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PLP's mortgage relief plan changed? Did reality set in?

by Rick Lowe

Here's the new twist according to the Speech from The Throne:

"The plight of homeowners in financial distress must be addressed if a stronger economy is to be restored."

"My Government will therefore work with the clearing banks and other institutional lenders to develop a financially sustainable mortgage relief programme aimed at assisting distressed homeowners in saving their homes from foreclosure. Participation in such a programme would be voluntary."

Read the speech here…

Mr. Hubert Ingraham (FNM), former Prime Minister stated in an interview with The Nassau Guardian that; "it appeared as if the government had scaled back its mortgage relief proposal. He said the plan presented in the Speech from the Throne seemed more practical, unlike the version that was talked about before the PLP won the general election." Read the entire article here…

The "revised" mortgage relief programme seems less dictatorial than what they were suggesting on the campaign trail, but it remains unworkable without adding more to the national debt that the country cannot afford.

What intrigues me about this "Helping people at gunpoint" is that banks are being made the scapegoats.

First, a mortgage is a legitimate contract agreed by both the lender and the borrower, incorporating terms for non-payment that were all agreed to up front before funds were advanced.

Second, the banks are being demonised in this matter as "profiteers" that are cold hearted. The banks are not the only people to "profit" from mortgages now in distress. Why not ask property developers, real estate sales people, lawyers, accountants, the government et al to return the profit/money they made from each sale? And,

Third, if the programme will now be voluntary for banks, one assumes the derogatory noise in the market about banks by the political class will cease?

It merits repeating that it must be incredibly tough for people to lose their homes (and my sister might lose her property so I understand first hand) but to throw reason out of the window in these contractual matters, is whimsical at best.

To paraphrase Penn Jillette, voting for our government to use force to get banks to give money to people who happen to be in arrears with their mortgage is immoral, self-righteous, bullying, laziness.

We will know soon enough if rational thought has slipped in to change the original concept of the mortgage relief plan. But all the promises during the campaign make it very difficult to step away from providing "relief".

Details of the PLP's mortgage plan from their 2012 election "Charter follows:

V. Alfred Gray. Same promises, different day?

by Rick Lowe

Here we go again, a new minister of agriculture is going to save the day and make The Bahamas self sufficient in food. Food security will be his first concern... Will the results Mr. Alfred Gray (PLP), recently inducted minister, promises be any different than those before him. In fact he was one of those ministers in a  previous incarnation.

Several years back, Mr. Pierre Dupuch (FNM), as minister of agriculture, stopped food stores importing bananas to "help" Bahamian farmers. Well it inconvenienced food store shoppers as the farmers could not supply the product. But guess what? All one had to do was drive to Potter's Cay and the vendors continued importing foreign banana's for the convenience of their clients.

Of course the results were dismal and eventually the programme was abandoned.

In more recent years (2010), Mr. Larry Cartwright (FNM), as minister of Agriculture, devised a $42 million plan over five years to assist local farmers and stem the tide of food imports.

No results have been reported yet, and they may never be known, if history is a yard stick, but we can assume they've been no less dismal than banning banana imports.

In the seven years from 2005 through 2012, the Ministry of Agriculture and Marine Resources and the Department of Agriculture combined have spent some $81 million, and what do we have to show for it?

Now Mr. Gray, is going to save the world, but if he was to look around New Providence he might enjoy the farmers market at Doongalik Studios on Village Road or once a month at the Bahamas National Trust. Good things are happening without government spending a dime of taxpayer funds.

In other words, the ingenuity of modern Bahamians is helping them create a market for their goods.

Instead of grandiose plans of food security that government promotes at the expense of everyone, for the direct benefit of a few, the private sector is developing this on its own.

Sure, the food stores might be able to have a specialty area for locally grown produce, poultry or meat, but it's a pipe dream to think we can be self sufficient in food at competitive prices. We simply do not have the capacity.

If there are farmers producing quality products all we need is a middle man or two to get the product to market. This way, we do not have to use taxpayer money to pay for packing houses where product rots yet the farmers still get paid by the taxpayer.

It's so tiring listening to the same old rhetoric. To paraphrase Eamonn Butler from his recent publication for the Institute for Economic Affairs in London, England, Public Choice - A Primer, if you buy a cup of coffee in the free market, you know exactly what it will cost you. You pay the whole cost and you get the whole benefit. But if government implements a programme, say in agriculture, the costs and benefits are spread among many people, yet you don't know exactly what it will end up costing you, or if you will get any direct benefit.

I think it would be better to close the department of agriculture quite frankly. I've had enough of the same promises every five years.

