People keep asking how our business is doing. I’ll tell you in a minute, but first, we all need to rant.
While I’m personally generally isolated from the realities of “hard times” caused by war and bad economics, this crisis is a tide that will envelop all of us. The mortgage thing is hitting my friends and family, and I feel like just one little guy in a big team, throwing around sandbags filled with futility.
It is a scary time in our country. It seems like our government — Democrat and Republican — has been goosing the economy (to score political points) for 20 years. With all that goosing, one day reality will come home to roost. I am saddened by the basic silliness of a world that believes it can buy a house for $300,000, see it increase in value in a couple years to $500,000, and think they really gained $200,000. And, if it suddenly drops in value to $400,000, they think they lost $100,000. America is not as wealthy as it wants to be.
My personal business ethic is you must actually produce something of value to really earn money. (I don’t even enter contests to win things. I hate wasting time in my lectures when the organization hosting me has to do a raffle. It insults the hundreds of people who came to hear a lecture, as we all wait for someone to win a tote bag. I know, I’m boring.)
I have tried to instill this into my 80 employees as well as our kids: Design your business well, work hard, produce things that people need, and deserve the profit you reap. The macro-economics of all this are certainly beyond me. Sadly, they seem to be beyond the “experts” too.
Apparently 20 percent of our nation’s economy is in “finances.” Those who are just cleverly rearranging things to make a profit are not earning money…they’re scamming it. It just seems sleazy to me. And the next time some conservative says “get the government off our backs” when it comes to banking regulations — send him a bill for $700 billion. I’m sure Europe has its own problems here, but I believe other countries regulate their aggressive capitalists in the interest of their people. Given the creed of greed in our society, I believe we need a government to regulate our own aggressive and tricky capitalists.
And, while we’re at it, let’s tar and feather a few big shots whose employees are being aced out of their retirements while their bosses walk away with millions of dollars in bonuses. With all the despair among hard-working American families who are losing their homes, how can people be so quick to defend these guys who made millions overnight? I know, it’s not a zero sum game…but that money came from somewhere.
Okay, now for our travel business. I just met with our accountant and I was prepared for the worst. But our profit last year was as good as the year before. We have 80 people solidly on our payroll. We just hired a wonderful new man who was a key web designer at one of those huge Internet sites, and have plans to take our website to new heights. We are producing books, TV shows, and radio like never before. I just spent three days at the radio programmers’ convention and I hear we have a couple dozen new stations interested in picking us up.
We had to raise our prices for 2009 tours to cover the big drop in the value of our dollar, but our tours continue to sell on pace with 2008. To be more specific: We’re currently 9 percent ahead of 2008 sales at this time last year. But 50 percent of those signed up are alums (who’ve traveled with us before) — who tend to sign up early. Sales of our exotic new tours (Baltics, Croatia, etc.) are up, while sales of our bread-and-butter tours (Best of Europe) are down (which is what you’d expect if half of the people are coming back for seconds).
You can imagine that, since most of our expenses are in euros (buses, hotels, and restaurants for 15,000 people’s vacations), when the dollar drops so does our profit. The cost of euros recently dropped from $1.56 to $1.39. I was feelin’ good. Then we have this financial crises and it’s back up to $1.47. We just face the weather and carry on.
With the fragility of our economy and jittery consumers, I expect we’ll all (including my business) take a hit coming up. With the imminent Wall Street bailout, our dollar deserves to plummet. When Germany printed money to pay off the French after WWI, their currency became worthless. It’s a force of nature. While there will always be enough wealthy Americans to keep my company in business, I am saddened to think that, because of the general gullibility of our electorate lately (I don’t blame the president), our shrinking middle class will be less able to travel in the future. Could it be we need real change?
Hey Sarah, Jesus was a community organizer.
rick, let me preface this by saying i love the blog and i think you can write whatever the heck you want to…i mean its not like this site is http://www.ricksteves.com or anything right? ive really tried to avoid the whole political debate but really you need to put as much effort into researching these things as much as you do your guidebooks… sarahs running mate (the classic maverick) tried to actually do something about the financial crisis in 05 (cosponsor-Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190)…and in 03 the bush administration made an attempt to create a regulatory panel and were told by good ol barney frank (d-ma) that things were great with fannie and freddie and if they went bad there wouldnt need to be a govt bailout…its all out there to read about… not to mention, the fancy new black auto consulted some of the big shots you want to tar and feather for economic advice…and received the 2nd largest amount in campaign funds from fannie and freddie in a 20 year period and managed to pocket that after only 143 days in the senate… and jesus could have been a community organizer…but b-rack admitted in his book that he tried and failed…more research please also…love the books and the show -mike
The 4 things we are most upset about are directly traceable to the Clinton administration. 1) Poor economy. Clinton brought us the largest tax increase in our history shortly after taking office. Tax increases torpedo economic expansion – and – it did once again. 2 & 3) 911 & Iraq. Clinton gutted our intelligence community and we got both these events. 4) Financial meltdown. The Clinton administration accused the big lenders of “redlining” and forced them to make subprime loans. Then American greed kicked in and we have bank failures all around and possibly worse coming. The big bang is not in your face yet. The real nuclear blast of finance have been called “Financial Weapons of Mass Destruction” by Warren Buffet. Hathaway is exposed for more than $10 Billion of them. Research “Credit Default Swaps”. Market exposure is currently estimated to be $45 Trillion (the Tr is not a typo). When these unregulated instruments in the insurance and derivitives markets explode we will see true meltdown. The next time Pelosi tells Bush “you made the mess, you clean it up” hand her a mirror so she can see who she should be talking to, The Democrat Party. We should all send our thanks to Bill Clinton a President worse than Carter. The liberal media ( i wanted to say communist media ) is giving Clinton a free pass but we should not.
Of course! Its the liberals fault! Always is. No matter what the problem. Far be it from admitting that the mantra of “deregulate, deregulate” and “get rid of government” and “The free market is all wise and self-balancing” has now consumed itself in pyrrhic victory. Thanks, anarcho-capitalists! Regarding Bush’s concern about Fannie Mae and Freddie Mac in 03, the poster neglects to mention that the Republicans controlled both houses of Congress and the White House at the time. Perhaps they really weren’t THAT concerned or they could have pushed it through. But Never mind all that: the excesses of Capitalism are –all together now: “The liberals fault”! Feels good, doesn’t it? When the government took over collapsed mortgage giants Fannie Mae and Freddie Mac, ousted bosses Daniel Mudd and Richard Syron got out the door with 9.43 million dollars in retirement benefits. When I mention that this seems unfare, my conservative brother accuses me of “resorting to class warfare.” When I mention workers losing their retirement benefits, that’s “a regretable correction that will help the system right itself.” It’s wonderful to always be so completely unable to think for a second that, hey, maybe…just maybe… I should examine my own biases and the consequences of freemarket fundamentalism before blurting out “It’s the liberals fault.” (But its gotta be! Everything is ultimately the liberals fault! Even capitalism run-amok! It’s gotta be, or else my whole belief pyramid will collapse!) The urge to blame the liberals is SO emblematic of the widdening split in America. Hopefully the election will prove that most people now realize that the party of “deregulate! Let Wall Street work its magic!” has now run its course and done its damage and the pendulum will now begin to swing back towards the center again.
George and Mike I agree with what you have put forth in your post and Rick I think you are being too harsh on Americans because this whole real estate inflation has also taken hold of Europe and Britian as well. This is a global financial crisis not an American isolationist crisis. I don’t think there is any country out there that escapes the creed of greed. I am a family law attorney and I can tell you that the disaster on Wall street has devastated Mr and Mrs Smith on Main street. Divorces are up and the one thing that is the most striking is that people no longer fight about who keeps the house but who is going to get stuck with the house. Most people have refied and either taken all the equity out of their homes OR have a second mortgage.equity line on the house so there was no equity left even before the house depreciated. The women who stay in the houses even if they don’t have a second on it are having a hard time refinancing to get the husband off because credit is tight and banks are not doing refis. There is enough blame to go around for everyone. I am deeply troubled that we depend so much on overseas banks to keep our economy afloat and as much as we all want a healthy global economy maybe it is time to swing back to the political science ideology of realism vs liberalism. RIck I am suprised that you are ahead of last year and in six months let us know what is going on once the unemployment goes up and the meltdown consequences have set in. I am a three time alum and although I really want to do another RS tour this year and last year had planned for it, I am having a hard time ponying up in my mind 4K for a tour and 1.5K for the airfare in such uncertain times. I have always admired your business plan and personal dedication and am sure no matter what you will survive this, maybe not grow for a few years but survive.
