Today, I am taking a look back at a letter I wrote Friday, November 21, 2008 dealing with a principal commonly used in bankrupcy proceedings called Cram-Down.
It seems altogether fitting to revisit it to achieve some degree of perspective of fair play in view of communities whose municipal bonds’ bond ratings are at risk in the face of of dwindling tax revenue.
And when taken in perspective of TARP and the various stimulus programs which have been walked through Congress under the pretext that their purpose was and will be aimed at saving community jobs and services, I have to ask; as what point will America become like Germany …unwiling …and less in favor of supporting the pigs of Europe …those like Portugal Ireland/Italy Greece and Spain?
After all, are the PIGS not at all …all that much different than any number of the hardest hit states and communities here in America?
Without a doubt, The Germans have had to pay an exacting price to, first pay for their country’s reunification …and now shoulder the lion’s share of the impact and fallout of the PIGS’ bail-out.
This has and will continue to assuredly wind up costing the Germans to sacrifice more than a good measure of social quality in exchange for all their investments made in a hope to realize a comfortable retirement under a sound social system …one whose charter has become progressively more and more at risk. (If you are not with us …then, you are against us.) (Reunification costs = 0pportunity costs = Iraq participation …not.) (EU boosters? not?) (Think about this long enough …and it will come to you eventually.) (The Germans …just want to live responsibly …within their means …not outside them.) (Prior to the fall of the Wall, they pretty well ran a ballanced budget until reunification.)
So, tonight is an opportunity to visit the letter below while expanding a related social question pertaining to taking responsibility for the communities in which we live.
As such, I must ask; “…what are state and local governments doing to maintain tight riegns on their budgets so as to exercise responsible fiscal withstraint?”
It seems to me that in the face of lowered property values …rising property taxes are a sad social commentary …a rather bold-faced lie …one in which state and local community governance has all but thrown away prudence and reason in favor of the opportunity to ignor reality and the consequences of neglect …all the while, seemingly hoping that few would take notice …and less would speak up.
In that respect, I will introduce my letter by saying; “…pay no attention to the man behind the curtain …” You better pay your taxes, or they might just cram them higher property taxes …right down your very own-r-shitp’s throats.
Since when did doing less with more translate to fiscal responsibility?
Show me the cuts! Show me the cuts.
I am not one to be counted silently for the slaughter.
Cram Down? vs.Higher Property Appraisals?
Higher Property Taxes? vs. Lower Prices?
Something Does Not Add Up Around Here!
How does that translate to …Spending Cuts?
It doesn’t, does it!?
Friday, November 21, 2008
The following personal editorial comment is offered for the benefit of Barney Franks and Senator Dodd and all other politicians who may be looking to benefit by supporting a potentially damaging principal called Cram-Down.
Some understanding is needed with respect to the ends of this precept’s true deceptive means. The preface of the point I am trying to make is …the end doesn’t justify this means …and that means would be the “Cram-Downâ€ principal with respect to principal..
Looking back a short while ago, I am thankful that the “Cram-Downâ€ provision of the TARP Program was removed prior to it went to the floor for its vote.
Now that the TARP has passed and is taking shape, I must again return to address the destructive spirit of this principal’s precept …and that would be the “Cram-Down’sâ€ path to imperative order the execution of principal.
Congress’ lack of leadership had already executed enough of the value of principal as it is. Why should I believe that their stewardship is worthy of its execution. At this point in time, Cram-Down has no more promise than its single minded, sole purpose …it will generate grass-roots popularity and nothing more …save for further erosion of confidence in our financial institutions. Oh, its implementation will further weaken the economy …serving no good purpose save political popularity …as in Populist kowtowing.
“Cram-Downâ€ for what it is worth is a net negative …an empty promise which is guaranteed to pay negative dividends at a time when we need real solutions …not more “SOMETHING-FOR-NOTHINGâ€ give-a ways.
“Principal Forgivenessâ€ or Cram-Down is a policy which will be destructive in that …it is …at best, merely a political ploy …a play which serves no other purpose than those who back its implementation. It has at the center of its intent a self-serving spirit for its objective in its roots is the corrupt precept aimed at maintaining and self-serving “Powerâ€ “…for the sake of “Power.â€
In other words, Cram-Down is merely a PR gimmick aimed at garnering and leveraging popular sentiment.
It will buy time and change nothing for the positive. It is not a viable positive solution.
Other than this, Cram-Down serves no other purpose …but to further weaken confidence in a badly abused and damaged financial sector.
Damaging this sector with Cram-Down orders would no other purpose.
Instead, it would merely adversely impact and slow the overall economy.
As such, Cram-Down as a Congressional Pursuit …paints a sad political commentary depicting the disingenuous self-serving priorities of our representatives in Congress.
To this end, I offer the following as a suggested read on the precept of Cram-Down: Luke 16:1-12
Weigh its text carefully. If you take ignorance and or indifference to it …great woe is certain to follow.
As is ….
He that is faithful in that which is least is faithful also in much and he that is unfaithful in that which is least is unjust also in much.
All the best,