Thursday, September 13, 2007

Don't Make Me Laugh

GWB started the war in Iraq. He claimed we needed this war to "protect the homeland". Never mind that this was exactly the same thing that Hitler told the World when he invaded Poland and what Tojo said when he bombed Pearl Harbor. They were more widely believed than Bush, probably because they were more sincere.

Bush has now come before us with his same sorry little story, dressed up in tawdry, whorish, new clothes. We are doing so well in Iraq that we can begin to withdraw forces, when we really lack the forces to maintain the current troop numbers anyway. We are going to form a long term strategic alliance with Iraq, meaning we will keep their puppet government in place indefinitely, propped up with American lives and money.

Will anybody believe him? Of course. Will it be enough?

Wednesday, September 12, 2007

I Don't Think This is Spinnable.

Anybody who is the least interested has watched the Senate testimony of the Ambassador to and the Commanding General in Iraq over the last two days. It was mesmerizing. Heartrending.

It's like when, as a young boy, your dog runs into the street and is run over by a truck. Lying in a pool of blood, bones crushed, entrails spread out over the pavement, the poor pooch is still alive, whining and looking to you for help through large liquid brown eyes. You are overcome by emotion. Totally helpless and inexplicably ashamed. That's what it was like.

Democratic and Republican Senators alike seem dumbstruck. Everybody agrees that there is no connection between 9/11 and the war in Iraq. Everybody understands that Iraq is irrepairably broken. Everybody understands that the American forces are doing the best they can but there is no indication anything they are doing will be of any help at all.

One way or another, this situation is going to be resolved soon. It simply cannot go on.

Sunday, September 09, 2007

Silly Austrians

Ratzo is cruising Austria this weekend. He's not getting much of a reception. The vast majority of Austrians still consider themselves Catholics but they're a little pissed at the Church. The first reason dates back to the end of World War II. Hundreds of Austrian Catholic priests were arrested and put in concentration camps by the Nazis for their opposition to the policies they imposed. You know, the denial of God, Jew extermination, stuff like that. The Austrian Church didn't allow these priests back into the mainstream of the Church after the War because it made the other priests feel "funny". The Austrians never understood that decision. they are still mad about it. The other reason is more recent. Like America, they had a lot of problems with pedophile priests. Most Austrian Catholics would like to have women priests and allow all priests to marry. It's not a big idealogical thing with them. They just want to attract more "normal" people into the priesthood and allow them normal sexual outlet. They think maybe then, they wouldn't spend so much time sodomizing the children. The Pope, of course, will not discuss foolish ideas like this with them.

Silly Austrians, they really don't understand what the church stands for at all.

First Pop

It looks like the SoCal real estate bubble is going to experience its first big pop in a novel location, Mexico.

Over the last couple of years, developers, having optioned land on the Pacific coast, between Tijuana and Ensenada, have been taking 20-25% cash deposits on condos to be built there. The first phases of these developments are now nearing completion. Most of these condos sold for between $300,000-$500,000. In order to take procession, the buyers must come up with the balance in cash or secure a Mexican mortgage at 11-13% interest.

It turns out, most of the people that bought these Baja bungalows, did so for purposes of speculation. They planned on picking up a quick 20-30% on the purchase price, doubling their money, by flipping the property before it was even completed. The problem is, they haven't gone up in value. Nobody knows what they are worth, because they aren't currently selling at all. To compound the problem, many of the buyers refinanced their US homes to come up with the down payment and now face unsustainable levels of debt even without the burden of a Mexican Beach condo.

They have been marketing these things as the answer to the baby boomer's retirement dreams. I guess they will have to get new answers or new dreams.

Saturday, September 08, 2007

Pin Money

Saturday Night.

We went out to the Olive Garden for a late supper. Soup and salad combo X2. One glass iced tea and one small glass house wine. About as cheap as you can go. Real good. With tax and 20% tip, came to $36 even.