Rick, I enjoy your no nonsense take not only on America but when it comes to travel abroad. Having travelled with other tour companies over the years like Trafalgar and Imaginative Traveller, I have yet to enjoy one of your “Europe through the Back Door” trips but recently received your 2009 tour brochure. Hoping and praying that one day I can enjoy your Best of Europe in 21 days and revisit some of the spots recommended by you. Keep up the good work and your travels!
I find it funny that here is Rick, a small business owner and entrepreneur. He has political opinions that are contrary to the “Hannity line.” You would think that these conservatives would hold him up as an example, but instead we hear Republican talking points.
Rick, what’s interesting about these replies is how people only selectively read the parts of your post that they want to hear. It’s indeed human nature–and why in thousands of years of civilization we’ve made tremendous technological gains but few if any when it comes to solving social problems.
Rick, I have a question for these “It’s-All-Clinton’s-Fault”ers: If the last eight years had been rosy and we were in great shape right now, would they give Clinton all the **credit**? Didn’t think so…
I think we have made tremendous gains- more children than ever graduate school and unlike europe that supports their children in school until 16 we go to 18/19 and we have programs in place that allow almost everyone to get a college education with scholarships and grants. We have low income houseing for the needy and until Freddy Mac and Fannie Mae mucked up the home mortgage industry by giving loans to people who were not credit worthy because the Clinton administration forced a bill down our throats, people had good housing. Battered women and children can find shelter and children who need medical care can seek it with Medicaid, WIC and temporary aid to families who need assistance (aka welfare). I think we have done a great job with social welfare programs, it is just some who come along and take advantage of it that ruin it for everyone.
Rick, I agree with you that BOTH parties have a hand in the mess we are now faced with, as well as the ‘assumption’ by people that real estate is guaranteeed to appreciate. It’s unfortunate that people are so gullible as to not realize that an investment in real estate is no different than an investment in the stock market. It’s my opinion that stupid and/or ignorant borrowers are as much a part of the mess as our elected officials. The Democrat’s push for banks to offer sub-prime loans to lower income people, while certainly a noble cause, coupled with the ‘teaser’ rates offered by the lenders, was simply financially stupid. Owning a home is a privelige and not a right. When I bought my first home, there was something referred to as a ‘debt ratio’ which I believe couldn’t be more than 33-35% of your gross income. Obviously those days are gone. To paraphrase your point…. work hard and reap the benefits. There are no shortcuts to success. Unfortunately, our nation will suffer the consequences of the gross irresponsibility of a few.
It relates to each person’s personal responsibility. What about the people who used the inflated equity as an ATM cash machine to finance the Escalade and Lexis they had to have or pay off all the credit cards only to run them up again. And yes even the traveler who wanted to take that trip of a lifetime. Everyone has to take ownership and blame at each level-personal,corporate and governmental. Personal for taking on too much debt or impulse/must have buying, corporate for lending too much money to uncreditworthy people and the government for non regulation and non oversight of a industry out of control. Even after bankrutcy, credit is easy to get because you cannot file for it for another 7 years so they know they have you on the hook that you cannot bankrupt against the credit. If you keep you home in bankruptcy if there is no equity you are judgment proof and if you own a corporation you can just bankrupt it when the bills become too high. The bottom line is personal accountability, a good business plan or model and your own personal mission statement and vision that allows you to be a good and trustworthy person.
Go to the present Whitehouse website (or the one listed below) and you will see that deficit spending went from 789 billion in 1983 to 3 trillion in 1992…during the Reagan and Bush years. Those old enough, will remember the “wonderful” tax cuts that turned out to be not so wonderful. Yet, here we go again worse than mindless sheep to the slaughter thinking that cutting taxes doesn’t increase debt and lower the value of the dollar.
http://www.zfacts.com/p/318.html.
Funny, the same guys in charge then are many of the same in charge the last 8 years. I guess people also forget Clinton actually balanced the budget and spending went down.
Non-partisan facts that anyone can see. Those who care about truth more than ideology, anyway.
Debt was down lower in Carter’s administration than any other. So simple isn’t it?
I am worth say, $100.000. I then borrow $50,000 so I can sue my neighbor (go to war), buy a large consumable or otherwise just spend it. I may look more prosperous, but only until the $50,000 is gone and I have to pay off the loan.
This is Republican theory. Borrow your way to prosperity. It is a magic show run by crooks.
Always interesting to see how when things go wrong, terribly wrong, as they have over the past 8 years–in foreign affairs or the economy–Bush apologists, those in who favor the status quo rather than a genuine effort at real change for our great nation, blame former President Clinton, the most popular American politician since F.D.R. BUT when something goes well, the credit, of course, belongs to the incumbent administration. Steves is right: both parties have failed terribly to provide real leadership. But to pretend that we don’t have to change some long-standing habits and our approach to problem-solving in the 21st Century–and yes, admit that we’re just one of many fine nations on this amazing planet–is to bury our heads in the sand and seal our fate as a world leader in decline.
There is no personal responsibility when the gov’t is there to bail people out. Hence we’re all ‘victims’ of the greedy Wall Street villians! Unfortunately we live in a ‘you can have it all’ culture that encourages debt accumulation and keeping up with the Jones’.
Don’t forget that during both the President Reagan & Bush administrations that Democrat’s had solid majorities in BOTH Houses of Congress. It’s the Congress that spends the money!
It is not only the greedy wall streeters but also the fannie and freddie macers that gave credit to people who never should have been able to get a mortgage and greedy real estate agents and mortgage brokers who sold a deal to people they KNEW could not afford the payments. Get the money up front on the con and run like hell to the next and then bundle the bad papers with some good. It’s the appraisors in cahoots with the mortgage brokers who did not want to lose business so overinflated the appraisals so more money could be lent by the brokers who made money out of bad paper- no doc loans, subprime loans. Ricks home page had a great BBC article on how France is averting some of this because they always stuck to the downpayment requirement and percentage of income ratio. From what I am reading it was the democratic congress that messed alot of this up…albeit under the repub administration. Plenty of blame to go around
Hi Rick, I love the view of work hard, save some, spend less. I hope that I do get to keep our tiny place- but I think it’s important to get back to viewing our houses as our homes and not a bank. So, you’ve been to Sweden– they did a good job on their bank takeover. Socialism is looking darn good from a distance. How is it up close? Keep up the good work. Love the blog, love your books.
Interesting article on the U.K….. Seems they have similar economic problems! http://www.24dash.com/news/communities/2008-07-16-UK-offers-lowest-quality-of-life-in-Europe
Go to http://www.heritage.org/research/features/BudgetChartBook/Download.html ==== and see charts on revenue and expenditures by each President for past 40 years. We never had a tax cut, just tax rate cuts. “Clinton actually balanced the budget and spending went down.†No, Newt did that by the Constitution. Congress controls the money collected and the money spent, not the President. Clinton collected the most taxes per family ever. Tax rate dropped from 69% in 1960 to 28 % today, but taxes collected increased every year. The Enviornuts are at fault. The house I bought for $16,500 in ‘55, sold for $600,000 a few years ago. If that price had followed inflation, it would have been worth $125,000. Since Enviornuts stopped houses from being built, demand has far outstripped supply. Therefore low supply because of Enviornuts, caused high house prices because of demand. Then the Demos insisted on loans to people who could not afford one, which caused the financial mess we have now. Blame all Bankers, Economists, Lawyers, Brokers, House Buyers etc. Remember, at Nuremberg it was said that “I was just following orders†does not excuse criminal acts. I don’t like Socialism, but having visited Sweden twice, I always said, “Sweden works.†How or why I don’t know, and neither did the dozens of people I talked with.
Carla said: > John I am unclear about what you are trying to say… Indeed. I couldn’t begin to explain it to you. You need to learn how to see beyond the manipulated statistics you cite as your evidence of the great social network in this country. Looks like you’ve bought into government dog and pony shows hook line and sinker. Rick’s blog doesn’t have the bandwidth for me to explain all the ways you’ve been brainwashed.
> globally we are the highest tax for business globablly. Besides that not really making sense, don’t confuse the rate on paper with WHAT ACTUALLY GETS PAID. (Hint: they’re called loopholes.) Hey, here’s a good one: during Soviet times, citizens in the USSR had more civil rights than we did/do. On paper…
The next time some liberal says “let’s help the middle class with home ownership†by creating “private†entities called Fannie Mae and Freddie Mac, which degenerate into private slush funds to enrich mostly politically well connected liberals, send him a bill for 5 trillion dollars.
