Friday, August 26, 2011

Is the Governement Capable of Learning From Past Mistakes? No.

“It almost seems to me you want to have some type of announcement or policy, program or something from the federal government that provides that clear signal that we are here supporting the housing market and this is indeed a good time to really consider buying,”

-- Frank E. Nothaft, the chief economist at Freddie Mac.
While talking to the New York Times, Frank Nothaft made the above comment about a rumored Obama administration plan to offer lower mortgage rates to people with bad credit.

If I am not mistaken, but wasn't the 2008 housing market collapse, directly related the the high number of defaults on mortgages granted to people who did not have the means to repay said mortgages? So, the latest idea, coming out of Washington to stimulate the housing market, is for the government to back low interest mortgages to people, who can not afford to repay said mortgages.

Home ownership is a privilege and not a right. How on Earth, would this brain dead crowd in Washington even think for the briefest of moments that past failed policies, would stand a chance of working now? The definition of insanity is doing the same thing over and over again and expecting a different result.

Finance 101, folks. You do not lend money to people who do not have the means to repay. Anyone, who as operated a bank for any length of time, understands this concept. I suspect that every bank that has failed, did not adhere to sound financial principles. I would like to know how many of the banks, that have failed in recent years, were willing participants in the Governments insanity of handing out money to people who can't repay?

Wednesday, August 17, 2011

Starbucks CEO to DC: You've been cut off

CNN Money

NEW YORK (CNNMoney) -- Starbucks CEO Howard Schultz is fed up with Washington.

And he is doing something about it.

Spurred by what he describes as a failure of leadership on the part of lawmakers, Schultz is mounting a one-man bull rush against a political culture that has "chosen to put partisan and ideological purity over the well being of the people."
Read the Article at CNN Money

Dylan Ratigan (rightfully) loses it on air

In a conversation with a show panel about the country's debt and credit downgrade, MSNBC's Dylan Ratigan passionately calls both the Democratic and Republican economic plans, "reckless, irresponsible and stupid."

From Tuesday August 9th, 2011