Blessed Are the Poor, For They Shall Have a Hell of a Lot of Nerve
Although the title of this blog post may not seem very Christian, it’s okay because I am not. In fact, these days in a tough economy I’m feeling a lot less generous and a lot less giving.
It’s been reported that the city is closing down some local pools in order to make some badly needed repairs. Instead of being grateful, the people complained.
The story is similar when it comes to the Mayor’s Action Center. A local story infers that people in poor neighborhoods don’t get their problems responded to as quick as those in more affluent areas (translation: citizens who pay more in taxes).
Now while I doubt if city services are doled out based on where you live, I really don’t see why the paying customers shouldn’t get taken care of first. I would much rather have a city of tax contributors than tax consumers.
For example, just this past weekend I got word of a couple who had to move in with their parents, but still managed to find enough cash to buy a new car and a Nintendo Wii. And for the record, I was a never a big fan of bailing out banks, auto industries or professional sports teams and the more I hear from the “poor and disenfranchised” not getting their entitlements, my sympathy diminishes by leaps and bounds.
I have no qualms about helping the truly needy, but in light of some people, maybe we really need to redefine who’s in need.
March 23rd, 2009 at 7:20 am
We’re blessed for your unearthing of issues, Abdul. However, the Presidential choice of voters and media has thus far chosen the campaign trail “sacrifice”, “accountability”, and “responsibility” to be focused on one party demographics, with the benefits focused on the other- much like his predecessor. No traction on this issue until our genuinely gifted leader works both ends of the floor.
March 23rd, 2009 at 7:34 am
>, these days in a tough economy I’m feeling a lot less generous and a lot less giving.
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That’s the spirit! I guess your miserly attitude is counter-balanced by my wife and I; We just gave a sizable donation to our Church and increased our monthly giving a little.
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>maybe we really need to redefine who’s in need.
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Obama is in the process of redefining the “needy” as anyone earning less or in possession of less than their neighbor. He’ll straighten out those inequities soon enough. It’s a crime that everyone can’t enjoy a Wii and a new car. Stay tuned.
March 23rd, 2009 at 7:50 am
Ballard is right that the maintenance on the pools was neglected by the Peterson folks. However, the pools are only open 75 days a year. There was plenty of time before and after the 2 1/2 months swimming season to make the repairs. They’re obviously trying to save money so why mislead the residents? After all, the Pacers need $15 million more of our money.
March 23rd, 2009 at 7:51 am
Clsoing the pools makes sense. Repairs made in warm months last longerthan in cold….simple physics. The RYV^6 story said that the one pool was losing 100,000 gallons a day! Ballard would have been irresponsible to let that one stay open!
March 23rd, 2009 at 7:57 am
Of course, since they are only open 75 days it also means there’s only a scant few days of deprivation, too.
What SHOULD be of concern is a completely empty pool like the one I saw on the news. With a good soaking spring rain, the bottom may start to heave upward due to the hystrostatic pressure.
March 23rd, 2009 at 8:04 am
I say let them play their Super Smash Bros Brawl followed by a piece of cake…..until the unemployment runs out.
March 23rd, 2009 at 8:14 am
Is this the post your promised last night? Because somehow I expected a bigger bombshell.
Still not sufficient evidence to cut unemployment benefits.
PLENTY of evidence exists, to better police the abusers. It’s simple math: more unemployed, more abusers.
But the folks who truly need it…an avg. of $303 a week is not lavish.
March 23rd, 2009 at 8:58 am
We can make it fair close all of the pools. Save the money.
March 23rd, 2009 at 9:44 am
There was a lot of money doled out for neighborhood and faith-based groups. I’d like to see some accountability of THAT.
March 23rd, 2009 at 10:47 am
I attended the meeting and I also regularly spend time at Bethel Park Family Center. I saw bleachers on one side of the gym which were nearly full. I saw interested and caring citizens who appreciated the Mayor’s visit. One person even told the Mayor, “we like you,” after Mayor Ballard had disclosed the plan to use IndyGo shuttles and pool passes to other pools in order to accommodate the Bethel Park community.
Then out of nowhere, came the people featured on the TV newscast by Mary Milz. They were not representative of the group and they were not regular visitors to the Bethel Park Family Center.
There’s a lot of good people who are being unfairly represented just as the Mayor was unjustly criticized.
Abdul, please get the whole story out.
March 23rd, 2009 at 11:00 am
Thanks, Jane. I suspected as much.
Mary Milz is the “wife” of The Star’s editor. Neither of them has much of a news sense, to be honest…she likes easy stories, he likes sappy Mea Culpa columns.
Indicative of most of the local media, sad to say.
The pool problems seem to have been well-researched and the temporary solutions well-reasoned. The Peterson Administration didn’t necessarily ignore the problem–it didn’t get as creative as this solution is. (And can we stop blaming that Administration for allproblems? Ballard is the Mayor)
And I’ll even allow the Ballard wanted a workable solution for all parties.
