Wednesday, July 30, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Altshuler’s ‘zombies’

By
From page A5 | May 02, 2014 |

EDITOR:

This is in response to Gene Altshuler’s “Zombies and other myths” column on April 16.

Regarding religious biggety: We know that our universe was created from a mass contained in a space smaller than an atom. Those who believe that it was a random event should explain where that mass, and the matter that formed all other universes came from. Perhaps a better use of our time would be to focus on what is rather than denigrating either political party or our religious beliefs.

Regarding “Wall Street”: Clearly bankers behaved like sharks consistent with Darwinian expectation. Throw money in the pool and they will have a feeding frenzy. But abdicating our sovereignty to the people that we elect to serve us will not tame innate behavior by either Wall Street or Pennsylvania Avenue. Neither neighborhood has a greater number of angel wings per capita. We need to manage both, but to manage a problem it is important to understand its genesis.

In 1994, the New York Times reported that the Clinton administration was leaning heavily on lenders to embrace people in low-income neighborhoods. In 1999, Fannie Mae started a program of extensive expansion of loans to people with poor to moderate credit. Clinton’s housing secretary, Andrew Cuomo, advised Fannie Mae and Freddie Mac that such loans must amount to 50 percent of their portfolio by 2001. Other government agencies joined the crusade. The Federal Reserve compelled banks to accept welfare checks and unemployment benefits as income sources and to advise marginal clients that “NINJA” (no income, no job and no assets) loans might be available. In 1994, the share of sub-prime mortgages to total origination was 5 percent ($35 billion). By 2006, it had grown to 20 percent ($600 billion) and continued to expand during the Bush administration. Accordingly, a small but rapidly growing group of people on Wall Street bet that default rates would increase. Investors were counting on the mismanagement of a very complex business by government, which is almost always a sure thing. The problem was multifaceted; the odds makers were incompetent, the bookies could not cover those bets, the referees left the field and the facilitators were “too big to fail.” But the “bottom line” is that if there was no substantial increase in credit defaults, there would be no opportunity to grow the market for credit default derivatives.

Perhaps we need to spend more time regulating the regulators. We are “one nation under God” and we have access to the greatest regulation ever written: The Constitution of the United States of America. Although it worked for about 230 years, recent leaders ignore it. Clearly the authors of the Constitution were guided by their belief that “Governments are instituted among Men, deriving their just Powers from the Consent of the Governed.” Are we sure that we should to continue to abrogate more and more of our sovereignty to the political bodies that we elect to serve us? We might get what we don’t pray for.

KEN SCHONIGER
Pollock Pines

Comments

comments

Letters to the Editor

.

News

 
District 2 candidate statements tell of goals

By Dawn Hodson | From Page: A1

Sand Fire nears containment: 66 structures destroyed

By Cole Mayer | From Page: A1 | Gallery

 
Schedule for Highway 50 blasting closures

By News Release | From Page: A3

Tails wagging over dog park approval

By Julie Samrick | From Page: A3

 
Quarter-acre fire in Kelsey

By Rebecca Murphy | From Page: A3

.

Opinion

My Turn: Privatization of public services

By Mark Belden | From Page: A4

 
Policy book

By Mountain Democrat | From Page: A4

 
.

Letters

Piano replaced

By Letters to the Editor | From Page: A5

 
Comments sign-in policy

By Letters to the Editor | From Page: A5, 1 Comment

Save the Guinea Worm

By Letters to the Editor | From Page: A5, 1 Comment

 
Large bangs

By Letters to the Editor | From Page: A5, 2 Comments

Private property gets no respect

By Letters to the Editor | From Page: A5, 2 Comments

 
GDPUD management report

By Letters to the Editor | From Page: A5

District 2 supervisorial special election

By Letters to the Editor | From Page: A5, 4 Comments

 
.

Sports

Ex-Bruin lends a helping hand

By Steven Shaff | From Page: A8 | Gallery

 
Sierra Sharks finish middle of the pack

By Democrat Staff | From Page: A8

Roundup: July 29, 2014

By Democrat Staff | From Page: A8

 
Taz pull through for SSL trophy

By Patty Pope | From Page: A8

.

Prospecting

Nuns discover a pleasant place

By Lexi Boeger | From Page: B1 | Gallery

 
Bargains can be found everywhere

By Democrat Staff | From Page: B2 | Gallery

At a glance: Game time

By Mimi Escabar | From Page: B2

 
Barbecue dinner to benefit Blue Star Moms

By Mount Aukum Winery | From Page: B2

Stagecoach story takes riders on a trip

By Wendy Schultz | From Page: B3

 
Help needed to make cool ties

By Sew 4 | From Page: B3

Stroke and osteoporosis screenings planned

By Life Line Screening | From Page: B3

 
Gold Rush Days activities cancelled this year

By Sacramento Convention And Visitors Center | From Page: B4

Master Food Preservers: Tomato time

By Monique Wilber | From Page: B4

 
Sacramento area museums offer summer fun

By Sacramento Association Of Museums | From Page: B5

 
Build an author platform at the Library

By El Dorado | From Page: B5

.

Essentials

Weather stats 7-29-14

By Michael Raffety | From Page: A2

 
Building permits 6/2-6/2014

By Michael Raffety | From Page: A2Comments are off for this post

Crime Log: July 17

By Cole Mayer | From Page: A2

 
.

Obituaries

Merlyn Wilbur Adams

By Contributor | From Page: A2

 
Lisa Oliver Rose

By Contributor | From Page: A2

Wallace Murrel Thomas

By Contributor | From Page: A2

 
.

Real Estate

.

Comics

.

Women’s Health

Love the skin you’re in

By Noel Stack | From Page: WH4

Dump stress and improve your health, productivity

By Wendy Schultz | From Page: WH7Comments are off for this post

Women’s Health Expo

By Marshall Medical | From Page: WH8

Find the confidence you need to fight back

By Special to the Democrat | From Page: WH12

Our choices directly affect our health

By Special to the Democrat | From Page: WH14

They’re NOT your mother’s hearing devices!

By Marshall Medical | From Page: WH17