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Government deaf to simple plea: less debt!


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2008 Apr 21, 12:30am   39,854 views  307 comments

by Patrick   ➕follow (59)   💰tip   ignore  

nono

Saver: I'd really like lower house prices instead of "affordability" programs that just tell me to get deeply into debt.

Government: How about the nice mortgage debt interest deduction? The more you borrow, the more you save! But if you have no debt, then no tax break. Sorry.

Saver: You're not listening. I don't want debt. I just want your debt-mongering programs to go away, so I won't have to bid against people committing financial suicide with debt. No saver can bid as much for a house as foolish borrowers can, borrowers who don't care about their future bankruptcy.

Government: Say, have you considered what Fannie Mae can do for you? You can get a slightly lower interest rate on your debt since we have taxpayers on the hook in case of your default.

Saver: I still don't want any debt.

Government: OK, we'll increase the Fannie Mae conforming limit, so you can get whopping jumbo loans in California, and we'll make Midwestern taxpayers cover it! Then you get hella deep into debt and the banks will be safe in case you default.

Saver: NO! I still don't want any debt.

Government: You're a tough nut to crack. OK, I'm going to hand you cash and say you borrowed it.

Saver: But I don't want to borrow money!

Government: Too late, I just added your "stimulus" payment to your part of the national debt. Ha! Gotcha.

#housing

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209   OO   2008 Apr 23, 3:26am  

OK, in 5 years I will volunteer myself to be a troll at pt's site.

210   HARM   2008 Apr 23, 3:33am  

@OO,

Why wait?

211   EBGuy   2008 Apr 23, 3:38am  

I am actually looking into buying share at local CSA (community supported agriculture) because they use heirloom seeds and grow seasonal food locally. It is also a way for me to secure my local food source. I am wondering if anyone here has participated in such a program before and what the experience is like?

A CSA's drop-off site is very close to our house, so being a good Bay Aryan we signed up and have been quite pleased. We had done a different CSA the year before and suffered a bit during the winter of our discontent (too much kale and cauliflower). Our current CSA had good variety this past winter. They let you pre-buy either quarterly or up to a year in advance (with a small discount). Maybe I should check to see if they have a 5-year pre-buy plan -- or if they will let you squat on their land to provide "food source protection" when things get really rough. :-) What I have enjoyed most is the variety of vegetables and fruit that you have in your veggie box. Gets you to try different things and experiment with new recipes.

212   OO   2008 Apr 23, 3:44am  

EBGuy,

thanks for sharing the experience. Do you find the price of these veggie comparable to that of Whole Foods? I know they come in boxes each week, but I have no idea how large the "standard" box is.

I think prepayment is definitely a good idea :-)

213   Peter P   2008 Apr 23, 3:55am  

OK, in 5 years I will volunteer myself to be a troll at pt’s site.

As Marina Subprime?

214   Chillie45   2008 Apr 23, 3:57am  

@OO,

FWIW, I split 1 share of a CSA with a friend; a whole share turned out to be too much because I only feed 2 people regularly. If you're okay with down-season produce (I had squash coming out of my ears last yr, being in new england), the tomato season is totally worth it. Whenever I had a lot of something I didn't know what to do with, I improv'd soup or did an ingredient search on allrecipes. Plus you get that warm fuzzy feeling meeting the farmer etc etc.

215   Peter P   2008 Apr 23, 4:00am  

too much kale and cauliflower

My suggestion:

1. Caldo Verde
2. Baked Cauliflower

Both are my favorites.

216   EBGuy   2008 Apr 23, 4:14am  

Do you find the price of these veggie comparable to that of Whole Foods?
I hope so... I really can't comprehend how anything could be more expensive than that! The prices are probably on par with what you can get a farmer's market (which means I close my eyes, write the check, and try not to think about it...)
1. Caldo Verde
We tried that this year. So good and fairly simple. Hmmm.... I'm getting hungry.

217   DennisN   2008 Apr 23, 4:44am  

The CSA concept is growing around Boise too.

www.idahostatesman.com/localnews/story/357739.html

It's really hard though to make the system work for a single guy like me.

218   DennisN   2008 Apr 23, 4:51am  

I don't think Patrick.net "broke" the Costco story. The Seattle paper is all over it and I'm sure they've been working on this story for a few days.

http://seattlepi.nwsource.com/business/360096_foodshortage23.html

219   Peter P   2008 Apr 23, 4:55am  

We are fine because we are not tied to a particular kind of carb. We have choices:

1. Rice
2. Wheat (pasta, bread)
3. Potato
4. Atkins

220   DennisN   2008 Apr 23, 5:04am  

Don't forget the corn tortillas.

