September 13, 2008

Welcome to Lie of the Day!

Posted in Humor at 2:47 am by jimwilbur

We hope you enjoy our blog!

 

There are a couple of links in the Blogroll that are worth mentioning.

‘You Suck at Photoshop’, ‘Horrible People’ and ‘Fairy Tales’ are hilarious series of short videos. If you are looking for a laugh, you might want to check some of them out. They are some of my personal favorites.

Another day another dollar, just doing what we are told here at Lie of the Day!

November 14, 2008

Are we lost again….

Posted in Humor tagged , , , , , , at 5:19 pm by keithwilbur

The video is for fun or is it ? now with the election over the people have voted a demand for change now we wake each day hearing all the news on the bad economy losing jobs left and right, war still gos on, the bright spots we hear are few and somewhat foolish like what kind of dog are the Obama kids going to get. The video is made for fun but is there some truth to it?. Or do we need another goal?.

October 22, 2008

Is marijuana a harmfull drug Truth or Lie

Posted in Humor at 4:51 pm by keithwilbur

Effects on Daily Life. from NIDA national institute on drug abuse
Research clearly demonstrates that marijuana has the potential to cause problems in daily life or make a person’s existing problems worse. In one study, heavy marijuana abusers reported that the drug impaired several important measures of life achievement including physical and mental health, cognitive abilities, social life, and career status. Several studies associate workers’ marijuana smoking with increased absences, tardiness, accidents, workers’ compensation claims, and job turnover.

From the Los Angeles Times

Medical marijuana use has a history stretching back thousands of years. In prebiblical times, the plant was used as medicinal tea in China, a stress antidote in India and a pain- reliever for earaches, childbirth and more throughout Asia, the Middle East and Africa. 

In recent decades, medical researchers have investigated marijuana’s effects on various kinds of pain — from damaged nerves in people with HIV, diabetes and spinal cord injury; from cancer; and from multiple sclerosis. Marijuana has also been hypothesized to help with nausea induced by chemotherapy and antiretroviral therapy, and with severe loss of appetite as seen in people with the AIDS wasting syndrome.

So Truth or Lie can 20 million pot smokers be wrong?

October 16, 2008

Are omissions of truth as bad as lies? Truth or Lie?

Posted in Humor at 1:52 am by jimwilbur

I noticed two searches for this exact phrase. I think I can answer this question for the searcher – It depends on the truth and it depends on the lie and it depends on your point of view. I hope that helps.

October 12, 2008

The Large Hadron Collider: The End Of The Universe? Truth or Lie?

Posted in belief, Comedy, creation, faith, fanaticism, Humor, Large Hadron Collider, lie of the day, progress, satire, science, technology tagged , , , , , , , , , , at 3:36 pm by jimwilbur

Watch this video about the Large Hadron Collider. This guy knows what he is talking about! Decide for yourself, should this project be stopped?

How low can you go?

Posted in America, Barack Obama, belief, democrats, faith, fanaticism, lie of the day, life, Personal, Politics, Religion, Republicans, Smear Campaigns, voting tagged , , , , , , , , , , , , , at 1:52 pm by keithwilbur

In Lie of the Day, I try not to take a side. But I just received an email from a relative and the Email I received, pretended to be about religion but had to do with politics.

Normally I just hit the delete button when I receive any Email dealing with mud slinging, half truths or out-right lies…

Let me explain something to you the reader. To understand my reaction, you need to know something about my relatives, family and friends. They are all NUTS! I receive right wingnut emails and left wingnut emails. I try to stay out of the line of fire. I just nod my head yes to which ever wingnut I’m talking with left or right. If I get caught between a right wingnut and left wingnut in the same room, I pretend not to be paying attention, hoping they will go away or at least step outside to kill each other so I do not have to watch or have blood splattered all over me…

I am not going to tell you who I plan to vote for. I will not tell you because my friends and relatives may read this blog and I do not want to give them the pleasure of knowing whether I am a rightie-tighty wound so tight that I don’t fart or a lefty-loosey who is so open minded that my brains might fall out or something in between! 

The forever right wingnut strips the threads and the forever left wingnut falls off the bolt…

The Email below is the kind of crap I will take a stand on.  I am posting the Email to show you the reader the kind of crap that some people pass around, trying to sell fear. I feel sorry for anyone that thinks this kind of CRAP may be true.


V See Email below V     

Subject: Now this is scary!
How long is the beast allowed to have authority in Revelations?

