I got some professional advice regarding my book warning about Banking on Yourself.
If any of you out there are thinking or planning to use life insurance as your next ATM, you might want to read this first.
Tuesday, April 28, 2009
Sunday, April 26, 2009
In Honor of and Preparation for the Spring-Rapidly-Turning-Into-Summer
1. Low-Tech Electric Bill Helpers.
2. Saving Energy Begins At Home 1 and 2.
3. Book recommendation: The Homeowner's Guide to Energy Independence.
2. Saving Energy Begins At Home 1 and 2.
3. Book recommendation: The Homeowner's Guide to Energy Independence.
Using Our Own Money Against Us Part 4 (a new one for me): Rearranging Bank Deck Chairs
I've seldom if ever got as far as a Part 4 on something--plenty of Part 3's, but not many Part 4's.
The banks are desperately trying to rearrange deck chairs in preparation for the stress test results, which will be covered up anyway by our own Fed and Treasury. The results of Martin Weiss Research's own studies show just how deeply they're involved with derivatives--most of which are mortgage-backed, and we all know what happened with those!
We also know that Fannie and Freddie are ticking time bombs in themselves with massive foreclosures even AFTER loan workouts and refis. Where do you think some of the mortgages backing those derivatives are coming from? Fannie and Freddie--we poisoned the well all by ourselves.
To attempt to cover their hineys in the stress test AND quarterly results filings with the SEC and shareholders (not to mention potential stock buyers), they have had to raise capital for reserves in any way they can: by taking TARP money, by taking back part of our credit lines, by selling stock or converting preferred shares into common ones, or by the next-to-last defense--credit value adjustments (write-downs and debt buybacks).
The last step is bankruptcy or governmental takeover by FDIC.
What's worse--the only thing preventing US from doing any of these things to avoid our own debt problems is a single regulation. Otherwise, we would all be cramming each other down to nothing, and the TRUE end of prosperity would fall upon us. No more Wall St., no more investment banks, no more large commercial banks, and quite possibly no more Fed or Treasury--there is an effort to kick those responsibilities up to the global level with the IMF and Central Bank.
There's also an effort to kick our legal system up to international law level, BTW.
We will, in short, become Sweden II--not much production to speak of, not many jobs, no food growth, negative population growth, and every single thing subsidized by an 80% tax rate. God knows how they can afford Volvos and housing on the remaining 20%!
The banks are desperately trying to rearrange deck chairs in preparation for the stress test results, which will be covered up anyway by our own Fed and Treasury. The results of Martin Weiss Research's own studies show just how deeply they're involved with derivatives--most of which are mortgage-backed, and we all know what happened with those!
We also know that Fannie and Freddie are ticking time bombs in themselves with massive foreclosures even AFTER loan workouts and refis. Where do you think some of the mortgages backing those derivatives are coming from? Fannie and Freddie--we poisoned the well all by ourselves.
To attempt to cover their hineys in the stress test AND quarterly results filings with the SEC and shareholders (not to mention potential stock buyers), they have had to raise capital for reserves in any way they can: by taking TARP money, by taking back part of our credit lines, by selling stock or converting preferred shares into common ones, or by the next-to-last defense--credit value adjustments (write-downs and debt buybacks).
The last step is bankruptcy or governmental takeover by FDIC.
What's worse--the only thing preventing US from doing any of these things to avoid our own debt problems is a single regulation. Otherwise, we would all be cramming each other down to nothing, and the TRUE end of prosperity would fall upon us. No more Wall St., no more investment banks, no more large commercial banks, and quite possibly no more Fed or Treasury--there is an effort to kick those responsibilities up to the global level with the IMF and Central Bank.
There's also an effort to kick our legal system up to international law level, BTW.
We will, in short, become Sweden II--not much production to speak of, not many jobs, no food growth, negative population growth, and every single thing subsidized by an 80% tax rate. God knows how they can afford Volvos and housing on the remaining 20%!
Monday, April 20, 2009
Phrase of the Day: Credit Value Adjustment
This is why the banks all of a sudden are full of good news: credit value adjustments.
They're selling off bad debt at inflated prices, then buying it back at distressed prices--the difference is their profit. Only banks can do this, thanks to the Fed regulatory system--otherwise, every homeowner, real estate owner (commercial or residential), OR even every indebted credit card holder could do this.
