Possible bailout proposal

It looks like we're gonna have a bailout whether we want it or not.

I'm opposed, but in the interest of offering my two cents, here's what I think should happen.

The biggest issue with the bailout comes down to valuation of the assets. The market hasn't been able to place a dollar figure on what they are worth and that keeps the market frozen. (Illiquid)

Instead of giving a blank check to Treasury (which means to the Executive Branch) , we should dole it out in increments of 100 billion. After the first 100 billion amount is used, then Congress should evaluate if and in what amount the next 100 billion should be doled out.

The benefit with this approach is two fold:

1) By allowing Treasury to begin purchasing assets, the market will quickly establish a value for the assets. This will help crystallize the market value for future purchases. It will also encourage private entities to begin purchasing the assets since the government would have set a floor value through its purchases.

2) By restricting the amount given out, we can keep control over the money and possibly conserve most of it.

I think this approach would work and would keep us off the hook for the entire 700 billion.

All we need do is help establish a value on the assets to get the market moving again. This is priming the pump rather than drowning it. Doing this would not require the whole enchilada requested by Paulson.

Let the free market clean up the mess that it has created: No bailout.

After much turmoil, I've come to a conclusion on the proposed bailout.

Those who advocated for the "free market" have succeeded in bringing us this mess.

In an effort to maintain some congruence, I think the free market should be left to resolve the problem.

I mean, the free market types argue that the market can cure everything, so let them put their money where their mouths are.

I do think this provides an opportunity for us to practice some economic gardening by trimming the excesses and exercising some well-needed training of our economic system through targeted regulation.

If the market works as alleged, then it should absorb this mess and work it out.

Study shows people persist in believing lies even when faced with the truth. Scary

I came across a study performed last year with dire implications.

The study tells us that when people are lied to by a politician they support people persist in believing the lie--even when presented with evidence of the deceit from credible sources. In fact, the truth reinforces the belief in the lie.

That's a mouthful, but here's the gist: If you believe a lie told by your favored politician, you are less apt to trust someone that points it out and provides evidence of the deceit. You will even go so far as to continue believing the lie rather than be disloyal. (I think back to the Bush administration's claim that Iraq has WMDs...)

This is part of the media's problem. The more holes they poke in the candidates' lies, the less likely the truth will be believed.

This scares me.

Gas crisis video is hilarious...

This video sums up the gas situation here in Nashville.

Absolutely hilarious video. Make sure to watch the whole thing.

Love it.

Bailout in haste--repent at your grandhildren's leisure.

I've been a little troubled by the proposed bailout.

Here's a story that tells a little about it.

My problem is one of competing concerns.

On the one hand, I think the government should help stabilize the market because the volatility we have currently is nothing but trouble for jobs, business, and growth.

On the other hand, I worry that the changes in the law over the past few decades have created a situation where well-financed, and well-connected interests with access to information unavailable to the rest of us, have created a mess where a few profit while the rest of us to pay the tab.

As it stands now, my generation and succeeding ones will pay for the preceding generations inability to delay gratification. The "Me" generation is so stunningly self-centered. Why should my generation (Gen X) be forced into parenting the Boomer's excesses?

We have financed increases in wealth for a small number through policies that a few trickle-down ideologues have convinced people are in the country's best interests.

This is absurd. Trickle-down is only a euphemism for Marie Antoinette's line of "Let them eat cake."

This bailout represents emergency CPR for a few companies and industries that have profited from the rest of us. Now, when they get caught without a chair in the economic game of musical chairs, they scream for help, despite the free market ideology they've trumpeted for years.

The failure of the administration to properly plan is not cause to hand over a blank check to cover their incompetent asses for their ideological idiocy. The public apparently feels the same way.

We should all have serious concerns about an administration that waits too late to fix a problem, then tries to use the immediacy of the need created by their dilatory response to demand change without oversight. This smells of Hitler demanding emergency powers from the German Parliament to fix a fabricated crisis and then seizing power.

Congress is doing the right thing by slowing down the train.

"Troopergate" will cause the McCain camp to rot from within

Here's a story from the Right-leaning realclearpolitics about the "Troopergate" scandal.

Apparently, the Governor Palin was all in favor of the investigation into the State Trooper matter. The State legislature voted to investigate.

