Well he, Bush,last week gave a plan to help the homeowners struggling with ARMs. OK is it help? NO f*cking way! It will be a short, very short term fix for the homeowners but it will be a major boom for the financial services that created this problem.
Sorry to say, there is no long term help in his plan. And only a small percentage of homeowners will see any, any assistance in this move.
You DO realize that foreclosures are up 94% over last year? Right? They are up 18% over last month. Anytime the government gets involved in saving a market, the notion of free markets goes down the toilet.
The saddest thing about this situation is that the financial institutions will come out of this pretty good. The borrowers will LOSE their homes. That is somehow okay as long as the financial sector does not suffer. Is this what you want from your government? If so, you are a sick f*cker!
Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts
11 December 2007
15 October 2007
Airlines--A Service industry
The US airlines have been on the skids now for many years and there is no sign of them slowing down. It is sad when the Congress has to step in and pass a airlines passenger bill of rights. The industry should be policing itself, but it has not. Why? The three magic words--PROFIT! PROFIT! PROFIT!
As with many corporations and industries in the US, it is all about profitability, not customer satisfaction. The US has wonderful hotels, clubs, etc, but for some reason airlines suck! Why? It is all about the investors. If the climate for investment is good, then they will continue to receive financing in the form of investors gambling on the industry.
Americans are mobile and as such it makes the airlines a given and they can pretty much do what they want without any repercussions. The industry will not police itself and will do only what it must to stay ahead of the federal government. They do not care what the people have to say for they will continue to fly regardless of the treatment they get at the hands of the airlines. They will bitch and moan and come back next week for another shot in the ass.
Americans feel they have no choice but to accept the treatment and bitch about it later. eventually, someone will come along and set the industry on its ear and maybe then some changes that are beneficial to the customer will occur. I am not holding my breath; only hoping that someone will wake them up.
CHUQ
As with many corporations and industries in the US, it is all about profitability, not customer satisfaction. The US has wonderful hotels, clubs, etc, but for some reason airlines suck! Why? It is all about the investors. If the climate for investment is good, then they will continue to receive financing in the form of investors gambling on the industry.
Americans are mobile and as such it makes the airlines a given and they can pretty much do what they want without any repercussions. The industry will not police itself and will do only what it must to stay ahead of the federal government. They do not care what the people have to say for they will continue to fly regardless of the treatment they get at the hands of the airlines. They will bitch and moan and come back next week for another shot in the ass.
Americans feel they have no choice but to accept the treatment and bitch about it later. eventually, someone will come along and set the industry on its ear and maybe then some changes that are beneficial to the customer will occur. I am not holding my breath; only hoping that someone will wake them up.
CHUQ
08 October 2007
Greenspan On The Economy
Since I am a dedicated news geek, I watched Situation Room with Wolf Blitzer on Sunday, when he interviewed Alan Greenspan, former head of the Federal Reserve. He (Greenspan) covered many topics, oil in Iraq, the housing crunch, coming recession, etc. He said there was a better than 50/50 chance that there would be a recession. He also qualified his statement on the oil in Iraq. he said that it was because of the oil that Saddam became a problem. It gave money much money to use to further his agendas.
When asked about the economy in general he began by saying that it was a complex, self-adjusting environment. Once he said that I went numb. I could believe he said such a thing.
To begin with I do not agree that the economy is a self-adjusting environment. Now that that is out of the way. Why do I feel that way? That easy! If the markets were free to seek its own level then we would have had a recession already. The Fed in its attempt to help markets stabilize will cut rates. That is not a self-adjusting technique. Because of the interference in the markets, investors claim down and continue to throw money at the markets. What part of that was done without assistance?
you do not like then let us look at the government--they in essence will bailout the mortgage industry to prevent a collapse of the system. That also, is not self-adjusting. The fact that the mortgage industry was in sad shape was however part of that self-adjusting environment.
Sorry people, but all that is part of an economic system know as "state capitalism". Simply put, it is the involvement of the state in the functioning of the economy. All the incidents described above are examples of state capitalism.
