Irregular Payments

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First was Bears Stearn. Then Fannie & Freddie. And now talk of propping up yet another screw up: Lehman’s. I realize there are broader repercussions should one of these big financial institutions fail, but the reality of apparently having few consequences for bad behavior is just begging to create all sorts of moral hazard.

When I screw up, I get slapped. And deservedly so.

However, when a really big corporation screws up, I - as well as my children, who will be paying for this crap long after we’re gone unless the government realizes that out-of-control debt stays exactly that - again get slapped.

The lesson? Either be very very big, or be very small. The middle class? Fuggit about ‘em…

photo credit: Renegade98

With our own government muddling our minds by telling us that a loan is a credit via the recently passed Housing and Economic Recovery Act of 2008, is it any wonder that Americans seem a bit economically challenged? Oh, sure, at least it’s an interest free loan, but as long as you have to pay it back, it sure is not a credit to this taxpayer.

And yes, I know you could play a little arbitrage and come out with a little extra coin in the end. But you and I both know that the majority of people taking advantage of this are not going to be doing that. They are going to be blowing it on some other thing they cannot really afford but for this $7,500 advance from the government. And then in a couple years they will discover they owe that money back, and be further in the hole than before. Could you please explain the logic in helping those with debt problems by giving them extra debt? All while sacking everyone — including future generations — with a little more debt via a nice little boost to the deficit? (Oh, that’s right, this isn’t a helping hand for citizens — it is for the banks.)

On a personal note, I am so looking forward to answering the inevitable client questions from those who take advantage of this as to why they need to pay an additional $500 in taxes, every year, for the next 15 years…

I propose a new law:

Congress shall enact no new spending legislation during an election year.

Well, what do you know — made it through another tax season almost entirely intact!

photo credit: ninanoelan

Looking at the final tally, it appears we had a bit of a slowdown this month. Which I’m going to blame entirely on my sister, of course. You see, she is getting married in a few weeks, so of course she needed a bridal shower and all that jazz. Which, being my little sister, I didn’t necessarily nudge the host — being my wife — to go cheap on the party favors and drinks and such. C’est la vie. It’s my little sister after all, and this will hopefully be the only wedding she ever has!

Which, of course, means that we’ll probably see a little more slowing this month. Have another gift to get, have to make myself presentable and such, etc. etc. At least I won’t be making a cross country flight or drive for this one!

Anyway, on to the raw numbers. Just a steady chipping away, though there has been some news on the property we’re trying to unload, but that’s a story for another day.