Declining real estate values is the cause: the cause was not real estate valuation, but the loan creation process that used low interest rates put in place by Alan Greenspan and the Clinton Administration mucking around with the CRA (ACORN action exacerbated this intervention).
When the interest rates were manipulated after 911 to hang around 1% for almost 18 months, it was the unsupervised (by states the biggest culprit) loan underwriting process (CRA, Fannie Mae, Freddie Mac, mortgage backed securitization, roll-up to CDO, and writing CDS to raise acceptance of these investment vehicles to the entire world). Real estate values went up as the interest rates went down: direct cause and effect.
My previous posts have discussed these financial technical concepts.
Saturday, October 11, 2008
Lack of Liquidity & Confidence
I deal with these 2 issues from Bush 43's speech since they are two sides of the same coin.
Lack of Liquidity: the system is flush with money and liquidity to the tune of about $400 Billion is direct liquidity injections from the US Treasury alone not counting what other countries are injecting. It is not a liquidity problem but a confidence in the government! Let me say it again...
This is a credit problem caused by institutions now not knowing what the rules are with the huge amount of government intervention. These rules changes cause investors to stop and go to cash since they investments may be end up becoming into competition with the nationalization process under way by the US Government.
Lack of confidence in financial markets: see the above discussion about lack of liquidity. This lack of confidence is in the US Government as it turned almost 90 degrees from free-markets to socialism. This is keeping big players out of the US markets and those that are in are leaving in droves. Why invest in US financial markets when the US Government is nationalizing these assets.
There is lack of confidence in the US Government, not liquidity.
Lack of Liquidity: the system is flush with money and liquidity to the tune of about $400 Billion is direct liquidity injections from the US Treasury alone not counting what other countries are injecting. It is not a liquidity problem but a confidence in the government! Let me say it again...
This is a credit problem caused by institutions now not knowing what the rules are with the huge amount of government intervention. These rules changes cause investors to stop and go to cash since they investments may be end up becoming into competition with the nationalization process under way by the US Government.
Lack of confidence in financial markets: see the above discussion about lack of liquidity. This lack of confidence is in the US Government as it turned almost 90 degrees from free-markets to socialism. This is keeping big players out of the US markets and those that are in are leaving in droves. Why invest in US financial markets when the US Government is nationalizing these assets.
There is lack of confidence in the US Government, not liquidity.
Friday, October 10, 2008
Future topics coming this weekend
Sorry, couldn't blog much today due to the wild market swings and having to take care of some personal issues; however, I will be blogging quite a bit over the weekend. Here are some of the topics which I will turn my posts to over the next few days:
1. Market capitulation and the "sucker's rally"
2. Socialism: taking away my right to fail
3. Republicans and socialism
4. Next week's likely scenarios
5. An open letter to my children
Lot's of stuff to read and make you laugh, cry and throw things. Read often, and tell others. You want them to have the same fun as you, eh?
Is fun still allowed in a socialist country? Will have to ponder that one.
1. Market capitulation and the "sucker's rally"
2. Socialism: taking away my right to fail
3. Republicans and socialism
4. Next week's likely scenarios
5. An open letter to my children
Lot's of stuff to read and make you laugh, cry and throw things. Read often, and tell others. You want them to have the same fun as you, eh?
Is fun still allowed in a socialist country? Will have to ponder that one.
Markets understanding what they asked for!
Market runs another 400-500 pts to the downside as they are showing their little tantrums that now they don't like the way the government is nationalizing both the risk and reward side of the free markets.
With Hank Paulson's announcement that the Treasury would not be demanding an equity stake in financial institutions that they bail out, the market is now seeing the the old adage:
"Be careful what you wish for..."
In this case, it is more like, "Be careful what you lobby for..."
With the socialization of risk, I told you in "Fed Buying up Banks" that once the risk was nationalized, the government, in order protect the poor taxpayer, would want to start taking up some of the profit or reward side. Well, the markets are just now beginning to understand what Paulson and his crew (Dept of Treasury or Goldman Sachs DC office, as I like to call it) are about to do.
It will take many years if at all to untangle the government's intervention into the financial markets, and with the BHO presidency only 4 months away (Jan 20, 2009) and with a Democratic Congress, that entanglement may never go away. The markets are just beginning to understand what they cried "wolf" for and what's it is going to get them.
The Republicans started this under the guise of saving the financial markets, but the Democrats are going to keep it to ensure "that this never happens again." That, my friend, is how socialism quietly walks through the door. Like a "Nas Veratue" or for those not versed in horror films: the living dead, you must ask the Vampire to come into your house since he/she is not allowed to enter unwelcomed. They have weird union rules, I guess.
