Chicago Parking 101 from the expired meter.
Wednesday, October 22, 2008
Sunday, October 12, 2008
Dedication to Small Government
Ah, the bailout... what bothers me (and many Americans) about that? First, that the money is being given to a former Goldman exec to dispense with how he (or the Treasury) sees fit. Second, that it fails to address root causes, and does nothing to prevent another out of control financial mess. Third, that it seems insincere of our congress to favor silence and laissez-faire only on the way up, but a falling price of stocks, and a tightening credit market is somehow a malfunctioning market? Markets work, they say it again and again, but did they only mean that markets work when they favor people with existing assets? There are generations yet to be born, and many of my generation who have yet to get a grip or claim on some of these overvalued assets, largely because they are overvalued. Lower prices are democratic. Low prices of homes hurt short term homeowners, speculators, and banks... but are a boon to first time homebuyers and future homebuyers. Low stock prices give me a head start in earning return on capital (think value investing). Overvalued stocks are great for fund managers and the nearly retired, but at the cost of the earnings potential of the next wave of Americans. Did we forget to vote? Did we forget to do the math? Did we buy the hype...
How many days did it take the white house to get this rescue plan through congress? Congress, which never agrees on anything that quickly, has once again responded to the gong of emergency, taken assurances from the administration that it held America's best interests at heart, and raced to pass a bad idea into law. I haven't been this upset since the patriot bill reauthorization...
Are the credit default swaps any more regulated now than in the past? Are banks required to maintain higher capital levels for soundness? Did the FDIC raise the insurance premiums it charges bank for deposits?
Does this government have any better ideas than throwing away money into a sinking ship? It seems the recent plunge in prices was largely due to lack of confidence and uncertainty. Propping up bad companies to restore confidence (that was quite reasonably withdrawn) distorts pricing signals, and only socializes the risk of default. Insuring all banks against failure creates such a ridiculous moral hazard that in future dictionaries, it will be the example we use to clarify the term.
Why did this bill pass with little citizen input, at the behest of the government, with votes from the crooks who will be seeking reelection over the next four years? Where were our options?
How many days did it take the white house to get this rescue plan through congress? Congress, which never agrees on anything that quickly, has once again responded to the gong of emergency, taken assurances from the administration that it held America's best interests at heart, and raced to pass a bad idea into law. I haven't been this upset since the patriot bill reauthorization...
Are the credit default swaps any more regulated now than in the past? Are banks required to maintain higher capital levels for soundness? Did the FDIC raise the insurance premiums it charges bank for deposits?
Does this government have any better ideas than throwing away money into a sinking ship? It seems the recent plunge in prices was largely due to lack of confidence and uncertainty. Propping up bad companies to restore confidence (that was quite reasonably withdrawn) distorts pricing signals, and only socializes the risk of default. Insuring all banks against failure creates such a ridiculous moral hazard that in future dictionaries, it will be the example we use to clarify the term.
Why did this bill pass with little citizen input, at the behest of the government, with votes from the crooks who will be seeking reelection over the next four years? Where were our options?
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