guantanamo needs to be closed but I think congress may need to be involved there to craft legislation to legally detain or try the terrorist suspects outside the present legal strictures.  Seems with terrorism the right to presumed innocence and illegal seizure, among others, are not applicable.
The Economy----Obama's policies probably helped avoid a repeat of the Great Depression.  Unfortunately, they did not go far enough to stimulate rapid growth and alleviate the painful job losses that ALWAYS follow financial melt-downs.  Read any economic history and you will understand this fact.  What the nation is going through is nothing new.  And cutting the deficit and taxes will NOT help---these policies are shown to worsen the effects of the crisis and prolong recovery.  Ask Japan--do we want a lost decade of economic stagnation and deflation like they had/are having??

So please go to the polls tomorrow, November 2nd, and vote with intelligence--not with sloganeering or nice catch-phrases dancing in your head.  Barack Obama was elected to provide change.  He thought he had allies in congress but political gamesmanship trumped the post-partisan era Obama attempted to introduce.  Let's use these mid-terms to send people to Washington who will help the president fulfill the dreams we all voted for two years ago.



 

Lack of Money

Lots of buzz about the deficit. There's a good editorial in today's N Y Times about it. And there's an advertisement to sign a petition to renew the Bush tax cuts. Former senator turned actor Fred Thompson invites you to sign on to one of the very policies that resulted in the recession from which we might only be now emerging . Fred, stick to your acting!!!!

I think I'd put more faith in the opinion of the NY Times or the reigning nobel-laureate in economics, Paul Krugman, than in some washed up former senator and actor whose 2008 presidential campaign was a farce marked by mumbling and ineptitude...........

Back to the Future????

We've long thought that it takes extremes to move the mass. In the 60's the tension between groups like the John Birch Society and the Students for a Democratic Society polarized debate about the war in Viet Nam and some social issues. This dichotomy of ideas influenced the end of the war and the domestic policies of LBJ--the Great Society which incorporated civil rights and Medicare into our society. The mass in the middle needs the radical fringes to motivate it.

But what happens when those radicals become the voice of the people in a republic like ours?? What outcomes can be expected when the radical fringe assumes control?? We poked a little fun at the Hutaree Militia but the underlying threats posed by religious cults and right wing domestic terrorists is palpable. Remember Jonestown and Timothy McVeigh. A conservative group called Guardians of the Free Republics is under investigation for sending threatening letters to governors.

Most of these groups, and others in the conservative movement, rail against the growth of so-called big government. The latest documents from the Guardians talks about returning to the pre-1933 form of government. Let's see, wouldn't that be a return to the Great Depression??? Wonder if they'd provide dime a gallon gas and $.07 loaves of bread as well. Somehow we believe the circumstances of the world economy wouldn't permit that, nor would people work for the same wages. The poverty threshold in 2008 was higher than the average wage in 1932!!

The federal government grew with jobs programs, Social Security, and other innovations to get the country out of an economic meltdown in the period from 1932-1934. (In truth, full recovery and full employment came about because of World War II.) But the government interventions in the '30s moved the economy in the correct direction. The recent economic slowdown was exacerbated by the shrinking of government regulation since the 1990s. Wasn't the Republican Party, the conservatives led by Newt Gingrich and George W Bush in charge of the economy and government then? Isn't the lesson of history that less government intervention in the economy a recipe for disaster---see the history for 1929 and 2007 for examples.

So let the tea-partiers continue their tea-bagging and let Rush bombast to his heart's content. But don't for a minute believe them----we would NOT be better of if we revisited 1932!!!!!

State of the Union 2010

So the first state of the union address by Barack Obama, originally believed to be scheduled for Feb. 2, has been the victim of constituent pressure. Rather than pre-empt or, worse yet, compete with the season premiere of Lost, the prez and team have scheduled the big speech for Wed. Jan. 27. Bending to special interests already.....And think of the poor speechwriters. Seven seasons of West Wing have taught us all about the angst of the White House staff in crafting this annual message and policy statement. To move it forward a week would have sent Josh and Sam into apoplectic fits and a long stay in a sanitarium.

In a previous post, we said we'd comment on some of the political news, so here we go---from the perspective of some rather intelligent canines---the Pirate Dogs!!!!

