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It doesn't seem that the truth is being told about The Bailout

It would seem that The Bailout, hereinafter referred to as TB, and, yes, the double entendre is intended, is not understood by the average person, nor, perhaps, by the commenting pundits.  This should concern us all since we are all paying for TB.  Okay, perhaps not ALL; perhaps everyone who is actually paying personal income taxes, which account for three-fourths of the Treasuries revenues.  At last check less than half of registered voters earn enough adjusted gross income to pay federal taxes, and about 35% of W-2 filers (people with jobs) don't pay federal taxes.
 
Here is what I think I know about TB.  The private companies at risk of bankruptcy, and/or of large financial losses, are the private companies and investors that own mortgage backed securities (MBS) whose component residential homes are worth less on the market than they were when the MBS was presented to the private companies by the mortgage brokers and banks just prior to the sale.  In other words, the only entities that are benefitting directly by any proposed government bailout, or TB, are those that own loans whose collateral isn't worth enough on the market to suffer through default by the homeowners paying against the loan.
 
So who are these companies and individuals, and why is the government so all-fired intent on bailing them out?  I don't see that they are anybody special.  It seems to me that the shareholders of these companies, or the investors, should suffer the possibility of bankruptcy, or asset value reduction, or revenue stream interruption, or whatever would naturally happen if no Bailout occurred.  Let market forces prevail.  Let whatever happens, happens.  At worst, it seems, the investor or company would still own the title to the collateral properties.  And at worst, it seems, these properties could be offered to the market for market prices.  Somebody will want to live there, if the price is right.
 
Will the credit market dry up if these companies and investors are not made whole; are not repaid by the government for the paper value of the collateral houses?  Hey... rich folks gotta park their money somewhere.  And whatever money there is will be for sure parked wherever the best return can be had, as has always been the case.  After the rich folks lose 30% of their MBS collateral value, and lose 10%, or so, of their revenue stream because of loan defaults, life will continue.  And it certainly seems a better approach for the government NOT to buy titles to houses at prices GREATER than the market value, which wold mean a loss for the taxpayer, but instead for the government to guarantee loans to mortgage brokers and banks for future mortgages, and the newly adjusted market values of the houses, which the people and the appraisers and the banks will figure out.  Little risk to the taxpayer - perhaps the traditional 4% to 6% default rates, with the resuting house being worth what the paper says it's worth.
 
 
Here's my thesis - let the loans default, pursue the defaulters by reporting them to the credit agencies and issuing judgements for the loan principal, have the government provide new loan money rather than purchase properties, and let's go about our business.
 
 
There are lots of bad guys in this whole business, and those bad guys should be rooted out.  Some of the bad guys are those associated with Argent, AmeriQuest, CountryWide, Lehman Brothers, Fannie Mae, Freddie Mac, Bear Stearns.  Some of the bad guys are those associated with the Community Redevelopment Act and its standards, or lack of standards.  Some of the bad guys are appraisers and the appraisal process, which allows for ever escalating home prices.  Some of the bad guys are home buyers and re-financers that think they should get 100% or 125% of home value in loans.  But the government should not sell the idea that the only answer is for the government to buy houses at elevated prices.
 
 
Oh, and by the way, it is unconstitutional for the government to do so.
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The U.S. almost owned Mexico

In 1846 President Polk had a yearning for the U.S. to own territory from the Missouri River to the California coast.  The U.S. already laid (disputed) claim to Texas, but we wanted more.
Mexico at the time was a weak country, bankrupt and not able to control all its claimed territory, and a vast expanse it was, leading from the Missouri River to the east all the way to California in the west.  President Paredes of Mexico, recently a general and having wrested control of the Mexican government through other than democratic means, had nothing to negotiate with but was putting up a brave front.
Polk dispatched General Taylor with a small force to the Rio Grande near the Nueces River, the southern boundary of Texas at the time, to incite a response from Mexico for occupying disputed territory.  It didn't work... nobody came out to fight.  Commodore Sloat was dispatched to California to control the ports, and still no response.  What was Polk to do to pick a fight?
On 9 May 1846 a large Mexican force ambushed a small U.S. force, killing eleven, wounding five, and capturing the remainder, just in time to give the President his excuse.  President Polk dispatched forces, got money from Congress, and sent General Taylor to conquer.  Between General Taylor, General Scott, and Colonel Kearny, by October of 1847 the U.S. controlled territory as far south as Mexico City, and controlled that capital city by conquest.
President Polk had dispatched Nicolas Trist of the State Department with General Taylor early in the war with instructions to negotiate when the time came for Upper and Lower California (California and Baja), New Mexico, and Texas south to the Rio Grande.  And that is what Mr. Trist did.  But by this time it was obvious to President Polk he could ask for much more, and he sent word for Mr. Trist to be recalled in order to make new terms for Mexico down to the 26th parallel - a flat horizontal line on the globe ending at the tip of Texas.  Mr. Trist ignored the instructions, negotiated the Treaty of Guadelupe Hidalgo, and we ended up with the southwest U.S. as we know it now (short of the Gadsen Purchase).  A half million square miles bought for $15 million dollars (and $100 million spent on the war, along with 13,000 dead Americans).

But we could easily have had much more, perhaps all of Mexico and Cuba, too.  Certainly Mexico down to the tip of Texas.

Oh, well.  Who wants Guatemala as a neighbor, anyway.
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global warming

I recently read, and then re-read, the book "Meltdown" by Patrick Michaels.  If you know about the book, you have guessed my leanings on the subject of global warming, that is, there is no human induced warming of the globe.

I'm still digesting everything Mr. Michaels has written and putting it into an argument I can present cogently, but the points made in the book are very compelling to me as a novice commenter on world events.

A summary of what I learned:

1. Carbon dioxide, the most concentrated of greenhouse gases in the atmosphere, excepting water, comprise 0.038% of the atmosphere.  Water vapor and droplets comprise 90%.  Not much of a comparison.
2. Water and carbon dioxide have a very similar effect on global warming, and that effect is logarithmic, not linear or exponential.  In everyday terms, this means that the MORE greenhouse gas you have, the less the incremental warming effect.
3. So, water accounts for the VAST majority of global warming attributed to greenhouse gases.
4. The first 0.002% of carbon dioxide (remember there is 0.038% by volume in the atmosphere) accounted for the first 1.45 degrees C of temperature rise attributed to carbon dioxide.
5. The next 0.026% of carbon dioxide accounted for the next 1.45 degree C rise.  That gets us to 0.026% by volume in the atmosphere, and 2.9 degrees C rise.
6. And all this happened prior to 1940.
7. The next 0.01% carbon dioxide concentration increase, that contributed since 1940, accounted for 0.6 degrees C rise.  A total of 3.5 degrees C rise due to CO2.
8. To double that effect - to rise the global temperature by another 3.5 degrees C due solely to CO2 concentration increase - would require an atmospheric concentration of 9% CO2.  Which cannot happen, since we would be dead at 0.6% CO2.
9. Doubling the CO2 concentration from 0.038% to 0.076% would raise the temperature 0.006 degrees C... which could not even be measured with a thermometer.


Hmmm.


Now to go check all my numbers.  This all came from my weak memory.

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