The Good, The Bad and The Ugly

Finally we might get some movement on solving the bank and mortgage mess! It is about time. I've always said if the problem is really bad loans then get them out of the system and everything will be fine.

Now we here that's exactly what might happen. New Tres. Sec., Timothy Gheithner has suggested the creation of a 'bad bank'. This bank would be an aggregator used to accumulate the loans that are in default, essentially removing them from banks books and getting them out of the system.

This 'bad bank' would absorb all of the delinquent assets and turn our banks back into 'good banks' again! Stupendous. But wait, here's the ugly part, there's not enough money left in the TARP fund to buy all the bad loans.

The answer might be to seek investment capital from the private sector. With enough government guarantees on returns, that money might come flowing in fast and furious. However, the real ugly part would be if the American tax payer were to be burdened further with those guarantees.

For now all we can do is take a wait and see stance on this. This is the most logical decision to be made by the Treasury since this whole thing started over two years ago.

Let's hope Timothy 'the dodger' Geithner is right. I think he is, it's what the economist I follow have been saying for a while ....and they are all conservatives so maybe they all got it right this time.

What? 'the dodger' comment above? What's that all about? Sorry, it's just my swipe at yet another Obama appointment where the appointee had a tax problem....but that's a subject for another blog isn't it.

Sorry, back to the subject at hand. If the Secretary of Tresury is correct on this one, the fix could be in and we might see our economy improve as early as the 4th quarter of this year.

But the recovery may still be blunted if the Democrats are successfully in Porking America again with this huge, over inflated, pork barrel, pig belly so called stimulus package. Again, we will all just have to wait and see.....zzzzz.....zzzzz..... Somebody wake me up when this nightmare is over please! ;-)

To One Sided

Okay, I just realized something. I've been to one sided. I'm bashing the so-called stimulus plan, referring to it as a huge chunk of pork. It really is nothing more than one giant 'earmark' written as a law.

But that's not the point I want to make today. Along come the Republicans and they band together and not a single Republican votes for the bill. They rant about the pork and they rave about the lie Obama supposedly told about working with both parties.

The one thing they don't do is offer any viable solutions themselves! Tax cuts is cannot be the end-all/be-all answer for the Republican Party every time their is an economic crisis. The answer must be radical change, but not in the way that the dems want. More spending is NOT the answer either!

These guys just don't get it! We need real change! Change, real change, would be the elimination of the tax code as we know it. You want to talk change, let's change our economy from a spending economy to a saving economy by installing the Fair Tax! That's real change.

Change would be the elimination of Corporate Taxes. Everybody talks a good game about bringing manufacturing jobs back to the U.S. but nobody is doing anything about it! Imagine if corporations didn't pay any tax at all! (well they don't really, we pay the tax in the form of higher prices on goods and services)

All that money would be enough to make up for the extortion large manufacturers pay to the Unions. That's CHANGE!

Nobody gets it. Obama hasn't changed anything yet, he's just changed who's in charge. We still have the same old politics. The Republicans need to quit complaining and start offering us something real.

Just pinning the bad ideas on the Democrats so that they get full credit when these ideas fail ...and believe me, they will fail... is not good for America. If Republicans want to be seen as more than obstructionist, then they need to propose real and radical change!

"Change we can believe in", it's what Americans thought we voted for, now can we get some please?!

Porked Again!

While the President lectures America's CEO's about excessive pay and the Vice Pres plays buddy-buddy with Al Gore, the Democratically controlled Congress voted to hand $93,000 to each and every member!

So the earmarking will stop under the Obama administration, right? Of course that's unless you take into consideration that the $800 billion stimulus is nothing but one HUGE earmark!

Now the Dems have found a new way around future earmarks, you need only look at their most recent actions. They just gave themselves $93,000 per congressman as pocket change.

It's being sold to us as 'a necessary increase to help out constituents'. Bull Sh%#! It's an earmark without being an earmark!

It has been intimated by the Vice President that its patriotic to pay taxes. It has been suggested by Harry Reid and Nancy Pelosi that we all have to tighten our belts. So tell me something, why don't the politicians have to tighten theirs?

I thought we were going to get some leadership out of the Obama administration. Turns out we're all just getting Porked Again!

Here Today but Tomorrow? Not so much!

So the stimulus package is here! Yeah! The Dems are here to save the day. They intend to dump $800 billion dollars into the economy! That should get things moving again!

What? What do you mean only 3% of that money will make it into the economy over the next 18 months. Huh? How come 25% of the money isn't spent until 11 YEARS from now?

I'll tell you why, because ramming this particular spending package (notice I didn't call it a stimulus) through is nothing more than an attempt to create bigger government programs well into the future. This idea is as bad as the idea to stop charging payroll taxes on people making less than $50,000 per year.

You haven't heard much about how the tax break works because its a really, really bad idea as well. We all know that Social Security, Medicare and Medicaid are underfunded and virtually insolvent. We also know that the 'payroll' tax is what supposedly funds them.

So what's our solution to the problem? To have even less money come in to fund these programs? What?

We need a new program in America. We need to change this economy from a 'spending' economy to a 'savings' economy. We can't do that if the government keeps spending, spending and spending some more.

Taking away the payroll tax for some and not all is not the right step. The right step is scrapping the entire income tax system all together. Change our system to a consumption tax.

With a consumption tax, like the Fair Tax, every time someone buys something the government gets paid. Think about all those illegal aliens that burden our hospitals and school systems.

They would not be under the 'tax radar' anymore. They buy food, they pay tax. They buy gas, they pay tax. Heck, they buy anything, they pay a tax!

Our poorer citizens, you know the real Americans ....the ones that were born here or did the right thing and did what was necessary to stay here legally... those people would get a card to rebate them for the tax they paid!

That would transform our economy from spenders to savers! What's so wrong with that. There are many excuses why it can't be done, but those excuses are mostly made by politicians that would lose power and be forced to come up with REAL solutions to REAL problems.

Let's force the politicians to stop pitting us against each other based on whose wealthy and whose not and lets stop electing our politicians based on who will tax you less or who will rape the rich! It's time for a paradigm shift in the way we operate. Stop spending and save!