Saturday, February 28, 2009

winds of change

In 1933 the U.S. government bowed to the inevitable, took us off the gold standard, and devalued the dollar. The depression of the 30's ended in 1934 and stayed quiescent until 1937 when the treasury, buoyed by this success, raised interest rates which moved us back in to a depression. That was relieved by WW II.The huge debt the feds now enjoy can not be repaid but it can be paid off with a debased currency the temptation, and yes, the necessity, will force devalation.

Saturday, February 21, 2009

gaming obama

I now have a mortgage on my house for 190,000. When I took out this mortgage my house was worth 270,000 now it is worth 220,000. If I take out a second mortgage now, with my excellent credit, of 30,000 I will be under water and entitled to help with the mortgage. Is this right? Hell no, but if I had bought the house for 220, and refinanced it when it was worth 270,000 and gotten an extra 50,000 to buy my las vegas vacation. . I would now be underwater and entitled to government assistance of some kind with my mortgage. I'll be damned if I want to help out all the stupid refinancers and the mortgage companies that made those crappy loans.