Check out this program I found. It is a really interesting simulator where YOU get to control the federal budget. You can see it's affect on the next 10 years and project how long your budget decisions can be sustained before the budget breaks. And, finally, you can choose the 3 most important goals of your "administration" to see how your decisions work to fulfill those goals.
It's very interesting and educational. In my own simulation, I found that if you eliminate special interest policies on BOTH sides of the aisle and just focus on what is best for the economy, national security, and health, then you can generate a budget surplus which would go even further towards strengthening the economy, national security, and health... it would become a positive feedback cycle rather than the negative, destructive cycle we have now.
Try it out and let me know what you think of it.
October 20, 2008
October 1, 2008
The subprime crisis
Check out this video...
Now, I don't know if that is more propaganda because EVERYONE has an agenda to push. BUT, ask yourself a few questions about the situation and see what makes sense...
1 - Why, all of the sudden in the late 1990s/early 2000s, did banks start making horrible subprime loans? I mean, the loan officers make a commission on each loan that issues whether it is good or bad, but why didn't they make these loans before that? I've suspected for a while that these loans were encouraged by some form of legislation but couldn't figure out if it was more regulation or less.
2 - Everyone, even Obama's campaign, agrees that McCain DID want to add regulation to Fannie and Freddie and DID warn about the problem.
Honestly, I think this problem is a lot more complicated than the media says and a lot more of the blame belongs on the people who encouraged - or even mandated - loans to people who can't afford them.
The only way I see this being corrected - even WITH this "bailout" - is if a large portion of these loans are restructured so that people don't default, don't get foreclosed, don't lose their houses, and can afford to make payments on them.
The damage is done, the real estate prices are down, the banks lost tons of money... now stop the freefall by restructuring the loans so there isn't a flood of houses on the market.
What do you think?
Now, I don't know if that is more propaganda because EVERYONE has an agenda to push. BUT, ask yourself a few questions about the situation and see what makes sense...
1 - Why, all of the sudden in the late 1990s/early 2000s, did banks start making horrible subprime loans? I mean, the loan officers make a commission on each loan that issues whether it is good or bad, but why didn't they make these loans before that? I've suspected for a while that these loans were encouraged by some form of legislation but couldn't figure out if it was more regulation or less.
2 - Everyone, even Obama's campaign, agrees that McCain DID want to add regulation to Fannie and Freddie and DID warn about the problem.
Honestly, I think this problem is a lot more complicated than the media says and a lot more of the blame belongs on the people who encouraged - or even mandated - loans to people who can't afford them.
The only way I see this being corrected - even WITH this "bailout" - is if a large portion of these loans are restructured so that people don't default, don't get foreclosed, don't lose their houses, and can afford to make payments on them.
The damage is done, the real estate prices are down, the banks lost tons of money... now stop the freefall by restructuring the loans so there isn't a flood of houses on the market.
What do you think?
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