Ron Paul explains the Economic Mess

Here is an editorial by Ron Paul on the bailout. While I personally like Ron Paul's philosophy an and views, I find that so many of of his other supporters are just whacko. Anyway, it looks like he has economic problem well analyzed. Here are some quotes:

Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.

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The government doesn't like this [the fact that the market correcting itself producers winners and losers], however, and undertakes measures to keep prices artificially inflated. This was why the Great Depression was as long and drawn out in this country as it was.

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Using trillions of dollars of taxpayer money to purchase illusory short-term security, the government is actually ensuring even greater instability in the financial system in the long term.

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The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.

It is time this process is put to an end. But the government cannot just sit back idly and let the bust occur. It must actively roll back stifling laws and regulations...

Bailout Expanded

The Washington Times is reporting that the bank bailout is being expanded to include student loans, car loans, and credit card debt.

This makes me so ANGRY. The government wants to take my money and give it to rich people who already have shown they are irresponsible with money.

I don't begin to think I understand the "economic" problem. However, I do know that the "bailout" money is going to banks and investment firms who are run by people paid really, really large sums of money to be profitable.

I also know that the government has NO money of its own. The only way for the government to get money to do things is to take that money by force from individuals¹.

Our government is already in debt for over 9.7 trillion dollars. So, the only way for the government to give money to these banks and investment firms is to either pay with cash (which they don't have) or take out even more debt (which will have to be paid back in the future: so tax increases for me and my children).

I think as a taxpayer I am getting taken advantage of. I guarantee you that if Student Loans and Credit Card debt is added to the bail out, I will still cut two monthly check to Sallie Mae, a monthly check to DirectLoan and a check to Discover. In exchange for increased taxes in the future, I GET NOTHING!

Meanwhile, some Suit who made poor business choices gets to wipe his company's slate clean and start making TONS of money again.

So, here is my solution. If the government wants to bail someone out. Let them bail me out. If they wiped out my student loan and credit card debt, that would free up about 12% of my monthly budget. If they also "bail-out" my mortgage, then 32% of my budget would no longer be pre-set. Wow!!! If sending me $600 helps stimulate the economy, what could I do to stimulate the economy if I had over 30% of my budget free to invest and buy consumer goods EACH MONTH!!! Of course, I don't need a bail out because I am making all my payments.

Who needs to bail out the companies, who don't pay taxes when you can bail out the individuals who do pay taxes?

If the government does bail out the companies, then I want them to seize the assets of the companies and sell them off to subsidize some of the "bail out". Why should the American people get the raw end of this deal? Obviously the people running the companies are inept, so why should they be rewarded?


¹Corporations don't pay taxes. All taxes "paid" by a corporation are really only taxes that the company has collected from individuals and passed on to the government. Corporations pass the taxes they owe to individuals through higher prices paid on products or they may not pay their individual employees as much. They may also not pay as much of a dividend to the shareholders (individuals) Trust me, in the mind of a corporation, taxes are a business expense and are somehow passed on to the individual. The company's profits are not affected by the tax code.

Who caused the "Mortgage Crisis?"

As banks fall all around us and our financial markets take a beating, the media is pointing the finger at "greedy" capitalists.

However, are they really to blame?

Neal Boortz makes a compelling case that it we aren't being told "The Rest of the Story."

In his editorial, Neal recounts that 20 years ago or so the "BIG NEWS STORY" was that minorities and the poor could not get home loans. The media would run story after story showing where RACISM had prevented a minority from getting a loan, excluding the facts that the person seeking the loan had no money saved, no consistent job history, and a large pile of consumer credit card debt.

Congress told lenders that if they didn't shape up and find a way to get mortgages to these people, then congress would start regulating the industry even more. SO...the mortgage companies did find a way to give loans to people who weren't necessarily qualified. They developed a product called the "sub-prime" mortgage.

So. Who caused the mortgage crisis? Was it the "greedy" companies or was it an overzealous government? Or, was it a combination of both?

Book Survey: I Timothy

Erin and I are attending the Sunday School class on 1 Timothy this quarter. When I am a teacher, I hate it when people come to class unprepared. People want to have discussions in class about the subject matter, but how can I, as a teacher, facilitate a discussion when I am the only person who has taken the time to study the subject? That's one of the reasons most of classes are more "lecture" style than "discussion." I've studied the subject. I've become the expert.

Anyway, the teacher of the 1 Timothy class is a discussion teacher, so I am studying 1 Timothy so that I can contribute in a positive manner. I am using the methods that I taught to do the study. So, when studying a book, the first thing to do is the Book Survey method. Here is my Book Survey study of 1 Timothy.

Recent Scripture Slides

I've only created two new scripture slides recently.

Genesis 1:2

Hebrews 2:10