Now, Palin has chosen not to cooperate.

This is a familiar story a la "The Bridge to Nowhere" that Palin was for before she was against it. Palin was in favor of the investigation before she was against it.

Stonewalling is troubling from a politician who bills herself as a paragon of openness and reform.

This won't turn out well. McCain should have looked into this before choosing Palin, but now it's too late.

I'm reminded of what my uncle Floyd always said: " You can't take back a screw."

In this case, McCain can't take back his screw up, even though it may tar and feather his campaign with hypocrisy's mantle and recall to voters' minds Bushco and the stonewalling they were ever-so prone to use.

So much for de-coupling from Bush....

Video reminds us how we lose our freedom, in small increments and not in major steps.

Here's a video that provides food for thought. Good points for us all to remember.

Abstinence Only sex education fraught with moral deficiencies.

Here's what happens when a moral agenda runs up against the facts.

Abstinence-only sex education is fraught with errors (lies) and violations of basic human rights and fails to be effective.

Tell me where the morality lies when something doesn't work, it's deceitful in its delivery, and it violates basic human rights? I'll tell you: It's immoral.

This is what happens when we try to legislate morality. We end up worse off than if we had trusted people to make their own moral decisions instead of trying to MAKE THEM behave morally.

Furthermore, where do we get off thinking we know better than everyone else? This arrogance is more sinful than if we had let people make their own mistakes and learn from them.

This type of stuff is the paternalism of the Right. Like political correctness from the Left, it must be stopped.

Study indicates biological basis for conservative or liberal values. Cool stuff

Here's a fascinating study that conservatives will probably poo poo because it makes them look fearful and neurotic.

The study indicates that people who are more fearful and anxiety-ridden from a biological perspective are more likely to favor conservative values and policies.

Those who are less fearful favor compromise, foreign aid, and liberal immigration policies.

What this tells me is that conservatives need to take a chill pill.

Dow needs to get down to around 10,000 before the economy will be free of the garbage

I've not posted it here, but for the past year, I've openly noted that the Dow needs to get down to around 10,000 before we'll have all the clutter in the economy cleaned out.

Some won't like to hear this, but that's the nature of bubbles and cycles of boom and bust.

It looks like we're heading that way now.

Pain will be in store, but until the economy disposes of all the fluff and junk, we're not going to move ahead.

Can I get a government bailout too?

After reading this, I was wondering if I could get a government bailout?

Probably not, since those seemed to be reserved for well-financed companies and not those who really need it.

Who says government doesn't work for some?

Love the new look: John McCain -- Flip Flopper

The Republicans used the "flip flopper" label to great effect last presidential election.

Now, it seems that John McCain sees some value in dramatically changing his policy positions.

It's a good thing that John McCain has decided that the best way to win his election is to be more---Democratic.

Welcome John McCain. We'll send you your Donkey Button.

Democrats are consistently better for the economy--based on the facts and data.

Here's a fun story.

Based on data dating back to the 1950s, Democrats are better for the economy than Republicans.

So, if the economy is the most important issue for you and you fail to vote Democrat, then you are voting against better economic policies.

That's plain and simple. Vote Democrat to improve the economy.

China's milk problem shows the failings of too much freedom in markets

Here's a situation that shows how a free market approach fails.

The situation in China where milk companies are being investigated for putting melamine (a poisonous chemical) in milk. Unfortunately, a number of children have died from kidney issues that arise from the melamine.

China is like a laissez-faire dreamscape, so it provides a good example of free markets run amok.

The free market view says that the market will take care of these companies. Problem boils down to two issues: 1) When? 2) After how much human costs?

The free market approach allows that once the public becomes aware of the problems, then it will force the companies to change their ways. The problem though, is that it will only occur after the public becomes aware, so information must be readily available.

Secondly, the free market approach makes little allowance for the human costs of these bad practices. Children have died and many more are sick.

We can all agree that this should not have happened in the first place. The only way to prevent that is to set standards and to use a regulatory scheme to protect the food supply.

The free market cannot prevent such a result.

Regulation is like salt, viz., without it, things won't work, but with too much, it ruins the situation.

Ideological de-regulators don't have the answer, but neither do the hardcore regulators. The best approach is moderate regulation.

