Monday, January 23, 2017
Chuckie the Schumer wants 6 hours of "debate" about Mike Pompeo
Debate used to mean a contest of ideas between two opposing parties, for example Lincoln and Douglas. What Chuckie wants is six hours on national TV to trash Mike Pompeo in the hopes of weakening President Trump. And Chuckie found some obscure and anti democratic Senate rule (the Senate has a load of 'em) to force the Senate into giving him six hours.
Sunday, January 22, 2017
Mortgage backed securities in the news again
You would think after they caused Great Depression 2.0 that we would have clamped down on mortgage backed securities. Apparently not. Top item on the Friday Wall St Journal. "Bonds backed by certain risky single family mortgages topped $1 trillion for the first time in November amid warnings about that corner of the housing market."
$1 trillion is very serious money. The US GNP is only $17 trillion.
And mortgage backed securities are just flat dangerous to the world economy. The "backed" part is pure moonshine. All the seller of mortgage backed securities promise is that the mortgage payments will be used to pay off the bonds. But, if the mortgages stop paying, the bonds go bust. That's what took down the entire world financial system in 2007-2008. A disaster which we still haven't recovered from. Before Great Depression 2.0 our GNP grew at 3.5% a year. Since Great Depression 2.0 GNP growth has been 1% a year. That's eight years of poverty.
To sell a mortgage backed security a financial house has to buy up a batch of mortgages from the likes of Countrywide and Freedom Mortgages. Who are happy to sell, turning mortgages (promise to back in the future) into cash right now. And, they are happy to write subprime and NINJA (no income, no job, no assets) mortgages, so long as they can find suckers to buy them before they default.
Basically we should not allow the sale of mortgages. If the mortgage lender know they are stuck with the mortgage forever, they will be more careful about who they write mortgages for, since they will own them. And as a homeowner, I am not happy with the idea of my mortgage falling into the hands of God knows who, who can stick it to me in a dozen different ways.
Mortgages are good deals for the lender. They are backed (really backed, not moonshine backed) by real property, if the borrower defaults, the lender gets the house. The borrowers are strongly motivated to keep up the payments lest they find themselves out on the street. It's simply to assess the risks involved at the time you write the mortgage. You inspect the property to see if the property is worth more than you are gonna lend on it. You interview the borrowers and check their credit history, and see how much they are earning. You don't write a mortgage when the monthly payments are more than 25% of the borrowers income. Pretty simply stuff.
$1 trillion is very serious money. The US GNP is only $17 trillion.
And mortgage backed securities are just flat dangerous to the world economy. The "backed" part is pure moonshine. All the seller of mortgage backed securities promise is that the mortgage payments will be used to pay off the bonds. But, if the mortgages stop paying, the bonds go bust. That's what took down the entire world financial system in 2007-2008. A disaster which we still haven't recovered from. Before Great Depression 2.0 our GNP grew at 3.5% a year. Since Great Depression 2.0 GNP growth has been 1% a year. That's eight years of poverty.
To sell a mortgage backed security a financial house has to buy up a batch of mortgages from the likes of Countrywide and Freedom Mortgages. Who are happy to sell, turning mortgages (promise to back in the future) into cash right now. And, they are happy to write subprime and NINJA (no income, no job, no assets) mortgages, so long as they can find suckers to buy them before they default.
Basically we should not allow the sale of mortgages. If the mortgage lender know they are stuck with the mortgage forever, they will be more careful about who they write mortgages for, since they will own them. And as a homeowner, I am not happy with the idea of my mortgage falling into the hands of God knows who, who can stick it to me in a dozen different ways.
Mortgages are good deals for the lender. They are backed (really backed, not moonshine backed) by real property, if the borrower defaults, the lender gets the house. The borrowers are strongly motivated to keep up the payments lest they find themselves out on the street. It's simply to assess the risks involved at the time you write the mortgage. You inspect the property to see if the property is worth more than you are gonna lend on it. You interview the borrowers and check their credit history, and see how much they are earning. You don't write a mortgage when the monthly payments are more than 25% of the borrowers income. Pretty simply stuff.
Saturday, January 21, 2017
Donald Trump vs the MSM. Who will win?
President Trump understands that the MSM is out to get him. They have a giant megaphone, and with only a few honorable exceptions, they all speak with one voice. They don't like Donald Trump, and they plan to make his term as president as miserable as they can.
President Trump has been pretty vigorous in trashing the MSM for dishonesty and slanted stories. He understands publicity and public relations as well as they do. The presidency is still a bully pulpit. He understands that mud sticks. When they smear you, you have to say something, the public isn't going to forget the smear. If they don't hear the target defend himself, they assume he is guilty. They assume that an innocent man will defend himself against the smears, no defense, and the guy is probably guilty. Trump understands this, and had defended himself vigorously, and so far, it has worked for him. His twitter account is smoking hot, and it puts President Trump's views in front of the entire nation, and the MSM does' get a chance to slant or edit his views. The MSM has been bitching about Trump's tweets because they cut the MSM out of the game. It's like FDR's famous fireside chats in the 1930's. Roosevelt's words went nationwide unedited and unslanted.
And the MSM has damaged it's credibility during last year's campaign. Now, few Americans believe what they see on TV or read in the papers. When Trump slams the MSM, the voters are inclined to believe him.
I don't see a truce coming. I think we are going see a head on collision between the President and the MSM. There is a fair chance the MSM will loose.
