Who are we really worried about?
Jim Cramer, the bailout’s biggest cheerleader, was on Hardball tonight and Chris Matthews asked him to explain Paulson’s Armageddon scenario. To which Cramer replied that we would see the failure of the nation’s biggest S & L (Washington Mutual) and many smaller banks. SFW! The depositors are all federally insured anyway. And their deposits aren’t close to $700 billion.
Goldman Sachs just got a $5 Billion investment from Warren Buffet. Bank Of America, J P Morgan Chase, Wells Fargo, Citibank are all in fairly good shape even if they do hold some of this toxic stuff. So is this whole $700 billion is to bail out WaMu, some foreign banks and a bunch of small banks that should not be in business? As I said earlier in the week, during the 1989-91 down cycle, 25% of the publicly traded financial companies “went away” either by merger, acquisition or bankruptcy. So far in this cycle that figure is only 8% .
One last thing — that lawsuit involves UBS.
Guess who both ensured that CDS were unregulated and shortly thereafter went to work for UBS?
Phil Gramm.
One last thing — that lawsuit involves UBS.
Guess who both ensured that CDS were unregulated and shortly thereafter went to work for UBS?
Phil Gramm.
Buffet must think that we are at or near the bottom–this is probably a good time to but stocks for those with courage–
Buffet must think that we are at or near the bottom–this is probably a good time to but stocks for those with courage–
Buffet must think that we are at or near the bottom–this is probably a good time to but stocks for those with courage–
SFW indeed!
SFW indeed!
SFW indeed!
@museincognito:
“Entire neighborhoods are going to go under and that’s a shame, but, as is said, that’s the way the ball bounces.”
Ok. May having be as good as wanting.
You seem to think this is entire neighborhoods of the well-off. It’s not. These are swaths of Detroit and other rust belt cities as well as downtown Atlanta. Perhaps as during the rust bowl, they will head out to the city of light on the hill that is California. Keep in mind, subprimes went to the people who WERE paying rent.
“Rubber ball come a’ bouncin’ back to you”
@museincognito:
“Entire neighborhoods are going to go under and that’s a shame, but, as is said, that’s the way the ball bounces.”
Ok. May having be as good as wanting.
You seem to think this is entire neighborhoods of the well-off. It’s not. These are swaths of Detroit and other rust belt cities as well as downtown Atlanta. Perhaps as during the rust bowl, they will head out to the city of light on the hill that is California. Keep in mind, subprimes went to the people who WERE paying rent.
“Rubber ball come a’ bouncin’ back to you”
@museincognito:
“Entire neighborhoods are going to go under and that’s a shame, but, as is said, that’s the way the ball bounces.”
Ok. May having be as good as wanting.
You seem to think this is entire neighborhoods of the well-off. It’s not. These are swaths of Detroit and other rust belt cities as well as downtown Atlanta. Perhaps as during the rust bowl, they will head out to the city of light on the hill that is California. Keep in mind, subprimes went to the people who WERE paying rent.
“Rubber ball come a’ bouncin’ back to you”
Mortgage holders are going to realize pretty quickly that unoccupied housed deteriorate rapidly and are targets for vandals and thieves stealing items like copper wire and plumbing. They’d better think in terms of keeping humans living in those houses or be ready to watch their toxic investments become worth even less.
Mortgage holders are going to realize pretty quickly that unoccupied housed deteriorate rapidly and are targets for vandals and thieves stealing items like copper wire and plumbing. They’d better think in terms of keeping humans living in those houses or be ready to watch their toxic investments become worth even less.
“Evil of me, but I have little sympathy for most of the people who bought homes knowing full well they where stretching themselves way too thin.”
I’m not sure all the bad mortgages were the fault of the borrower. Banks typically have better info on the financial status of a borrower than the borrower does. The borrower will typically have a rosier outlook of their own situation, the bank should bring reality to the table.
Robert X. Cringely is a tech columnist but talks about his own mortgage experience where the loan company doubled the income on his application because “that was the ratio needed to get the amount he applied for.”
http://www.pbs.org/cringely/pulpit/2008/pulpit_20080704_005191.html
Blame the borrowers isn’t exactly right when lenders were trying to shovel as much money as possible into people’s hands. Borrowers didn’t force banks to leverage at 30:1 or 40:1.
