When Clinton pushed for and got Congressional approval for the repeal of Glass-Steagal it allowed the distinction between commercial banks and investment banks to disappear. Many hailed that as a great achievement. The White House then took the position that the distinction was old hat and a product of an earlier era that no longer applied to the looming 21st century needs of the financial world or the economy of the US domestically and globally. Those commercial banks were not allowed to make investments but performed the traditional bank function of taking deposits and loaning to individuals and companies. The investment banks were not allowed to take deposits and advanced money for capital or for secured loans to businesses. Yes, it was an old fashioned approach. There was really nothing wrong with the idea of allowing the banks to take on all aspects of banking. The problem was that Government, Inc. then pushed even harder with its regulations and the CORE type legislation and compounded the problems by allowing the Too Big To Fail doctrine to take root. I have no problem with banks filling both roles but I do have a problem with them being bailed out if they make bad decisions.
Less than generation ago the investment banks were all partnerships. The partners had their own money at risk in virtually all their new deals they promoted. Yes, they used others peoples money but they had some real skin in the game themselves. You had to actually buy with real dollars your partnership position in those firms. Needless to say they were more cautious when they had their own money at risk. Contrary to the majority of the hedge funds today. Now those banks do deals all the time by investing other people’s money and taking a commission in cash or cash and a piece of the deal for their services. In addition they collect management and administration fees for their alleged work. I like the old way better.
The staffs in Washington are too darn big! No Senator or Congressman needs more than two secretaries and three staff members. Remember that each and every committee in the Congress also has a staff and some of them have dozens of people on the federal payroll. That is ridiculous. They all feel like they have to justify their position and are constantly planning their next piece of legislation. Wouldn’t it be nice if someone running for Congress ran on a platform of repealing useless or even harmful laws. How about eliminating the pointless agencies of government like the Depts. of Education and Labor. Those are just starters. We have labor laws, why the agency? Education under the Tenth Amendment is strictly a State matter. We could save billions and the States would have those funds to use as they see fit and tax their residents as they think best fits their local needs.
When will the people make the government come up with the costs each year for the education and medical treatment of illegal aliens? Not those estimates of the alleged benefits we get from their taxes they pay. I mean what taxes? If they are illegal they don’t have a social security number to pay taxes or if they do it is phony or even worse stolen. I am proud of our nation and have no problem with any citizen receiving the benefits under any of our laws including those entitlements. But I don'[t feel any obligation to pay one cent for an illegal that doesn’t even respect our laws. Maybe 10 plus unemployment will change some more minds about the money drain they are on our economy.
Storms have influenced so many of the great events in our history. When the Redcoats attacked Washington in the War of 1812 the greatest danger they faced and what really ran them back to Cheasepeake Bay was a huge line of thunderstorms they blew in after they burned the Capitol. D-Day was postponed and almost ruined because of the weather. The Spanish Armada was given a severe blow by the British in 1588 but they still had a formidable fleet after the initial encounter off the southern coast of England. What brought them to total ruin was a great storm that drove their ships ashore on the coast of France and the Netherlands. After that the threat was over for England. The Spanish lost more ships in the storm than in the encounter with Drake. Of course if helped that the English had longer range cannon than the Spanish.
Will Government, Inc. put up some new restrictions on the ownership of gold in the near future? Don’t laugh, it has happened before in 1933 and again in 1971. The dollar weakens and more people are turning to gold for safety. The Indians just bought 200 metric tons of gold. That is a huge amount. They clearly thought carefully about that transaction. Our mounting debt and the ever burgeoning debt is a legitimate concern for the value of the dollar in a few years. At some point Government, Inc. will have to pay attention to the problem because others around the world are. Using inflation to reduce our debt will only further weaken the value of the dollar and confidence in the dollar. It won’t happen next week or even next year, but watch for it. Invest wisely.
We all have First Amendment rights to speak our minds and express very strong opinions. I have no problem with that. You can’ advocate a Nazis view or even a Commie one. But we don’t have a right to serve in the military. Someone please explain how a guy like Hasan was allowed to remain in the military when he clearly was a Muslim extremist?
Your home and the office building where you work in all likelihood has a lighting rod. Such a simple device yet so valuable. It has saved countless lives over the years. You owe it all to Ben Franklin. He didn’t even collect royalties. http://www.olcranky.wordpress.com