In my view lenders are not the only mortgage foreclosure abusers. The public has not been made aware that significant mortgage foreclosure abuses have been perpetrated by borrowers. Many defaulting borrowers have been living in their homes (often having not put much money down in the first place) rent free for months and even years. In essence, because of the delays occasioned by "messed up" foreclosure actions or otherwise, and just the long delays in judicial foreclosure states, many borrowers have already actually benefited from this crisis.
I understand the need to discipline the lenders for shoddy, improper, and even dishonest, foreclosure processing, but if I were the judge I'd ask the complaining borrowers two questions--
Did you get the money? Did you pay it back?
According to an article in the New York Times, a Florida foreclosure defense attorney said he had basically three types of borrower clients:
1. Those who lost jobs or had medical problems and through no fault of their own and are unable to pay. Clearly the kind of borrowers who should be given loan modifications.
2. Those who can pay but don't . This happens usually where the value of the home is currently less than the amount of the mortgage; otherwise known as "underwater". They are just staying put "rent free" for as long as they can hold out, often with an attorney's help. Afterward when the foreclosure is final, which is usually months and even years, they will just find an apartment to rent.
3. Those who could pay but won't, and in fact have rented out the homes. They are keeping the rent and still not paying the mortgage! Aggressive lawyering in those situations can delay the foreclosure for a long time. Hopefully this is an aberrant situation.
Even in states that allow for personal deficiency judgments after the foreclosure, the banks have not gone after borrowers for loan deficiencies. This is typical even where borrowers have substantial assets. By the way, there may be a shareholder suit somewhere out there for the failure of the banks to go after those who can pay.
The Times article said that this phenomenon of living in homes rent free has acted as a kind of "silver lining" in the financial crisis, creating an economic boost to the economy that had not been reported.
I believe that many lenders and their servicers acted improperly and should be heavily fined for not following proper legal procedures. The lenders, attorneys and the courts, got overwhelmed with loan defaults when the economy collapsed, and, while inexcusable, that was a big factor with regards to the shoddy foreclosure processing.
However, I don't see why borrowers should get anything, unless of course they can show actual damage.
I guess the good news is that the various multi-billion dollar settlements with the banks are more of a private sector economic stimulus, and in that sense maybe helpful for the recovery. Kind of a reverse TARP, but one that doesn't get repaid at a profit like the one the banks paid!
However, who gets the money and for what?
It's going to be like hitting the lottery for some borrowers (worthy or otherwise), compliments of the banks. The Times is already complaining that too much money may go to higher income borrowers. Excuse me, but isn't that an oxymoron? How do high income borrower even need help of this kind?
The real question is, were borrowers actually damaged by "robo" signings and other shoddy practices?
Did anyone lose their home who were paying their mortgage payments? I haven't heard about them, and believe me we would have.
Listen, I'm not saying that any borrowers wanted to default on their loans. But many who took those subprime NINJA loan weren't completely innocent either. They did walk out of the bank with a lot of money, which they haven't paid back.
The whole economy crashed, lead by the collapse of the housing market. Maybe these lawsuits regarding improper foreclosure practices are just a proxy for punishing banks for having made subprime loans in the first place.
The banks should be punished for improper foreclosure practices , but the money should be better spent and not go those who may not have been damaged, and may even have been abusers of the foreclosure process themselves.
I have a better solution. As to what to do with the many billions of dollars of settlement proceeds from the banks, rather than giving it to borrowers (all of whom clearly defaulted on their loans, and who may or may not have suffered damages as a result of lenders' enforcement efforts), why don't we give the money to the poor, feed the hungry, shelter the homeless, educate our children or even pay down the debt and reduce the deficit?
Eric
Tuesday, January 22, 2013
Thursday, January 3, 2013
What is a Bailout?
What is a bailout?
For example, AIG and GM. What does it mean that AIG and GM got bailed out? Shareholders got wiped out. All of the senior executives got fired. Creditors lost money (certainly in GM). Isn't that plenty of moral hazard?
What's left of AIG and GM beyond the name and the business that continues to operate with the jobs of workers below senior management? Assuming the business had intrinsic value and the shareholders got wiped out and senior management got fired, what is the basis of complaining about bailing out "fat cats"?
I recently read a piece which said:
"A bailout (in my book) means the shareholders benefited from the government action. I don't see any shareholders of AIG and GM saved, I see them obliterated. As such I disagree with the term bailout and prefer restructure."
