This is the Day that members of the House of Representatives in the US failed their country and the rest of the world. They are now as much to blame for the outcome of the problems previously created on Wall Street, and before then by everyone who borrowed for the present beyond their means, hoping for a longer term improvement in their financial position to more than balance the books. It is possible to label them as true democrats for paying attention to the overwhelming views of their constituents. It is also possible to call them political cowards who failed to it act in the best interests of the constituents from fear of losing their own jobs in six week's time while putting in peril those of their constituents. Ford has announced a four day week in the UK
At first sight more of the blame can be laid upon Republican Members who failed to meet the commitment of their leadership that approximately half would vote in favour of the Bill. It is important to understand that the Leadership of both Parties, including the Presidential candidates agreed that whatever their personal political viewpoints and political position in the forthcoming national elections a Bill had to be agreed to steady the market and protect individual investors and savers, those with pension funds, those who had borrowed money for their homes. The argument is that if the lack of confidence remains, people we move out of holding shares in banks and other companies, into gold and other commodities, raising their prices with gold forecast to raise to $2000 dollars an ounce for example. This will make it more and more difficult for financial institutions Banks and Building Societies to loan money and in the UK mortgages fell by 95% last month. The consequence of this will be a loss of jobs and with the loss of jobs their will be an increasing failure of borrowers to repay loans. There will be less payment to government through taxes for services and increased pressure on socials security and other payments. The consequence of this is long term shrink economy, increasing unemployment, inability to improve and develop public services and greater dependence on financial and other benefits, and the implications of this is a rapid change in the relationship between Britain and other countries and increased dominance of China, resurgence of Russia, continued wealth accumulation of Arab Muslim countries and with only the Indian economy with whom we have relationships continuing to grow.
Many republicans are genuine in their belief that the success of American system is dependent upon the minimum of state intervention, It is also true that Wall Street, in the sense of the financial institutions contribute to political parties to gain protection from controlling legislation and inhibitors on the acquisition of personal and corporate wealth. It is one of less attractive aspects of the American Way of life that you can buy yourself into power and also buy yourself out of trouble. Republicans and Democrats alike were also responding to the feeling of the public that why should taxed be sued to bail out the fattest cats of them all outside of the mobland. As one Republican out it if a store on main street goes bust because of bad management decisions, they do not expect a government hand out, so why should the managers of the financial institutions.
The Democrats realised that they had everything to gain in the forthcoming elections if they put the blame for what had happened on the Republicans and therefore although they had a majority in the House they insisted on delivering only half. The record of the Democrats in relation to the failure of the big two Mortgage lending firms in the USA needs to be taken into consideration in relation to their defence of the bodies in the face of Republican criticism about the high risk way they were being run and the extent to which there were links between the firms and the funding of the Obama and Democratic campaign. No one is whiter than grey
This is what I think happened when it was evident early on that the vote could not be carried on Tuesday or if held over on Thursday when the House reassembled after two days without official business because of a Jewish religious event. The vote went ahead in the knowledge it would be lost and the markets would plunge around the world bring home the serious of the situation. This would give it for people to realise by opposing the package they would cut their own noses to save their face. The Democrats not only appeared to have made not last minute effort to persuade their 90 members from voting against, including several chairs of committee, but the Speaker, a Democratic nominee spoke just before the vote and instead of calling upon everyone to rally round in the national interest launched such an attack on the Republican administration that if I was a Republican in support of the measure I may well have changed my mind caught up in the emotion of such a blatant partisan speech. For Democrats to then to accuse the Republicans of having thin skin is hypocritical in what was an irresponsible speech from the Speaker unless it was planned as part of the deal to eventually sell the deal to her Democrats in the country that they had said where the blame was before bailing out the Republicans, in just the same way that the Republicans can show they voted against when first called upon and that they only voted differently when it was clear that not to do so would damage everyone and the future standing of the USA in the rest of the world
If a new measure is agreed early on Thursday morning there will be seen to be honour all round in biting the bullet and they can get on with slanging each other in the national elections. There is honour all round and this will bring the markets back up and restore confidence in the USA and around the world. However this will only help to prevent meltdown it will not resolve the problems which governments face with their economies. Financial assistance in terms of cash will need to be pumped into the system in order to make money available for new loans especially house buying loans. People will need to feel more confident about their ability to pay off loans and a reduction in interests will be required but without a turn to the borrowing more than you can afford to pay. One problem has been the amount of fund which were made available in the UK to buy property to rent out. Traditionally the policy would be able demonstrate that the income in would be greater than the interest being paid on the money but then with house prices rocketing the approach was to not to worry about income as any loss between payments going out and in would be offset by the increased value in the property. However this meant those borrowing in this way had to have the funds to meet any shortfalls when the property was not rented out or when expenditure on the property was required and to be confident of getting the money back when the sold and that the property could be sold. For this reason mortgage firms were offering loans of more than 100% sometimes as much as 125% where previously the lender would required an income of around 125% of the loan provide, the opposite situation that developed. Those lending the money were on bonuses for their business created on which greater profits were being booked although this as all illusory on the debts being repaid in full with the interest, and not defaulted.
