It's remarkable the hubris of those with, that know what is best for those without. Yet the joke is always that advice has a direct correlation with those-with books. But the outcome for the masses is usually a great deal of pain, not to mention the lack of prosperity or opportunities. It’s usually along the lines of they. They should have been more prudent; they should have more education; they should not want so much.

Trying to explain to my 11-year-old son, the difference between prudence and risk-taking, I found my self talking in circles. For example, if owning a home is smart, under what exact conditions does that become stupid. Is it time and price? Or is it just cost of carry or use?

The current meme is the imprudence of the sub prime morass. How could they be so reckless? Who would buy a home no many down, roll in the high fees of transactions into an adjustable uncertain future rate?

Yet in my mind, from my dad that had a wild ride in the 70s market, a fixed rate brings certainty at a cost. Yet I have no problem buying a no money down, rolling in fees paying 6.5%. Yet others shriek, "you should have paid those fees with cash and have 10-20% down."

Well then, why not make it 50% down? Why not be the most prudent and pay 100% of all home transactions with cash and be debt free! Wait, there is more!

Carry of a home has other risks, taxes repairs, fires and floods. Why not have 100% of the home’s worth in cash or gold as a back up. Yes insurance is a burden. We can’t afford to pay that so wait until you have 200% of the homes value before purchasing.

Yes that seems prudent to all those that have land gold and can afford 200% of a home’s value in cash. Cash is king! We are prudent because we have cash.

It reminds me of all those that are very wealthy and say we should raise taxes on the rich. Yet all the taxes are from income. The joke is rich do not need an income, so they would pay no tax under their prudent proposals.

What upsets me is we live in the greatest country in human history. How in the world did we become so wealthy? Yet the very things that helped to unleash human drive and ambition, the profit motives, are used as arguments how this will ruin this country.

After reading a zillion news stories this weekend, the only truth I could find in any of them was that binge drinkers tend to use beer rather than hard liquor. The reason was taxes on beer are much lower. Therefore, per unit of alcohol beer is cheaper.





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