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‘Bubble’ lies aid second term


 

 

By JIM STREET

Ed & Pub

When told often enough and with enough conviction, lies can become truth in the minds of many. It is a ploy used by some to get their way in spite of reasoned opposition.

It may have been another Big Lie or it might just have been very short memory but Federal Reserve Chairman Ben Bernanke was approved for a second term last week in spite of his support of policies that fed the housing bubble which, in turn, was a major cause – if not the major cause – of the current economic downturn.

This was on the same day a $1.9 trillion increase in the national debt was approved.

It is all part of an idiotic idea that the way out of a recession is to spend more and keep interest rates low to encourage more people to buy what they can’t afford.

 

OPINION

 

When the basement is flooded, you don’t pump in more water and if you are deep in debt, you don’t borrow more money. But that was the muddled thinking behind all the “stimulus” ideas.  

The new lie is that the main cause of the downtown was not the housing bubble but “greed on Wall Street” and not enough government oversight of the economy.

“Greed” can be good if it causes people to work harder and invest their earnings in businesses that provide jobs for the rest of us. That is what drives the markets, including Wall Street.

The government's bailout of financial institutions deemed "too big to fail" has created a risk that the US could face a worse fiscal meltdown in the future, an independent watchdog assigned to review the program told Congress this week. 

The Troubled Assets Relief Program, known as TARP, has not addressed the problems that led to the last crisis and in some case those problems have festered and are a bigger threat than before, Treasury Department Special Inspector General Neil Barofsky wrote.

"Even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car," he wrote.

"The market mentality now seems fixed that the US government will continue to step in and bail out giant financial institutions," said Sen. Susan Collins of Maine, ranking member of the Senate Homeland Security and Governmental Affairs Committee.

"In spite of objections that the Fed helped fuel the housing bubble with its loose-dollar policies, and the fact that those policies continue to date, the Senate has voted to reconfirm one of the architects of the financial crisis that brought the US economy to its knees," Americans for Limited Government President Bill Wilson said.

Federal policy dictated low rates with the mistaken belief that they would help more people become homeowners, causing too many to “buy” homes they could not afford and driving home prices ever skyward.

The bubble burst, just as any would when it contains more air than its surface can contain. The stock market bubble also burst, largely as a result of the housing crisis. Many of the “sub-prime” mortgages that could not support themselves were “bundled” and sold as a kind-of insurance to holders of the notes.

Left to their own devices, both markets would have corrected and returned to normal and they are trying to do just that right now if the government will let them.

"The SIGTARP's report is just another reminder of how Congress and the administration have ignored the role that politics and government played in causing the housing crisis and the economic collapse while pursuing other regulatory reforms will not fix the underlying problem," said US Rep. Darrell Issa of California, the ranking member on the House Oversight and Government Reform Committee.

"The government has stepped in where the private players have gone away," Barofsky said. "If we take government resources and replace that market without addressing the serious [underlying] concerns, there really is a risk of" artificially pushing up home prices in the coming years.

The report warned that these supports mean the government "has done more than simply support the mortgage market. In many ways it has become the mortgage market with the taxpayer shouldering the risk that had once been borne by the private investor."

Barofsky's report echoed concerns raised by housing experts in recent months, as home sales and prices rebounded.

They warn that the primary reason for the turnaround last year has been billions of dollars in federal spending to lower mortgage rates and prop up demand.

Once that spigot of cash is turned off, they caution, the market will be vulnerable to a dramatic turn for the worse.

Daniel Alpert, managing partner of investment bank Westwood Capital, wrote in a report that national home prices are bound to fall 8 to 10 percent below the lows of last spring.

"The lion's share of the remaining decline will occur in markets that saw sizable bubbles but have not yet retrenched," he wrote.

Will we ever learn?

 

 

Meditations by Brother J

 

Gambling aids sinners

It was played in ancient times and, in 2006, generated more than $90 billion in gross reve-nues in the United States.

It includes slot machines, roulette wheels, dice tables, cards and the lottery.

Then we move on to animals like horses, dogs and even chickens. Another big betting avenue is any sporting events like football, soccer, basketball and the list goes on.

The American Indians no longer have the buffalo to survive on so now many depend on casinos.

There are more than 2 million known compulsive-addicted gamblers, another estimated 3 million and more than 15 million at risk today.

Gambling leads to increased political corruption, more organized crime, higher crime rates, more drug and alcohol abuse and even suicides.

Loss of jobs and money, family violence, higher divorce rates and demoralized children go along with it.

The question is what does the Bible say about gambling? First, God made and designed us for work (Genesis 2:4 and 5, Exodus 20:9.)

God will bless the right kind of work if it is done honestly (Deuteronomy 28:12.

How we obtain our money is going to be judged and He does not approve of money made from prostitution, dishonesty or the making of idols or false gods (1 Corinthians 3:13, Proverbs 13:11.)

Gambling feeds the sin of lust and it causes us to try to get something for nothing and not be content with what God has provided (James 4:1 to 3, 2 Peter 1:4.)

See you in Church next Sunday.

Brother J

 

 

The Stargazer

 

Mars closest this trip

If you've been out in the early evening lately, perhaps you've noticed Jupiter, which has been dominating the evening sky the past several months, now sinking closer to the setting Sun in the west.

And if you turned around and looked behind you, perhaps you've also noticed another “star” rising after dark and dominating the sky in the east. That "star" is the planet Mars.

Traveling nearly 67,000 miles per hour, Earth orbits the Sun once each year. Mars, the next planet out from the Sun, moves only 54,000 miles per hour, has further to travel and thus takes nearly two Earth-years to orbit the Sun.

Since we speed around the Sun more quickly, we regularly pass between Mars and the Sun about every two years.

