I believe that we are reaching the bottom of this real estate downturn. I say this due to the fact that of the news of housing starts have reached their lowest level ever since records of this have been kept beginning in 1959. We have reached the bottom, but is it the final bottom?
With Obama now looking to mend the pain of the mortgage crisis it may begin to heal the lending portion of the real estate business. With the fact that NO ONE has been able to get a mortgage at this time, despite the billions that we have given banks, they continue to NOT lend. Once people are able to borrow again they will get back to wanting to own a home, or borrow for their businesses.
The housing boom also created a huge inventory of new homes. When the lending shut down the amount of homes on the market dramatically began to increase due to no sales. With the additional foreclosure market adding to the inventory it simply added more inventory on top of inventory. This halted the new build construction industry nearly overnight.
As the construction market nearly stopped completely one of the largest industries began seeing high unemployment and reducing wages through more competition.
Usually, when new housing slows, the remodel business picks up. This didn't happen due to the fact that banks shut down most people's HELOC (Home Equity Lines of Credit) hereby nearly stopping the residential construction business overnight. As banks shut down lending, business couldn't get money either, thereby shutting down the commercial tenant improvement business as well.
I believe that Obama must get some rules to the financial industry to distribute the bailout money. We have reached a point in which the government, which is deeply entrenched in the financial industry with money at this time, must also be deeply entrenched in how it orchestrates these funds. We have reached a point of social finance, but the legislators are refusing to accept this and go there fully. Too late, my friends. The money has exchanged hands and it is now time for the rules of the game to be set. If we don't find ourselves accepting a socialistic approach to finance with full disclosure and accountability Wall Street will find new avenues to bleed the system and once again stifle the necessary growth for the country.
Greed must become regulated in order for this crisis to end.
This, the 257th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts
Wednesday, February 18, 2009
Tuesday, February 17, 2009
A stimulus plan...Part One
What would happen if everyone agreed to stop paying their credit card payments. Or better yet, everyone gets a new start...
Let's take a look at this a moment. Since the government, I mean WE, have paid out billions to the banks, perhaps we could call it even. Let's start over...
This would be a great stimulus package! There are millions of people with such high credit card debt and many of it is NOT due to mishandling of their funds. Perhaps a family has gone into debt due to a job loss and loss of income and healthcare and there becomes a health issue. Due to Washington's continued failure to allow American's the same health care that Washington legislators receive has become a farce. That alone shows the disrespect and continued cultural separation that those same legislators possess all the while they use the health care system as a primary talking point for their "care and considerable efforts taken to their job while in Washington..."
Or, perhaps, someone has used their credit cards to finance a small business that they have and times have gotten bad. This is what has happened on Wall Street and they all received billions. So...
Since we have already given the banks their money, let's say we are no longer obligated to pay credit card debt and we all start over. This would give the average American a stimulus of $16,635. Since this is still less than the average that the American has given all of the banks with our future tax dollars, I say we call it a wash.
Now, what would each average citizen be able to do without the need to pay back that $16,635? Perhaps pay their mortgage?!
Also, since there is still an outstanding bailout balance of, let's say, $25,000 per citizen, to which the banks have acquired due to their own mishandling of funds, to which they are supposed to be the masters of, let's say that each citizen is able to open a savings account with that amount in it.
Okay, now, each citizen has received more than a years salary in cash and debt relief, for many people, to which they now have some in a savings account.
Then, each citizen will be given a credit card from the bank which they decided gets to hold their funds, with a limit in the amount of the $25,000 that they have in that savings account. The new rule is that the bank will not allow a borrower to borrow over that amount. This is called secured credit. The payment for this card will automatically be taken from their secured account. The borrow is unable to access the amount of money they use on their credit card so as to continually have enough to cover their debt load in their secured account. Also, there would be No more penalties!
This would be a stimulus package that would get the economy moving from the bottom up. People would be able to save, borrow against, use to purchase things all to help get things moving again. This could all be handled fairly quickly, as it seemed Washington has been able to piss away our money to Wall Street in the past six months rather quickly.
There would be less bankruptcy, a less personal debt ridden society, and a fresh start for America.
It could work...
This, the 256th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
Let's take a look at this a moment. Since the government, I mean WE, have paid out billions to the banks, perhaps we could call it even. Let's start over...
This would be a great stimulus package! There are millions of people with such high credit card debt and many of it is NOT due to mishandling of their funds. Perhaps a family has gone into debt due to a job loss and loss of income and healthcare and there becomes a health issue. Due to Washington's continued failure to allow American's the same health care that Washington legislators receive has become a farce. That alone shows the disrespect and continued cultural separation that those same legislators possess all the while they use the health care system as a primary talking point for their "care and considerable efforts taken to their job while in Washington..."
Or, perhaps, someone has used their credit cards to finance a small business that they have and times have gotten bad. This is what has happened on Wall Street and they all received billions. So...
Since we have already given the banks their money, let's say we are no longer obligated to pay credit card debt and we all start over. This would give the average American a stimulus of $16,635. Since this is still less than the average that the American has given all of the banks with our future tax dollars, I say we call it a wash.
Now, what would each average citizen be able to do without the need to pay back that $16,635? Perhaps pay their mortgage?!
Also, since there is still an outstanding bailout balance of, let's say, $25,000 per citizen, to which the banks have acquired due to their own mishandling of funds, to which they are supposed to be the masters of, let's say that each citizen is able to open a savings account with that amount in it.
Okay, now, each citizen has received more than a years salary in cash and debt relief, for many people, to which they now have some in a savings account.
Then, each citizen will be given a credit card from the bank which they decided gets to hold their funds, with a limit in the amount of the $25,000 that they have in that savings account. The new rule is that the bank will not allow a borrower to borrow over that amount. This is called secured credit. The payment for this card will automatically be taken from their secured account. The borrow is unable to access the amount of money they use on their credit card so as to continually have enough to cover their debt load in their secured account. Also, there would be No more penalties!
This would be a stimulus package that would get the economy moving from the bottom up. People would be able to save, borrow against, use to purchase things all to help get things moving again. This could all be handled fairly quickly, as it seemed Washington has been able to piss away our money to Wall Street in the past six months rather quickly.
There would be less bankruptcy, a less personal debt ridden society, and a fresh start for America.
It could work...
This, the 256th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
Tuesday, February 10, 2009
Excuse me sir, do you have CHANGE?
Timothy Geithner is making drastic change in Washington...NOT...
It seems that the previous Repugnicant administration felt that unregulation, unaccounted, free and corrupt capitalism should and did prevail. Now, this new TARP(2) program being delivered is a change to...be "nearly" the same.
I guess change is defined as, not the same.
By that, it looks as though the banks will receive even more of our future tax dollars. But there is no real regulations as to how this money is to be spent...again. You can rest assured that the money will be another buffer as the banks unload their toxic assets to the wealthy investors for minute pennies on the dollar. One might think that they could get into the action, however, unless you can buy bulk, you will not be receiving these great deals.
You see banks are waiting to sell of these toxic assets (because there are no rules given as to them having to have to), to which they willing and actively created, because there are currently no buyers. The prices are not right yet. The banks don't want to sell them off at rock bottom and have to write them down. So, it seems, as they have waited so patiently, they are going to receive more bailout funding for their own actions to offset their write downs. In other words, exchange one dollar for the other. Then, the rich investors that cannot get into stalled Hedge Funds any longer will buy up those assets for pennies once the banks are assured of their losses through TARP money.
Then, there will be buy-offs and sell-offs before that trickles down to average Joe homeowner for a rewrite on their near to foreclosed mortgage. By the time average Joe homeowner can receive better options on his mortgage he might get a deal like 90 cents on the dollar. Quite a difference. However, average Joe homeowner will have an opportunity to receive a better rate on their credit card. That seems to be Washington's way of creating spending is by creating the availability to create more debt for the consumer.
The money is supposed to be issued as a stimulus package, but many more hundreds of billions will be going corporate before we find tens of billions getting into the hands of the people.
The funny thing about this is that "It's our funking money!!"
This, the 251st entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
It seems that the previous Repugnicant administration felt that unregulation, unaccounted, free and corrupt capitalism should and did prevail. Now, this new TARP(2) program being delivered is a change to...be "nearly" the same.
I guess change is defined as, not the same.
By that, it looks as though the banks will receive even more of our future tax dollars. But there is no real regulations as to how this money is to be spent...again. You can rest assured that the money will be another buffer as the banks unload their toxic assets to the wealthy investors for minute pennies on the dollar. One might think that they could get into the action, however, unless you can buy bulk, you will not be receiving these great deals.
You see banks are waiting to sell of these toxic assets (because there are no rules given as to them having to have to), to which they willing and actively created, because there are currently no buyers. The prices are not right yet. The banks don't want to sell them off at rock bottom and have to write them down. So, it seems, as they have waited so patiently, they are going to receive more bailout funding for their own actions to offset their write downs. In other words, exchange one dollar for the other. Then, the rich investors that cannot get into stalled Hedge Funds any longer will buy up those assets for pennies once the banks are assured of their losses through TARP money.
Then, there will be buy-offs and sell-offs before that trickles down to average Joe homeowner for a rewrite on their near to foreclosed mortgage. By the time average Joe homeowner can receive better options on his mortgage he might get a deal like 90 cents on the dollar. Quite a difference. However, average Joe homeowner will have an opportunity to receive a better rate on their credit card. That seems to be Washington's way of creating spending is by creating the availability to create more debt for the consumer.
