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Saturday, October 25, 2008
Thursday, October 23, 2008
hahahahah
I was reading an article I found on digg. I laughed so hard when i read the last line!!!
If he wins, however, there will be a different challenge. He will have to return, full force, to the inspiration business. The public will have to be mobilized to face the fearsome new economic realities. He will also have to deliver bad news, to transform crises into "teachable moments." He will have to effect a major change in our political life: to get the public and the media to think about long-term solutions rather than short-term balms. Obama has given some strong indications that he will be able to do this, having remained levelheaded through a season of political insanity. His has been a remarkable campaign, as smoothly run as any I've seen in nine presidential cycles. Even more remarkable, Obama has made race — that perennial, gaping American wound — an afterthought. He has done this by introducing a quality to American politics that we haven't seen in quite some time: maturity. He is undoubtedly as ego-driven as everyone else seeking the highest office — perhaps more so, given his race, his name and his lack of experience. But he has not been childishly egomaniacal, in contrast to our recent baby-boomer Presidents — or petulant, in contrast to his opponent. He does not seem needy. He seems a grown-up, in a nation that badly needs some adult supervision.
http://www.time.com/time/nation/article/0,8599,1853025-5,00.html
If he wins, however, there will be a different challenge. He will have to return, full force, to the inspiration business. The public will have to be mobilized to face the fearsome new economic realities. He will also have to deliver bad news, to transform crises into "teachable moments." He will have to effect a major change in our political life: to get the public and the media to think about long-term solutions rather than short-term balms. Obama has given some strong indications that he will be able to do this, having remained levelheaded through a season of political insanity. His has been a remarkable campaign, as smoothly run as any I've seen in nine presidential cycles. Even more remarkable, Obama has made race — that perennial, gaping American wound — an afterthought. He has done this by introducing a quality to American politics that we haven't seen in quite some time: maturity. He is undoubtedly as ego-driven as everyone else seeking the highest office — perhaps more so, given his race, his name and his lack of experience. But he has not been childishly egomaniacal, in contrast to our recent baby-boomer Presidents — or petulant, in contrast to his opponent. He does not seem needy. He seems a grown-up, in a nation that badly needs some adult supervision.
http://www.time.com/time/nation/article/0,8599,1853025-5,00.html
Wednesday, October 15, 2008
Poverty
Today is blog action day, and the topic is poverty, so I figured I'd write something about the said topic….
How do we rid the world of poverty?
I don't think this is truly the question of we should be asking ourselves, but rather how do we improve the lives of everyone else. Poverty, sadly, will always be around because the economic principle of scarcity applies; resources of all kinds are scarce. To put it simply we do not have enough resources to produce all of the goods and services that anybody might like to have. Some of us may not know it, but clean water is a precious resource. A lot of us do not realize the advantage we have when we are able to drink clean water straight from the tap. I remember living in a place where clean water was privatized. In order to drink any water I had to buy two five gallon jugs on a weekly basis in order to have a drink. This wasn't really a big deal for my family who was middle class in Mexico. But for the poor families, clean water can put a strain on your budget. It would cost roughly 5 dollars a week to refill those jugs of water. In a place where roughly 40% of the population makes $550 USD annually, that is a big deal. In Mexico you can literally have a billionaire stand right next to a beggar. You can have state representatives with lavish salaries (USD $85,000 and more) and yet their constituents with only dollars a day. The income inequality gap is wide in Mexico. Although growing up in a border town opened my eyes to the hypocrisy of both countries.
I finally was able to move to the USA when I went to college, and this move opened my eyes to the income gap between the 50 states. We had a minimum, barely living wage of $5.15 an hour down in Texas, while New York city at least had a $10 dollar an hour minimum wage. We could justify this inequality with saying that New York has a higher cost of living than Texas, but even then I don't understand why Texas doesn't raise its minimum wage to better suit the needs of its working poor. I find it a ridiculous that a guy working full time retail in New York can make more than some salaried employees in Texas. I know what some of you might say, that if we raise the minimum wage, that things will become more expensive, and that by raising the minimum wage we'll all have to pay more money for essential items. Yes, this is actually true, raising the minimum wage to a workable living wage will inflate the economy, but the past few years we have seen our economy inflate without the minimum wage increase. This means that people have gotten poorer and were able to afford even less with their meager wages. Also if you increase minimum wage, right out of the bat you increase consumer spending. Families are able to afford more. This automatically puts more money into liquidity, thus combating inflation.