Given the rate of inflation, in about ten years, it'll cost about twice as much. In ten years I'll be eligible for Social Security. $1500 a month. Soup and salad and ten gallons of gas, twice a week. That's what it will get me, by then.

Bush says Social Security is broken and needs to be fixed. Seems to me that inflation will do it for him.

Pin money.

Monday, September 03, 2007

Brits Beat Feet in Reverse Surge

The British are, by far, our biggest ally in the war in Iraq. Their troop strength there currently is at 5,500, compared with our 130,000+ and double that if you add in "defense contractors". That's a little less than 20:1 or 40:1, depending in how you want to look at it.

Over the last year, they have abdicated responsibility for military oversight of all but one of the provinces that they were originally given to administer, with the exception being Basra, on the Southern Border with Kuwait. Today, they pulled out of Basra, moving their troops out of town, to fortified positions surrounding the city's airport. The airport, is not strategic in any sense, except as an excellent position from which to flee.

The situation in Basra is not good. While the official British position is that they are retreating in order to effect a supervised turnover of power to the Iraqi civil authorities, no one expects that to happen. The city will be divided up between the various militia groups and partisan fighting will ensue. This has been the pattern as the British have left province after province in Southern Iraq. The unofficial rationale for this staged withdrawal in Iraq, is that no progress in Iraq is being made and none is likely, given the resources in men and material in Iraq. " We've done all that we can do", is the term heard most often to describe the unofficial British policy in Iraq. While British forces are not likely to be pulled out in mass, another 10% draw down of 500 men are scheduled to leave no later than November and no one doubts that more withdrawals will be announced soon.

In England, this weekend, two retired Generals and a former Foreign Minister all publicly castigated the Bush administration for it's slipshod and short sighted planning for the aftermath of the invasion of Iraq. These men were all directly involved in the invasion, highly placed and universally admired, at least up until this point. In a nutshell, they stated that the Americans bet the farm that they would be welcomed as liberators and a stable civilian government would soon be in place. They lost the bet and now the wager must be redeemed.

The war in Iraq has never had great popular support in Britain. The unpopularity of the war is eclipsed by the revulsion the populace commonly hold for George Bush and his Neocon handlers, a revulsion shared by most of the civilized World.

President Bush today made a surprise visit to Anbar Province in Iraq, landing Air Force One at the heavily fortified al Asad airbase, in a much needed attempt to bolster American public opinion of the war. He expressed satisfaction with the progress of the war and went so far as to say that some forces might soon be withdrawn. This news was well received by the troops, most of whom are near or beyond the end of their projected deployment dates and many of whom are veterans of multiple deployments.

Whether you agree with the war in Iraq or not, I think it is safe to say that the war is at a critical juncture. I think that we, the American people, are also not being given all of the real facts about the situation, as it stands, in Iraq. I realize that there is often a great deal of censorship in the name of operational security during wartime. This is only possible, however if the populace has some small modicum of trust that the leadership is acting in their best interest, or at least can be relied upon to act with minimal levels of competence. Neither one of these things is evident to anybody in this case.

A Rectal Retentive Approach to Retirement Planning

President Bush has learned that the country is on the verge of an economic crisis. He is determined to intervene, with the help of his hand picked advisers and avert a slowdown in the economy. We have already seen his initial responses. We will be seeing more in the weeks and months ahead. I am sure that he will act swiftly and decisively.

Like he did after 9/11.

Like he did after Katrina.

Like he did with the deficit.

Like he did with the trade imbalance.

Like he did with illegal immigration.

Like he did with Social Security.

Like he did with Medicare.

Like he did with Public Education and illiteracy.

Like he did with Terry Schaivo.

Like he did with stem cell research.

Like he did with the war on drugs.

I could go on but you probably get the idea.

As a citizen of this country, rapidly approaching old age and dependent on modest personal savings and investments for income and security in the years to come, I'm doing what any reasonable person would do.

I'm selling everything I have and buying diamonds. I'm going to put the diamonds in a little bag. I'm going to grease up the bag. . . .and shove it up my rectum.

