We should all look to the Irish parliament (the Oireachtas in Gaelic) to see what a modicum of statesmanship looks like. The Irish Fianna Faill party is going to lose the next election largely because they didn’t stop the credit crisis from swamping the Irish economy. But, now that they are on the way out, they are at least trying to do what they think is right for the Irish state they were all elected to serve. Besides the simple fact that a lot of those parliamentarians will be back after the election, the party seems to feel a duty to the state and the population to try to mitigate the disaster that has unfolded on their watch. Read more
Deficits Are Here To Stay
Well, they tried. That’s probably the nicest thing that most people will say about the President’s deficit panel, which published its final report and disbanded. Government finances are in no better shape than they were yesterday, possibly worse. Chaired by Alan Simpson (former Republican Senator from Wyoming) and Erskine Bowles (former Clinton White House Chief of Staff), the panel tried to get people to at least think outside the box on taxes and spending. They started with lofty goals and a real world determination to change the discussion about government spending. They failed to get their package of changes approved by their self-imposed super-majority of the members, but did get a majority to sign-on to approach the budget from a different perspective. Read more
Joan’s Real Estate Corner… Holiday Home Safety
The Holiday season is upon us, and for most it is a time full of joy, fellowship, and family. But the unexpected can and does happen.
So, from stopping theft to preventing fires, here are a few tips from the experts that can help keep your family safe this time of year. Fire safety comes with the territory of the holidays. Trees and lighting can both be dangerous if not done correctly.
When selecting a real tree, be sure to buy one that is fresh. This means you should look for a fragrant tree that is a rich, deep green color. Also, the trunk should still be sticky with sap. Old trees are dry and brittle, and thus can be very flammable. Read more
Social Security isn’t very secure right now
Social Security was back in the news again with the release of a series of recommendations from the President’s Commission on Deficit Reduction. You see, Social Security isn’t very secure right now. Any competent actuary would tell you that the way we fund Social Security is nowhere near sufficient to pay the benefits that are promised. That is why a goodly proportion of younger workers deride the idea of ever getting anything from Social Security for themselves. That is probably a little overstated, but none the less a good starting point for discussions. Read more
Good Week
If you’ve ever seen ‘The Seven Samurai’, Akira Kurosawa’s masterpiece (although a little slow for most modern tastes, brought up on Sesame Street and accustomed to explosions every couple of minutes in their movies) you’ll remember the somber ending when the elder samurai tells his acolyte “alas, once again we survive” (you see what he really wanted all along was an heroic death). Well, it looks like our democracy will survive again. Accosted by negativity, bolstered by hyperbole, misguided by half truths and yet, we have decided who will be the leading politicians of the next couple of years anyway. Luckily for all of us, we can change our minds every couple of years. The beauty of our democracy is that the founding fathers understood what stupid, boorish and easily lead people would follow them. They kept it fairly simple and kept the political power spread out among an elected legislature, the anointed judiciary and the powerful executive. Having just survived the rule of hereditary kings, they were anxious to keep the powerful executive from exercising too much power. Read more
TIPS Go Negative, Yield That Is
It had to come to this sooner or later. Interest rates broke zero at an auction of 5-year Treasury Inflation-Protected Securities last week. The auction lead to a nominal negative 56 basis points coupon for the notes, so evidently folks are convinced enough to pay 102 for a bond that will return 100 in five years, with only the inflation adjustment to change that outcome.