Proposition on gay marraiges, but none on bailing out banks

It's funny how American democracy and capitalism work. People get to vote on propositions on some issues in the ballot. We have a proposition-8 letting people vote on if gay marraiges should be legal. But, the biggest material expense for tax-payers, the bank bailout was never even on the ballet (or) on any proposition. The 700 billion dollar buyout is the probably biggest individual expense bill in recent times. No say for people on that. Only elected representatives (who were elected on realities based on 2004-2006) get to decide.

I really wonder if a proposition on bank bailout would pass if put to a public vote.

Bailout of banks: The power of "loss language" at work

I am currently taking the course of "Organizational behavior", in which we were taught about the power of "loss" language. It's amazing how the media, politicians and biased economists are effectively using the technique to convince people of the 700 billion dollar bailout of financial institutions.

They said "We invite risk of economic collapse if the bailout does not happen". Instead, they could have said "Bailout is essential to continued functioning of banks."

They referred to the $700 billion dollar plan as "bailout" instead of "rescuing banks" plan

Hedging everything in life

How peaceful the life would be if I could hedge everything I use for a long period of time (say 30 years) . If I could hedge things like specific quantities of milk, spinach, carrots, chicken and so on, it would make retirement planning so much easier. I could pay for all these costs much earlier. This kind of insurance would provide me great sense of economic security. Famines, wars, hurricanes would not affect the cost of running my life. In the long run, businesses would have incentive to reduce prices of products, to make these derivatives worthless.

Departmental stores can sell derivatives for food products like bags of rice and wheat. Hospitals can sell promises of future health care. Airlines could sell derivatives of flight tickets for direct routes. Starbucks could sell derivatives promising guaranteed price of lattes and so on.

Imagine a day when you go to Starbucks and the barista asks you "how much does your tall latte cost?"