Greedy Rich People Killing the Poor, Republicans at Work

If anybody has any lingering doubts about the abiding evilness of Republican party politics in this country, this should put them to rest. Several weeks ago there was a tragic mine cave-in, at a coal mine in Utah. During the immediate aftermath, as rescue efforts were being organized, the owner of the mine went before the assembled press and went on a rant about this tragic event being the result of an earthquake and not negligent mining practices and specifically one practice, known as retreat mining. He lambasted the liberal media for assuming the culpability of greedy management in the cave-in, when it was simply an act of God. The problem with this was, nobody, in the liberal media or otherwise, had brought up the subject of retreat mining or negligence.

A common way of shoring up the chambers in a deep mine operation, once the mined material has been removed, is to leave pillars of the substrata in place, to support the ceiling. Once all of the valuable substance has been removed and no more excavation is planned, these pillars, which are, of course, composed of the valuable substance, are blown out and recovered. Once this is done, the chamber, no longer supported, collapses. The trick is not to have it collapse on the miners removing the last of the mined substance. Turns out, retreat mining is not an illegal practice. Turns out, it's quite common. Turns out, miners will do it if you pay them enough. Turns out, mine operators are willing to pay them enough. Voila, the free market economy in action.

The day after the unfortunate news conference, the mine owner appeared, bolstered by the presence, by his side, of his old friends, the senior Senator from Utah and the Governor of the State, both Republicans. They all reassured the families and press that everything that could be done to rescue the trapped miners, would be done. No more mention was made of the factors which may have contributed to the collapse of the mine.

I suspect the reason that retreat mining is not illegal is that no one, outside the mining industry, believes anyone would be stupid enough or greedy enough to do it. This kind of thinking is always a mistake. As far as I know, there are no bills pendind to limit or control retreat mining.

Sunday, September 02, 2007

The Spice must flow, Maud'Dib

After a turbulent time of denial and self flagellation, the conservative movement in America, is coming to grips with a terrible truth. The demons they have been fighting against, in an attempt to exorcise the evil from American culture and return to traditional values, are, in fact, themselves.

The conservative philosophy is based on the premise that Americans are self sufficient, that they will take care of their own. They will do this through hard work, fiscal responsibility, creativity, education and faith; Faith in God and faith in the system. Their natural leaders are those who have demonstrated the ability to overcome initial hardship and become successful in the free market system.

Over more than two centuries of history, our society has accepted immigrants from all over the world. These immigrants have struggled to succeed, to carve out a place for themselves and they have done it. Group after group, culture after culture, have come here and made a place for themselves. America is a meritocracy in its purest form, not everyone succeeds but everyone can try. It's the way the system is designed.

The American system has worked in ways that its designers never intended. In virtually every society in the World, women were chattel. America has given them the chance for independence and equality and they have taken it. Large numbers of people were brought here as slaves. The law said that they would always be slaves. And their children. And their children's children. Didn't work. Asians were barred from coming here and denied participation in the system. They're here. They participate. Gypsies and Jews have wandered the World for millennia, always apart from those among whom they lived, until they lived in America. We originally wrested large portions of this country away from Hispanic control and drove them South. They're back. In business, education, government and entertainment, homosexuals are some of the most prominent and influential leaders. They are out of the closet and aren't going back. A juggernaut has no on/off switch. The faster it goes, the faster it goes. There is no guiding the way. There is no turning back. What we have done here, has changed the World. What's happening in the World will now change us.

The conservative movement in America would like, now, to put on the brakes. They would like to institute a society of law. There are no brakes. There is no law. People will do whatever they want, whatever benefits them. Placing a restraint on trade simply makes the trade more lucrative, thereby attracting a better class of people into it. Legislating morality will not sway people who have labored to live according to their own desires. People will only pay those taxes which they see benefit from. Any "help" the government seeks to give to people will be abused. Blocking the entrance of people into our society only makes entrance more valuable.