I dwell on this issue because I think it is important that people know the truth of what a bailout means so if needed in the future politicians' and peoples' judgment will not be distorted by the demonized use of the term.
Eric
Update
For example, AIG and GM. What does it mean that AIG and GM got bailed out? Shareholders got wiped out. All of the senior executives got fired. Creditors lost money (certainly in GM). Isn't that plenty of moral hazard?
What's left of AIG and GM beyond the name and the business that continues to operate with the jobs of workers below senior management? Assuming the business had intrinsic value and the shareholders got wiped out and senior management got fired, what is the basis of complaining about bailing out "fat cats"?
I recently read a piece which said:
"A bailout (in my book) means the shareholders benefited from the government action. I don't see any shareholders of AIG and GM saved, I see them obliterated. As such I disagree with the term bailout and prefer restructure."
I dwell on this issue because I think it is important that people know the truth of what a bailout means so if needed in the future politicians' and peoples' judgment will not be distorted by the demonized use of the term.
Eric
Update
Wednesday, November 21, 2012
My Favorite Holiday
Thanksgiving is my favorite holiday. Why? Because it is the only spiritual, family based, holiday which emphasizes universal values and principles that are not based on any religion.
All Americans celebrate Thanksgiving.
Even though we also all celebrate the 4th of July and New Years, they don't have the spirituality of Thanksgiving; rather those holidays are more celebratory than reflective. Our other major holidays are either religious based or more of an extra day off from work or school, rather than a real focus on values and principles.
The name says it all. We give thanks, and we do it with family and friends, without the need of religion, presents or fireworks .
Now, I'm sure turkeys would have another point of view.
Happy Thanksgiving,
Eric
All Americans celebrate Thanksgiving.
Even though we also all celebrate the 4th of July and New Years, they don't have the spirituality of Thanksgiving; rather those holidays are more celebratory than reflective. Our other major holidays are either religious based or more of an extra day off from work or school, rather than a real focus on values and principles.
The name says it all. We give thanks, and we do it with family and friends, without the need of religion, presents or fireworks .
Now, I'm sure turkeys would have another point of view.
Happy Thanksgiving,
Eric
Tuesday, October 9, 2012
Reality Check
We keep hearing and reading everyday from our politicians and the media that we are facing unprecedented problems in this country and that things are worse now than they have ever been. In short these are the worse of times for the United States. Given the drumbeat of gloom and doom, we start to believe it.
Nonsense. Let's put things in perspective.
1929- 1939-- the Great Depression, massive unemployment , dust bowls, runs on the banks, Hoovervilles, breadlines, labor union clashes,etc.
1940-43 -- Nazi Germany marching through Europe and advancing on Leningrad, Britain under siege, Pearl Harbor and Japan sweeping through the Pacific. We were losing the war and many thousands of our men were dying.
The 1950's -- The Korean War and the expanding Communist Soviet Union and it's nuclear threat ( remember those drills hiding under school desk), culminating with the Cuban Missile Crisis in 1961. McCarthyism and its fall out.
Racism and bigotry were rampant. Eventually strife arose from the Civil Rights Movement in the 1960s and beyond , including the riots after MLK's assassination.
The Viet Nam War, with so many killed and wounded, and massive demonstrations, protests and civil disobedience in the 1960's and early 70's. The country was torn apart.
Remember all the years when we constantly lamented Urban Decay , the Rust Belt and the loss of our Farm Economy. Don't forget the era of Stagflaion and long gas lines from the Arab Oil Embargo . The Savings and Loan Crisis that we were told would cripple our economy for generations .
Our cities were crumbling , factories were closing and farmers couldn't make a decent living. The "inner cities " were dying.
Women and minorities did not have the rights and opportunities they have today.
We had some very bad recessions in the mid 1970s and early 1980s and 1990s. The stock market crashed in 1987. We had the bursting of the DotCom bubble in 2001, with the sharp economic down turn that followed. Of course let's not forget 9/11.
Remember that in the 50s the top tax rate exceeded 70% and has been essentially falling since to where we are at today.
If we honestly examine it, the "good old days" weren't all that great.
Our current problems , while very serious, don't compare to some of the problems we have dealt with in the past. Maybe that is why we have to amplify the problems we have today.
Of course the unemployment rate is a terrible problem, and our debt and deficit are very serious problems that have to be addressed. Foreclosures and housing prices are dreadful after the sub prime lending crisis set off the housing collapse which lead to the financial melt down and resulting Great Recession.
