Exprexxo Thoughts

There are no S's in Exprexxo!

Tuesday, September 23, 2008

A house fell on the wicked witch of the west..

Dear President of Mexico,

In the near future you may have a lot of US citizens crossing the border to live in your country. This will be a result of the citizen having to default on their preposterous house loan and then needing to avoid paying the looming tax burden leveled on them as a result of their government nationalizing the responsibility for this debt. Many US citizens may decide one nationalized society is as good as the next and start comparing the membership fees of our fine two countries. As the membership cost of the US rises and the benefits fall, many will decide to risk illegal alien status to have a new start at pursuing happiness. These citizens will bring with them their language, culture and general willingness to work hard. Watch carefully though, for amongst them will be the the criminal element of mortgage pushers. These people will do whatever it takes to get your people hooked on illegal mortgages and then create vast illegal off book economies to perpetuate the need of refinancing that will steal the hard earned pesos of your workers.

Based on the experience of labor flow in Europe, it will be in your best interest to welcome these fine additions to your economy as they will cause the growth of your economy that will allow you to maintain a lower membership tax than your northern partner. However, if you do not want them then you may have to start spending tax monies to raid your businesses, schools and hospitals to find the aliens that try to fit in and contribute. Beware that many will have children in your country in order to give their children a better life than they had in their home country. This nomadic behavior is a result of their ancestors proving that it worked when they came to the US from the many countries of the world. If the numbers of aliens get too great, you may be want to buy the incomplete border wall the US was building on your large northern border, as the US will sorely need cash to make payments on all the debt it has chosen to own. Finally, make sure to add "Spanish as a second language" to your education system to insure these imports can participate in your society.

Dear President of the United States,

The decision to take ownership of trillions of dollars in bad loans made by inept bankers is equal to taxation without consent. If loan payment books were tea bags, great groups of people might be dumping them into the waterways to send you a message. Those home owners that are trapped by their social conscience, because they believe "you pay for what you committed to" and "you pay your taxes", are now in double jeopardy as you add a new tax burden to an already inflated house payment. This double jeopardy risks the very constitution contract between "we the people" and "you the elected leader". You might want to consider capitalist ideas based on demand-side economics. Send a message to the citizens of Mexico and the world that they can have permanent US resident status if they properly buy a home in the US. Tell the students of the world they can have citizenship if they pursue and complete a business degree in residence at US University. These two acts will help increase demand for buying and renting homes in the US. It will also increase the tax paying population needed to pay for our increasing debt while increasing the number of savvy business experts needed to grow our economy. You might have to cap or limit these actions but not until the US population reaches one billion. At that level the US will be on equal human capital level with India and China and more capable to compete in the new century.

On the supply side, you might consider the following capital ideas. Do not buy bad loans from failing banks, rather buy the actual houses from "at risk" citizens for the remaining loan value and then employ companies to demolish the home, there by returning the lot to open space. If done in connected groups, the resulting land could be held in trust by the BLM for fifty years as a park. This would increase the the value of the remaining proprieties by reducing supply and increasing quality of life. Offer full US college scholarships to housing industry workers in order to reduce the capability of the US to build new houses. Create advance degree scholarships for graduates of this program to go on for energy research degrees, which would be an investment that returns double dividends. Finally, as an important lesson for us all, please expand the "No Child Left Behind" testing to include Economics 101, Accounting 101 and Financial History so that our children do not make the same mistakes of blindly trusting the financial assertions of their bankers, financial advisers and leaders, as we have.

Signed, the grandson of a generation who saw this movie when it was first released...........


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