Home > Norcross.Talk > Archives > 2008 > September > 29 > Entry
DEL.ICIO.USEconomic chaos rules the day
The Atlanta Journal-Constitution
Utter chaos.
Even though it sounds a bit overdramatic, that is about the best way to describe recent events.
That doesn’t even include the headache that is college football. Geesh. And people think we actually need a playoff.
The story begins two Sundays ago. I woke up and sat down with my first cup o’ joe and to get my fill of Sunday political talk. It started with a story on the gas shortage.
Hardly a minute later I realized I had about a quarter tank of gas. Soon, I was on my way to fill up. Luckily for me, I did.
Ever since, just about the only thing you are able to fill up on at gas stations is… caffeine. All the gas stations near my house and during my daily commute were either petroleum dead zones or witness to new levels of road rage, people getting in fights, and cars lined up and down streets creating traffic nightmares.
It was an unbelievable site.
Our governor says this problem is “self induced.” But this is also the same governor who has now had a term and a half to do something meaningful regarding transportation… and been a miserable failure.
Then there is this bailout mess that is basically a result of the whole mortgage fall out.
I have seen and read some economic experts say this plan has to happen or else we’re facing the next Great Depression… while others are saying “not so fast my friend” and some who say that it could create more problems because it would nearly destroy those property values who surround the “bail out properties”.
I don’t know who or what to believe. I do know this…
I, like many of you, pay my mortgage. I have never been late with my mortgage, nor have I ever missed a payment. I didn’t buy a house that I cant afford.
When companies are mismanaged and/or make bad investments - they typically fail. That is the risk of doing bad business. When they are effectively managed and make smart choices they typically succeed. That is the reward of doing good business.
It would seem to me that all this bailout is really doing is rewarding failure. Something this country seems to be doing a pretty good job of lately.
How are you handling all this chaos? Sound off Gwinnett! I know you have plenty of opinions about what is (and isn’t) happening. What should happen?
Permalink | Comments (13) | Post your comment | Categories: Woody Bass
Comments
By Adam Smith
September 29, 2008 7:08 PM | Link to this
Good points Woody, hate to be a grammar nerd, but I think you meant “sight” where you used the word “site”, unless you were stunned by the real estate rather than the spectacle to which you were beholden.
I think the “no bank left behind” bill is like crossing the Rubicon, once we bail out some firms, the hand will stay outstretched, always wanting more.
I make my own money. I pay for my own loans. I don’t ask the government for help, as a matter of fact I give them 1/3 of my income and doubt I will get much in return. One thing I do expect, is that they uphold the Constitution, I can’t find a spot in there where it says Congress should bail out failed non-government entities with tax payer money or indebtedness. It makes no sense to take a loan on the taxpayer to buy a bad loan from Wall Street.
The guy who wants this, Paulson, is the ex CEO of Goldman Sachs, who I’m sure will get the major chunk of this money. This is a baldface shot at looting the treasury by a lame duck president and his buddies as they bail out of the Whitehouse and leave scorched earth behind them.
By Woody Bass
September 29, 2008 8:33 PM | Link to this
Your right… Ive contacted my Editor… Good catch!
I have thought through this whole mess especially with the bailout… that someone was going to have to provide me with a pretty dang good argument as to why this bailout should happen.
So far… that hasnt happened.
By Michael H. Smith
September 30, 2008 12:07 AM | Link to this
A little over a year ago when the Fed pumped liquidity into the market and did a rate cut near simultaneously I knew then they were spooked. The Fed seen something back then in market the members really didn’t like and it scared them, badly. I believe what Bernanke and the rest seen but did not talk about openly at that time is now becoming known to the rest of us. The fact that Bernanke is quoted to be an authority on The Great Depression only make his expressed urgency all the more discomforting.
While everyone was engaged in argument on whether to spray on huge amount of “government $700 billion fix-all” on it or as others said no, no, let the markets work and the market will cure it all just bite the bullet and everything will be fine, a trillion dollars in wealth disappeared today, as the Dow closed down 777 points and change.