Our economy is NOT improving, in spite of recent news commentary--only the ways to disguise a continually-ailing one are. Leave it to banks to find ways to profit from loss and catastrophe (even self-created ones).
We are going to be at this point (or worse) for some time to come.
They're selling off bad debt at inflated prices, then buying it back at distressed prices--the difference is their profit. Only banks can do this, thanks to the Fed regulatory system--otherwise, every homeowner, real estate owner (commercial or residential), OR even every indebted credit card holder could do this.
Our economy is NOT improving, in spite of recent news commentary--only the ways to disguise a continually-ailing one are. Leave it to banks to find ways to profit from loss and catastrophe (even self-created ones).
We are going to be at this point (or worse) for some time to come.
Sunday, April 19, 2009
*Book Suggestions*
Not a recommendation, but a suggestion--I haven't personally read this one, but I did check it out on Amazon: The Backyard Homestead.
One reader comments that you don't even need a back yard to do some of this--she does it on her apartment balcony.
Another suggestion: Fresh Food From Small Spaces
Commenters say no topic is covered in-depth, but gives a good broad overview of "square-inch gardening."
One reader comments that you don't even need a back yard to do some of this--she does it on her apartment balcony.
Another suggestion: Fresh Food From Small Spaces
Commenters say no topic is covered in-depth, but gives a good broad overview of "square-inch gardening."
Wednesday, April 15, 2009
*WARNING! WARNING! BOOK DANGER!!*
Amazon recommended this pierce of filth to me this morning: Bank on Yourself. This book professes to show you how to borrow and spend without paying interest for the privilege.
Do you smell the next borrowing bubble? I do, once this book gets out in wider circulation.
The trick? Over-funding your whole life insurance policy, then borrowing the cash value--all this is interest-free.
Whole life insurance was always a poor investment vehicle to begin with, but now this guy is advocating we buy these policies and turn them into our next ATM and savings account. What the HELL is wrong with a normal savings account?
STAY AWAY FROM THIS BOOK IF YOU VALUE YOUR FINANCIAL SANITY--this is the instruction manual for another bubble. Insurance is a risk management tool, not a source of borrowing and credit!
Do you smell the next borrowing bubble? I do, once this book gets out in wider circulation.
The trick? Over-funding your whole life insurance policy, then borrowing the cash value--all this is interest-free.
Whole life insurance was always a poor investment vehicle to begin with, but now this guy is advocating we buy these policies and turn them into our next ATM and savings account. What the HELL is wrong with a normal savings account?
STAY AWAY FROM THIS BOOK IF YOU VALUE YOUR FINANCIAL SANITY--this is the instruction manual for another bubble. Insurance is a risk management tool, not a source of borrowing and credit!
Tuesday, April 14, 2009
*Book Recommendation and Suggestions*
If you won't learn portion control and cost per serving from ME, you can learn it here: 5 Meals for $5--How to Serve 5 People 5 Meals for $5-8 (or less). Here's another one titled $3 Meals--Feed Your Family Delicious, Nutritious meals for Less Than the Cost of a Gallon of Milk. Both of these were written this year, so the economy was taken into consideration.
I haven't personally read these books, but Amazon told me all I needed to know--they're portion control and cost per serving books with recipes. Other reading suggestions include Dining on a Dime, and 100 Meals for $5 or Less--be warned that these two were written BEFORE the economic slump and resulting inflation, so $5 may not go as far as it did at the time of their writing.
I haven't personally read these books, but Amazon told me all I needed to know--they're portion control and cost per serving books with recipes. Other reading suggestions include Dining on a Dime, and 100 Meals for $5 or Less--be warned that these two were written BEFORE the economic slump and resulting inflation, so $5 may not go as far as it did at the time of their writing.
Sunday, April 05, 2009
Why the Scum Always Seems to Rise to the Top
Like the algae in the pond, or the cream in the milk, the least-wanted stuff always seems to rise to the top—including people.
The longer they hang around, and the more connections they make, the more corrupt they become, as witnessed by Barney Frank, Nancy Pelosi, Chris Dodd, Tim Geithner, and others. Former senator Ted Stevens comes to mind, along with former senator Bob Dole. Oh, and let’s not leave out Bernie Madoff by any means!