John….. Looks like you’ve bought into government dog and pony shows hook line and sinker. Rick’s blog doesn’t have the bandwidth for me to explain all the ways you’ve been brainwashed….LOL..I teach Political Science and you sound exactly like my C level students who have not done the reading but are trying to BS me with generalities…sorry but don’t come to the tennis match with a poorly strung racket and no balls. And BTW the soviets never had more civil rights even on paper than we did or do.
Rick….. are you suggesting that Obama is like Christ? Is this a ‘new’ from of Lutheranism or have you changed religions?
My math may be wrong, but I thought we had the largest tax increase in our history when the income tax was first enacted. Percentage wise the increase would be infinity, and we have had none approaching that since.
Didn’t the Clinton admin give the incoming Bush admin an intelligence paper warning about Bin Laden’s plan to attack the USA? Bushco ignored warning. The attack came on Sept 11, months after Bush took office. Of course, Bush has no doubt built up the CIA and increased employee morale. Nothing helps morale more than blowing the cover of an undercover operative. Plame was a NOC operative for the CIA and going overseas using CIA supplied passports with aliases. How many of her contacts do you think were blown? Do you it will get easier for the CIA’s operatives to recruit contacts in the future? We are less secure as a nation now because our intelligence service has less access to human intelligence. Thank you Bush, Cheney, and Co!
I was happy to see Communism fail in the Soviet Union. While it “reads†nice, it forgets that people matter, and without some reason to work hard and become successful, you need a large police force to keep the people under control. If you have no chance, you have no care. ==== Three times in my life I was directly involved or inconvenienced by the Communists. In 1951, I was a secret spy for the FBI looking for members of the Julius and Ethel Rosenberg spy ring. ==== I am sure many of you have been inconvenienced when you wanted to visit East Europe. Before the Berlin Wall fell, we had visited East Germany, Poland, Yugoslavia, Hungary, The Soviet Union and Czechoslovakia, in 1980, ‘85 and ‘89, and after the Wall fell, we visited in ‘91 and ‘95. We spent about 50 nights and drove our RV thousands of miles in those countries, never a problem. ===== In 1991 we picked up our RV in Germany on the exact day Gorbachev was thrown out of office in the Soviet Union. If a war broke out in Moscow, someone would order the 250,000 Soviet Soldiers in Eastern Germany to come home, and we didn’t intend to be in their way. We could just imagine what the stores, gas stations, streets and highways, would look like, during and soon after the “invasion in reverse†by an Army with little or no food, gasoline, or money. Gorbachev was back in office within a few days, so off we went to Eastern Europe. ===== In 1985 we put our RV in the hold of the TSS Stefan Batory, and sailed from Rotterdam to Montreal, Canada. We could not sail to New York City, because in 1949 Gerhart Eisler, head of the US Communist party, stowed away on this ship and escaped, so it was not allowed to land in the USA ever again. ==== We asked the guard if it was possible for us to “liberate†a piece of the Berlin Wall. As he gave us directions he put his hand over his eyes, as if to say, “If I don’t see you … … .†With his tacit permission, on Sept. 4, 1991 we helped remove the Wall.
Rick, I appreciate this blog entry and this is a HUGE passion of mine. However, I wanted to post something you have already posted – an article on how the French economy isn’t suffering as much. http://news.bbc.co.uk/2/hi/europe/7635327.stm Take note of things like this – French banks are immensely careful about whom they lend money to and, to limit risks, they spread their investments much more widely than those in the US or UK…, Take the level of household debt. In France, it is at 47% of GDP, while in the UK it is well over twice that…, French credit cards are little more than debit cards, so there is no question of simply sticking a couple of flat screen TVs on your credit card and hoping to pay for them later – if there are insufficient funds in your account, your bank will immediately block the transaction…, “Expect two conditions – a down payment of 20% of the value of the house plus mortgage [repayments] which will not exceed 30% of income. People need to take note of the things France has done. Not to say they are right but I wanted to post this article (which Rick already listed in European headlines) before I make any point of my own.
OK Rick, now to address your points. I agree there is plenty of blame to go around here and I am with you on being angry at this mess we are in. I think you come down too hard on the political side of things for the mess we are in. There are people signing their names for 500k mortgages who only made 50k a year and thought they were getting a great deal. Meanwhile, many of these same families don’t know how to live within their means, have large credit card debts, and wouldn’t know a budget if it slapped them in the face. Not everyone is in that situation but there is plenty of stupidity to go around on the consumer side for this mortgage mess. Then there are the banks. Stupid banks weren’t doing their diligence and weren’t using sound business and economic principles when making these loans. Many were unethical in their practices to try and cash in and the wave of housing prices by giving out loans to people who they knew couldn’t afford them but went more with the flow of the economy rather than sound decisions. Rick, the government now has to step in and bail these businesses out. Not because they want to but because the economy needs it. The government shouldn’t have to regulate stupid people and dumb business decisions. So don’t put this on them for stupidity, lack of common sense, and a complete lack of sound business principles. Could regulation have been better? Sure but when people want to be stupid and cut corners and ignore business sense to try and make a buck they will. You can’t fault the govt for not regulating greed and stupidity. Yeah, it stinks to have the economy in the shape we are in. I hate housing prices to be as high as they are. Heck, I live within my means, save, and have not been affected by these bad decisions at all. Yet my bank just went belly up (WaMu). So you are right to be mad. I am right there with you. But when you have to ask the govt to regulate stupidity and bad business decisions, we were already in bad.
OK, I kow I am pushing the limits of posting here but the Clinton, Bush, Palin, Obama, McCain, etc. bashing is just stupid. The daily decisions of businesses and consumers drive the economy more than anything and the best impact the govt has on the economy is indirect at best. Under Clinton, the bubble in the economy burst because dot coms surged without any sound backing or foundation as the $ signs were paper profits, not real ones. The economy stinks now because consumers were stupid to get loans they couldn’t afford and businesses were dumb enough and deceitful enough to give it to them. The fact some of you want to argue politics as the reason for ups and downs and for failures in the economy shows your passion gets in the way of your common (and economic) sense as to how this country really runs. The greatest impact the govt has is indirect in its regulations and the effect it has on the confidence of consumers and businesses as to whether they hire and fire and spend their money.
Ok this is definitely over my limit now and I apologize. But this is where I am with Rick. And I am taking generous liberties in summing up some things I think Rick believes. Europe is struggling now as well. However, the value of traveling there is found in their people and culture and the little things that matter to them. The homes, cars, money, tax rates, etc. don’t matter as much to them. There are things that matter more to them that are found in their quality of life. And that outlook affects their politics as well (whether we Americans agree with it or not). In my opinion, America has become too materialistic, greedy, selfish, abd consumed with our standard of living. If people learned to live within their means and focused less on stuff, America may learn that it is not about standard of living but quality of living. And I believe it is that quality and culture of Europe that many of us admire whether we consciously grasp that or not.
What we were learning — through The New York Times, Newsweek and Roll Call — was ugly. Davis Manafort, the lobbying firm owned by McCain’s campaign manager, Rick Davis, had received $15,000 a month from Freddie Mac from late 2005 until last month. This was in addition to the $30,000 a month that Davis was paid from 2000 to 2005 by the so-called Homeownership Alliance, an advocacy organization that he headed and that was financed by Freddie and Fannie to fight regulation. The McCain campaign tried to pre-emptively deflect such revelations by reviving the old Rove trick of accusing your opponent of your own biggest failings. It ran attack ads about Obama’s own links to the mortgage giants. But neither of the former Freddie-Fannie executives vilified in those ads, Franklin Raines and James Johnson, had worked at those companies lately or are currently associated with the Obama campaign. (Raines never worked for the campaign at all.) By contrast, Davis is the tip of the Freddie-Fannie-McCain iceberg. McCain’s senior adviser, his campaign’s vice chairman, his Congressional liaison and the reported head of his White House transition team all either made fortunes from recent Freddie-Fannie lobbying or were players in firms that did.