The money is supposed to be issued as a stimulus package, but many more hundreds of billions will be going corporate before we find tens of billions getting into the hands of the people.
The funny thing about this is that "It's our funking money!!"
This, the 251st entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
Tuesday, January 13, 2009
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
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
Friday, January 9, 2009
A Banter of Basic Economics
This text is from Don Stott, a gold and metals trader, who puts out a column on Tuesday and Thursday of each week on his website Colorado Gold.
January 8, 2009:
There are so many complications, economics wise and there shouldn’t be because as Ludwig von Mises once said, defining economics, “People Act.” It’s just that simple! Examples are everywhere. Toyota is closing its plants for 11 days, and how many employees does this affect? Let’s say 2,000, at $200 a day, for 11 days. The loss in payroll to workers is a total of $4,400,000. Toyota will save $4,400,000, and the laid off workers will buy $4,400,000 less food, cars, gasoline, or whatever they won’t buy, because they have fewer dollars to use.
Multiply this by millions of permanent layoffs, bankruptcies, shut downs, going out of businesses, chains closing for good, autos down the tubes, housing starts virtually zero, and sales almost the same, and what do you get? The Toyota effect, multiplied many times over. 2.5 Million jobs were lost in 2008.
You get millions out of a job, millions behind in their mortgage and credit card payments, millions with homes worth less than is owed on them, and the chain reaction follows. The more layoffs there are, the more store closings and bankruptcies there will be, and resultant layoffs and increasing of all of the above. In other words, thanks to the welfare state, which wasn’t in existence in the 1930’s depression, credit cards which weren’t in existence in the 1930’s depression, and un-backed dollars, which were backed in the 1930’s depression, and no money down home purchases and ARM mortgages, which weren’t possible in the 1930’s depression, the conditions currently extant can and probably will make this depression far more severe than the 1930’s depression. The facts say it will be far worse.
Unfortunately, you haven’t seen anything yet.
Take carburetors. For over 75 years, cars, trucks, planes, and everything powered with gasoline engines, used carburetors to mix air and gas to feed into the engine’s intake manifold. They worked well, but on occasion, they became ‘flooded,’ and the engine wouldn’t run. (Modern, fuel injected engines can’t be ‘flooded.’) Carburetors had two things on them which caused ‘flooding.’ (1) The accelerator pump, and (2) The choke. On cold mornings, often the choke, which restricts the flow of air, might make the mixture too rich, and cause the ‘flooding,’ or often in hot weather, too much gas pedal pumping would inject too much raw gas into the engine, ‘flooding’ it, and causing it not to run. Both things, which caused the ‘flooding,’ and engines not running, were TOO MUCH GAS.
The solution was to stop the flooding by depressing the accelerator all the way to the floor, and crank the engine till the excess gas was used up, or open the choke and wait for it to evaporate. Gasoline engine technology is not the point here. The point is this: What got us into this economic mess? TOO MUCH MONEY INSERTED INTO AN ECONOMY by the Federal Reserve. Just like the engine being flooded with too much gas, the solution is to cut off the gas.
The Federal Reserve under Alan Greenspan flooded America with easy money, easy mortgages, and easy credit. The result was bad credit, bad mortgages, and everything being over-priced. Pouring more gas into a flooded carburetor, guaranteed the problem would be made much worse. Cutting off the gas would be the solution. Pouring $2 trillion, and god only knows how much more into the economy, is like pouring gas into a flooded carburetor. It will only make matters worse. Obama says he has consulted 20 of America’s best, most respected economists, and they say pour more gas (printing press dollars) into the flooded carburetor (economy), and the engine of America will start. NUTS! I wish Obama had called me.
The same exact thing was tried in the 1930’s, with huge government spending, and it took WW II to get us out of the depression. We’re already in two wars, and I certainly wouldn’t want us in a third one.
How about this as a cure for the current depression?
(1) Get us OUT of both wars we’re now in, and bring home all the troops. Let ‘em solve their own problems over there. We’ve got huge ones here, and can no longer concern ourselves with theirs. This will save hundreds of billions a year, if not well over a trillion.
(2) Disband most federal bureaucracies, especially the Federal Reserve, and do it Quickly. The DOT, DOE, HUD — and the list is long — serve no useful purpose. The Department of Education educates no one, the Department of Transportation transports no one, etc. This will save hundreds of billions a year.
(3) Revert to the Constitution, which gives government no authorization to subsidize anything. This will put an end to all federal welfare, and save hundreds of billions a year.
(4) Get out of the UN, NATO, and any and all foreign entanglements, at a savings of more hundreds of billions, and get the UN out of America. Declare unconditional neutrality, and send no money or advice overseas at any time, or for any reason.
(5) Close our borders with Mexico, and see to it that they stay closed 100%. More savings.
(6) As illegals come up for police stops, free medical care, welfare, school enrollment etc., which are in the hundreds of thousands each year, instantly send them home.
(7) Renounce NAFTA, and all laws, which encourage, tax wise, the building of plants offshore, and resulting layoffs here. With the budget balanced, and no more Federal Reserve, recovery would be pretty quick.
Today, every single state is in terrible economic condition because of layoffs, bankruptcies, and low tax collections. They have to balance their budgets. The D.C. Gang doesn’t, and can print and print and print, which they are doing, and will continue to do with nary a smidgen of responsibility. We all pay for their lack of responsibility with every single dollar we own being reduced in purchasing power.
I can go on and on, but the point is this: The ones who harm us the most — other than the Congress who has gotten us into this with a hundred years of bad legislation — are bureaucrats, welfare recipients, and illegals, who would be out of work, and that’s great! Let D.C. turn itself into a ghost town, full of worthless, out of work ex-bureaucrats. Maybe they’d burn the place down and we could start over. Let the illegals go home by themselves, or by force when they are picked up. If states want to subsidize the poor, or illegal, they can, but not the federal government. All of these ideas would actually balance the budget, and make America strong again. None of these ideas have a Chinaman’s chance in hell of coming to pass. Not a single one. Obama will print up another trillion dollars in un-backed scrip, and we’ll have hyper-inflation, except in housing, because that has yet to reach bottom.
To fix a flooded engine, you cut off the gas. To fix an economy flooded with paper money, you cut off the paper money, not print trillions more! The economy is in such a sorry state, flooded with fake money, that the fed interest is close to zero. They’ll pay you NOTHING to store your scrip for you. Wise people have taken their scrip, and turned it into precious metals, which will always have value in any currency, or all by itself. An economy such as ours, which has been flooded with unbacked scrip, and ceased to run, as in a flooded engine, has to get itself out of the mess by ceasing the printing of scrip.
It will be very painful to millions of people who have not been acting wisely, or who have been depending on Uncle Sam for their sustenance. The pain of this depression is unimaginable today. We’re only at the very beginning of it. The only sensible way to get out of it, is to let it run its course, and at rock bottom, the economy will begin to rise like the Phoenix Bird.
If my ideas ever came into being, there would be wholesale riots by those cut off, and many millions would die. Wonderful! We are flooded with not only too much scrip, backed by nothing, but too much human trash, who have been flooded with handouts from the public treasury. Millions actually believe that government owes them a living, which is gross error, and extremely costly. They, like the scrip, are basically worthless, and they must be gotten rid of to make our economy healthy again. How to do it? I give up, or at least won’t write about it.
* * * * * * * * * *
My thoughts and recap:
There are some various ideas to which I can see and agree with his points, but I can't go with him all of the way. Perhaps because much of his rants are right winged, conservative, classist, with much hidden racism-or not so hidden. His ideas of the seperatist concept of hunker down is highly dangerous in such a flat and shrinking economic and social world.
The world is looking for a leader on a global scale, the likes to which this country has been since WWII. However, the Bush Administration has set the perception and confidence in this country, to the rest of the world, back many generations. Radical change in the opposite direction through positivity and unification are what people are yearning for. When the masses have opportunity, there are massive amounts of opportunity available to all. When opportunity is available only to a small populace, a small amount of reward is distributed. It's proportional relativism as to its result. The conservative concepts of trickle down economics has shown itself to not work.
In our world of a growing global market and expanding economic opportunity for the largest middle class expansion on a mass scale we should not put ourselves and the world in a position that hinders that, but we must embrace that with openness and new ideas. In the words of the republican icon Reagan, "Tear down the wall."
Although, the writer Don Stott, is a broker with metals to move, there is extreme instability in the metals arena as with anything else at this time. There is nearly nothing anyone can do right now until the financial sector begins to take risks again. Due to the fact that there seems to be a lull in anything as there is a new administration coming in, institutions are careful as to how and when they are going to make moves and in what direction as it seems the Obama administration will be making some changes.
Until that time, there is no where to hide. As a tactical maneuver it is a time to sit in the bunker and wait out some of the cross fire. We all know that this is a time where some profitable deals can be made, but, one must take heeded caution as to the entry and exit strategies.
This, the 236th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
January 8, 2009:
There are so many complications, economics wise and there shouldn’t be because as Ludwig von Mises once said, defining economics, “People Act.” It’s just that simple! Examples are everywhere. Toyota is closing its plants for 11 days, and how many employees does this affect? Let’s say 2,000, at $200 a day, for 11 days. The loss in payroll to workers is a total of $4,400,000. Toyota will save $4,400,000, and the laid off workers will buy $4,400,000 less food, cars, gasoline, or whatever they won’t buy, because they have fewer dollars to use.