221   Peter P   2008 Apr 23, 5:09am  

I prefer corn bread.

222   EBGuy   2008 Apr 23, 5:37am  

Slow day. How about this for news. From the Berkeley Daily Planet article:
One industry official said Berkeley remains something of an island in a troubled market. “People are always going to want to live here,” he said.
Yes, they will -- but at what price?

1731 6TH St is a 3bed/2bath home with 2158sq.ft. near vaunted Fourth Street shopping.
Now on the MLS for $457,000 .
Sold on 1/26/2006 for $900,000.
Foreclosed on 12/12/2007 for $770,106, by wait, guess ... yes, Countrywide. Yikes, this one actually sent chills down my spine.

223   DennisN   2008 Apr 23, 5:45am  

Then there's always couscous and falafel.

224   Peter P   2008 Apr 23, 5:47am  

Couscous?

Somehow I immediately associated it with slow-cooked short ribs. Am I weird?

225   OO   2008 Apr 23, 5:48am  

Thanks Chillie. It turns out most of the CSAs are full, so I have to sign up on the waiting list.

Local food security, people, local food security...

226   DennisN   2008 Apr 23, 5:52am  

I always associate it with a Berber dinner of couscous and lamb shanks.

227   Peter P   2008 Apr 23, 5:56am  

Yes, lamb shanks too!

But I prefer leg of lamb and lamb chops. Mint jelly is essential!

228   BayAreaIdiot   2008 Apr 23, 6:24am  

EBGuy
do you mind naming the CSA you use? Since you've had a good experience, I'd like to look them up and maybe try the out, see how they compare to my current one.

229   northernvirginiarenter   2008 Apr 23, 6:36am  

I've used numerous CSA's, they are great. Nearly all full in Northern Virginia area also, all waiting lists.

I dumped them due to heavy travel schedule and "inconsistent" cooking companions. Gardening is fabulous therapy, though I'm mostly just feeding the deer these days. They are like rats in these parts, and the only fencing that works is the pricey electric 9 footer type that the vineyards all use. With global heating, look for a movement towards gardening and a rejection of grass lawns and associated lawn mowing.

230   BayAreaIdiot   2008 Apr 23, 6:41am  

NVR
are you saying you habitually electrocute Bambi?

231   northernvirginiarenter   2008 Apr 23, 6:45am  

The NY Sun and reporter there broke the story on Costco, which has been picked up now in headlines globally. It is leading the local network news here in DC currently.

I'll say this though, it wouldn't suprise me to much if my posting it here was an early contribution to the fire rapidly spreading. It would have done so anyway, but....some patrick reader forwards it to someone, who sends it to 50 friends, and we've got conflageration.

I'd also bet Patrick readers comprised the largest group of early readers aware.

Of course the government controlled media in China are front paging it, they need to counter their restless population who are not very pleased with local food inflation there.

It is a non story in many ways. "Rationing" is such a hot word, brilliant attention getter if not a bit inflamatory.

232   northernvirginiarenter   2008 Apr 23, 6:54am  

No, not electrocuting any deer...at least yet. Fence is outrageously expensive and I don't have one. The fence just sends a strong message to them I suspect, though I wouldn't want to touch one myself. (note to cityfolk on this list, it is not wise to urinate on an electric fence)

If you were referring to the ex-girlfriend dining companions, I generally just show them the door without any electrocution involved. :-)

There are 20-30 deer in my yard every morning and evening, and on a typical nighttime ride to civilization, it is not unusual to count over 100 on a 20 minute ride.

233   OO   2008 Apr 23, 7:18am  

Now I heard that the rice shortage story even got on CNBC.

I hate to say this, this is more likely than not caused by a bunch of rice-staple immigrants reading about shortage back home and reacting in the similar fashion at Costco. Most Americans don't even eat rice, if anything, the most common rice type should be superfino, not the Kokuho rice at Costco.

However, a much more likely scenario is personal entrepreneurship. When I read about the rice shortage and riots, the first thing that crossed my mind was, hmm, maybe I can ship some California rice there to make a profit. I bet someone already took action.

234   EBGuy   2008 Apr 23, 7:20am  

The NY Sun and reporter there broke the story on Costco, which has been picked up now in headlines globally.

