Big Slap in the Face for Free Markets

Big Slap in the Face for Free Markets

I'm looking at this economic situation from a different perspective.    I have intimate exposure to the real estate, stock, and mortgage markets through the Fairway Preserve case.     What I see is a breakdown in morals.

1) The condo/real estate market was artificially inflated.   Everyone was propagandized into believing that real estate has no downside.   
2) Mortgages were made available without regard to the ability to pay
3) CYA replaced accountability    (This is the key element - as there is no one who takes responsibility, not the lender, not the borrower, not the financial advisor, not me, not you, and not the mailman.

There is no amount of money that will cure the problem until there is a recognition that rules and common sense have to be a criterion.     Just yesterday in the height to the hullabaloo a client sold her home and produced a contract wherein the purchaser - a Nigerian immigrant - had a mortgage contingency of 99.6 % of the purchase price.   Purchase price $350,000.00 mortgage $349,000.00.    Naturally I read the newspapers and know that it is impossible to get a mortgage with good credit and 20% down.   Right!   The Nigerian got the loan.    What do you want to bet that he will default on the loan in the first six months!  

Who bears the responsibility!    Look in the mirror.   Our elective representatives are going to toss a trillion dollars at the problem so that the financial institutions can engage incompetents to ruin their businesses and reap zillion dollar compensation for cultivating and nurturing the culture where the Chief Operation Officer of the company does not have clue as to the operation of the business and gets paid for reducing a billion dollar going enterprise to a stagnant million dollar operation on the verge of Bankruptcy.    We are going to affirm the judgment of the elective representations in bankrupting the USA by re-electing them.

As they say = the ' coupe' de grace is that we will not learn from the disaster until it is too late.    Unfortunately I have no solutions.   I am as much in the dark as every other idiot.    I do not see a need to 'jump' at a solution for solution sake.     If the investors panic, they will lose their money - so be it!  I frankly do not care if the presidential candidates are hurt politically by the crisis or not.    All I know is one of the candidates thought it is more important to campaign for the office of president than to do the job that he was elected to do.    That is exactly the attitude that is one of the 'root causes' of this problem.  

The 'high holidays' are on the horizon.   This may be the year to really and honestly pray for the deliverance of our beloved country.   Our chickens are coming home to roast.

You can't possibly have hidden yourself from the news of the $700-billion planned bailout that's working through Congress this week. And I won't mince words — I consider it a big slap in the face for the free market system.

Henry Paulson repeated over and over again exactly how agitated, disgusted, annoyed, infuriated, angered, embarrassed, and irritated he felt about asking for this amount of money, or any money at all. Sounds sincere if you stop it right there.

But apparently those feelings weren't enough to reinvigorate his free-market spirit, abolish potential bailout plans, do away with unnecessary regulation and let those who deserve to suffer, suffer.

How Free Markets Are SUPPOSED to Work...

Availability of credit allows money to flow between savers and borrowers.

Resources and funds are allocated to various projects or investments during a boom phase.

Eventually borrowing becomes excessive and leads to mal-investment, thanks to the suppression of the real rate of interest by our illustrious Federal Reserve Banking system.

At this stage, adherence to free market theory would allow for an efficient cleansing period and a healthy recovery period. How? Irresponsible and unprofitable businesses fail. Bad debts get liquidated. Excess resources go on sale, flow into more stable ventures and pool together with more profitable resources controlled by healthy corporations or entities.

Sure, pain is felt by certain parties who can't keep things going. But the moving parts become more efficient and stronger. Healthier, more efficient businesses emerge.

As the Austrian School of economists says, the bigger the boom generated by manipulation of money and credit, the bigger the ultimate bust.

That's important, because thanks to the massive manufacturing and sale of derivatives, there has never been a boom supported to such a large degree by thin air. And since the laws of gravity haven't been outlawed yet, what goes up must come down.

I'm against the $85,000,000,000.00 bailout of AIG.

Makes sense to me.   The problem is that if something so sensible were to be done, the people who got us into the mess would lose control.   No more paying great sums of money for screwing up a company, no more creating jobs so relatives can mess up our lives like they did their own.   We would not need either Obama or McCain to lecture us on how they are going to make our lives better, nor Joe Biden to tell us how Roosevelt after the 1929 stock market crash immediately got on television to reassure us.  (Hoover was president - Television was quite limited.   It was only found on North Broadway at a laboratory called Columbia)   don’t confuse brain dead Biden with the facts!   He thinks he is running against Palin for Prom Queen.  

