Capitalism has cholesterol in it’s arteries

Obama ready to bail out mortgage companies for some reason. How will it hurt the economy to let them fail again?

Companies would get $1,000 for agreeing to give a strapped homeowner a lower monthly payment instead of foreclosing — more if the borrower hasn’t yet fallen behind on what they owe. They can get up to another $3,000 over the next three years. And they get government insurance to cover part of the money they might lose if the homeowner ultimately defaults on the house anyway.

So, if you play nice we’ll give you money. If you don’t break the law we’ll give you more money. And we’ll keep *you* insured if the person we’re defending screws you.
Who comes up with this stuff? Many will cite how ‘ethical’ this is but ethical to me involves getting rid of the mortgage companies. (File under: another ‘industry’ that doesn’t produce anything, not a service, it just ‘owns’, like much of wall street.)
On a purely interesting note – BBC news has a piece on this here…interesting how it seems almost like different legislation, neh?

Auto bailout could come to 130 billion dollars – lovely article that breaks down where the money would be spent, hypothetically. Nonetheless, Moody’s projects that GM and Chrysler both a 70% chance of filing for bankruptcy.

A new study by the Federal Reserve suggests that tax cuts may heighten deflation risks – and after reading that I begin to wonder if a misunderstanding of economic theory is critical to becoming an elected official, either in Washington or elsewhere. Of course, the Fed also predicts that the economy will continue deteriorating throughout 2009. With news that cheerful I wonder how long it will be before we start hearing the word ‘depression.’

Even the price of cocaine is dropping.

Under the Bear Flag, Governor Schwarzenegger says legislators resisting budget plan have a math problem and I’m inclined to agree with him. Of course, I also don’t have the rabid anxiety over taxation that the GOP does either. At least, not in this case. (Do keep in mind however that California has state income tax, unlike some states.)

Burris and his five fold petal of stories, under pressure to resign his senate seat. You know given how vehemently against his appointment certain democrats were at one time and the sudden about face (all within 24 hours) I thought we’d be done with this. Apparently the back room double dealing isn’t over yet.

Robert H. Schuller’s ‘Crystal Cathedral’ is going to need a make over after an unidentified man in his 40s entered this morning, knelt in front of the cross, and shot himself in the head. I suppose it’d be asking to much for Mr. Schuller to take this as a sign and stop broadcasting?

And finally, how (if) will the President convince our allies (we have allies?) to lend their assistance in Afghanistan. Ask the Russians……

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~ by Auntie Ranty on February 18, 2009.

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