LOL..I teach Political Science Sure you do. I get that kind of line all the time. Tell me where and I’ll look you up on the faculty list. Deal? “and you sound exactly like my C level students who have not done the reading but are trying to BS me with generalities.” Here, do some reading yourself–here’s a good list from which to start: http://unvarnishedtruth.wordpress.com/2008/09/05/mandatory-reading-for-ignorant-americans/
Rick writes: “Hey Sarah, Jesus was a community organizer.” True, and Pontius Pilate was a governor. Hmm. Food for thought.
Oh yes, I almost forgot: Jesus was a liberal (anti-war, help the poor, etc) – probably history’s most famous liberal. Of course, he was criticized by “conservatives” in his day too, and apparently after 2000 years that dynamic continues… More food for thought!
Thanks John for the reading tip but I prefer to get my information to form opinions from The Economist, and journals such as Political quarterly, Political research quarterly , Political science quarterly , Political science reviewer, Political studies , Political studies review, Political theology , Political theory , Politics, Politics & policy , Politics (campaigns & elections), Politics and society, Politics and the life sciences, Social and economic studies , Social policy & administration, Social politics, Social science quarterly. Social studies research and practice , Social theory and practice, Society in transition ,Socio-economic review. Sociological analysis , Sociological quarterly. I think they are a little more reliable.
Jeremy I am right there with you, your analysis is spot on, no one forced people to sign on the dotted line. When doing divorces I see credit card debt of anywhere from 25K to 60K as the norm, houses that are valued at about 300K and no equity left in the house because they took it out to pay for 2 luxury cars per family.I see people with 110K for a boat with no equity in it. Now these are not people in their late 40’s and 50’s but most are in their middle to late 30’s, and some may be pushing early 40’s. Most can’t get out of their homes now because to sell the house they would have to pay 7 % to a real estate agent and 3% for closing meaning they would have to bring 30K to the table to close becuase they have no equity in the house and of course have no savings. So what happens they let the house slip into foreclosure and live there rent free for 6 months while the bank takes over. Credit cards sue and get a judgment but they can only garnish a small amount of the paycheck and wih no real estate to lien they lose lots of money that the fiscally prudent pay for eventually. When refi’ing my clients have told me that although they just wanted a refi at a lower interest rate they were talked into taking money out to use in addition to the refi by the lender,who face it is the only one to profit as there is now more to pay back. I just want to know when the american dream became so expensive. What happened to a reasonable home, working car, furniture that was useful and good food- that was the american dream now we all want to live like hollywood glitz and for what to prove that the one with the most toys wins .
Jeremy…… you bring up a good point about our dependance on credit cards. Whn in Salzburg this past summer while in one of Rick’s recommended beer gardens :-), I had a conversation with a local about how I rarely noticed anyone using an ATM or credit card to make a purchase. He simply replied.. ” I bring enough money to drink, and when it’s gone, I go home. No plastic!”. He went on to say that most people he knew live the same way. Now, I’m sure there’s plenty of consumer debt in Europe, but as a tourist, I’ve found it to be much more of a cash economy then what we have over here. I’ve also found it interesting that MOST of the hotels Rick recommends in his books, prefer cash. Of course, this allows them to under report their incomes and save some of the high taxes they would otherwise pay.
Intersting how in todays world ‘conservatives’ do more to help the poor through their time, money and actions than do liberals; who have kept people in poverty through their reliance on big government solutions that have proven not to work! Also, check this out: http://www.realclearpolitics.com/articles/2006/12/who_gives_to_charity.html
Jesus was more than a liberal, he was an outright Marxist. Those passages just tend to be skimmed over today by most people.
Carla: Yeah, those dummies like De Toqueville and Rousseau and Adam Smith and so forth didn’t know anything…
Thanks John for the reading tip but I prefer to get my information to form opinions from The Economist … Ha ha! You mean that magazine that still defends the Iraq war as a success?
“a good point about our dependance on credit cards.†You remind me of people who say guns kill people. We know that people using guns kill people, and people using credit cards spend money. My card is dated 1967, I have charged well over $1,000,000. We paid interest one or two months back in the 1960’s, and not one cent of interest since. We have used that card in 40 or more states, and a couple of dozen countries, and islands. We consider it a convenience, not a bank account, or a loan.
Humberd, I am with you. It is not wrong to have a credit card. I have one and have never paid a penny of interest since I got it back in 99. The credit card itself isn’t bad. But the problem with the credit cards is that people use them as loans in which the balance is never paid off. You and I both know that even if we do pay it off every month. It’s the materialistic American dream to run up a credit card to get what you can’t afford because you don’t know how to live within your means and curb your appetite for material things. So yes, America is dependent on credit card debt even if there are those of us who use them wisely and pay them off. KathyM, this behavior sickens me. Granted, I am not rich and am only 33 years old but I have learned to live within my means, follow a budget to the penny, and save. My house is one of the smallest on the block but I enjoy my life. Been to Europe 4 times in the last 4 years, 16 countries in that time, and 2 RS tours. So there is an appeal to me of the culture and quality of life in Europe who aren’t dependent on this crap people call the American dream. In reality, the American dream is just a prison but most people don’t know they are trapped because everything around them is decorated so nicely.
Learn to live within your income. In 1946, in the US Army, my pay was about $50 per month. On payday I got a haircut, and paid for two more. I stopped at the Movie Theater and bought a couple of tickets. I counted the rides remaining on my bus ticket to town, and made sure I had enough for a round trip each day. I didn’t go each day, but I could. I went to the PX and bought shaving needs, and a couple bars of candy, and I was ready for the month. A week later when buddies came and begged for a loan, I said I would not loan them bus money to visit their mother in the hospital. When I got married, My Most Beautiful Sweetie agreed with that style of budget, and while I remember one time returning some Coke bottles to get a loaf of bread, that happened only once. I never had a W-2 with more than $25,000, but real estate investments (paid for from that wage) let me retire at ago 50, and we spent the next 25 years traveling the world. 968 nights in Europe, 100 nights on Cruise ships, 49 of the 50, and on and on. It ain’t what you got, it’s what you do with it that counts.
So there is an appeal to me of the culture and quality of life in Europe who aren’t dependent on this crap people call the American dream. In reality, the American dream is just a prison but most people don’t know they are trapped because everything around them is decorated so nicely. Well said, Jeremy.
To me the villains are the mortgage brokers and lenders and the only cure now is the bailout. The only thing beyond dispute in the $700 billion plan of Hank Paulson, the treasury secretary, and Ben Bernanke, chairman of the Federal Reserve, to stem the financial crisis is that everyone can find something in it to dislike. The left accuses it of ripping off taxpayers to save Wall Street, the right damns it as socialism; economists disparage its technicalities, political scientists its sweeping powers. The administration gave ground to Congress, George Bush delivered a televised appeal and Barack Obama and John McCain suspended the presidential campaign.America’s financial system has two ailments: it owns a huge amount of toxic securities linked to falling house prices. And it is burdened by losses that leave it short of capital (although the world has capital, not enough has been available to the banks). Mr Paulson’s plan relies on buying vast amounts of toxic securities. The theory is that in any auction a huge buyer like the federal government would end up paying more than today’s prices, temporarily depressed by the scarcity of buyers, and still buy the loans cheaply enough to reflect the high chance of a default. That would help recapitalise some banks—which could also set less capital aside against a cleaner balance sheet. And by creating credible, transparent prices, it would at last encourage investors to come in and repair the financial system. The economics behind this is sound. Government support to the banking system can break the cycle of panic and pessimism that threatens to suck the economy into deep recession. Intervention may help taxpayers, because they are also employees and consumers. Although $700 billion is a lot—about 6% of GDP—some of it will be earned back and it is small compared with the 16% of GDP that banking crises typically swallow and trivial compared with the Depression, when unemployment surged above 20% (compared with 6% now).
No, Rick. Jesus was not a community organizer. He was a King above all kings. And those who trivialize Jesus the Christ to a campaign slogan are no different from the non-believing rabble who tried to crown him as a earthly king, then turned on him later.
THE Economist has a different take on the French economy than the BBC article…all in not well in camelot… http://www.economist.com/world/europe/displaystory.cfm?story_id=12304737… Everyone’s slowing down …some country leaders are just not admitting it to their public as yet …maybe a psychological boost thing?
Rick,Jesus Christ was a PREACHER, NOT A COMMUNITY ORGANIZER. His first sermon was “REPENT, FOR THE KINGDOM OF GOD IS NEAR.†He told his crowds that unless they repent of their sins and believe in him, they will be judged by God. He did not organize the community, the community organized around him. Please do not demean Jesus by calling him a community organizer. No where in the Bible does it state or demonstrate that Jesus was a community organizer. In fact, just the opposite. Oftentimes, chaos ensued after Jesus spoke words the people and their leaders did not want to hear.