Really there is no way to rid the world of poverty. The rich will always be there, they will always control the majority of the world's wealth, in fact, I am sure even if we spread the wealth of the richest 1% around we would probably still have poverty running rampant. It is something we will always have to deal with as a world with limited resources. So how does one help those in developing countries, or even in a developed nation who are not as fortunate as the rest of us? In my humble opinion there are 5 simple rights that every person must have as a human being. These are not guidelines, these are not privileges; these are rights. Human rights, self evident, that we as a species should observe. When we see a culture, a city, or a nation that is being denied these rights, it is our obligation as human beings to stand up and demand of our leaders to preserve them. There are of course more rights that every person deserves, but right now I am only speaking in the context of poverty and how to get rid of it.
So there you have it, these are the five simple rights that every person must have in this world. If ever one person be denied these rights, it should be criminal. If we look away, then we are culpable as well.
How do we rid the world of poverty?
I don't think this is truly the question of we should be asking ourselves, but rather how do we improve the lives of everyone else. Poverty, sadly, will always be around because the economic principle of scarcity applies; resources of all kinds are scarce. To put it simply we do not have enough resources to produce all of the goods and services that anybody might like to have. Some of us may not know it, but clean water is a precious resource. A lot of us do not realize the advantage we have when we are able to drink clean water straight from the tap. I remember living in a place where clean water was privatized. In order to drink any water I had to buy two five gallon jugs on a weekly basis in order to have a drink. This wasn't really a big deal for my family who was middle class in Mexico. But for the poor families, clean water can put a strain on your budget. It would cost roughly 5 dollars a week to refill those jugs of water. In a place where roughly 40% of the population makes $550 USD annually, that is a big deal. In Mexico you can literally have a billionaire stand right next to a beggar. You can have state representatives with lavish salaries (USD $85,000 and more) and yet their constituents with only dollars a day. The income inequality gap is wide in Mexico. Although growing up in a border town opened my eyes to the hypocrisy of both countries.
I finally was able to move to the USA when I went to college, and this move opened my eyes to the income gap between the 50 states. We had a minimum, barely living wage of $5.15 an hour down in Texas, while New York city at least had a $10 dollar an hour minimum wage. We could justify this inequality with saying that New York has a higher cost of living than Texas, but even then I don't understand why Texas doesn't raise its minimum wage to better suit the needs of its working poor. I find it a ridiculous that a guy working full time retail in New York can make more than some salaried employees in Texas. I know what some of you might say, that if we raise the minimum wage, that things will become more expensive, and that by raising the minimum wage we'll all have to pay more money for essential items. Yes, this is actually true, raising the minimum wage to a workable living wage will inflate the economy, but the past few years we have seen our economy inflate without the minimum wage increase. This means that people have gotten poorer and were able to afford even less with their meager wages. Also if you increase minimum wage, right out of the bat you increase consumer spending. Families are able to afford more. This automatically puts more money into liquidity, thus combating inflation.
Really there is no way to rid the world of poverty. The rich will always be there, they will always control the majority of the world's wealth, in fact, I am sure even if we spread the wealth of the richest 1% around we would probably still have poverty running rampant. It is something we will always have to deal with as a world with limited resources. So how does one help those in developing countries, or even in a developed nation who are not as fortunate as the rest of us? In my humble opinion there are 5 simple rights that every person must have as a human being. These are not guidelines, these are not privileges; these are rights. Human rights, self evident, that we as a species should observe. When we see a culture, a city, or a nation that is being denied these rights, it is our obligation as human beings to stand up and demand of our leaders to preserve them. There are of course more rights that every person deserves, but right now I am only speaking in the context of poverty and how to get rid of it.
- 1. The right to food.