Revelations Chapter 13 tells us it is 42 months, and you know what that is – almost a four-year term of a Presidency.

All I can say is ‘Lord, Have mercy on us!’

According to The Book of Revelations the anti-Christ is: The anti-Christ will be a man, in his 40’s, of MUSLIM descent, who will deceive the nations with persuasive language, and have a MASSIVE Christ-like appeal….the prophecy says that people will flock to him and he will promise false hope and world peace, and when he is in power, will destroy everything…

When I see this kind of crap I ask you
HOW LOW CAN YOU GO ? ? ? ! ! !

October 11, 2008

Is it time for the tar and feathers?

Posted in America, bailout, Barack Obama, Comedy, decision making, Humor, lie of the day, life, Personal, Politics tagged , , , , , , , , , at 5:00 pm by keithwilbur

 

I, like most average Americans, am pissed with what is going on in our country.

We see our life savings being sucked into some kind of banking black hole that we do not fully understand beyond the fact that it is the result of greed . We see our presidential candidates do the same bull crap mud slinging at each other and when asked a straight question  we never hear a straight answer. We are shown short clips on TV why an idea is a good or bad idea. These ads try to sell us fear in 30 seconds or less. Then you are sent a 200 page book so you can be informed. I think to myself, ‘ right I have to work 60 + hours per week and I now I need to read 200 pages to get a bit of truth ( maybe ) ‘, is this the plan?  

Less than a week after the federal government had to bail out American International Group Inc., the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company’s meltdown said. 

The tab included $23,380 worth of spa treatments for AIG employees at the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy…

… During the second Presidential debate Tuesday night, Democrat Barack Obama said the U.S. Treasury should demand the money be returned and top executives be fired. Republican Senator John McCain did not specifically address the spa vacation by AIG employees…

For the complete article visit:AIG Execs Take Spa Vacation

So how is this for an idea; We the people just got screwed and the first thing we hear is that these jokers are taking the tax bailout money we give them and they are going to take a vacation at the tune of what?

What will it take to get some honesty or responsible behavior? Maybe a good old fashioned tar and feathering?  

Truth or lie?

Navy Base Open Day

October 10, 2008

Is it impossible to truely plan our future? Truth or Lie?

Posted in America, Blame, Business, capitalism, decision making, lie of the day, life, lobbyists, opinion, planning, Politicians, Politics, progress, societies, The Economy, voting, Wall Street tagged , , , , , , , , , , , , , , , at 2:01 pm by jimwilbur

For over twenty years of my working life I designed large scale custom homes and developed working drawings and specifications for those homes. I can tell you based on my life experience that planning is very hard and that the hardest part of planning has to do with people. For instance, once after having spent hundreds of hours developing – first a written design program then a series of schematic designs then several versions of preliminary designs, designs that included detailed floor plans, elevations, site plan and sections; the owner was finally ready to sign off on the design so we could start the working drawings, and specifications, the actual documents a builder would use as a guide to build the house.

The married couple who was planning on having this house built was just about to sign off when the wife said, “before I sign off on this design, I have one question”. She pointed to a symbol on the floor plan and said, “my husband and I have both been wondering what this symbol means”. The symbol she was pointing to was one of the most basic floor plan symbols used to communicate an important element of home design, it was the symbol representing a door. So, I quizzed them a bit and I started to realize that they didn’t understand what many of the symbols on the floor plan meant but had been wasting many hours of their time and my time pretending they did and giving me written approval for this design.

At the time, I was a seasoned designer and had designed at least 100+ homes that were built. I began to wonder, how many times I had gone through this design process with people and they really didn’t understand what I was showing them.

I sometimes wonder if that is not a big part of the problem that we as humans have. We are lead down a certain path of planning by well meaning people or not so well meaning people, we think we know what we are approving when we approve it but we do not. We do not really understand and although we are included in decision making through a democratic process, we really have no idea what we are getting, we don’t even understand the basics but we are so opinionated about what we don’t understand!

And the well meaning try to lead us but we foil their plans because we are so opinionated and because we can be so easily mislead by those who are not well meaning or who are only driven by their own self interest and; although you have elected them and paid them to represent you, they expertly misguide you and persuade you to make decisions that help them personally and may very well be against your best interests.

How is it possible for a well meaning leader to succeed in a situation like this that is so deeply rooted in our own human nature? Are we capable of planning our future in any kind of a meaningful way? I don’t know the answer to this, I am curious what others like you might think.