Multiply this by millions of permanent layoffs, bankruptcies, shut downs, going out of businesses, chains closing for good, autos down the tubes, housing starts virtually zero, and sales almost the same, and what do you get? The Toyota effect, multiplied many times over. 2.5 Million jobs were lost in 2008.
You get millions out of a job, millions behind in their mortgage and credit card payments, millions with homes worth less than is owed on them, and the chain reaction follows. The more layoffs there are, the more store closings and bankruptcies there will be, and resultant layoffs and increasing of all of the above. In other words, thanks to the welfare state, which wasn’t in existence in the 1930’s depression, credit cards which weren’t in existence in the 1930’s depression, and un-backed dollars, which were backed in the 1930’s depression, and no money down home purchases and ARM mortgages, which weren’t possible in the 1930’s depression, the conditions currently extant can and probably will make this depression far more severe than the 1930’s depression. The facts say it will be far worse.
Unfortunately, you haven’t seen anything yet.
Take carburetors. For over 75 years, cars, trucks, planes, and everything powered with gasoline engines, used carburetors to mix air and gas to feed into the engine’s intake manifold. They worked well, but on occasion, they became ‘flooded,’ and the engine wouldn’t run. (Modern, fuel injected engines can’t be ‘flooded.’) Carburetors had two things on them which caused ‘flooding.’ (1) The accelerator pump, and (2) The choke. On cold mornings, often the choke, which restricts the flow of air, might make the mixture too rich, and cause the ‘flooding,’ or often in hot weather, too much gas pedal pumping would inject too much raw gas into the engine, ‘flooding’ it, and causing it not to run. Both things, which caused the ‘flooding,’ and engines not running, were TOO MUCH GAS.
The solution was to stop the flooding by depressing the accelerator all the way to the floor, and crank the engine till the excess gas was used up, or open the choke and wait for it to evaporate. Gasoline engine technology is not the point here. The point is this: What got us into this economic mess? TOO MUCH MONEY INSERTED INTO AN ECONOMY by the Federal Reserve. Just like the engine being flooded with too much gas, the solution is to cut off the gas.
The Federal Reserve under Alan Greenspan flooded America with easy money, easy mortgages, and easy credit. The result was bad credit, bad mortgages, and everything being over-priced. Pouring more gas into a flooded carburetor, guaranteed the problem would be made much worse. Cutting off the gas would be the solution. Pouring $2 trillion, and god only knows how much more into the economy, is like pouring gas into a flooded carburetor. It will only make matters worse. Obama says he has consulted 20 of America’s best, most respected economists, and they say pour more gas (printing press dollars) into the flooded carburetor (economy), and the engine of America will start. NUTS! I wish Obama had called me.
The same exact thing was tried in the 1930’s, with huge government spending, and it took WW II to get us out of the depression. We’re already in two wars, and I certainly wouldn’t want us in a third one.
How about this as a cure for the current depression?
(1) Get us OUT of both wars we’re now in, and bring home all the troops. Let ‘em solve their own problems over there. We’ve got huge ones here, and can no longer concern ourselves with theirs. This will save hundreds of billions a year, if not well over a trillion.
(2) Disband most federal bureaucracies, especially the Federal Reserve, and do it Quickly. The DOT, DOE, HUD — and the list is long — serve no useful purpose. The Department of Education educates no one, the Department of Transportation transports no one, etc. This will save hundreds of billions a year.
(3) Revert to the Constitution, which gives government no authorization to subsidize anything. This will put an end to all federal welfare, and save hundreds of billions a year.
(4) Get out of the UN, NATO, and any and all foreign entanglements, at a savings of more hundreds of billions, and get the UN out of America. Declare unconditional neutrality, and send no money or advice overseas at any time, or for any reason.
(5) Close our borders with Mexico, and see to it that they stay closed 100%. More savings.
(6) As illegals come up for police stops, free medical care, welfare, school enrollment etc., which are in the hundreds of thousands each year, instantly send them home.
(7) Renounce NAFTA, and all laws, which encourage, tax wise, the building of plants offshore, and resulting layoffs here. With the budget balanced, and no more Federal Reserve, recovery would be pretty quick.
Today, every single state is in terrible economic condition because of layoffs, bankruptcies, and low tax collections. They have to balance their budgets. The D.C. Gang doesn’t, and can print and print and print, which they are doing, and will continue to do with nary a smidgen of responsibility. We all pay for their lack of responsibility with every single dollar we own being reduced in purchasing power.
I can go on and on, but the point is this: The ones who harm us the most — other than the Congress who has gotten us into this with a hundred years of bad legislation — are bureaucrats, welfare recipients, and illegals, who would be out of work, and that’s great! Let D.C. turn itself into a ghost town, full of worthless, out of work ex-bureaucrats. Maybe they’d burn the place down and we could start over. Let the illegals go home by themselves, or by force when they are picked up. If states want to subsidize the poor, or illegal, they can, but not the federal government. All of these ideas would actually balance the budget, and make America strong again. None of these ideas have a Chinaman’s chance in hell of coming to pass. Not a single one. Obama will print up another trillion dollars in un-backed scrip, and we’ll have hyper-inflation, except in housing, because that has yet to reach bottom.
To fix a flooded engine, you cut off the gas. To fix an economy flooded with paper money, you cut off the paper money, not print trillions more! The economy is in such a sorry state, flooded with fake money, that the fed interest is close to zero. They’ll pay you NOTHING to store your scrip for you. Wise people have taken their scrip, and turned it into precious metals, which will always have value in any currency, or all by itself. An economy such as ours, which has been flooded with unbacked scrip, and ceased to run, as in a flooded engine, has to get itself out of the mess by ceasing the printing of scrip.
It will be very painful to millions of people who have not been acting wisely, or who have been depending on Uncle Sam for their sustenance. The pain of this depression is unimaginable today. We’re only at the very beginning of it. The only sensible way to get out of it, is to let it run its course, and at rock bottom, the economy will begin to rise like the Phoenix Bird.
If my ideas ever came into being, there would be wholesale riots by those cut off, and many millions would die. Wonderful! We are flooded with not only too much scrip, backed by nothing, but too much human trash, who have been flooded with handouts from the public treasury. Millions actually believe that government owes them a living, which is gross error, and extremely costly. They, like the scrip, are basically worthless, and they must be gotten rid of to make our economy healthy again. How to do it? I give up, or at least won’t write about it.
* * * * * * * * * *
My thoughts and recap:
There are some various ideas to which I can see and agree with his points, but I can't go with him all of the way. Perhaps because much of his rants are right winged, conservative, classist, with much hidden racism-or not so hidden. His ideas of the seperatist concept of hunker down is highly dangerous in such a flat and shrinking economic and social world.
The world is looking for a leader on a global scale, the likes to which this country has been since WWII. However, the Bush Administration has set the perception and confidence in this country, to the rest of the world, back many generations. Radical change in the opposite direction through positivity and unification are what people are yearning for. When the masses have opportunity, there are massive amounts of opportunity available to all. When opportunity is available only to a small populace, a small amount of reward is distributed. It's proportional relativism as to its result. The conservative concepts of trickle down economics has shown itself to not work.
In our world of a growing global market and expanding economic opportunity for the largest middle class expansion on a mass scale we should not put ourselves and the world in a position that hinders that, but we must embrace that with openness and new ideas. In the words of the republican icon Reagan, "Tear down the wall."
Although, the writer Don Stott, is a broker with metals to move, there is extreme instability in the metals arena as with anything else at this time. There is nearly nothing anyone can do right now until the financial sector begins to take risks again. Due to the fact that there seems to be a lull in anything as there is a new administration coming in, institutions are careful as to how and when they are going to make moves and in what direction as it seems the Obama administration will be making some changes.
Until that time, there is no where to hide. As a tactical maneuver it is a time to sit in the bunker and wait out some of the cross fire. We all know that this is a time where some profitable deals can be made, but, one must take heeded caution as to the entry and exit strategies.
This, the 236th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
Bailout Package for Porn?
Hey, it can't hurt to ask. And that is what Larry Flynt and Joe Francis are doing. They are arriving in white Prius's, on their first trip to the committee, to ask for some of the handouts that are going on.
You know Larry Flynt. He has been an outspoken advocate for the freedom of speech for decades, as well as, the publisher of Hustler Magazine. His company has an annual turnover of approximately $300 million. Flynt has fought several legal battles involving the First Amendment, and has run for public office a number of times. He has bipolar disorder and is paralyzed from the waist down due to injuries sustained in a 1978 assassination attempt. At one point in his life Flynt states, just like Bush, that he has had a vision of god. And just like Bush, he was born again and became an Evangelical christian. Unlike Bush, Flynt distributes porn while Bush...well, we all know what he distributes...
You have heard of Joe Francis, but he may not be the household name that Larry Flynt is. I'm sure you've seen some advertisements for Joe's company which make and market the "Girls Gone Wild" videos. His company brings in over $100 million per year.
Both are continually in and out of courtrooms. Both have built business empires through the legitimate sale of pornography. Both are feeling the effects of the financial downturn as people begin to 'tighten their belts'.
As pornography is a legitimate and highly lucrative business in America to the tune of nearly $12 billion, they feel on behalf of that industry that perhaps there is room for some bailout money for them as well. Since Wallstreet has failed the global economy, which in turn, has begun to hurt the sales of the pornography industry they feel that there is room for financial bailout discussions.
We all know that there are many politicians who have their 'one on the side', or their own 'intern page' that they fondle. Larry and Joe feel that, if they all use their heads, they may find room in their pockets for a porn bailout.
Hey, you guys, the line starts back there...