However inflation and interest rates are low.
We are in the painful , but ultimately beneficial, process of de-leveraging our debt levels.
Those who have jobs are doing reasonably well, and are now feeling less worried about losing them.
.
While home values have plunged most people are secure in their housing situation and the market is finally recovering .
The stock market , where so many Americans ( at least 50%) have their retirement accounts and the like, has come back strongly from it's lows and the main market problems today appear to be from Europe and with our politicians.
Our corporations are operating at very profitable levels and basically are awaiting increased demand ( and the election) to justify new hiring. Reportedly they are sitting on a mountain of cash but need to have confidence in the economy to invest it.
Notwithstanding Standard and Poor's, the world believes that US Treasuries are still the safest investment in the world. The only threat to our credit rating is our Congress.
Our farm economy is so strong that it should be embarrassing to them to still be getting large government farm subsidies.
The wars we are involved in are winding down and are being fought by volunteers who, for a variety of reasons, have chosen to be in the military. Therefore the rest of us really haven't had to sacrifice to fight these far off wars. The risk of a terrorist attack is real but sadly it is the nature of world we live in.
The one thing that really is broken, and is worse than our past, is our political process.
Our politicians, abetted by the pundits, have created a toxic atmosphere over things that in reality can be relatively easily dealt with by people of good will and reason. For example, Simpson Bowles would do the job on the deficit and the debt, and relatively painlessly.
Why hasn't either party embraced it? The so called Gang of Six are on the right track but partisans on both sides of the aisle block compromise at every turn.
Since our country's strengths are so extensive and our assets are so strong , we can do the things that need to be done, if the political will is there.
We can afford to raise revenue. There certainly are areas where spending can and should be cut significantly. Meaningful adjustments to entitlements can be made in a relatively minor and thoughtful way which would have a major impact on bringing down the debt and the deficit.
Once a program which includes these things is developed and implemented, confidence in our political process will be restored and the economy will start to grow again and finish the job of solving our debt and deficit problems; as occurred in the 1990s when economic prosperity generated increased tax revenues from increased incomes and profits.
We are lucky our problem are so solvable -- think Greece and other countries in Europe .
However, there are too many politicians and pundits who don't want to solve our problems . No , they just want to win elections to gain or retain power.
When will we all wake up to the fact that they care more about winning elections , with all the spoils that provides, than what is in the best interest of the country.
Maybe that has always been true, and is just a part of human nature, but it's so much more apparent these days.
Shared sacrifice through political consensus is the answer. Compared to what we have had to do in the past, it shouldn't be all that hard.
Eric
Update : 2015
Housing prices have largely recovered; foreclosures mostly over.
The stock market remains strong.
Unemployment at 5.5%; millions of new jobs created since date of this original post.
Inflation still tame
Deficit has been cut in half.
US economy leads the world. Dollar strong and oil prices low.
Yes, we still have some serious problems, but to hear the politicians and media ( from all sides) things have never been worse in this country.
How crazy is that. Why must we always beat ourselves up?
Nonsense. Let's put things in perspective.
1929- 1939-- the Great Depression, massive unemployment , dust bowls, runs on the banks, Hoovervilles, breadlines, labor union clashes,etc.
1940-43 -- Nazi Germany marching through Europe and advancing on Leningrad, Britain under siege, Pearl Harbor and Japan sweeping through the Pacific. We were losing the war and many thousands of our men were dying.
The 1950's -- The Korean War and the expanding Communist Soviet Union and it's nuclear threat ( remember those drills hiding under school desk), culminating with the Cuban Missile Crisis in 1961. McCarthyism and its fall out.
Racism and bigotry were rampant. Eventually strife arose from the Civil Rights Movement in the 1960s and beyond , including the riots after MLK's assassination.
The Viet Nam War, with so many killed and wounded, and massive demonstrations, protests and civil disobedience in the 1960's and early 70's. The country was torn apart.
Remember all the years when we constantly lamented Urban Decay , the Rust Belt and the loss of our Farm Economy. Don't forget the era of Stagflaion and long gas lines from the Arab Oil Embargo . The Savings and Loan Crisis that we were told would cripple our economy for generations .
Our cities were crumbling , factories were closing and farmers couldn't make a decent living. The "inner cities " were dying.
Women and minorities did not have the rights and opportunities they have today.