Whatever the short term solutions adopted the crisis will impact on other aspects of government policy because the extent of tax payer's money being used in this this way will mean a limit on tax cutting and a limit on knew public expenditure. This will make it difficult for political parties on both sides of the Atlantic to offer tax cuts and new expenditure proposals as a means of winning over voters and taking power. This was the policy of Senator Obama who promises tax cuts for all and an effective national health service.
Here the Conservative party at its conference has been more cautious offering a freeze on local public taxes by saying that if local authorities limit their increases in budgets for two years to two and half percent they will meet the costs of this out of reductions in Government advertising and publicity budgets and by reducing the use of Management Consultants. Given that this situation is two years away the intention is to put pressure on the British Government to concentrate on keep new taxes down and achieving savings which do not impact on people in general in a damaging long turn way. This is a difficult balance to achieve because it is difficult to making government savings without having an effect on jobs and wages reduce dependency on management consultants and they will have to shed jobs to reflect the loss of business or accept reductions in profits and wages. Similarly cutting back on government sponsored building projects has its effects on the already depressed building industry. Watch this space
It was to have been a day of more than good intentions when I tackled my in tray but it was past midday and all I had done was to book in my 88000 mile travelled nine year old vehicle for its annual service and MOT. "I will send a cheque to the car insurance broker and sort out two queries on my credit card account of double payments before paying the bill and that will be enough for the day unless I find something as urgent. I have to do this before shaving and the rest and putting on a suit and finding my Durham cricket tie to attend the welcome home trophy presentation celebration the ground around 5pm which means setting off not later than 3.30 to get a parking place at the ground and opportunity see some old friends if I have any."
One reason for the inactivity is that I wanted to finish writing after watching the late night film Untouchable. I needed some games against the computer after getting up earlier than the body indicated in order to put the wheelie bun outside the back garage door for emptying alone with the environmental box of newspapers, cans and bottles. My inclination is to work on My Space sorting friends into categories, adding to match the same number as Blogs completed, finding out who has left either because of what I have said or their own reasons. This is slow because I get interested in the sites and their music and occasionally their writing. Requests to be added to Friend list of other is over 10 to 1 music and finding someone calling who inhabits the same dimensions is rare, but it happened to day and makes my day. Plus two others from this morning's examination there are three replacements to the provisional 101 list already. I wrote a cheque to my insurance broker and then hesitated sending.
I did this on learning that the nominated insurance company, one who I have been with for a number of years was part of the Belgium Banking House, Fortis had to be rescued by the French and Belgium governments. My car has done 88000 miles and it would be good to reach 101 thousand miles. I wonder how many miles I have motored since my first car as an eighteen year old, a Ford, then when I became a child care officer a Mini Estate and a Triumph Herald with an open top. Something like 40000 miles in those three years. Then a Vauxhall which was something of a disaster. Did the Datsun estate come before or after the Ford Transit? The pride in every sense was the gold executive what's you em call it vehicle with the air conditioning and what did I have before that? And what did I have after that and my present vehicle. I will have to create a list and other information as part of the project in in time.
