Here is the full story courtesy of the NY Times.
AngryRenter.com: Glenn Beck and Dick Armey Sound Off Against The Mortgage Bailout
See the video here and sign the petition here.
I can’t stress it enough. The real losers in the housing bailout are responsible Americans who continue to save and not overextend themselves financially. Anybody whose mortgage is saved via taxpayer intervention should be forced to forfeit any gains from the future sale of their property.
And You Thought Times Were Tough Here…
From the WSJ via the Skeptical CPA – “… countries like Zimbabwe that are ravaged by hyperinflation and need to issue new notes so often. … A loaf of bread costs 30 billion Zimbabwean dollars…”
Further Praise of High Gas Prices.
My Favorite Store Gets a New Logo
Walmart (previously Wal-Mart) has unveiled a new logo. And yes, it really is my favorite store.
Congressman Feeney Has It Right
I am totally against any form of mortgage bailout. I also was and still am opposed to Congress’s bailout of Bear Sterns. The reality is very few Americans (proportionally speaking) stand to lose their homes. And if banks and mortgage companies lose money or go out of business then that is the nature of the free market. The real victim of the mortgage fallout is responsible Americans who did not buy more home than they could afford and aspiring home owners who are renting (and not getting an IRS subsidy in the form of a tax break) while they save for the purchase of a home.
It is refreshing to see Congressman Feeney stand up for the forgotten Americans.
McCain on Free Trade
John McCain is currently airing an ad supporting the Columbian Free Trade Agreement. He is correct that free trade enriches Americans and that it will help create more jobs both in America and abroad. He also points out that more and better jobs abroad also helps deter both legal and illegal immigration. The question is why is he making such an unpopular stand right now? Perhaps this is just the most recent destination on the straight talk express.
It should be noted that I am an advocate supporter of free trade (yes even with “communist” China.) I also am a strong advocate of public and private programs to help workers who lose their jobs (by outsourcing or other means) reenter the workplace.
Paul Krugman Has Bugged My Office
Two weeks ago I was lecturing two of my coworkers about homeownership. I explained to them that there was insufficient reason for me to purchase a home in the current market, and if need be – I would rent indefinitely. I added that I felt a lot of American’s have been misled into believing that the American Dream is owning a home. I believe the American Dream is freedom and economic prosperity, and for many American’s, home ownership prevents economic prosperity. My reasoning is simple. Many homeowners simply buy too much house and end up being house-poor. Others bought homes in an overvalued market and are now upside in their homes (negative equity.) Owning a home also makes people less mobile, in turn makes it tougher for them to relocate to accept better work. Top that off we the fact that most people own homes outside of the city or in suburbs which requires longer commutes and ever-increasing gas bills. For me, weighing these negatives (and an overvalued market) against the perks of homeownership makes renting a no-brainer for me.
So imagine my surprise when I stumbled across a Paul Krugman article in today’s NY Times that confirmed most of my argument.
Rove Blasts the Economic Rhetoric of McCain and Obama
from the Wall Street Journal:
Rove wants to know why McCain is “angry, frankly, at the oil companies not only because of the obscene profits they’ve made, but their failure to invest in alternate energy.” Rove points out that the airline industy was not pioneered by the railroad industry and that automobiles where not championed by the makers of buggy whips.
Rove’s point is that innovation rarely comes from people with a vested interest in the status quo.
Rove also bashes Obama for singling out oil companies with his disastrous plan for a windfall profits tax. Rove points out that the oil industries “record breaking profits” net them about 8.3 cents per sales dollar which is far less than other industries such as electronics which net 14.5 cents per sales dollar or Microsoft that nets a booming 27.5 cents per sales dollar. He adds that perhaps Obama is looking at the total net profit made by the oil industry, but not even that would put the oil company at the top of the list. The oil and gas industry made $85 million which seems meager to the nearly half a billion made by the financial services industry last year.
Rove makes a couple of excellent points here. Either the candidates are simply pandering or they lack a firm understanding of basic economics. In the case of the latter, however, Obama stands to do much more damage to the economy.
The Best Movie I Have Seen This Month: Resolved
In the peak of the summer blockbuster season, I caught Resolved by channel flipping this afternoon. It focuses two high school debate teams from distinctly different social and economical backgrounds : California’s Long Beach High School and Texas’s Highland Park High School. One of the most interesting things I learned is that these debates are nearly impossible for the average person to comprehend because of a widely used tactic known as “spreading” or speed-reading. Because the debates are subject to a time-limit – participants speed read their arguments at a mind boggling pace. This tactic and format is subject to criticism because the incomprehensible arguments are not at all like the tactics used in actual forums such as congress, court, or even on your favorite news program.