The Spice must flow, Maud'Dib.

Friday, August 31, 2007

The Surging Truth Will Out

We are winning the war in Iraq. We are winning because GWB and his generals tell us we are winning. We have previously made missteps but everything is on track now. The insurgency is on it's last legs. It's only a matter of time before things are under control. The Iraqis are building a functional coalition from which they can effectively govern the country.

We have heard these same statements from the administration since the beginning of our military involvement in Iraq. It's different this time, though. Something has changed. Through the first three years, one of the main points the administration pounded away on, over and over, was that the troops, the enlisted combat troops, on the ground in Iraq, supported the mission and wanted to stay to complete it. They have stopped saying that. Have you noticed. I have.

I don't think that support for the war was ever as universal as the administration made it out to be among combat troops. I do think they saw the mission in Iraq as their job and kept their opinions to themselves and their mouths shut, the way soldiers always have. I think the administration realizes that as the years drag on and more and more Iraq veterans rotate out of the war zone and then out of the military, they will begin to give vent to their true feelings. They will express their opinions about the reasons we went to Iraq. They will express their opinions of the strategies employed by their military leaders. They will express their opinions of the competence and character of the officers that led them. They will express their opinion of exactly what was accomplished by the sacrifice of their youth and blood and lives.

No, the administration no longer talks of the support for the war by the troops on the front lines. Make no mistake though. We are winning. GWB and his generals tell us so. The insurgency is on it's last legs. It's only a matter of time. And money. And blood. And lives.

What do Cowboys, Lumberjacks and Hard Rock Miners all have in Common

Time to weigh in on the Larry Craig situation.

Here's a guy who is obviously gay and has been all his life and yet he has always played by the rules that society has set for him. He obviously believes strongly in family values. He is obviously a religious person. He has demonstrated beyond a doubt that he believes in the conservative political philosophy he espouses. He has devoted his life to public service. He doesn't believe in gay marriage or domestic partnership or the open acknowledgement of homosexuality as a legitimate sexual preference. He married a widow lady and raised her children as his own. He represented his constituency, in Congress, in a manner that pleased them for a generation. He has repressed his sexuality and become exactly what society, as he understands it, wants him to be, a toilet queen. He feels most comfortable and sexually responsive, engaging in anonymous sex, in the restrooms of transportation terminals. Even while engaged in this gritty and nefarious pursuit of toilet sex, he remained polite and gentlemanly. He did not expose himself. He made no lewd proposition to another. He made his approach through a carefully choreographed and time honored code, known only to other homosexuals and in this case, undercover police officers. In this way was he exposed, his secret life brought to light, his career ruined.

Now he will be forced to resign. His old friends and colleagues in politics will shun him. If he returns to his home in Idaho, he will be a man alone and apart. The double standard by which he has lived all his life, will now condemn him to a life ostracized by those he has served so faithfully. Ted Stevens, who stole billions, remains a powerful senior Senator. David Vitter, who admitted to having sex with prostitutes, after having been exposed by a notorious madam, remains a Senator. Larry Craig is guilty of a far greater offense, he is gay in a World that believes it to be an offense against God.

Hundreds of closeted gays remain in the upper hierarchy of the Republican party. They will do nothing to help Larry Craig. There is nothing they can do. I hate those fundo-fascist, Bible thumping, Republicans. I suspect when they meet Jesus on the other side of the Pearly Gates, he'll want to have a little talk with them about respect for the sexual preferences of others.

Bailout Who?

Ben Bernanke, the Chairman of the Federal Reserve Board, has lowered interest rates and has signaled that he will continue to do so, to keep the stock market liquid. This action has the effect of propping up the practice of making highly leveraged and unsound investments by Wall Street fatcats. It also drives pension funds and more modest private investors into riskier areas of investment, in an effort to meet their obligations. It causes inflation, so that people who have spent their lives saving, end up with nothing. It is a bail out of the wealthy, at the expense of those of more modest means.

