Stimulus, Jobs, Federal Governments, Change

The stimulus bills all over the world, not just in the Americas, all are done to put tax money, literally, to work. Now, the question is, does it work?

With the cities and states and provinces all dealing with dramatic falls in tax income, the bridges, roads, hospitals, and other public buildings are also falling way behind in repair. One bridge here had a wooden under structure, and when someone used a fire to keep warm (at least that is the assumption here) the bridge caught fire and put hundreds of thousands of commuters out of a means to get to work.

There are literally hundreds of other bridges all over the world that need to be either replaced or repaired, so governments are putting money into these projects to make jobs and to get the building done.

There are other things that have been left to basically fall down until someone got hurt. Minnesota had one situation where the bridge collapsed too.

This is where governments are all focusing their stimulus. But, there has to be an integrity, a sense of “doing the job well” and certainly the people need to understand that shoddy workmanship is no longer acceptable.

Counting on any government to get the entire society out of this mess is foolish, at best. So … what to do?

If  I make kitchen cabinets, for example, then I need to step up my craftsmanship to make the best cabinets I know how, to push myself to making cabinets that will last 20 or 30 years. A lot of places did build shoddy products, thinking that there would always be enough money in customer pockets to buy more shoddy but pretty cabinets. Today, that has come home to roost with those who built crappy stuff, because the customers just flat don’t have the money to keep buying crap.

If I am a cook, then make damn good food, not just chemical soup, literally. Take the time to use food that is nutritious, tasty, and definitely far better quality.

I have worked in several industries, and the most valuable lesson I ever got was “go for the quality, do the absolute best you can” and you will learn to do it better and quicker. Too long have companies made things with built-in obsolescence and basically crappy products.

We don’t have the money or time to waste on these products any more. Would you rather buy furniture that you KNOW you can use for quite a while, that is made to be comfortable, and has covering that is easy to take care of, or junk that you buy every 3 to 5 years?

I have seen housing built that, within 3 years, needs to be repaired because the housing leaks badly. To me, that smells of a racket. I will not buy a house that is poorly constructed. Watching “Holmes on Homes” put that idea in my head when I saw the crappy workmanship and just flat out scamming that some “contractors” pulled. To hell with them!

Again, quality counts!

I worked in a furniture manufacturing facility where the boss insisted on speed over quality. Guess what? He is out of business, because the people working there were not interested in doing their jobs well, producing quality, and the furniture was rejected by the buyers!

If you are spending any money for goods that you need,  look for quality first. Yes, it probably means you spend a bit more for it, but when you look at how often you have to replace crappy stuff, then you actually do save money over time! Wal-Mart is NOT the place to buy durable goods, like furniture, appliances, clothing and especially goods you know MUST work when you need them.

The same principle goes when you are working, produce quality products. Even if your product is a haircut, waiting on tables, digging ditches, do it with quality and integrity.

Companies that ask us to make crap need a lesson too. To hell with companies that make poor quality products, so tell them with your wallet. Put the businesses that treat their employees like crap out of business, because there is a serious lack of integrity within the management there.

There have to be a lot of people out there that want to be their own bosses, want to do something they are good at, and want to make a real difference in their community. I am talking about those who are very good at dealing with people, dealing with machines or other goods like food.

Now may very well be the time for people who needed the time, to learn business procedures and to start making quality count. Go to the library, study on cash flow, tax law, business management and take that risk on you! Please, create businesses that are based on quality, integrity and best of all, create something worth buying!

If there is someone out there wanting to build housing, find out what it takes to make a home that is totally energy efficient! Learn about the innovations in hot water, solar heating and energy, windmills that produce power that can be used in residential housing, and about making houses that are high insulation value.  Build the houses with good quality and don’t buy crappy building products! People will put money into things they know are worth buying.

The most effective choices we can ever make is to do what we honestly enjoy doing, that just never does seem like work at all. Writers who get lost for hours writing, are working, but it is so much fun they never even notice the work in it! Woodworkers who spend hours in the shop, sanding, inspecting, sanding more and putting hours into polishing and finishing make furniture that draws awe from all of us, if we are lucky enough to see it. People who make simple clothing that fits, wears and washes like a dream are those who make the clothing because they enjoy the creation, the design, the feel of the fabric and love to see the clothing finished well.

No matter what you do in life, do it with quality. Push beyond mediocre and go for the best you can. We will spend our money, if you do that.

Producing goods with built-in obsolescence or that needs immediate repair is wasting more than just money, it shows us all contempt for the work we have to do to buy it, and ultimately shows just how little you value your own work.

President Obama may be one of the few international leaders that is showing the world that quality, integrity, and going that extra bit is worth doing. There are others out there, watch how they do what they do, then use those lessons to do your own best work.

I think it is high time those who were elected, all over the world, value our work, value our integrity, and above all, act with integrity, honesty, and value the position we elected them to. No more shoddy behaviour, no more “putting in the time for pension benefits” and certainly no more self-serving actions. Respect the neighbours and your international neighbours and the current mess will be one hell of a lot easier to live through. Do the opposite, create war and conflict and we all face a far more miserable future.