I quit reading the comments, so I don’t know all that was said. Personally, I think both sides of the aisle are to blame. What posts I did read, I see the real problem of American politics rearing it’s ugly head. That is the notion of contention and character assassination. I’m tired of it. /// The last three posts are at the top of my screen right now, and I can see two of them regard the comment on Jesus. In this culture of character assassination, I think you folks believe Rick is attacking Jesus. If one believes Jesus to be the son of God, then there is still the fact that He was in the form of Man, and his deeds and acts were in the corporeal world. Whether he actively organized the community or the community organized around him, the term “community organizer” still denotes both of those views.
For the past several days, I have been hearing about something called the Community Reinvestment Act and ACORN on Neal Bortz, Fox News, Glenn Beck on HLN, Dave Ramsey and other centrist sources and commentators. But like the majority of other Americans, I had no inkling of exactly what it was. However, the silence from NBC, MSNBC, CBS, ABC, or CNN has been deafening. I want to know the real “root cause” of this meltdown. I want to hold those behind this calamity “responsible.” If you, too, want to find out, click on the link below and get ready to hit pause quite a bit as you try to digest this. This is not “spin” it’s straight from the Internet gathered by Google. Oh yeah, be surprised, shocked, and wanting to go to Washington and have a Potomac Tea Party. If you still want to wallow in indecision, go right ahead, but don’t ask me to join you. ….http://www.youtube.com/watch?v=H5tZc8oH–o…… Community Reinvestment Act
My, my, my, you did stir up a hornet’s nest this morning. It is funny when strict political partisans begin to discuss “who is responsible”. It is pretty comical to see how well they parrot the talking heads and politic ans who do nothing but spin the arguments. The Republican party has completely forfeited its purpose of SMALL government (we have the largest government structure in our history thanks to Republicans), low taxes, and personal responsibility. Democrats have gone along for the ride and have done nothing but through fuel on the fire. When you are looking for responsibility, the American citizenry has to look in the mirror and realize they are at fault and no one else. I am a proud capitalist; however, I believe capitalism only really works where you have an enlightened society. Today our society suffers from a breakdown in fairness. The rich have gotten super rich and they feel entitled to their wealth while hardworking, less talented people struggle for a livelihood. However, if you do not work, you should not eat is something I still believe in. What we need now is a 90% tax on on funds earned above $1 million in any given year. This tax should remain until some more enlightened standard of compensation completely permeates industry, sports, and government. Please, do not think that Bama man or the old man will change anything. To change government, we need to reject returning congress people back to governement.
In the BBC article, they are not painting a rosy picture of the French economy at all. People aren’t taking vacations, numerous cafes have closed down, and there is no growth at all. The point of the article is that France isn’t doing as badly as other economies. This isn’t to say the French economy isn’t struggling. There are a lot of great points in that article though – people not living on credit, only spending what they have, requiring 20% down and a mortgage no greater than 30% of total income. These are rules everyone should live by (esp lenders) but haven’t been. So France isn’t thriving but they aren’t struggling as much as others.
Hey Rick, Communisum is still alive and thriving in China. Plus Cuba, Vietnam, Laos. Additionally, communist governments control Cyprus, Moldova and Nepal. On the pointless little game being played here about who is to “blame” for all the ills in the world: Primarily, I think it is the little mindless parrots who spout the talking points programmed into their heads from the political parties, churches and medias of their choice…who are to blame. For a painful or interesting experience in alternative information/education sharing, I suggest one sees the movie online at: http://www.zeitgeistmovie.com
And one more point. As I stated above, I believe the greatest effect the govt and leaders have has the confidence they give consumers and businesses. If there weren’t all these reports on how things are going, I don’t think we would have nearly the up and downs that we have now. The govt and the leaders have an indirect effect but have great influence on those that do hiring, firing, and buying and who really run the economy.
Terry: Communism isn’t “thriving” in all those places (would you want to live in Cuba?), but there’s an argument to be made that a large part of the reason why is that we and other capitalist countries have done everything in our power to isolate them and force them into our system. If capitalism is so inherently superior, why not leave Cuba alone and just let it die on its own instead of trying to isolate and destroy it economically? Shows we don’t have the faith in our system that we pretend. But more to the point, there’s no one “communism” or socialism, just as there is no one “capitalism.” The U.S. is actually not a capitalistic country–oligarchical conglomerate led by big business consortiums in allegiance with lawmakers might be the best description. But as you say, people like Carla and others have talking points programmed into their heads and only see what they’ve been shown is there. It reminds me of the bleeding of patients by doctors–done for many centuries and acknowledged by all “educated” people as correct (it was even written up in all the journals and the Economist [the other one!]) even though it ever saved a life. Whenever anyone would point out it didn’t work, they were rebuffed or exiled from the profession. Or take Ignaz Semmelweis. (Don’t have the space to explain who he is–look him up.) People often agree on what’s “true” and what’s “working” despite overwhelming evidence to the contrary, and we’re getting overwhelming evidence to the contrary just today. Will it change anything? Probably not. There’s too much invested in the old way for things to change. Civilizations have to fall or come very close before anyone wakes up, and that often takes hundreds of years. We’ve in for a fun ride, though most people won’t even know it, even if they are checking their 401Ks, because it runs far deeper than that. But what do I know? I don’t teach at a college and I got Cs.
I have been against the boycott of Cuba from day one. I think a few McDonald’s and a bunch of new Chevy Taxis in Cuba, would have done a lot more for those people, than the boycott. So far we have permitted only a one way trip for Cubans, and that does not help Cuba, and from what I heard and read, it hasn’t helped Florida. I have a different plan. We sent 150,000 American Soldiers and billions of dollars to Iraq, and all we have is a terrible mess, nothing good has happened in all these years, and nothing good is seen in the near future. For Cuba, I say we send another 150,000 residents of the USA to Cuba, each with a handful of dollars. We go to Florida, pay cash for 150,000 houses that are owned and lived in by those so-called Cubans, pay cash for their assets, then load the boats, and head for Havana. Eureka, 150,000 people who proudly claim to be Cubans, heading for home, each with a handful of money. Several problems are solved, 150,000 Cubans go home and establish a good Government, using what they learned while here, taking cash money with them, to establish the kind of business needed to establish a Democratic government and a capitalist economy, and Florida loses a bunch of aliens. And now we sell those assets, and the cash returns to the treasury.
Thank you, Rick — you’ve got a lot more common sense than all of Wall Street put together! Please keep blogging on this subject!
Reza said: “Thank you, Rick — you’ve got a lot more common sense than all of Wall Street put together! Please keep blogging on this subject!” Agreed wholeheartedly.
In 1980 we met a family from Communist Poland, in the next site, in the campground in Vienna. The following year, in fear their son would be inducted into the Polish Army, they escaped from Poland, and wrote us a letter. Within a few weeks, on September 29, 1981, 27 years ago today, they arrived in the USA. I just got an E-mail from the son, now a Director at Disney, thanking me for my efforts 27 years ago. They are wonderful friends and wonderful citizens. Who says Travel can not be useful.
Hey Rick! I’m a community organizer too. : ) I do most of my traveling around the country working on environmental and political campaigns, but you’re my guide whenever I go overseas. We do intros a lot at work events and this year often the question was “Who would you run for president and why?” I always pick you–you’d be great at international relations, the environment, drug policy, and now I’d say the economy too. Keep on talking politics, even if you are a tour guide. Traveling is political. Rick Steves 2112!
Yes, Rick Steves 2112!
The surest way to be labelled a liberal is to remind people of facts. Liberal = Open Conservative = Closed While it’s good to be cautious, it’s seldom good to be closed.
Democrats opposed the administration’s and Senator McCain’s attempt to reign-in the bad lending practices of Fannie Mae and Freddie Mac in 2001, 2003, and 2005. They have controlled Congress since 2006 and still did not do anything on their own.
Those bills not passed by the Democrats were loaded with unacceptable “tack on’s” completely unrelated to FM and FMac. They were added as a stunt to make the Dems look bad and they knew they would not pass. The fact is, if the Republicans had wanted real reform, we would have had it.
Thanks to everyone who’s been posting insightful comments to my blog. I always enjoy hearing from this great bunch of “Road Scholars.”
