What Did the Regulators Know, and When?

Long before the recession, the key players knew what was "going down" and participated in seeing that it did. After this "sting" was played-out, trillions of dollars of assets changed hands at deeply discounted prices. Enemies were punished and the faithful were rewarded. Long lists of direct beneficiaries include a long list of legislators.

In the movie, "The Sting", Johnny Hooker was shot by Henry Gondorff who in turn was shot by the fake G man. The mark had no route to retribution because Gondorff and Hooker were "voted out of office".

Prior to the 90-91 recession, the Fed kept one foot on the brake long enough to produce a similar result. This time, it took long-term planning and the cooperation of many. The timing of the mark to market rules was perfect for putting a strangle hold on bank lending just when it was time for the elite to buy.

Thirty years of steadily growing "injection" of low cost labor from the far east into our "system" has increased the supply of goods relative to the supply of money and thus brought inflation down. Housing has been very affordable primarily due to the resulting low cost mortgages. A readjustment was required when incomes were jerked out from under highly leveraged, bubbled, houses, but there is already evidence that a new bubble will develop soon after employment picks-up. Our laws favoring housing over all other personal investments have not been repealed.

Some of those who believe in the right of all to own homes, no money down and no credit established, are the naive stooges of the powerful. They played the Sting roll of the constable who was conned into doing the job of hustling the mark away. This con was well conceived and well played.

in reference to:

"I say Plenty, and long before most people had heard of CDS, CDO, or SIV."
- What Did the Regulators Know, and When?, Arnold Kling | EconLog | Library of Economics and Liberty (view on Google Sidewiki)

Education and Growth

It is intuitive that education expands career choice for the individual and, thus, "success" for the nation. So what?

The questions raised by the referenced statement go out like spokes of a wheel. Is our current penchant for excessive spending actually producing "net additional education"? Do costs exceed benefits? What is investment in education? Investment in buildings? Investments in sports programs? Investments in day care programs? Is home schooling more expensive and more effective than public schooling? What is working and what is not?

The statement may well be true in regard to the world of 1900, when illiteracy was common. However, during the past 40+ years, spending has soared while test scores have flat-lined. Even when the first half of the century is included, the statement may well be false with rising incomes being the cause of higher education, not the other way around.

Today's anecdotal evidence is that children are being separated into motivated groups and unmotivated groups. Each group is receiving an education that is much different than the other.

My belief is that the value of an education is far greater than the average increase of individual income, but objective measurement of such value is not within our grasp. Growth, as measured by GNP, is readily available. During the past 20 years, it must be the Chinese who are doing the best job of educating their people because China has been and is the "engine of growth".

in reference to:

"no variable from 1900 better explains success in 2000 than investment in education."
- Education and Growth, Arnold Kling | EconLog | Library of Economics and Liberty (view on Google Sidewiki)

Google Reader -- New-Improved-Broken-News

Many years ago, Marilyn and I discovered that although we subscribed to one newspaper, we read two very different newspapers. My focus included the editorial pages, the business section and the bridge column and hers included the living section, the local news and the obituaries. Today, the long list of RSS feeds (individual new streams) subscribed to by Marilyn is very different than mine. Having been married 37 years, we have much in common, but I dare say that less...

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Comments: Helpful or Not!

Good article! Comments like articles are: Helpful or Not! Search engines are wonderful. They put articles in order, enabling us to easily find the best; which is defined as the articles most likely to include the information we seek. Large amounts of time are saved through this system that helps the "cream rise to the top". We strive to read the best and avoid the rest.

Heretofore, comment organization has leaned toward chaos. ...

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A Source of Great Leads

Please consider that Sidewiki will become a valuable "referral service" for you. Your RSS feed shows that you want wide distribution of your product. Continue to write "good stuff" and Sidewiki will help you attain wider distribution. Sidewiki will help the cream rise to the top.

in reference to: What to do about Sidewiki » TalkBiz News: The Blog (view on Google Sidewiki)

Trite But True - Paradigm Shift

The "news stream" is being reacquired by the public. Various powerful "partnerships", such as Wall Street-Media partnerships and Washington-Media partnerships are being attacked like cup cakes that have been left too long on a picnic table.

Sidewiki gives the public another weapon. Voices will be heard. In the "information age" passing unread, 1,000 page bills during the dark of night should come to an end. Biased reporting of "news" as the truth will be met by individual challenges. Congratulations to Google for providing another way for the voice of individuals to be heard.

in reference to: Google Sidewiki (view on Google Sidewiki)

Public Money Goes the Wrong Way!

Public money goes the wrong way. The public is buying bonds and selling stocks. It is a good time to sell bonds and to buy stocks.