“Evil of me, but I have little sympathy for most of the people who bought homes knowing full well they where stretching themselves way too thin.”
I’m not sure all the bad mortgages were the fault of the borrower. Banks typically have better info on the financial status of a borrower than the borrower does. The borrower will typically have a rosier outlook of their own situation, the bank should bring reality to the table.
Robert X. Cringely is a tech columnist but talks about his own mortgage experience where the loan company doubled the income on his application because “that was the ratio needed to get the amount he applied for.”
http://www.pbs.org/cringely/pulpit/2008/pulpit_20080704_005191.html
Blame the borrowers isn’t exactly right when lenders were trying to shovel as much money as possible into people’s hands. Borrowers didn’t force banks to leverage at 30:1 or 40:1.
That’s is why downtown Atlanta is now a copper mine, Rick. Air conditioners, wiring, stoves, microwaves, you name it, if it has resale value, it gets plundered. Capitalism being ever adaptive, industries emerged to seal up the doors and windows with devices resembling steroid-inflicted Tupperware.
A little tale from the Model Cities days: when they emptied the downtown and moved them into the homes being repossessed by and financed by the then new HUD, home values went south and never came up to the same level again. White flight followed and the money followed them.
Those who can afford it get to move up. Those who can’t afford to move down, fall anyway. Sort of an equalization effect.
Once on the move, hungry people go where the jobs are. Analysts are right that beneath all the paper and angst is a soggy job market and that is hard to fix during a credit crunch.
That’s is why downtown Atlanta is now a copper mine, Rick. Air conditioners, wiring, stoves, microwaves, you name it, if it has resale value, it gets plundered. Capitalism being ever adaptive, industries emerged to seal up the doors and windows with devices resembling steroid-inflicted Tupperware.
A little tale from the Model Cities days: when they emptied the downtown and moved them into the homes being repossessed by and financed by the then new HUD, home values went south and never came up to the same level again. White flight followed and the money followed them.
Those who can afford it get to move up. Those who can’t afford to move down, fall anyway. Sort of an equalization effect.
Once on the move, hungry people go where the jobs are. Analysts are right that beneath all the paper and angst is a soggy job market and that is hard to fix during a credit crunch.
Len B, there isn’t a lot going into this plan that is going to help the black and mixed neighborhoods that have already been decimated, especially in Cleveland. Even if some lower level of mortgage relief finds its way into the final plan those folks are now like the Katrina victims: the ’08 version of the Grapes of Wrath. But helping that would require a bleeding heart social program, and we can’t afford to do social welfare… Oh wait, this just in, “social welfare fine if you are rich,since there is not enough to go around, no impoverished need apply.”
This is blatantly an attempt to save hard core free market predatory capitalist from the consequences of their beliefs and behavior.
Len B, there isn’t a lot going into this plan that is going to help the black and mixed neighborhoods that have already been decimated, especially in Cleveland. Even if some lower level of mortgage relief finds its way into the final plan those folks are now like the Katrina victims: the ’08 version of the Grapes of Wrath. But helping that would require a bleeding heart social program, and we can’t afford to do social welfare… Oh wait, this just in, “social welfare fine if you are rich,since there is not enough to go around, no impoverished need apply.”
This is blatantly an attempt to save hard core free market predatory capitalist from the consequences of their beliefs and behavior.
Yes, Ken. We are about to pay Peter for robbing Paul and investing in ship ballast by selling the ship’s cargo to the quarrymen.
Yes, Ken. We are about to pay Peter for robbing Paul and investing in ship ballast by selling the ship’s cargo to the quarrymen.
And Kevin’s right, there were a whole lot of middlemen in housing finance who were fed the ultimate ponzie incentive to push paper: “No worries, mate, housing values will increase forever and be able to cover this crazy looking commitment.” They bought and resold it in good faith. They didn’t really create it, but they should have questioned it. The smartest banker in New Jersey did and he is just fine right now thank you.