October 8, 2008

Was J. Paul Getty the most practical Self-Help Guru of all time? Truth or Lie?

Posted in Humor at 10:00 am by jimwilbur

I have read so many self-help books over the years and had decided many years ago that most of them just didn’t really help me much. Most of their suggestions were vague or didn’t really apply to the real world I live in. 

Now J. Paul Getty, he didn’t write a book, he just wrote a few words, he didn’t charge us for those words and yet his formula is one that really works!

J. Paul Getty stated his self help formula for success as follows:

“Rise early, work hard, strike oil”

What better or more useful self-help advice is there? None as far as I know.

October 6, 2008

A Ray of Hope in the Economy – Truth or Lie?

Posted in America, capitalism, Cobert, Comedy, crazy life in America, foreclosure, Humor, lie of the day, life, tent cities, The Economy, Trends tagged , , , , , , , , , , , , , at 5:24 pm by jimwilbur

Everyone is so doom and gloom now about the economy but this video just goes to show that the Horatio Algers of this world who are in the right place at the right time can still go from Rags to Riches!!

Halloween is going to suck this year – Truth or Lie?

Posted in America, capitalism, Comedy, decision making, fail, faith, foreclosure, gambling, halloween, Humor, lie of the day, life, losing, Policy, Politicians, Politics, responsibility, tent cities, the poor, treasury, Wall Street tagged , , , , , , , , , , , , , , , , , at 12:44 pm by jimwilbur

Here at Lie of the Day – what can we say? We are just doing our job and hoping for the best.

October 3, 2008

Is it an illusion that reason and Western liberalism will win out over fanaticism? Truth or Lie?

Posted in 911, America, belief, capitalism, decision making, democrats, faith, fanaticism, lie of the day, modernity, philosophy, Politics, progress, Religion, Republicans, societies, winning, World tagged , , , , , , , , , , , , , , , , at 5:38 pm by jimwilbur

Even when I take off the illusionary blinders of my culture, no real reason becomes visible that can explain why reason should prevail over fanaticism or why fanaticism should be thought of as culturally backward and something that will disappear over time.

Instead, I see myself as having been blinded by a cultural myth, blinded to the fact that the law of the jungle is very possibly stronger than reason and modernity and may win out in the long run.

What do you think?

October 2, 2008

Is this any way to run a society of human beings? Truth or Lie?

Posted in America, bailout, belief, capitalism, Economic Pearl Harbor, faith, gambling, lie of the day, managing money, Policy, Politics, Sustainability, tent cities, The Economy tagged , , , , , , , , , , , , , at 4:26 pm by jimwilbur

This is an excerpt from an excellent article by William Blum:

Why do we have this thing called a “financial crisis”? Why have we had such a crisis periodically ever since the United States was created? What changes occur or what happens each time to bring on the crisis? Do we forget how to make things that people need? Do the factories burn down? Are our tools lost? Do the blueprints disappear? Do we run out of people to work in the factories and offices? Are all the services that people need for a happy life so well taken care of that there’s hardly any more need for the services? In other words: What changes take place in the real world to cause the crisis? Nothing, necessarily. The crisis is usually caused by changes inthe make-believe world of financial capitalism.

All these grown men playing their boys’ games. They create an assortment of financial entities, documents, and packages that go by names like hedge funds, derivatives, collateralized debt obligations, index funds, credit default swaps, structured investment vehicles, subprime mortgages, and dozens of other exotic monetary vehicles. They create all manner of commercial pieces of paper, of no known real or inherent value, backed up by few if any standards. Then they sell these various pieces of paper to the public and to each other. They slice and dice mortgages into arcane and risky instruments, then bundle them together, and sell the packages to those higher up in the pyramid scheme. And some of those engaged in this Wild West buying and selling become millionaires. Some become billionaires. They get Christmas bonuses greater than what most Americans earn the entire year. Is all this not remarkable?

And much of the buying is not done with the buyer’s own money, but with borrowed funds; “leveraged”, they call it. The pieces of paper sometimes represent commodities, but the actual commodities are not seen, may not even exist; if the seller demanded the buyer’s own funds, or the buyer wanted to see the goods, the whole transaction would freeze. They sell “long”, expecting the price to rise; they sell “short”, expecting the price to fall; they sell “naked short”, which means they neither possess nor own what they’re selling; a name for each gimmick. They take ever-greater risks buying and selling increasingly-esoteric pieces of paper. It’s a glorified Las Vegas, casino capitalism.