We had some very bad recessions in the mid 1970s and early 1980s and 1990s. The stock market crashed in 1987. We had the bursting of the DotCom bubble in 2001, with the sharp economic down turn that followed. Of course let's not forget 9/11.
Remember that in the 50s the top tax rate exceeded 70% and has been essentially falling since to where we are at today.
If we honestly examine it, the "good old days" weren't all that great.
Our current problems , while very serious, don't compare to some of the problems we have dealt with in the past. Maybe that is why we have to amplify the problems we have today.
Of course the unemployment rate is a terrible problem, and our debt and deficit are very serious problems that have to be addressed. Foreclosures and housing prices are dreadful after the sub prime lending crisis set off the housing collapse which lead to the financial melt down and resulting Great Recession.
However inflation and interest rates are low.
We are in the painful , but ultimately beneficial, process of de-leveraging our debt levels.
Those who have jobs are doing reasonably well, and are now feeling less worried about losing them.
.
While home values have plunged most people are secure in their housing situation and the market is finally recovering .
The stock market , where so many Americans ( at least 50%) have their retirement accounts and the like, has come back strongly from it's lows and the main market problems today appear to be from Europe and with our politicians.
Our corporations are operating at very profitable levels and basically are awaiting increased demand ( and the election) to justify new hiring. Reportedly they are sitting on a mountain of cash but need to have confidence in the economy to invest it.
Notwithstanding Standard and Poor's, the world believes that US Treasuries are still the safest investment in the world. The only threat to our credit rating is our Congress.
Our farm economy is so strong that it should be embarrassing to them to still be getting large government farm subsidies.
The wars we are involved in are winding down and are being fought by volunteers who, for a variety of reasons, have chosen to be in the military. Therefore the rest of us really haven't had to sacrifice to fight these far off wars. The risk of a terrorist attack is real but sadly it is the nature of world we live in.
The one thing that really is broken, and is worse than our past, is our political process.
Our politicians, abetted by the pundits, have created a toxic atmosphere over things that in reality can be relatively easily dealt with by people of good will and reason. For example, Simpson Bowles would do the job on the deficit and the debt, and relatively painlessly.
Why hasn't either party embraced it? The so called Gang of Six are on the right track but partisans on both sides of the aisle block compromise at every turn.
Since our country's strengths are so extensive and our assets are so strong , we can do the things that need to be done, if the political will is there.
We can afford to raise revenue. There certainly are areas where spending can and should be cut significantly. Meaningful adjustments to entitlements can be made in a relatively minor and thoughtful way which would have a major impact on bringing down the debt and the deficit.
Once a program which includes these things is developed and implemented, confidence in our political process will be restored and the economy will start to grow again and finish the job of solving our debt and deficit problems; as occurred in the 1990s when economic prosperity generated increased tax revenues from increased incomes and profits.
We are lucky our problem are so solvable -- think Greece and other countries in Europe .
However, there are too many politicians and pundits who don't want to solve our problems . No , they just want to win elections to gain or retain power.
When will we all wake up to the fact that they care more about winning elections , with all the spoils that provides, than what is in the best interest of the country.
Maybe that has always been true, and is just a part of human nature, but it's so much more apparent these days.
Shared sacrifice through political consensus is the answer. Compared to what we have had to do in the past, it shouldn't be all that hard.
Eric
Update : 2015
Housing prices have largely recovered; foreclosures mostly over.
The stock market remains strong.
Unemployment at 5.5%; millions of new jobs created since date of this original post.
Inflation still tame
Deficit has been cut in half.
US economy leads the world. Dollar strong and oil prices low.
Yes, we still have some serious problems, but to hear the politicians and media ( from all sides) things have never been worse in this country.
How crazy is that. Why must we always beat ourselves up?
Tuesday, June 26, 2012
Things that make no sense to me-part 1
Things that make no sense to me:
1. Cuts in public sector jobs as demanded by GOP and GOP complaining about high unemployment rate.
2. Lowering retirement age in Europe when people are living longer healthier lives.
3. Fewer teachers when we want to improve education.
4. Fewer cops when we want to reduce crime.
5. Fewer talented immigrants allowed into US when they enhance our country . Quotas should be based on education rather than nationality; by all means let the better educated ones in.
6. Illegal immigrantes taking jobs from their own fellow legal immigrants , yet they support them. While quite selfless, it still seems illogical.
7. State and local employees with better union rights than federal employees. Except for teachers, police and fire, it makes no sense to have state and local employees have more collective bargaining rights than federal workers.