One has to remember that the majority of the folks in finance (the WSJ crowd) believe their own BS and don’t have a clue that their assumptions about unlimited growth and trickle down, and free and unfettered markets are all saved from reality by the S&K bailout, the various credit bubbles, the deferred maintenance on infrastructure investment, the inequities of the tax system, the fear tactics of “government regulation and taxes = socialism” and all the smoke an mirrors they have used since Reagan to sustain this grand illusion.
Unfettered capitalism shares more qualities with unfettered communist “socialism”, than we like to admit: it just kills out of sight and with an advertising sign hiding the damage. Inner cities, streets of homeless & mentally ill, labor camps of illegals, public schools in the deep south and inner city north, and trailer parks of sub living wage single parents, those are our gulags. Not as extreme as the peasant collectives yet or as genocidal, but if you checked in with those who have to live it you would find a misery index that is extreme and growing.
But we HAVE to be able to afford such blatant social welfare to the rich or it all will collapse. Well, by it’s own logic it should collapse or else it lives to die another day with even more damage.
The right disparages Obama’s stint as a community organizer, I see that and his pragmatism as his major assets.
And Kevin’s right, there were a whole lot of middlemen in housing finance who were fed the ultimate ponzie incentive to push paper: “No worries, mate, housing values will increase forever and be able to cover this crazy looking commitment.” They bought and resold it in good faith. They didn’t really create it, but they should have questioned it. The smartest banker in New Jersey did and he is just fine right now thank you.
One has to remember that the majority of the folks in finance (the WSJ crowd) believe their own BS and don’t have a clue that their assumptions about unlimited growth and trickle down, and free and unfettered markets are all saved from reality by the S&K bailout, the various credit bubbles, the deferred maintenance on infrastructure investment, the inequities of the tax system, the fear tactics of “government regulation and taxes = socialism” and all the smoke an mirrors they have used since Reagan to sustain this grand illusion.
Unfettered capitalism shares more qualities with unfettered communist “socialism”, than we like to admit: it just kills out of sight and with an advertising sign hiding the damage. Inner cities, streets of homeless & mentally ill, labor camps of illegals, public schools in the deep south and inner city north, and trailer parks of sub living wage single parents, those are our gulags. Not as extreme as the peasant collectives yet or as genocidal, but if you checked in with those who have to live it you would find a misery index that is extreme and growing.
But we HAVE to be able to afford such blatant social welfare to the rich or it all will collapse. Well, by it’s own logic it should collapse or else it lives to die another day with even more damage.
The right disparages Obama’s stint as a community organizer, I see that and his pragmatism as his major assets.
I am a “Talebist.”
Read his take on this shit:
http://www.edge.org/3rd_culture/taleb08/taleb08_index.html
He’s right.
I am a “Talebist.”
Read his take on this shit:
http://www.edge.org/3rd_culture/taleb08/taleb08_index.html
He’s right.
I am a “Talebist.”
Read his take on this shit:
http://www.edge.org/3rd_culture/taleb08/taleb08_index.html
He’s right.
“The right disparages Obama’s stint as a community organizer, I see that and his pragmatism as his major assets.”
I read the indictments against ACORN and see that as the hint that maybe he doesn’t meet specifications. I don’t disparage community organizers, but I do want to know what they are being organized to do.
Let me be as clear as I can. I’m tweaking Taplin a bit because both sides of this have to be illuminated or we will once again believe we have won only to have consigned ourselves to moral failure.
Looking at Obama’s background and associations, it appears that he is always willing to compromise values to win ever higher office. He then lies about that. To me, that is a failure of character so glaring that it cannot be ignored.
Now we face a time of hard choices and diminishing expectations. So it will come down to who do you love when having to choose. Obama has consistently avoided those choices preferring to let others fight until there is a winner, then siding with the winner. He seems to have no center or is hollow.
McCain for all the faults of his party, and those are undeniable, is at least a man with a center. He will and has made hard choices. He will do the right thing even if it stings if by that one means vote his values. He is reasonably consistent there.
So once again, we are choosing the lesser of evils and I can’t for the life of me figure out which is less this time. There is so much fog on the ground, friendly fire is taking down more voters than I’ve seen since 72. With McCain, I know what I’m getting. I’m not totally convinced it is what I want but I understand him. The record is there. The actions are there. He’s predictable.
