Posts tagged “credit”

2012 Year in Review - The Ridiculous

January 1, 2013   1:00 am

Welcome to “2012 Year in Review: The Good, the Bad, and the Ridiculous.” If you’re reading this as they’re posted, it’s backwards; but, if you’re reading back through the blog archives, they’re in order.

2012 has been quite a year. We survived 3 ends of the world, by my count. That’s pretty ridiculous, true, but our very existence here means that they must be, so we won’t waste any more words on that. What did make the cut?

The “War on Women”

That this tops the list should not surprise my regular readers; several of my posts this year (including this one and that one when it first broke) dealt with it. Now, the “war on women” is not to be confused with the “war on a woman”; that I addressed in 2008 (first item). No, in yet another display of Democrat projection, this one was an accusation against Republicans.

It started with a strange question in the Republican primary, shot to the forefront with Sandra Fluke and Rush Limbaugh, and continued throughout the campaign. The Obama campaign created a horribly insipid animation called “The Life of Julia,” where their heroine (um, victim?) displays her dependence upon government at every stage of her life. It was presented as if it was a good thing; the government as boyfriend, husband, business partner, and health insurance provider. To me, the suggestion that women need, or would want, something like that is truly offensive and sexist.

Granted, the Republicans didn’t help themselves against these charges. Todd Akin and Richard Mourdock, both running for the US Senate, answered questions about abortion by emphasizing their “no rape exception” views – clumsily. Akin should have removed himself, but did not, and squandered a gift-on-a-platter opportunity to remove a senator who has not been that helpful to her home state. Mourdock was a Tea Party Republican who defeated a long-term incumbent in the primary, yet went down to defeat in a state that Romney took 54/44.

Really, the war on women was nothing more than the “they want kids to starve” meme from the late 80’s and 90’s, where ridiculous charges were made against Republicans, and those charges went unanswered. This year, as well, the response was tepid. What Republican wants to take away health care? The charge is ridiculous, and should be addressed as such. Otherwise, they’ll continue to make these outlandish statements “They’re gonna put y’all back in chains!”, said our vice-president. They took “binders full of women” out of the context of people-to-hire and somehow turned it into a negative. “You didn’t build that” - oh wait, that’s just poor sentence structure. Please! There is no poor sentence structure in a pre-written campaign speech!

The main problem with all of that, though, is that it worked. Which brings me to my next item…

Barack Obama Reelected

When Obama was elected in 2008, that fact made the “bad” list for that year. Looking back at that post, in view of the past 4 years, I see that I was being way too generous. He presided over 4 of the toughest years in recent memory, making things worse with every decision (or indecision). His party hasn’t passed a budget in over 3 years now, and one of his was so unrealistic that it was defeated 96-0 in the Senate. We lost our top credit rating, and that cannot be blamed on George W. Bush; S&P downgraded us because of our lack of a plan of paying back our debt, not the size of it. This administration has brought us economic time bombs in the form of Obamacare mandates and repeated “debt ceiling”/“fiscal cliff” showdowns, one of which is staring us down even as I write this.

But, all of the above is not the ridiculous part; it just proves that I was right to put his election on the bad list 4 years ago. No, the ridiculous part is that the American people, seeing all of the above, put him back in office for another four years. My countrymen are playing the part of fools, falling for the ridiculous claims about their opponents, while failing to see that their own are the ones leading us down the slide to mediocrity. They’re behaving like little kids; what little kid wants to vote for the guy who says “Hey - we’ve got to pay for all this free candy we’ve been eating”? No, they vote for the guy who promises even more free candy, while demonizing those who generate enough wealth for our government to skim the top of it to provide the free candy. They cheer when the rich get poorer, not noticing that this does not make them richer, it only diminishes the overall wealth of our nation.

The National Park Service has signs in several forests warning against feeding bears, because they will become dependent on that food, lose their hunting skills, and become aggressive. Yet, the very people who suggest that this applies to human beings as well are branded as hate-filled and greedy. America needs to wake up, and do the hard work of dealing with the withdrawal symptoms of this free ride coming to an end, or the country itself will find itself in decline. Sadly, I don’t see this generation as one willing to sacrifice its own comfort to secure the comfort of future generations.

Reactions to Mass Murder

Again, I get to fault my fellow citizens. Sadly, our nation endured two mass murders this year; one at a midnight showing of The Dark Knight Rises in Aurora, Colorado, and the other at Sandy Hook Elementary School in Newtown, Connecticut. On my first visit to Facebook after learning about the Sandy Hook shooting, I was greeted with lots of “Don’t Take Our Guns!” images. Really, guys - that’s the way you show compassion for 25 families who lost their kids a scant few weeks before Christmas? And, the other side is just as bad. “Why are these guns on the street?” is not the question (although “because, Constitution” is the easy answer). Confiscating every gun in the Union would not bring an ounce more comfort to those families who lost their children and adults that day.

