WTF, over?

I'm beginning to think (actually, I'm convinced) that Henry Paulson, Secretary of the Treasury, got his economic training from the underpants gnomes.

Phase One: Collect $700+ billion

Phase Two: ?

Phase Three: Profit (save the economy)

Now, instead of buying up "toxic" assets (bad mortgage loans), he wants to buy into banks.

AND, he stipulates that no questions be asked!!!

I don't doubt that Henry is a good man who wants to do what is best for the country, but, I can't help but think that maybe he isn't as competent as he thinks we think he is. Also, I think it would be appropriate that he and all the other "smart" guys who allowed this crisis to evolve in the first place, to be fired and replaced with a new set of incompetents. I know, you can't fire members of congress (Barney Frank, Chris Dodd, etc.).

Though Paulson is no doubt smarter than I am, I still think that my plan would do more good (and less harm) than anything he's come up with so far.

As far as the economy is concerned, I'd rather the government forget about bailouts and let the chips fall where they may.

I hate to sound cruel, but I'm a pretty cold-hearted bastard (or so I'm told), and I don't think bad lending and bad borrowing should be rewarded, especially when the rest of us have sacrificed in order to meet our own fiscal responsibilities.

Financial Meltdown

No matter what the Treasury Department does with the $700 billion that Congress has given them to save our economy, it will not be a fair disbursement of our money. Only the banks that got us into this mess in the first place will benefit directly.

I have a better idea. Use the $700 billion to pay off as many existing mortgages for primary residences as possible. That would reward those people who have managed their finances responsibly and also provide liquidity (cash) for the banks and mortgage companies. If your mortgage payoff is less than $100,000, you would stand a good chance of being one of the lucky ones who suddenly own their homes free and clear. Your mortgage lender would have money to lend to other home buyers and be able to stay in business.

You would also be in a better position financially to spend more money (responsibly, of course) to stimulate the economy. At the very least, you would not risk being added to that large group of irresponsible home buyers who wind up in foreclosure.

"But that's not fair. I don't have a home mortgage." Okay, is it more fair for the government to just give the money to the banks? At least with my plan, the banks would benefit only indirectly while a large number of (mostly deserving) taxpayers would benefit directly.

Low income homeowners (with typically lower mortgage balances) would probably benefit more than high income homeowners.

The chances that my plan would even be considered..........ZERO.

Made In China

On ABC News' Primetime tonight, Bob Woodruff gave a special report on China. The Chinese government's propaganda office must have assisted in writing it, because the program avoided any hint of criticism of the communist country.

One quote in particular was especially infuriating: "Americans can't seem to get enough of what China produces." Aaarrgghhh!!!!

We can't seem to get enough? Time for a reality check, Bob. We get much more than enough.

Truth is, Americans can't find anything to buy that isn't made in China.

American capitalists are digging their own graves (and ours, too) by having more and more of their products made in Chinese factories rather than in the U.S. As we lose our domestic manufacturing capacity and become more dependent on other countries to provide the products we need, our vulnerability to foreign economic intimidation increases (like it has with oil).

Lower prices today will turn into economic slavery in the not too distant future. Mark my words.

Cigarettes Vs. Gasoline

Funny how the price of a gallon of gasoline and the price of a pack of cigarettes always seem to be the same.....no matter how ridiculous the price.