President Trump has been pretty vigorous in trashing the MSM for dishonesty and slanted stories. He understands publicity and public relations as well as they do. The presidency is still a bully pulpit. He understands that mud sticks. When they smear you, you have to say something, the public isn't going to forget the smear. If they don't hear the target defend himself, they assume he is guilty. They assume that an innocent man will defend himself against the smears, no defense, and the guy is probably guilty. Trump understands this, and had defended himself vigorously, and so far, it has worked for him. His twitter account is smoking hot, and it puts President Trump's views in front of the entire nation, and the MSM does' get a chance to slant or edit his views. The MSM has been bitching about Trump's tweets because they cut the MSM out of the game. It's like FDR's famous fireside chats in the 1930's. Roosevelt's words went nationwide unedited and unslanted.
And the MSM has damaged it's credibility during last year's campaign. Now, few Americans believe what they see on TV or read in the papers. When Trump slams the MSM, the voters are inclined to believe him.
I don't see a truce coming. I think we are going see a head on collision between the President and the MSM. There is a fair chance the MSM will loose.
Do you love your plastic?
Every one gives it out. Political parties, veterans aide groups, charities, the NRA, everyone. Make a contribution, and you will get a membership card. Sometimes high grade plastic, like a credit card, sometimes cheaper cardboard. Same size and shape as a credit card. The one from Judicial Watch was transparent plastic, a cute touch.
Why do we care? Perhaps Walter Mitty rides again. A vision of striding up to a closed and guarded door, flashing our membership card, the guards saluting and opening the door. Right. Happens all the time.
Do we think down deep that since they look like credit cards they might actually be credit cards? With money on them? Dream on.
Dunno why, but before attending a party function I often stick the party member ship card in my wallet. And, I don't chuck these things, I put them in my desk drawer against some future need. Right now the stack of 'em is an inch thick.
And, come the next dear-member-please-send-money letter, I am just a tad more inclined to write out a check if I have a membership card in that one inch stack.
Why do we care? Perhaps Walter Mitty rides again. A vision of striding up to a closed and guarded door, flashing our membership card, the guards saluting and opening the door. Right. Happens all the time.
Do we think down deep that since they look like credit cards they might actually be credit cards? With money on them? Dream on.
Dunno why, but before attending a party function I often stick the party member ship card in my wallet. And, I don't chuck these things, I put them in my desk drawer against some future need. Right now the stack of 'em is an inch thick.
And, come the next dear-member-please-send-money letter, I am just a tad more inclined to write out a check if I have a membership card in that one inch stack.
Friday, January 20, 2017
The TV is on, and the Inaugural is the only thing happening in the whole wide world
Early this morning the Fox crew was getting some "man in the crowd" shots. Big crowd, all enthusiastic, lotta red Trump hats, some NRA hats, rain gear. Everyone one in the crowd was happy the chant USA. USA, or Trump, Trump. I'd call it solid support.
The parade didn't get off until nearly 4 PM, it will be dark before the last marchers get past the reviewing stand. They had a platoon of Redcoats, Brown Bess muskets and all, march by. Melania Trump showed up in a stunning blue suit that made her look like a million dollars.
Other than the drizzling rain that lasted on and off all day, it was a good show.
The parade didn't get off until nearly 4 PM, it will be dark before the last marchers get past the reviewing stand. They had a platoon of Redcoats, Brown Bess muskets and all, march by. Melania Trump showed up in a stunning blue suit that made her look like a million dollars.
Other than the drizzling rain that lasted on and off all day, it was a good show.
Thursday, January 19, 2017
I'm getting sentimental in my old age
I watched today's before the inagural festivites, laying a wreath at the tomb of the unknown soldier followed by a concert at the Lincoln memorial. After some good Nashville country music the choir sang the Battle Hymn of the Republic, and fireworks burst in the sky, I found tears in my eyes.
It's a good thing to have a big national celebration every four years, just to make all us citizens feel good about our country. And those 60 odd democratic Congressmen who are not coming to the inaugural are missing something good.
It's a good thing to have a big national celebration every four years, just to make all us citizens feel good about our country. And those 60 odd democratic Congressmen who are not coming to the inaugural are missing something good.
So are these guys politicians or what?
As of last night we have 50-60 democratic Congressmen saying they will not attend the inauguration tomorrow. Trump is going to see this as a slight or even a slap in the face. And Trump is president for the next four years, maybe more. And to get anything to happen in the US of A, the president has to get behind it. At least to speak well of it on TV.
These 50-60 democrats must have things they want to get done. They are all serving for another two years, and they have decided to start off by irritating Trump. Which is going to make it harder for them to get Trump to do anything, OK anything, say nice things about something they care about, appoint their friends to federal office.
The job of a politician is to cut a deal between opposing sides. Part of cutting a deal is not insulting one side. These Congressmen seem to have forgotten that, they are doing insults before Trump is even inaugurated. Good luck getting Trump to help you out on anything, even just renaming a Post Office in your district.
We shall see. Maybe in two years a lot of these guys will be replaced with Republicans.
These 50-60 democrats must have things they want to get done. They are all serving for another two years, and they have decided to start off by irritating Trump. Which is going to make it harder for them to get Trump to do anything, OK anything, say nice things about something they care about, appoint their friends to federal office.
The job of a politician is to cut a deal between opposing sides. Part of cutting a deal is not insulting one side. These Congressmen seem to have forgotten that, they are doing insults before Trump is even inaugurated. Good luck getting Trump to help you out on anything, even just renaming a Post Office in your district.
We shall see. Maybe in two years a lot of these guys will be replaced with Republicans.
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