Anyway, socialism will come to the USA (now the USSA) now by armed revolution, but by the smile and helping hand of the government there to help the many people whose 401K, IRAs, and jobs are on the line. The government gives with one hand and takes with the other.
With Hank Paulson's announcement that the Treasury would not be demanding an equity stake in financial institutions that they bail out, the market is now seeing the the old adage:
"Be careful what you wish for..."
In this case, it is more like, "Be careful what you lobby for..."
With the socialization of risk, I told you in "Fed Buying up Banks" that once the risk was nationalized, the government, in order protect the poor taxpayer, would want to start taking up some of the profit or reward side. Well, the markets are just now beginning to understand what Paulson and his crew (Dept of Treasury or Goldman Sachs DC office, as I like to call it) are about to do.
It will take many years if at all to untangle the government's intervention into the financial markets, and with the BHO presidency only 4 months away (Jan 20, 2009) and with a Democratic Congress, that entanglement may never go away. The markets are just beginning to understand what they cried "wolf" for and what's it is going to get them.
The Republicans started this under the guise of saving the financial markets, but the Democrats are going to keep it to ensure "that this never happens again." That, my friend, is how socialism quietly walks through the door. Like a "Nas Veratue" or for those not versed in horror films: the living dead, you must ask the Vampire to come into your house since he/she is not allowed to enter unwelcomed. They have weird union rules, I guess.
Anyway, socialism will come to the USA (now the USSA) now by armed revolution, but by the smile and helping hand of the government there to help the many people whose 401K, IRAs, and jobs are on the line. The government gives with one hand and takes with the other.
Thursday, October 9, 2008
Don't get angry, get educated!
I have had several readers get upset with my USA assessment with the sinking ship analogy. They say that we have gone through things like this before, we have weathered war, cultural upheavals, and terror attacks. However, they are forgetting one question that they don't want to ask:
How is this time different from those before they used as examples of times the USA recovered?
Here is a partial list of the differences between then and now:
1. The Internet allows anyone, crack pot or level-headed, to spew their acrimony thus keeping people divided and talking about things that in the past weren't even discussed.
2. The complete break-down of the normal family infrastructure in favor of the "nuclear family" format this leads to children lacking discipline, character, and work-ethic
3. The huge explosion of the lottery-mentality where by people want to make it not by hard work, but by hitting it big on the lottery, legal lottery (malpractice and class-action suits), credit card lottery, stock market lottery, real estate lottery, etc.
4. The rising ratio of lawyers to citizens thereby guaranteeing a fresh crop of legal lottery practitioners.
5. The lowering standards of public education due to the involvement of the major teacher unions (UUP, AFT, and the wonderful NEA) that force lower and lower standards from both teachers and students. No wonder the USA student is getting whipped in the market place: Japan has 6 day school weeks, and Indian schools require math and science from all students regardless of gender, and China is, well you get the idea.
6. The capture of the mainstream media outlets by very liberal, socialistic mindsets thereby forcing most of the discussion to be skewed in favor of the above topics.
7. The movement of the 2 political parties towards the center-left leaving true conservatives and far-left out in the cold thereby forcing them to use the Internet to spew their ideas reaching a far larger audience than what would be normal.
8. The advancement of being PCness (political correctness) that prevents normal folks from calling a "spade a spade."
9. The control of the US government by big money via PACs and lobbyists.
10. Concluding, dwindling respect for personal responsibility and accountability. This in and of itself could sink this great country all by itself.
Feel better now? ;-)
How is this time different from those before they used as examples of times the USA recovered?
Here is a partial list of the differences between then and now:
1. The Internet allows anyone, crack pot or level-headed, to spew their acrimony thus keeping people divided and talking about things that in the past weren't even discussed.
2. The complete break-down of the normal family infrastructure in favor of the "nuclear family" format this leads to children lacking discipline, character, and work-ethic
3. The huge explosion of the lottery-mentality where by people want to make it not by hard work, but by hitting it big on the lottery, legal lottery (malpractice and class-action suits), credit card lottery, stock market lottery, real estate lottery, etc.
4. The rising ratio of lawyers to citizens thereby guaranteeing a fresh crop of legal lottery practitioners.
5. The lowering standards of public education due to the involvement of the major teacher unions (UUP, AFT, and the wonderful NEA) that force lower and lower standards from both teachers and students. No wonder the USA student is getting whipped in the market place: Japan has 6 day school weeks, and Indian schools require math and science from all students regardless of gender, and China is, well you get the idea.