This, the 235th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
You know Larry Flynt. He has been an outspoken advocate for the freedom of speech for decades, as well as, the publisher of Hustler Magazine. His company has an annual turnover of approximately $300 million. Flynt has fought several legal battles involving the First Amendment, and has run for public office a number of times. He has bipolar disorder and is paralyzed from the waist down due to injuries sustained in a 1978 assassination attempt. At one point in his life Flynt states, just like Bush, that he has had a vision of god. And just like Bush, he was born again and became an Evangelical christian. Unlike Bush, Flynt distributes porn while Bush...well, we all know what he distributes...
You have heard of Joe Francis, but he may not be the household name that Larry Flynt is. I'm sure you've seen some advertisements for Joe's company which make and market the "Girls Gone Wild" videos. His company brings in over $100 million per year.
Both are continually in and out of courtrooms. Both have built business empires through the legitimate sale of pornography. Both are feeling the effects of the financial downturn as people begin to 'tighten their belts'.
As pornography is a legitimate and highly lucrative business in America to the tune of nearly $12 billion, they feel on behalf of that industry that perhaps there is room for some bailout money for them as well. Since Wallstreet has failed the global economy, which in turn, has begun to hurt the sales of the pornography industry they feel that there is room for financial bailout discussions.
We all know that there are many politicians who have their 'one on the side', or their own 'intern page' that they fondle. Larry and Joe feel that, if they all use their heads, they may find room in their pockets for a porn bailout.
Hey, you guys, the line starts back there...
This, the 235th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2009 Doug Boggs
Thursday, December 11, 2008
When would Adam Smith shower?
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I wanted to go back to the Oct. 16th entry and re-introduce the discussion of Adam Smith and his famed "Wealth of Nations" book.
We have seen, these past few days, the level of respect and recognition that the Bush administration has of where the money flow from the TARP bailout should go. It is quite obvious that they care more for the suits on Wall Street who decide to shower in the morning before they get to the office, than the do for the hard working Americans who must shower after they get home from work.
Again, we revisit the "Wealth of Nations", Book V, Ch.2, Of the Sources of the General or Public Revenue of the Society...
V.2.8
No two characters seem more inconsistent than those of trader and sovereign. If the trading spirit of the English East India Company renders them very bad sovereigns, the spirit of sovereignty seems to have rendered them equally bad traders. While they were traders only they managed their trade successfully, and were able to pay from their profits a moderate dividend to the proprietors of their stock. Since they became sovereigns, with a revenue which, it is said, was originally more than three millions sterling, they have been obliged to beg extraordinary assistance of government in order to avoid immediate bankruptcy. In their former situation, their servants in India considered themselves as the clerks of merchants: in their present situation, those servants consider themselves as the ministers of sovereigns.
V.2.9
A state may sometimes derive some part of its public revenue from the interest of money, as well as from the profits of stock. If it has amassed a treasure, it may lend a part of that treasure either to foreign states, or to its own subjects.
As we look at our current state of affairs that have plagued the American taxpayer in order to bailout the corporations, we are not seeing any of this "amassed treasure" that we have handed to Washington reach any of its "subjects".
Let's look again at the relevance to Smith's writings and today's economic crisis.
Treasury Secretary Paulson previously publicly professed that we should make sure these businesses (the financial institutions, AIG, and Fannie and Freddie) do not fail. However, as the people who shower in the morning in Washington try to find where to place the next $350 Billion, they continue to raise the issue of the private jets that the Big 3 used to get to Congress to ask for money. I agree that it wasn't a good move, however, the Washington suits neglect to mention all of the private jets that the financial institutions, AIG, and others use on a daily basis. They also forget to remind people of the ways that these bailed out firms of Wall Street have manipulated their books in order to still hand out year end bonuses to their people. They are calling them incentives for the new year...
The Republican welfare state for the rich shows us that the trickle down theory of economics does not work. It is like Washington has received a little slight of hand parlor trick from Vegas magicians to use with the tax payers money. Your and my future earnings. The funds from the hard working people who mostly shower after work, is being slighted from our wallets while we sit in the audience and smile unknowingly in amazement.
The interesting thing about this democratic capitalistic management philosophy that has transpired through the Bush administration is that we are riding a fine line to communism and or dictatorship. Now, through the Bush bailout, we are riding a fine line between capitalism and socialism.
As I have stated previously, there is NOT ONE WAY to do things as we have come to find that a totally free market capitalism does not work. When you put the suits of Wall Street in an arena without regulation it is the same as a kid in a candy store, or Joe the Plumber in Home Depot.
Our system is built on a capitalistic system with socialistic tendencies. What we have recently experienced is a huge redistribution of wealth to the rich with no parameters to the receivers of the tax payers funds. Or, rather a socialistic system for capitalistic tendencies. Congress failed us big time for giving out the nearly $500 Billion without strings attached or rules to the game. The suits of Wall Street are now unwilling to part with our money that we gave them. This is leaving the economy in a worse position than it was two months ago.
Paulson failed. Well, actually he begs to differ. But then, he showers in the morning. I would venture that he should also shower at night to remove all of the filth he creates during the day.
There is a slight irony to capitalism and Karl Marx. I use the first volume of Marx's major work, "Capital", which was published in German in 1867, as an example. In it, Marx focused on the labour(sic) theory of value and what he considered to be the exploitation of labour by capital. The labour(sic) theory of value held that the value of a thing was determined by the labor that went into its production. This contrasts with the modern understanding of mainstream economics, that the value of a thing is determined by what one is willing to give up to obtain the thing. Ironically, Smith is often cited for being the conceptual builder of free markets in Capitalism, and also cited as a main contributor to Communist theory, via Marx.
Smith believed that while human motives were often driven by selfishness and greed, the competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. Nevertheless, he was wary of businessmen and argued against the formation of monopolies.
Due to the globalization of nearly everything, including currency, in order to keep prices low of products it is the hard working second and third world countries that do much of the labor. As the world becomes more competitive and smaller it is becoming harder to find ways to stretch the production dollar.
Smith discussed at length of the sovereign social state. In today's Republican party they continue to claim that the welfare state as being dis functional. That is until it is time to meet the needs of the sovereign. Our modern TARP program is case in point.
As quoted from The Wealth of Nations:
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages."
I hope that Obama comes out on Jan. 21, 2008, after his first nights sleep as President, addresses the nation by informing us that his first actions will be that the recipients of our hard earned funds MUST begin the distribute those funds back to the people and small businesses to get this economy moving again. That Detroit MUST make new cars that are electric, Hybrid, battery and more. That the government will begin to put money back into the infrastructure of the country and they need people to work...TODAY!
Bush knew about infrastructure and rebuilding. He just spent eight years and trillions of dollars in the WRONG country. Good riddence sir, and don't let the door hit you in the ass on the way out!
Man, I must be making money since it is still morning, but after this I need a shower.
This, the 217th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2008 Doug Boggs
(If you have any difficulty or problems with this please comment or email so that we can address the issue immediately.)
I wanted to go back to the Oct. 16th entry and re-introduce the discussion of Adam Smith and his famed "Wealth of Nations" book.
We have seen, these past few days, the level of respect and recognition that the Bush administration has of where the money flow from the TARP bailout should go. It is quite obvious that they care more for the suits on Wall Street who decide to shower in the morning before they get to the office, than the do for the hard working Americans who must shower after they get home from work.
Again, we revisit the "Wealth of Nations", Book V, Ch.2, Of the Sources of the General or Public Revenue of the Society...
V.2.8
No two characters seem more inconsistent than those of trader and sovereign. If the trading spirit of the English East India Company renders them very bad sovereigns, the spirit of sovereignty seems to have rendered them equally bad traders. While they were traders only they managed their trade successfully, and were able to pay from their profits a moderate dividend to the proprietors of their stock. Since they became sovereigns, with a revenue which, it is said, was originally more than three millions sterling, they have been obliged to beg extraordinary assistance of government in order to avoid immediate bankruptcy. In their former situation, their servants in India considered themselves as the clerks of merchants: in their present situation, those servants consider themselves as the ministers of sovereigns.
V.2.9
A state may sometimes derive some part of its public revenue from the interest of money, as well as from the profits of stock. If it has amassed a treasure, it may lend a part of that treasure either to foreign states, or to its own subjects.
As we look at our current state of affairs that have plagued the American taxpayer in order to bailout the corporations, we are not seeing any of this "amassed treasure" that we have handed to Washington reach any of its "subjects".
Let's look again at the relevance to Smith's writings and today's economic crisis.
Treasury Secretary Paulson previously publicly professed that we should make sure these businesses (the financial institutions, AIG, and Fannie and Freddie) do not fail. However, as the people who shower in the morning in Washington try to find where to place the next $350 Billion, they continue to raise the issue of the private jets that the Big 3 used to get to Congress to ask for money. I agree that it wasn't a good move, however, the Washington suits neglect to mention all of the private jets that the financial institutions, AIG, and others use on a daily basis. They also forget to remind people of the ways that these bailed out firms of Wall Street have manipulated their books in order to still hand out year end bonuses to their people. They are calling them incentives for the new year...
The Republican welfare state for the rich shows us that the trickle down theory of economics does not work. It is like Washington has received a little slight of hand parlor trick from Vegas magicians to use with the tax payers money. Your and my future earnings. The funds from the hard working people who mostly shower after work, is being slighted from our wallets while we sit in the audience and smile unknowingly in amazement.