But I swear To God that the next time he sends Olgen Williams to explain anything, I will bring an interpreter. On your show this morning, Abdul, I understood about every eighth word he uttered.
He has a very small resevoir of support among the neighborhood folks. Small–and dwindling.
March 23rd, 2009 at 11:12 am
We will stop blaming the Peterson administration for the unfinished repairs in the neighborhoods and wasteful spending, when Obama and the democrats stop blaming Bush for the financial mess when the Clintons,Pelosi and the democrat controlled congress approved the budgets since 2007.
March 23rd, 2009 at 11:44 am
Wow, KC. So you majored in something other than history, huh?
March 23rd, 2009 at 11:53 am
KC…don’t worry. Fiscal responsibility will not fix the economic problems. Only wealth redistribution and 1.3 trillion dollar yearly deficits will.
March 23rd, 2009 at 12:26 pm
Our country is an accident victim in ER with massive injuries and bleeding. Shall we look for the driver of the car of drunks that started this mess, or stay close to the victim because we see the shift doctor reading ‘Surgery for Dummies’ – while we watch. I know my vote.
March 23rd, 2009 at 1:33 pm
Funny, Taxpayer. Or, to continue:
Should we try to reopen the abdomen of the patient, whose 2002 surgery was so botched the doc lost his license? And had his assistant wildluy claim we were all safer because he used good ink pens to write down his notes?
Revenge is a big byproduct of all this lately. I want to learn from the mistakes–we’ve learned a lot already–but I’m much more focused on the solutions.
And given that there are no maps, because this is all uncharted territory, it will be a wild ride.
The Treasury’s announcement today, they they’ll seek to pool $1 trillion in toxic assets, is a good start. Mind you, this is a trillion in assets, on which billions have already been “earned” as commissions, legal fees paid, lobbying fees paid, etc. All based on a rising home value, across the board.
Much of it never was anything more than “paper profits.”
Add onto all this mess–capital gains taxes that wil not be paid on the realized profits.
Still, it looks like the latest solution might help. We’ll see.
March 23rd, 2009 at 4:29 pm
Here is what I posted elsewhere on this issue:
The same community that seems to want something for nothing. I find it hilarious that the one guy said the closing of the pools would put kids out on the street. Sorry, but if kids are out on the street, that is their _parents_ allowing/putting them out there. I grew up in a suburban county in a community that didn’t have a high school pool nor a community pool. We drove to the old Boogie Mountain and Thunder Island and _paid_ what was needed to swim in a pool. Sometimes we went out to Greenfield. One aunt eventually had a pool built, so we could go over there if we wanted. Pools are just over rated. If you want a pool, go to the YMCA. Funny how Indy Parks had to offer a shuttle service, did any of the caring residents, especially those that can’t, won’t, and/or no longer work, offer to _volunteer_ their time to help care “FOR THE CHILDREN!!” Of course not. It is all about demanding someone else to provide: Provide us housing, provide us free food, provide us cheap/free daycare, provide us cheap/free health care, provide us cheap/free pools, blah blah blah.
This population is growing and the productive class is shrinking. I give the country 15 years, maybe 10???
“And given that there are no maps, because this is all uncharted territory, it will be a wild ride.”
Funny, I know plenty of businesses who didn’t make it over the last 20 years. They were given a map by the government alright..it showed the path to bankruptcy court. “Too big to fail!!” What a joke!! The collapse of this country is right around the corner. Hope you all have prepared accordingly. Now that the summer is here, I see plenty of death and destruction when “Change” doesn’t manifest to people’s liking. Lets see, four dead people in the Indy metro area this past weekend. Four dead cops, another shot, and a dead suspect in Oakland, CA. I have a feeling it is going to be a bloody summer in the good ol’ US of A. By the way, keep an eye on the market bubble that we might see over the next month or so. As soon as the urban riots start, that is the time to short the market.
March 23rd, 2009 at 5:31 pm
Again, it seems to me: the Mayor’s staff identified a problem, identified a solution,and will accomodate those displaced by temporary closings. Pretty efficient.
I don’t even LIKE Ballard, didn’t vote for him, and won’t if he runs for re-election.
But this one seems like a no-brainer, with the exception I noted above; sending Olgen to explain ANYthing.
Some things really are as simple as they seem.
Mary Milz trolls around looking for naysayers. What a freaking surprise. She has no credibility anyway. Ignore her.
March 23rd, 2009 at 6:18 pm
Sometimes, when I’m not working my ass off two jobs I listen to Amos Brown. The majority of his calls are from people complaining of the free federal, state and county system’s they mooch off.
They bitch on everything and It is all free. There is something wrong with this picture.
When I was a kid a bus didn’t pick me up to take me to the pool. I found a way and then had to pay admission and for drinks and snacks.
Flipper
P.S. Abdul,
Nice seeing you at Indiana Live Casino today.
At least I don’t have to pay COIT tax in Shelbyville.