The first subject is hubris. The Democratic leadership (or lack thereof) embodied in Nancy Pelosi and Harry Reid were so certain they could use their numerical advantage and senatorial super-majority to ram through anything on their agenda. In the course of attempting this one party take-over of the republic, these two have totally undermined the bi-partisan goals of their party's leader---the president. So the Republicans do a drug war thing--"just say no"--- and all the economic recovery and needed programs like environmental protection and health care become subject to the pork needs of every Democratic denizen of the halls of the capitol. These "leaders" of the Democratic party are so inept they allowed a Republican victory in a Massachusetts special election for the Senate seat that has been held by a Kennedy since 1952!!!!! Scott Brown ran the type of campaign that might entice any voter. If he eschews his "Number 41" b.s. and actually does what he said---represent the citizens of MA first, he would be a breath of fresh air in the Senate.

Next we have Pat Robertson saying Haiti's deals with the devil caused the tragic earthquake. What is it with "Christians"???? Now the soldiers in the Middle East can't aim their weapons properly because all the gun sights have biblical inscriptions on them and they are being recalled and replaced!!!! Or at least removed. Did it occur to these people that part of the rationale for the Islamic jihadist is their perception that they need to defeat the Crusaders, i.e., Christians, in order to preserve their life style and religion. Aren't they to be allowed the same freedom of religion as the citizens of the United States??? Didn't the King of England in 1776 call the Sons of Liberty "terrorists"?

Scandals----aahhh, what would American media be without them. Around the clock Tiger affair coverage, Mark Sanford and the Argentinian/Appalachian deception. Now John Edwards has admitted fathering Rielle's daughter and the National Inquirer's editorial board is going to submit their coverage for a Pulitzer prize, that most coveted award for SERIOUS journalism!!!! The National Inquirer---home of "I was an Alien Love Slave" exposes.......People, are you there?? Thank heaven they are "ineligible". What a fiasco that would be-----maybe even worse then McCain picking Palin !!!! Or thinking Reid and Pelosi could steer health care reform through the legislative process and have it emerge as a really positive benefit for the American people!!!

Next, let's discuss campaign finance reform. Now that the Supreme Court has overturned parts of McCain-Feingold and opened the door to limitless contributions, maybe it's time for real reform. Let the federal government take one dollar from each tax return and put the money in a pot for the presidential election. The money would be divided equally among all candidates appearing on the ballot in 26 states. (26 states is one more than half the total number of states. Some states have very low filing fees which encourage very marginal or fringe candidates to enter their primaries. If candidates can file in at least 26 states this might prevent public funding for the extremists and wackos.) Any additional expenditure would be illegal and we wouldn't want a criminal for president, would we?? No fund raising is permitted in local elections. Each office seeker should pay a filing fee and get out and meet the voters and convince them of their worthiness to serve. Just like the Founding Fathers had to---you didn't see George Washington or Thomas Jefferson doing polls and paying political advisers!!!!!!

Finally, the BIG ONE---health-care reform. Now Paul Krugman has some ideas in his column today but how about this----let's make the plan that all the government officials, Senators, House members, and federal employees have available to the general public?? Even a Republican couldn't vote against that without having to answer charges of elitism. What's good for our bureaucrats and elected representatives should be good for all the citizens, right???

New Pirate Dog; Old Argument

Let's do the old argument first----There was a piece on BBC World News America this evening in which a gentleman from Oklahoma said the government was going to spend us to death and should just give the money directly to the people.  We've heard this since Paulson and W. started the TARP last year.  So, let's do the math---Let's say the government allocated $1-trillion to just be handed out to each person in the US.  That should really help us all out, right????  Well, $1-trillion divided by the population of the US, which according to the US Census Bureau population clock at about 6:00PM MDT on 5/14 stood at 306,429,317, is $3263.40 per person.  That'll go a long way to ending the downturn, won't it???  And I'm sure it would more than replace the income of those who lose their jobs as companies and local governments go bankrupt or default on payments.   

Now for the news-----We have adopted a new Pirate Dog.  Bertie, aka Roberto Fernando el toro perro, is a rescue from the local oxymoronic kill shelter.  I had wanted a chihuahua since moving here and this is as close as we have gotten, without paying a breeder.  El toro may have a little rat terrier mixed with the chihuahua but he's sooooo tiny he makes Weets look big.

In this picture he's lying in the hall next to a chip stick that's about as long as he is!!

He makes the percentage of male household members 30%.  The Captain has been slow to accept him, and Weets still hasn't. 

But the Captain is pretty mellow all the same as long as this newest crew member follows orders.

