Where's the CON in confidence? You hide it well...

I guess Washington relies on the factoid that Americans have a very short attention span.

Based on the comment from Lila Rajiva, the other day, who is the co-author of one of my favorite books, "Mobs, Messiahs, and Markets", and a must read (to which you can order from my book library spindle at the top) she mentioned that perhaps more writing needs to be done regarding the financiers who have swindled the world from its money. I do agree, do to the fact that most people have already forgotten what has really transpired in the past only four short months...You can find her blog on the right in the column titled "Other Blogs of Interest" to which I frequent and hers is called, Mind-Body Politic.

To recap;
Back in September, Bernanke and Paulson came to Washington and asked for a blank check with no strings attached so they could get the banks the $700B in order for the banks to begin to buy up the toxic assets...When Bush came forward and asked for the blank check-the public said,"not again with the blank check policy..." But basically the politicos gave in anyway after a few bullshit sessions to make things look good to their constituents since Nov. 4 was right around the corner...politics, right?!

Then the banks took the money and hoarded it. No one in Washington told them they actually had to DO something with OUR money we were giving to them-those who fucked it all up in the first place. Oh, some paid for some great parties and a few CEO's and such got some great golden parachutes albeit with different semantic wording in order to comply...but they still got their-I mean, OUR money...

Then the banks kept hoarding the money. They continue to blame it on the consumer confidence. Is this CON or CONfidence... Businesses failed, people went broke, people lost their homes, people lost their jobs, more people lost their homes...

Obama got elected and people began to see a new light to the world. People forgot about the shit...The banks kept hoarding the money...

But more businesses failed, more people went broke, more people lost their homes, more people lost their jobs, then more people lost their homes...

Well, Bernanke stated today, in a speech in London, that he thought that the banks should be given the rest of the $350B that Obama is asking for so that the banks could buy up the toxic assets.

I'm sorry, did I hear that again? I mean, did you stutter? I mean, do you mean it this time?

And I guess our Democratic Congress and Senate decided to get a set of balls when there is an incoming Democratic President. Where were the concerns and checks and balances for the Bush $350B(actually substantially more...)

I asked for the Democrats to get a set of balls, but perhaps they needed to have a damn backbone when we had the Bush criminals running the show...

Once again, you can't make this shit up!

Bernanke originally came in stating that our old friend Greenspan had failed at his job. By no oversight or foresight he seemed oblivious to the lending rates and bubble that was being created. Bernanke stated that Greenspan should have never brought down the rates as low as he did. Now, Bernanke has brought the rates to the lowest they have been since...I'm an American-I can't remember, oh that's a good thing for Bernanke...but I'll find out online...

Don't these people know that everything is recorded and secured for the rest of time through the internet, cell phones, Twitter, Facebook, blogs and more...?

Perhaps they don't care because they know that America has a very short attention span.

What was I saying again?...

Oh, yeah, I was talking about this guy who "made off" with all of our money...his name was Madoff! Anyway...

And we wonder where the CON is in consumer confidence...




This, the 237th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2009 Doug Boggs

You Suck, sir!

In an age of the Internet, preserved news bits, and YouTube we still have a mindset in Washington that thinks the world revolves around them.

Bush, Bernanke, Paulson, McCain, and Palin are all in this crowd of leadership. Karl Rove is one as well. But, let's get to some points. Bernanke, as head of the Federal Reserve, he and Treasury Secretary Paulson were the primary architects that reported with Bush on the initial "no strings attached" $700 Billion bailout plan. Well, with Bush attached to that news everyone knew that was going to be a farce. Congress told them to come back with a real idea...

So, their idea was to buy up the toxic mortgages and package them in order to help alleviate the stress on homeowners that are balancing on foreclosure. Well, still with no oversight or strings firmly in place, Congress gave them the money they asked for. Then, immediately, Bernanke and Paulson decided to spend their allowance a bit differently than they had expressed by giving it to all of their white collared friends on Wall Street. Then, something happened on the way to the forum...NOTHING!

The economy got worse, way worse.

The story goes on, but we'll cut to the chase. Bernanke announced an idea yesterday. It seemed as if he thought it was a new idea...It seems to be a similar idea that I espoused to be the program a while ago. He said to bring down the mortgage pricing for those struggling. Bring it down to the 3 percent level for about 5 years or so, with the government helping out on some of the back end.