The proper response to something like this is sorrow and compassion, then anger, then punishment (if applicable), then speculation on prevention measures (within the parameters of our founding law). Jumping to #4 dehumanizes the response. I fault the gun-grabbers with having the non-Constitutional lead in this; but, while I did fault people above for not responding to ridiculous charges, there is a time for those sorts of debates. While the dead bodies are still warm is not that time.

Year-In-Reviews in Early December

On a lighter note, when did December become not-part-of-the-year? How can you review a year with nearly an entire month remaining in that year? Unless you’re covering NASCAR or the college football regular season, the first week of December is way too early to be publishing retrospectives (and, for the latter, you’d better wait until the conference championships to write it up). Look at the newsworthy events this year - Sandy Hook, the deaths of several notable people, and George H. W. Bush’s hospitalization, just to name a few. Don’t review a year until it’s over.

 

There you have it. I’m sure I’ll have no problem filling out another one of these in 2013.

2011 Year in Review - The Bad

January 3, 2012   8:00 am

This is part two of the series “2011 Year in Review: The Good, the Bad, and the Ridiculous.” These are the things that were bad, but didn’t quite make the ridiculous list. (In many cases, though, they were close.)

Japan’s Handling of Fukushima

The tsunami that hit Japan in March of 2011 was bad - really bad. Nearly 16,000 people lost their lives because of it, and estimates on the damage it caused was over $200B. The enormity* alone would have been enough to land it on this list. However, the nuclear angle of the tsunami sent it right to the top.

Initially, the Japanese government declared a state of emergency. Then, they said that they had everything under control, and did not need to take any further steps. Some people familiar with reactors were not comfortable with this, and sadly, they were proved correct. The government of Japan admitted, little by little, how dire the situation was, which ended up with a complete meltdown of three reactors, and several hydrogen explosions. The contamination was likened to Chernobyl; thankfully, that disaster has not produced the ill effects that were forecasted for it. Hopefully we will see the same at Fukushima.

While there is no guarantee that any other nations’ aid could have prevented these meltdowns, it underscores the need for honesty and transparency in government, particularly during times of disaster. Thankfully, the myriad armchair nuclear scientists have moved on to other pursuits, and Japan has cleanup well underway. However, the effects of this disaster will be felt for many years to come.

Gabrielle Giffords Shot; Moonbats Expose Themselves

On January 8th, 2011, Rep. Gabrielle Giffords (D-AZ) was holding a constituent meeting in Tucson when she was shot at point-blank range. The shooter then turned and sprayed bullets into the crowd, killing several people. Miraculously, Rep. Giffords survived the shot, though she spent the majority of 2011 in the hospital or in rehab facilities. As the year closed, she was nearly ready to resume her regular schedule in Congress. While she was in the hospital, her husband flew on one of the final Space Shuttle missions. The shooting was bad, but her recovery has been one of the good news stories of 2011.

The man who shot her was a troubled individual, an anarchist who believed in “nothing” according to his friends. However, this did not stop the rush-to-judgment speculation of many media members. The first meme was that this was a deranged right-wing lunatic, acting out a map produced by Sarah Palin’s PAC in 2010. This map showed vulnerable seats with a cross-hair icon; of course this was the dog-whistle for the loonies to assassinate Democrats! Well, when that fell though, they still stuck with the right-wing narrative, until finally recanting when it was clear that this was not the case. Their rush to judgment gave us a window into their hearts, and what we saw was not pretty. (It also wasn’t news to many of us; just confirmation.)

Finally, many used her shooting to condemn the “violent” rhetoric (AKA firearms metaphors) that had become a part of the political system. This civility proved to be short-lived, and gave rise to the #NewTone Twitter hashtag, used by conservatives to retweet some of the vitriol directed at them.

These reactions illustrate the value of freedom of speech. Should these people have reacted the way they did? Of course not. But, without free speech, we wouldn’t know who the moonbats are. There are “journalists” who I simply will not patronize based on their behavior during this terrible tragedy.

US Credit Downgrade

In August, Standard and Poor’s downgraded the credit rating of the United States from AAA to AA. They did this in response to the failure of our country to address our looming deficits. When you look at our economic policies from 2006 forward, including 2009 being the last year with a Senate-passed budget, it’s hard to fault them for doing so. Our nation is ignoring the signs that tell us we should change; this year, the debt eclipsed our annual GDP. We cannot continue to spend money we do not have, while ignoring debt we have already accrued. Austerity is probably not going to get anyone elected, but it’s what we need; the world economy is no better than ours, so we cannot base our recovery on exports to other nations. We should position ourselves to ride out this contraction, so we will be ready to take advantage of the next expansion.

The Cain Train Derailed

I was on the Cain Train. I really liked Herman Cain’s plans for our nation. He was not a Washington insider, he has proven results with taking indentured businesses, making them live within their means, and growing them. His 9-9-9 plan attacked the sacred cow of tax code, proposing a much more fair solution. I wrote about him at length. However, as he rose in the polls, women began coming forward claiming sexual harassment and inappropriate behavior. These were bad, and he sadly put himself in the position of being vulnerable to those claims. His response, through his lawyer, was even worse; it sounded like something out of the Clinton administration.