These pieces of paper can be so complex that many of those buying and selling them do not fully understand them; no problem, they just resell the pieces of paper to someone else at a higher price, even when one or both parties know that the paper, while pretending to be payable debt, is virtually worthless. The government, even when it tries to moderately regulate this Monopoly board, can at times also be confused by the complexities of the pieces of paper, compounded by the less-than-transparent practices that envelop the transactions; a potpourri including speculation, manipulation, fraud. Billionaire financier Warren Buffett has called the pieces of paper “weapons of mass financial destruction.”

The boys of finance have been playing their games for years, and so at each stage of the process there are insurance policies allowing the players to hedge their bets; they insure, and they re-insure; hopefully covering themselves against the many risks of the game, often knowing that they’re trading in questionable debts; the giant corporation AIG, a major player in the insurance game, has just been taken over by the federal government. And with each transaction, at each level, someone earns a commission or a fee. There are also other firms whose purpose in life is to go around rating various players and their pieces of paper and their credit worthiness and giving seals of approval which are relied upon by investors. Some of these rating firms, we’re now learning, have been surprisingly incompetent, when not simply dishonest

President Roosevelt, confronted in the 1930s with similar players, called them “banksters”.

It’s all built on faith, as fragile as the religious kind, the belief that something is worth something because it comes with a piece of paper with reassuring words and numbers written on it, because it’s traded, rated, and insured, because someone will sell it and someone will buy it. The same market psychology, the same herd mentality, that went into constructing this house of cards built on pillars of greed can cause the house to collapse in a heap. But the Monopoly players keep their bonuses, and bow out with multimillion-dollar golden parachutes; while tent cities are springing up all over America.

Is this any way to run a society of human beings?

And the government is in the process of trying to bail out these reckless traders, these parasites, rescuing them and their system from their own nonsense. With our money; without a major restructuring of the Alice-in-Wonderland rules of the financial games, without instituting the toughest of regulations, oversight, and transparency, and with no guarantee that the spoiled-little-brat Masters of the Universe will act in any way other than their own narrow self interest, the rest of us be damned.

Capitalism is the theory that the worst people, acting from their worst motives, will somehow produce the most good. 

If you would like to see the whole article here is a link to: The Anti-Empire Report

What is your opinion? Is this anyway to run a society of human beings?

October 1, 2008

Whether Truth or Lie – One Man’s thoughts on how a woman’s brain works

Posted in belief, decision making, guys, Humor, lie of the day, life, men, opinion, women tagged , , , , , , , , , , at 2:57 am by keithwilbur

I have my theory about unhappy people. You know the people that never smile if you say ‘hi’ to them. They give you the I know what you really mean grunt or the stare of death.

Truth is, I found if you’re extra nice toward one of these people they only get worse. Anyway, back to my theory ( and please women this is not a knock on women )  it’s just a theory I have – it’s how a man thinks your thinking works. You may have a different theory and who knows one of us may be right. I think all unhappiness is caused by unhappy women and when their men come in contact with them, they become unhappy to, as no woman will allow her man happiness above her own feelings. Again this is just a theory of mine. What do I know?

So you ask why would women be so unhappy? Well that is simple. Women think to much and hold on to past hurts. Women think that all women’s hurts must be the result of some bastard of a man.

I was talking to my own mother about a movie she saw the other day. She went on and on how the men were all bastards towards the woman in this movie. She was cranky all day over this movie. It’s a damn movie! I’m thinking to myself.

So here it is: whether truth or lie – it is this type of thinking on the part of women that is keeping me single.

Is this a real Management Course? Truth or Lie?

Posted in Business, Comedy, Humor, lie of the day, life, management, Work tagged , , , , , at 12:31 am by jimwilbur

Lesson 1: 

  • A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next-door neighbor. Before she says a word, Bob says, ‘I’ll give you $800 to drop that towel.’
  • After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her $800 and leaves.
  • The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks, ‘Who was that?’
  • ‘It was Bob the next door neighbor,’ she replies.
  • ‘Great!’ the husband says, ‘did he say anything about the $800 he owes me?’

Moral of the story: If you share critical information pertaining to credit and risk with your shareholders, you may be in a position to prevent avoidable exposure.