The interesting thing about this democratic capitalistic management philosophy that has transpired through the Bush administration is that we are riding a fine line to communism and or dictatorship. Now, through the Bush bailout, we are riding a fine line between capitalism and socialism.
As I have stated previously, there is NOT ONE WAY to do things as we have come to find that a totally free market capitalism does not work. When you put the suits of Wall Street in an arena without regulation it is the same as a kid in a candy store, or Joe the Plumber in Home Depot.
Our system is built on a capitalistic system with socialistic tendencies. What we have recently experienced is a huge redistribution of wealth to the rich with no parameters to the receivers of the tax payers funds. Or, rather a socialistic system for capitalistic tendencies. Congress failed us big time for giving out the nearly $500 Billion without strings attached or rules to the game. The suits of Wall Street are now unwilling to part with our money that we gave them. This is leaving the economy in a worse position than it was two months ago.
Paulson failed. Well, actually he begs to differ. But then, he showers in the morning. I would venture that he should also shower at night to remove all of the filth he creates during the day.
There is a slight irony to capitalism and Karl Marx. I use the first volume of Marx's major work, "Capital", which was published in German in 1867, as an example. In it, Marx focused on the labour(sic) theory of value and what he considered to be the exploitation of labour by capital. The labour(sic) theory of value held that the value of a thing was determined by the labor that went into its production. This contrasts with the modern understanding of mainstream economics, that the value of a thing is determined by what one is willing to give up to obtain the thing. Ironically, Smith is often cited for being the conceptual builder of free markets in Capitalism, and also cited as a main contributor to Communist theory, via Marx.
Smith believed that while human motives were often driven by selfishness and greed, the competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. Nevertheless, he was wary of businessmen and argued against the formation of monopolies.
Due to the globalization of nearly everything, including currency, in order to keep prices low of products it is the hard working second and third world countries that do much of the labor. As the world becomes more competitive and smaller it is becoming harder to find ways to stretch the production dollar.
Smith discussed at length of the sovereign social state. In today's Republican party they continue to claim that the welfare state as being dis functional. That is until it is time to meet the needs of the sovereign. Our modern TARP program is case in point.
As quoted from The Wealth of Nations:
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages."
I hope that Obama comes out on Jan. 21, 2008, after his first nights sleep as President, addresses the nation by informing us that his first actions will be that the recipients of our hard earned funds MUST begin the distribute those funds back to the people and small businesses to get this economy moving again. That Detroit MUST make new cars that are electric, Hybrid, battery and more. That the government will begin to put money back into the infrastructure of the country and they need people to work...TODAY!
Bush knew about infrastructure and rebuilding. He just spent eight years and trillions of dollars in the WRONG country. Good riddence sir, and don't let the door hit you in the ass on the way out!
Man, I must be making money since it is still morning, but after this I need a shower.
This, the 217th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2008 Doug Boggs
Tuesday, December 9, 2008
it depends on the neighborhood...
George Bush purchased his ranch in Crawford, TX just before he began running for his first term as President. Now, upon his exit of this office he will be moving into a swanky suburban neighborhood of Preston Hollow, in Dallas, TX.
Perhaps he needs a new image in order for his upcoming Library at Southern Methodist University. More of an intellectual city dweller, than that of a cowboy?
A bit of news about this new neighborhood he is moving into. Until 2000, the neighborhood association's covenant said only white people were allowed to live there, though an exception was made for servants. Enacted in 1956, part of the original document reads: "Said property shall be used and occupied by white persons except those shall not prevent occupancy by domestic servants of different race or nationality in the employ of a tenant."
In one of the richest neighborhoods in the United States, he will be residing near T.Boone Pickens-the billionare oilman behind the Swift Boat advertisements that ruined the presidential bid of John Kerry in 2004, Ross Perot-the billionare who once ran for the office Bush stole, and Tom Hicks-the man who gave Bush a $25,000 campaign contribution after his 1994 gubernatorial election and his purchase of the Texas Rangers baseball franchise from the man who was then the Texas Governor in 1998. Mr Bush’s 2,400 per cent return on his initial $600,000 investment in the Rangers is the main source of his personal wealth...Besides what he may be skimming from the top of this $trillion dollar bailout package.
This, the 215th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2008 Doug Boggs
Perhaps he needs a new image in order for his upcoming Library at Southern Methodist University. More of an intellectual city dweller, than that of a cowboy?
A bit of news about this new neighborhood he is moving into. Until 2000, the neighborhood association's covenant said only white people were allowed to live there, though an exception was made for servants. Enacted in 1956, part of the original document reads: "Said property shall be used and occupied by white persons except those shall not prevent occupancy by domestic servants of different race or nationality in the employ of a tenant."
In one of the richest neighborhoods in the United States, he will be residing near T.Boone Pickens-the billionare oilman behind the Swift Boat advertisements that ruined the presidential bid of John Kerry in 2004, Ross Perot-the billionare who once ran for the office Bush stole, and Tom Hicks-the man who gave Bush a $25,000 campaign contribution after his 1994 gubernatorial election and his purchase of the Texas Rangers baseball franchise from the man who was then the Texas Governor in 1998. Mr Bush’s 2,400 per cent return on his initial $600,000 investment in the Rangers is the main source of his personal wealth...Besides what he may be skimming from the top of this $trillion dollar bailout package.
This, the 215th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2008 Doug Boggs
Friday, December 5, 2008
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
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
Saturday, November 29, 2008
Death of a Salesman?
When you think about it, Henry Paulson is a new kind of Willy Loman. If there has ever been a sales job done it has been Paulson with the ultimate. Arthur Miller would have had a heyday with this one.
In the famed play by Mr. Marilyn Monroe, he had an aging salesman who is no longer able to earn a living, and receives only a small commission. He is losing his mind and has attempted to kill himself by inhaling gas from the water heater, as well as crashing his car. He is obsessed with the post war interpretation of the American Dream.
In the new revised story we have Paulson making everyone else lose their minds, and rather than inhaling gas from the water heater we find ourselves swallowing an unbearable oil pricing as we listen to the news about South Dakota Congressman Bill Janklow getting off for murdering someone with his car. The obsession with the post war interpretation is now obsessed by the ongoing multi manufactured war and the failing interpretation of the American Dream.
Well, Henry Paulson makes a slightly different new Willy Loman than the original character, but he has created many just like Loman due to his sale of the century. Perhaps Paulson is more like Willy's brother, Ben. Ben is the wealthy and recently deceased older brother who only appears during Willy's day dreams and time shifts. Willy looks up to him with the highest regard. Perhaps Congress is more like Willy Loman, but let's move on. But, Miller's Willy worked for a man who only had to wake up in the morning, put his slippers on, and make phone calls, and had made millions of dollars. Willy assumes that one does not need to work or have ambition, but that all these men needed was a "smile and a shoeshine" to be successful. So, as the new kind of Willy, Paulson came from the failed companies that we, as the tax payer pansies (or is it ponzies?), are now bailing out. He had reached a dead end in his career. This new Willy was at the top of his game but the sky was falling in on him. His only recourse to his career and life was the ultimate sale, the ultimate con. The final closeout, pre-holiday sale. And that he did.
In a sense Paulson has just shown the American people that the American dream can still exist. He created a Trillion dollar sale within a few weeks at best to give him, Bush and cronies their job security and offshore padding to last many lifetimes. What a commission! With that said, again, perhaps Paulson is more of brother Ben. By making a few calls and doing a few meetings he has been able to take the retirement away from nearly everyone for two generations at least. He has bested some of the greatest salesman of the world with this one.
Congress sat back and ate up the whole story. Like the old Willy Loman. The new Willy, Henry Paulson, sold everyone on the idea that the world was going to crash if this money isn't put into the bad home loans immediately. Has any of the money that has already been distributed gotten there yet? No, the economy just gets worse. So, the new Willy, in another amazing sale, Paulson comes forward and states that he thought that the industry need stability first. I guess he forgot to mention that in the initial discussions. So, is the industry stable now?
This modern story of the famed play is taking different turns and we get to watch it play out. In the final scene of Miller's play we have fittingly a funeral scene, with everyone standing over Willy's grave. Biff who is Willy's oldest son, Happy who is the younger son, Linda who is Willy's wife, and their neighbors Charley and Bernard. The eldest son, at this point learns to accept himself for what is, Happy, the younger generation still wants to carry on Willy's dream of success in the city, and Linda explains that she can't cry. Despite all of the problems that Miller's Willy Loman had she had made the last payment on the house, ending with the words "We're free, we're free..."
In Paulson's rendition the ending is going to play out a bit differently. The older generation will remain the same and will resign themselves to what is, and the younger generation will also remain similar and try to carry out the American dream in the big city. This is America and always has been. But, for the character of Linda, there will be that day when there will be no more tears left but there will be no more house left to make a final payment on as the foreclosure took that dream away. That dream that Bush so proudly talked early on in his first term of helping American's get into a home and enjoy the American dream of home ownership. The pre-planning was happening and no one noticed.
With Paulson creating the new generation of Willy Loman, we give Paulson the great ironic line that Miller gave to Happy, who says it best. "All right, boy. I’m gonna show you and everybody else that Willy Loman did not die in vain. He had a good dream. It’s the only dream you can have-to come out number-one man.”
This, the 208th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2008 Doug Boggs
In the famed play by Mr. Marilyn Monroe, he had an aging salesman who is no longer able to earn a living, and receives only a small commission. He is losing his mind and has attempted to kill himself by inhaling gas from the water heater, as well as crashing his car. He is obsessed with the post war interpretation of the American Dream.