It could also be seen as "State-Monopoly Capitalism". It is where state and capitalist join forces so as to preserve and strengthen the system. It enriches, strengthens , protects and is dominated by capital. This is regulated by state bodies which is used to benefit large corporations by implementing short term fixes and long term programs. Does any of that sound at least somewhat familiar?
Since I am not one of capitalism's best friends, I see that the free market system that all Americans are so damn proud of as, not free in the least. For if it were free their would be no need for the government to intervene to save one industry or another.
CHUQ
08 Oct 07
When asked about the economy in general he began by saying that it was a complex, self-adjusting environment. Once he said that I went numb. I could believe he said such a thing.
To begin with I do not agree that the economy is a self-adjusting environment. Now that that is out of the way. Why do I feel that way? That easy! If the markets were free to seek its own level then we would have had a recession already. The Fed in its attempt to help markets stabilize will cut rates. That is not a self-adjusting technique. Because of the interference in the markets, investors claim down and continue to throw money at the markets. What part of that was done without assistance?
you do not like then let us look at the government--they in essence will bailout the mortgage industry to prevent a collapse of the system. That also, is not self-adjusting. The fact that the mortgage industry was in sad shape was however part of that self-adjusting environment.
Sorry people, but all that is part of an economic system know as "state capitalism". Simply put, it is the involvement of the state in the functioning of the economy. All the incidents described above are examples of state capitalism.
It could also be seen as "State-Monopoly Capitalism". It is where state and capitalist join forces so as to preserve and strengthen the system. It enriches, strengthens , protects and is dominated by capital. This is regulated by state bodies which is used to benefit large corporations by implementing short term fixes and long term programs. Does any of that sound at least somewhat familiar?
Since I am not one of capitalism's best friends, I see that the free market system that all Americans are so damn proud of as, not free in the least. For if it were free their would be no need for the government to intervene to save one industry or another.
CHUQ
08 Oct 07
04 October 2007
Is Inflation Approaching?
Good question and deserves a good answer. back in the day, when I was in college taking that econ 101, the bane of most average human being, I was amazed at how the "experts" could read a coming disaster.
Alright, let us begin. Gold prices are up, oil futures are up, housing is collapsing faster than a bridge in Minneapolis, food prices up, consumer spending stagnant, income stagnant, so why no recession? all these indicators are poor, at best, but yet the economy is strong. Why?
All economic indicators are used to fuel investments. Investors are optimistic at this time, they are gambling that say 12 months from now all will be good. The government does it's part to stabilize the economy by cutting prime rates and bailing out disintegrating sectors. This is what the investors need to keep pumping money into the system and as long as they do that this economy will appear to be strong and stable.
But on the down side, NO ONE has asked John P. Public what condition the economy is in. There is the true test of how healthy the economy is; if John cannot buy enough food for his family, then this "free market" system is not working.
Nothing I see that pertains to the average Joe tells me this is a healthy environment. The economy is failing, but as long as the wealthy gamble on the lives of normal Americans, there will be no change. Sad that the worker and his family must pay a terrible price for the accumulation of wealth by a few.
CHUQ
04 Oct 07
Alright, let us begin. Gold prices are up, oil futures are up, housing is collapsing faster than a bridge in Minneapolis, food prices up, consumer spending stagnant, income stagnant, so why no recession? all these indicators are poor, at best, but yet the economy is strong. Why?
All economic indicators are used to fuel investments. Investors are optimistic at this time, they are gambling that say 12 months from now all will be good. The government does it's part to stabilize the economy by cutting prime rates and bailing out disintegrating sectors. This is what the investors need to keep pumping money into the system and as long as they do that this economy will appear to be strong and stable.
But on the down side, NO ONE has asked John P. Public what condition the economy is in. There is the true test of how healthy the economy is; if John cannot buy enough food for his family, then this "free market" system is not working.
Nothing I see that pertains to the average Joe tells me this is a healthy environment. The economy is failing, but as long as the wealthy gamble on the lives of normal Americans, there will be no change. Sad that the worker and his family must pay a terrible price for the accumulation of wealth by a few.
CHUQ
04 Oct 07
Subscribe to:
Posts (Atom)