Wait, hasn't the government already helped out on the back end? I mean, they have given banks hundreds of BILLIONS?!!

Then he came out with a great idea! He thought another option would have the government purchase delinquent or at-risk mortgages in bulk and then refinance them into the "Hope for Homeowners" or another government program that insures home mortgages. Uh, didn't we hear this one before?

Then he called for more action from banks to help in this time of crisis.

Uh, Ya Think?!

How about mandating them to do something. Banks have been taking our future tax dollars and doing NOTHING!

This is insane!?

After his great speech, the Dow dropped over another 200 points. It opened this morning another 150 points lower.

Good job with helping. Let's see, we as a society it seems agree that most of the execs on Wall Street should lose their jobs for failure. Paulson should lose his job for failure, Bernanke isn't doing shit and should go, the heads of the big three could leave and things would be fore the better...oh, and that Bush guy should have been gone a long time ago. In fact, he should go to prison for all that he has done, but that is another story...

Bernanke stressed the importance of curbing the foreclosure mess because it is so inter-linked with the economy's health. "Weakness in the housing market has proved a serious drag on overall economic activity," he said. "Steps that stabilize the housing market will help stabilize the economy as well."

Uh, Ya THink!?

Back to the initial plan that I was touting about a month or so ago. That one plan backed by the now heavily refinanced financial industry, the Treasury would seek to lower the rate on a 30-year mortgages to 4.5 percent by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac. It's unclear exactly how much the plan would cost. It is possible that Paulson will ask Congress for the second $350 billion installment of the $700 billion financial bailout package to bankroll the effort. Maybe, if the first round of money went into this idea in the first place we wouldn't be needing the second round of money...

But, I said that every loan out there should be able to be refinance into the 4% rate. Some will and some are still in loans that might be fine for them and lower than this, so it would be their choice. It needs to be available for EVERYONE!

Then, Sheila Bair who heads the FDIC chimed in saying, "Getting mortgage rates down is positive, but it doesn't help people that currently have unaffordable mortgages because it doesn't help them refinance. Low interest rates help some consumers, but the ones that really need help and can't refinance are not helped."

Ah, helping everyone! What a great idea!

Paulson has been opposed to tapping the bailout pool to fund a mortgage-relief program championed by the Sheila Bair at the FDIC. The $24 billion FDIC plan would use some of the rescue money to help back refinanced mortgages that would lower monthly payments.

Let's see, Paulson or Bush aren't keen on giving the blue collar folks in Detroit any fund either. Bush...you know that guy. The man with the amazing disappearing act in times of trouble. When the towers were being blow to shit, he kept on reading a book to the children...upside down. I don't think that that specific book was printed upside down either...Now, with the worlds worst economic crisis since 1930's depression, he is working on his library and his public view of his term.

I can give him a hint...You Suck, sir!




This, the 213th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!


(c)Copyright 2008 Doug Boggs

McCain, Bush, Keating, Cheney, Paulson, we could go on...

It is difficult for nearly anyone to fully grasp the repercussions of the current economic fallout. Most people don't know or understand the story of when, how, who, where, and why it took shape. We all want to know and understand, but it's complexity is beyond the scope of most people.

What I can say is that it is going to be a very bumpy ride for quite a long time for many. I believe we are at a tipping point of our current process of capitalism, as we know it. As a democratic society we are instituting much more of an elitist socialist process and an increasingly more restricted political process likened much more to communistic or dictatorship style governance.

This is all being done through elected officials?! such irony...

Right before our eyes we are seeing the definitive aspects of our democratically elected, capitalistic society that for a period of time, in the 1940's-1960's to much of the world's view, our country was the envy and forward leading nation on the planet. There was a respect that was earned for its time with the creation of community and societal programs such as Medicare, or Social Security, and unemployment benefits, and other social or entitlement programs available. It seemed that people actually cared about other people for a while.

That is until Reagan took office and Republican party began their "Me, me, me" policies shrouded with the religious rhetoric to make people think they are doing the right thing.

The funny thing is the history of the Republican party began with the leftist and in the late 1800's and early 1900'2 turned to the right. Now, there is no more right to turn to. Te party has become as far right as anyone can get. This has alienated many of the party as they can see some of the colors of the coat as it is taken off and exposed through the terribly run campaign from McCain, as well as, the Bush campaigns and failed administration.

