MONEY: Banks aren’t safe

Friday, June 26, 2009

http://mises.org/story/3507

Dead Banks Walking
Mises Daily
by Doug French
Posted on 6/11/2009 12:00:00 AM

*** begin quote ***

On the other hand, if a legitimate banking system were in place, it would be based upon honoring property rights. Customers making a deposit in a bank expect the bank to guard, protect, and return their money — at a moment’s notice in the case of demand deposits. After all, that person has not traded a present good for a future good. The depositors believe the bank is warehousing the money for them and that it is available to them at any time. This deposit is not a loan — there is no fixed term, which would be required in the case of a loan — and availability hasn’t transferred.

However, we don’t have legitimate deposit banking but a fractionalized banking system that combines deposit banking with loan banking. Those that sympathize with fractionalized banking will contend that time certificate of deposit accounts are in essence loans from depositors, entitling the bankers to use the funds at their discretion for the term of the CD — just as long as the banker has the money ready when the CD matures. But if the money is lent secured by illiquid assets such as real estate, the banker is clearly not counting on those loans to satisfy expiring CDs and must count on attracting new CD money to pay off the old.

“There is no incentive for bank depositors to go to the trouble of determining a bank’s soundness if the government is going to guarantee deposits.”

Bankers, pressured to earn returns for shareholders and protected from bank runs by FDIC insurance, have over time lent not only more of their deposits but advanced the money for riskier projects. James Grant in a recent Grant’s Interest Rate Observer reminisced about National City Bank, which back in 1954 had only lent out 41 percent of its deposits, with less than one percent of the portfolio being real-estate loans.

By the end of last year, the total loan-to-deposit ratio for all US banks and thrifts was 87 percent, and 60 percent of all loans were classified as real-estate secured.

*** end quote ***

Bottom line: Don’t invest in any bank stock.

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Posted by reinkefj

JOBSEARCH: Another silent hazard in the job search

Friday, June 26, 2009

http://www.mercurynews.com/ci_12514244

Google recruiter: Company kept ‘do not touch’ in hiring list
By Steve Johnson, Elise Ackerman and Sue McAllister
Mercury News
Posted: 06/03/2009 07:00:44 PM PDT
Updated: 06/04/2009 10:14:46 AM PDT

*** begin quote ***

A recruiter who left Google last year says that the company had maintained a “do not touch” list of companies including Genentech and Yahoo, whose employees were not to be wooed to the Internet search giant.

That revelation could be significant in light of this week’s disclosure that the U.S. Justice Department is investigating whether Google, Yahoo, Apple, Genentech and other tech companies conspired to keep others from stealing their top talent.

Although Google declined to comment on the list or other aspects of the investigation, Palo Alto attorney Gary Reback, who has been involved in a number of high-profile antitrust cases, said having such a list is not unheard of and not necessarily illegal.

*** end quote ***

Argh!

Hard enough to get a job and the companies limit the opportunities.

A plague on all their houses.

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Posted by reinkefj

GOVEROTRAGEOUS: 10M$ for Cambodian education?

Thursday, June 25, 2009

FROM DRUDGE!

http://www07.grants.gov/search/search.do?&mode=VIEW&flag2006=false&oppId=48068

$10 Million tax dollars to improve education in Cambodia…

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How about improving education in Camden or Newark?

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Posted by reinkefj

GOVEROTRAGEOUS: Obama’s attempt to takeover health care

Thursday, June 25, 2009

http://channel-surfing.blogspot.com/2009/06/line-in-sand.html

Monday, June 15, 2009

A line in the sand?

Hank Kalet

*** begin quote ***

And one of these options needs to be a public option that will give people a broader range of choices and inject competition into the health care market so that force waste out of the system and keep the insurance companies honest.

*** end quote ***

The problem is that with the “government public option” is that having it in the mix will destroy the insurance market.

Just like Catholic parochial schools can NOT compete with “free” public-paid government supplied education.

Once the government has it’s “nose” in the tent, it will destroy the marketplace.

For example, why should an employer pay for insurance when the employees can get it from the government without costing the employer anything. For example, the government will set the rules about what must be covered (i.e., hair plugs), and the “competing insurances” must cover it. For example, the gooferment will define the records its competitors will have to keep and waive that for itself.

The same reasons why we rejected Hillary-care are the same reasons we should reject Obama-care. It’s just a step in the direction of totally government health care.

Sorry, but we can’t afford this non-sense. Nor can we survive having Health Care a la the Post Office. Rationing, and lower standards, will precede outright denial. Dialysis for old folks is expensive. Neonatal is expensive. ERs are expensive.

Well there is always “medical tourism”. But where can we go?