 The newcomer has bonded with First Mate Leny.  They even share chip turks and chip stix.  He's still a little too small to spend a lot of time in the Nargle however.

It's only been since Monday that Bertie joined us and he's already hassling Klingon Kats and learning the routines of life as a Pirate Dog!!!

Republican redux

So the Obama budget passed both houses of Congress by the biggest margins since the 1990's.  And the Republican counter-budget had 38% of that party's members vote NO.  I find it hard to understand how tax cuts for the upper-most 1% and a five-year spending freeze are good for the present economy and the situation in which most Americans who aren't super-rich find themselves.   Haven't we just been through eight years of these policies that didn't work?? And how does Mitch McConnell, Senate Republican leader, seize the moral high ground on spending?  Wasn't it the Bush administration with a Republican majority in BOTH houses of Congress that turned a multi-million dollar surplus into a trillion-dollar deficit and that's with the Iraq and Afghan wars OFF THE BOOKS---not included in the budget numbers!!!!  A significant part of the present budget's deficit is putting those conflicts' costs into the budget.

So I guess it's Republican Red Ducks, not redux.  And Sarah the avionic wolf butcher wants to have a special election in Alaska now that Ted Stevens has had his conviction vacated.  Wasn't it the Justice Dept. under Bush that blew that case so badly??  Might be time to bring back the Whigs---after all, slavery has been abolished legally and the Union has been preserved---Now the Republicans can truly say "Mission Accomplished."   And go away.................

And after the latest tragedy in Binghamton NY, isn't it long past time we made assault weapons and other forms of automatic weapons illegal??  After all, I don't know of one hunter who thinks it's sporting to go after deer with an AK-47. 

Of Note

Just a little item across the bottom of the screen on MSNBC this morning----Hershey is going to make the Peppermint Patty into the Peppermint Pastelillo.  The company is shutting down the P.P. production facility in PA and moving the operation to Mexico.  Oh well, what the hell, it's only 300 additional jobs lost in PA.  Just the type of responsible corporate behavior that will assist in lessening the pain of the current recession.  So let's keep saving the banks and other corporations with taxpayer dollars.  I'm not naive enough to argue that businesses shouldn't make decisions based on the interests of their shareholders and in the interest of maximising profits.  But a little social responsibility must enter into the calculations.  WE really DO NOT need more layoffs!!!!  Let's nationalize the banks, set up a couple of "bad banks" to dispose of the toxic assets, then return the banks to the marketplace where they must sink or swim.  Same with the auto industry---let them present a viable survival plan or let them sink.  The President is working very hard---too bad a bunch of politicians and corporate executives think this is still a game.  And the middle class is the loser.

Of Pirates and Spinners

Captain 'Roid is really pissed off. When last seen, the intrepid Captain was begging her mother to make a new flag for the CPS Nargle proclaiming the "End of the United Nations." According to a report on tonight's BBC America newscast, the UN has signed some declaration allowing countries to pursue the pirates onto Somalian land. Now admittedly, Somalia is a failed state and its sovereignty is open to debate. But to allow other countries, including Iran, China, Great Britain, and the US (talk about politics and pirates making strange bedfellows!!!!) to invade in pursuit of the pirates?? Hopefully all those military men will review Blackhawk Down before doing the same foolish thing.....And why does the US, beacon of religious freedom and defender of the right to democratic processes, so fear an Islamic government in Somalia?? Isn't Islam one of the "Great Religions" alongside Christianity, Judaism, Taoism, Buddhism, etc?? Or is all this "Islamic terrorists are radical extremists" just a smoke screen and the US is really at war with Muslims-----shades of Richard the Lion-Heart and the Crusades...........

Do you remember The Spinners from the '70's and that massively "great" song "Rubber Band Man"?? Actually, I detest that song but all the "oldies" stations seem fixated on it.

But those aren't "the spinners" I'm writing about. I'm thinking about the auto-bailout/union busters and whether the Kennedys are more deserving of power as a dynasty than the Clintons, if MSNBC be believed.