There is something wrong in the world when we have people starving in the world, yet here in America we have poorer states suffering from Diabetes because of high fat food and lower quality foods, and the richer states having less of a problem with their weight. I swear only in America could there be such a thing as a peanut allergy. - 2. The right to shelter
Everyone in the world needs housing, if you cannot afford housing, there should be adequate government programs that house you and help you afford housing. I heard there was this great program in Australia that helps couples buy their first house by giving them money for their deposit. I think that is amazing. - 3. The right to universal healthcare, affordable/free, and of quality
I cannot believe this is even an issue in America. Healthcare is not a privilege, it is not something only those who cannot afford it deserve, and healthcare is for everyone. A doctor should be able to help anyone and everyone, and should not be getting flack for it from some insurance guy. The system in America is disgusting and should be rectified immediately. - 4. The right to clothing
this is pretty self explanatory, everyone deserves clothing, and new clothes, also not just those who can afford it. I find clothing to be the prime example of what's wrong with the world. Glorification of people who do absolutely nothing (Tommy Hilfiger, Ralph Lauren, and Calvin Klein) whose worthless product drives prices up making it hard for people to afford the things they need. Lets not forget that people like Ralph Lauren are worse because they market their product as quality when in fact they're no better than wal mart clothing. - 5. The right to life
This one is a bit general, but it means just about anything it could mean, everyone deserves the right to work, and if unemployment is too high, they deserve help from the government, they deserve the right to defend themselves and be given a fair trial and adequate representation from a competent lawyer, you shouldn't only be able to have a good lawyer if you can afford one. Also Habeas Corpus applies to everyone, not just Americans, everyone. Finally, if you are wondering if the right to life applies to a sperm that's reached to an egg…I'm not touching that with a ten foot pole. I personally believe in a woman's right to choose.
So there you have it, these are the five simple rights that every person must have in this world. If ever one person be denied these rights, it should be criminal. If we look away, then we are culpable as well.
Friday, October 10, 2008
Thursday, October 09, 2008
Tuesday, October 07, 2008
Monday, October 06, 2008
Latest Fashion in Mexico
Bullet Proofed Shirts

Tucked on a leafy side street in the Polanco neighborhood is a shop unlike the others, one whose bustling business says much about the dire state of security in this country. At Miguel Caballero, named after its Colombian owner, all the garments are bulletproof.
There are bulletproof leather jackets and bulletproof polo shirts. Armored guayabera shirts hang next to protective windbreakers, parkas and even white ruffled tuxedo shirts. Every member of the sales staff has had to take a turn being shot while wearing one of the products, which range from a few hundred dollars to as much as $7,000, so they can attest to the efficacy of the secret fabric.
Tucked on a leafy side street in the Polanco neighborhood is a shop unlike the others, one whose bustling business says much about the dire state of security in this country. At Miguel Caballero, named after its Colombian owner, all the garments are bulletproof.
There are bulletproof leather jackets and bulletproof polo shirts. Armored guayabera shirts hang next to protective windbreakers, parkas and even white ruffled tuxedo shirts. Every member of the sales staff has had to take a turn being shot while wearing one of the products, which range from a few hundred dollars to as much as $7,000, so they can attest to the efficacy of the secret fabric.
Deadline to register to vote is TODAY
Yes Carlos, Checo, Fredo, Neto(I'm sure you are already registered but just to make sure)
Today, Monday, October 6th, 2008 is the deadline to register to vote, it is very easy,
There are plenty of places to pick up a voter registration form
You can register at the Department of Public Safety when applying for or making changes to a driver license;
You can register at your county Voter Registrar's office. (In most Texas counties, the Tax Assessor-Collector is also the Voter Registrar. In some counties, the County Clerk or Elections Administrator registers voters.); or
You can register by mail by obtaining an application from your county Voter Registrar's office or the Secretary of State's office. You can also pick up applications at libraries, many post offices and government offices, major grocery stores, high schools, or download one at
Today, Monday, October 6th, 2008 is the deadline to register to vote, it is very easy,
There are plenty of places to pick up a voter registration form
You can register at the Department of Public Safety when applying for or making changes to a driver license;
You can register at your county Voter Registrar's office. (In most Texas counties, the Tax Assessor-Collector is also the Voter Registrar. In some counties, the County Clerk or Elections Administrator registers voters.); or
You can register by mail by obtaining an application from your county Voter Registrar's office or the Secretary of State's office. You can also pick up applications at libraries, many post offices and government offices, major grocery stores, high schools, or download one at
Sunday, October 05, 2008
Friday, October 03, 2008
You know what
speaking as part of the 20 to 30 year old crowd.
fuck the old. No seriously, In the past two elections, the majority of the people who voted were seniors, and they voted for GWB, because they voted "in their best interests". That's also the fault of young people of course with their idiotic "i don't vote" attitude.