But, we will see as history begins to unfold in the future that the past thirty years or so of Republican party players have raped and pillaged the American people of their money and rights to a point of quiet dictatorship and socialist elitism. This distribution of wealth that McCain seems to tout daily has been exemplified by what has transpired through his actions, Bush, Bernanke, Paulson, Cheney, and many others. I'm sure their off shore accounts are now filled to the brim with green. Their Bailout or Rescue plans have given billions to the top 1% right in front of everyone. All the while they tout they are doing it all for the taxpayer...

Thanks, I feel better already...



(c)Copyright 2008 Doug Boggs

The United States FICO score...

We have purged out some global economic results through watching the unfolding of the crisis throughout the world.

It seems the most powerful participant in the economic arena is the USA. Whether this is liked or not it is the case and has been exemplified with the global situation. It seems to have now been exposed that as the United States stays afloat so does the rest of the world. Ever since the Nixon Administration took the U.S. off the Gold standard and made the dollar the world currency it created a global safety net for the U.S. It is at the very least the means to which the other currencies of the world now are obliged to value their base.

The economic power mongers knew what they were planning at that time, and knew the stability it would create for the United States, and knew it was a ripe time to make that switch in order to guarantee the U.S. dominance in both monetary and military positions.

What we are now beginning to see is the global political pressures mounting due to the balance, or rather known imbalance, of the monetary pressures and the military pressures meeting halfway.

It would be best for the United States to get its financial obligations more in line in order for this imbalance of power to strengthen itself globally again. The respect of position is being lost in the fact that the United States is so heavily debt laden to other nations. The military strength is respected, but the power economically has been lost. We have seen emerging markets, like China and India, begin to create their own individual stability that could be overtaking the imbalance of economic power that the U.S. has held for the past 35 years since the removal of the gold standard. As long as the U.S. continues to be a debtor nation it will reduce its economic power throughout the world and it will become a necessity for the country to rely on military might and pressure to other nations rather than policy and economic partnerships.

As America has been held as the de-facto leader in the global arena, the other countries will not continue to allow this position to be held when the emerging power of another country, based on the debt America has to that country, could cause such economic uncertainty if the country began to sell of its dollars.

China holds the power to do just that. We are witnessing that the power of economic uncertainty is much more dynamic than that of military power and the current most powerful weapon in China's possession. The position that the U.S. continues to hold is if there become a military confrontation it might dismiss its monetary debt.
This would have China lose on both fronts if this were to occur. Whether China would play the sell card is not yet clear, although given the economic uncertainty of our time we may find out shortly. It seems, yet at this time, that the rest of the world still seems dependent on the economic health of America.

It may just be, through this economic crisis, that the U.S. may become the world de-facto leader simply based on the economics of the international interrelations and monetary policies that have become so inbred into today's debtor type of capitalistic society.

Being heralded as and being able to substantiate the claim of de-facto world leader are two different things. Global leadership has reached a tipping point in international politics today. The power players of old have shown that they are incapable of creating this position due to their greed and incompetence and our policies and power players must now change in order for the global transformation of community can be accomplished.

It stems from the fact of entitlement that America has come to own. People in America, and it starts from the examples sitting in the White House, feel that the world must work around the thoughts and ideals of the United States. This may not be altogether true as we are beginning to see today. We must earn the global respect once again, and not assume the de-facto power position, as we are finding the precariousness of that position.

We are seeing through the opinions of other countries and their desire for a major political change that Obama is the desired person at this opportune moment in history to begin to create the necessary changes that we must have globally. Through the global respect of new vision and policies can the other countries begin to fall back in line to the economic leadership of the United States.

We must begin to re-establish ourselves as the leader of the world in policy and monetary stability rather than simply demanding respect through military power. This type of international policy will find its demise to this country if there becomes a global uprise to the current means of global policy that we have experienced over these past eight years.

It is quite simple really, the FICO score of the United States has fallen dramatically in the past eight years. If we are unable to maintain our debt and reduce our debt other nations will reach a point, just as we are seeing banks globally reach a point, to not lend money to those with low FICO scores...






(c)Copyright 2008 Doug Boggs

The Billionare next door? Or overseas...