GM and Chrysler are doing worse than Packard did in the 1950's. They hemorrhage cash, blowing through billions a month. Their management has been about as in tune to the needs of the average buyer and the concerns about the deleterious effects of automotive emissions on the decaying of the Earth's atmosphere as Bush and Cheney have been to telling the truth about Al-Qaeda in Iraq, let alone the total misinterpretation of the WMD intelligence.
Now, depending whom one reads, we are either headed for, or are already in, the worst economic downturn since the Great Depression. The government has bailed out the financial fat-cats but balks at doing the same for the auto-making fat-cats. The problem is that there are a lot of not-so-fat-cats that would be a lot more hurt by the death of the Big 3. About 1 in 10 American jobs is tied to the auto industry---from parts providers to transportation firms to the workers at the car plants themselves. If we want to see Great Depression type unemployment numbers (like around 25%), then let's allow the Big 3 shut down and add that 10% who lose their jobs to the present 11% without jobs. (I realize the current "official" unemployment rate is about 6% but that does NOT include part-time employees who'd like full-time jobs or those who have stopped trying to find work. That number is over 11%.) That's 21% unemployment. Wouldn't take many, if any, more Citibank job cuts to put us well over that 25% threshold.

But some Senators blame all the failings of the auto industry on the wage disparity between the union workers up north and the non-union laborers in the foreign plants south of the Mason-Dixon line. Taking a real crisis and scapegoating people who will lose their livelihoods to avoid taking action while changing the focus of the argument to something totally non-related is major SPIN!! Even if a UAW member makes $71.00 an hour, that's only $150,000/year!!! And that's nowhere near what an executive at either an auto maker or a financial firm makes!!!! As a matter of fact, it's 1.5% of the 10-million dollar paychecks and bonuses common in executive suites or a Major League Baseball locker room. So let's not blame the union. Deny the bail-out if you don't think management can turn around these companies but let's stop the b.s.

So Caroline Kennedy Schlossberg threw her hat into the ring for the US Senate seat formerly warmed by former first-lady Hilary Clinton (all this assumes she gets confirmed for Secretary of State and resigns). Caroline has a lot going for her. First, her maiden name is Kennedy. She's the only surviving child of JFK and Jackie. She's a major upgrade in looks from Mrs. Clinton and I think she's also better looking than Sarah McPalin (remember her??). So give her the job already. But first we need to watch interminable hours of every Clintonista with an axe to grind and all the MSNBC "analysts" and commentators who need to justify their salaries since the election is over stir up controversy. Who cares if Andrew Cuomo is divorced from one of Caroline's cousins?? What possible effect does it have on her qualifications for the Senate, which are about the same as Hilary's when she was first elected----a member of a family that was in the White House as well as being a lawyer. And Caroline even had a pony at 1600 Pennsylvania Avenue!!!!
So enjoy "Rubber Band Man" when you hear it and wish we only had to deal with the musical Spinners instead of the bozo spinners masquerading as learned gentlemen. Hang on to your money and hope January 20 comes faster. But keep your shoes handy just in case...........

Bail---in or out????

How about them Somali Pirates?????????? 12 ships in 7 days from an area of the ocean patrolled by the US Navy, Her Royal Majesty's Navy, the EU, the Emirates, and Kingdoms of the Gulf!!!! YeeHAW!!!!!!!!!!! The Pirate Dogs hope they get to keep their loot and that they use it to improve the standard of living in the Horn of Africa, one of the poorest and most badly governed places in the entire world.
I need to correct the last post---There were a couple of inconsistencies in the sources. Apparently the ship was taken in the Gulf of Aden and is now anchored in the Indian Ocean some 450 miles from Mombasa, Kenya. Capt. 'Roid apologizes for the misinformation.
Now that the Somalis have bailed out their ships, how about the bail-out in DC of the BIG 3? I thought this was a capitalistic nation, not a welfare state. If I ran my business with as little forethought and lack of planning as that exhibited by the CEOs of the Detroit mega corporations, I'd deserve to be fired or run into bankruptcy. Now I fully appreciate that we cannot allow the auto industry to go the way of the airlines. There's always places to go and someone to take the risk and fly there. No sane person would buy any major asset from a company in Chapter 11. Cars last years and anyone purchasing one wants to make sure he can keep his investment on the road. But a free ride out of their hole is the last thing we should support as taxpayers or citizens.
I believe that successful people should get the fruits of their hard work. And executives who can't formulate a decent forward-looking business plan should go back to the business correspondence school they came from for a refresher course.
Memo to our representatives----
NO BAILOUT!!! No LOANS to the auto Industry without STRINGS!! WE THE PEOPLE need to see how OUR money will be used to sustain the industry and IMPROVE the performance of its products----MORE MPG, MORE environmentally friendly, NO MORE loans or taxpayer dollars after this ONE time.
After all, if a bunch of Somali pirates can outperform the navies of the allegedly advanced economies, our congress, senate, and captains of capitalism should be able to give us some bang for our buck in a car that gets 50-plus MPG, is safe and fun to drive.
Let's get our people in WaWa DC this message!!!!!