Now because of them voting for George bush, they are losing their pensions, they are losing their IRAs, they are losing everything they have tried to do for the past 60 years to prepare for retirement, and yet have not received any help in healthcare or retirement because they believed the stupid notion that george bush was a "compassionate conservative" and that the market would sort it all out; and then in 2004 they believed Bush would take care of them from the scaaary terrorists even though they didn't have the brains to realize that 911 HAPPENED ON HIS WATCH.
so fuck them. Fuck the AARP. Fuck anyone over 50.
/rant
fuck the old. No seriously, In the past two elections, the majority of the people who voted were seniors, and they voted for GWB, because they voted "in their best interests". That's also the fault of young people of course with their idiotic "i don't vote" attitude.
Now because of them voting for George bush, they are losing their pensions, they are losing their IRAs, they are losing everything they have tried to do for the past 60 years to prepare for retirement, and yet have not received any help in healthcare or retirement because they believed the stupid notion that george bush was a "compassionate conservative" and that the market would sort it all out; and then in 2004 they believed Bush would take care of them from the scaaary terrorists even though they didn't have the brains to realize that 911 HAPPENED ON HIS WATCH.
so fuck them. Fuck the AARP. Fuck anyone over 50.
/rant
Congress save NASCAR!
My fellow Americans, your government has been hard at work over the last couple weeks drafting a 451-page bill filled enough provisions to make your head spin. Billed as a bailout for the country’s financial system, the “emergency economic stabilization” plan contains quite a few important provisions. To save you the trouble of sifting through all 451 pages, I’ve highlighted below some of the more important legislative accomplishments.
Sec. 325. Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds. I think this means reduced tariffs on wool and wool products will continue through 12/31/2014. Good to know those who can’t afford their home heating bills this winter can bundle up with cheaper wool sweaters.
Sec. 317. Seven-year cost recovery period for motorsports racing track facility. This one should be popular with all those NASCAR fans with their C.P.A certification. Hard to tell much from the actual language in the bill, but it sounds like the government is extending the time some “motorsports racing facility” has to recover building costs. Whew, glad they got that one hammered out–our economy was surely doomed without it.
Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children. According to the text, this provision allows for an “exemption for certain wood shafts” from excise tax. The shafts are manufactured for use by children, but cannot be less than 5/16 of inch in diameter and must not be “suitable for use with a bow.” I guess that eliminates the shaft taxpayers received in the passage of this bloated bill.
Sec. 601. Secure rural schools and community self-determination program. This section takes care of the “Reauthorization of the Secure Rural Schools and Community Self-Determination Act of 2000. Unfortunately, I have no idea what that means, but considering this section alone accounts for 49 pages of the overall bill’s text I can only assume it is something important. Forgive me, but I got lost when I hit the subsection that called for job creation in areas whose objectives would be to “control noxious and exotic weeds” while providing “improvements in forest eco-system health.” You can see how a regular guy like me could get lost in the “noxious weeds” of these 49 pages.
If you would like to read more about these critical pieces of legislation, you may view the full text, here (pdf format). I’m sure you will be as comforted as I am to know that finally all the rural, wool-sweater wearing kids toting wooden arrows with no bows to the motorsports track are finally taken care of. Whew–What a relief!
Sec. 325. Extension and modification of duty suspension on wool products; wool research fund; wool duty refunds. I think this means reduced tariffs on wool and wool products will continue through 12/31/2014. Good to know those who can’t afford their home heating bills this winter can bundle up with cheaper wool sweaters.
Sec. 317. Seven-year cost recovery period for motorsports racing track facility. This one should be popular with all those NASCAR fans with their C.P.A certification. Hard to tell much from the actual language in the bill, but it sounds like the government is extending the time some “motorsports racing facility” has to recover building costs. Whew, glad they got that one hammered out–our economy was surely doomed without it.
Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children. According to the text, this provision allows for an “exemption for certain wood shafts” from excise tax. The shafts are manufactured for use by children, but cannot be less than 5/16 of inch in diameter and must not be “suitable for use with a bow.” I guess that eliminates the shaft taxpayers received in the passage of this bloated bill.
Sec. 601. Secure rural schools and community self-determination program. This section takes care of the “Reauthorization of the Secure Rural Schools and Community Self-Determination Act of 2000. Unfortunately, I have no idea what that means, but considering this section alone accounts for 49 pages of the overall bill’s text I can only assume it is something important. Forgive me, but I got lost when I hit the subsection that called for job creation in areas whose objectives would be to “control noxious and exotic weeds” while providing “improvements in forest eco-system health.” You can see how a regular guy like me could get lost in the “noxious weeds” of these 49 pages.
If you would like to read more about these critical pieces of legislation, you may view the full text, here (pdf format). I’m sure you will be as comforted as I am to know that finally all the rural, wool-sweater wearing kids toting wooden arrows with no bows to the motorsports track are finally taken care of. Whew–What a relief!
Thursday, October 02, 2008
Things Sarah Palin can Name
Nicknames I’ve Had
Sarah Barracuda
Sarah Failin’
VPILF
Bush in a Dress
Caribou Barbie
Footnote of History
Pitbull with Lipstick
Moose Momma
Moosilini
Tina Fey’s Sister
Mittens
Barack’s Bane
Pig
Countries I’ve Visited
Kuwait
Germany
Mexico
New York
Utopia
Ireland
Iraq
Percentage of People Who Think Librarians Are Hot
45.23%
Colleges I’ve Attended
University of Idaho
Matanuska-Susitna College
University of Idaho
North Idaho College
Hawaii Pacific University
Reporters I’ll Agree to Talk to Again
Sean Hannity
Hugh Hewitt
Steve Doocy
Katie Couric
Charlie Gibson
Types of Birth Control
Abstinence
Prayer
More Prayer
Supreme Court Cases
Roe vs. Wade
Times John McCain Has Pushed for More Regulation
Last week
I’ll get back to you on that
World Leaders
Putin
Bush
Karzai
Mr. Pakistani Huggypants
Yakov Smirnoff
Countries that Can be Seen from Alaska
Russia
Canada
Two Bitches from Heart
Ann Wilson
Nancy Wilson
The Names of my Children
Bristol
Willow
Piper
Trig
Track
Causes of Global Warming
God
Polar Bears
Fire
My Least Favorite Game Shows
Name that Tune
Jeopardy
Press Your Luck
So You Want to be Vice-President
Marshmallow Shapes in Lucky Charms
Moons
Hearts
Crescent
Cross
Clovers
Rainbows
Gold
Horseshoes
Things the VP Does
I’ll get back to you on that.
Taxidermists in Wasilla, Alaska
WD Taxidermy
Top Gun Taxidermy
Foxy Beaver Taxidermy
Tundra Tanning and Taxidermy
All Things Wild Taxidermy
Countries I’ve Visited
Percentage of People Who Think Librarians Are Hot
Colleges I’ve Attended
Reporters I’ll Agree to Talk to Again
Types of Birth Control
Supreme Court Cases
Times John McCain Has Pushed for More Regulation
World Leaders
Countries that Can be Seen from Alaska
Two Bitches from Heart
The Names of my Children
Causes of Global Warming
My Least Favorite Game Shows
Marshmallow Shapes in Lucky Charms
Things the VP Does
Taxidermists in Wasilla, Alaska
Fear
I read a lot of financial blogs because I'm a grown up and it inspires me to save.
Well here is a good blog talking about the current financial crisis:
Over the last several days, many readers have asked for my take on the economic crisis. I’m not an economist - my opinion is just that of an average person who has read a number of economics books and talked to a lot of people from all walks of life. Here’s my humble take on the situation.
From Franklin Roosevelt’s first inaugural address, March 4, 1933 (please, listen in):
Over the last two weeks, I’ve read countless articles and heard countless podcasts talking about financial apocalypse, spreading fear around like mayonnaise on a turkey sandwich. Most of the suggestions are maddening - I’ve heard previously rational people talking about pulling all of their money out of FDIC-insured bank accounts and putting them under their mattresses.