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Posted by reinkefj

QUOTE: Suitable for our congresscritters, politicians, and bureaucrats

Thursday, June 25, 2009

Grass mud horse n. Wildly popular on YouTube, this mythical, alpaca-like creature was conjured by Chinese citizens to protest Internet censorship. Though the grass mud horse looks innocent, its Chinese name—Cao Ni Ma—sounds like “fuck your mother” in Mandarin.

—Jonathon Keats

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For some reason, listening to the President on Healthcare, Barney Frank on Bill O’Reilly, and all the other people who want to tell us all what to do, this seems strangely appropriate!

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Posted by reinkefj

INTERESTING: GSN’s CATCH21 strategy

Thursday, June 25, 2009

http://www.gsn.com/shows/catch21/

Contestants don’t seem to understand the strategy of the final bonus game.

The “power chips” allow a player to discard a card. What they don’t seem to understand is that they have to tale at least ONE card after they use a power chip. So they MUST use ALL of their power chips before they cover their last “less than 10” column. If they blunder and bust, then they lose their bonus. It really is sad. Seen to many players hold their power chips and be force to quit with power chips unused or bust themselves when they blunder past that “point of no return”.

Reinke’s Rule: Players need to use their power chips before making all their columns greater than 10.

It seems so simple to me.

Argh!

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Posted by reinkefj

NEWJERSEY: Take advice aimed at California. Now!

Wednesday, June 24, 2009

http://roomfordebate.blogs.nytimes.com/2009/06/21/california-bailout-reckless-or-inevitable/

June 21, 2009, 9:13 pm
California Bailout, Impossible or Inevitable?
By The Editors

*** begin quote ***

The Obama administration has told California not to expect a federal bailout. So how should the state deal with its $24.3 billion shortfall? Can it save itself? Or is it likely that the taxpayers of Iowa and Utah will end up picking up the tab of the state that represents an eighth of the nation’s economy? We asked Ron Paul and others for their views on what has to happen next.

*** end quote ***

Don’t Reward Exorbitance
Ron Paul, a United States representative from Texas and a medical doctor, is the founder of Campaign for Liberty. He ran for president in 2008 and is the author of “The Revolution: A Manifesto” and “End the Fed.”

*** begin quote ***

Californians know they are overtaxed

*** and ***

Instead of seeking federal aid, California should cut spending, rethink some of its unsustainable public pension programs, tame down the expensive and failed drug war, and repeal regulations that discourage economic growth. According to a 2008 piece by The Independent Institute’s William Shughart, the state owns more than 20,000 buildings and 6.7 million acres of land, a portion of which is “surplus” property that could be sold to private owners.

*** end quote ***

Sounds like advice that New Jersey could use as well!

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GUNS: Teaching self-defense

Wednesday, June 24, 2009

http://ncc-1776.org/tle2009/tle523-20090614-01.html

Letter from A.X. Perez

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In spite of warnings that submission to violent criminals only leads to their becoming more vicious, many liberals continue to advise not arming oneself to fight back, Their claim is that most people lack adequate training to fight back. It would be better to increase training.

Therefore the following is proposed as a change to publicly funded education (as long as we are stuck with public funded education.):

Students are to be trained in self defense with and without weapons from kindergarten through graduation from high school and even into undergraduate school in college. Besides instilling in people the necessary skills to defend themselves this should help instill the self confidence and independent spirit appropriate for members of a society of free people. It should also provide physical activity leading to pulmonary and cardiovascular health, greater physical strength, coordination, and flexibility.

*** end quote ***

Now that’s a great idea. Wish it had been around when I was growing up.

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Posted by reinkefj

SERVICE: ALUMTWEET doesn’t support adding schools?

Wednesday, June 24, 2009

# jasperjottingsIcon_lockhttp://alumtweet.com – Doesn’t have Manhattan Prepless than 5 seconds ago from web

# jasperjottings Just added myself to http://alumtweet.com – Manhattan Prep ’64 and Manhattan College ’68

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Posted by reinkefj

INTERESTING: Massachusetts is the latest example of why socialism doesn’t work

Wednesday, June 24, 2009

http://www.cato-at-liberty.org/2009/06/03/the-economic-case-for-health-care-reform/

The Economic Case for Health Care Reform
Posted by Michael D. Tanner

*** begin quote ***

Ultimately, controlling costs requires someone to say “no,” whether the government (as in single-payer systems with global budgets), insurers (managed care) or health care consumers themselves (by desire or ability to pay). In reality, any health care reform will have to confront the fact that the biggest single reason costs keep rising is that the American people keep buying more and more health care.

*** end quote ***

We have examples of bad results from “health care solutions”:

(1) the VA;

(2) Canada;

(3) England;

(4) Medicare;

(5) Medicaid;

(6) Massachusetts!

Argh!

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