Obama is what he said he is: a blank slate and everyone sees what they want to see. But behind that is a record of associations with people and events that are to any rational way of thinking, corrupt and self-serving. He may not be guilty by association, but then how can we credit him by deed if there are none?
It goes to character and judgement. No these are not Republican talking points. I am not a Republican. I was a Democrat until this election. So yes, I am telling you what it looks like from here for me through the fog.
“The right disparages Obama’s stint as a community organizer, I see that and his pragmatism as his major assets.”
I read the indictments against ACORN and see that as the hint that maybe he doesn’t meet specifications. I don’t disparage community organizers, but I do want to know what they are being organized to do.
Let me be as clear as I can. I’m tweaking Taplin a bit because both sides of this have to be illuminated or we will once again believe we have won only to have consigned ourselves to moral failure.
Looking at Obama’s background and associations, it appears that he is always willing to compromise values to win ever higher office. He then lies about that. To me, that is a failure of character so glaring that it cannot be ignored.
Now we face a time of hard choices and diminishing expectations. So it will come down to who do you love when having to choose. Obama has consistently avoided those choices preferring to let others fight until there is a winner, then siding with the winner. He seems to have no center or is hollow.
McCain for all the faults of his party, and those are undeniable, is at least a man with a center. He will and has made hard choices. He will do the right thing even if it stings if by that one means vote his values. He is reasonably consistent there.
So once again, we are choosing the lesser of evils and I can’t for the life of me figure out which is less this time. There is so much fog on the ground, friendly fire is taking down more voters than I’ve seen since 72. With McCain, I know what I’m getting. I’m not totally convinced it is what I want but I understand him. The record is there. The actions are there. He’s predictable.
Obama is what he said he is: a blank slate and everyone sees what they want to see. But behind that is a record of associations with people and events that are to any rational way of thinking, corrupt and self-serving. He may not be guilty by association, but then how can we credit him by deed if there are none?
It goes to character and judgement. No these are not Republican talking points. I am not a Republican. I was a Democrat until this election. So yes, I am telling you what it looks like from here for me through the fog.
“The right disparages Obama’s stint as a community organizer, I see that and his pragmatism as his major assets.”
I read the indictments against ACORN and see that as the hint that maybe he doesn’t meet specifications. I don’t disparage community organizers, but I do want to know what they are being organized to do.
Let me be as clear as I can. I’m tweaking Taplin a bit because both sides of this have to be illuminated or we will once again believe we have won only to have consigned ourselves to moral failure.
Looking at Obama’s background and associations, it appears that he is always willing to compromise values to win ever higher office. He then lies about that. To me, that is a failure of character so glaring that it cannot be ignored.
Now we face a time of hard choices and diminishing expectations. So it will come down to who do you love when having to choose. Obama has consistently avoided those choices preferring to let others fight until there is a winner, then siding with the winner. He seems to have no center or is hollow.
McCain for all the faults of his party, and those are undeniable, is at least a man with a center. He will and has made hard choices. He will do the right thing even if it stings if by that one means vote his values. He is reasonably consistent there.
So once again, we are choosing the lesser of evils and I can’t for the life of me figure out which is less this time. There is so much fog on the ground, friendly fire is taking down more voters than I’ve seen since 72. With McCain, I know what I’m getting. I’m not totally convinced it is what I want but I understand him. The record is there. The actions are there. He’s predictable.
Obama is what he said he is: a blank slate and everyone sees what they want to see. But behind that is a record of associations with people and events that are to any rational way of thinking, corrupt and self-serving. He may not be guilty by association, but then how can we credit him by deed if there are none?
It goes to character and judgement. No these are not Republican talking points. I am not a Republican. I was a Democrat until this election. So yes, I am telling you what it looks like from here for me through the fog.
You can say McCain has a consistent core he adheres to and be serious? That Obama is the one flapping in the wind? What is your source of news friend?
You can say McCain has a consistent core he adheres to and be serious? That Obama is the one flapping in the wind? What is your source of news friend?
LB,
Make no mistake, I’m in a very urban environment (just that side of gentrification, happily juxtaposed as conscientious objector) where there have been more and more vacancies. It isn’t pretty, in some cases. I’m well aware of what’s to come and who will be hurt the most.
