Short Bursts of Sanity         January 18, 2013

            It seems our ECONOMIC history is one of long periods of self-centered excess punctuated by short bursts of sanity.  For example the industrial revolution in this country, that long ascendancy of the robber barons, culminating in the Great Depression.  Then we had a burst of sanity when we realized that there needed to be a safety net for those who fell or got thrown off the train.  We created Social Security, a cost effective way to protect against the economic decimation of our unfortunate fellows.  It was a path to recovery.  We realized that by taking care of them at a subsistence level, we were actually taking care of ourselves too.  We taxed ourselves and became more prosperous as a country. 

            Some corollaries can be found today in tax policy, and health and climate care.  We are still on our selfish journeys, but people are starting to realize that the healthier we can make the least of these, our fellow humans, the richer we become as a society.  The more equality of income opportunity we provide ourselves, the more stable we remain as a country.  And all but the very selfish or uninformed admit that our environmental burst of sanity is overdue.

            When you hear the next Draconian argument that claims we should abandon others and exist in a free-for-all world, don’t be discouraged.  It’s a sign that change is threatening someone’s journey of callous disregard.  It is the harbinger of another burst of sanity.

The Cheater's Waltz

The Cheater’s Waltz                        January 16, 2013

            Most of us heard that “too big to fail” bank excuse and thought, “We’re getting cheated again!”  Meanwhile regulators delay implementation of rules, congress asks the offenders for their advice on how to unscrew things up, and they all play Alfonse and Gaston holding doors for each other.  Enough!

            It’s time for the Absent Without Leaving gang to pass some meaningful legislation that consigns “too big to fail” back into the garbage.  Shake ‘em up, break ‘em up.  Whatever it takes.  AIG considered suing the Fed Gov because their bail out was too small, and getting screwed could be back in vogue.  The problem is clearly not solved.

No penalties have been imposed on the culprits of the economic meltdown.  No actions have eliminated their excesses.  There’s been bluster, but no effective congressional action to eliminate “too big to fail”.  So, what’s the plan?  Just wait for it to happen again?  Throw another debt ceiling tantrum?  Blow a month on Cabinet appointments?  When the next bubble bursts, you will not be able to use the universal, “I wasn’t ready” excuse.  GET SOMETHING DONE! 

            Here’s the deal Capitol hill, we want you to turn “too big to fail” into “too small to screw us all”.  It’s time to end the piracy.  And it’s your job to get it done.  Around here, we think it’s the least you can do.  And isn’t that level of achievement established in the 112^th congress?  Do your job.  YOU are too big to fail. 

Under 100

Under 100     January 14, 2013

            The Law Officer related “Under 100” initiative aims to push law enforcement line-of-duty deaths below 100 annually.  Officer survival is serious business and involves principles and practices for street-duty officers.  

            1. Wear Your Vest.  Kevlar vests defend against often unexpected gun violence and other traumatic events.  If you see a street officer without a vest, ask your local elected representative to discuss “Under 100” with the guiding entity of law enforcement in your area.  Leaders have a duty of care to their street-duty counterparts.        

            2. Wear Your Seatbelt.  Protect yourself by observing this safe habit.  It takes practice—make the commitment.  It’s OK for concerned citizens to make this a topic of meeting discussions where local issues are raised.  It’s not just somebody else’s business.

            3. Watch your speed.  Don’t drive too fast for conditions, and don’t speed without genuine need.

            4. W.I.N.  What’s Important Now? - Prioritize what needs to be done at any given moment to realize the desired outcomes. 

            5. Stay Alert - Pa attention to people and conditions to learn from and adjust to them and survive unexpected negative behavior / outcomes.

            Around here, line-of-duty survival is important.  We acknowledge the risks officers take on our behalf, and their sacrifices.  We want everyone to benefit from the mental discipline that sustains their lives of service to others.  We need them to be there for us when trouble hits, and then go home to their families.

Cliff Deal, Man Of Mystery

Cliff Deal, man of mystery             January 8, 2013

            Cliff Deal had only been in town since November, so nobody knew much about him around here.  The law tried unsuccessfully to send him packing.  They knew he was carrying something.  Now we know what it was. 

He brought extension of tax cuts and unemployment insurance.  He prevented Medicare payments to MD’s from being cut 27% for a year, while keeping grasping hands off Affordable Care benefits.  Postponed the sequester for two months to give congress time to end it permanently (Cliff’s a glass-half-full kind of guy).  He raised about $620 b without tapping 98% of families or 97% of small businesses.  Raised capital gains rates to 20% plus the 3.8% Affordable Care surcharge = 23.8%.  He reinstated deduction phase outs at higher income points and raised taxes 5% on Estates over $5 m.  That’s got to piss about 2% of us off real good.  Oh, and the Farm Bill?  Extended.  Plus some business incentives. 

Talk about dropping your wrecking ball in the stew.  The House a Representatives was doin’ just fine before HE came along!  Why, he behaved like an insolent upstart, snarling up at us as he…stooped to pick up our cuff links…that he dropped…while he was dressing us.  That scoundrel scratched ALL our cuff links.  Now nobody knows where he went.  Oh, but we are goin’ to settle Mr. Cliff Deal’s hash!  We’re pretty sure he’ll be back in a month or so.  We’ll have our revenge!

Money Honey

Money Honey           January 5, 2013

            Money is misunderstood by many; mastered by most who try, using a few basic tools.  First tool / first rule: you don’t deserve those perks and extras you can’t afford just because you are a good person who works hard.  The world doesn’t work that way, and if you work that way, you are headed for all kinds of trouble.  You must take in more than you spend, at the very least over the span of a few years, and once you get your footing you must do it every year.  Develop a budget that works and stick to it. Carelessness can cost you years of comfort, and there are lots of places to get budget help.  Take care of the basics as priority one. 

            Second, you need an emergency fund.  At first, it should at least cover your insurance deductibles (which normally range from $1000 up).  This should be your top priority now.  You don’t get the cable, the camper, the ATV, or the golf clubs yet.  And you can take home-made lunches to whatever work blesses your life.  Put at least $1000 into your credit union savings account for emergencies only.

            Third, if you owe money, get out of debt as fast as you can—do what’s needed for financial independence.  Stop working for money lenders.  Many families pay $600 to $1000 or more in interest each month.  Get rid of expensive vehicles and toys that you can do without.  Replace them without borrowing.  Ask, “How much?” instead of, “How much per month?”  At some point you may (or may not) decide to purchase a home.  Save at least 20% for front money when you buy.  Get help (but not from the bank) deciding what you can afford.  Don’t make yourself house-poor.

            Fourth, if you have been under or unemployed, or are conscious and capable of reason, you know what a friend a BIG emergency fund can be.  Make one!  Make a BIG one.  Some suggest 3-6 months take home pay is about right.  But the economy is volatile and will probably stay that way.  I think your life will be better with a 6-12 month supply of money.  Do it in stages if you have to.  You be the judge.  These are tough times and you have lots of priorities with a claim on your money.

            Around here we think these four things are the starting point for Do-It-Yourself financial independence.  Do you really want to depend on banks, credit card companies, or Wall Street, or Congress (Get real!) for financial well-being?