Now the government is trying to save us with a newly created institution called the Consumer Financial Protection Bureau. It has a planned budget in excess of 300 million dollars. This is one of those” lock the barn door after the horses have run off,” programs. Why not use the money for the unemployed and food stamps? These people need hope, not protection.
Then the Obama administration comes out supporting a restriction on purchasing a morning after birth control for anyone under the age of 17, they didn’t want 11 and 12 year old girls buying them. Just how many pills can you buy on a 50 cent a week allowance? The average kid probably has a better chance of being hit by a milk truck than being knocked up at the age of 11 or 12.
Alabama passed a stiff law against illegal immigrants, now they have no one to harvest the farm crops. The argument being that the farmers will have to pay better wages to get fruit pickers. Are you going to buy 89 cent a pound tomatoes grown in Mexico or the $3 per pound ones grown in Alabama? Farm land could be a good buy in that state, as farmers go broke trying to survive. Of course when the law is repealed, those who invested in that "worthless land," will make out like bandits. Passing legislation is a little like playing chess; you have to think several moves out to make a buck. These legislators did their thinking and by all appearances, looked like they were performing a public service; they got rid of the illegal aliens and are about to pick up some nice cheap farmland to boot.
New York plans to raise 2 billion dollars taxing millionaires. How does this work? The rich people will move out of the state (to their summer homes no less). The amount that New York raises from taxing the rich, will be passed to the middle class in the form of lower tax rates. What happens when no new funds come in from expected sources? Is this where they pull the rabbit out of the hat? I just love magic tricks!
A new Nevada law makes it more difficult for lenders to foreclose on home loans in the state. 3 out of 5 homeowners are already underwater with their mortgages. Where is the incentive for the banks to even write new home loans in the state? Just draw a red line around the state, home prices could drop a lot lower now that the banks have been shown "who’s the boss." Visa and Master Card could be the only ones doing home loans in the state.
Then we have FHA guaranteed loans to help people in California buy affordable homes up to $729,000. To my way of thinking, someone buying a home a few hundred thousand shy of a million dollars doesn’t need financing help. Why not set the bar at a more reasonable level of 150K for everyone. That might kick the air out of the inflated housing market in California. These loan levels are a prime example of a government program that fails to protect the best interests of the buyer. The amounts are absurd, and no one questions them.
Governor Jerry Brown just acknowledged that the state of California has a 13 billion dollar shortfall this year. I would hazard a guess that the current budget shortfall and liability obligations are closer to 30 billion dollars. It’s a little like the political concept of being “just a little bit pregnant,” it’s just a small problem right now. Tell the voters the truth and get hung out to dry. His solution is to cut services even more and raise taxes. It seems logical. But raising taxes, will it bring in more revenue? Just look at all of the supermarkets in LA that have their warehouses in Nevada. They truck their product in 250 miles. It’s all about taxes that vary considerably from one state to another.
Most of these government programs are kind of like using a shotgun to trim your toe nails. They kind of, sort of work, but results may vary depending on your eyesight. Using government logic, not having to take your shoes and socks off to trim your toe nails is a labor saving plus.