Commentary: Bailouts will lead to rough economic ride
by Ron Paul

(CNN) — Many Americans today are asking themselves how the economy got to be in such a bad spot.

For years they thought the economy was booming, growth was up, job numbers and productivity were increasing. Yet now we find ourselves in what is shaping up to be one of the most severe economic downturns since the Great Depression.

Unfortunately, the government’s preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.

Ever since the 1930s, the federal government has involved itself deeply in housing policy and developed numerous programs to encourage homebuilding and homeownership.

Government-sponsored enterprises Fannie Mae and Freddie Mac were able to obtain a monopoly position in the mortgage market, especially the mortgage-backed securities market, because of the advantages bestowed upon them by the federal government.

Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.

These governmental measures, combined with the Federal Reserve’s loose monetary policy, led to an unsustainable housing boom. The key measure by which the Fed caused this boom was through the manipulation of interest rates, and the open market operations that accompany this lowering.

When interest rates are lowered to below what the market rate would normally be, as the Federal Reserve has done numerous times throughout this decade, it becomes much cheaper to borrow money. Longer-term and more capital-intensive projects, projects that would be unprofitable at a high interest rate, suddenly become profitable.

Because the boom comes about from an increase in the supply of money and not from demand from consumers, the result is malinvestment, a misallocation of resources into sectors in which there is insufficient demand.

In this case, this manifested itself in overbuilding in real estate. When builders realize they have overbuilt and have too many houses to sell, too many apartments to rent, or too much commercial real estate to lease, they seek to recoup as much of their money as possible, even if it means lowering prices drastically.

This lowering of prices brings the economy back into balance, equalizing supply and demand. This economic adjustment means, however that there are some winners — in this case, those who can again find affordable housing without the need for creative mortgage products, and some losers — builders and other sectors connected to real estate that suffer setbacks.

The government doesn’t like this, however, and undertakes measures to keep prices artificially inflated. This was why the Great Depression was as long and drawn out in this country as it was.

I am afraid that policymakers today have not learned the lesson that prices must adjust to economic reality. The bailout of Fannie and Freddie, the purchase of AIG, and the latest multi-hundred billion dollar Treasury scheme all have one thing in common: They seek to prevent the liquidation of bad debt and worthless assets at market prices, and instead try to prop up those markets and keep those assets trading at prices far in excess of what any buyer would be willing to pay.

Additionally, the government’s actions encourage moral hazard of the worst sort. Now that the precedent has been set, the likelihood of financial institutions to engage in riskier investment schemes is increased, because they now know that an investment position so overextended as to threaten the stability of the financial system will result in a government bailout and purchase of worthless, illiquid assets.

Using trillions of dollars of taxpayer money to purchase illusory short-term security, the government is actually ensuring even greater instability in the financial system in the long term.

The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.

It is time this process is put to an end. But the government cannot just sit back idly and let the bust occur. It must actively roll back stifling laws and regulations that allowed the boom to form in the first place.

The government must divorce itself of the albatross of Fannie and Freddie, balance and drastically decrease the size of the federal budget, and reduce onerous regulations on banks and credit unions that lead to structural rigidity in the financial sector.

Until the big-government apologists realize the error of their ways, and until vocal free-market advocates act in a manner which buttresses their rhetoric, I am afraid we are headed for a rough ride.

(A slightly different version of this post appears at NolanChart.com )

The government’s plan to fix the financial crisis? Buy the bad assets.

Last night, an emergency Capitol Hill meeting was called to address the nation’s financial crisis.

One theory behind this solution is that by cutting financial institutions free from the mortgages in default, banks will be free to make investments and loan money out to get businesses and individuals back on their feet.

You can’t make this stuff up! But, apparently it can be pulled from thin air.

Where will our drowning-in-debt government find the money to make this purchase? It’s simply not there. This burden is going to be reshuffled to the taxpayer by way of inflation - because even in 2008, even though “green” investments are en vogue, we still can’t grow money from trees. Every action has an equal and opposite reaction. The money has to come from somewhere.