Economics PD3

Most of the attention the Pirate Dogs pay to economic issues consists of sitting in the kitchen whenever a person goes there, hoping for food to be either given them or dropped on the floor where they can scarf it up. Pretty simplistic and operating at a very basic level.

Now the three of them, joined by my wife and I, watched the President-elect and the stage full of economic heavy hitters do a press conference. We liked the part about the shelter dog the best---the Obama girls really deserve a Sharprador (even if Leny would out-cute them) and wouldn't the Humane Society so benefit from the exposure!!! But the serious issue of the economy did get us thinking......


The auto industry gets a lot of attention. It did in Mr. Obama's remarks before the media. It is probably, after the financial sector, the most needy segment of the manufacturing sector. But a bail-out or loan package MUST be tied to the long-term environmental needs of not only the country but the planet. There were autos that could get 30MPG twenty years ago. This is no longer a goal but an attainable standard. It's our belief that any aid package to the car makers have at the very least a fleet fuel economy standard of 50MPG or more and that this standard be attained within two years!!! Also the car makers should be encouraged to dedicate themselves to improving their core competencies, i.e, building efficient,competitive automobiles, and discouraged from ventures into mortgages and banking. GM Bank and Ditech (mortgages from GMAC) are examples of this phenomenon. If the talent is diluted into so many ancillary ventures, how can the manufacturer be competitive with the foreign companies who keep their eye on the ball. A certain financial acumen is necessary to assist buyers in financing their new (and probably over-priced) vehicle, but a mortgage company and a bank??????????

So by all means, let's put together a stimulus package. And let's support our domestic industries, the few we have left. But let's make sure that this support is aligned with the longer term goals of energy independence and reversing the damage we've done to our planet.

Syndromes

Syndromes seem to be in the forefront around here this week. The Pirate Dogs' look-out has SDS, the Captain has SDS, and even I was SDS. And they're all different syndromes!!!!!!!!

Weets is part chihuahua so she is very noisy and aggressive---Small Dog Syndrome.
'Roid has the foulest breath in the western world, the result of a peculiar and disgusting habit I won't go into here--Stinky Dog Syndrome.
And this blogger was fairly radical in his younger years, even joining Students for a Democratic Society in college.
So why all the "syndrome-icity" this particular week??
How's your 401-k? How's your trust in the sitting government to get us on the right track? If you have any syndromes, now's the time to give them free reign. Loosen that halter and give them their head.



I think I've decided on the elections. Paris Hilton for Prez, Tina Fey for VP. (Although Gina Gershon does a good job as well.) Paris makes sense on the environment and the pool-side shots could be inspiring as well as profitable for the government. Sales of her exploits would dwarf the tax cuts of either main-stream candidate and could result in a surplus. Tina does a better Palin than Sarahcuda. Only problem is after she gets elected, where would she get her material? No worry though, the current VP candidate has just regurgitated the same lines since she was nominated. Is there really that big a difference between 6 weeks and 4 (or 8) years??
Hey, after this week we need to exhibit a sense of humor more than ever.

In a more serious vein, I'm currently reading Nixonland by Rick Perlstein. The sub-title pretty much summarizes the premise--"The rise of a president and the fracturing of America." I'm only about a quarter of the way through the 800-plus pages but the parallels from the 1968 campaign to today's are striking and, for me, terrifying. I have watched film of the current Republican rallies where either of the candidates whipped up the crowd to the point of denouncing the Democratic nominee as an Arab, a terrorist, or, even worse, calling for his head. First off, pandering to racism and fear is Nixonian. That's a large part of how he won. The "Silent Majority", "law and order", the menace of racial warfare. Have we learned nothing in 40 years? Watching McPalin is remembering Tricky Dick and Spiro. I've long felt that the Baby Boomers squandered their potential with their pursuit of riches pre-empting the idealism of the counter-culture. Now we pay for it with the Republican attacks that, let's face it, are racist without saying that word. I've seen comments on other blogs where people wrote about their fathers saying "Good, they shot another Kennedy" about RFK's assassination in 1968. I can remember comments about how "that uppity nigger" Martin Luther King got what was coming to him, also in 1968. I get the same feelings of foreboding listening to some of the McPalin supporters today. And I try to remember that "the only thing we have to fear is fear itself" but still there's this thing in he back of my mind..............a motorcade in Dallas, Nov 22 1963....

