Learning Economic Wisdom from
the Stupidity of Our Government
There’s an
old saying that goes something like this; a lawyer that would represent himself
has a fool for a client. Likewise, a
doctor who would operate on himself has a fool for a patient.
The nice
thing about fools is that wise people can watch their costly stupid errors and
learn from them. The wise person learns
for free while the fool picks up the tab.
In this ‘Gold
Nugget of Truth’ the fools we will learn from are from both sides of the
government aisle. They are both Democrats
and Republicans, and foolish beyond belief.
Of course, there is the Queen of Fools, Nancy Pelosi (D, CA) who once
said, “We have to pass the bill to see what’s in it.”(Referring to Obamacare) After making a statement of that type you
really don’t need to see her brain scan to see what’s in it or not in it. Duh.
Politicians
often have their hearts in the right place, but have their heads up their
asses. That disease is also known as ‘Craniumrectus’
and the cure for it is a ‘POPULECTOMY.’ The
Populectomy got its name from the way the treatment works. The patient suffering from Craniumrectus is
pulled by the underarm area until you hear a popping sound which indicates the
head is now removed from the rectum.
Since it’s a disease I invented I can also come up with any cure that
suits the need. So there.
Back in the
days of the early 80’s politicians from both sides of the aisle were pushing
the fact that every good hard working American should own a home. Those well intentioned albeit stupid elected
gurus encouraged banks to loosen up credit.
That encouragement gave way to Fannie Mae and Freddie Mac. Those government started pseudo institutions
led the way for more money to loan. Easy
loans with looser qualifications were becoming the rule. Eventually rules became so loose
that you could work at McDonalds and qualify for $400,000 home loan. Are you starting to see the flaws in this yet? If so, you have probably just passed the IQ of the typical Senator or Representative.
that you could work at McDonalds and qualify for $400,000 home loan. Are you starting to see the flaws in this yet? If so, you have probably just passed the IQ of the typical Senator or Representative.
No money
down, no problem. Give money away, print
more, build more homes because our economy is expanding. It looked that way
on the surface but in reality
it was a false economy.
At some
point reality must set in and it did, in the form of a real estate crash. Our elected officials would have you believe
it was the banks fault, but it was the boys and girls in Washington that encouraged
and backed those loans. So those same deluded
geniuses in DC decided they needed to do something. “Hey”, said one of ‘em, “Here’s an idea. Let’s borrow money we don’t have. Run up the debt. Do some kind of ‘feel good’ rescue home loan
thing, oh, and spend a trillion bucks or so on economic stimulus. You know, green projects. That leaves us with the ‘feel good’ home
thingy and a ‘look good’ environmental thingy.”
And thusly, nearly all the lemmings in Congress voted to approve it.
Now the
Man-In-Charge, who just spent a year lying to the nation about healthcare,
decided to make bad loans to green companies.
Enter Solyndra, which took around $500,000,000 in taxpayer money and then went four paws to
the ceiling. That was only the beginning. Several other companies followed suit and
some of them used inside track (questionable tactics, if you prefer) to get
those wonderful, screw the taxpayer, loans.
Ah, but the
best (sarcasm) was yet to come. Obamanation decided to loan $132,000,000 to an
upstart battery company called A123 Systems.
You could also call it Solyndra Junior because it too went belly
up. Here comes the good part. You see,
China holds more than a trillion bucks in U.S. debt. Much of the money for the stimulus was
borrowed from China. China, seeing a
potentially good thing, swoops down and latches on to A123 for nearly
nothing. The U.S. Taxpayers are out the
132 million and the absolute worst part is we are paying interest to China on
those millions I just told you about.
Yep, they get a free U.S. company and we pay them interest. We the people…just got screwed….AGAIN.
So what’s
the message in here for you? Well, there’s
three of them. 1) Paying interest never
benefits you the borrower. But there are
times, specifically when you buy a home you will need that loan which leads us
to #2) Live below your means. If you can
afford a $250,000 home why not settle for something considerably less
expensive. Something you can pay off
early and pay less interest on the loan.
Wow, what a novel concept. Going
into debt is NEVER something you should take lightly. Besides ‘Keeping up with the Joneses’ is so
1970’s. 3) Think before you vote and only vote if you
think. Remember career politicians and
lawyers RARELY make good Senators, Representatives or Presidents. What we need are good common people with good
common sense.
Current
office holders need not apply.