8. Why can't government issue anyone who wants one a free picture ID.
9. Euro without a fiscal union.
10. China without democracy; how long will that last.
11. Islamic separation of state and religion.
12. Hunger in midst of plenty.
13. Lack of universal health care.
14. Fear of nuclear power. How many have died? Very few, none at Fukushima.
15. Terrorist treated as criminals rather than war enemies. Why aren't they enemy combatants?
16. Gold as a valuable medium of exchange. Why is it so valuable?
17. Why not spend for infrastructure ? The companies and workers are private sector not government.
18. Germans who retire at 67 , bailing out Greeks who get to retire at 60.
19. Media that can't separate lies from facts. Being balanced is no excuse for not identifying lies and half-truths.
20. Democrats who want more jobs but are anti-business.
21. Asking banks to make more loans and then criticizing banks for making more loans.
23. US Open golf where they make the course much tougher for the tournament, but reduce par to 70 from 72 or 71.
Eric
1. Cuts in public sector jobs as demanded by GOP and GOP complaining about high unemployment rate.
2. Lowering retirement age in Europe when people are living longer healthier lives.
3. Fewer teachers when we want to improve education.
4. Fewer cops when we want to reduce crime.
5. Fewer talented immigrants allowed into US when they enhance our country . Quotas should be based on education rather than nationality; by all means let the better educated ones in.
6. Illegal immigrantes taking jobs from their own fellow legal immigrants , yet they support them. While quite selfless, it still seems illogical.
7. State and local employees with better union rights than federal employees. Except for teachers, police and fire, it makes no sense to have state and local employees have more collective bargaining rights than federal workers.
8. Why can't government issue anyone who wants one a free picture ID.
9. Euro without a fiscal union.
10. China without democracy; how long will that last.
11. Islamic separation of state and religion.
12. Hunger in midst of plenty.
13. Lack of universal health care.
14. Fear of nuclear power. How many have died? Very few, none at Fukushima.
15. Terrorist treated as criminals rather than war enemies. Why aren't they enemy combatants?
16. Gold as a valuable medium of exchange. Why is it so valuable?
17. Why not spend for infrastructure ? The companies and workers are private sector not government.
18. Germans who retire at 67 , bailing out Greeks who get to retire at 60.
19. Media that can't separate lies from facts. Being balanced is no excuse for not identifying lies and half-truths.
20. Democrats who want more jobs but are anti-business.
21. Asking banks to make more loans and then criticizing banks for making more loans.
23. US Open golf where they make the course much tougher for the tournament, but reduce par to 70 from 72 or 71.
Eric
Monday, June 11, 2012
Income gap action plan update
After the Scott Walker recall debacle -- if you're going to attack a "king", you'd better kill him-- I went back and pulled out my action plan to actually narrow the growing gap between the haves and have nots ( different from the 1% v.99%) in our country.
I'm pleased to report that shareholder actions have picked up, at least in a very public way, and pressure is growing to rein in out sized executive compensation. While I can't take all of the credit for this , I can only assume people are reading my blog!
As to strengthening unions and thus raising middle class compensation, last night was a real set back, and ill-advised, for the reasons I set forth below regarding public employee unions, as opposed to private sector unions.
The failure to recall Govenor Walker ( people don't like recalls for anything less than malfeasance) really set the whole union movement back. I guess it's remarkable they did as well as they did, but who cares if you lose.
Again I believe that private sector unions must be divorced from public sector.The state and local public employee unions should operate the same way as federal workers unions do.
Doesn't anyone see the irony of pubic employees working for Obama having no greater rights than public employees working for Scott Walker?
We need stronger private sector unions, but being associated with the public sector, where the tax payers are the owners, only makes it harder. Within the public sector we have to look at teachers , police and firemen differently from other government employees. Those three categories of government workers are more vital than the others who are more akin to federal employees who have very limited collective bargaining rights.
A reformed private sector union movement, which works with management to both increase profits and increase worker compensation and benefits, is needed to strengthen the middle class and narrow the income gap that threatens the very stability of our country.
Eric
I'm pleased to report that shareholder actions have picked up, at least in a very public way, and pressure is growing to rein in out sized executive compensation. While I can't take all of the credit for this , I can only assume people are reading my blog!
As to strengthening unions and thus raising middle class compensation, last night was a real set back, and ill-advised, for the reasons I set forth below regarding public employee unions, as opposed to private sector unions.
