All Posts Tagged With: "Alan Greenspan"

The Stupidity of Banking Fees

About ten years ago, my savings account basically stopped paying interest. The rate of about two percent fell to something like one-tenth of one percent in 2002. Over the last ten years, people just seemed to forget the way things used to work – banks are supposed to pay you for placing your money into a bank account.

Well, as you may have known, Bank of America has raised an uproar by announcing their intent to charge a $5.00 per month fee for their customers who use debit cards to make purchases. Other banks are expected to follow suit. This uproar has taken the tone of anti-corporate class warfare: the “Bigs” vs. the Common Man; Banks vs. The People – whatever. The furor is missing …


The Latest Treasury Bailout and the Law of Unintended Consequences

I have to admit, my thoughts regarding the latest financial debacles waver from one extreme to the other.  My initial instinct is that the markets need to be stabilized, and anything that provides a floor for a stock market in apparent free fall is a good thing.

My next thought is that $700 billion is a huge chunk of change, and ultimately, the taxpayer, that is, you and me, is on the hook.  The current US budget is running a significant deficit, Congress and the current Administration have not proven themselves worthy of handling such a large sum of money.  On the other hand, the Treasury is acquiring these assets at a fire sale price, so as a taxpayer, we may be able to recoup …


Everyone Deserves To Own A House, Right?

Well, Hillary appears to be attempting to make EVERYONE happy.

More government money to rescue folks who simply bought more house than they could afford. According to a Wall Street Journal story Tuesday, Hillary proposes:

  • Freezing Forclosures for 90 days
  • Freezing Interest-rate Resets on Sub-primes for 5 years
  • Establish a $30 billion fund so states and cities can buy foreclosed properties
  • Expand the Mortgage Revenue Bond Program (provides below market interest rates for first-time home buyers) by $10 billion

Thanks so much. I’ve heard a number of people call this, appropriately, “cost-shifting”. That means one group of people (those of us who are careful to buy what we can afford) are going to take

Capitalism and open market disciplines cannot support a class of people

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