Tuesday, July 12, 2005

Israel Diary--Tuesday

Arrived today to spend the week with my 24 year old daughter's family & see my 4 month old first grandchild. They live in religious neighborhood in a northern Israeli town. The way they live reminds me of the America in which I came of age in the 1940s and 1950s. Back then common sense still had social currency. Beats me why our intellectual elites so despise that period.

In New York over the weekend for my oldest son's wedding. Gave me a chance to travel down memory lane by visiting my adolescent suburban home and the college and medical school I attended. Back then the middle middle class enjoyed affordable housing and education. My dear late father owned a small butcher store. Never made much money but could afford a pleasant suburban home which he paid $16,000 for. Today the house is worth about $500,000. My $1000 NY Regents Scholarship covered almost 100% of private college tuition, and because my income was low qualified for the $200 annual tuition rate at a SUNY medical school. Went by the bursar's office at the med school Friday to learn the tuition's almost $20,000. Add to that today's cost of living most very hardworking, ambitious low income strivers as I was then would be frozen out of medical education.

No wonder we have an anything goes bread and circuses culture. Most young people simply can't afford to chase their educational dreams and afterwards start families. Today's severely inflated dollar dooms so many of our children to a lifetime of pleasure seeking and transient romances. Just too expensive for most to settle down to enjoy life's most precious gift, raising a family.

Brain dead government credit policy is certainly a factor. The Treasury Department fuels the housing price inflation by allowing speculators to easily obtain interest only mortgages. Basically free money with which to rapidly flip properties to create artificial demand which ends up pricing most young people starting out out of the housing market.

Recently I spoke with a senior Treasury official about curbing such mortgages, The official was very familiar with issue and its ramifications but made it quite clear the administration had no intention to lean on the banks. My guess is the Treasury's is little more than a puppet for high priced Inside-the-Beltway lobbyists. Those folks don't get $1000 an hour for nothing! Strongly suspect the official I spoke with will land a plumb banking job when she leaves the government.


Anonymous Anonymous said...

Here's some info to chew on awhile.







8:18 AM  
Anonymous Anonymous said...

The Federal Reserve is designed to steal wealth from the common man through inflation by giving central banks/bankers first use of freshly printed fiat (non-gold based) money. Those dollars then gradually loss purchasing power (inflation) as they get circulated into the expanding pool of money. The main instruments for this theft are federal deficits and fractional reserve banking.

8:27 AM  

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