Another first, the great Internet Rice Panic of 2008. I swear when we were sitting around the dinner table last night and I searched rice rationing at Google news the only stories in the US that came up were NVRs Sun article and the local newscast from CBS5 (both with April 21 datelines) that I had mentioned in my "Great Depression" post (on this thread). It is rather humorous. I mean, you think Costco might have had the sense to ration rice at say, all its Midwestern outlets, instead of in the heart of the freakin' Silicon Valley where it is a staple. Heck it is a staple at my home and I'm not Asian. And then all the $200k earning couples get on the internet and tell folks back home there are food shortages.

235   EBGuy   2008 Apr 23, 7:21am  

Whoops, see that OO and I are thinkin' alike again...

236   Peter P   2008 Apr 23, 7:21am  

However, a much more likely scenario is personal entrepreneurship. When I read about the rice shortage and riots, the first thing that crossed my mind was, hmm, maybe I can ship some California rice there to make a profit. I bet someone already took action.

Yep. A true capitalist will see any crisis as an opportunity. It is not wrong to exploit because Free market will ultimately deliver the greatest good for all.

237   skibum   2008 Apr 23, 7:22am  

the most common rice type should be superfino, not the Kokuho rice at Costco.

More likely Uncle Ben's, I'd guess.

238   OO   2008 Apr 23, 7:23am  

OK, now this rice hoarding thing is spreading to Walmart and Sam's Club.

I think someone ought to be camping out at LAX ports checking on outgoing cargo ship. This is definitely not a food shortage news in the US, this is a rice shortage story fueled by pricing arbitrage, from West to East. If Americans are truly hoarding for the fear of running out of food, why the heck are these white guys dipping their hands into our staple food? Hey, get back to your pasta please.

239   Peter P   2008 Apr 23, 7:25am  

I think food speculation is a good thing. At least, it provides trading opportunities. At best, Free Market will have a chance to regulate over-population.

Besides, higher prices must be good right? :)

240   Peter P   2008 Apr 23, 7:26am  

Ok, I need to "hoard" some rice now. When prices are good, can I just sell rice on craigslist? What should be the exit strategy?

241   OO   2008 Apr 23, 7:33am  

Ok, now this is really getting outta control.

The Chinese yahoo equivalents are now putting Food rationing in America on their headlines. One of the articles says, "even rich areas like the Silicon Valley has to go under rice rationing".

How did a Costco outta-rice story in Mountain View (at least 30% Asian population) morph into a pan-American food rationing news headline?

242   Peter P   2008 Apr 23, 7:35am  

How did a Costco outta-rice story in Mountain View (at least 30% Asian population) morph into a pan-American food rationing news headline?

LOL! This is becoming funnier and funnier.

243   Peter P   2008 Apr 23, 7:48am  

Costco should have implemented rice auctioning instead of rationing. It should display the greatness of capitalism.

The best defense against food shortage is an efficient market.

244   northernvirginiarenter   2008 Apr 23, 7:57am  

Wow, it is absolutely nuts. The great rice panic. To think we here might have played a small early part.

It is only going to feed on itself. I have a friend who told me he picked up a couple big "bags" this afternoon even though he doesn't eat the stuff.

My local grocery 12 midnight EST was fully stocked, all types. I wonder what their rice shelf looks like right now. Sheeple see that on the news and feel compelled to get theirs before it is all gone.

LMAO

:-)

245   northernvirginiarenter   2008 Apr 23, 8:03am  

OO

With you on the arbitrage theory, better than my expat asian hoarding theory.

I'd just add that the most likely "hoarders" are costco, walmart, and ilk sitting with warehouse inventory. Accelerate returns. They may just be doing it themselves, or better yet montetizing forward contracts so that their own supplies reduce.

OK, the NBC nightly news lead:

1. Hillary's win in PA

And #2. "RATIONING" OF RICE by major US retailers

Let the great rice panic begin! :-)

246   Peter P   2008 Apr 23, 8:19am  

Rough Rice is up more than 2.5% today on CBOT:

http://quotes.ino.com/chart/?s=CBOT_RR.N08

247   EBGuy   2008 Apr 23, 8:19am  

And #2. “RATIONING” OF RICE by major US retailers
Hmmm, my last words to my wife at the table last night were (cribbed from a CR poster): Don't panic. But if you do, make sure you are first.
I really hope she picked some up today. :-) Although, I am less worried about it at this point than I was last night... I can always conduct a raid off Peter P's cache.

248   Peter P   2008 Apr 23, 8:22am  

Don’t panic. But if you do, make sure you are first.

First rule of panic: be the first to panic. :)

I can always conduct a raid off Peter P’s cache.

Since we don't cook much we have less than 1lb of rice at home. We have some macaroni though.

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