Ed Be Wrong, Maybe Dems Be Wrong

OK, I give up. When I hear Ed of the Ed Show calling for help for GM until things get better. Problem is they are not going to get better.

I have already advanced my reasons why. Cars of the personal variety are not an option for millions, as they once were. They cost more than our economy will be able to create. Likewise metrosprawl houses.

What we have needed for decades and what I have been saying for months is an economy that goes beyond the superficial fixes of green, to a recreation of living, the creation of new settlements where work and residence and education and health and entertainment are publicly available in communities where people walk to where they need to be.

Cyberspace makes this a possibility.

If we bulldozed the cookie cutter burbs with two car and more garages and started building new settlements connected by simple public transit, we would be on the way to a sane economy.

Maybe the President knows this and knows he cannot say it. But we need to have a gradual denouement of the truth. If I am wrong, my bad. If I am not, we are going to throw more and more billions at a problem that no one yet understands.

For more, hit the “pattern language” tag or search the phrase on this blog. Mr. Ed is dead wrong. But he is hardly alone.

ADDENDUM: This is not an invitation for a ripple of economic consequences stemming from a mega-failure. It is an invitation to go much farther than any in the Obama Administration have gone in imagining a change that will in fact accomplish many of its aims, including

1. Ending our dependence on oil.

2. Making a sustainable economy with a profusion of new jobs because each new or remade community will have micro-institutions that serve populations of up to 10,000 — preventive health, all-ages educational nodes utilizing high speed, sports and recreation, etc..

3. A vast simplification of governance accompanied by a massive overhaul of zoning to permit mixed usage and the building of scaled new eco-infrastructure. For example, common wind turbine for a community of 10,000, common solar paneling for the same community, common recycling and water reprocessing, and so forth.

I do not expect any of this to come without a struggle, but I do expect our economy to languish until something new and evolutionary that promises a better way of living is put in place.

THIS JANUARY POST MAY HELP EXPLAIN THE URGENCY OF THIS POV

A Wave Of Homelessness in Sacramento

SOURCE

It’s getting grim. And those nights are cold. Let’s work to turn this around ASAP.

More than a year ago, a handful of homeless people staked out the site on the northern edge of downtown Sacramento. Now there are more than 100 tents and anywhere between 300 to 400 people living without running water or sanitation. Their only protection from the elements is nylon tents and plastic tarps.

A single mid-day meal is available at a nearby faith-based charity called Loaves and Fishes. That’s where social worker Jim Peth says he’s seeing a lot of the newly homeless.

“That’s been very recent,” Peth says. “And you can tell because they’re much better dressed. They’re disoriented; they don’t know where to go. So they’re easy to spot.”

Step Two — The Mortgage Mess

Nothing more depressing than seeing someone removed from a home they paid astronomical amounts for in an economy that no longer supports, and never will again support, the money-pit life of endless cars, longer commutes and jobs that were always going to be there.

And now President Obama swings into step two of a three-phase first assault on the mountain of the old as eyes begin to open to the fact that the old will never return.

READ ABOUT THE PRESIDENT’S MORTGAGE INITIATIVE

A Democrat familiar with the proposal says it will include:

The price tag is $50 billion — from the TARP funds — plus more on top of that from other programs.

Government subsidies for lenders to modify loans to homeowners who are struggling to make payments. The government would subsidize the difference.

A program through Fannie Mae and Freddie Mac for homeowners to refinance their mortgages if they owe more than their homes are worth.

An effort to make loans more affordable through various means — extending loans, lowering interest rates, and other ways.

This is a necessary propping up but it solves nothing long term because the problem we face is not economic but one of what life is and should be about and how we want to live it.

If the American dream is the detached home and two or so cars and a commute to a job, this is the right recipe. If the pieces fit together and there are jobs.

If the American dream is to lead the world beyond the industrial age and forge a new way of living that is sustainable, where the value is in the things that make for sustenance, then this is a stop gap and we must look to the green in the stimulus as a starting point.

Jeffrey Sachs to Tim Geithner: Er…

I think Sachs is onto a solution here. For the banks. For Treasury. For us.


READ IT ALL

The bank cleanup has been stymied to this point over the valuation conundrum, stuck between paying an unduly high price for the toxic assets, and thereby bailing out the shareholders, and paying a low price, and thereby expropriating them while inducing a further credit squeeze. A “contingent warrant,” as recommended here, can combine bank recapitalization with a fair value divided between the taxpayers and original bank shareholders.

Full Obama Press Conference Video

With an intrusive opening ad from Cisco.

WATCH IT

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