But we’ve noticed that a few people are beginning to dominate the conversation, which makes other readers uncomfortable. It’s important to me that this blog remain open to all. Before you post a comment, please review our posting guidelines. Please stay focused on the blog’s topic, and refrain from conversing back and forth with another individual.
Also, please don’t post more than two comments per blog topic. If you feel you must do so, first ask yourself: Am I really adding something new to the discussion of Rick’s topic? (Simply responding to other posters doesn’t count…and contributes to the negative tone we’re trying to avoid.)
As always, we reserve the right to (and we do) delete comments that we feel are inappropriate–especially if it singles out another individual’s comments, or if it’s a back-and-forth chain between two or three readers.
Rick, it was government meddling in the economy that caused this crisis…if the government had gotten “off our backs,” we’d be much better off. The government, led by the Democrats, has been pressuring banks for years to lower the standards for getting a mortgage, in order to increase minority home ownership. Fannie and Freddie were created by the government for exactly that purpose, and they sponsored loans and mortgages for people who could never be expected to pay them back. And to keep from being looked at too closely, Fannie and Freddie became big contributors to the Democrats…a lot of their bigwigs now work for the Obama campaign, and one is Barney Frank’s ex-boyfriend. Greed was indeed the problem, but it was encouraged by these government entities that sponsored and encouraged the wild credit spree. It all worked fine until home values fell, then the entire house of cards went down. Now the Democrats are pretending that they’re the good guys, and the Republicans are at fault…and thanks to the liberal media, the public believes it. Here’s a link to a hearing from a few years ago where a regulator tried to tell Congress that there was a problem, and the Democrats indignantly replied that only racists could oppose Fannie and Freddie: http://www.youtube.com/watch?v=_MGT_cSi7Rs. McCain co-sponsored a bill to address this problem, and every Democrat on the committee opposed it. Rick, your work has enriched my life, and I like your overall worldview…but on domestic politics, you need to wake up, buddy. Oh, and by the way, Jesus wasn’t a community organizer, he was the savior of mankind and the son of God. Al Capone was a community organizer. :)
Just watched the bailout go down in flames. Stock market reacted by losing one trillion in one day. Oye. Republicans will be out of power for at least a decade thanks to this.
John, at the risk of upsetting the editor Iwil lanser your question briefly. Do a search on “timeline of financial crisis” and you will see plenty of evidence that President Bush, Alan Greenspan and Sen. McCain warned congress 17 times that this crisis was coming. And were pooh-poohed by the Dems, led by Reps. Frank and Waters, and Sen. Dodd. Even former President Clinton admits this.
Cackle cackle cackle blame blame blame cackle cackle peck peck peck cackle cackle blame blame Chop!
It’s not uncommon to have the greatest blunders in American history be completely bipartisan. This is one of those cases. Most Americans believe home ownership is a good thing. Leaders of both parties have endorsed plans to allow affordable home ownership for those who might not otherwise qualify. We’ve made policy decisions to help people with little down payment, insufficient or bad credit history, and insufficient income buy a house. Was that a bad thing? Turns out maybe yes. When home prices begin to correct, it created the root of the disaster we are now facing. The biggest shame is that in Washington, it’s all about placing blame on the other party than focusing on good policy. That’s also a bipartisan reality. As to your slogan: Many were disappointed to the point of crucifying him that Jesus refused to be a “community organizer”. Instead he preached, “Turn from sin and follow God for the Kingdom of Heaven is at hand.” I would like to think all Christians regardless of political leanings understand the truth of Jesus teachings.
There’s enough blame for everyone. Hardly anyone is blameless. Barney Frank and the no downpayment parade? Of course. Newt and W and the whole cut-taxes and spend-spend-spend party? It was fun while it lasted, but they are guilty too …and now our beloved dollar has lost half its value. Most of the middle class has their share of guilt too. Half million dollar McMansions in suburbia? 2 Beemers in the driveway? Everyone who has no plastic debt, raise your hand. That will be the next thing: When the credit card financial avalanche starts. Live within your means. Save some money. Almost sounds un-American, doesn’t it? And please keep Jesus out of it. Using his name to score some cheap political points (doesn’t matter which end of the spectrum) is not something to be proud of. Be humble and examine your own spotless visage in the mirror from time to time. I’m not guiltless. Are you?
Hi Rick Im the Seattle Police officer that saw you walking around at Hempfest and had the conversation with you. I was thrilled for the one on one conversation and to chat with you in person. I have traveled with your books which were fantastic helping me to be a local and saving hundreds of dollars. Just one point. Jesus Christ was not a community organizer. He was and is interested in just one thing and that is for us to be free from sin and unhappiness forever and to be with Him and His Father forever. He rendered to Caesar what belonged to Ceasar and came here to claim what belonged to Him and that is each one of us who is willing to go. He di not organize a political community. He saved us from ourselves and Satan. It is not right to compare any arrogant politician from either party or in fact any of us to Him or what he did or is still doing.I look forward and will be thrilled to take a 2009 or 2010 tour with you as we discussed and God bless you with continued efforts to help us see and understand the world and the wonderful people in it. I am not trying to preach but am trying to put reality into its proper pespctive.
Rick: Quite a few people responding to your letter seem to think “Community Organizer” has only a political function. I have known community organizers who coordinated the efforts of concerned people in many areas. Saving some open space for a community park. Working to preserve a historical church. Working to have a viable blood donation system. Working to set up a new library or buy new books. Working to fund a community center for senior citizens. Emergency preparedness, drug and alcohol counseling, getting behind local athletic programs, infidelity, child abuse, rape, after school programs. I could go on and on and so could all of you…if you put down your religious and political dogma for just a minute. If you don’t think Christ was involved in the issues of daily living, then you need to think about it a bit more. It simply stuns me that people lose the ability to think when they select a point of view and defend it like a bloody barbarian.
To make clear who I am for SarahX Im not the Terry that posted any comments before…different guy….. my first ever comments here on Ricks fantastic site…I posted no political statement or view whatsoever….my point…there is nobody living or anybody who has lived that can be compared to Jesus Christ…especially a politician of either party…even historians who are non Christian agree He was one of a kind. I have no political dogma, I support Rick in discussing his views on his blog and you for your views….I have spent 30 years studying my topic from the scriptures to over 30 other books I have read and studied. He was not a community organizer. He saved all those who would listen and taught them correct principles such as morality fidelity and love of ones neighbors despite their point of view. Those people armed with correct principles then became the community organizers to accomplish the good things you discussed…not dogma just the truth…didnt mean to ruffle feathers to the point of being accused of being a bloody barbarian…just on the one point Rick was wrong…I also was not slamming community organizers..they do great work and as a cop I protect and support them. So Im planning on a Rick tour soon and hope you are too. Ive been to Europe twice and hope to go back about 10 more times. Thanks again Rick for all you do and my 10 min personal conversation with you at Hempfest was a joy.
Note: Some postings have been removed from this blog that violated guidelines regarding directly attacking other posters or when a few people simply converse back and forth among themselves. No discrimination has been made between Republicans or Democrats. Please see the top of the blog if you have not previously read the comment-posting guidelines.
Jesus was a carpenter, not a community organizer…
Let me see if I have this straight. Rick is -convinced- that capitalism is dead and the entire economy of the US (if not the free world) is in shambles and bread lines are just days away. But….. YOUR business is up. Not only that, but all your customers seem to be doing OK, since they can afford luxury vacations. So how to reconcile your beliefs with your own observed reality? The nation (and world) can’t be gripped by a financial crisis worse than the Great Depression while a travel broker who acts as the middleman for those seeking luxury vacations is growing his business. You can believe in a crushing disaster while you flourish only if your base political bias has totally overridden your capacity for logical thought and you have lost all ability to observe the reality around you and have that inform your viewpoint. On a side note, I find it hilarious that you state your guiding principal is the ethic that you should “produce things that people need, and deserve the profit you reap”. Yet the product you sell (exotic new tours of the Baltics, Croatia, etc. and “Best of Europe”) are not what people “need”, but rather what people “want”. And since you are nothing more than a middleman who take money from customers, keeps their cut, and sends on money to the people that actually provide the lodging and transportation, perhaps you are more properly categorized as someone who simply shuffles paper and money around and takes a cut, like a broker. Funny that, ehh?
Hi Steve, Yes, Sarah Palin bad and stupid. Got it. I really have enjoyed your books over the years, and very often use them when I travel. I can’t say I won’t use your information again and I’m not really into boycotting things. However, I like to say you are an utter bore when it comes your political opinion. BLAH BLAH BLAH BLAH ……..same old, same old……thanks, but no thanks.
