ECONOMIC STUPIDITY

Our National financial crisis is absolutely deplorable and so is our failure to seek retribution.
Count the ways: An annual budget deficit of 1 Trillion dollars, National debt of over 9 Trillion dollars, Over 3 Trillion dollars of stock market losses, a bail out of losers approaching 7be Trillion dollars.

I am sure there was a lot of fraud involved in our financial crisis, just as I am sure there was a lot of greed, speculation, and irresponsible behaviour by everyone. But those who were in positions of control o14 other people's assets are guilty of something if only negligence and should be held fiscally responsible. I don't want to see them in jail, but I do want them to lose any gains that they achieved during the period that the recent financial flap occurred. They should be stripped of their assets like the people were holding funds in pensions, IRA's, 401k's etc. were during the last couple of years.

One final thought is that our national economy is only 14 Trillion dollars a year, so servicing that debt is going to take an increasing amount of our wealth as the bailout grows. So far, I haven't seen an signs that the crisis is being mitigated and in fact, I wonder if anyone really knows what to do.

Please hound your leaders for solutions. Not only are we passing on huge debt to our heirs but super inflation usually follows wild creation of money which is what our government is currently doing.

P.S. - Demand efficiency not just cutting services that are still required.

Joe

Current Administration and Congress Fail

A renown economist recently stated that there are four things the government must do to get out of a recession, and that our current leaders have failed to do what the government did in the last three downturns.

1. No Tax Increase
2. Create a stimulus package, but not with rebates.
3. Stabilize the dollar
4. Promote open fair trade agreements


Perhaps, President Elect Obama has been listening to his top notch advisers which could be why he seems to be backing off his tax increase for those making over $250,000 which set off the charges of Socialism.

Joe

Hedge Funds and the Financial Crisis

It wasn't enough that the top 10% control almost half of the total income of the United States taxpayers, nor was it enough that they incited inflation with speculating in commodities and oil in particular, but they had to destroy our IRA's and 401k's while they were doing it.

You have to have a million dollars to join most hedge funds. They speculated heavily in the markets with about 30 dollars of debt for every dollar of assets. When the housing market and the stock market began dropping, they moved into commodities. They bought insurance against their gambles with credit default swaps paying a small premium and passing the risk of loss to investment firms and insurance companies. They shorted stocks while the market fell often getting caught, as in the case of Volkswagen, and created the wild swings of 5 to 10% upwards
and downwards movement in the stock market.

Almost everyone got caught up in the greed of the housing boom but no one was greedy as the rich and the hedge funds who have been allowed to wreck the life styles of the working American.



Joe

The Gall Of General Motors

It is one thing to request a taxpayer bailout, but quite another to blatantly announce that the Board has decided that it can not function without a bailout and that bankruptcy is not an option.

If you don't have the money to continue operations, your only solution is to go out of business or to file bankruptcy and re-organize under chapter 11 and hope that someone will then lend you the money to stay in business under the terms that they will accept.

You screwed up in your greed and failure to adjust to the changing world environment, General Motors. Take your lumps and hope that the retired and still employed workers don't sue you after your go back on all the benefits you will now have to rescind.

P.S.- sell some of those corporate jets and travel coach with your fellow Americans then maybe next time you will know what they want in an automobile.


Joe

Election Campaigns Should be Shortened

No election campaign should be allowed to be longer than 6 months. Furthermore, can you take a paid leave of absence from your job for up to 21 months long as our last election did?

No End In Sight for a Stable Economy

It is quite simple. In a 67% consumer driven economy, there can be no recovery until well paying jobs are created and home prices stabilize and home foreclosures are curtailed.

Job losses are mounting despite the efforts of congress to fix our financial problems. Wages of the average American have been stagnant since the mid 1970's when employers began curtailing merit raises and giving only 3-4% average raises which are negated by income tax and inflation.
Check the studies that have been made by Tax Foundation and others.

Meanwhile the top 1% of all income earners have increased their share of the total economic pie from 19% in 1980 to just under 40% in 2006, even without the full impact of the elimination of the inheritance tax and reduction of the capital gains tax from which the wealthy get 87% of their income.

Until good paying jobs are again created and we go back to producing things instead of importing them things will not get better. Growth comes from gains not stagnation or losses.


Joe

Our Healthcare System

We have the world's most expensive healthcare but not even in the top twenty of the most efficient. In fact, our doctors are not even in control of our healthcare. The insurance companies are.

Recently, I had my annual check up with my doctor. He renewed my prescription for my asthma medication. I called my local pharmacy to get a refill after the doctor called in the prescription. When I went to pick it up the pharmacy told me the Insurance company would not let the prescription be filled until December the fifth.

After calling the insurance company, my medicare provider, they were unable to give me a reason for the stoppage. After discussing the circumstances with them for 15 minutes they tried to switch me to someone who could solve the problem but I was disconnected. The person I had been speaking with had my file in front of her but could not explain or authorize a refill.

Later, I called my doctor who said he could not pressure them to help me get my medication. I checked the Medicare Formulary and looked up the medication which revealed that medicare was the problem since there was a quantity limit. I had been taking the medication for years, at a rate of one a day. I had recently reduced my daily intake to a half a pill a day which means that I had actually underused my consumption under the prescribed dosage.

Obviously, The government and the insurance companies are in charge of our health care not the doctors. If there are any adverse reactions, I wonder if the government is going to be liable.

Our system needs help and we all must start demanding quality for the price we pay since money rules the world in the year 2008.


Voice your thoughts daily to our leaders.

Joe