In the new revised story we have Paulson making everyone else lose their minds, and rather than inhaling gas from the water heater we find ourselves swallowing an unbearable oil pricing as we listen to the news about South Dakota Congressman Bill Janklow getting off for murdering someone with his car. The obsession with the post war interpretation is now obsessed by the ongoing multi manufactured war and the failing interpretation of the American Dream.
Well, Henry Paulson makes a slightly different new Willy Loman than the original character, but he has created many just like Loman due to his sale of the century. Perhaps Paulson is more like Willy's brother, Ben. Ben is the wealthy and recently deceased older brother who only appears during Willy's day dreams and time shifts. Willy looks up to him with the highest regard. Perhaps Congress is more like Willy Loman, but let's move on. But, Miller's Willy worked for a man who only had to wake up in the morning, put his slippers on, and make phone calls, and had made millions of dollars. Willy assumes that one does not need to work or have ambition, but that all these men needed was a "smile and a shoeshine" to be successful. So, as the new kind of Willy, Paulson came from the failed companies that we, as the tax payer pansies (or is it ponzies?), are now bailing out. He had reached a dead end in his career. This new Willy was at the top of his game but the sky was falling in on him. His only recourse to his career and life was the ultimate sale, the ultimate con. The final closeout, pre-holiday sale. And that he did.
In a sense Paulson has just shown the American people that the American dream can still exist. He created a Trillion dollar sale within a few weeks at best to give him, Bush and cronies their job security and offshore padding to last many lifetimes. What a commission! With that said, again, perhaps Paulson is more of brother Ben. By making a few calls and doing a few meetings he has been able to take the retirement away from nearly everyone for two generations at least. He has bested some of the greatest salesman of the world with this one.
Congress sat back and ate up the whole story. Like the old Willy Loman. The new Willy, Henry Paulson, sold everyone on the idea that the world was going to crash if this money isn't put into the bad home loans immediately. Has any of the money that has already been distributed gotten there yet? No, the economy just gets worse. So, the new Willy, in another amazing sale, Paulson comes forward and states that he thought that the industry need stability first. I guess he forgot to mention that in the initial discussions. So, is the industry stable now?
This modern story of the famed play is taking different turns and we get to watch it play out. In the final scene of Miller's play we have fittingly a funeral scene, with everyone standing over Willy's grave. Biff who is Willy's oldest son, Happy who is the younger son, Linda who is Willy's wife, and their neighbors Charley and Bernard. The eldest son, at this point learns to accept himself for what is, Happy, the younger generation still wants to carry on Willy's dream of success in the city, and Linda explains that she can't cry. Despite all of the problems that Miller's Willy Loman had she had made the last payment on the house, ending with the words "We're free, we're free..."
In Paulson's rendition the ending is going to play out a bit differently. The older generation will remain the same and will resign themselves to what is, and the younger generation will also remain similar and try to carry out the American dream in the big city. This is America and always has been. But, for the character of Linda, there will be that day when there will be no more tears left but there will be no more house left to make a final payment on as the foreclosure took that dream away. That dream that Bush so proudly talked early on in his first term of helping American's get into a home and enjoy the American dream of home ownership. The pre-planning was happening and no one noticed.
With Paulson creating the new generation of Willy Loman, we give Paulson the great ironic line that Miller gave to Happy, who says it best. "All right, boy. I’m gonna show you and everybody else that Willy Loman did not die in vain. He had a good dream. It’s the only dream you can have-to come out number-one man.”
This, the 208th entry in bloggoland! Thanks for reading and coming back. I always enjoy the comments, emails and the banter!!
(c)Copyright 2008 Doug Boggs
Friday, November 21, 2008
The eyes have it...You gotta see this!!
I found this video from the G20 meeting to be such a personification of how the world has experienced things and as to how other world leaders truly feel about our current lame duck President. Either it exemplifies the arrogance that Bush seems to always exude while in public or it is clearly how our other world leaders actually think of this man and his reign over these past eight years.
You might have pilfered away your billions through your war and your Bailouts for a rainy day, Mr. Bush, but it must be quite a feeling to not be able to look anyone in the eyes, as well as anyone even wanting to look into your eyes.
Very sad as a human being.
As it has been said before, "The eyes have it..."
* * * * *
I now want to show you the other GOP favorite. She went to pardon the Thanskgiving Turkey for Alaska. Upon her pardon speech she stood and took questions from some press and ended up with an irony of all ironies...
Watch this...for some it may be difficult to watch...
This, the 200th entry in this bloggoland! Thanks for reading and coming back. I always enjoy the comments and emails and the banter!!
(c)Copyright 2008 Doug Boggs
You might have pilfered away your billions through your war and your Bailouts for a rainy day, Mr. Bush, but it must be quite a feeling to not be able to look anyone in the eyes, as well as anyone even wanting to look into your eyes.
Very sad as a human being.
As it has been said before, "The eyes have it..."
* * * * *
I now want to show you the other GOP favorite. She went to pardon the Thanskgiving Turkey for Alaska. Upon her pardon speech she stood and took questions from some press and ended up with an irony of all ironies...
Watch this...for some it may be difficult to watch...
This, the 200th entry in this bloggoland! Thanks for reading and coming back. I always enjoy the comments and emails and the banter!!
(c)Copyright 2008 Doug Boggs
Wednesday, November 12, 2008
Polished program of deceit
"Well, there you go again." That old famous line from the Repugnicant's favorite trickle down leader, Ronald Reagan. This time it needs to be said to them. I knew things would turn out this way. The lies to get their hands on a TRILLION dollars is mind boggling.
US Treasury Secretary Henry Paulson stated today that the bailout is working. I'm not sure what planet that he is on, but on this one nothing has changed except that the same banks that he has been partnered with during his career, and those that he has done business with in his career have received huge sums of money. Is any of that money "trickling" down to main street? NO! The banks are still in freeze mode with their funds. I would like to know from any readers, if you know of anyone who has received a new loan or refinance from this bailout...I'm waiting...I thought so. The banks have not loosened their funds a bit.
Bush and Paulson had stated previously to Congress and Senate that it would use the money to buy up bad debt. Now that they have the funds they have abandoned those plans and switched gears to simply continue to buy shares in banks to boost their funding. In other words, GIVE a failed institution money for doing a shit job. They gave out loans that they knew they would NOT be held accountable for due to the fact that they were packaged in such creative ways that it would take years to tear apart. Paulson is the same person who was on game that masterminded this kind of behavior in the first place through his previous positions. There were no measures in this bailout to these institutions that held them accountable as to how they would redistribute these funds. So, are they spending their money in the US...? Perhaps they are going to redistribute it into China as the dollar has done quite well there in the past few weeks with their economy going down the toilet...! Or perhaps they are filling their offshore accounts before they leave office...
This is exactly the socialistic "spreading of the wealth" that the Repugnicants touted throughout the campaign that Obama would be doing. Only it is a socialist program for the rich, how typical. Remember, when I said to mark my words that they will piss away the funds and none will be left when Obama gets into office...
How about helping out the now (and always) struggling car companies, like the deal that Lee Iacocca did in the 80's so that the thousands of people in Michigan's and other areas around the United States auto maker manufacturing companies can keep their jobs. Of course, Alabama Republican Senator Jeff Sessions adds, "Once we cross the divide from financial institutions to individual corporations, truly, where would you draw the line?" ...uh, let's see, aren't these financial institutions individual corporations? Or are they handing money out to the entire industry? This is unbelievable!
Why not give the car companies some assistance to help all of those people keep their jobs, by making the car companies build more fuel efficient and ecologically responsible cars for these funds. Have stop gap measures to make sure these things take place and hold them accountable. Oh, wait, this administration has no idea how to do that! Accountability? uuhh, isn't that the accounting dept.s' problem...Let's call the CFO and see if they know what that means, you know those guys at Arthur Anderson, we know them....Oh, yeah, Arthur, I loved that movie...
Instead of giving the banks hundreds of billions of dollars so that they can spend it where ever they choose, why not refinance the entire housing industry. Redefine ALL loans.
Here is an idea...Every loan could be reset at a new rate, for example let's say 3 or 4%. The loans would be through the government program of a seven year fixed. Seven years is enough to let people and the economy get things back together again. At that point, the borrower will reset to their previous loan and rate. This will make people rethink their purchase decisions and living decisions for the future with a deadline. Some will be able to be assisted with this, and some won't. For those that won't probably should not be in their situation to begin with. This will allow ample time for people to get out if it won't work for them. This would also allow ANY personal residence home owner the availability to get relief from the program and help put people into new homes again or keep their existing homes. This would assist the hard hit construction industry and construction supply industry immediately to help money flow. This would also help with the lending industry and getting some of those people back to work with refinances and home purchases again. This would free up people's lives and minds and move the economy forward. The government would be able to take an equity stake of the difference in each loan if the people were to sell within their loan timeline of seven years.
I know this is a thumbnail sketch, but it would make the economy move again immediately. What is going on now is Reaganomics all over again. That was a huge success for the rich but failed for the rest of the country.
Will history ever teach our government anything?! Oh, yes, it will teach them how much the lemmings will allow to be screwed and for how long, while the rich elitists rake it in...again...
By getting money into the people's hands, and not the corporations, will allow this economy to move immediately. Now, is the time, with prices of housing at near lows, and stocks at decade low marks for people to have the opportunity to take advantage of that. This will put money back into the corporations, as well, as the people. Simply giving banks the funds to redistribute this wealth, of which is the people's money to begin with, holds the commoner down. This is OUR money that is being pissed away to the rich! Doesn't anyone see this?!