All of this is based on fear, not fact. Over the last few months, several financial institutions have failed, but in each case, the resources of those institutions were immediately absorbed by other companies or, in a few cases, by governmental buyouts. No one has lost a dime in a bank account. No one has lost a single cent of insurance coverage. Many large banks - like Bank of America - have already taken their losses from the subprime mortgages and rolled right through them, and they’re strong enough that they see this as a buying opportunity.
We all know the general storyline by now - these failures were the result of investing too much in bad mortgages. The truth is that no one knows how serious the actual problem is. No one. The ludicrous plan that Paulson proposed last week served one purpose alone - it gave him tons of cash to make sure that the banks run by his cronies wouldn’t outright fail. The truth is that he doesn’t know how bad it actually is. Neither does Bernanke. Neither do you, and neither do I.
The panicked talk, the whispered statements about apocalypse - they’re fear. Nothing more, nothing less.
I don’t claim to know what the “best” plan for resolving the situation is. My level of information about the true nature of the economic situation is extremely limited - and so is yours.
I’ll tell you what I do see, though.
I look out my window here in Iowa and I see the ongoing harvest of one of the largest soybean and corn crops ever - not the cropless Dust Bowl of the 1930s.
I don’t see a single person with a bank account that has lost their deposits, like my grandfather’s family did circa 1932.
I see people going to work, working hard and producing value for their wage, coming home, and buying the things that they need to keep their family going, which puts money directly into the economy.
I see unemployment barely over six percent, not the 25% rate at the time of FDR’s address.
I see industrial production still rising - in 1932, it had fallen by more than half in just three years.
I see a dollar that’s actually strengthening, not weakening, while the price of oil is down sharply from its highs earlier this year.
In short, I see a lot of things that make me optimistic about our ecnomic situation, a pretty stark contrast from the fear being peddled by some. I’m actually much more reminded of 1987, when banks were failing thanks to the Savings and Loan crisis and Black Monday, when the Dow dropped 22% of its value in a single day. We haven’t yet seen anything as worrisome as that, in my opinion - and that was just a drop in the bucket compared to the 1930s.
To put it simply, I’m still not worried a bit, and when I see the fear being bandied about, I’m reminded of FDR’s words.
So what have I been doing with my money as of late?
First, I haven’t taken a dime out of any bank. I haven’t seen any FDIC-insured bank account fail, and none have in the history of the FDIC.
Second, I actually maxed out my Roth IRA contributions earlier this month. Almost all of that money went into broad based index funds - namely, Vanguard’s Target Retirement 2045 fund.
Third, I haven’t made a single change in any plans I’ve had for investing other than the early Roth IRA buy. I’m still following my own game plan.
Now, ask yourself this. If you make any irrational moves, like pulling all of your money out of stocks, does someone profit from it? Of course they do. Your brokerage will make a fee from the sale, and a happy buyer out there will be glad to buy that stock from you at a nice discount. Fear is the best salesman, after all.
My sole piece of advice to you is this: don’t panic. Don’t make any hasty decisions. Sit back and get informed - and don’t just rely on one source for information, either. Get a bunch of different angles on what’s happening, from liberals and conservatives and moderates alike. If you’re worried about your money, do your own research and find out reasonable things to do with it. Take a serious look at what people who really know what they’re doing are doing with their money - in the last two weeks, Warren Buffett has invested $3 billion in General Electric stock and $5 billion in Goldman Sachs stock (an investment bank … weren’t we supposed to be afraid of those?) - he sees this current situation as an opportunity to buy, not sell.
And one more thing. Even in the darkest heart of the Great Depression, 75% of Americans had a steady job with a steady paycheck, which they steadily used to buy the things they needed. Those years also produced the Greatest Generation and an economic steamroller that ran through the last half of the Twentieth Century like a tidal wave.
It was true 75 years ago. It’s true now.
The only thing we have to fear is fear itself.
Well here is a good blog talking about the current financial crisis:
Over the last several days, many readers have asked for my take on the economic crisis. I’m not an economist - my opinion is just that of an average person who has read a number of economics books and talked to a lot of people from all walks of life. Here’s my humble take on the situation.
From Franklin Roosevelt’s first inaugural address, March 4, 1933 (please, listen in):
I am certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our Nation impels. This is preeminently the time to speak the truth, the whole truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days.
