Financial Crisis and Elections
By Harry (10/28/08)
I was ill most of last week and stayed home. Consequently, I've had a lot of time to watch the various news channels and get annoyed.
I was against the various bail outs - and still am. The government has essentially become the major stockholder in all the major banks. The government picked and chose who they'd help and who'd fail - AIG and Bear Stearn vs Lehman Bros. The $700 billion bailout plus AIG and Bear and some of the others put the total coverage over $2,000,000,000,000 (that's $2 trillion)!!!!
And the stock market is still down 2000+ points, housing prices continue to fall, foreclosures are up, all since the bail out. The globe has gone into recession and Iceland's banks have failed.
I've been amazed as I listen to people be interviewed about the housing crisis - things from "I never read the mortgage agreement" to "I didn't understand what an adjustable rate mortgage was." You don't know what adjustable means???? You signed a multi-hundred thousand dollar debt contract and didn't read it???? Where was your closing attorney? - he/she is supposed to be watching out for your interests.
And then the flippers. They bought a house as a quick-turnover investment, fix it up a little, hold it a few months and reap a big profit thinking they'd never have to deal with their ARM. Then the bubble broke. We've been hearing for a long time the bubble bursting was imminent and it even built slowly over a couple of years. If you got caught - shame on you.
And then the no-money-down crowd. I want to buy a $750,000 house with nothing down on my $50,000 salary. The mortgage company's fault - yes. The government's fault - yes. The individual's fault - yes. My fault - no.
But now, listening to the TV this week, I'm ready to pull my hair out.
There are still ads for car loans 0% down; home loans 2-1/2% down. The government bailout has allowed/encouraged bad behavior to continue. The greedy have learned no lessons, except that if they fail the government will not let them fail.
The Democrat plans (announced this week) for the country after they win the election:
1. Remove the tax break on contributions to your 401K. (To be fair and balanced - McCain wants to tax your health insurance.)
2. A NEW Payroll Tax to insure your salary, so if you change jobs to a lower paying salary the government will make up the difference up to 50%. Cool - I retire in 2 years, 10-1/2 months, and the government will make up my loss in salary when I start pumping gas at the station up the corner!
3. Reduce the tax rate on trial lawyers - I'm sure everyone feels their pain.
4. $845,000,000,000 ($845 billion) additional money in Foreign Aid.
Meanwhile we keep hearing about 95% of the population will get tax cuts and pulling out of Iraq will pay for all this. Don't forget - the Iraq war has been deficit spending. If we shift that money to other programs, it is still deficit spending. See! That degree in mathematics wasn't wasted!
Plus about 40% of the population doesn't pay income tax. But they are supposedly entitled to a tax rebate because they pay payroll "taxes." Well, most payroll taxes are NOT taxes. SSI is social security insurance, so you are paying an insurance payment, and since SSI is now used as a federal retirement plan, it's a retirement pension contribution much as many of us pay into pension plans and are not eligible for social security. Unemployment insurance is also an insurance payment. Even the planned new payroll tax to insure your wages is an insurance payment. So the only real payroll taxes are federal and state income tax. Giving "tax breaks" to people who don't pay taxes is called public assistance.
I am so tired of hearing about Bush doubling the national debt (which he did - mostly paying for 2 wars, Katrina, California fires, Midwest floods, Southeast droughts) and Clinton's budget surplus. The national debt went up approximately $2,000,000,000 ($2 trillion) under President Clinton, which by the way, also almost doubled the national debt then. Comparing a budget surplus to the national debt is like comparing the balance in my checking account to my total debt (including mortgage, car payment, and credit card balances.) Apples and oranges.
Standby for financial help from the NJ governor - Jon Corzine (D-NJ) - the Goldman Sachs wiz. Under him NJ has added a death tax - you die in NJ you owe the state $30; he increase the sales tax to pay for a tax rebate, and we've added sales taxes to some surgeries. To help our nearly bankrupt situation - he was going to close state parks to save $4 million while building a new state park for $87 million; he was going to close the NJ Dept of Agriculture - in the Garden State! - to save $4 million while costing the state $10 million in federal aid. NJ is in the Top 10 for worst financial situation. Corzine is hoping to become some financial guru in the Obama administration. Many New Jerseyans will be happy to see him leave the state. But standby for that financial wiz to take the helm of the federal finances. And by the way - under Corzine - NJ has helped one of its major underprivileged groups - teen girls (16+) with small breasts may now get breast enhancement surgery without parental consent. Thank God!
I have to get a word in on gasoline - while the national average is $2.77 per gallon, here in NJ on this past Monday, 10/20, I found prices ranging from $2.57 to $4.89, yes a $2.42 difference in the price of a gallon of gasoline in a state that's roughly 180 miles long and 65 miles wide. (The next highest after $4.89 was $4.19 - both in Summit.)
As the government increases taxes to give to the "poor" (like trial lawyers) people have less money to give to charity. I know as my expenses goes up, (taxes, insurance payments, gasoline) I have less to give to charity. Personally I'd like to decide what charities I'm going to give to as opposed to the government taking my money and giving it to who they think needs it the most.
I was most disturbed when the news (last week?) said VP candidate Joe Biden, Millionaire, donated approximately $3600 to charity over the last 5 years. I donate that every year and I don't even make $100K. All these rich fat-cats with their great ideas should start giving some of their money to the poor and let me spend mine money as I see fit. I agree with them, giving to the poor is a great thing, a corporal work of mercy, and they should try it sometime. Just think of how much good could be done if Joe Biden donated $7000 a year to charity instead of $700. Biden, Kennedy, Obama, Pelosi, etc, all much richer than I am, should give from their excess to help the poor. A camel will fit threw the eye of a needle before a rich man will enter the kingdom of heaven. Charity should not be mandated by the federal government.
Off the subject again - I'm tired of all these pro-abortion, non-charity-giving, the Most Blessed Sacrament receiving despite a Bishop issued ban, public people identifying themselves as strong Catholics. They are an embarrassment to the Catholic Church. Paraphrasing, "There are many who will say "Lord, Lord" but I will say "I do not recognize you"."
As we grow closer to the election, I see neither party helping the financial situation nor helping Americans. George Washington was correct in his Farewell Address, paraphrasing - if we develop parties, politics will turn into a game with each team trying to win and neither caring about the nation. The Real GW was right. And while many thought Ron Paul was a nut, he too turned out to be correct.
May God bless us and the USA. Pray for good leadership in this election.
Harry
Liberty Corner NJ
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