It's just my opinion, I could be wrong

It occurs to me more and more often recently that the problem with taxation is not going to be fixed without a revolt. I was reminded of this with a news report about how voters in Massachusetts (Txachusetts?) are voting to eliminate their state income tax, and how all the politicians are bemoaning it as it would be horrible for the state. But I don't think so... See, politicians in America always spend more money than they have. We have no sense of fiscal discipline, and we've run deficits at every level for so long that restraining spending is not really even a consideration any more. Look at the recent and upcoming stimulus and insider payoff packages: we've spent over a trillion dollars we don't have, when we're already $10 trillion in debt, and the only complaint was that the bills didn't have enough pork for everyone. Eventually, this usually leads to higher taxes. For example, I predict that by the end of Obama's term(s), we will have substantially h...

Not that he would actually read anything posted on an unknown blog, but I'm going to write in this style anyway... Dear Mr. Buffet, Recently you submitted a NYTimes opinion piece about it being a good time to invest in American equities. I have long been a believer in your wisdom when it comes to investing, but this recommendation raises some interesting questions which were not directly addressed in your piece, and I'm wondering if you could/would provide some much needed clarifications to your position. First, as a supporter and adviser of Obama, I assume you are intimately familiar with his proposed and likely economic policies. Furthermore, I think most people would agree that you have a very broad understanding of the current global economic situation, and particularly the US situation. Given this, it seems clear that you would realize that the US is likely headed for the largest expansion of both government function and government oversight since the last time the curren...

There's a lot of talk these days about how to "fix" the problems in the economy. One of the major causes of both the initial problems, and the problems with the proposed solutions, is the concept of self-reinforcing trends (or spirals). Often these can cause problems to get much worse, and its hard to prevent them if you don't know (or choose to ignore) what's going on. For example, the housing bubble was such a trend. As prices went up, lenders figured they could give a loan to anyone with a pulse and the ability to make a teaser rate payment, even if they were accruing negative equity, because when they sold in a few years the rise in asset valuation would cover the balance of the loan and then some. Buyers figured the same thing, which led to many people speculating on the premise of getting rich quick with virtually no effort required. The housing correction has a similar trend, only in reverse. As house values decline, speculators default. Their foreclosed ho...

I know I've probably mentioned this before, but reading about another example today made me want to bitch about it again. For reference, the article I read was about how Fannie Mae will now be buying up bad loans from the Federal Home Loan Bank of Chicago. The action is somewhat expected given the recent nationalization of the GSE's, and thus their renewed emphasis on wasting money instead of making money. However, it also emphasizes the utter idiocy of government policy in the housing market. The FHLB of Chicago nominally exists to provide below-market loans to people to help them afford to buy houses. Now, helping people afford to buy houses is not a bad idea in and of itself. However, this, in a microcosm, was a huge factor which lead to the housing bubble. Let me explain... When you have subsidized purchases of assets (of any kind, assets or subsidies), and the asset prices are not set by an authority (ie: any free market), the asset prices will rise to compensate for the ...

Come one, come all... witness the glory that is the American system of government and "representation" of the people. This week we are being treated to a quintessential example of the American political system at its finest. Some of the great and noble acts already on display or expected to appear: - The house taking a 4-page monumental power grab and gigantic corrupt payoff bill, and transforming it into a 104-page monumental power grab and gigantic corrupt payoff bill with riders, pork, subsidies, and even more filth - The president lying about the scope of the problem and the effects of the proposed "solution", to pressure Congress to pass the bill - Congressional leaders pushing to pass the bill once it had all the pork they could stuff into it in only a few days, even though the overwhelming majority of people in the country (90%+) opposed it on principle - A "rousing" empty-headed partisan bash speech by Speaker of the House Nancy Pelosi just before ...