When we do, Mars is on the opposite side of Earth from the Sun, which astronomers call opposition – and this is about to occur today, Jan. 29.

At opposition, Earth and Mars pass nearest each other, making Mars appear larger and brighter than usual.

So now and for the next few weeks, Mars outshines all the brightest stars except Sirius, which is now in the southeast in the early evening.

If Earth and Mars orbited the Sun in perfect circles, Mars would appear the same size and brightness at each opposition.

But since their orbits are elliptical, at some oppositions Earth and Mars pass nearer than at others. On average we pass within 48 million miles, rounding to the nearest million. 

But the distance can be as little as 34 million miles or as much as 64 million miles.

This time around, we're passing at 62 million miles so this is not one of Mars' more spectacular oppositions, although it will still be well worth noting.

Perhaps you recall the excitement in August 2003 when Mars passed less than 35 million miles and was extraordinarily bright – that was pretty spectacular.

All the planets further out from the Sun come to opposition regularly. The period between Jupiter's oppositions is about 13 months and for the more distant Saturn, Uranus and Neptune, just over a year.

At opposition, planets rise around sunset, are up all night and set around sunrise.

And since they are then at their largest and brightest, the few weeks before and after opposition are the best times for observing them.

By coincidence, on the night of Mars' upcoming opposition, it has a companion to escort it across the sky – the almost full Moon.

And then the first week of February, the Red Planet passes near the lovely Beehive star cluster. They will be in the same binocular field of view several nights in a row – a sight you won't want to miss.


Sky Calendar.

Saturday, Jan. 30, the full Moon is called Old Moon and Moon After Yule.

Tuesday, Feb. 2, commonly known as Groundhog Day, today is also Candlemas, a cross-quarter day celebrating the middle of winter.

Thursday morning, Feb. 4, gibbous Moon is below Virgo's brightest star Spica high in the south.

Friday, Feb. 5, the Moon is at third quarter.

Sunday, Feb. 7, the crescent Moon is to the upper right of Scorpius' brightest star Antares low in the southeast.

Thursday morning, Feb. 11, the crescent Moon is to the upper right of Mercury very low in the east southeast at dawn and to the planet's lower left the next morning.


Naked-eye Planets.

The Sun, Moon and planets rise in the east and set in the west due to Earth's west-to-east rotation on its axis.

As evening twilight ends, Jupiter is setting in the west as Mars is rising in the east.

At the first light of dawn, Mercury is very low in the southeast, Saturn is in the southwest and Mars is in the west.

Stargazer appears every other week, space permitting. Paul Derrick is an amateur astronomer who lives in Waco. Contact him at 918 N. 30th, Waco, 76707, (254) 753-6920 or paulderrickwaco@aol.com. See the Stargazer Web site at www.stargazerpaul.com.

 

 

     Tumbleweed Smith : Texas Tales

 

The Texas Forts Trail

 

By TUMBLEWEED SMITH

As you travel along highways in central and west Texas, you’ve probably seen those blue and white signs with crossed sabers indicating you’re on the Texas Forts Trail.

It stretches from Jacksboro to Aspermont on the north to Eldorado and Mason on the south.

It’s a 650-mile loop containing eight historic military forts and one Spanish Presidio.

If you choose to drive it, plan to spend at least three days, preferably five.

Along the way, you’ll see monuments to the Texas pioneer spirit and learn about unique events like the goat cook-off in Brady or the world’s largest amateur rodeo in Stamford.

You’ll see the stone chimneys at Fort Phantom Hill near Abilene, the only things left standing after a fire.

Just out of Menard is Fort McKavett, which had more than 35 buildings in the 1870s.

Fort Richardson at Jacksboro was the biggest military installation in the country in 1874.

San Angelo’s Fort Concho is called the best-preserved western fort in the United States.

Other forts on the trail are in Mason, Bronte, Albany and Graham.

A Spanish Presidio south of Menard, built to protect a mission, dates back to 1757 and was the first place that Europeans in Texas came into conflict with Comanche Indians.

The Comanche were fierce warriors and forced the Spanish to withdraw from Texas, leading to the establishment of a new line of defense along the Rio Grande.

Margaret Hoostra of Abilene is regional coordinator of the Forts Trail and says it is one of a series of historic trails set up back in the late ‘60s when San Antonio was gearing up for Hemisfair, an event which drew large numbers of crowds to the Alamo City.

“Governor John Connally wanted to give people coming to San Antonio the opportunity to visit other parts of Texas,” Margaret said. “He got with the highway department and developed a series of ten trails around the state, Forts, Brazos, Forest, Lakes, Hill Country, Independence, Mountain, Pecos, Plains and Tropical.”

The trails were highly successful for a while, then nothing happened for several years until George W. Bush became governor.

Margaret said he was interested in preservation and rural economic development.

“He was concerned that too many historic theaters, court houses and hotels were being demolished,” she said. “He thought those places define who we are.

“He pulled together various agencies to consider the situation,” Margaret said. “The Texas Historical Commission took a look at those old driving trails and made them into heritage tourism regions.

“The Forts Trail was the pilot project,” she said. “In the late ‘90s, we proved to be a very successful program. We increased tourism and awareness of history.

“Now, all the trails are up and active,” Margaret said. “Each one of us is an independent, non-profit organization.

“We get an annual grant from the Texas Historical Commission and our job is to promote our part of Texas, including the cities that don’t have a fort,” she said. “We help them tell their stories. We don’t mix mortar but we promote and encourage preservation of the forts so we don’t lose them.

“We make people aware of the forts, their importance and relevance and encourage visitation to them,” Margaret said. “Every fort has a personality and a unique story to tell.”