We need innovative thinking now, we need to have people who listen, who are willing to mentor those who have become lost, and we need people who make good decisions with honesty, integrity and above all, awareness that this planet is small, and choices ripple out to either raise the quality of life or swamp people and create disasters. Empathy is one of the most valuable assets we all have.

The Stock Market Continue to Fall, Why?

You call your book THE PREDATOR STATE, what do you mean predator?

“JAMES GALBRAITH: What I mean is the people who took over the government were not interested in reducing the government and having a small government, the conservative principle. They were interested in using these great institutions for private benefit, to place them in the control of their friends and to put them to the use of their clients. They wanted to privatize Social Security. They created a Medicare drug benefit in such a way as to create the maximum profit for pharmaceutical companies.

They used trade agreements to extend patent protections for various interests or to promote the expansion of the corporate agriculture’s markets in the third world. A whole range of things that were basically political and clientelistic. That’s the predator state.”

That has been the way of previous governments, to enact laws that favoured corporate behaviour, corporate interests, corporate profits and extend the interest of the companies as much as possible.

Read this book: “The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too” Written by James K Galbraith.  We cannot remain in ignorance any more.

Read “The Crash of 1929” by John Kenneth Galbraith too. It shows just how closely what we are all living through parallels that time, but with some exceptions.

All around the world stock markets plummet, and there have been so many people thinking on this that some may end up with a headache trying to figure it out.

My own thinking, sans headache, is this. Banks, investment houses, lenders of all kinds as well as those who have bought into CDS and other hidden “instruments” are now being asked to repay, restore, and get the money back to those they owe. How can they do that? Sell off stocks,even at low prices, to pay up.

Remember there are a huge number of those hidden “instruments” now coming due. When the two investment houses, Morgan Stanley and Goldman Sachs both went to full-service banks, they cut out a huge amount of funding to those who were in the investments. That money is no longer there.

Shorter version, the debts are now being called, and demands for payment are here. This time there is no room for renegotiation, no putting off “paying the piper” so the markets are seeing pain.

Federal Deficits. There is a howling going around about them.  How can any country live with an increase in the national deficit. Well, the cold, hard truth is that there is NO other choice. A country can either refuse to go into debt and see the deficit rise regardless, or use the borrowing capacity to make decisions that will shorten or lighten the harsh reality down the road.  I am not alone here in thinking this.

It’s the dollar or nothing. So the United States basically can finance itself to the extent necessary to deal with this crisis. And I’m right now quite sanguine about that, quite confident that we won’t face a problem.

James K Galbraith

This is the End of an Era

The Government is NOT doing what is necessary, there is a better way.

Well, after watching a huge number of news broadcasts, reading until I feel like putting every written word into a huge pixel black hole, I have come to see that the way things have been working for the last 25-30 years is over, done like our Thanksgiving turkey this weekend.

People have had the expectation that they could borrow up to 6% over their income and still keep going. That is bizarre to me. Spending 106% of your income and expecting to keep things going is expecting yourself to become more than you can ever be!

Housing prices have risen so fast that the costs have ballooned way over the true price, the real value, of those same houses. Speculators, agents who took fees to sell off the bundled mortgages managed to make the whole market balloon to the point where things went BANG!

Make no mistake, just like Milken, et al , the agents had no compunction about taking the fees, and putting ordinary mortgages into a highly risky place, leaving those who were the original lenders and the house purchasers in a position where it became impossible. There became a distance between the lender, the mortgage and the purchaser. The agents did not care, do not care, and will not care who the purchaser is or was, and furthermore the agents have their money and can walk away without even blinking.

The Paulson idea of taking out the toxic sludge is never going to work. Why? Because it is impossible to put a value on paper that is basically completely impossible to unwind again.

The markets should go down again this week. Why? Because the toxic sludge from the collapse of Lehman Brothers is going to be due. Those who were tied into that sludge are going to have to take some huge losses again.

There has to be a complete understanding from main street here. No longer can we use credit to solve problems, no longer can anyone expect to have a charge card without realizing they are literally borrowing money at exhorbitant interest without that interest being a huge balloon that also goes BANG! The worst thing that older people can do right now, in my opinion, is to take out a reverse mortgage. Why? Because they may end up with a home that is never going to be worth what they are borrowing against, and end up being forced to repay instead.

Whether this all ends up being a very long, very harsh road, or a bumpy ride that is shorter depends on how banks deal with the mortgages that are not in default, yet, and the people who have taken those mortgages out rewriting the mortgages to reflect the true price of the houses in THIS current market.It also truly depends on how the various administrations in the US, Europe, Britain, Hong Kong, Australia and others deal with this. They can either make it a hell of a lot worse or shorten the drop. My gut feeling is that, unfortunately, the advice that most of the governments, administrations and other are getting is wrong, totally wrong.

