Griping

I will present this Post from Mish without much comment, except to ask why established Politicians with normally successful personal lives seem to believe that the borrowing practices of obvious failures in the economic system can be adopted for the spending practices of a Government. The later is left with no degree of Savings, no element of Recapitalization or Investment, adamant refusal of Down-sizing, and a Pricing policy (in this case: Taxes) allowing for no profitable operation. Every venue shown to be a failure in the personal lives of economic participants is adopted by Government leadership, under the publicity that it will be successful on a national scope. Read Mish, and ask yourself if you would want any of those cited to manage your Investment portfolio.

I advance this Piece as a further example of my contention. Why in God’s Name would We want to pursue a negative nominal Interest rate? It is most like giving the proverbial dead horse CPR, while whipping him. There are natural limits to economic initiatives, and reaching Zero is a good indication of reaching the dead horse. No one can understand my confusion at witnessing otherwise supposedly skilled craftsmen trying to design new techniques for reaching bankruptcy. I would, if I were the federal Judge in charge of the GM bankruptcy, nullify all agreements made prior to entrance into my Court; because of the clear discrimination utilized in their construction. The Reader should understand that I favor no Side or Interest in the affair; I am just outraged by denial of personal interest involved by GM leadership backed by Government. Everyone has the right to expound their own Stake in the Outcome, even if it is eventually denied by the Court. Government policy seeks an easy Bankruptcy solution, but loss of vast amounts of economic power for major segments in the dispute is neither easy or satisfactory.

Another Sign of the delinquency of modern Government policy. Bankruptcy is becoming the desirable route for American families again, whose medical bills are growing much faster than their ability to Pay. Some 6,000 Bankruptcies per Day, mostly medically derived, indicates that there is real hazard in the current medical billing system. Government has not seriously approached the area, though there has been continual vocalization of such Need, every since the introduction of Medicare. It is good indication of poor Government practice, when regulation and law only provides advantage for Special Interests, while leaving the majority Interest to rot on the vine so to Speak. lgl