Featured in the Plain Dealer’s What Local Bloggers are Writing About

So, I just logged onto my blog account, and find that my blog was apparently quoted in the Plain Dealer’s October 5th post of “What Local Bloggers are saying about…the government bailout.”    Maybe I should be happy I made the list.   But, it kinda sucks that of course one of the posts I write in a fit of frustration and verbal dumping is the one that gets quoted in the PD post.   Now I just feel like a crazy.

It doesn’t help that I’m several thousand miles from my home right now suffering from jetlag, feeling clutzy and worrying my cell phone that I left sitting on the toilet in the bathroom made it’s way into the toddler’s bath tonight and I’m not yet sure it’s going to function again when it dries out.

Ugh…so tired.

Until next time,

Lorelei

More on the Bailout

I know, I’m beating a dead horse and I need to let it go.   But if I get one more email about this stupid bailout and how it’s a terrible idea, or how if you took $85,000,000,000 and distributed it to the 2,000,000 American citizens over the age of 18 that we’d all get $425,000 each (it’s actually $425, before taxes), I may have to scream.

Here’s the thing:

Here’s an interesting breakout of what the bailout could cost individual taxpayers, broken up by income level.

The article assumes every dollar the government has put into the bailouts this year ($1 trillion, which includes AIG, bear stearns, fannie/freddie, the auto industry, plus the $700 billion package) will return absolutely zero. This is of course, unrealistic, however does show the worst possible scenario.

Cost to the bottom 50% income bracket – $27/year,  cost to the top 1% – $173,000/year

If you think about the email in reverse, would it be worth it to each taxpayer to pay $425 to prevent a depression and hopefully protect your retirement/child’s college tuition fund/ability to get money out of the bank/ability for small businesses to get money out of the bank and stay in business?  

Sorry, I’ve read a lot about this.   I don’t know what the answer is, but I feel like it’s important we consider the consequences.  That, and I feel my blood pressure spiking. 

Yes, the banks made a huge mistake, yes, the government made a huge mistake. Am I happy that the bank CEO’s are getting big fat severance packages when their banks get sold off?   No.   But, I also understand that life isn’t fair, and regardless of what we do, certain people in this world will likely continue to get big fat checks whether or not they deserve it.   And all I can control are the choices that I make in life. 

Until next time,

Lorelei

PS.  If you disagree with me, feel free to let me know.   I’m not an economist by any means, but I feel like we all need to think about this beyond the email forwards we receive and beyond how we feel about this emotionally.

House Votes Down Bailout Package

Ok, so, I go to log into WordPress and was completely shocked to not see this as a headline on ANY of the featured blogs.   Is no one paying attention to this stuff?

http://www.msnbc.msn.com/id/26884523?GT1=43001

I don’t know, maybe I’m overreacting.   But, to me, the impact of this decision is a significant to this country as the impact of 9/11 was.  

And, the some of the most interesting points follow:

Despite pressure from supporters, not enough members were willing to take the political risk just five weeks before an election.

and

“We’re all worried about losing our jobs,” Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. “Most of us say, ‘I want this thing to pass, but I want you to vote for it — not me.’ “

Nice.    Un-friggin-believable.   Again, I have no idea what the solution is.   But, the politicians who voted no are doing so not because they are intelligent and think that voting yes is a bad idea, they are voting no because they are scared to take a political risk.   I hope that every single one of them who voted no–for that reason—gets the boot and loses their jobs come time for re-election.  What a bunch of pansies!

In Response to AIG Bailout

I received the following forward from a friend of mine on Friday:

Fw: We Deserve It

This is GREAT!!!!
If only some way, some how this could come to pass…

Dear Congress and Mr President:

I’m against the $85,000,000, 000.00 bailout of AIG. (That’s 85 BILLION DOLLARS). Instead, I’m in favor of giving $85,000,000, 000 to America in a “We Deserve It” Dividend.

To make the math simple, let’s assume there are 200,000,000 bona-fide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up. So divide 200 million adults 18+ into $85 billion that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a “We Deserve It
Dividend”. Of course, it would NOT be tax-free. So let’s assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000, 000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000 .00.

What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage – housing crisis solved.

Repay college loans – what a great boost to new grads
Put away money for college – it’ll be there
Save in a bank – create money to loan to entrepreneurs
Buy a new car – create jobs
Invest in the market – capital drives growth
Pay for your parent’s medical insurance – health care improves
Enable Deadbeat Dads to come clean – or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces. If we’re going to re-distribute wealth let’s really do it…instead of
trickling out a puny $1,000.00 ( ‘vote buy’ ) economic incentive that is being proposed by one of our candidates for President.If we’re going to do an $85 billion bailout, let’s bail out every adult U S Citizen 18+!

As for AIG – liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here’s my rationale. We deserve it and AIG doesn’t. Sure it’s a crazy idea that can ‘never work. But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC. And remember, The Family plan only really costs$59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam. Ahhh…I feel so much better getting that off my chest.

Kindest personal regards,
A Creative Guy & Citizen of the Republic.Fw: We Deserve It

Here’s my response:
The thing is, the gov’t actually bought part of AIG and now owns it, so it didn’t just hand them $85 billion. Hypothetically this means that the taxpayer money will be returned to the govt and our taxes shouldn’t have to get raised to cover it. And the other thing is, while you and I would all probably use the money wisely, the majority of Americans wouldn’t, for whatever reason. Look at all of the people who win the lottery. 99% of them end up filing bankrupty at some point after having won, because Americans have no clue how to manage their finances and feel entitled to get whatever they want. I can say this because my poor mother is an example of one of these people who needs a swift kick in the arse sometimes to get her head on straight. A combination of that entitlement, poor management of these banks, and poor government oversight/regulations has gotten us into this mess.

But, at the same time, getting a check for $300,000 would be nice. I don’t know what the answer is to this problem, other than people really need to stop spending money that they don’t have, and start saving some of the money that they do have. The only control we have in life is over our own personal choices.

Nevermind that $85 billion split up among 200 Million people only comes out to $425 per person.   This, by the way, in no way reflects on my friend who passed along the email.   She is a very smart and sweet person, and who among us wouldn’t want a check for a large sum of money, no strings attached?  It sounds nice in theory. But, sometimes I wish the economy would come crashing down temporarily and we’d end up in a depression, that maybe it would make some of the people in this country wake up from this sense of entitlement.   Nowhere does it say in the constitution we have a right to life, liberty, the pursuit of happiness…a house, two cars and a plasma screen TV.   Guess what, if you can’t afford a 20% down payment on a house, then you probably shouldn’t be buying it anyhow.   Live in an apartment, I did for the first 23 years of my life.   Can’t afford a new car?   There are plenty of used ones out there, or try taking the bus.  I’m just tired of all of this, and I’m tired of listening to people whine and manage their finances poorly and manage their lives poorly.  I’m tired of the companies and banks who take advantage of those who don’t know any better….predatory lenders, telemarketers, all of them.  I’m tired of the media who tells us we can have it all.   And I’m tired of our government not doing anything real about any of this.

What do you think?

Until next time,

Lorelei