Unfortunately I have been watching this all happen and, some years ago, realized the way things were going would end up dropping like a huge boulder on house at the bottom of the hill. In other words, although this seems surreal, I am not all that surprised. The idea that capitalism is self-regulating is just flat silly. Greed cannot be regulated, only controlled, using laws and regulations. Yes, there are flaws to what humans do, but at least we all SHOULD be learning WHAT NOT TO DO!

This could get very, very ugly.

Toxic Debt, Banking, Greed and Stocks

Well it seems the banks who currently have toxic debts on their books want to keep them. Why?  Apparently the upper echelon want to make sure they keep their fat pay cheques, their bonus structure, and their ability to use “golden parachutes”. If the Secretary puts up a reverse auction (bidding starts high, then goes down) that would allow the government to be involved with the banks and cut the income, collapse the “golden parachutes” and put a limit on the bonuses or pay cheques.

What happens when the banks keep the toxic debts? The depositors have their money in an unhealthy bank, the stability of the bank is undermined. All in the name of greed, apparently.

Last night the candidates were asked what they would do first when they got into office. Personally, my agenda would be to find those very upper echelon people, investigate them using these refusals, and if possible persue charges. The other thing I would do is go into the books of Fanny Mae and Freddy Mac for some of the information on shady trading that is documented there and follow that up. Names of companies, traders, etc should be there, so find them, follow the paper trail and do what is necessary to take those same greedy, self-centered, narcissistic people out of the system, if only by taking away any licenses etc they may have.

Second on my agenda is those damn lobbyists. Kick them off the fat-cat train, get them out of the halls of the House of Representatives, the Senate, and off capital hill.  If necessary, create a law that makes lobbying highly limited. Yes, there are some lobbyist for education, schools, social issues, and they need to have a voice somewhere, but there are some lobbyists that want to promote greed, capitalism and money interests and those must be dealt with severely.

The entire world has now been sucked into this whirlwind. I can bet that a lot of people around the world are looking at the very shady business practices and cursing out loud. This is one mess that must be cleaned up, starting with those who pushed for the change in regulation in congress, in the banks, in the investment houses, and put those people out of power. That will include Paulson, because as an executive in Goldman Sachs he pushed for the opening of the door to creating some of these same toxic financial papers now choking the entire world banking system.

I can bet a lot of the people who played this pyramid scheme, ponzi game, whatever you want to call it, are now becoming aware of just how much damage they could cause. I can also bet that the impulse to find those people is growing. Let the law, the FBI, do that job.

I have read so much financial information in the last two weeks I almost feel like a banker myself. Good grief! Maybe this will, pardon the pun, pay off later. What I have found out is that putting trust in the stock market, the investment companies, is often betrayed. That betrayal is fast turning to anger, outrage, and frustration.

Obama needs to alleviate some of the frustration as quickly as possible. Find the players who played with lives, played with jobs, played with the stock markets by selling empty, toxic papers bundles, and abusing the trust of not only the American people, but the banks and people over the entire world. This will not be easy, mostly because the banks will demand privacy. Phooey! When you wreck an economy, cause people to loose homes, put self-centered greed and interest ahead of anything else, you have become a public figure, in my opinion.

Economists have no clear idea where this is going, mostly because this is unique. Yes, banks caused some recessions, Savings and Loan fiasco caused some serious losses, but this has become unique because it involves the world now. It started in the US, it started with the CEO’s and upper echelon, but it is going to finish off a huge number of jobs, good companies, and maybe a far longer list of decent neighbourhoods too.

Hang in there, this is going to be going where no man or woman has ever gone before, without the spaceship. We all live on one small planet, so maybe this is the time to truly become neighbours.

Homes Or Houses

Homes are NOT meant to become investments, but places we all can go to shut out the world, invite friends and family to, and to make our own.

If you use your house to make money, then what are you really doing?

From my perspective, you are taking a place others would normally make their own, put some dreams, some memories, some work, some beauty into, and selling it because you have no commitment to your own “home base” or community.

How many people go back in their memories to home? They remember the neighbours, good or bad, they remember the holidays there, they remember the schools that they went to and they remember the way kitchens smelled at dinner time.

With our society now, it seems all of us have learned to expect instantaneous results, instant answers with the internet, instant meals from the freezer to the microwave.

Homes are not built instantaneously, they are products of work, design, time, and dreams from several people until we live in them, adding our own dreams.

Putting our houses into the category of investment makes them hollow. They never really become something we work toward enjoying, living in, making messes in, fighting in, loving our pets and family in, but just boxes.

For me, buying a house is more. I want to have some place where I can put my own design on, plant my own trees, flowers, veggies around. I want to have a place where I know I can go when people annoy the hell out of me, and I can shut the door.

Homes are where I can make some messes without the glaring eyes of bosses, or others who would sneer or make rude comments.

Home is where I can walk around in whatever I choose to, regardless of fashion.

I wonder if kids raised in families constantly on the move ever really earn or find a place in this world they can trust, can relax, can truthfully just be themselves in.

Maybe this is why some people would dump seniors on the street, so the houses the older people live in can be used for greed and callous disregard.

Seems to me there is a real sense of impermanence to a lot of our living now, a real sense of anything and anyone being disposable if it inconveniences us.