Hypocrisy abounds on Palin Probe - Obama behind the attack on Governor that began before her elevation to running mate.

Here's a real shocker!

Sarah Palin is refusing to cooperate with a probe into her actions as Governor.

The reason? It's some Democratic conspiracy.

This, despite the fact that the investigation began before she was tapped to be McCain's running mate.

The Republicans, who are quick to cynically point out the conspiracies of others, are just as bad when their folks are in the cross-hairs. This particular investigation is some Obama plot. Obviously Obama is so smart that he lined this up well before McCain chose the governor as his running mate. In that case, maybe Obama should be president, since he's so smart....I'm just saying.

I'll resort to some cop logic: If Governor Palin has nothing to hide, then she should cooperate so the truth can get out.

Her choice not to cooperate only increases the perception of wrongdoing.

Winston Churchill said it best...

After watching all the bloviating by the typical press opinion-istas and watching the Democrats fall victim to the out and out bald-faced lying coming from the McCain camp, I worry about the results of the election.

If we, as a nation, allow another Republican deceiver into the White House all because he and his campaign manage to say what people want to hear, even if it's not true, then we probably deserve what we get.

I'm reminded of a quote from Winston Churchill when I think of the possible consequences of electing a lying Senator, too old to live out a term without dementia, along with his ideologue running mate.

Winston summed it up about Americans when he said of us:

"You can always count on Americans to do the right thing...after they've exhausted all other possibilities."

I don't know what's more stunning: The fact that so many willingly give up any notion of good sense and reason just to elect some party willing to lie, cheat, and obfuscate? Or, whether people are really such ignoramuses.

If McCain wins with the sort of campaign he's running, then we've sacrificed our collective intelligence upon the alter of our shallow foolishness. The results will be dire...more dire than they've already been.

I know that since Bush was elected I've seen my personal wealth disappear. I've seen my career prospects dry up and my income fall dramatically, even though I should be in the prime years of my earning potential. It can't all be my fault like the Republicans will try to argue.

Religion actually a means for ensuring social cooperation and cohesion

An interesting new study about religion.

Apparently, communicating unskeptical acceptance of another's pronouncements has been linked to increased social cooperation and cohesiveness.

This makes sense. Most people are more likely to get along with those who agree with everything they say...why would religion be any different?

Econ paper highlights history of U.S. prosperity and how we lost it for the middle class

Here's a link to a PDF of an Econ paper published back in June.

Link

This paper details what allowed the U.S. to prosper from the 1940' through the 1970s. The paper points out the changes that have occurred to undermine American economic stability for the Middle Class.

This is worth a read if you want to educate yourself on why American is swirling the drain from the Middle Class' perspective.

In the end, this election will be about economics. If the U.S. voter is distracted by non-issues and ignores the underlying problems of economics, America will suffer.

Rachel Maddow show would be a good forum to get at the Real Palin effect

Here's a new show that looks like it may offer a good balance to the Palin love-fest that's going on now in the press.

I think the Governor should go on this show and explain her views and values to another woman.

Democrats are reverting to their spineless selves again. Enough is enough.

Here's the problem facing the Democrats now that McCain is riding the Palin wave.

The Republicans are masters at saying exactly what people want to hear--even if it's not true. Those who support the Republicans are dedicated loyalists to their party and just stick their fingers in their ears when legitimate questions about their candidate are posed.

The Democrats have fallen for the bait. By not attacking McCain and Palin BECAUSE Palin's a woman.

This is flawed and nothing but Karl Rove bull. Spare me the faux outrage please.

Palin is first and foremost a politician and she should be treated as such. Screw the fact that she's a woman. The Republicans are exploiting her gender to their advantage with the press.

The Republicans are running a campaign that consists of "taking offense" at everything. This is a load of crap. I take offense at their deceit and continual lies on the economy and energy policy.

The best approach is to turn the tactic on its head and pummel Palin and McCain. There may be an initial backlash, but eventually things will begin to stick. The Republicans can only take offense for so long before they start looking weak.

The press will eventually get over their shiny new bauble that is Governor Palin.

The Democrats need to give them something to latch onto, viz., the weaknesses Governor Palin brings to the ticket and possibly the country.