President Bush has announced that he will relax the standards that the Federal Housing Administration uses to insure mortgages. This does not so much mean that the homeowners who have been enticed to borrow too much easy money from Wall Street, will be able to keep their homes. It means that when they finally lose their homes, It will be you and I, Joe Taxpayer, who takes the loss.

It's clear that the Bush Administration is worried about the wellbeing of it's constituents an is taking action to protect them. Unfortunately you and I are not members of that constituency.

Monday, August 27, 2007

Two strokes is about as much as an old man like me can handle

I drive a 1986 Honda Spree. It looks like an old Vespa, only smaller. The body is made out of cheap, pliable plastic. It has a 49cc 2-stroke engine. The transmission has no gears. It has essentially two speeds, stop and 26 mph. It gets around 90 mpg. I use a gallon of gas a week or less. It costs $40 a year to insure and $40 dollars a year to register. If you tried to ride it in traffic, you'd be dead in a week. Where I live, all the streets have bike lanes. Nobody much uses them, so I do. It's illegal but the cops don't bother me. Works out well for both of us. It has a little rack on the back. When I go to the store, I bungee a plastic milk crate to the rack. That and the little backpack I habitually wear, holds everything I'm ever likely to purchase. I paid $300 for it. In three years, it's never given me any mechanical problems and doesn't seem like it's likely to soon.

For the size of the engine, it's not fuel efficient, or low emission. I don't care. Honda currently makes some really nice small urban motorbikes in Southeast Asia. They are fuel efficient, 4-stroke, water cooled, fuel injected. They are clean burning and FAST! I'd love to buy one of them. They won't sell them here. They would certainly cut into the sales of the larger bikes that they do sell here. You can't even pay to have one shipped over, it's illegal. You wouldn't want to anyway, no parts, no service would be available. When government and corporations tell us that they are working hard to provide clean, fuel efficient vehicles for us, they are lying through their teeth.

I don't care about global warming or the depletion of fossil fuels. Why should I? I'll be dead in 20 years or 76 years old, which, let's face it, is the same as. I just want to get around town in the cheapest most fun way possible. I'll just keep ridin' the Spree.

Sunday, August 26, 2007

The Republicans can always win

We generally think of the Republicans as a political party and technically, that is what they are. They are more than that, however. They are a coalition. A construct of several groups, each with a specific area of concern. They are apathetic to areas of policy outside their specific concerns but are willing to support the agendas of others, as long as those others reciprocate.

The first group is composed of those people with high net worth and actively involved in consolidating and increasing their wealth. Their primary interest is to be able to engage in their commercial activities without regulation, intervention or oversight. As a voting block, their numbers are insignificant. The contributions that they make are purely financial. They hedge their bets and will support anyone in power but prefer the Republican party because of it's greater pliability.

The second group are the neocons. They are highly educated and extremely intelligent. They are well represented in the most respected, admired and productive segments of society. Their sole concern is that the State of Israel be preserved, nurtured and protected, at all costs. The tremendous respect they command makes them invaluable as molders of public opinion. Their intelligence, knowledge and skill allow them to generate coherent policy and direct it's implementation.

The third group are the xenophobes. These people feel discriminated against and threatened by, their peers in society who may not share their same set of beliefs or origins. Their primary motivator is fear. They fear the known. They fear the unknown. They fear what will happen. They fear what will not happen. Their fear makes them easily led. They want, above all else to preserve what they have, no matter how little or insignificant it may be. This is a constantly shifting group. If they lose their fear, they fall away. If they become more afraid, their numbers swell. They are an easy group to manipulate, because the worse you make it for them, the stronger they believe.

Friday, August 24, 2007

Something's Wrong With The Beaver

My wife and I have lived in our place for twenty years. At this point, we've been here longer than anybody else in the neighborhood. It's a beautiful place, quiet, spacious, nicely landscaped. Nobody thinks of our town as luxurious, partly because it's next to Newport Beach, which, on a per square foot basis, is as expensive a place to live as you can find anywhere in the country. It's pretty nice, though. I don't care how much my place is worth. I don't care if property values plummet, though I suspect they won't stray too far down. I'd never move.