Rick, I have to tell you I find it almost hard to believe that your business is doing better than last year and you are not worried. Maybe it’s a psychological thing, think good thoughts and it will follow. You side of the coast where most of your tour people come from has been hit the hardest in the housing crisis and wall street debacle. SO I cannot see how this is not impacting your business…maybe your staff is going to take another hit and have to go without days or bonuses or even take a pay cut to stay on board. But something has to give…luxury anything right now is taking a hit…even non luxury like cars which are down on sales 34 percent. So if you are not being straightup honest with us on this what else might you be stretching the truth on. I was set to go on a Oceania cruise to Rio in January but with my retirement and growth funds at risk I canceled the 10,000 trip for my wife and myself, can’t believe others are not chocking on yours as well. And by the way it was socialism creeping into our government through bolstering up Fannie Mae and Freddie Mac that clobbered the Capitalist philosophy.
The cost of the euro is now at 1.387. I think you sounded the death knoll a bit early. The free market isn’t the problem, it’s the mistakes that were made to the free market (like forcing more loans through to unqualified people), as well as corruption in congress. (By the way Obama was the #3 recipient in Fannie Mae/Freddie Mac funds- a position he got to in only 4 years!)
Rick, You’ve only partially stated the Democrats’ talking point when you wrote, “Jesus was a community organizer.” The entire statement was something along the line of “Jesus was a community organizer and Pontius Pilate was a governor.” By that statement, I don’t know if you are trying to elevate Obama to Jesus’s level or trying to knock Jesus down to Obama’s level; in either case, that dog won’t hunt … but let’s go further. I grabbed my Bible (admittedly a bit dusty after having been in the bookcase for so long) and read through all four Gospels. Nowhere in those did I find any instance of Jesus organizing a community to demand low-cost housing, increased Roman taxes on the rich or to get out the vote. So much for Jesus being a commnity organizer. As for Pontius Pilate being a governor, well, he did try to not make a decision (kind of like voting “Present” as Obama has done so many times). That isn’t to say there wasn’t a community organizer; in fact, he appears in all four Gospels. That organizer was the chief priest who gathered the other priests (kind of like Obama and ACORN) and got them to stir up the crowd into demanding the release of Barabas and the execution of Jesus. In the end, the governor caved in to the demands of the community organizer and his mob.
Peer Steinbrück, Germany’s finance minister, who rashly declared on September 25th that America was “the source…and the focus of the crisisâ€, before heralding the end of its role as the financial superpower. Within days, the focus shifted and Mr Steinbrück and his officials were obliged to arrange a €35 billion ($51 billion) loan from German banks and the German government to save Hypo Real Estate, the country’s second-biggest property lender. The hapless Mr Steinbrück is not alone. European banks were collapsing at a dizzying pace even as Christian Noyer, governor of the Bank of France, declared that “there is no drama in front of us.†Hypo Real Estate was just one of five banks in seven European countries bailed out in three days. Belgium, Luxembourg and the Netherlands carved up Fortis, a big bancassurer; Britain nationalised Bradford & Bingley; Belgium, France and Luxembourg saved Dexia; and Iceland rescued Glitnir. Separately, Ireland took €400 billion of contingent liabilities onto the national balance sheet, when it stood behind the deposits and debts of its six large banks and building societies. You have to wonder what Mr Noyer regards as dramatic. By some measures, many European banks look more vulnerable than their American counterparts do—and that is saying quite something, given the past week’s forced sale of Washington Mutual, America’s biggest thrift, and Wachovia, its fourth-biggest commercial bank. In America, outside Wall Street, the banks have lent 96 cents for each $1 of deposits. Continental European banks have lent roughly €1.40 for each €1 of deposits. They have to borrow the rest from money-market investors, who are not especially confident just now. Some Europeans, including the British, Irish and Spanish banks, have housing busts of their own. And they must contend with the toxic American securities they bought by the billion, as well as their own slowing economies.
Meg…I love your comments on this and the other site…the one on Palin…It is very obvious as you fire back when others try to unverify your comments that you actually study instead of quoting talking points. If you read my first comment on the Palin site I give the reasons that the EU economy is in much worse shape than ours and why the euro has dropped in less than one month from 1.60 to todays low that got as low as 1.37 and small change. It took 14 months from July/August 07 until Sept 08 to go up from 1.35 to 1.60. This euro sell off was one of the sharpest ever and happened against a dollar in trouble meaning they are in real bad shape. I am a currency trader and have to know the EU in order to make a living. Your last comment here was point by point very accurate. The interesting point that even the America haters and blamers end up doing….they seem to forget that we saved half of the world at one time in the 1940s and since then have contributed more money to help other nations than the rest of all nations combined. We do it even when they dont like us. So for all of our faults we are still generous to a fault. I love to visit Europe, it is a great place with fun culture and traditions with good people. When the visiting is done I come back here to live for very obvious reasons. Most of the America haters live here too because if they are intellectually honest they know this is still the best. Rick…thanks for all you do and keep it up and relax the euro long term is coming down so we can travel more often…Meg please keep writing your comments are great. For those who keep saying we are isolated…pur past history especially in the last century shows we are the most financially unisolated nation on the planet and our capitalist system financially benefits more than two thirds of this planets nations. Every where I travel in South America and Europe I see hundreds of Americans traveling and learning.
Terry there are so many talented people that comment on here that when the blog disintegrates into nonsense it makes me crazy. I would bet that more than half the people on here are post college educated and yet as the blog rolls on to a high comment count the comments disintegrate into maybe what a high school student would post.What is the point of the arguments both candidates are qualified as are the VP’s it is just a matter of the agenda each puts forth and I don’t see how anyone is going to change anyones mind who they are going to vote for. SOme feel more government programs are important and that is what Obama is pushing and some feel that winning the war on terror is more important and that is what McClain is pushing. So with so polaried agenda’s I don’t see the point of even Rick posting anything political up here. Maybe it would behoove him to pick a different country each week and let us debate and research other countries political systems then at least that would be a learning experience. People would at least have to research before they comment
Important article about what caused the finacial crisis and who did the most damage. It was not Bush. http://online.wsj.com/article/SB122212948811465427.html
Georgia Guy- good article and it basically is what the Fox talking heads have been saying and Neal Bortz for the last two weeks. Except that Neal throws in more food for thought with the CRA and ACORN both pet projects of Obama’s having a large finger in the pie.
I am not able to bring myself to listen to voice media. I rarely turn on the TV and turn my car radio off after I no longer need traffic reports. However, reading tells me that ACORN has had a powerful role in this crisis. The behavior and interventions of ACORN could be responsible for the need for Wachovia to find a buyer. I will explain my position. For the past many years Wachovia and First Union were aggressive in aquisitions and mergers. As a part of the A&M process, the aquiring bank had to prove to the ACORN people that the aquiring bank had met ACORN’s subprime loan reqirements. If the requirements were not met, the merger would not be approved. Since, those 2 banks were agressive in aquisitions individually and then jointly, their need to keep ACORN happy pushed their mortgage division to be aggressive in the subprime area. I bank at Wachovia and asked them about the $8 billion loss. The answer was that retail banking was in GREAT shape but mortgages were going to kill them. 6 weeks later subprime mortgages did kill them. Obama can lie all he wants to. But, he thru ACORN, CRA, and GSE’s and his top buddies Johnson and Raines have played a large role in the current crisis along with the entire Democrat Party. Stalin would be proud of them. The Wall Street fat cats have blame but it is a different blame than they are being accused of. They allowed the ACORN, CRA, GSE crowd to force them to play the game that has now ruined them all. Even if they had yelled, the Democrat congress would have crushed them. Ofheo, the regulator who blew the whistle on Fannie and Freddy was crusified by the Democrats on the banking committee as if he had given all the secrets in our country to China.
Meg, Your comments would be so much easier to read if you used a bit more punctuation. Thanks. Also, not sure of the value in regularly cutting and pasting comments by other people/experts. I’d rather see you digest the information relevant to the subject and then use your intelligence to form the opinion you post. As to the other people who use Fox News as their expert source, it would be good to understand Fox is not news. It is opinion and a stageshow wrapped into one. There is no value in their presentations beyond giving us all a great example of what a henhouse full of chickens would sound like if the spoke American (as John Wayne used to say).