Even scarier than inflation, this bad assets solution requires the unconstitutional nationalization of financial institutions. I wonder if the act of Congress will include an amendment? How will Congress legally get away with this otherwise? It will be an entertaining song and dance for sure - the opening act to a muddy Presidential election.
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So just what happens when you use American cheese in a quiche?

Watch my video to find out!

I guess we’re having quiche for dinner!

Leah’s Surprise Quiche Recipe
(Created 9/17 with ingredients on hand!)

6 eggs - no shells!
1 1/2 c. heavy cream
4 slices of American cheese
3/4 c. sharp cheddar cheese
1/2 tsp McCormick Italian seasoning

Pate Brisee , made according to the directions (you can freeze half of the dough or halve the recipe. Either way is a morally acceptable decision). Bake for 10 minutes at 350 degrees to set.

Blend together all ingredients (except for the Pate Brisse:) ). Pour into baked crust. Bake at 350 degrees for 50 minutes or until slightly golden brown.

9/12 Update:
Myomectomy (and uterine reconstructive surgery) instead of hysterectomy!! While the short-term recovery for the abdominal incision will be the same, there will potentially be less long-term health issues, as it is not as harsh on one’s body.

Met with Dr. Glassner at Mainline Fertility. I did not want to have a hysterectomy, and it took a great deal of tenacity - talking to various doctors - to find Dr. Glassner, who is so skilled (at least 300 myomectomies a year!) that his patients are able to get pregnant afterwords — granted, it is a high-risk pregnancy and birth is via c-section.

I am considering a tubal ligation during the surgery.

To some women who have never had a child and have “endured it all” to have a baby, a high-risk pregnancy is a risk they may be willing to take.

However, I do have five children already. I am concerned about jeopardizing my health (uterus is very thin and distorted because of the tumor - even though it’ll be “reconstructed”), the health of a baby during pregnancy, and the well-being of my family should something go seriously wrong with the pregnancy.

I do learn a lot from some of my Quiverfull friends, but I have also said that it cuts both ways. We must trust God for the number of children that we have - even when He is saying, “you have your quiverfull, it’s time to be done.”

I still have not decided what to do about this. I am asking the Lord for wisdom.

From a note I wrote to my pastor this weekend:

Dr. Glassner’s office had framed articles featuring him, from all over the world, as well as TV stills, on his walls. The impression that it gave me was, “this person is a recognized expert in his field.” In the time that I had the ultrasound and was waiting, he had thoroughly read my file. He knew the names of my children, husband’s name, exact symptoms of the fibroid, test results and even that we were moving to Japan later this fall. He wasn’t shuffling through the file while he talked - he had memorized it. He said he does at least 300

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One of my new favorite blogs to read is the Art of Manliness.

Two great posts I’d highly recommend reading are:

14 Ways to Affair-Proof Your Marriage The post is thorough, thoughtful, and well-written. I appreciated the reminder regarding sexual tension in mixed company - not to “rationalize it away.”

and

Write A Love Letter Like A Soldier (Dude! Her name was Sarah!)

(Still have all the letters Tom wrote to me before we were married….)

Happy reading

Yes, I’m kicking and screaming. Yes, it does feel like my teeth are being pulled out - and I can tell you what that feels like both literally and figuratively!

God is putting little beacons of light in my path. Admittedly, they are hard to use because my frustration and anger are great and my walls are very high at the moment. My soul feels like my body does when I’m growling through my 30th (girl-style) push-up. One foot in front of other other, numbly, feeling like stopping, yet trusting that the ground will not collapse underneath me.

I’m praying that the Lord will keep working in my heart, and I am begging Him not give up on me.

This was sent to me from my mother-in-law< - check out her new blog!):
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Daily devotions for 06-21-2008:

Title: How to Do the Job You Don't Really Want To Do
Author: Elisabeth Elliot
Book: A Lamp For My Feet

Certain aspects of the job the Lord has given me to do are very easy to postpone. I make excuses, find other things that take precedence, and, when I finally get down to business to do it, it is not always with much grace. A new perspective has helped me recently:

The job has been given to me to do.
Therefore it is a gift.
Therefore it is a privilege.
Therefore it is an offering I may make to God.
Therefore it is to be done gladly, if it is done for Him.
Therefore it is the route to sanctity.