March 23rd, 2009 at 8:03 pm
“But I swear To God that the next time he sends Olgen Williams to explain anything, I will bring an interpreter. On your show this morning, Abdul, I understood about every eighth word he uttered.” — Think Again @ 11
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Truth!! Once again showing that education or lucidity is not needed to be an overpaid political appointee.
March 24th, 2009 at 5:48 am
WOW ALOT ON THIS POST R ON THE PULSE
1. Abdul, can i get permission and have tshirts made. U would be on front, on the back, blessed are the poor, for they shall inherit their laziness.
2. Who ever wrote about mary..u r right. The star is now the Ryerson Rage. Funny how 13 is with the paper. Hmmm…why is circulation so low…Gannett sale. When Ryerson passes…I want front row seats. Ole man Pulliam(old school) takes on the I have destroyed 2 Indy papers(news/star) and i wear an earring bcause im cool and i have friends in good places…for now! I dont think it goes more than two rounds!
3. Neighborhood should always have a place to play…we have parks. Good choice by mayor….Bad choice by Mayor if a very hot summer! Hot summer…We have Eagle Creek. Wht River…I hear it isnt deep…but, I think wade would have to be the rule!
March 24th, 2009 at 5:55 am
Do you trust this guy (government) with your money? Why it won’t work…
The “Geithner PLan”, part 1
The details of the “Geithner Plan” have been released. It has two parts: One to deal specifically with bad loans, the other to deal with other legacy assets (securitized yadda yadda). In this post I will discuss the first part, dubbed the “Legacy Loans Program”.
The Treasury helpfully provides an example, which I reproduce here:
Step 1: If a bank has a pool of residential mortgages with $100 face value that it is seeking to divest, the bank would approach the FDIC.
Step 2: The FDIC would determine, according to the above process, that they would be willing to leverage the pool at a 6-to-1 debt-to-equity ratio.
Step 3: The pool would then be auctioned by the FDIC, with several private sector bidders submitting bids. The highest bid from the private sector – in this example, $84 – would be the winner and would form a Public-Private Investment Fund to purchase the pool of mortgages.
Step 4: Of this $84 purchase price, the FDIC would provide guarantees for $72 of financing, leaving $12 of equity.
Step 5: The Treasury would then provide 50% of the equity funding required on a side-by-side basis with the investor. In this example, Treasury would invest approximately $6, with the private investor contributing $6.
Step 6: The private investor would then manage the servicing of the asset pool and the timing of its disposition on an ongoing basis – using asset managers approved and subject to oversight by the FDIC.
Let’s flesh this out by repeating it 100 times. So say a bank has 100 of these $100 loan pools. And just by way of example, suppose half of them are actually worth $100 and half of them are actually worth zero, and nobody knows which are which. (These numbers are made up but the principle is sound. Nobody knows what the assets are really worth because it depends on future events, like who actually defaults on their mortgages.)
Thus, on average the pools are worth $50 each and the true value of all 100 pools is $5000.
The FDIC provides 6:1 leverage to purchase each pool, and some investor (e.g., a private equity firm) takes them up on it, bidding $84 apiece. Between the FDIC leverage and the Treasury matching funds, the private equity firm thus offers $8400 for all 100 pools but only puts in $600 of its own money.
Half of the pools wind up worthless, so the investor loses $300 total on those. But the other half wind up worth $100 each for a $16 profit. $16 times 50 pools equals $800 total profit which is split 1:1 with the Treasury. So the investor gains $400 on these winning pools. A $400 gain plus a $300 loss equals a $100 net gain, so the investor risked $600 to make $100, a tidy 16.7% return.
The bank unloaded assets worth $5000 for $8400. So the private investor gained $100, the Treasury gained $100, and the bank gained $3400. Somebody must therefore have lost $3600…
…and that would be the FDIC, who was so foolish as to offer 6:1 leverage to purchase assets with a 50% chance of being worthless. But no worries. As long as the FDIC has more expertise in valuing toxic assets than the entire private equity and banking worlds combined, there is no way they could be taken to the cleaners like this. What could possibly go wrong? Don’t yeah love how the Federal Government does business with OUR money!
March 24th, 2009 at 7:17 am
Uh, Guy…the post was not about the Treasury Secretary.
Try http://www.crazyguysofftheirmeds.com
March 24th, 2009 at 9:09 am
Revenge, or more accurately, throwing clods between parties is the derigueur around here (had to look that one up- at least got the spelling right). I’d settle for a reduction in spending from anybody, regardless of party, level of government, length of tenure, gender, religion…..If a divorced female Democratic Pakistani lawyer with illegal immigrants for renters and six months of aggressive, demonstrated pursuit of reduced spending on city-council wants to run for state or national office- that’s my candidate at this point.
March 24th, 2009 at 9:58 pm
Abdul, I believe the word you meant was “implies,” not “infers.” It is not a good sign for an attorney who deals with words in their strictest sense on a daily basis.
I see your (implied) point about “free-market government,” although I don’t agree with it after seeing how well it works for our political system.