Lesson 2:

  • A sales rep, an administration clerk and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out. The Genie says, ‘I’ll give each of you just one wish. ‘Me first! Me first!’ says the admin clerk. ‘I want to be in the Bahamas , driving a speedboat, without a care in the world.’ Puff! She’s gone. ‘Me next! Me next!’ says the sales rep. ‘I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pena Coladas and the love of my life.’ Puff! He’s gone.
  • ‘OK, you’re up,’ the Genie says to the manager. The manager says, ‘I want those two back in the office after lunch.’

Moral of the story: Always let your boss have the first say.

Lesson 3:

  • An eagle was sitting on a tree resting, doing nothing. A small rabbit saw the eagle and asked him, ‘Can I also sit like you and do nothing?’ The eagle answered: ‘Sure, why not.’ So, the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.

Moral of the story: To be sitting and doing nothing, you must be sitting very, very high up.

Lesson 4:

  • A turkey was chatting with a bull. ‘I would love to be able to get to the top of that tree,’ sighed the turkey, ‘but I haven’t got the energy.’ 
  • ‘Well, why don’t you nibble on some of my droppings?’ replied the bull, ‘they’re packed with nutrients.’
  • The turkey pecked at a lump of dung, and found it actually gave him enough strength to reach the lowest branch of the tree. The next day, after eating some more dung, he reached the second branch. Finally after a fourth night, the turkey was proudly perched at the top of the tree. He was promptly spotted by a farmer, who shot him out of the tree.

Moral of the story: Bullshit might get you to the top, but it won’t keep you there.

THIS CONCLUDES THE 5-MINUTE MANAGEMENT COURSE

September 29, 2008

Is this what animals write in their diaries? Truth or Lie?

Posted in cats, diaries, dogs, Humor, lie of the day, life, pets tagged , , , , , , , at 10:17 pm by jimwilbur

WHAT PETS WRITE IN THEIR DIARIES…….DOGS RULE !!!

Excerpts from a Dog’s Diary……

  • 8:00 am – Dog food! My favorite thing!
  • 9:30 am – A car ride! My favorite thing!
  • 9:40 am – A walk in the park! My favorite thing!
  • 10:30 am – Got rubbed and petted! My favorite thing!
  • 12:00 pm – Lunch! My favorite thing!
  • 1:00 pm – Played in the yard! My favorite thing!
  • 3:00 pm – Wagged my tail! My favorite thing!
  • 5:00 pm – Milk Bones! My favorite thing!
  • 7:00 pm – Got to play ball! My favorite thing!
  • 8:00 pm – Wow! Watched TV with the people! My favorite thing!
  • 11:00 pm – Sleeping on the bed! My favorite thing!      

Excerpts from a Cat’s Daily Diary…

Day 983 of my captivity…

  • My captors continue to taunt me with bizarre little dangling objects. They dine lavishly on fresh meat, while the other inmates and I are fed hash or some sort of dry nuggets.
  • Although I make my contempt for the rations perfectly clear, I nevertheless must eat something in order to keep up my strength.
  • The only thing that keeps me going is my dream of escape. In an attempt to disgust them, I once again vomit on the carpet.
  • Today I decapitated a mouse and dropped its headless body at their feet. I had hoped this would strike fear into their hearts, since it clearly demonstrates what I am capable of. However, they merely made condescending comments about what a ‘good little hunter’ I am. Bastards.
  • There was some sort of assembly of their accomplices tonight. I was placed in solitary confinement for the duration of the event. However, I could hear the noises and smell the food. I overheard that my confinement was due to the power of ‘allergies.’ I must learn what this means and how to use it to my advantage.
  • Today I was almost successful in an attempt to assassinate one of my tormentors by weaving around his feet as he was walking. I must try this again tomorrow — but at the top of the stairs.
  • I am convinced that the other prisoners here are flunkies and snitches. The dog receives special privileges. He is regularly released – and seems to be more than willing to return. He is obviously retarded.
  • The bird has got to be an informant. I observe him communicating with the guards regularly. I am certain that he reports my every move. My captors have arranged protective custody for him in an elevated cell, so he is safe. For now…………….

September 27, 2008

Is this the attitude a Perfect Employee should have? Truth or Lie?

Posted in America, Comedy, crazy life in America, Humor, lie of the day, life, on the job, satire, Society, Work tagged , , , , , , at 11:19 pm by jimwilbur

1. Never give me work in the morning. Always wait until 4pm and then bring it in to me. The challenge of a deadline is refreshing.

2. If it’s a rush job, run in and interrupt me every 10 minutes to inquire how I am doing. That helps. Or even better, hover behind me, advising my every keystroke.

3. Always leave without telling anyone where you are going. It gives me a chance to be creative when someone asks where you are.