Now, they are talking about giving the banks more money on the credit card lending, student loan, and car loan industry. This is another way of saying, "We will give the banks more money to lend out to the people so that they can get further into debt", vs helping the people get OUT of the deep debt that these institutions convinced them to get into in the first place! It is this debt that is creating the struggling economy as people keep getting into bigger holes to try to get out of the smaller one that they are in...
This is not a bailout, they are simply bailing more dirty debt onto the hole that they created for the consumer in a new and polished program of deceit to the consumer.
(c)Copyright 2008 Doug Boggs
US Treasury Secretary Henry Paulson stated today that the bailout is working. I'm not sure what planet that he is on, but on this one nothing has changed except that the same banks that he has been partnered with during his career, and those that he has done business with in his career have received huge sums of money. Is any of that money "trickling" down to main street? NO! The banks are still in freeze mode with their funds. I would like to know from any readers, if you know of anyone who has received a new loan or refinance from this bailout...I'm waiting...I thought so. The banks have not loosened their funds a bit.
Bush and Paulson had stated previously to Congress and Senate that it would use the money to buy up bad debt. Now that they have the funds they have abandoned those plans and switched gears to simply continue to buy shares in banks to boost their funding. In other words, GIVE a failed institution money for doing a shit job. They gave out loans that they knew they would NOT be held accountable for due to the fact that they were packaged in such creative ways that it would take years to tear apart. Paulson is the same person who was on game that masterminded this kind of behavior in the first place through his previous positions. There were no measures in this bailout to these institutions that held them accountable as to how they would redistribute these funds. So, are they spending their money in the US...? Perhaps they are going to redistribute it into China as the dollar has done quite well there in the past few weeks with their economy going down the toilet...! Or perhaps they are filling their offshore accounts before they leave office...
This is exactly the socialistic "spreading of the wealth" that the Repugnicants touted throughout the campaign that Obama would be doing. Only it is a socialist program for the rich, how typical. Remember, when I said to mark my words that they will piss away the funds and none will be left when Obama gets into office...
How about helping out the now (and always) struggling car companies, like the deal that Lee Iacocca did in the 80's so that the thousands of people in Michigan's and other areas around the United States auto maker manufacturing companies can keep their jobs. Of course, Alabama Republican Senator Jeff Sessions adds, "Once we cross the divide from financial institutions to individual corporations, truly, where would you draw the line?" ...uh, let's see, aren't these financial institutions individual corporations? Or are they handing money out to the entire industry? This is unbelievable!
Why not give the car companies some assistance to help all of those people keep their jobs, by making the car companies build more fuel efficient and ecologically responsible cars for these funds. Have stop gap measures to make sure these things take place and hold them accountable. Oh, wait, this administration has no idea how to do that! Accountability? uuhh, isn't that the accounting dept.s' problem...Let's call the CFO and see if they know what that means, you know those guys at Arthur Anderson, we know them....Oh, yeah, Arthur, I loved that movie...
Instead of giving the banks hundreds of billions of dollars so that they can spend it where ever they choose, why not refinance the entire housing industry. Redefine ALL loans.
Here is an idea...Every loan could be reset at a new rate, for example let's say 3 or 4%. The loans would be through the government program of a seven year fixed. Seven years is enough to let people and the economy get things back together again. At that point, the borrower will reset to their previous loan and rate. This will make people rethink their purchase decisions and living decisions for the future with a deadline. Some will be able to be assisted with this, and some won't. For those that won't probably should not be in their situation to begin with. This will allow ample time for people to get out if it won't work for them. This would also allow ANY personal residence home owner the availability to get relief from the program and help put people into new homes again or keep their existing homes. This would assist the hard hit construction industry and construction supply industry immediately to help money flow. This would also help with the lending industry and getting some of those people back to work with refinances and home purchases again. This would free up people's lives and minds and move the economy forward. The government would be able to take an equity stake of the difference in each loan if the people were to sell within their loan timeline of seven years.
I know this is a thumbnail sketch, but it would make the economy move again immediately. What is going on now is Reaganomics all over again. That was a huge success for the rich but failed for the rest of the country.
Will history ever teach our government anything?! Oh, yes, it will teach them how much the lemmings will allow to be screwed and for how long, while the rich elitists rake it in...again...
By getting money into the people's hands, and not the corporations, will allow this economy to move immediately. Now, is the time, with prices of housing at near lows, and stocks at decade low marks for people to have the opportunity to take advantage of that. This will put money back into the corporations, as well, as the people. Simply giving banks the funds to redistribute this wealth, of which is the people's money to begin with, holds the commoner down. This is OUR money that is being pissed away to the rich! Doesn't anyone see this?!
Now, they are talking about giving the banks more money on the credit card lending, student loan, and car loan industry. This is another way of saying, "We will give the banks more money to lend out to the people so that they can get further into debt", vs helping the people get OUT of the deep debt that these institutions convinced them to get into in the first place! It is this debt that is creating the struggling economy as people keep getting into bigger holes to try to get out of the smaller one that they are in...
This is not a bailout, they are simply bailing more dirty debt onto the hole that they created for the consumer in a new and polished program of deceit to the consumer.
(c)Copyright 2008 Doug Boggs
Tuesday, October 14, 2008
Margin calls...
Top down Reaganomics at its best when the markets are free from government intervention...?
Part V
(From Equity Private)
And then we get back to reality...
*
Part V
(From Equity Private)
And then we get back to reality...
*
Friday, October 3, 2008
Green is the color...
of money.
I thought I was going to have an interview with San Francisco Mayor Gavin Newsom and Economist Magazine discussing Green city building and infrastructure, but something happened with technology and it isn't happening.
I wanted to discuss the bailout. They are back to labeling it as such, again. I guess I don't quite understand things, as I know that the bad loans and foreclosing properties don't cost near $700B I am unclear as to why that is the number that the taxpayer is liable for?
It seems that a more palatable balance to the bad loans is around $40B or so. This would cure the real estate mayhem that has crushed our economy. What is the other $650B for and what ever happened to the first $200B that has been granted out over the past few months. None of this smells right.
It is a pressure play to acquire the money, lobbyists have added their pork to the sides of this with the rewrites and Congress is now pressured to make something happen since the spines of the Senate have played this game. Since Bear Sterns has been bailed out and their private offshore havens are guarded from public view I guess it is time that the Senate gets their share?...
This just stinks.
Since the taxpayer is screwed out of these funds either way, perhaps we should, at least to make a decision one way or the other, take some time with this to allow more thought and insight to the situation. By doing this before Nov. 4, simply gives Bush more time to piss away the funds.
Obama thinks there will be money left when he gets into office to help people and work with...shit, there is no money to begin with as this is coming from the future earnings of Americans. This is much like their most recent Exit Tax I wrote about back on June 6, 2008. The government is now allowed to tax expatriates their "future" income.
This style of bookkeeping does not work. It is self defeating and will fail! Guaranteed!! The numbers cannot add up!
I thought I was going to have an interview with San Francisco Mayor Gavin Newsom and Economist Magazine discussing Green city building and infrastructure, but something happened with technology and it isn't happening.
I wanted to discuss the bailout. They are back to labeling it as such, again. I guess I don't quite understand things, as I know that the bad loans and foreclosing properties don't cost near $700B I am unclear as to why that is the number that the taxpayer is liable for?
It seems that a more palatable balance to the bad loans is around $40B or so. This would cure the real estate mayhem that has crushed our economy. What is the other $650B for and what ever happened to the first $200B that has been granted out over the past few months. None of this smells right.
It is a pressure play to acquire the money, lobbyists have added their pork to the sides of this with the rewrites and Congress is now pressured to make something happen since the spines of the Senate have played this game. Since Bear Sterns has been bailed out and their private offshore havens are guarded from public view I guess it is time that the Senate gets their share?...
This just stinks.
Since the taxpayer is screwed out of these funds either way, perhaps we should, at least to make a decision one way or the other, take some time with this to allow more thought and insight to the situation. By doing this before Nov. 4, simply gives Bush more time to piss away the funds.
Obama thinks there will be money left when he gets into office to help people and work with...shit, there is no money to begin with as this is coming from the future earnings of Americans. This is much like their most recent Exit Tax I wrote about back on June 6, 2008. The government is now allowed to tax expatriates their "future" income.
This style of bookkeeping does not work. It is self defeating and will fail! Guaranteed!! The numbers cannot add up!
Tuesday, September 30, 2008
Take back the voice of the people!
What people might be waking up to is the fact that no matter what the taxpayer is going to be hurt in all of this. So, why bailout the companies that created the mess with money that can be used to better the society that our administration forgot about for the past eight years. If we don't spend the $700B and stop spending on the war that would keep $820B into our country's economy over the next year. I think a lot could be done to make this country get back on track again with some of that.
I'm sure, if there is going to be any money flowing anywhere, there could be a plan that involves the taxpayer and not the corporations. The taxpayers are those that the corporations screwed over, or those that due to the recklessness of the corporations have since lost their homes or jobs, or those that have be schemed out of their homes due to fraudulent lending practices. The corps will write down their losses as a business expense and have to deal with their own recovery. That is what running a business is about. Some will close their doors. Many already have.
But, the taxpayer has already forked out about $200B for earlier issues this year, despite what is being spent on the war. We finally found the balls to say, "Enough is enough!"