Next door I have a retired Air Force O-6 who used to fly B-47s for Curt Le May. He and his wife have 5 or 6 children, all grown up and out a generation ago. He and his wife are the children of Mexican immigrants. Next to him is an old Marine Gunny, 30 years in and 30 more as a civilian DOD contractor, all in the Far East. His wife is Korean. They have kids almost as old as me. Next to them is a young, 2nd generation, longshoreman. His wife is Vietnamese. They have a 2 y/o daughter.

On the other side, the house is shared by 4 very nice young men, attending beauty college, over in Costa Mesa. Hardly even know they're there. Next to them are 4 more nice young men, only not quite so young. Kind of super-annuated skater boys. No drugs but I'm pretty sure they're filming porno in there on the weekends. We have to keep on them about parking violations and the beer bottles and cigarette butts get a little thick out front sometimes. They police them up the next morning, usually.

Across the street is a lesbian lady of color. Big corporate exec. Travels the World on business. Very down to earth. Never flaunts her material success. Next to her is an older gentleman and his wife. They are almost never there. Their children are all police officers in local communities. They spend most of their time up in Idaho, in a place with no phone or mail service, so they say. I suspect he has a military title but that it isn't used outside the compound. He and the corporate lady next door are thick as thieves. She watches his place for him when he's gone.

Just another SoCal neighborhood in the 21st Century. We all pretty much get along, just like Rodney wanted. I'm sure glad I don't live somewhere out in the middle of America, in the middle of all those Baptists and Pentecostals, with all their trashy, hateful, behaviour. I know it makes me a bigot but a person has got to maintain some standards and a little peace of mind is important when you get older. I guess what I mean is, a person reaches a stage of life when they want to be with their "own kind".

Tuesday, August 21, 2007

Geniuses, Hard At Work

This doesn't have to be a long post at all. It's pretty self explanatory.

Capital One, the credit card giant, is closing down it's mortgage business, because it's too risky.

They would rather concentrate on their much safer core business, holding huge amounts of completely unsecured consumer debt.

Smart move.

I think I'll take my life savings and load up on their stock.

Monday, August 20, 2007

Gee! I'm Glad Those Nice Policemen Didn't Get In Trouble

About a year ago, I posted about the police force in my town and how they have a habit of using unnecessary lethal force, notably when witnesses are not present. In this case they gunned down a high school girl, distraught from a sexual assault, earlier in the night. The ER doctor who examined the corpse documented 23 bullet holes in her body.

The "impartial" investigation of the case, by the county sheriff, found the shooting to be justified and no disciplinary action was taken against the officers involved. There were several officers on the scene, with two discharging their weapons. She was, at the time, menacing them with a 3" paring knife, from her Mother's kitchen.

I recently read in the paper, that to avoid going to court, to defend the officers actions, in a lawsuit brought by the girl's family, the city has offered a $2,000,000 settlement. Seems like a lot, for a justified shooting, although it does work out to less than $100,000 a hole.

Gee. I'm glad those nice policemen didn't get in trouble.

Thailand Remains Our Friend.

Elections were held Sunday in Thailand, to ratify a new constitution, authored by the military junta, which seized control from the democratically elected government earlier this year. The new constitution calls for a nominally democratic government, while actually leaving it in control of officials appointed by the judiciary, drawn from the same pool of hereditary elite as the military officers who make up the junta. The vote on the new constitution passed with ease, considering that the previously elected majority party has been outlawed and it's leaders muzzled by threats of detention and retaliation against their families.

Thailand is and remains America's staunchest political ally in Southeast Asia. The military coupe transitioned the country into autocracy without a peep from the Bush administration and virtually no coverage in the American media. Thailand has a strong economy and a rapidly developing industrial base, though they still rely on their traditional mainstays, smuggling, piracy and the slave trade for most of their economic strength.