What's that saying about doing the same thing over and over and expecting different results?

Back in September 2011 Mr. John Hedden released an overview of Bahamian agriculture, you can read his seven part series here.

I would think Mr. Hedden's experience would be of some use to our Ministers of Agriculture? But on second thought that's doubtful as they all come to table believing they have a magic wand. Problem is the wand is our tax dollars and every new generations debt burden to bear.

Time for government to change to double entry bookkeeping...

...do the PLP have the firmness of purpose?

by Rick Lowe

After reading the comments of Mr. Michael Halkitis here… and Mr. Zhivago Laing here… I'm more convinced the public sector needs to move to Double Entry Bookkeeping from the Government Accounting or Fund Accounting method to ensure better accountability.

If they did so, they could tell at a glance what the true position of government financing is.

Of course the politicos of either party don't seem concerned. Maybe they know the truth, but it scares them so they punt the problem along to the next generation.

However, if the PLP are serious about bringing some sanity to spending, deficits and borrowing this would be a good opportunity to change the system over.

But I suspect their campaign was more symbolism about these subjects than substance, but we will see the evidence in short order.

I'm convinced reason dissipates when people are chauffeur driven and have a Police outrider.

Just kidding of course, but I'm not holding my breath while I await the PLP's move to cut spending, deficits and borrowing.

Future generations beware.

Reality cannot compete with dreams

"Reality cannot compete with dreams, at least not “fairly.” How easy to romanticize, perhaps about free enterprise, perhaps about possibilities of improving the world by some governmental policy which will restrict the freedom of others: Mr. Dooley made a good point when he said, “A man that’d expect to train lobsters to fly in a year is called a lunatic; but a man that thinks men can be turned into angels by an election is called a reformer and remains at large”. C. Lowell Harriss

John Stossel on Uncommon Knowledge

Enjoy a great 45 minute interview on Stossel's new book, No, They Can't: Why Government Fails-But Individuals Succeed.

Buy your copy of the book here…

Visit the Uncommon Knowledge web site here… and check out their You Tube Channel here…

Al Jarrett: Rest in Peace

by Rick Lowe

Al is reported to have died of a massive heart attack at 69 years of age.

I met Al when visiting the Rotary Club of West Nassau and always enjoyed chatting with him.

In fact we shared similar views on the debt and deficits being piled on by governments of The Bahamas.

He was a die hard PLP and did not let you forget it.

He will be missed.

Read more here…

A fitting tribute for Mr. Hubert Ingraham from Mrs. Anita Bernard

by Rick Lowe

Mrs. Bernard is another wonderful Bahamian and she offers her personal insights in the following letter to the editor entitled, Ingraham Was An Inspirational Leader.

I suspect both Mr. Ingraham and Mrs. Bernard will be missed.

Click here for the letter…

So Cuba might not have oil?

Rick Lowe

A friend sent this link over reporting that Repsol, the Spanish oil company was unsuccessful drilling an exploratory well off Cuba.

The report indicates that it's not unusual to come up dry with four out of five attempts when drilling for oil.

This presents another twist to The Bahamas efforts to find oil.

It's obviously an expensive exercise that requires a lot more expertise and money than we have here. The other point is how to distribute any profits if in fact oil is under our sea bed somewhere.

Let's hope the government is getting advice from numerous professional sources on how to move forward with this initiative rather than jumping in head first.

Albert Catiglia - Song of the week - May 21, 2012 - Catfish

by Rick Lowe

Catfish is another great Bob Dylan song that other people have performed including a nice version by Joe Cocker on his 1976 album, Stingray, but I'm taken by Albert Castiglia's (pronounced "ka-steel-ya") version.

We've seen Casteglia live a couple times now at  Maguire's Hill 16, in Fort Lauderdale and if we get the chance to see him again we most certainly will.

He usually performs his version of Catfish. If you don't know, the song is about Catfish Hunter, the great Yankee pitcher of years gone by.

You can find a couple of his CD's at iTunes and Catfish is on his 2008 CD, These Are the Days.

Please visit his web site here and buy some of his material.

Hope you enjoy Catfish below. The guitar solo around the 3:05 minute mark is well…majestic. Give it a listen.

Catfish

"Ideas Having Sex" A Conversation with John Tierney and Matt Ridley

On Reason TV

"Where ideas have sex, is in technologies," says author and biologist Matt Ridley, "we give far too much credit to individuals for innovation...all of them are standing on the shoulders of lots of other people."

"Ridley discussed his views on trade, invention and creativity with the New York Times' John Tierney at a Reason Foundation event at the Museum of Sex in New York City on March 8, 2012."

More…