Sowell Looks at the Politics of the FHA and FDIC
Regular readers know that I've been a persistent critic of the FHA (e.g., here and here). One of my favorite economists, Thomas Sowell, has a new column out where he reviews a recent news item example loan by 3 young men whom put together a down payment of about $33K--on roughly a million dollar home. Why did the bank make the loan? It's guaranteed by the FHA. I bet my grand-nieces can figure out how much a traditional 20% down payment on a million dollar home goes for and whether the guys were paying enough--or whether the American taxpayer is being left with all the risk in the transaction. HAVE WE LEARNED NOTHING FROM THE S&L CRISIS, THE HOUSING BUBBLE BURST OR THE ECONOMIC TSUNAMI? Thomas Sowell reminds us of the moral hazard of ever-increasing government guarantees on transactions and deposits, which is all but an invitation for financial institutions to engage in riskier transactions given the implicit (or explicit) government guarantees. He points out progressive Democrats like the infamous Congressman Barney Frank is aiding and abetting this form of government-enabling speculation.
Don't get me started on Barney Frank; he represents Fall River, the birthplace of my folks. My mom and I can't figure it out, but we know relatives whom actually vote for the guy (let's face it: somebody had to). Before you get judgmental on me, I might suggest that you, too, may have some skeletons in your family tree.
By the Way, Did Anyone Notice Maine Voters Reaffirmed Traditional Marriage Election Day?
On November 3, Maine voters voted to restore the traditional definition of marriage as yet another liberal state defeats political correctness really designed to undermine the fundamental concept. I don't feel "threatened" by gay "marriage"; I think it reflects a certain insecurity of progressive gays in their own identity and there are psychological reasons for their need to adopt a heterosexual institution, which has a history of thousands of years, not unlike the desire of certain people to have cosmetic surgery (e.g., maybe men will find her more attractive if her breasts were enhanced). Adopting other people's physical or institutional characteristics in a compulsive need to find social acceptance just doesn't work. (There are legitimate reasons for cosmetic surgery, including things like congenital defects and disfiguring accidents.)
Political Cartoon
Hey, Mr. Taxman, your reaction is over the top. By the way, her eyes are up there. Cartoonist Steve Kelley gives us a pointed example of what you can expect from a tax proposed by a bunch of boobs.
Musical Interlude: My Favorite John Stewart Song
The late John Stewart was a member of the famous folk group The Kingston Trio during the 1960's and is probably best known for two singles, a huge hit for the Monkees called "Daydream Believer" and a 1979 solo hit "Gold" from an impressive album I purchased called "Bombs Away Dream Babies". (I also really liked "Lost Her in the Sun".)
My first professional data processing job was at a San Antonio-based insurance company; I taught myself a computer language called APL, The initial manager hire for my work group fell through, and the company replaced him 3 months later with an internal candidate without a college degree (or APL knowledge) whom was paranoid I (with a Master's degree) was out for his job. (My successor was a friend still pursuing his BA taking night classes at UTSA.) I impressed the Houston branch manager for STSC, at the time the leading APL computer timesharing company (the industry essentially disappeared during the 1980's, mostly due to cheap computer processing on newly introduced PC's).
STSC had headquarters in Woodland Hills, CA (a Los Angeles suburb). I had always heard stereotypes about people in California, but I never really believed them until I met this blond female trainer from headquarters whom visited our branch early in my employment. She was really upset to be away from home on her car's birthday, so she mailed it a birthday card from Houston. (Pardon me if you hear me laughing in the background.) I thought she was putting me on, until I visited headquarters a few weeks later. Somehow I found myself in her car riding shotgun during my stay when she pointed out the birthday card hanging from her dashboard mirror. I swear to God this happened in real life, and I'm not making it up.
What does this story have to do with "Midnight Wind"? On the plane trip to Los Angeles, this song was in heavy rotation on the audio channel I selected, and I bought the album based on this song alone. You will immediately recognize the distinctive backing vocals of Stevie Nicks (frilly lace, have mercy! No, not on this video...), one of Fleetwood Mac's best singer/songwriters, and fellow Mac veteran Lindsey Buckingham's brilliant guitar work.