Fact is Woodrow, doing nothing really ain’t cheap and this “hope-I’m-wrong-uneasy-I-got” says that when folks get their 401K, IRA, or pension fund statements they may begin to realize what has been said about saving Main Street as opposed to rewarding Wall Street possesses a real element of truth in it. Wall Street traders make money when they sell a stock or buy a stock. Um, while those trillion dollars were vaporizing for many like you and me, the cats fat or lean on Wall Street were all making a killing.
Needless to say, I made a phone call earlier today to Rep. Linder, which I’m sure many others did as well. Unfortunately, I’m sure it was too late for my sentiments to reach him on the House floor even thought he did vote “No” on this bailout package. I’m sure this bailout proposal is not over, as it shouldn’t be. Something is going to have to be done. I don’t like it in the least and like many others I’m mad as hell over all of this mess and I want heads to roll and butts setting in jail before it reaches a final conclusion; because this is not simply about regulation or deregulation or greed or people just not watching the store so to speak. Nah, nah, this is about people committing fraud and breaking the law while no one enforced the law on crimes be committed and prosecuting the guilty. The FBI as it appears is doing that now but they should have been investigating many years ago.
As to what should happen from this point in time, beyond the previously mentioned: The House members need to come up with a better proposal. One which will not fund groups like ACORN and La RAZA, but does give some latitude for loan renegotiation where viable without such advocacy groups being involved or receiving any taxpayer money from this bailout. Any home loan given to an illegal alien should be foreclosed on and all parties involved in those transactions from beginning to the end should face prosecution. Definitely limit CEO pay and eliminate golden parachutes. Perhaps a compromise in doing part government funding and part under the floated insurance idea suggestion rather than all it put on the treasury; but definitely Paulson gets the money in tranches and under a very high degree of Congressional oversight.
Most important thing of all Congress has to do is pass a strategic energy policy that will preferentially and with extreme prejudice create jobs for U.S. citizens which will assure these houses can be resold in the very near term and that the U.S. markets will bounce back quickly.
Senator Herman Talmadge once said, “you can’t borrow your way out of debt and you can’t spend yourself rich.”
It is time for all of us to face that reality, Liberal or Conservative, Democrat or Republican or Independent. This country has been producing mostly paper (debt) for years and most of it is bad paper. Too many dollars have been shipped out of this country and it is time for that money to come back home. Carefully structure targeted capital gains tax cuts are needed where money is “invested to create real jobs” (in this country only) in order to bring that money now is setting on the sidelines and in offshore accounts put back to work in the U.S. market. In time as the recovery and the green economy grows simplify the income tax code and offer older able workers and those rich enough that don’t need social security a program to continue working tax free as long as they do not draw any social security benefits.
Any event we will have to take very prudent actions and very soon to resolve the two most pressing economic crisis facing this nation on finance and energy. Everything else will depend upon it and always the devil will be in the details.
By BW
September 30, 2008 1:19 AM | Link to this
The Free Enterprise system should be allowed to adjust itself without any government input.
The gas shortage down here is a laugh, I just returned from a month in New York and New England where gas is maybe $3.80, more or less depending on the state and not a line for gas in sight.
Glad, I left with with the tanks full, a little off topic, but not far, I took Amtrak, a 1 bedroom suite, three squares, with shower and a great view of our America. We enjoyed it and will do Amtrak over the airlines anyday.
By Willx
September 30, 2008 2:08 AM | Link to this
Daily commute? If anyone can work from home, it should be you Woody. All you need is a computer and and internet connection. Why can’t the AJC get into fuel conservation mode. You’d think a big Liberal paper full of Liberals would have thought of that already. DUH
By Michael H. Smith
September 30, 2008 2:55 AM | Link to this
And another thing Woodrow…
Georgia needs four additional nuclear power plants with updated electric grid to transmit base power including two desalinization plants equal to what Tampa Bay has to supply water for drinking and for the bio-energy agriculture industry that is well under way in the state. If Congress won’t act the State should issue tax exempt energy bonds. With this in place we can do hybrid electric and electric cars and wave at the gas pump for many miles; 100 or better, possibly forever.
And… if we stop paying guest-worker Pedro to starve U.S. Citizen Peter into foreclosure instead to build all of this energy independence while curing the water problems at virtually the same time we might just stop the fatal economic hemorrhage from all those bad-paper cuts, with a mostly private sector free-market solution.
