New Rules and Regulations

New rules and regulations are necessary to provide better safeguards that more accurately reflect the changing "road and weather conditions" of our economic environment.  However, as the pendulum of ethical behavior swings back and forth through time, well-founded rules and regulations are only as good as their level of enforcement.

Had there not been such a significant breakdown in the ethical standard of enforcing the rules and regulations that have been on the books for some time, "crisis" would not be the dominant word used to describe our current economic situation.

When we get behind the wheel of a car, it is the responsibility of each and every one of us to drive their vehicle in such a manner that maintains safety for themselves and others, regardless of what the road and weather conditions may be -- or we pay the price.

Through Core Asset Conservation, the individual takes back control and ownership of their future. By taking the initiative to reduce the level of risks associated with one's core assets, the individual is in a much stronger position to keep themselves and their families in step with the unalterable cycles and milestones of life, regardless of what a changing economic environment may put before them.

Ultimately, ethical systems that stand the test of time are built, maintained and sustained by a preponderance of ethical individuals... a simple fact of life.

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American People Left Behind

"...banks repaying their TARP loans. It's another indicator the banking system is on the road to recovery -- or at least in better shape than this time last year. Of course, that's thanks to Treasury programs [funded by American taxpayers] like TARP and dozens of other Fed programs [which propped up the "Too-Big-To-Fail" banks to the tune of 10 trillion dollars, while at one point Americans had lost 14 trillion in household income] that kept the money flowing when bankers closed their taps [to the little guy.]

We've left our small and mid-sized businesses behind [that employ 80% of our workforce]; and we've left our American people behind... This does not an economy make.

President Obama is trying to nudge banks in the right direction, at least on the surface:

-Make more loans to small and medium-size businesses.

-Increase modifications of underwater mortgages.

-Bring executive compensation under control.

-Give more support to legislation overhauling financial regulation."

http://finance.yahoo.com/tech-ticker/article/390564/Big-Banks-Escape-TARP-But-%22We've-Left-Our-American-People-Behind%22-Lynn-Tilton-Says?tickers=wfc,bac,c,xlf,skf,spy,USB

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The Dollars and Cents of War

"The additional 30,000 troops for Afghanistan will cost an additional $30 billion per year, or roughly $1 million per soldier per year. (It's an extraordinary sum especially considering how relatively little enlisted soldiers are paid; meanwhile, private contractors in Afghanistan now outnumber U.S. forces, The WSJ reports.)"

The point is made with all due respect: Military recruitment has gone up as unemployment has risen. Is this the best type of job opportunity we have to offer our young people?

http://finance.yahoo.com/tech-ticker/article/382618/%22We-Simply-Cannot-Afford-to-Ignore-the-Price%22-Who-Pays-for-Obama%E2%80%99s-Surge;_ylt=AmP5.jXPDAMK1D1e6MxyNEy7YWsA;_ylu=X3oDMTE1NjlmbnVoBHBvcwMzBHNlYwN0ZWNoVGlja2VyBHNsawN3ZXNpbXBseWNhbm4-?tickers=%5EDJI,%5EGSPC,BA,GD,LMT,NOC,RTN

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Have We Become a Nation of "Mama's Boys"

or "The United States of Wussess"? Read on...

http://finance.yahoo.com/tech-ticker/article/382117/The-United-States-of-Wusses?tickers=SPY,DIA,XLF,EEM,%5EDJI,%5EIXIC,QQQQ

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Will it take 20 years for the U.S. to learn its lessons like Japan?

As indicated in my previous post, in its struggle to get back to reality, Japan has finally brought in a new breed of politician who is actually delivering on the campaign promise of bringing real transparency to how government spends the peoples' money.

In the following link Howard Davidowitz lays out how our current problems (artificially low interest rates and a bailout culture, to name a few) are similar to those that have dogged Japan for two decades. 

In their search for answers, the Japanese sought advice, no less, from the same guy who now has our president's ear, Lawrence Summers, Director of the White House's National Economic Council, and he's been singing a different tune recently.

Is it overly optimistic to think that maybe we can learn from the experience of others and not take the same long, hard road back to recovery?

http://finance.yahoo.com/tech-ticker/article/381901/Howard-Davidowitz-Sees-Our-Future-And-It-Is-Japan?tickers=%5En225,spy,dia,udn,uup,qqqq

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A Real Reality Show That Matters: Politicians Who Walk The Talk

Japanese flock to first-ever open budget debate

"In a major break with the past, new Prime Minister Yukio Hatoyama has introduced a public review of the budget. His party, which ousted the long-ruling conservatives in August, has promised to cut wasteful spending and make policymaking more transparent.

The review has gotten plenty of air time on television and seems to be reviving public interest in politics, which many Japanese have come to see as largely irrelevant to their lives.

'This kind of thing is fundamental to democracy. Before, things were too secretive,' said Yoshitomo Yokoyama, a 77-year-old retiree who came to watch. 'This is definitely a positive change.'

A survey conducted Nov. 21-22 by the Mainichi newspaper showed more than 70 percent of respondents supported the budget review.

Taxi driver Koji Iwano said the public review will bring some fiscal discipline to Japan.

'It's clear that the spending until now was irresponsible,' said Iwano, a 43-year-old from Saitama, north of Tokyo. 'If Japan were as careful as many mothers are about watching their family's budgets, we'd be better off.'"

http://news.yahoo.com/s/ap/20091127/ap_on_bi_ge/as_japan_budget_slashing

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Dealing with Reality

The Fed stated in documents released from it closed-door meeting held earlier this month that in its efforts to fuel the recovery it is holding to its bank lending rate at basically zero. It acknowledged that there is the possibility, although "relatively low" in their estimation, that it "could lead to excessive risk-taking in financial markets" causing another speculative bubble.

The Fed anticipates that it could be five or six years before employment levels and the economy return to consistent health.

The Fed also announced that it has tightened its regulations regarding conflict of interest rules governing the boards of directors of its 12 regional banks.

Unlike pre-crisis days, I take it as a positive sign that there is some movement from public officials towards a more realistic and forthcoming attitude about dealing with our current state of affairs.

http://finance.yahoo.com/news/Fed-superlow-rates-could-fuel-apf-2316913196.html?x=0&sec=topStories&pos=main&asset=&ccode

http://finance.yahoo.com/news/Fed-tightens-conflict-of-apf-3362409628.html?x=0&sec=topStories&pos=6&asset

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