Gongol.com Archives: November 2011
Brian Gongol

November 15, 2011

Socialism Doesn't Work It's time to stop the silly tax breaks
A Des Moines Register analysis concludes that a whole lot of companies got special tax treatment in Iowa in return for promises to "create jobs"...and that a whole lot of them failed to live up to their end of the bargain. A smart economic-development environment starts with a level playing field for everyone and doesn't put government officials in the position to dole out favors to anyone. Why should one firm with ten employees subsidize another firm with 50, just because the one with 50 promises to hire people? The free-market solution would say that both should carry their own weight, and the one with the greatest opportunity to survive without subsidies should be the one to grow.

Business and Finance Chinese ratings agency threatens to downgrade US debt again

Science and Technology "Psychic" chickens out on chance to prove her supposed "powers" to talk to the dead

Computers and the Internet Amazon.com begins shipping the Kindle Fire

Threats and Hazards Big Brother in London taxis

Business and Finance What a bank failure looks like
The main thing people need to understand about what causes a bank failure is that banks don't keep every dollar that they receive in deposits. They only keep a fraction of those deposits sitting around; the rest, they lend out to other people. The percentage kept in reserve is the "capital reserve". From place to place, the amount varies, but in general it's going to be about 8%, in accordance with the latest international agreements. The more conservative the operation, the higher the reserve amount. So when a bank (like Liberty Bank in West Des Moines) falls to 2.5% in reserves, then it's in serious trouble.

Broadcasting Audio files for the "Brian Gongol Show" on WHO Radio from November 13, 2011

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