The quest starts in the early days when a plan for making more money and earning more power becomes the #1 goal. The first step in attaining this goal is to get hired, then plans are carefully laid to attain longevity through repeated fundraising and charismatic campaigning. As the years go by, connections are made, laws are written (carefully—with back doors and loopholes aplenty for self-sidestepping), and lobbying for other laws and loopholes occurs, then the assignments to powerful plum-assignment committees (where more lobbying and manipulatng occurs), followed by eventual promotions to chairmanships, then more years go by with more connections, lobbying, loopholing, and laws with unintended consequences…until a vital piece of the puzzle is lost, or something blows up in all our faces, or even the world’s faces.
Any society where expediency, violence, and corruption are rewarded, the most expedient, violent, and corrupt will rise to the top. They use their cunning, intellect, and ability to crush their competition in their greed for power and money. The most successful victors will rise to the top of the barrel (the most ruthless, the most cunning, the most corrupt, and the most manipulative), while others below them are forming alliances, tightening connections, exploiting loopholes, creating more loopholes, gaining and consolidating power and momentum, then waiting…just waiting for the right time to strike.
What’s even more frightening is the actions they take to keep their power and money once they’ve reached the top. The most common way is to create overwhelming dependency on the power source, essentially handing them more power.
The Mafia is one example, as is Rod Blagoyevich, Ahmedinajad, Kim Jong Il, either of the Castros, the Taliban/Al Qaeda, and the entire Democratic Party hierarchy is another--Obama included. The policies he’s enacted, as well as those he’s trying to enact, are good indicators of his quest for power and money—even if it’s yours by law. He and they have the power to change laws (which they are doing), seize businesses and property (which is happening), create dependency (which is happening), tax us blind (which is beginning to happen), and steer us down a path that is clearly hazardous to the economy, let alone the world, all because of personal prerogative.
They can also crush you (through laws, regulation, and the tax code) if you try to get in their way. The Mafia had the power of life and death over you (through violence), and your business (by controlling competition), but the government could easily have someone "offed" as it were. Which one is worse? They're both the same.
How did it all ever get this far? We weren’t paying attention, and we are guilty of falling for shiny things, fresh faces, and pretty words that evoke wonderful fantasies. We were dazzled by brilliance, and always baffled by bullshit. Jon Stewart aptly calls this "democracy inaction."
We're such big fans of complacency and the status quo--anything that prevents us from having to think or act. This is why technology plays such a huge role in our lives--push a button, and we're instantly gratified. No thinking or acting involved here!
Now that the fantasy is over, and the bullshit has begun, we still have one power left to thwart the power grab—the ballot box. We can vote each and every one of the jackals out of office once they come up for re-election, and keep voting incumbents out of office so they don’t ever get a chance to become entrenched power-brokers and money-robbers.
This also extends to anything else we can “vote” out—CEOs, certain powerful products, certain powerful companies, etc. How do we do it? We vote with our wallets, we boycott, we protest, we dump shares, and we encourage others to do the same.
Give the power back to the people? How about we TAKE IT BACK like it was taken from us? We start paying attention, we stand up, and we fight back—not with weapons, but with words and deeds (like voting, dumping shares, protesting, etc.), and quit standing around waiting for someone to hand it to us.
Let’s eradicate the scum that inevitably rises to the top by preventing them from getting that far. While we're at it, let's take back control of our own thoughts and actions by turning off the technology switch (or at least turning it down).
The longer they hang around, and the more connections they make, the more corrupt they become, as witnessed by Barney Frank, Nancy Pelosi, Chris Dodd, Tim Geithner, and others. Former senator Ted Stevens comes to mind, along with former senator Bob Dole. Oh, and let’s not leave out Bernie Madoff by any means!
The quest starts in the early days when a plan for making more money and earning more power becomes the #1 goal. The first step in attaining this goal is to get hired, then plans are carefully laid to attain longevity through repeated fundraising and charismatic campaigning. As the years go by, connections are made, laws are written (carefully—with back doors and loopholes aplenty for self-sidestepping), and lobbying for other laws and loopholes occurs, then the assignments to powerful plum-assignment committees (where more lobbying and manipulatng occurs), followed by eventual promotions to chairmanships, then more years go by with more connections, lobbying, loopholing, and laws with unintended consequences…until a vital piece of the puzzle is lost, or something blows up in all our faces, or even the world’s faces.