Bangkok, the capital, is where the junta draws its strength from. Bangkok is the shipping point for opium distillates from the fields of the Golden Triangle. It is the clearing house of pirate booty from all over Asia. It is a Mecca for sex tourists and pedophiles, the World over. It is, in short, the preferred recreational destination for American military personnel, corporate executives and especially clergy, now that they cannot rape young American boys and girls with impunity.

It is good to know that Thailand remains our friend.

Thursday, August 16, 2007

We Certainly Deserve Whatever Terrible Times Lie Ahead.

We don't have much of a savings rate in this country. Most families just get by. They have a car and a house that they owe money on. They pay a lot of taxes. Property taxes. Sales taxes. Income taxes. Gas taxes. Social Security and Unemployment withholding come out of their checks every week, right off the top. Those are taxes too. By the time they get down to the money they have left to feed their families, it isn't very much. Not enough. It isn't that they don't want to save. They do. Save to give the kids a good education and a decent start in life. Save for their old age, so they won't be a burden. Those things are important. The money is just not there. Ya do the best with what you can, today. You hope maybe there will be a little left over to save tomorrow.

There are people in this country whose lives aren't like this. Percentage wise, they aren't many but there are a lot of people in this country. There are hundreds of thousands of them, maybe even a million or two. They have real nice houses, more than one. They have shiny, expensive cars, more than a few. Boats, nice ones. They travel, a lot, 1st class. Golf, twice a week. Pick up the tab for lunch with the guys, more than I make all week. Their kids go to Name schools. Their shoes aren't made in Bangladesh. It's all about percentages. Percentage wise, they don't pay many taxes. Percentage wise, they don't spend that much on their very comfortable lifestyles.

These people serve an important purpose. They hold America in trust for us. They own the land. They hold the stock in the companies where we work, of the banks that loan us money, the companies that sell us gas, the hospitals where we go when we're sick, the cemeteries where we're buried when we die. These people control the Capital that make our way of life possible. They take the risk. They need to be protected. Like the whales. Like the redwoods. Like the spotted owls. They are the foundation of our social ecology. Think green. Green is the color of life. Green is the color of money. Same thing.

We have done the Capitalists an insult. We have borrowed too much, for too long. More than we can pay. More than we are worth. We have lived our lives and fed our children with their money and now we can't pay them back. They are left holding worthless paper. An empty promise, from those for whom they have held America in trust, for so long. I feel so ashamed. We certainly deserve whatever terrible times lie ahead,

Wednesday, August 15, 2007

Tiny Bubbles in the Wine, Tiny Bubbles Make Me Feel Fine

Just taking a break from cleaning my neighbor's pool, lounging on my deck, enjoying a cold drink. I wonder if there really is anything to this whole real estate bubble theory some people are talking about? My condo is pretty nice. Good neighborhood. Nice weather. Couple miles from the blue Pacific. They have been going for $600,000-$650,000. Still, It's nowhere near as nice as the house I grew up in a few miles away. I wonder how much that's worth now? My parents paid $17,000, late in 1959.

It seems to me that the Japanese had a situation like this in the eighties. Yeah, I remember now, they were selling each other urban real estate, generating inflated equity, and leveraging the equity to buy more inflated real estate. I remember a Japanese real estate investor saying, with a straight face, that a several square block area in the center of Tokyo, was worth more than the entire state of California. It all came unraveled in 1990. Real estate values dropped like a shot. They had some problems with bad real estate loans, too. Not really a stock market problem. All the economic fundamentals were good. They did have to lower interest rates to Zero, where they pretty much are to this day and the Nikkei 225, almost two decades later, is still less than half what it was then.

It's not the same though. The Japanese economy is not the same as ours here in America. Do you want to know why?

THEY STILL ACTUALLY MAKE STUFF IN JAPAN AND SELL IT TO OTHER COUNTRIES! FOR A PROFIT!