4. If my arms are full of papers, boxes, books or supplies, don’t open the door for me. I need to learn how to function as a paraplegic and opening doors with no arms is good training.

5. If you give me more than one job to do, don’t tell me which is the priority. I am psychic.

6. Do your best to keep me late. I adore this office and really have nowhere to go or anything to do. I have no life beyond work.

7. If a job I do pleases you, keep it a secret. If that gets out, it could mean a promotion.

8. If you don’t like my work, tell everyone. I like my name to be popular in conversations.

9. I was born to be whipped.

10. If you have special instructions for a job, don’t write them down. In fact, save them until the job is almost done. No use confusing me with useful information.

11. Never introduce me to people you are with. I have no right to know anything. In the corporate food chain, I am plankton. When you refer to them later, my shrewd deductions will identify them.

12 Be nice to me only when the job I am doing for you could really change your life and send you straight to manager’s hell.

13. Tell me all your little problems. No one else has any, and its nice to know someone is less fortunate. I especially like the story about having to pay so much taxes on the bonus cheque you received for being such a good manager.

14. Wait until my yearly review and THEN tell me what my goal SHOULD have been. Give me a mediocre performance rating with a cost of living increase. I’m not here for the money anyway.

September 26, 2008

Could we all use a Free Hug in America ( or where ever )? Truth or Lie?

Posted in America, Humor, lie of the day, Personal, trust tagged , , , , , , at 5:24 pm by jimwilbur

Free Hugs – See the video.

Will this be the New Dollar Bill? Truth or Lie?

Posted in America, Comedy, decision making, Humor, lie of the day, life, Politics, responsibility tagged , , , , , , , , at 1:08 pm by jimwilbur

 Has the American economy tanked so badly that our government is issuing new money? I received this prototype from a friend. Will this be the new dollar bill?

Is it true our economy is so bad they are printing new money?

Is it true our economy is so bad they are printing new money?

Sara Palin and the Rape Kits? Truth or Lie?

Posted in America, crazy life in America, Humor, lie of the day, life, Palin, Politics tagged , , , , , , , , at 2:20 am by jimwilbur

This video seems too crazy to be true
[ which being 2008 in America – likely makes it true ]

September 25, 2008

Wallstreetbailout at treasury dot gov Is this letter a hoax? truth or lie?

Posted in America, bailout, blank check letter, hank paulson, Humor, lobbyists, phil gram, treasury, Wall Street tagged , , , , , , , , , at 1:39 pm by jimwilbur

September 29, 2008

The stock market has been dropping today, I think at one point it dropped more than 700 points. Want to know how we got to this point? As I understand, it is actually rather simple. Someone came up with the idea that banks could in essence sell the risk they were taking and the potential profits they could make by loaning money. Banks could do this by packaging multiple loans then selling the loan packages to companies with names like Fannie Mae, Ginny Mae or Freddie Mac who would then assume the potential risks and the potential profits. These companies would then sell these loan packages to other investment companies.

Loans earn interest and a loan instrument has value to an investor because of the potential interest income that loan can generate during the amortization period of the loan. This is only true though if the borrower is a good credit risk and pays off the loan as promised and per the terms of the loan.

Banks over time became excellent at assessing whether or not borrowers were good risks and banks used to have a reputation for being extremely cautious about who they would lend money to. With the advent of being able to sell their risks to companies like Freddie Mac, banks became less concerned about assessing risk and instead focused their concerns on being able to sell loan packages per the criteria established by companies like Fannie Mae and Freddie Mac. This created a situation where their risk assessment was no longer of a high quality so the loan instruments they were selling as investment quality were also of low quality.

To make a long story short, the loan packages ended up be sold to retirement fund investment groups and most retirement accounts are heavily invested in these faulty instruments. So, people who are near retirement age are really going to take it in the shorts if this bailout does not go through.

Fix the problem then figure out who is at fault. Follow the money and make them pay. Seize assets and fortunes. Don’t throw them in jail, tax them for the rest of their lives at really high tax rates like 95%. Let them keep enough to survive but that is all. 

 

You will find the viral, funny letter about the bailout below v.

I recently received this email, do you think it is a hoax or should I respond?

Dear Friend:

I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.  
 
I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.  
 
I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transaction is 100% safe. 
 
This is matter of great urgency. We need blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.  
 
Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.  
 
Yours Faithfully Minister of Treasury, 
 
The Honourable Hank Paulson

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