East Hampton!

Okay, its true..., I can't spell worth a shit! So..., if I have spelled something a little strange - just ignore it. If spell check doesn't catch it - I'm not going to either!

Hmm....

East Hampton Reels as Billionaire Town Floats Debt - Bloomberg.

"The Long Island sanctuary for the rich, where lobster salad sells for $85 a pound, has been hit by a double whammy: a tripling in workers' health costs since 2003, which officials failed to anticipate, and a 43 percent drop in revenue from mortgage taxes related to real estate sales in the first half of the year from 2007. Town officials for the first time plan to reduce the deficit by borrowing, after winning state approval for a $15 million bond sale."

"The town's bond rating suffered a four-level cut in May."

A four-level cut in your bond rating is huge folks! Very scary - the economy is starting to sting everyone! And I mean EVERYONE. So, a $15 million bond sale, on your bonds that have already been downgraded, - scary.

"East Hampton is self-insured to cover health care for its 448 employees and retirees. Costs associated with the plan increased to $9.2 million this year from $2.9 million in 2003, according to the official statement for bond anticipation notes sold in June, one-year securities that helped finance capital projects and improvements."

So..., you think we might need to reform health care yet? Yet? Now? How about right NOW! While I realize, that the folks that live in the Hamptons are wealthy - don't begrudge them. The are just people, like you and I, who have dreams, hopes, desires, failures, crazy family members, pimples, broken hearts, etc.... No one..., no one should have their health care costs increased to this extreme! And if properties aren't selling, or are selling for a reduced price, etc..., then a municipality's property tax income base is naturally going to decrease. Just like what is happening in every other town in the good ole U.S.A. What most people fail to realize is that the economies are so intertwined (including foreign country's economies) that it only takes a little shake, rattle and roll to set the pendulum swinging.

Remember, the financial market's always correct themselves. If a security, or set of securities, are over valued, it will only be a matter of time before the "bubble" bursts, the price slides downward and the market value is corrected. This is exactly what happened in the housing market - combined with extremely "loose" lending practices by mortgage companies. Anybody with a brain, could see this growing crisis looming overhead about three years ago. That would be everyone except - BUSH. Case in point - Fannie Mae and Freddie Mac are so extremely under capitalized that the government is going to have a hard time bailing them out! And folks..., they are just two, in the list of many, many mortgage related fatalities.

When a company is in trouble, in the financial markets, they start to "unload" their stocks, bonds, debt, etc..., in hopes that they can raise enough capital to sustain themselves through the rough spot that they are experiencing. The financial markets aren't "stupid" - its easy to tell when a company is in trouble and is starting to "dump" their assets onto the market scene. All one has to do is wait..., wait..., wait and the price for the "dumping" falls..., falls..., falls. Then you can pick up a bargain, so to speak. However; the troubled company picks up less and less value for their assets that are being sold off - and quickly realize that they aren't going to receive as much cash flow back into the organization as anticipated. So..., now they are in a worse position than they started out in..., their ratings get downgraded, making it practically impossible for them to raise more capital. Then..., they receive an audit or two..., and we learn that there was "creative accounting" happening and down they go. One right after another..., financial failure. (I've been on the regulatory end of this..., its ugly, brutal and a lot of innocent people loose their lively hoods. However; the guilty should pay!)

"Government Bailout!" Babe and I laugh hysterically when ever we see these two words in print. Bailout with what money? This country is next to broke, borrows heavily from other countries, and can't even figure out how they are going to keep social security and welfare afloat. No..., lets spend all of our tax dollars on fighting a ludicrous war, or wars for that matter, in which we should have never been involved in to begin with! Since when does two wrongs make a right? We don't like the fact that you are "beating up" on your countrymen..., so we are going to "beat up" on you! Oh, yes..., let's not mention how many foreign bridges BUSH has burned. How stupid and short sided is that kind of thinking? Ahh..., that's right..., big business stands to gain from wars: defense contracts, oil, all sorts of overseas services, etc.... All of that money you stand to gain from war isn't going to spend in hades, BUSH & CHANEY! Last time I checked..., paper burns - just like hearts and souls!

What are we, as a society, going to do with all of the families that have been displaced due to mortgage foreclosures? There are only so many apartments and houses for rent. So..., families merge together, whether they are related or not, and try to eek out a living and survive this economic downturn.

Hmm..., did anybody else find it interesting that Alan Greenspan, the ex-Chairman of the Board of Governors of the Federal Reserve, was smart enough to get the hell out of dodge before the big slide began? That should have been a huge sign folks - however, I bet I could ask all of my friends if they know who Alan Greenspan is and they wouldn't have the slightest clue. Why are people so dis attached from reality, lost in their own little worlds, not giving a damn to what is happening in the world around them? I struggle with this issue quite frequently. Babe is the only person that I can have a thought provoking conversation with about the plight of the world. Now that is a damned shame!

We did start teaching the girls, when they were quite young, about politics, the economy, thinking outside the box, caring for the welfare of other's around the world, gaining as much education as they possibly can, that there are two sides to every coin, etc.... That has paid off handsomely for our family of five. We can have all sorts of conversations regarding presidential elections, health care reform, the world economy, foreign leaders and challenges that they face in their respective countries, etc.... No, we don't all see eye to eye on every subject; however, their arguments are based in more fact than fiction and are made from a young persons perspective. The more they experience life - the more interesting the conversation becomes. Yes..., we went out on a limb to teach them to learn, learn and learn - contrary to the blinders that the rest of their family wears. They come home, all upset from visiting relatives, and can't believe the uninformed and misguided comments they hear at family functions. Teach your children to think, think and think some more before they base their opinions.