I’m willing to guess that most people in my neighborhood are likely to have not known exactly what they were getting themselves into, but, not matter what any broker told them, they knew in their heart of hearts that they couldn’t really afford what they were buying. Hope springs eternal, but ultimately doesn’t pay the bills. I’m also well aware of the fact that everyone has been living well beyond their means. Everywhere. The “latte factor” or the “I just have to have the new IPhone and cable tv.”
Let the banks fall. Someone like Buffet will be there to invest. Someone will see the financial opportunity and step in to help. Credit will be had, though in a much, much stricter fashion.
The talk of a bubble bursting has been going around for years now. People haven’t been paying close attention if they are surprised at how serious our current situation really is. The kids in charge most certainly were aware and are now trying to delay the inevitable and skim an enormous amount of cash off the top on their way out. I love how they are now willing to concede to oversight and such. As if. Make it look like we’re getting things out of the deal…. lol!
The reality check is here. It’s late, as far as I’m concerned. We’re going to need that serious chock o’ change to get the masses back on their feet and, at the same time, change our collective priorities. (And a really good Organizer to help make it happen.)
LB,
Make no mistake, I’m in a very urban environment (just that side of gentrification, happily juxtaposed as conscientious objector) where there have been more and more vacancies. It isn’t pretty, in some cases. I’m well aware of what’s to come and who will be hurt the most.
I’m willing to guess that most people in my neighborhood are likely to have not known exactly what they were getting themselves into, but, not matter what any broker told them, they knew in their heart of hearts that they couldn’t really afford what they were buying. Hope springs eternal, but ultimately doesn’t pay the bills. I’m also well aware of the fact that everyone has been living well beyond their means. Everywhere. The “latte factor” or the “I just have to have the new IPhone and cable tv.”
Let the banks fall. Someone like Buffet will be there to invest. Someone will see the financial opportunity and step in to help. Credit will be had, though in a much, much stricter fashion.
The talk of a bubble bursting has been going around for years now. People haven’t been paying close attention if they are surprised at how serious our current situation really is. The kids in charge most certainly were aware and are now trying to delay the inevitable and skim an enormous amount of cash off the top on their way out. I love how they are now willing to concede to oversight and such. As if. Make it look like we’re getting things out of the deal…. lol!
The reality check is here. It’s late, as far as I’m concerned. We’re going to need that serious chock o’ change to get the masses back on their feet and, at the same time, change our collective priorities. (And a really good Organizer to help make it happen.)
I live in a neighborhood designed for those who refused to move in with the latte set where people come round with rulers to measure the height of lawns on the weekend. Every man/woman contracted to build their own house. That kept costs transparent and those that overbuilt found out fast as the requests to put more money in to the contractor’s account rolled in.
Also, the majority of contractors in this neighborhood were Church of the Holiness, a Christian sect where they don’t marry outside the church, and practice asceticism of lifestyle (some are snake handlers but they are rare). Locally, they are just called “The Bunheads” because the women don’t wear makeup, make their own clothes, and wear their hair up which they let grow as long as possible.
The beauty of these people as contractors is they also pretty much only hire within their church and they strictly enforce their own rules on the building site. So I never had a problem with coming to inspect and finding liquor bottles or men cursing in front of the my kids. It’s somewhat like having the Amish build your house. Pleasant and honest.
At the acceptance inspection, my contractor handed my wife a check for funds left over that they had not used. Boy were we surprised!
So some parts of this needed change really are cultural and are already in place as long as you accept the culture providing them has their own beliefs as well, and you can manage a contractor.
This doesn’t have to be some wrenching cultural change led by a Presidential guru. It has to come from our own willingness to accept responsibility and measure our needs twice and cut once.
I live in a neighborhood designed for those who refused to move in with the latte set where people come round with rulers to measure the height of lawns on the weekend. Every man/woman contracted to build their own house. That kept costs transparent and those that overbuilt found out fast as the requests to put more money in to the contractor’s account rolled in.