I will start today with a quote by Thomas Jefferson in a letter to the Secretary of the Treasury Albert Gallatin in 1802:

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

To truly understand what Bush, Cheney, Bernanke, and Paulson, and the .5% elitists are attempting to do with their "brilliant" ideas to strongarm our House and Senate to pass the "BailOut Package" is to create more unregulated options for the elite to buy stock.

You see, we are currently in the beginning stages of an unprecedented global financial boom. It may be hard to see right now, but that is part of the reason why. This is going to be bigger, longer lasting and with even a greater number of impossibly predictable outcomes than we've ever seen or thought before. The top wealthiest people have been preparing and are currently putting their ducks in a row, so to speak. By doing so, the "average Joe six pack" or "Joe the plumber" is getting left behind. The funny thing is, they have convinced the average taxpayer that is all in their best interests.

According to the highly read and financial industry respected report recently released by McKinsey Global Institute, from years 2005 to 2010 alone, the value of all the stocks, bonds, CDs and other financial assets held worldwide will soar from $118 trillion to $200 trillion. That’s an increase of $82 trillion in 5 years, or 69% in five years!

As I have stated previously in this blog, in the articleThere's a hole in my pocket we are experiencing the largest redistribution of wealth this world has ever seen. It is so profound it will also radically alter the global economic pecking order in a huge fashion.

Right now, Asia and the United States each account for 28% of the world economy. The World Bank estimates that America’s share of the world economy will slip a bit, dropping to 24% by 2030. But Asia’s share will double, reaching a staggering 55%. This simply means that the Asia of tomorrow will be twice as economically powerful as the United States is today. Why is that? And how can we get in the game? Let's take a look.

Our current means of portfolio investment has been coached to us, by our financial industry brokers over the past, you know those people on Wall Street that are the most privy to the rules of the game that helped create and fuel this economic crisis we have found ourselves in, to hold 5%-15% of international funds in ones portfolio. Perhaps you can begin to see that this will be a negative trend in ones future portfolio based on these two paragraphs alone. Keeping this pace, U.S. investor will soon realize that they are being left behind financially. Based on these changing economic indicators and global expansion we need to change our investing practices, not only for an individual investor to survive, but for our country to stay in the game. The questions is, can we?

Jeremy Siegel is a Wharton Professor and best-selling author who recently said investors should should have 40% of their holdings in overseas investments. If the government continues to allow, and pay tax credits (according the the Bush administration and the McCain campaign)for our corporations to send jobs overseas, doesn't it seem prudent to put your money there? It is best to invest in the companies that are the most profitable, right? Not a very American thing to do on both counts, but money has no allegiance to any country.

Doing that though is not as easy as one would think. You see the average American doesn't have the access to the market information that is necessary to capitalize and profit from the Asian boom. Getting your hands on the market intelligence is not as easy as one would like. The seasoned, wealth and well connected investors can and do.

Wall Street has know about this economic trend for a long time, and some could say, are helping to drive this global economic boom. Why do you think there is such a sell off in our stock market today? Perhaps it is partly based because the largest investors and institutions are buying overseas. I mean, have you ever had the chance to be in on an IPO? Chances are NO. These are saved for the wealthiest and largest investors. The rules are different.

Even investors who see and understand what’s happening could end up watching this wealth explosion from the bottom end of the ladder to success. That’s because federal regulations prohibit most American investors from buying many foreign stocks, even though overseas markets clearly will offer the greatest returns in the months and years to come.

Here is why...If a foreign company isn’t registered with the Securities and Exchange Commission, its shares are off-limits to most investors. Due to the costly registration process and myriad of paperwork it is discouraging many of these foreign companies from listing even American Depository Receipts (ADRs), a type of security U.S. investors trust and are willing to buy. These financial vehicles are easy to trade for the average investor, but becoming harder to come by.

Wealthy investors don’t have this dilemma. There is an obscure SEC regulation, Rule 144A, allows them to circumnavigate that rule and form investment pools through investment banks, so they can buy foreign-company shares.

Now, you can begin to see why the $700 Billion is going to the banks and bailing out the wealthy and not the average Joe sixpack...The big question I have then, is when will it reach the little guy? That trickly down thing we all seem to hear about but never see the advantage of?

We'll be looking into this in the coming weeks and bring what information we can muster to the Banter Table. Stay tuned.