Here, not somewhere else, I may learn God's way. In this job, not in some other, God looks for faithfulness. The discipline of this job is, in fact, the chisel God has chosen to shape me with--into the image of Christ.

Thank you, Lord, for the work You have assigned me. I take it as your gift; I offer it back to you. With your help I will do it gladly, faithfully, and I will trust You to make me holy.
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On Sunday (15 minutes late to church, but we made it in time for the sermon!), Rev. Dr. Don Stone was our guest pastor and he gave an exposition on Romans 6. From the sermon, this quote made it to my feeble notes: “There are no shortcuts in the cultivation of character.”

There is nothing more frustrating than taking the time to create a birth plan, for the health benefit of you and your baby, only to have it ignored or disregarded. In the book Natural Childbirth The Bradley Way, Susan McCutcheon-Rosegg offers the following tips, found in chapter four “How to Choose Your Doctor”:

Make a detailed list in the order that is important to you.

If there is more than one doctor in a practice, try to see a different doctor and review your plan with each of them.

Memorize your list.

Have the doctor write your requests on your chart – the doctor is more likely to remember when they play an active role in getting your requests down. On later visits, ask the doctor to read what was previously written on your chart. This confirms previous agreements and gets the new doctor actively involved in seeing that your birth turns out the way you want.

About three weeks prior to delivery, hand over your written list and see that it is attached to your chart.

Take copies with you to the birth in case your requests are “misplaced”.

Bring a supportive person, in addition to your coach, with you to the hospital when the big day comes. This person’s function is not so much to intercede on your behalf as to simply be there for moral support as you deal with any situations that may come up.

Even if your plan is conveyed clearly, still be ready to decline any procedure that is objectionable to you.

Remember: Being judicious when choosing your OBGYN, and seeking out one who understands the importance of a natural birth in the first place, will greatly increase the chances of having your requests met. This way, your natural birth will not come only as the result of winning an uphill battle with your doctor during labor and delivery.

An OBGYN who shares your same philosophy will not accidentally begin an unnecessary medical intervention because it would not be habit for them to do so routinely. Choose a doctor who will be on the same page and things will go much smoother for everyone in the delivery room.

This is from the Council on Biblical Manhood & Womanhood (See my links!)

What Should Be the Husband’s Role in Marriage
by Dennis Rainey

There is a story of a man who died and went to heaven to find two signs above two different lines. One sign said: “ALL THOSE MEN WHO HAVE BEEN DOMINATED BY THEIR WIVES, STAND HERE.” That line of men seemed to stretch off through the clouds into infinity.

The second sign read: “ALL THOSE WHO HAVE NEVER BEEN DOMINATED BY THEIR WIVES, STAND HERE.” Underneath the sign stood one man.

He went over to the man, grabbed his arm and said, “What’s the secret, how did you do it? That other line has millions of men and you are the only one standing in this line.”

The man looked around with a puzzled expression and said, “Why, I am not sure I know. My wife just told me to stand here.”

We have all heard jokes about “who wears the pants in the family.” Yet, leadership in the home is no laughing matter. During the last few decades our culture has redefined the meaning and responsibilities of man and woman in society and in the home. Many men are confused and insecure. Many do not know how to act in the home. Growing up, they lacked a good model for leadership at home and have no mental picture of what it means to lead a family. Consequently, they do not lead effectively, or they do not even try. Increasingly, many men are becoming passive in the home. They’ve decided that the easiest thing to do is nothing. The simplest thing-with the smallest risk-is to stay on the fence with both feet firmly planted in mid-air and let the wife do it. When a man is married to a strong wife who will take over, he often lets her do just that.

Fortunately, there is an answer. The Scriptures clearly give us the model for being a man, a husband and father. I call that model the “servant/leader.”

I hope that the concepts I share will help you understand the biblical role of a husband more clearly than ever before. When correctly interpreted and applied, these concepts not only result in freedom for the husband and wife, but also help you work better as a team to combat isolation and conflict in your marriage.