Also, the majority of contractors in this neighborhood were Church of the Holiness, a Christian sect where they don’t marry outside the church, and practice asceticism of lifestyle (some are snake handlers but they are rare). Locally, they are just called “The Bunheads” because the women don’t wear makeup, make their own clothes, and wear their hair up which they let grow as long as possible.
The beauty of these people as contractors is they also pretty much only hire within their church and they strictly enforce their own rules on the building site. So I never had a problem with coming to inspect and finding liquor bottles or men cursing in front of the my kids. It’s somewhat like having the Amish build your house. Pleasant and honest.
At the acceptance inspection, my contractor handed my wife a check for funds left over that they had not used. Boy were we surprised!
So some parts of this needed change really are cultural and are already in place as long as you accept the culture providing them has their own beliefs as well, and you can manage a contractor.
This doesn’t have to be some wrenching cultural change led by a Presidential guru. It has to come from our own willingness to accept responsibility and measure our needs twice and cut once.
I live in a neighborhood designed for those who refused to move in with the latte set where people come round with rulers to measure the height of lawns on the weekend. Every man/woman contracted to build their own house. That kept costs transparent and those that overbuilt found out fast as the requests to put more money in to the contractor’s account rolled in.
Also, the majority of contractors in this neighborhood were Church of the Holiness, a Christian sect where they don’t marry outside the church, and practice asceticism of lifestyle (some are snake handlers but they are rare). Locally, they are just called “The Bunheads” because the women don’t wear makeup, make their own clothes, and wear their hair up which they let grow as long as possible.
The beauty of these people as contractors is they also pretty much only hire within their church and they strictly enforce their own rules on the building site. So I never had a problem with coming to inspect and finding liquor bottles or men cursing in front of the my kids. It’s somewhat like having the Amish build your house. Pleasant and honest.
At the acceptance inspection, my contractor handed my wife a check for funds left over that they had not used. Boy were we surprised!
So some parts of this needed change really are cultural and are already in place as long as you accept the culture providing them has their own beliefs as well, and you can manage a contractor.
This doesn’t have to be some wrenching cultural change led by a Presidential guru. It has to come from our own willingness to accept responsibility and measure our needs twice and cut once.
From this morning’s inbox:
Something that makes good sense:
I’m against the $85,000,000,000.00 bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend. To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billon that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a
We Deserve It Dividend.
Of course, it would NOT be tax free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads
Put away money for college – it’ll be there
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent’s medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+! As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.” But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC . And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh…I feel so much better getting that off my chest.
Kindest personal regards,
Birk
T. J. Birkenmeier, A Creative Guy & Citizen
PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!
From this morning’s inbox:
Something that makes good sense:
I’m against the $85,000,000,000.00 bailout of AIG. Instead, I’m in favor of giving $85,000,000,000 to America in a We Deserve It Dividend. To make the math simple, let’s assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billon that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a
We Deserve It Dividend.
Of course, it would NOT be tax free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage – housing crisis solved.
Repay college loans – what a great boost to new grads
Put away money for college – it’ll be there
Save in a bank – create money to loan to entrepreneurs.
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent’s medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehmann Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.
If we’re going to re-distribute wealth let’s really do it…instead of trickling out a puny $1000.00 ( “vote buy” ) economic incentive that is being proposed by one of our candidates for President.
If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+! As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here’s my rationale. We deserve it and AIG doesn’t.
Sure it’s a crazy idea that can “never work.” But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC . And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh…I feel so much better getting that off my chest.
Kindest personal regards,
Birk
T. J. Birkenmeier, A Creative Guy & Citizen
PS: Feel free to pass this along to your pals as it’s either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!
I like it. Waiting for my check. Wondering if any bank will be able to cash it.
I like it. Waiting for my check. Wondering if any bank will be able to cash it.
Ken:
Mr. Birkenmeier ought to get a refund on that calculator of his… $85B divided by 200M comes out to 425$. I thought his result looked odd when the two numbers only had 3 figures difference… =)
Apparently he forgot that the ‘stimulus cheques’ cost $120B…
Ken:
Mr. Birkenmeier ought to get a refund on that calculator of his… $85B divided by 200M comes out to 425$. I thought his result looked odd when the two numbers only had 3 figures difference… =)
Apparently he forgot that the ‘stimulus cheques’ cost $120B…