See http://zeesgowest.blogspot.com/ post for October 11 for a powerful video. We can take back this country. We can undo what Nixon spawned and W has promulgated.

WE ARE THE ANSWER!!!!!!!!!!!!

Someone Please Tune In the Picture

I see more ads for Ditech mortgages (from GMAC) and GMAC Bank than I see for GM cars. So GM is now earning more from the financial sector than from manufacturing?

We owe ever more to China and India, and the petro-dollars we send to the Gulf of Arabia are now being used by Gulf countries' sovereign wealth funds to shore up our banks!!

The Economist magazine, hardly a left-wing publication, stated "The financial-services industry's share of total American corporate profits rose from 10% in the early 1980's to 40% at its peak last year. By one calculation, profits in the past decade amounted to $1.2 trillion more than you would have expected." And this was from the Sept. 20, 2008 edition, before the meltdown Monday, Sept. 29!!!!

Tie these items together and it's easy to see why the US is well down the road to being a second class power. Financial engineering has replaced real engineering. Anybody else think this picture needs adjusting??

On a more hopeful note, Captain 'Roid has been following with interest the saga of the freighter that the Somalian pirates captured. Seems there's about $40 million worth of old Soviet tanks and artillery aboard. It was headed for Kenya. The Somalis want a $20 million ransom for it. Our captain would love a share of that money to help her parents retire, but the gleam really comes to her eye when she thinks about her and the rest of the Pirate Dogs sailing that ship up the Potomac, taking over Washington, and helping all of us........................

Pirate Dog-onomics

So first the meltdown, then the deal, then the no-deal, then more negotiations ad nauseam while my retirement funds shrink and shrink and shrink.........

The Pirate Dogs just don't get it. For them, economics is simple and transparent. Their favorite treat, home made bone turks, are kept in a CLEAR GLASS jar. 'Bout as transparent as it gets, right? When they want a treat, they let us know either by barking, pointing, or doing something obnoxious to get our attention, then repairing to the kitchen and staring at the jar. Simple supply and demand. They demand bone turks, we supply them. No derivatives or CDOs here. Just basic macroeconomics at work.

Maybe we should send the three of them to Washington DC???

Bubble-licious

So the financial bubble is bursting. The housing bubble has supposedly already burst. But these are so intertwined that there is probably more pain coming. How did we get to this point?



As I understand it, the housing bubble was inflated, at least in part, by low interest rates and easy credit terms. Remember the days, not so long ago, when a buyer was required to have 20% of the purchase price for a down-payment on a house. The principle and interest on the mortgage loan could not exceed 25% of their gross monthly income and the buyer's total monthly payments had to be less than 33% of that income. Remember when real interest rates were positive numbers? Thanks to central banks, many interest rates today are less than the rate of inflation. That makes borrowed money cheaper than the money earned by trade or work. Add new "mortgage products" like interest-only mortgages and adjustable rate mortgages to a loosening of lending standards, i.e., the ability to repay the loan, and people can obtain more house than they can afford to pay for in actual terms. Good for low income and young buyers until the rates adjust and their payments increase faster than their wages which is the scenario over the last seven or eight years.



So now the chickens have come home to roost. These ill-conceived and improperly vetted loans have gone into default, there's a glut of over-priced McMansions on the market. Real estate prices are plummeting, probably searching for a sustainable level based on real economic data about wages, output, and productivity. And the geniuses of financial engineering have packaged all these toxic loans into "financial instruments" so devious that experts like bond and credit ratings agencies, as well as the bankers and financial traders, can't assign the risk to those to whom it belongs. So taxpayers will pay for all this with a government bail-out so the system doesn't totally stop functioning. It would be much worse if the credit markets tighten for small businesses and companies that need some credit to keep the doors open.



But let's also address the real causes of these bubbles. The lack of transparency in many "financial instruments" needs to be addressed. And the entity charged with this regulation is the federal government. The public does not need to own Fannie Mae, Freddie Mac, or AIG. These companies, as well as the others still operating in the financial sector, need to perform their function under their charters in the market according to the regulations governing what is acceptable in the markets---investing, not gambling. Proper vetting of applicants for loans. Transparency in investment solicitations.



Congress should not pass the bail out without asserting its responsibility for economic oversight and without guarantees that it will indemnify the taxpayers against a further melt-down.