Any society where expediency, violence, and corruption are rewarded, the most expedient, violent, and corrupt will rise to the top. They use their cunning, intellect, and ability to crush their competition in their greed for power and money. The most successful victors will rise to the top of the barrel (the most ruthless, the most cunning, the most corrupt, and the most manipulative), while others below them are forming alliances, tightening connections, exploiting loopholes, creating more loopholes, gaining and consolidating power and momentum, then waiting…just waiting for the right time to strike.
What’s even more frightening is the actions they take to keep their power and money once they’ve reached the top. The most common way is to create overwhelming dependency on the power source, essentially handing them more power.
The Mafia is one example, as is Rod Blagoyevich, Ahmedinajad, Kim Jong Il, either of the Castros, the Taliban/Al Qaeda, and the entire Democratic Party hierarchy is another--Obama included. The policies he’s enacted, as well as those he’s trying to enact, are good indicators of his quest for power and money—even if it’s yours by law. He and they have the power to change laws (which they are doing), seize businesses and property (which is happening), create dependency (which is happening), tax us blind (which is beginning to happen), and steer us down a path that is clearly hazardous to the economy, let alone the world, all because of personal prerogative.
They can also crush you (through laws, regulation, and the tax code) if you try to get in their way. The Mafia had the power of life and death over you (through violence), and your business (by controlling competition), but the government could easily have someone "offed" as it were. Which one is worse? They're both the same.
How did it all ever get this far? We weren’t paying attention, and we are guilty of falling for shiny things, fresh faces, and pretty words that evoke wonderful fantasies. We were dazzled by brilliance, and always baffled by bullshit. Jon Stewart aptly calls this "democracy inaction."
We're such big fans of complacency and the status quo--anything that prevents us from having to think or act. This is why technology plays such a huge role in our lives--push a button, and we're instantly gratified. No thinking or acting involved here!
Now that the fantasy is over, and the bullshit has begun, we still have one power left to thwart the power grab—the ballot box. We can vote each and every one of the jackals out of office once they come up for re-election, and keep voting incumbents out of office so they don’t ever get a chance to become entrenched power-brokers and money-robbers.
This also extends to anything else we can “vote” out—CEOs, certain powerful products, certain powerful companies, etc. How do we do it? We vote with our wallets, we boycott, we protest, we dump shares, and we encourage others to do the same.
Give the power back to the people? How about we TAKE IT BACK like it was taken from us? We start paying attention, we stand up, and we fight back—not with weapons, but with words and deeds (like voting, dumping shares, protesting, etc.), and quit standing around waiting for someone to hand it to us.
Let’s eradicate the scum that inevitably rises to the top by preventing them from getting that far. While we're at it, let's take back control of our own thoughts and actions by turning off the technology switch (or at least turning it down).
Friday, April 03, 2009
Thursday, April 02, 2009
Pulled Off the Comment Section of FARK
"Economics 101
Let's say that Al has $100 worth of wood and builds a table out of it. Bob comes along and buys the table for $300. Bob is (economically) even, as he traded $300 cash for a table worth $300. Al is up $200. Nobody else on earth is affected at all. $200 in new wealth is added to the GDP. Now let's say that the government taxes Al $100 and uses the money to pay a government worker or on some bailout/stimulus plan. Bob is still even, Al has $100, and the recipient of the government handout has $100. You still have only $200 added to the economy. Not one penny is added to the economy by the government's tax and spend plan. If you consider that Al would have spent the $100 on something he values and that creates profit for the seller, the tax/spend transaction is economically negative.
/we're so screwed."
Let's say that Al has $100 worth of wood and builds a table out of it. Bob comes along and buys the table for $300. Bob is (economically) even, as he traded $300 cash for a table worth $300. Al is up $200. Nobody else on earth is affected at all. $200 in new wealth is added to the GDP. Now let's say that the government taxes Al $100 and uses the money to pay a government worker or on some bailout/stimulus plan. Bob is still even, Al has $100, and the recipient of the government handout has $100. You still have only $200 added to the economy. Not one penny is added to the economy by the government's tax and spend plan. If you consider that Al would have spent the $100 on something he values and that creates profit for the seller, the tax/spend transaction is economically negative.
/we're so screwed."
Subscribe to:
Posts (Atom)
