floydius it's almost like you've got nothing better to do

30Sep/08Off

Well done, Congress.

This is the letter of thanks I sent to my Congressman, Jeff Miller for voting against the recent financial bailout bill. If your House representative voted against this bill and you agreed, please write or call them and let them know you stand by them. Those who voted against this bill are going to be feeling particularly vulnerable right now because of the market’s reaction. Make no mistake, there is nothing we can do to avoid some level of recession at this point. However, the vote today prevented us from exacerbating the situation, and I was pleasantly surprised. Who knew you could get fired up about Congress?

Congressman Miller,

THANK YOU!!! I just want to take this opportunity to express my gratitude for the stand you made today with your constituents. You made the right call. I believe what you have done today prevented us from throwing gasoline on an already burning building. Please continue to stand your ground if this bill is recycled in some other form, and I will continue to support you however I can. Thank you again!

Sincerely,

Lloyd Taylor

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  1. i haven’t said anything offensive or subversive since the whole elrod incident (which has apparently cost me the right to even have a conversation with Phillip even after i apologized), so i figure it’s about time to stir the pot a little.

    if i understand correctly, you see the greatest drop in the stock market in two decades as a good thing?

    if you’re going to point me to Ron Paul and his Austrian School economics, and expect me to swallow that the financial market crash is not only inevitable but somehow part of the cleansing that must take place before healing can occur, i’d like to point out a few things that, in my opinion, ought to be taken into account before we celebrate congress’ inability to pass the bailout bill.

    have we, as the US sinned? very much so. kudos to “the good doctor” for predicting this perfect storm, and i couldn’t agree more with him that the gov shouldn’t print free money and we shouldn’t keep charging things to this pie-in-the-sky national credit card.

    the problem is that the perfect storm _has_ occured. the consequences of our sin have reared their ugly heads and we’re heading for a cliff. can we wave a magic legislation-wand and *poof* all our problems away? no. no matter what happens in congress somebody’s going to have to pay for this mess. the question isn’t IF we’re going to pay; it’s WHO is going to pay.

    on our current trajectory, the world’s largest financial institutions are going to take a nasty plunge. who does this most directly affect? the constituents who are opposing this bill shout “WALL STREET,” thinking that these executives with their golden parachutes are the ones who will bear the brunt of this fall. they couldn’t be more wrong. the executives have already stored their parachutes in places that won’t be touched by this mess. the people who will pay for this will be baby boomers. our country’s largest demographic is getting ready to retire, and unfortunately the vast majority of their retirement is tied up in wall street through big financial institutions. in other words, the majority of the united states just watched as a quarter of their retirement got tossed out the window, on the brink of retirement. now, at 65 years of age, they can either sell their homes (at record low home values) or find a new job.

    and remember: this isn’t just US citizens we’re talking about. because of Ron Paul’s beloved Free Trade, the countries of the world are all tied up in this mess together. the united states has once again become the scurge of the international community.

    so how would congress’ bailout plan change things? if it’s done right, it means that the consequences of our sin will be spread out over us as a nation. it means taxes across the board will go up, and instead of forcing the old to bear the brunt of this collapse, we as a nation will bear the burden together. instead of dumping our toxic debt onto international shoulders, we’ll nut-up and take responsibility and ownership of our sin.

  2. Bryan,

    You make some good points here. As we speak I’m working on a few posts that should answer these questions. Before I finish them, though, let me address a couple of issues.

    1) Free trade (aka, free market economy) is not what has tied up our largest financial institutions in this mess. The central banks are at fault for that, no question. They are about as anti-free trade as you can be.

    2) You’re right; the question really is, “Who is going to pay?” My answer is that everyone will pay, no matter what congress does at this point. My reason for opposing the bailout is that I believe it would not have any discernible positive effect that lasts more than a couple of months. In the long run, it would land us right where we started with a more massive problem. The government infusing $700B into banks is not going to make your 401K worth more. In the long run it will make it worth even less.

    As I said, I’m going to address these points in some upcoming blogs, so stay tuned.

    Also (and I’m just some guy talking here), but I’m going to throw my $.02 in here (or maybe I should throw in about $20 to adjust for inflation). I think you and Philip just got off to a bad start. Regardless of how that came to be, I think you should both forget the elrod conversations ever happened and just start over. I think you guys will like each other and get along fine. You both are intelligent folks, and we all use strong words from time to time when we feel passionate about something. Anyway, possible moratorium on bringing up the elrod thing in favor of a do-over? : )

  3. That’s what she said

  4. The more I read about this credit crisis, the more I realize that it is way above my understanding. It’s not just about retirement accounts, the Dow, and the S&P. It’s also about the whole idea of credit itself: being able to get a loan for a home and for a car. And if folks can’t get loans AT ALL, then the entire economy slows down.

    Lloyd, I appreciate the perspective that this system of debt — and perpetuating that system — are not good. I just don’t think it’s good enough to focus on the problem without thinking about any possible solution. In free market enterprise, folks have to be able to borrow money. What’s the alternative?

  5. i second never mentioning the elrod affair again (oops!), and i second wanting to start over with phillip. i’ve asked for his forgiveness. hopefully he will eventually accept.

    as to this statement “the government infusing $700B into banks is not going to make your 401K worth more,” you couldn’t be more wrong. in fact, on merely a tidbit of news that congress might actually reach an agreement before the apocalypse, the stock market rallied significantly. yes, $700B adds to our $10T national debt. if you took all of our debt, including social security and wellfare (coming to a staggering total of $59T), spread that out over three generations and place the burden on a sliding income scale, average americans like you and me will be paying the equivalent of a $50 cable bill for the rest of our lives. i’m not saying that’s a good thing, but it’s better than a world-wide financial meltdown where my 401K becomes worth nothing at all.

  6. Bryan,

    As I said, I’m addressing this in an upcoming blog, but I’m looking at the big picture here.

    1) Yes, in the very short run, this plan would increase the value of 401K plans in terms of dollar amount. However, this will not increase the amount of goods/services/rent/etc. that the balance will purchase when the dollar is worthless. Trust me, I want the stock market to do well, I have a 401K into which I’ve already paid a significant amount, but your 401K, the FDIC, rooms full of money will mean literally nothing if the dollar loses its value. That is what we’re really looking at here.

    2) “average americans like you and me will be paying the equivalent of a $50 cable bill for the rest of our lives.” It would be really nice if that was all that would happen, but that would be a cakewalk compared to the true results of this plan. $50 / month for life only covers the cost of our current debt. What about the debt we incur by maintaining our insane credit dependency during the rest of our lifetimes?

    Anyway, like I said, I’ll be addressing this more fully shortly here.

    Also, (to everyone), if you still haven’t watched Money As Debt, then please do so in order to get a grasp on the basics of how money is really created currently. It will really challenge your thinking.

  7. Bryan, I’ve got nothing against you. Consider yourself forgiven. Let’s move on.

  8. Ron Paul good. Bailout bad.


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