BIBLICAL RESPONSIBILITIES FOR THE HUSBAND

Responsibility #1: Be a leader

The Scriptures provide a clear organizational structure for a marriage. Following are a couple of typical Scriptures:

But I want you to understand that Christ is the head of every man, and the man is the head of a woman, and God is the head of Christ. 1 Corinthians 11:3

Wives, be subject to your own husbands, as to the Lord. For the husband is the head of the wife, as Christ also is the head of the church, He Himself being the Savior of the body. But as the church is subject to Christ, so also the wives ought to be to their husbands in everything. Husbands, love your wives, just as Christ also loved the church and gave Himself up for her, so that He might sanctify her, having cleansed her by the washing of water with the word, that He might present to Himself the church in all her glory, having no spot or wrinkle or any such thing; but that she would be holy and blameless. So husbands ought also to love their own wives as their own bodies. He who loves his own wife loves himself; for no one ever hated his own flesh, but nourishes and cherishes it, just as Christ also does the church, because we are members of His body. Ephesians 5:22-30

In his commentary on Ephesians, William Hendriksen points out that God “…placed ultimate responsibility with respect to the household on the shoulders of the husband . . . The Lord has assigned the wife the duty of obeying her husband yet . . . this obedience must be a voluntary submission on her part, and that only to her own husband, not to every man.”

“Head” does not mean male dominance, where a man lords it over a woman and demands her total obedience to his every wish and command. God never viewed women as second-class citizens. His Word clearly states that we are all equally His children and are of equal value and worth before Him. As Galatians 3:28 tells us, “There is neither Jew nor Greek, slave nor free, male nor female, for you are all one in Christ Jesus” (Galatians 3:28).

The teaching of the New Testament clearly shows that women are to be respected, revered, and treated as equals with men. Unfortunately, many husbands have not gotten the message. They degrade their wives by neglect or with insensitive and abusive treatment. One cause of the feminist movement may have been that men abandoned God’s design. When God presented Eve to Adam in the Garden, Adam received her as a gift of great value to God and him. When husbands, particularly Christian husbands, do not treat their wives as a precious gift from God and helpmate, they can cause those wives to search for a way to find significance and value as persons, often outside God’s will.

Are you a leader? Men who are “natural” leaders have no trouble answering the question, yes. They know how to take over, control, guide, and get things done. Some men are not strong or natural leaders. How can they lead in the home?

Paul says the same to everyone. God has placed the husband in the position of responsibility. It does not matter what kind of personality a man may have. Your wife may be resisting you, fighting you, and spurning your attempts to lead, but it makes no difference. I believe our wives want us and need us to lead. You are not demanding this position; on the contrary, God placed you there. You will not lead her perfectly, but you must care for you wife and family by serving them with perseverance.

Scripture does more than assign leadership in a marriage to the husband, however. Those same passages you just read also provide a model for that leadership. The Apostle Paul says that the husband is head of the wife as Christ is head of the church. “This comparison of the husband with Christ reveals the sense in which a man should be his wife’s “head.” Hendriksen writes, “He is her head as being vitally interested in her welfare. He is her protector. His pattern is Christ Who, as head of the Church, is its Savior!”

Let’s look more closely at two responsibilities that flow out of proper leadership.

Responsibility #2: Love your wife unconditionally.

Ephesians 5:25 reads, “Husbands, love your wives, just as Christ also loved the church and gave Himself up for her.” Your unconditional acceptance of your wife is not based upon her performance, but on her worth as God’s gift to you. If you want to love your wife unconditionally, always be sure her emotional tank is full. One of the best ways to do that is to affirm her constantly. Let her know verbally that you value her, respect her, and love her. I have discovered that I simply cannot do that enough.

There is no question that words communicate love, but so do actions. You need to do both. As the Apostle John wrote in one of his letters: “let us not love with words or tongue, but with actions and in truth” (1 John 3:18). One of the missing ingredients in male leadership in homes is sacrificial action. When was the last time you gave up something for your wife-something you genuinely valued, like your golf game, a fishing trip, or your hobby? Sometimes you need to give up something you enjoy so your wife can have a break and see your love for her.