Hear as much of the 'debate' as I could stand.   God help us!   McCain is going to love us to death, and Obama kill us with one liners.   It is no wonder that the world is laughing at us.  However while the laugh they envy our lives - only the Hollywood types profess to want to live in another country

Building trust by improving governance

INTRODUCTION: TRUST AND ITS CONCEPT
Since trust emerges as one of the most significant elements upon which the legitimacy and sustainability of politico-administrative systems are built, trust has become a major worry for many leaders, scholars and public officials globally. Trust is highly important for government and good governance, but it seems to be declining around the world. People are losing their confidence in governments (Etzioni & Diprete 1979; Fukuyama 1995; Putnam 1995; 2000; 2002; Gambetta 1988; Barnes & Gill 2000; Cook 2001; Hardin 2002; 2004; 2006). Many think that the trend towards lack of trust in the government by the public is not just a national problem; it has become a global phenomenon.
Why is trust in government declining? There are many reasons. Some say that the people have changed through socioeconomic development and the social structure of our lives has changed so that people are more skeptical of government (Etzioni & Diprete 1979; Klingemann et al. 1995; Nye et al. 1997; Hardin 2004; 2006). Others say that the styles of politicians have changed and the underlying politico-administrative issues have also changed in ways that reduce confidence in government, confidence in institutions and confidence in many public organizations (Manin 1997; Hardin 2002; 2004; 2006). Symptoms of declining trust include declining voter turnout (Gray & Caul 2000; Suleiman 2005), youth disinterest in politics (Adsett 2003), decreasing levels of civil involvement (Saul 1995; Putnam 1995; 2000; 2002; UN 2008), and periods of poor economic performance (Blind 2006).
What is trust? While there are numerous definitions of trust, it generally refers to a personal attribute regarding a relationship of reliance, confidence, optimism of a good will, or confident expectation (it is a situational/relational concept). Trust can be summed up in the equation, Trust = f (x), where x refers to multiple variables (Kramer and Tyler 1996; Cook 2001). In other words, trust can be defined in several different ways, including along individual, organizational and institutional dimensions. In terms of organizations, trust can be a function of three major variables: embedded predisposition (a function of managerial philosophy and its structural manifestations); character (dis)similarity, which is affected by organizational actions and structure; and experiences of reciprocity, which are affected by the organizational context for reciprocity and mutuality (Kramer & Tyler 1996; Ostrom & Walker 2002; Kramer & Cook 2004). In sum, trust can be defined as the result of a combination of the characteristic similarity and positive relational experience. It can be positively influenced by increasing the perceived similarities and the number of positive exchanges. Adverse experience can result in a corresponding negative influence and lack of trust.
THE OBJECTS OF TRUST AND THE ROOTS OF MISTRUST
There are numerous objects of trust in government. For governments to gain trust they must basically govern and perform better; there must be more transparency, accountability, participation, responsibility and responsiveness. The major objects of trust include the government's integrity, the administration, the judiciary, the legislative body, the electoral process and the outcomes.
In deciding on trustworthiness in these areas there are some questions that can be asked (Seligman 1997; Sztommpka 1999; King 2000; Weber and Carter 2003; Hardin 2002; 2004; 2006). In the area of integrity, for example: is it corrupt or deceitful? Does the administration operate efficiently? How does it manage the bureaucracy? Is the judiciary fair, consistent and obedient to the rule of law? Is the legislative body representative and inclusive? Is the electoral process open, transparent and reasonable? Are the outcomes those which are best for the country? These questions about trustworthiness all reflect the characteristics of good governance (Barber 1983; Bianco 1994; Seligman 1997; Braithwaite & Levi 1998; Blind 2006).
The roots of mistrust can be found in various areas: citizens feel that politicians and public officials often abuse their powers in the interest of self-aggrandizement; citizens feel disconnected from government; government service delivery is perceived as inadequate or improper; government systems are poor or malfunctioning; a weakened global or national economy, such as we face very seriously around the world today; the effects of globalization and informatization, such as ICT development; resentment over political scandals and crises; the incompetence of bureaucrats and politicians; rule violation, honor violation, and many others (Nye et al. 1997; Hardin 2004).
HOW TO BUILD A LEVEL OF TRUST IN GOVERNMENT
How is trust in government built up? Building trust in government can be likened to a billiard game. The target ball cannot be hit directly; it is moved by hitting an intermediary ball first. In the same way public trust cannot be affected directly or in isolation. By targeting legality, integrity, efficiency, effectiveness, involvement, dependability, transparency and fairness, which are all part of good governance, improved public trust will eventually result. In other words, pubic trust is the pinnacle byproduct of foothill goals such as good governance agendas (Goodsell 2006). All of these attributes of good governance rely on public sector capacity, which is essential.