It will be difficult. It will take some time. But, we will not be getting screwed by Bush again. He can take the money that he has embezzled thus far to his offshore havens and leave. It's time for an Obamanation!
This refusal to fork over the coin will be better for the country in the long run. The people have found that their voices were heard by their congresspersons. The calls and letters have created change. The people did not see Washington, the Bush team, and the corporations get away scott free again.
Let's look at some U.S. government interventions and bailouts in the past century:
1932 — The Hoover administration creates the Reconstruction Finance Corp. to facilitate economic activity by lending money. (the President with the worst economic policies prior to Bush - Republican)
1933 — The Roosevelt administration creates the Home Owners' Loan Corp. to buy $3 billion in bad mortgages from banks and refinance them to homeowners to stem a rise in foreclosures. The government makes a small profit. (Roosevelt makes this a profitable venture! - Democrat)
1971 — Congress saves Lockheed Aircraft Corp., the nation's biggest defense contractor, from bankruptcy by guaranteeing the repayment of $250 million in bank loans. (Of course this company must be saved due to its the nations biggest defense contractor...Nixon took gold off as the standard and marked the dollar as the dominant global currency - Republican)
1979 — Congress and the Carter administration arrange for $1.2 billion in subsidized loans to bail out automaker Chrysler Corp., then the nation's 10th-largest company. There was no significant cost to the government in the end since the loans were repaid. (Good play Carter! - Democrat)
1984 — Congress effectively takes over the ailing Continental Illinois National Bank and Trust, which failed with $40 billion of assets. The Federal Deposit Insurance Corp. injects $4.5 billion to buy bad loans.
(Reagan fell asleep at the meeting...Republican)
1989 — Congress establishes the Resolution Trust Corp. to take over bad assets and make depositors whole. Resolving the S&L crisis takes six years and $125 billion in taxpayer money — roughly equal to $200 billion in today's dollars. (Brother Bush family fuck up - George Bush I - Republican)
1998 — The government brokers a $3.6 billion private bailout in the collapse of the Long-Term Capital Management hedge fund. Done through the Federal Reserve Bank of New York. (Republicans created the Monica Lewinski scandal to take eyes away from this collapse. Clinton handled this without government money! - Democrat)
2001 — Congress authorizes $5 billion in cash after the Sept. 11 terror attacks to help shore up the airline industry and follows up with $10 billion in loan guarantees. This has failed as most of those that received any funds are either now defunct or will be shortly. (the first of numerous bailouts by Bush. Much of the following history will find its paper trail leading to large quantities of embezzled funds through numerous agencies and administration persons. George Bush II, Republican)
2008:
March 16 — The Federal Reserve agrees to guarantee $29 billion of Bear Stearns' assets in connection with the government-sponsored sale of the investment bank to JPMorgan Chase & Co. Chase was not held liable for any future debts in association to this takeover. (George Bush II, Republican)
July 11 — Federal regulators seize IndyMac Bank's assets after the mortgage lender succumbs to the pressures of tighter credit, falling home prices and rising foreclosures. The Federal Deposit Insurance Corp. says it will cost about $8.9 billion out of its $53 billion insurance fund. ( Costing nearly 20% of the entire FDIC balance sheet - George Bush II, Republican)
Sept. 7 — The Treasury Department seizes teetering mortgage finance institutions Fannie Mae and Freddie Mac, temporarily putting them in a government conservatorship with plans to inject up to $100 billion into each. (creating the largest socialist run real estate organization for the United States Government. Feddie Mae! George Bush II, Republican)
Sept. 16 — The government announces an $85 billion emergency loan to rescue American International Group Inc., a major insurance company, in return for a 79.9 percent stake. (creating the largest Socialist run insurance firm for the United States Government - George Bush II, Republican)
Sept. 19 — The Bush administration proposes a plan to let the government buy $700 billion of bad mortgages and other forms of toxic debt that have been weighing down U.S. financial companies. Government officials and lawmakers were still scrambling to put a deal together a week later. (Geroge Bush II, Republican)
Sept. 25 — The Federal Desposit Insurance Corp. seizes Washington Mutual Inc. — the largest bank to fail by far in the U.S. — and sells the deposits and banking assets to JPMorgan Chase & Co. for $1.9 billion. (George Bush II, Republican)
Sept. 29 — The Congress walks away from bailout due to pressure from the voice of the people. The fraudulent lending practices, the manipulation of credit and loans leaves a bad taste to the people and they speak out. The corporations will not be bailed out by taxpayer dollars! The people take back their country! (Democrat decision due to non bipartisanship)
I'm sure, if there is going to be any money flowing anywhere, there could be a plan that involves the taxpayer and not the corporations. The taxpayers are those that the corporations screwed over, or those that due to the recklessness of the corporations have since lost their homes or jobs, or those that have be schemed out of their homes due to fraudulent lending practices. The corps will write down their losses as a business expense and have to deal with their own recovery. That is what running a business is about. Some will close their doors. Many already have.
But, the taxpayer has already forked out about $200B for earlier issues this year, despite what is being spent on the war. We finally found the balls to say, "Enough is enough!"
It will be difficult. It will take some time. But, we will not be getting screwed by Bush again. He can take the money that he has embezzled thus far to his offshore havens and leave. It's time for an Obamanation!
This refusal to fork over the coin will be better for the country in the long run. The people have found that their voices were heard by their congresspersons. The calls and letters have created change. The people did not see Washington, the Bush team, and the corporations get away scott free again.
Let's look at some U.S. government interventions and bailouts in the past century:
1932 — The Hoover administration creates the Reconstruction Finance Corp. to facilitate economic activity by lending money. (the President with the worst economic policies prior to Bush - Republican)
1933 — The Roosevelt administration creates the Home Owners' Loan Corp. to buy $3 billion in bad mortgages from banks and refinance them to homeowners to stem a rise in foreclosures. The government makes a small profit. (Roosevelt makes this a profitable venture! - Democrat)
1971 — Congress saves Lockheed Aircraft Corp., the nation's biggest defense contractor, from bankruptcy by guaranteeing the repayment of $250 million in bank loans. (Of course this company must be saved due to its the nations biggest defense contractor...Nixon took gold off as the standard and marked the dollar as the dominant global currency - Republican)
1979 — Congress and the Carter administration arrange for $1.2 billion in subsidized loans to bail out automaker Chrysler Corp., then the nation's 10th-largest company. There was no significant cost to the government in the end since the loans were repaid. (Good play Carter! - Democrat)
1984 — Congress effectively takes over the ailing Continental Illinois National Bank and Trust, which failed with $40 billion of assets. The Federal Deposit Insurance Corp. injects $4.5 billion to buy bad loans.
(Reagan fell asleep at the meeting...Republican)
1989 — Congress establishes the Resolution Trust Corp. to take over bad assets and make depositors whole. Resolving the S&L crisis takes six years and $125 billion in taxpayer money — roughly equal to $200 billion in today's dollars. (Brother Bush family fuck up - George Bush I - Republican)
1998 — The government brokers a $3.6 billion private bailout in the collapse of the Long-Term Capital Management hedge fund. Done through the Federal Reserve Bank of New York. (Republicans created the Monica Lewinski scandal to take eyes away from this collapse. Clinton handled this without government money! - Democrat)
2001 — Congress authorizes $5 billion in cash after the Sept. 11 terror attacks to help shore up the airline industry and follows up with $10 billion in loan guarantees. This has failed as most of those that received any funds are either now defunct or will be shortly. (the first of numerous bailouts by Bush. Much of the following history will find its paper trail leading to large quantities of embezzled funds through numerous agencies and administration persons. George Bush II, Republican)
2008:
March 16 — The Federal Reserve agrees to guarantee $29 billion of Bear Stearns' assets in connection with the government-sponsored sale of the investment bank to JPMorgan Chase & Co. Chase was not held liable for any future debts in association to this takeover. (George Bush II, Republican)
July 11 — Federal regulators seize IndyMac Bank's assets after the mortgage lender succumbs to the pressures of tighter credit, falling home prices and rising foreclosures. The Federal Deposit Insurance Corp. says it will cost about $8.9 billion out of its $53 billion insurance fund. ( Costing nearly 20% of the entire FDIC balance sheet - George Bush II, Republican)
Sept. 7 — The Treasury Department seizes teetering mortgage finance institutions Fannie Mae and Freddie Mac, temporarily putting them in a government conservatorship with plans to inject up to $100 billion into each. (creating the largest socialist run real estate organization for the United States Government. Feddie Mae! George Bush II, Republican)
Sept. 16 — The government announces an $85 billion emergency loan to rescue American International Group Inc., a major insurance company, in return for a 79.9 percent stake. (creating the largest Socialist run insurance firm for the United States Government - George Bush II, Republican)
Sept. 19 — The Bush administration proposes a plan to let the government buy $700 billion of bad mortgages and other forms of toxic debt that have been weighing down U.S. financial companies. Government officials and lawmakers were still scrambling to put a deal together a week later. (Geroge Bush II, Republican)
Sept. 25 — The Federal Desposit Insurance Corp. seizes Washington Mutual Inc. — the largest bank to fail by far in the U.S. — and sells the deposits and banking assets to JPMorgan Chase & Co. for $1.9 billion. (George Bush II, Republican)
Sept. 29 — The Congress walks away from bailout due to pressure from the voice of the people. The fraudulent lending practices, the manipulation of credit and loans leaves a bad taste to the people and they speak out. The corporations will not be bailed out by taxpayer dollars! The people take back their country! (Democrat decision due to non bipartisanship)
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