By BW
September 30, 2008 8:33 AM | Link to this
Willx, picking up on you suggested, during the 96’ Olympics, work hours were staggered and people worked from home. Why did they all go back to their old ways and why we can’t go to the 1996 system that seemed to work so well?
By Bubba
September 30, 2008 11:39 AM | Link to this
What gets me is how many elected officials were surprised by the rejection. Heads should roll, sure. I wonder how much of all this was criminal in nature and how much just plain ignorant.
Guess it don’t matter so much, both are negligent.
And who was the genius who called this a “bailout?” Bailout for who? It grates me, the fat cats on Wall Street were committee-izing on which debts to include in the “bailout.” Fighting and scratching, grabbing - almost looked like a Congreesional debate. You bail out a sinking ship. What moron thought that it would cause inspiation to bail out a sick, but far from dying, economy? This was doomed at the outset. It’s like bailing out a boat with a strainer.
Fact is, once again the wolves were asked to provide security to the hen house. This time, they got caught chasing their tails. Now they’re howlin’, but we’re not listenin’. Honestly. Who’s gonna believe this bunch can do anything?
By Woody Bass
September 30, 2008 1:28 PM | Link to this
WillX: My fulltime job is not with the AJC unfortunately. However, I would love nothing more than to telecommute and remind the powers that be REGULARLY that I would like that.
Michael: As is usually the case… very well thought out response and one I expected based upon the topic. I can certainly see why there is so much hub bub about it. What I dont like about it is we know this means an increase in taxes… there is no way we are getting a tax reduction or even worse.. any sort of tax reform at all now or very very unlikely that we will. I just dont see how it can happen. Southwest Gwinnett in particular would get hit hard if it is true it will deplete property values if (or when) this goes through. Ive already contacted Gwinnett Village about it so there may be some write up about it in the future about its impact to the area. There is just no silver lining to this whole mess… its definitly “your damned if you do.. and your damned if you dont” situation as far as I can tell. And I think you know as well as I do.. that we will not see any meaningful immigration reform in the next administration, especially since this is basically the United States of Corporate America, its no longer a government of the people. Essentially… if ABC Company wants this… they get it irregardless if its in the best interest of the entire country. Irregardless if its even Constitutional.
By Whatever Happened to LT the Economics Professor
September 30, 2008 6:34 PM | Link to this
He of the “remain calm, all is well” school of economics?
By LT5000
September 30, 2008 11:00 PM | Link to this
Still here Whatever,
As a matter of fact your mom just earned $5 the hard way behind Quik Trip on Jimmy Carter Blvd. The economy keeps rollin’
LT5000
By A well thought-out rebuttal from LT
October 1, 2008 9:19 AM | Link to this
Just the kind of predictable, juvenile response we’ve come to expect from you LT.
When the battle of wits is lost, fall back on an infantile attempt at a put-down.
What’s wrong, there’s nothing in your MacroEcon textbook to help bolster your argument? Independent thought and insight required and you’ve never tried that before?
Just think, Rick Badie foresaw the oncoming collapse of the economy back in January and he’s just a……what was it again?….. oh yeah he’s a blubbering something-or-other.
But since you’ve been a staunch supporter of the soundness of the economy, what does that make you?
Oh yeah, you must be an idiot.
By woodys mom
October 6, 2008 11:10 AM | Link to this
i have thought about what is going on with everything from the gas shortage to wallstreet to the ballout. there isnt a pat answer to fix everything but to me i saw this coming along time ago.. when companies started sending our jobs overseas “quote” to save money for the company.. it seems to me that they didnt see what it was doing to our country.. when people loose jobs at the rate they are here whos going to have money to buy anything or pay for services..
the one answer that no one has mentioned is why not give the companies tax breaks for not shipping jobs overseas.. and tax the crap out of the ones that do.. that will bring the jobs back home where they should be. people dont realise what is being sent overseas.. all of their personal information from amount of money they have in the bank to what they owe and what they own and where they live.. to me the best answer would have been not a bailout and put our county in even further debt but put more people back to work.. why wasnt this put into the bailout package? i think we need to clean house.. very few of the elected officals have lived up to what they said they would do..