Talking of 101 I came across a Friend who is a mental health counsellor who and 101 responses to a challenging Blog, which included her responses to the comments of others. I therefore decided to add comment 102 as follows. "
We are all clones of human beingness and everything is circular and connected. You cannot understand yourself or anyone else without first grasping the infinite nature of time and space. Hegel developed the concept of the dialectic where the juxtaposition of extremes produces the equilibrium through which each individual and the universe is able to evolve. The sub atomic particle smasher in Switzerland is a circular construction. No one is original or unique, in any meaningful sense, but repetitions, continuations and extensions and even creatives who sometimes make jumps which advance our knowledge and understanding or produce artistic perfection are themselves products of collective ancestry. Blessed are those who are able to heal the fractured mind and body."
I then set off for Durham having put on a suit and my Durham club tie. There was a reasonable number of spectators who had travelled from all over the county and I was pleased to se former Chairman Don Robson present with his family. There was a delay while Steve Harmison arrived and Captain dale Blenkenstein was relocated having been present and then disappeared. There were lots of media present and the golden trophy was put on display along with that awarded for the second team who also won their four day league competition. There was also a couple, three to be precise speeches, with one from the present Chairman and one from Geoff Cook in the form of an interview with reference to Don Robson who brought a prolonged round of applause followed by one from the captain who touched on the question of captaincy which suggested he was after a new contract. The event was a warm for the club dinner which was held in Newcastle, a Black tie affair at a major hotel where people could wine and dine and stay on overnight if they wished. It was a good end to the what had become a disappointing one having got so near to winning two other trophies.
Later in the evening I watch an awful film called Mob War released in 1989 in which a public relations man is hired against the advice of his wife and an investigative journalist friend by am ambitious Mobster. The problem is that Mobster is about to go it alone alienating the God Father and others and finds himself in the firing line, in part because of becoming high profile with TV interviews and public good works donations. The TV journalist is murdered when he causes too much trouble and the public relations man's wife is kidnapped to persuade him to continue working after he decided to pull try and pull out. This leads him to fighting for his own life and that of his wife and turning for help to Godfather and having to join the mob in gratitude. A sound warning for politicians and others who think they can benefit from Mob money without having to the price.
At first sight more of the blame can be laid upon Republican Members who failed to meet the commitment of their leadership that approximately half would vote in favour of the Bill. It is important to understand that the Leadership of both Parties, including the Presidential candidates agreed that whatever their personal political viewpoints and political position in the forthcoming national elections a Bill had to be agreed to steady the market and protect individual investors and savers, those with pension funds, those who had borrowed money for their homes. The argument is that if the lack of confidence remains, people we move out of holding shares in banks and other companies, into gold and other commodities, raising their prices with gold forecast to raise to $2000 dollars an ounce for example. This will make it more and more difficult for financial institutions Banks and Building Societies to loan money and in the UK mortgages fell by 95% last month. The consequence of this will be a loss of jobs and with the loss of jobs their will be an increasing failure of borrowers to repay loans. There will be less payment to government through taxes for services and increased pressure on socials security and other payments. The consequence of this is long term shrink economy, increasing unemployment, inability to improve and develop public services and greater dependence on financial and other benefits, and the implications of this is a rapid change in the relationship between Britain and other countries and increased dominance of China, resurgence of Russia, continued wealth accumulation of Arab Muslim countries and with only the Indian economy with whom we have relationships continuing to grow.
Many republicans are genuine in their belief that the success of American system is dependent upon the minimum of state intervention, It is also true that Wall Street, in the sense of the financial institutions contribute to political parties to gain protection from controlling legislation and inhibitors on the acquisition of personal and corporate wealth. It is one of less attractive aspects of the American Way of life that you can buy yourself into power and also buy yourself out of trouble. Republicans and Democrats alike were also responding to the feeling of the public that why should taxed be sued to bail out the fattest cats of them all outside of the mobland. As one Republican out it if a store on main street goes bust because of bad management decisions, they do not expect a government hand out, so why should the managers of the financial institutions.