Building Trust Between Citizens and Their Government

Building Trust Between Citizens and Their Government

Following up on last week's blog posting regarding the study with the shocking findings that citizens don't trust their legislators, today's post is the first in a two part series on what politicians and citizens can do to improve the situation. Today I'm focusing on politicians. Tomorrow I'll focus on citizens.

So, without further ado -- three things politicians can do to move themselves up on the trust ladder.

1. Improve constituent communications: Time and time again I have advocates tell me "I wrote a letter to my Congressman about issue X and I got a form letter back about totally-unrelated issue Y." No wonder citizens feel that politicians aren't listening! However, rather than assuming politicians and their staff are sitting around eating bon-bons all day and sending random letters, let's look at the reasons behind why this happens. In fact, in most cases, what it boils down to is a resource problem. Did you know that since the advent of the Internet, constituent communications have at least quadrupled? Yes, you read that right. And yet the resources available to deal with those communications have remained virtually unchanged. Members of the House, for example, have the same number of staff as they had before the Internet. While Congress has certainly become more efficient in managing these communications, the panacea of "increase efficiency" can go only so far. At some point, it's time to get more people and systems in place to manage the problem. Although it would be wildly unpopular, members of Congress should use their own advocacy skills to make the case for additional funding, and then apply those funds to solving this urgent issue.
2. Be clear about why you're in Congress: Every elected official has his or her own reason for enduring the grinding 24/7 schedule and constant stream of abuse that, these days, is the hallmark of a Congressional career. 99.9% of the time it's not "because I like to be powerful." For the most part, it's because they want to achieve some specific policy goal or because they want to help their legislative district or state. Members of Congress need to be clear ? to themselves and to their constituents ? what their proactive agenda is, even in the midst of partisan bickering and infighting.
3. Stop adding fuel to the fire: Hopefully it goes without saying, but for heaven's sake politicians should please stop any unethical, shading or just plain disgusting dealings that make the whole institution look bad. Former Rep. Massa, I'm looking at you.

Tomorrow -- what can you do to make a difference?

We need honest government with integrity.

We need honest government with integrity.

“Good leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion”

Public confidence in the integrity of the Government is indispensable to faith in democracy; and when we lose faith in the system, we have lost faith in everything we fight and spend for.
As citizens of this democracy, you are the rulers and the ruled, the law-givers and the law-abiding, the beginning and the end.

Change is inevitable. Change for the better is a full-time job.

Action speaks louder than words.



Every age needs men who will redeem the time by living with a vision of the things that are to be.

Freedom is not an ideal; it is not even a protection, if it means nothing more than the freedom to stagnate.


Action speaks louder than words.

An Independent is someone who wants to take the politics out of politics, a person with principles.

"The benchmark of a civilized society is the quality of its justice"

Rebuilding Trust in Our Government (R)

Rebuilding Trust in Our Government (R)
One of Americas statesmen stated “government is not the solution to our problem; government is the problem.” His presidency ushered in an era of disdain for government and a widespread cynicism that government could be effective in addressing our challenges.
Today, as we confront a crisis that has shaken confidence in our financial system and economy, we have an opportunity to restore public trust and confidence in the legitimate role of government. Indeed, to effectively tackle our economic challenges and to implement the reforms we need in our healthcare, education, energy, and environmental policies, our government will need to garner strong public support.
However, rebuilding public trust will not happen in the face of a pervasive perception that government is not transparent and accountable, cronyism is rampant, and public officials are more interested in helping themselves than in serving the public good.
Taking strong, swift, and decisive action to address abuses and begin to rebuild public trust should be the first priority for our city, state and federal government in the new legislative session.
Create a Task Force on Public Integrity with a mission to develop a comprehensive proposal for ethics and lobbying reform in our city and state. Which addresses reforms in three areas: (1) strengthening enforcement of ethics, campaign finance, and lobbying laws; (2) strengthening civil and criminal penalties for abuses; and (3) improving awareness and education for public officials.
Reinforce honesty, integrity and transparency by government officials as the core requirement to be and stay in office, any violations of these core tenets will cause the removal of the public official and the loss of "all benefits" retroactive. I think we should consider putting public official on a base salary plus commission based on performance.
While the many of our elected officials and government employees are honest, dedicated public servants, the actions of a few create a dark cloud over all.
Taking strong, swift, and decisive action to address these abuses and begin to rebuild public trust should be the first priority for our city, state and federal government in the new legislative session.
"The benchmark of a civilized society is the quality of its justice"
Compiled by: YJ Draiman

Building Public Trust in Local Government

Perhaps the single largest challenge for elected city officials is educating our community about local government: how policy is made, priorities are set and budgets are developed.

This challenge is compounded by the fact that many residents in our communities are already stressed by the demands of making ends meet in a dismal economy and caring for their families — which leaves little time, if any, for civic participation — and by public distrust of government in general.

