Chancellor Merkel Is Right

Congratulations to German Chancellor Angela Merkel for standing her ground. I wish US politicians would do the same, if they even have sense to know where the good ground is. Since the real solution seems politically explosive, and it should be, US politicians are just going back to easy money hoping that they get a different result or struggle through another round of elections. Low interest rates and flushing the economy with cash is stupid and is what caused the problem. Liquidity IS the problem. There's too much worthless paper floating around. That's what the problem is. Issuing more worthless paper isn't going to be the answer.

Another point that makes my head spin on my spine is this idea of just getting everyone out there to by some big screen TVs this Christmas and it will all be OK. Hello! Hello?? Hey!!! Is anyone getting the message? The music has stopped playing, game over.

The USA, and other countries need real economies, based on more than selling video games and TV sets, and to live within the means of those economies. We need to educate citizens and allow them the means to provide for themselves...and not centralize the food supply and everything else just so a few fats cats can own it all. I've got news for the fat cats. There won't be a spot on earth to hide if this whole thing goes bad, so I hope the Mars settlement is ready for you by then. The "let them eat cake" attitude is getting damned old. 300 million starving and pissed-off citizens with pitchforks is something worth worrying about.

I know it'll be rough for the super rich to just have 3 mansions instead of 8-10 or 20 all over the world, but looting the system is killing the world. Does anyone other than Merkel get this? It has to stop or nobody gets anything, game over, society breakdown across the globe...war, crime and death. Is any of this reality seeping into the heads of any of the fat cats, or do they truly believe looting the world citizens of resources that belong to everyone is sustainable long-term, with predictable results. It's never occurred on this scale before, so the fat cats are lying if they say they know the effects of what they are doing.

Economic Fantasy; Housing Recovery and Rewarding Bad Behavior

I keep reading what seem to be attempts to create an illusion about buying a home in many parts of the US. I'm not an expert, but it's fair enough to say that gaining equity is the objective. A real estate purchase has not historically been a way to get rich quick, but a person used to be able to preserve wealth with a home purchase, and that's called equity.

That wasn't enough for some folks and their own personal investments weren't enough either. They devised schemes to charge current prices for future equity. In other words, sellers began stealing buyer equity from many years in the future.

The only solution is massive bankruptcies for those who can not afford their homes. Where will they live? I don't know. What do you do when millions are no longer willing or able to take care of themselves? However, it's insanity to try to prop up inflated home prices that reflect inflated projections so much more than reality. Where are the jobs that can pay $1100/month mortgages and rent? Instead of focusing so hard on inflated prices, our government needs to focus on sustainable economic policy. That means looking ahead more than 3 months. Priorities need to be shifted and the practice of depending upon profit from systemic inefficiencies must end.

Oh, Great; More Amateur Landlords

This article form The Wall Street Journal. Yeah, I've sworn off investing in stocks, but I'm not dead. Decent article. Wait until those sweet ideas turn sour. I don't consider rental speculation a particularly healthy sign. Renting is an art and there are big traps on both sides of the deal. I've had terrible landlords, and I seen tenants from hell. Craigslist is full of rentals nobody wants to rent. Another crisis in the making if you ask me. This country needs real jobs. There's plenty of work to do. US bridges are collapsing and sewer lids are being blown into the air in New York, but politicians would rather spend money on buying votes or war.

In many cases, sales have been stimulated by investors who are grabbing what they see as bargains on homes that can be turned into rentals.