Responsibility #3: Serve your wife.

According to the New Testament, being head of your wife does not mean being her master, but her servant. Again, Christ is our model for this type of leadership. Jesus did not just talk about serving; He demonstrated it when he washed His disciples’ feet (John 13:1-17). Christ, the Head of the Church, took on the very nature of a servant when He was made in human likeness (Philippians 2:7).

One of the best ways to serve your wife is to understand her needs and try to meet them. Do you know what your wife’s top three needs are right now? If she is a young mother, she has a certain set of basic needs. If your children are grown and gone and you are in the empty nest, your wife has a different set of needs that you should try to meet. What is she worried about? What troubles her? What type of pressure does she feel? Learn the answers to questions like that, and then do what you can to reduce her worries, her troubles, her pressures.

What do you know about your wife’s hopes and dreams? I bet she has plenty-do you know what they are? Are you cultivating her gifts? If she has a knack for decorating, do you help her develop that?

Another way to serve your wife is to provide for her. This provision first involves assuming responsibility for meeting the material needs of the family. 1 Timothy 5:8 tells us, “But if anyone does not provide for his own, and especially for those of his household, he has denied the faith, and is worse than an unbeliever.”

Providing for your wife also means taking the initiative in helping meet her spiritual needs. You do this by modeling godly character, by praying with her, by spending time together in God’s Word, and by looking for ways to encourage her spiritually.

To be a leader, a lover, and a servant is to accommodate your life to the life of the gift God has given you-your wife. Give up your life for hers and, at the Judgment Seat of Christ, He will say, “Well done, thou good and faithful servant.”

Last night, my brave husband decided to teach me to drive a *standard transmission using his nice shiny black Mazda 3.

(Honestly, I much prefer a motorcycle. The gear-shifting pattern is more intuitive to me.)

While I didn’t cause any traffic accidents, I did have a few moments where I felt like I wasn’t sure what to do next - how to choose the correct gear from neutral when coasting around a corner, for example.

I also stalled at a green light. Behind me was a silver car whose driver was communicating their lack of patience by revving the engine. I started the car and made a second attempt. As I was getting ready to take off, I noticed in the rear view that car was trying to go around me - and there wasn’t much room for this. It made me nervous. I pulled my foot off the clutch too fast and stalled the car again.

My husband calmly reached up and turned the rear view mirror so that I couldn’t see the car behind me. I was able to start the car and take off. Once we got going, he straightened the mirror.

As I was crossing through the intersection, the driver behind me decided that I was too slow in the takeoff and he gunned his engine and zoomed around me before the nose of my car passed under the light. Given that there was on-coming traffic and I would have been stuck in the middle if someone would have hit him as they blindly came over the crest of the hill, it was a little frightening.

This morning, as I was thinking about this incident - which happened in the span of a minute or less! - it underscored for me how difficult it is to focus on the task at hand when we are concerned about people who are watching. Fear of man is quite a stumbling block!

Colossians 3:23-24
Whatever you do, do your work heartily, as for the Lord rather than for men, knowing that from the Lord you will receive the reward of the inheritance It is the Lord Christ whom you serve.

Proverbs 29:24-26
He who is a partner with a thief hates his own life;
He hears the oath but tells nothing.
The fear of man brings a snare,
But he who trusts in the LORD will be exalted.
Many seek the ruler’s favor,
But justice for man comes from the LORD.

Galatians 1:10
For am I now seeking the favor of men, or of God? Or am I striving to please men? If I were still trying to please men, I would not be a bond-servant of Christ.

*The first time I attempted to drive a standard transmission was my Dad’s boxy white Chevy Blazer, complete with custom Navy blue pinstripes, he purchased from my uncle.

Since then, my friend Elly once allowed me to spin her car around in a K-Mart parking lot, but other than that, sans the Eliminator, my uncoordinated self has stuck to automatic transmissions.

Random Resources

Mechanical Stuff:

How Stuff Works: Manual Transmission
How Motorcycles Work

Mental Stuff:

When People Are Big and God is Small