 

As elected local officials, our task is to explain how municipal government works. In my experience, people are often confused about the different types of revenues that flow into the city and the distinctions between expenditures and different “pots” of money for vital community services such as police, fire, parks and recreation and libraries.

 

Cities throughout California have developed innovative ways to educate and inform residents about local government. The City of Cupertino invented a “Balance or Bust” board game that took groups of residents through the budget process and challenged them to solve a $2 million deficit. The game used real numbers based on the actual costs of city services. By playing the game, residents learned about the connection between economic development and a solid tax base, the difficulty in prioritizing competing community needs, and the vulnerability of local government funds to state take-aways.

 

One way to connect with hard-to-reach residents is through their children. In Oxnard, a Mobile Satellite City Hall introduces residents to city services and gives them an opportunity to voice their concerns in a relaxed and convenient setting. By collaborating with local schools and promoting children’s games and activities as part of the neighborhood events, the city reached families whose kids were eager to attend. While the children were busy, parents explored exhibits promoting city services, received informational materials in both English and Spanish and met city staff who answered questions and invited suggestions. The city made contact with thousands of people who had never before connected with their local government. The program also provided a way to educate residents and develop neighborhood leaders.

 

Recognizing an opportunity to create a connection between municipal government and residents through its children, the City of Carlsbad developed the City-Stuff elementary school curriculum for third graders, who were not being taught about local government in the public schools. The city partnered with the business community and Junior Achievement, a nonprofit worldwide organization that seeks to educate and inspire young people to succeed, and the three local school districts agreed to participate. The curriculum culminates in a mock city council meeting held at the city council chambers that involves both students and parents. CityStuff enables students and their families to learn about their community and discover how democracy functions at the local level.

 

Building trust in local government takes many forms. The City of Santa Clara implemented a Vote Ethics campaign to engage and inform voters on how to become better educated about candidates and politics, without ever telling them for whom or how to vote. People learned how to more effectively research a candidate’s ideology and fundraising and how to better interpret candidates’ direct mail. Pre- and post-implementation surveys revealed that the number of residents who felt they had too little information to make informed voting choices decreased by 45 percent.

 

In another ethics-related effort, the City of Santa Ana’s voters passed Measure D in 2008. The measure made two changes to the city charter: It extended city council members’ term limits from two terms to three and called for adoption of a Code of Ethics and Conduct for elected officials and members of appointed boards, commissions and committees. Given that the public can be skeptical of the power and influence held by elected officials, especially when being asked to extend term limits, this measure generated a lot of attention and interest in the community. The goal of the Code of Ethics and Conduct is to ensure public confidence in the integrity of local government’s elected and appointed officials. The code, which had to be adopted within six months of the charter amendment taking effect, was developed with significant public input. In June 2008, the city approved and adopted these core values and expressions of behavior:

• Integrity and honesty;
• Responsibility and protecting the public’s interests;
• Fairness and accountability;
• Respect for fellow elected or appointed officials and staff; and
• Public, proper and efficient use of public resources. 

All elected and appointed officials in Santa Ana must certify that they have received a copy of the Code of Ethics and Conduct, understand its provisions and pledge to conduct their duties in
accordance with the code. In addition, the ethics code was placed on each commission and board agenda, and each voted to acknowledge its receipt. Upon entering office, new officials are asked to sign the Code of Ethics and Conduct. The code is also incorporated into handbooks, orientation programs and other training efforts, including ethics training required by AB 1234, to further clarify its provisions and application.

 

These are just a few examples of the many ways that cities and elected officials are helping to build trust and public confidence in local government. The key is to explain and educate, rather than taking a defensive posture when residents question city policies and budgets.

 

Helpful Resources for City Officials

The Institute for Local Government (ILG), which is the nonprofit research affiliate of the League and the California State Association of Counties, offers a number of helpful tools to inform residents about local government issues. Two publications of particular interest are Understanding the Basics of County and City Revenues and Understanding the Basics of Local Agency Decision-Making. Both present the nuts and bolts of local government for the layperson. ILG also offers one-page summaries about topics related to land use and planning that are written in plain language and available both in English and Spanish. These publications are available free from the ILG website at www.ca-ilg.org/localgovt101.

 

What is your city doing? We want to hear about your efforts to connect with your community and what’s working. As part of its Local Government 101 program, ILG hosts an online discussion board (www.ca-ilg.org/localgovt101forum) where you can post information about how you are working to educate your community about local government issues. Let us know what’s working in your city.

 

For More Information on Codes of Ethics and Conduct To learn more about ethics codes, visit www.ca-ilg.org/ethicscodes.