The Democrats realised that they had everything to gain in the forthcoming elections if they put the blame for what had happened on the Republicans and therefore although they had a majority in the House they insisted on delivering only half. The record of the Democrats in relation to the failure of the big two Mortgage lending firms in the USA needs to be taken into consideration in relation to their defence of the bodies in the face of Republican criticism about the high risk way they were being run and the extent to which there were links between the firms and the funding of the Obama and Democratic campaign. No one is whiter than grey
This is what I think happened when it was evident early on that the vote could not be carried on Tuesday or if held over on Thursday when the House reassembled after two days without official business because of a Jewish religious event. The vote went ahead in the knowledge it would be lost and the markets would plunge around the world bring home the serious of the situation. This would give it for people to realise by opposing the package they would cut their own noses to save their face. The Democrats not only appeared to have made not last minute effort to persuade their 90 members from voting against, including several chairs of committee, but the Speaker, a Democratic nominee spoke just before the vote and instead of calling upon everyone to rally round in the national interest launched such an attack on the Republican administration that if I was a Republican in support of the measure I may well have changed my mind caught up in the emotion of such a blatant partisan speech. For Democrats to then to accuse the Republicans of having thin skin is hypocritical in what was an irresponsible speech from the Speaker unless it was planned as part of the deal to eventually sell the deal to her Democrats in the country that they had said where the blame was before bailing out the Republicans, in just the same way that the Republicans can show they voted against when first called upon and that they only voted differently when it was clear that not to do so would damage everyone and the future standing of the USA in the rest of the world
If a new measure is agreed early on Thursday morning there will be seen to be honour all round in biting the bullet and they can get on with slanging each other in the national elections. There is honour all round and this will bring the markets back up and restore confidence in the USA and around the world. However this will only help to prevent meltdown it will not resolve the problems which governments face with their economies. Financial assistance in terms of cash will need to be pumped into the system in order to make money available for new loans especially house buying loans. People will need to feel more confident about their ability to pay off loans and a reduction in interests will be required but without a turn to the borrowing more than you can afford to pay. One problem has been the amount of fund which were made available in the UK to buy property to rent out. Traditionally the policy would be able demonstrate that the income in would be greater than the interest being paid on the money but then with house prices rocketing the approach was to not to worry about income as any loss between payments going out and in would be offset by the increased value in the property. However this meant those borrowing in this way had to have the funds to meet any shortfalls when the property was not rented out or when expenditure on the property was required and to be confident of getting the money back when the sold and that the property could be sold. For this reason mortgage firms were offering loans of more than 100% sometimes as much as 125% where previously the lender would required an income of around 125% of the loan provide, the opposite situation that developed. Those lending the money were on bonuses for their business created on which greater profits were being booked although this as all illusory on the debts being repaid in full with the interest, and not defaulted.
Whatever the short term solutions adopted the crisis will impact on other aspects of government policy because the extent of tax payer's money being used in this this way will mean a limit on tax cutting and a limit on knew public expenditure. This will make it difficult for political parties on both sides of the Atlantic to offer tax cuts and new expenditure proposals as a means of winning over voters and taking power. This was the policy of Senator Obama who promises tax cuts for all and an effective national health service.
Here the Conservative party at its conference has been more cautious offering a freeze on local public taxes by saying that if local authorities limit their increases in budgets for two years to two and half percent they will meet the costs of this out of reductions in Government advertising and publicity budgets and by reducing the use of Management Consultants. Given that this situation is two years away the intention is to put pressure on the British Government to concentrate on keep new taxes down and achieving savings which do not impact on people in general in a damaging long turn way. This is a difficult balance to achieve because it is difficult to making government savings without having an effect on jobs and wages reduce dependency on management consultants and they will have to shed jobs to reflect the loss of business or accept reductions in profits and wages. Similarly cutting back on government sponsored building projects has its effects on the already depressed building industry. Watch this space
It was to have been a day of more than good intentions when I tackled my in tray but it was past midday and all I had done was to book in my 88000 mile travelled nine year old vehicle for its annual service and MOT. "I will send a cheque to the car insurance broker and sort out two queries on my credit card account of double payments before paying the bill and that will be enough for the day unless I find something as urgent. I have to do this before shaving and the rest and putting on a suit and finding my Durham cricket tie to attend the welcome home trophy presentation celebration the ground around 5pm which means setting off not later than 3.30 to get a parking place at the ground and opportunity see some old friends if I have any."