The failure to recall Govenor Walker ( people don't like recalls for anything less than malfeasance) really set the whole union movement back. I guess it's remarkable they did as well as they did, but who cares if you lose.
Again I believe that private sector unions must be divorced from public sector.The state and local public employee unions should operate the same way as federal workers unions do.
Doesn't anyone see the irony of pubic employees working for Obama having no greater rights than public employees working for Scott Walker?
We need stronger private sector unions, but being associated with the public sector, where the tax payers are the owners, only makes it harder. Within the public sector we have to look at teachers , police and firemen differently from other government employees. Those three categories of government workers are more vital than the others who are more akin to federal employees who have very limited collective bargaining rights.
A reformed private sector union movement, which works with management to both increase profits and increase worker compensation and benefits, is needed to strengthen the middle class and narrow the income gap that threatens the very stability of our country.
Eric
Tuesday, May 8, 2012
Words and Meanings- European Style
Words and Meaning - European Style
Following on from my last post, where I explored the different meanings of the same words used by Democrats and Republicans, it is interesting to see how those same words are used by Europeans of the Left and the Right.
1. Growth, as opposed to austerity-- Who doesn't want growth. Even those who are pushing austerity also would like growth. However the Left and the Right differ as to how to accomplish growth.
While the Left today talks about wanting growth , one of way to achieve growth is to cut taxes. However , to Europeans, especially on the Left, that is an anathema.
Another way to stimulate growth is to reduce government regulation and bureaucracy , but the Europeans don't believe in that either.
No, the only thing Leftist Europeans would do to stimulate growth is to increase government spending.
But where would they get the money to spend?
If they try to borrower, who would lend, and at what price? The debt in many countries is already very high and many countries have to pay really high rates of interest. Spain and Italy are hovering around 6%, while the US ( which also has too much debt) is under 2%.
If they raise taxes to increase spending doesn't that just retard growth?
Frankly, I'm at a loss to understand what Europeans mean by adopting a growth strategy, particulary within the Euro zone.
2. Tax Reform -- In Europe they don't talk much about that, other than to raise taxes. However, as I mentioned earlier, I've always thought that raising taxes is not good for growth.
I guess one thing they can do is to get people to actually pay the taxes they owe, which isn't so easy in places like Greece.
3. Debt Reduction-- You'd think that would be a big one; and it is for the Right in Europe. However, the Left just wants to leave it for another day and , in fact , wants to do more spending that will actually increase debt further.
What to do now that the Left is in ascendancy? I have no idea , especially given the constraints of the Euro zone; but that's a whole other issue.
So once again everyone in Europe is for the same "words" however , just like in the US , they have different "meanings", depending on ones politics.
Eric
Following on from my last post, where I explored the different meanings of the same words used by Democrats and Republicans, it is interesting to see how those same words are used by Europeans of the Left and the Right.
1. Growth, as opposed to austerity-- Who doesn't want growth. Even those who are pushing austerity also would like growth. However the Left and the Right differ as to how to accomplish growth.
While the Left today talks about wanting growth , one of way to achieve growth is to cut taxes. However , to Europeans, especially on the Left, that is an anathema.
Another way to stimulate growth is to reduce government regulation and bureaucracy , but the Europeans don't believe in that either.
No, the only thing Leftist Europeans would do to stimulate growth is to increase government spending.
But where would they get the money to spend?
If they try to borrower, who would lend, and at what price? The debt in many countries is already very high and many countries have to pay really high rates of interest. Spain and Italy are hovering around 6%, while the US ( which also has too much debt) is under 2%.
If they raise taxes to increase spending doesn't that just retard growth?
Frankly, I'm at a loss to understand what Europeans mean by adopting a growth strategy, particulary within the Euro zone.
2. Tax Reform -- In Europe they don't talk much about that, other than to raise taxes. However, as I mentioned earlier, I've always thought that raising taxes is not good for growth.
I guess one thing they can do is to get people to actually pay the taxes they owe, which isn't so easy in places like Greece.
3. Debt Reduction-- You'd think that would be a big one; and it is for the Right in Europe. However, the Left just wants to leave it for another day and , in fact , wants to do more spending that will actually increase debt further.
What to do now that the Left is in ascendancy? I have no idea , especially given the constraints of the Euro zone; but that's a whole other issue.
So once again everyone in Europe is for the same "words" however , just like in the US , they have different "meanings", depending on ones politics.
Eric
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