Foghorn- CNN,Fox News and most major newspapers stopped reporting real news and being objective years ago. They are a business. Fox was a reaction to the liberal news media and as such has been very successful. They do put out opinion but at least they report and debate issues with which they do not agree. CNN,MSNBC and the other liberal media purposefully fail to report or discuss facts and events that will not agree with their agenda. The best factual resource that I have found for poitics is the congressional record. It reports the facts of what happened along with who said, did, wrote, and sponsored what. It also reports who voted for or against every bill and is totally unbiased…..Hannitys liberal partner on the show is very articulate and intelligent in presenting an alternative view as is Gretta and Shepard who is also articulate in disagreeing with the Bush administration.
It sounds ridiculous to address someone as Foghorn Heghorn and I cannot bring myself to do so, so I will address you as the gentelman who posted..I feel that at times cutting and pasting information from sources is the most expeditious way to communicate the information when you only have a limited character use on a board. Why reinvent the wheel when someone else has researched the information and it is accurate? Other democrats on here have done the same so why pick on the republican? And if without offending your posting skills may I second the opinion of TerryD or should I just reiterate what he said in a different way?
TerryD, With small exceptions (which prove the rule,) the “Liberal Media” charge which primarily grew to maturity through the nurturing by Fox, is simply a strawman. It is a business tool. It is what kick started their network. It was not at all an altruistic endevour. No “answer” to the left. Just because you hear “Liberal Media” all the time, does not mean it really exists. You have to look at the actions more than the words. Our mainstream media reminds me more of old Soviet media. Remember that? They appeared to offer a bit of counterpoint to the government and administration view, but it was all a dance to make the public feel there was really a difference. Fox (radical right)and their henchmen have tapped into mob mentality. There is a slight counterpoint to them at Air America, but AA really isn’t even close. For all intents and purposes there really is no radical left…in spite of what you hear. If you were an interogator as you say, you should know all this…and more. Unfortunately, any criticizm (contructive or otherwise)by the left of any view held by the right is immediately labelled an attack and at that point all forward movement stops and the mob scene ensues. That is what happens in this and every comment section on Steve’s site lately. Tere is no more real thought involved than there was in Pavlov’s dogs…either in his lab or in the dogs who willingly walked under the tanks.
Well people the G4 met today and Europe is falling to the financial crisis as well. Well what do you know even france is in a panic.http://news.yahoo.com/s/nm/20081004/wl_nm/us_financial1_36
Foghorn- thanks for proving my point. All media ia a business and not any longer objective. Left and right. Thats why I look for objective factual resources to really study. I watch Fox and CNN about once a week to keep up with the dogma from each side. That helps me to see the flaws and extremes on both sides. History will prove that in this country the best solutions have always been found in the middle with good debate and compromise. The founding Fathers were very wise in setting up our form of government to prevent any extreme of taking to much control without the checks and balances of other views, power and control. I dont read about extreme right or left. I have abundant experience with both and both are very scary hence my firm in the middle approach to thought and life. The right spins and the left denies and avoids hence your comment that and extreme left does not exist. It is alive, scary and very healthy as is the extreme right…fact check…the idea and development of the idea of the liberal main stream media originated with Rush Limbaugh. Fox jumped on board after. Rush is extreme but unfortunately on the point of the main stream left media…he got it right. Look forward to your future comments.
I hope everyone is following the crash in Europe and how helter skelter chaotic it is….France is trying to get everyone to get on the same page and act as one union but people are panicking and shoring up their own countries. Apparently Ireland is doing the best job…but for itself. God can you imagine the mayhem among the houseing and financial people….and Spain second largest economy was not even invited to the G4 over the weekend. So the US is not looking so bad as the way we handled things
Terry D, I like to keep tabs on the mainstream, but really just like “information” presented by both sides in a calm enviroment. Certainly, no network matches Fox for total yellow journalism and yet call themselves “fair and balanced”. Air America is equally hateful, but a much smaller fish…with a far smaller audience and influence. I have actually heard people say Fox gives both sides of issues. Even the guy opposite Hannity, who is a geeky, 4 eyed Ichabod Crane is constantly abused and talked over. Fox does this on purpose, of course in their attempt to color everyone in the left as unattractive and unworthy of respect, etc. Amy Goodman at http://www.democracynow.org is a venue where you get in depth interviews on subjects often ignored by the MSM. I’m sure the “right” would not agree, but one seldoms sees any editorial comment on that site. And everyone is always polite. I think it is generally accepted that there are far more right wing “news” sources on tv and radio than left wing. Mcneil/Lehrer is another fair site. Both sites try to get representatives from each point of view. I guess I’m older than you are. I remember Nixon complaining about the Liberal Media…and he had a lot of supporters of his view. I’m sure the charge was around a long time before that. Remember McCarthy? btw, I only said Fox brought the myth of “Liberal Media” to maturity. Sure, Rush had used it like many before him, but Fox took it mainstream. Also, I didn’t say the extreme left doesn’t exist, I said the “Liberal Media” does not exist to near the extent the right does.
You are the Man! Foghorn. I assume you are a man. You state the current media composition precisely. Now, how do we get people to start deprogramming their brains? The way to start is to question everything.
Foghorn-thanks for your comments. I think you and I agree more than we disagree. After reading each of your posts very carefully several times I come to that conclusion with a few exceptions. FDR actually had to contend with a right wing media. Im well into my 50s and remember Nixon discussing the liberal media. As you remember he didnt get alot of sympathy because everyone intelligent knew he was wrong. Same with McCarthy. He was a nutcase and eventually censured by the Senate. My point is this. Yellow journalism as you said is common but where I dont agree with you is that Fox does it more than the others. They are all mostly guilty. There is an extreme need for calm factual debate without name calling( geeky 4 eyed etc)and reciting the facts. By the way if you listen to Colmes on the radio he is quite intelligent. I agree with you about Macneil/Lehrer but not Amy Goodman and I am by no means right wing.It is obvious that you study all sides(most dont) and know your subject even though I may not agree with all your conclusions. I still feel the main stream media is a business and swung left which made Rush and Fox successful when they emerged giving the righties a home. Radio is definately more right wing, TV is a tossup now, but print media is still left of center. According to a CNN story I was listening to a few weeks ago as I was doing some other computer stuff (I wish I could remember which broadcaster it was) 88 percent of graduating journalism students consider themselves liberal and most of them end up in the print media. My apologies for misunderstanding your statement on extreme left wing vs liberal media. What may be of interest to you is that I have been present at several critical events and saw what happened. The next day I read about the event covered by print and TV and was absolutely amazed at how screwed up they were and how they totally misrepresented events to fit their agenda. Euro down, dollar up we can travel more with Rick. Good thing.
Hello Rick from Canada. I would just like to tell you how much we love your website, its easy to get around, easy to find what you are looking for, and all the answers (albeit sometimes I do have to look) are there to find. I understand from your blog that you have hired a new and outstanding webmaster – fantastic. Just one comment, please, please, please make sure that your website remains as user-friendly for MAC lovers as it is now. There is nothing more frustrating for a Mac user, then to get on a website and have compatibility problems. Going on my third tour with you next june, the baltic tour. We can hardly wait. Sue
Recently I’ve been thinking about stock markets, finances and “funny money”, and I wholeheartedly agree that a large part of it is simply fluff. If nothing of value is being created, then no profits are being made. A big lie, in my opinion, in this country and around the world is the idea of “investing”. Investing ain’t investing, its gambling. Gambling with culture, society, your own money, etc. I’ve decided that I will never “invest” again.
TerryD. Agreed on much. Agree to disagree on little. Who was it that said: “All history is bullsh@t”?
Brilliant article that sums it up well: http://www.nytimes.com/2008/10/11/opinion/11herbert.html?em
Rick, Love your products and easy to watch dvd’s. Just spent a bunch of my hard-earned money on your stuff rather than at a book store or from Magellan. Anyway, I’m not interested in your views on weed, Sarah or Jesus. Thanks for good products and good advice. By the way, Rue Clare is basically closed on a Sunday in early October. Jim
Rick, Calling Jesus a community organizer is pathetic especially coming from a Catholic. I find this remark disgusting and reflects secular elitistism. (although, it does fit your glee with Georgetown Jesuits) Was He sent, to be a community organizer? I see many similarities in your personal version of Cahtolicism and N. Pelosis’. A little more time on your knees studying the RCC cathechism will keep you in better standing. Obama/Ayers 08 keep snuffin the weakest among us suffer the holy family