A Move Towards Socialism - Should the Government be Buying Stocks

Treasury Secretary Henry Paulson at the conclusion of the G7 conference of the major industrialized nations announced that the U. S. Government is going to be buying stocks of financial institutions. Granted, these will be non-voting shares giving the government an equity ownership interest in these financial institutions.

Theoretically the government will not have the ability or power to run these corporations. But I don’t believe for one minute that an organization as large as our government will not have influence over these institutions. Here’s a scenario. The government wants the institution to do something and they balk at it. All the government has to do is to say that they’ll dump the stock if they don’t follow through!

This is already in addition to the $700B package in which we’re already buying distressed assets to remove them off the financial institutions books. That process makes the firms appear healthier and better able to resume what they are calling a ‘normal’ lending operation.

One question is, should the government be getting into the business of purchasing stocks in financial institutions? What does this overall mean to us? We’re already sometimes equated to second class citizens with lobbyists and big business winning out over us. Will this further mean that the financial well-being of these industry giants outweigh that of Joe Schmoe on the street?

This is all happening too fast and it’s being pushed down our throats. We’re being told that this needs to be done and also has to be done quickly. Yes, we’re supposed to believe that our legislators are looking out for our best interest, but we’ve seen enough of big businesses and lobbyists influence on them and the ensuing corruption. I apologize if I appear cynical – I’m just very concerned for us and our well being. Neither do I have the answer either!

The more I learn of these matters, I keep on having the concept of Socialism roaming around in my head. I know, that’s a scary situation in and of itself. Yes, we are far away from such, but doesn’t this concept push us more and more closer to it?

Would love to hear your thoughts.

See you next time at Marc’s Corner…..

Offshore Oil Drilling – Bring It On –NOT!!!

The title sums up what I have to say on this topic. Additionally, this is quite unusual for me to touch upon politics except when it pretty much immediately relates to real estate. Part of my writing this article is two-fold. Firstly, because the idea itself is abhorrent to me. And secondly, because here our government goes again selling out to big business. Seriously now, they are the only ones that are going to profit from this.

With that said, I’m quite disturbed with the notion of our ending a 27 year moratorium on offshore drilling that was actually signed by Pres. Bush’s father and he is currently asking for congress to end. But before we go on with this part of the tale, let’s look at the implications of Offshore Drilling.

Gas prices are high and it’s affecting all of us. Unfortunately, those with less income are affected the most. But the fact of the matter is that gas prices are high and will remain so for a very long time. That’s just a simple fact. Even with Saudi Arabia stepping up their production, it will have little effect on the price of crude oil in the overall scheme of things.

For arguments sake, let’s say that we allow offshore drilling. Actually, let’s stop for one second for a further explanation, we are not just talking about offshore drilling, but that of also drilling in the wilderness. OK, with that said, if we were to drill, it would take 7-10 years before we’d see any results. On top of that the oil that can be uncovered will most likely not have much effect on prices anyway.

Now granted, we do have a major stockpile of crude. So much so, that at today’s consumption it would last us 2½ years. Maybe the government should consider tapping into that as opposed to our environment? Just a thought! I’m not suggesting depleting all of the reserves, but…

The purpose here is not to sway anyone from one party to another. It is not intended to be a political debate. It seems the two prospective presidential candidates are both on opposite sides of this issue. Sen. McCain is following in the President’s footsteps.

What really bugs the bejesus (see I said a nicer word that I really would have liked to say) out of me, is that I hear the Governor of Florida, Charlie Crist, doing a complete turnaround in an apparent political pandering to Sen. McCain because he’s looking for a place on his ticket or in his cabinet. Oh yes another, our illustrious Senator, Mel Martinez, has also supposedly changed his mind and is backing the removal of this moratorium. But we won’t go into his background and his abysmal stay at HUD.

It appears that a good part of this election will be putting the fear in people, just as we’ve seen in previous ones where they utilized so-called ‘terrorism.’ We know that a good part of that turned out to be a bunch of bunk, but by then it was too late. I hope again that history won’t be repeating itself as it so often has.

In his Gettysburg Address, President Lincoln stated that we will have a “government of the people, by the people, for the people.” The sad thing is that in this day and age we need to change the word ‘people’ to ‘big business’ and the saying will have a more accurate meaning. It doesn’t matter how this drilling will affect the general population. That’s of little or no consequence. Is it any surprise that we’re consistently widening the wealth disparity gap in this country?

Enough, let’s get back to the original premise here. The possible harm and destruction to the environment is too great a price to pay. We need to seek other alternatives and learn to wean ourselves off of petroleum based products. I am more concerned about global warming and the impact of fossil fuel on our lives and environment.

I have great concern that a major mistake will be made by opening up our shorelines and wilderness to the drilling for oil. The impact to our environment and lives can be more costly than the price of fuel itself. This is not something that should be taken lightly. Granted, neither should what we are paying for the price of fuel, but this type of consumption has been the American Way. Seriously, did we, as an overall society, learn a lesson from the embargos of the 70’s? Obviously not!

We need to wake up, if we haven’t already. The ‘Me’ society is over with. This idea of conspicuous consumption needs to be reigned in. What kind of legacy are we going to leave to our children? Yes, we as a society have progressed so very much, but at what cost? Enough already, or there won’t be any roses to smell!