Over the last two weeks, I’ve read countless articles and heard countless podcasts talking about financial apocalypse, spreading fear around like mayonnaise on a turkey sandwich. Most of the suggestions are maddening - I’ve heard previously rational people talking about pulling all of their money out of FDIC-insured bank accounts and putting them under their mattresses.
All of this is based on fear, not fact. Over the last few months, several financial institutions have failed, but in each case, the resources of those institutions were immediately absorbed by other companies or, in a few cases, by governmental buyouts. No one has lost a dime in a bank account. No one has lost a single cent of insurance coverage. Many large banks - like Bank of America - have already taken their losses from the subprime mortgages and rolled right through them, and they’re strong enough that they see this as a buying opportunity.
We all know the general storyline by now - these failures were the result of investing too much in bad mortgages. The truth is that no one knows how serious the actual problem is. No one. The ludicrous plan that Paulson proposed last week served one purpose alone - it gave him tons of cash to make sure that the banks run by his cronies wouldn’t outright fail. The truth is that he doesn’t know how bad it actually is. Neither does Bernanke. Neither do you, and neither do I.
The panicked talk, the whispered statements about apocalypse - they’re fear. Nothing more, nothing less.
I don’t claim to know what the “best” plan for resolving the situation is. My level of information about the true nature of the economic situation is extremely limited - and so is yours.
I’ll tell you what I do see, though.
I look out my window here in Iowa and I see the ongoing harvest of one of the largest soybean and corn crops ever - not the cropless Dust Bowl of the 1930s.
I don’t see a single person with a bank account that has lost their deposits, like my grandfather’s family did circa 1932.
I see people going to work, working hard and producing value for their wage, coming home, and buying the things that they need to keep their family going, which puts money directly into the economy.
I see unemployment barely over six percent, not the 25% rate at the time of FDR’s address.
I see industrial production still rising - in 1932, it had fallen by more than half in just three years.
I see a dollar that’s actually strengthening, not weakening, while the price of oil is down sharply from its highs earlier this year.
In short, I see a lot of things that make me optimistic about our ecnomic situation, a pretty stark contrast from the fear being peddled by some. I’m actually much more reminded of 1987, when banks were failing thanks to the Savings and Loan crisis and Black Monday, when the Dow dropped 22% of its value in a single day. We haven’t yet seen anything as worrisome as that, in my opinion - and that was just a drop in the bucket compared to the 1930s.
To put it simply, I’m still not worried a bit, and when I see the fear being bandied about, I’m reminded of FDR’s words.
So what have I been doing with my money as of late?
First, I haven’t taken a dime out of any bank. I haven’t seen any FDIC-insured bank account fail, and none have in the history of the FDIC.
Second, I actually maxed out my Roth IRA contributions earlier this month. Almost all of that money went into broad based index funds - namely, Vanguard’s Target Retirement 2045 fund.
Third, I haven’t made a single change in any plans I’ve had for investing other than the early Roth IRA buy. I’m still following my own game plan.
Now, ask yourself this. If you make any irrational moves, like pulling all of your money out of stocks, does someone profit from it? Of course they do. Your brokerage will make a fee from the sale, and a happy buyer out there will be glad to buy that stock from you at a nice discount. Fear is the best salesman, after all.
My sole piece of advice to you is this: don’t panic. Don’t make any hasty decisions. Sit back and get informed - and don’t just rely on one source for information, either. Get a bunch of different angles on what’s happening, from liberals and conservatives and moderates alike. If you’re worried about your money, do your own research and find out reasonable things to do with it. Take a serious look at what people who really know what they’re doing are doing with their money - in the last two weeks, Warren Buffett has invested $3 billion in General Electric stock and $5 billion in Goldman Sachs stock (an investment bank … weren’t we supposed to be afraid of those?) - he sees this current situation as an opportunity to buy, not sell.
And one more thing. Even in the darkest heart of the Great Depression, 75% of Americans had a steady job with a steady paycheck, which they steadily used to buy the things they needed. Those years also produced the Greatest Generation and an economic steamroller that ran through the last half of the Twentieth Century like a tidal wave.
It was true 75 years ago. It’s true now.
The only thing we have to fear is fear itself.