One reason for the inactivity is that I wanted to finish writing after watching the late night film Untouchable. I needed some games against the computer after getting up earlier than the body indicated in order to put the wheelie bun outside the back garage door for emptying alone with the environmental box of newspapers, cans and bottles. My inclination is to work on My Space sorting friends into categories, adding to match the same number as Blogs completed, finding out who has left either because of what I have said or their own reasons. This is slow because I get interested in the sites and their music and occasionally their writing. Requests to be added to Friend list of other is over 10 to 1 music and finding someone calling who inhabits the same dimensions is rare, but it happened to day and makes my day. Plus two others from this morning's examination there are three replacements to the provisional 101 list already. I wrote a cheque to my insurance broker and then hesitated sending.
I did this on learning that the nominated insurance company, one who I have been with for a number of years was part of the Belgium Banking House, Fortis had to be rescued by the French and Belgium governments. My car has done 88000 miles and it would be good to reach 101 thousand miles. I wonder how many miles I have motored since my first car as an eighteen year old, a Ford, then when I became a child care officer a Mini Estate and a Triumph Herald with an open top. Something like 40000 miles in those three years. Then a Vauxhall which was something of a disaster. Did the Datsun estate come before or after the Ford Transit? The pride in every sense was the gold executive what's you em call it vehicle with the air conditioning and what did I have before that? And what did I have after that and my present vehicle. I will have to create a list and other information as part of the project in in time.
Talking of 101 I came across a Friend who is a mental health counsellor who and 101 responses to a challenging Blog, which included her responses to the comments of others. I therefore decided to add comment 102 as follows. "
We are all clones of human beingness and everything is circular and connected. You cannot understand yourself or anyone else without first grasping the infinite nature of time and space. Hegel developed the concept of the dialectic where the juxtaposition of extremes produces the equilibrium through which each individual and the universe is able to evolve. The sub atomic particle smasher in Switzerland is a circular construction. No one is original or unique, in any meaningful sense, but repetitions, continuations and extensions and even creatives who sometimes make jumps which advance our knowledge and understanding or produce artistic perfection are themselves products of collective ancestry. Blessed are those who are able to heal the fractured mind and body."
I then set off for Durham having put on a suit and my Durham club tie. There was a reasonable number of spectators who had travelled from all over the county and I was pleased to se former Chairman Don Robson present with his family. There was a delay while Steve Harmison arrived and Captain dale Blenkenstein was relocated having been present and then disappeared. There were lots of media present and the golden trophy was put on display along with that awarded for the second team who also won their four day league competition. There was also a couple, three to be precise speeches, with one from the present Chairman and one from Geoff Cook in the form of an interview with reference to Don Robson who brought a prolonged round of applause followed by one from the captain who touched on the question of captaincy which suggested he was after a new contract. The event was a warm for the club dinner which was held in Newcastle, a Black tie affair at a major hotel where people could wine and dine and stay on overnight if they wished. It was a good end to the what had become a disappointing one having got so near to winning two other trophies.
Later in the evening I watch an awful film called Mob War released in 1989 in which a public relations man is hired against the advice of his wife and an investigative journalist friend by am ambitious Mobster. The problem is that Mobster is about to go it alone alienating the God Father and others and finds himself in the firing line, in part because of becoming high profile with TV interviews and public good works donations. The TV journalist is murdered when he causes too much trouble and the public relations man's wife is kidnapped to persuade him to continue working after he decided to pull try and pull out. This leads him to fighting for his own life and that of his wife and turning for help to Godfather and having to join the mob in gratitude. A sound warning for politicians and others who think they can benefit from Mob money without having to the price.
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