Character matters. Even if every one of these claims were false, his inability or refusal to deny them outright gave us pause. A legal response that it was none of our business sounded fishy. Learning that he gave these women money unbeknownst to his wife just made me hang my head. Now, I realize that this comparison I’m about to make isn’t really apples to apples, but bear with me. When the Bible lists qualifications of a pastor, two of them are “husband of one wife” and “manages his own house well.” The first is important because fidelity to one’s spouse is an indication of fidelity to the rest of what they claim to believe, and the lack of it the same. The second lets us know that this person can work with people with whom they are close without letting them dissuade him from doing what it right. We’re not electing a pastor - I get that; the character required, however, is very similar. Mr. Cain did not manage his own house, could not refute these charges, and thus was drummed out of the race for Barack Obama’s job.

 

While there were plenty of bad things that happened, we can generally learn from them. May we learn, and not repeat 2011’s mistakes in 2012.

p.s. Intentionally left off this list is the Jerry Sandusky / Penn State scandal. Such unspeakable horror - may anywhere else this may exist be exposed, and the perpetrators be punished to the full extent of the law, and then some.

* Word nerd tip - “enormity” is not a synonym for “size,” but carries a negative connotation as well; in other words, it’s not just big, it’s big and bad. Its use here is appropriate; its common use elsewhere usually is not.

#OWS, Educate Thyself - Credit and Banks (Part 2)

October 22, 2011   11:28 am

Previously in this series - Part 1 - Introduction

Credit is a big part of the Occupy Wall Street movement. They want debt forgiven, some even calling for an across-the-board forgiveness of all debt. By having this demand, they reveal another area where their college education has failed them. Let’s do a quick version of what they should have learned.

To illustrate, let’s create a hypothetical scenario. Person 1 (let’s call him “Bill”) has a business idea, but lacks the funds to make it a reality. Bill is sure that his idea will make lots of money, but he is frustrated because he cannot implement his idea. Person 2 (let’s call him “Tom”) has money that he has accumulated that he is not actively using. Bill comes to Tom and asks if he can borrow some of Tom’s extra money, so that he can implement his awesome idea. Tom is not sure about the purported awesomeness of Bill’s idea, and is reluctant to lend Bill the money. Bill is so confident in his idea that he offers to repay Tom 110% of the money that he wants to borrow. This provides Tim an opportunity for financial gain, and he decides to lend Bill the money he needs.

This story illustrates some of the basic concepts of credit.

  • Loan - money belonging to someone else, that is temporarily made available to another person.
  • Interest - money, in addition to the loan amount, that is paid to the lender.
  • Risk - the likelihood that the loan and interest will not be repaid.

In our story, a 10% interest rate was enough to make Tom assume the risk that Bill’s idea would generate the money Bill thought that it would.

Banks and other lending institutions have simply taken the above scenario and enlarged its scale. They take depositors’ money, and lend it to those who need it. They also provide services, such as securing the money they’ve received, providing convenient ways for people to get to their money. For some services, banks charge fees; for some services, banks pay interest. Because banks must be able to return depositor’s money on demand, they must assess risk before giving a loan. Some risk they simply will not accept; some risk they will accept, but charge the borrower a higher rate on the money to make up for it; and low risk is generally acceptable.

Student loans, a particular interest item to the #OWS set, are no exception. It is understood that obtaining an education may require money that a fresh-out-of-high-school person probably does not have. (Whether it should is a different topic altogether.) However, lending institutions see the value in having an educated populace, and are willing to extend loans to students to allow them to obtain productive skills. They realize that college-educated people are more likely to have good jobs, buy cars and homes, take vacations, and do lots of other things that inject money into an economy.

So, what’s the problem with them forgiving loans? It’s theft, plain and simple. Whoever was extended credit would be stealing the money not from the bank, but from the depositors of that bank. The bank is simply an intermediary set up to provide a mutually-beneficial service to both saver and borrower. (I’ll tackle the class warfare aspect in the next post, but it’s still their money no matter how much they have left.)

Another assumption regarding student loans is that the degree obtained will help this happen; with many degrees these days, a person may be no more qualified to hold employment than they were before they went to college. When I went through college right out of high school, my adviser recommended certain degrees as being more employable than others. I don’t know if colleges don’t have that, or if advisers these days think that we really need a ton of Fill-in-the-Blank Studies degrees; either way, that sort of degree has limited employment opportunity. If you obtained that sort of degree, and now can’t get a job, you rolled the dice and lost. Now, it’;s time to act like a grown up and get whatever work you can to provide for you (and your family, if you have one), and start repaying that loan you took out.

David Burge (AKA Iowa Hawk), via Twitter, provides a nice summary on this point.

Lemme get this straight. A bank lent you $100k that you handed to a college for a worthless degree, and now you’re mad at… the bank?

Banks provide an important service by offering credit. If that credit is not repaid, the system collapses. If you think it’s hard getting a job now, try bankrupting all the employers, and see how much more plentiful (or scarce) the jobs become.

Next in this series - Part 3 - Income Inequality