Keeping Banks Safer by Avoiding Dreaded Mark-to-Market Bookkeeping

The Mark-to-Market accounting procedure, on which I commented in my recent blogs on financial meltdown, helped cause global damage.

This created havoc among small and large investors in pension and institutional funds, who look to the long-term and are not interested in daily or even weekly pricing. All true investors got run over by this mark-to-market onslaught.

I have always felt that there are two kinds of investors;.traders who need daily quotes which can be unrealistic. And long-term investors who get misled and potentially hurt, if they act on those abhorrent, volatile short-term quotes.

The financial meltdown was certainly an error by government appointed “experts” thinking too short-term and subject, therefore, to panic–driven decisions.(See the Earl J. Weinreb NewsHole® comments.).

Politically-Induced Industry Changes

The Left would prefer that there be restrictions on industry under the premise of climate control, despite apparent scientific doubts and the uncovering of a scientific hoax.

How much has the Left’s position to do with actual climate and how much with the in-gathering of taxes, with which to implement other purposes?

The main goal of the Left is always to control government, to accomplish whatever the Left wants to achieve.

But other so-called international polluters won’t agree to do what the U.S. is asking its citizens to do. They say we ought to tighten our pollution belts because of our past industrialization. China and India are only starting at the industrialization game. They want us to give them some slack.

But the U.S. says China/India are going to pollute hereafter with a vengeance because their populations and industry are growing much faster.

Apparently our left-leaning politicians will eventually concede to Chinese and Indian thinking.(See the Earl J Weinreb NewsHole® comments.)

Extraordinary Peace-Time Budget Deficits

During World War II, American government spending as a percentage of GDP was about 45%. It is over 20% now, with the administration's spending habits. We can, in fact, become another Greece-like world mendicant.

What does this mean for small and large businesses? Especially those who cannot compete with big government competition, in politically-favored industries?

Government spending displaces funds available for the private sector, particularly as interest rates rise. When that occurs, firms seeking funds are less likely to get them. Yet, they are the entities which mainly create worthwhile jobs.(See the Earl J Weinreb NewsHole® comments.)

Looming U.S. Regulatory Problems

There are a number of looming problems ahead for the U.S. economy, all brought on by regulators in Washington.

The U. S. Labor Department has imposed expensive, perhaps needless investment ‘guidelines” on corporate IRAs.

The Environmental Protection Agency continues to use its heavy hand on the auto and mining industries.

The Dept. of Transportation, aside from mileage standards, has become even more imposing in its attempt to limit the use of petroleum.

At the same time, the infamous Dodd-Frank consumer regs are a hydra that is still being fully written and manipulated by non-elected bureaucrats. Those bureaucrats have a fiefdom with no legislative control. (See the Earl J. Weinreb NewsHole® comments.)

Having the Masses Develop Products and Services

So-calledcrowdsourcing theory. has been used with software development for successful ends. It’s a procedure where the public is invited to contribute individual efforts, up to now mostly technical, for an ultimate goal. The U.S. Defense Advanced Research Projects Agency or Darpa project, for example, was involved with the original internet

While the U.S. military  now wants to put it to further use, there’s talk of expanded commercial usage.  However, aside from writing software of relatively simple objectives in industry, I cannot currently see much universal practicality. (See the Earl J. Weinreb NewsHole® comments.)

Inflation--This Is Just The Start

Fundamentals for massive inflation are in place. Enormous budget deficits and heavy government borrowing to meet unprecedented, massive budget deficits, have done that.

But the present recessionary doldrums, despite what the Washington cheerleaders say, will hold the huge inflationary consequences back only for a while. That is, until the economy recovers.

Despite occasional reassurances from government officials, there will be no way to unwind huge debts in an acceptable manner. Therefore, real inflation is inevitable.

Unless we make huge budgetary cuts, soon.(See the Earl J Weinreb NewsHole® comments.)

Are Franchises Wise Options?

Many publications and other media offer advice on how to buy franchises. They are done for two reasons.

The primary one is to fill space. It’s a winner for getting attention. Lots of folks are interested into entering business for themselves. Give them ideas and make it sound easy, while reducing disadvantages to a minimum, and you have attracted an audience.

But the second reason why these articles appear, is the ignorance factor. They are written by those with poor knowledge of practical franchise experience from a franchisee’s viewpoint.

How many tell you how poorly the average franchisee does? How the average franchisee eventually wants out of his or her contract?

Many cost too much at the outset and each year? And fail to provide the promised management assistance. And, in vast instances, offer little name recognition. (See the Earl J Weinreb NewsHole® comments.)