Showing posts with label Bailout. Show all posts
Showing posts with label Bailout. Show all posts

March 30, 2020

Harris Teeter War Zone

Who would've thought that going to Harris Teeter would be a war zone. 

But this guy in the respirator mask is showing us how bad things can start to get. 

As an avid fan of the show The Walking Dead, I think we are entering TWD territory with the people walking around with their face's half covered and some looking sick with fear and worry or perhaps even with symptoms--who knows!

What is amazing is how things can go from boom to bust, and not just for our economy, but for life and civilization itself at the turn of a dime. 

Yesterday, I read how the CFO of Jefferies Group Investment Bank (NYC) died at age 56 from Coronavirus. 

Even as the Navy's hospital ships Mercy and Comfort enter the ports of Los Angeles and New York City to lend a hand and about 1,000 hospital beds each, it seems like more and more of these deadly cases are hitting the papers and social media every day.

Where does this sickness stop?   

What happens if the virus mutates again and become even more virulent?

How do we ever feel even remotely secure again?

Can we keep taxing our already overwhelmed healthcare system with more and more sick patients?

How long can we keep printing Monopoly bailout money (incredibly, there is talk of yet another multi-trillion Coronavirus stimulus bill even after we just passed this $2.2 trillion one last week)?

Eventually, as we all know circumstances can indeed overwhelm the health and financial systems, and even our governments...thank G-d we aren't there. 

But what we are all beginning to see in the midst of crisis is that "there" isn't really all that far away from "here."

...That life hangs by a truly thin thread. 

And because we can only do so much, this is where we really need to look up to the heavens and ask for G-d's help and mercy.  ;-)

(Credit Photo: my wonderful son-in-law, Itzchak)
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March 26, 2020

Rescue Plan Is Largely Another Shortsighted Bailout


First of all let me point out these photos of the day.

The first one are blue lines on the floor at Whole Foods telling people to keep their social distance from other customers. 

One person crossed the blue line and another customer promptly yelled at them that they were going to get them sick!

The second photo is limiting Nutter Butters ("Nut Butters") to 4 per customer during this coronavirus--sh*t people are downing Nutter Butters like there truly is no tomorrow.  LOL

Finally, looking over the $2 trillion Coronavirus Rescue Plan, I see a lot of bailouts--about half through grants and half through loans.  

On the positive and largely necessary side are increases to unemployment insurance payments and aid to needy households (up to $150,000 for married couples is needy?) and to hospitals and transit.

In terms of the business loans, there are "forgivable" ones to small business, so not sure how that is a "loan."

Overall though, it seems like we are throwing a lot of other money around that we as a country don't have and will end up paying in terms of a higher national debt and higher interest payments for generations to come.  

This is another lost opportunity!

If we were already going to spend big money like this, why not pass the infrastructure spending bill to rebuild our aging roads, bridges, electric grid, aviation, public transit, and expand internet coverage.  This would actually put people back to work and build America again, rather than give corporate handouts that are shortsighted and with squat to show for it for the country's ultimate benefit.

Everyone likes to get freebies, but eventually the country will come back to pay the piper, and there will be bread lines and not Nutter Butter. ;-)

(Credit Photos: Minna Blumenthal)
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May 8, 2010

Technology Cannot Save Us From Arrogance

This week we saw firsthand what uncontrolled deficit spending can do to a modern democratic nation, such as Greece.

For all intents and purposes, Greece is bankrupt except for the ~$150 billion bailout they are getting from the International Monetary Fund and the European Union that will keep them afloat.

In return for the funds, Greece has to adopt “austerity measures” that will limit jobs, programs, and social spending.

The result this week was social unrest, rioting in the streets, and civilians killed.

Other European nations with high deficits to GDP spending are at risk, such as Portugal, Spain, and Italy, as well as major Asian countries like Japan.

The uncertainty and fear of this chaotic situation struck the U.S. stock market hard—with the S&P falling almost 800 points this week, during a time of supposed economic recovery.

Last evening, I watched on the news as a professor from Columbia University debated with the newscaster about whether or not the U.S. was susceptible to the same type of debacle that we are witnessing overseas.

The newscaster took the position that our $13 trillion national deficit—much larger than Greece’s—certainly put us at similar risk, even though we have a much larger GDP.

The professor countered that we are not like Greece—we are different and that what is happening there cannot happen here in America.

Why?

The professor said that he thought that we are more innovative, more technologically savvy, and more able to grow our way—economically—out of this. He laughed at the prospect of America running into any sort of grave financial difficulty, because of “who we are.”

As someone who is focused on the importance of technological prowess, innovation, and progressive change to our economic health, competitiveness and national security, I fully appreciate the vital importance of these factors.

Yet at the same time, it seems to me to be stretching credulity to say that technology and innovation alone can save us from the consequences of fiscal unrestraint.

While I believe in our strong political, social, and economic foundation, I question whether we are truly so different from our neighbors overseas.

For IT leaders, the point is that just because we drive investments in new technology—“the art of the possible”—that does not make us invincible.

While technology can help us grow in amazing ways and potentially solve our most complex and challenging problems, it is not a mystical, magical elixir and cannot solve our deficit no matter how large it gets unchallenged.

It seems to me that our greatest challenge is arrogance.

As a nation, we can by proud of our ideology and many achievements, but we cannot rest on our laurels, thinking that we are immune to the consequences of our mistakes. We must accept that our spending will catch up with us, unless we course-correct.


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