I want, you want, we all want

Ask a child if they would like candy for lunch or to play MineCraft instead of doing homework. Does their response reflect good judgement or self interest?

What does it prove by telling us what people want? Who doesn’t support more especially “more” paid for by someone else?

But even that isn’t the real point.

What percentage of Americans understand the costs and consequences of what they want?

I’m betting 99.9% of Americans have never read the Medicare or Social Security trustees reports. It is fair to say 99.99% of Americans don’t understand that the absolute root cause of the Great Recession was not banks, but government policies pushing home ownership and subprime lending.

It’s reasonable to say 99% of Americans don’t understand Social Security funding or what the data show about minimum wage workers or the consequences of simply raising the MW to $15.00.

What percentage of Americans think the problem with health care costs is premiums?

How many Americans have thought through the long term consequences of legalizing, if not marketing marijuana?

Does tuition free college solve the fundamental problems of a higher education or the lack of preparedness of many students?


  1. yes they want it all. But they don’t want to pay for it. If we have all of that free; we may as well just get a paycheck from the government of what we CAN have, everything else will be TAXES.
    Someone has to pay for it all. Medicare for all….What % will that take of taxes. Free college.
    well, if you don’t pay any of the teachers, janitors, etc. then maybe it can be free. otherwise there goes the taxes again. I saw a breakdown of what it would take in taxes to do that all; we would all be on the government’s dole at that point. There would be Nothing left of any paycheck.


  2. “It is fair to say 99.99% of Americans don’t understand that the absolute root cause of the Great Recession was not banks, but government policies pushing home ownership and subprime lending.”

    RD-You are only half right about the Great Recession. It was the investment banks and their bundling of subprime mortgages as AAA securities, credit default swaps and a bunch of other Derivatives Contracts that would of failed. The government should of never bailed out anyone. That is what bankruptcy laws are for. If anyone thinks the new Dodd / Frank regulations are going to help stop the next financial crisis, they are smoking some good marijuana.

    Under Dodd / Frank deposit are listed as assets of the bank and depositors are list as unsecured creditors.

    Propping Up the Derivatives Scheme

    Dodd-Frank states in its preamble that it will “protect the American taxpayer by ending bailouts.” But it does this under Title II by imposing the losses of insolvent financial companies on their common and preferred stockholders, debtholders, and other unsecured creditors. That includes depositors, the largest class of unsecured creditor of any bank.

    Title II is aimed at “ensuring that payout to claimants is at least as much as the claimants would have received under bankruptcy liquidation.” But here’s the catch: under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured.

    The over-the-counter (OTC) derivative market (the largest market for derivatives) is made up of banks and other highly sophisticated players such as hedge funds. OTC derivatives are the bets of these financial players against each other. Derivative claims are considered “secured” because collateral is posted by the parties.

    For some inexplicable reason, the hard-earned money you deposit in the bank is not considered “security” or “collateral.” It is just a loan to the bank, and you must stand in line along with the other creditors in hopes of getting it back. State and local governments must also stand in line, although their deposits are considered “secured,” since they remain junior to the derivative claims with “super-priority.”

    Turning Bankruptcy on Its Head

    Under the old liquidation rules, an insolvent bank was actually “liquidated” – its assets were sold off to repay depositors and creditors. Under an “orderly resolution,” the accounts of depositors and creditors are emptied to keep the insolvent bank in business. The point of an “orderly resolution” is not to make depositors and creditors whole but to prevent another system-wide “disorderly resolution” of the sort that followed the collapse of Lehman Brothers in 2008. The concern is that pulling a few of the dominoes from the fragile edifice that is our derivatives-laden global banking system will collapse the entire scheme. The sufferings of depositors and investors are just the sacrifices to be borne to maintain this highly lucrative edifice.

    With over 700 Trillion dollars in Derivatives worldwide does anyone think governments will be able to stop the next crash? Welcome to the Great Depression sometime soon 2020 to 2035.


      1. RD -What about the 700 trillion dollars of Derivatives, worldwide that are just bets in our financial markets that are not backed by anything.? The gambling continues and when this ponzi scheme implodes, no one will be safe from the depression that will follow.


  3. That is why “we” have the “entitled” mentality!
    Sure, Free is great; there is always a consequence — a price to pay for everything. There is no free lunch. Freedom requires responsibility in a society.

    I just started reading your blog and am terribly impressed with your daughters! What a great family!


  4. Sure I want it all for free and if you ask me in a poll, I will agree to wanting it all. But I am a realist. I can’t get it all from the government without having to pay higher taxes (although presently we are a afraid to pay our nation’s bills). I know that I can’t have low taxes and get everything I want. They never seem to publish the next logical question, if they even ask it, how much are you willing to pay extra in taxes for that “free stuff”?

    It comes back to “needs” and “wants”. I want it all, but I get what I need. Then if there is money left over, I see how badly I want something.

    Liked by 1 person

    1. I don’t recall that. OFEO was the regulator for Fannie and Freddie. Franklin Raines was the head of Fannie at that time. He was in Clintons OMB. The head of OFEO who had been appointed by Clinton had lunch with Raines one day and Raines was very obnoxious with him. He figured the guy would be gone before too long so he didn’t care what he had to say.
      Democrats in the Senate refused to confirm Bush’s nominee to head OFEO so the Clinton guy was still there. He’s the one who launched the investigation into Fannie’s accounting. It was great. One Clinton guy bringing down another Clinton guy. Wonder what kind of Shenanigans were going on in Clinton’s OMB with folks like Raines there.


  5. What you list as the cause of the Great Recession is absolutely correct. It was NOT the fault of Fannie Mae and Freddie Mac. It WAS the fault of the US Congress.

    I was consulting at Fannie Mae for a few years prior to the recession. I was building analytics to identify the banks and mortgage companies that were holding back on goal rich loans until later in the year so they could get a better deal. As part of that project I got the requirements set by Congress every year so I could adjust the metrics to reflect performance. In the 3 years I was there the requirement went for 25% of all loans purchased to 50% !!! Required by Congress and if you didn’t meet the target you had to answer to Barney Frank and Chris Dodd in January of the following year. Interesting how the 2 of them very quietly decided to retire before any of that became public knowledge.


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