6. The capture of the mainstream media outlets by very liberal, socialistic mindsets thereby forcing most of the discussion to be skewed in favor of the above topics.
7. The movement of the 2 political parties towards the center-left leaving true conservatives and far-left out in the cold thereby forcing them to use the Internet to spew their ideas reaching a far larger audience than what would be normal.
8. The advancement of being PCness (political correctness) that prevents normal folks from calling a "spade a spade."
9. The control of the US government by big money via PACs and lobbyists.
10. Concluding, dwindling respect for personal responsibility and accountability. This in and of itself could sink this great country all by itself.
Feel better now? ;-)
Markets crash another 700pts!
As indicated back in October 03, "Too Bad, Congress! Markets TANKS!" the markets are going to move much lower and since October 3rd, the markets have shed almost 2200 points in the DOW in less than a week! That means that shareholders have lost over 2.2 TRILLION ($2,200,000,000,000 USD) in value. All this since the US Government began its big time intervention.
Note that Congress passed the EERA 2008 on Friday, Oct 3, 2008, and then left town. I hope they are getting more than ear full from their constituents over this debacle.
Also, this pretty much means the BHO and a Democratic Congress will be the result on Nov 4th. The public has been duped since it was the Democrats that blocked most of the reforms on Fannie and Freddie (GSE) back in 2001-2004, and we are going to send these people back to Washington DC with a mandate.
What a crock!
USA you will get what you deserve from those actions on Nov. 4th. I am glad that I have passports from several countries where I can move leaving the liberals and democrats to try and fund their programs with a socialized economy and no innovations since all those with brains are leaving this sinking ship.
Bye, bye, USA!
Note that Congress passed the EERA 2008 on Friday, Oct 3, 2008, and then left town. I hope they are getting more than ear full from their constituents over this debacle.
Also, this pretty much means the BHO and a Democratic Congress will be the result on Nov 4th. The public has been duped since it was the Democrats that blocked most of the reforms on Fannie and Freddie (GSE) back in 2001-2004, and we are going to send these people back to Washington DC with a mandate.
What a crock!
USA you will get what you deserve from those actions on Nov. 4th. I am glad that I have passports from several countries where I can move leaving the liberals and democrats to try and fund their programs with a socialized economy and no innovations since all those with brains are leaving this sinking ship.
Bye, bye, USA!
Private Capital is the Right Way!
Again, the LOUC has come to bear on the current financial crisis in the form of the BHCA of 1956 (Bank Holding Company Act) which says that if a private equity fund buys a bank, it must divest itself of all non-financial assets and never purchase any more while it is holding the bank assets.
Well, this sounds all nice and good for the problem that it was suppose to cure back in 1956, but it has kept private equity money from helping out in this credit crisis since no one wants to become just a bank under the thumb of the US Government. So, while there is plenty of private money that would love to come in and buy up this banking assets to keep them from becoming a problem on the government's balance sheet, the LOUC by the US Government's own actions prevents that from happening.
This means that only the Government can help out and this is exactly where it wants to be especially with a socialistic mindset coming to Washington in the fall. This will give them the perfect opportunity to say, and I have already heard it from Pelosi, Frank, and Reid,
"well, the free-markets aren't doing a good job of monitoring or regulating themselves, the government (read that US) has to do the job..."
These people are sneaky like a fox, eh? Make the regulations that cause the problems, and take over the private property (dumping almost $500 Billion in stock equity) if that isn't government socialization of the financial markets, I don't know what is!
By taking over companies like Fannie, Freddie, AIG, etc, these companies shareholders lost everything. I know that it is the risk involved with stock ownership, but when the government does the actions that cause the equities to go to 0, and then step in and take them over, its a rigged system.
In a socialized political system, the government controls the means of production (read that credit markets) in the USA and "to protect the taxpayer..." the US Government is moving head long towards a socialist format.
Well, this sounds all nice and good for the problem that it was suppose to cure back in 1956, but it has kept private equity money from helping out in this credit crisis since no one wants to become just a bank under the thumb of the US Government. So, while there is plenty of private money that would love to come in and buy up this banking assets to keep them from becoming a problem on the government's balance sheet, the LOUC by the US Government's own actions prevents that from happening.
This means that only the Government can help out and this is exactly where it wants to be especially with a socialistic mindset coming to Washington in the fall. This will give them the perfect opportunity to say, and I have already heard it from Pelosi, Frank, and Reid,
"well, the free-markets aren't doing a good job of monitoring or regulating themselves, the government (read that US) has to do the job..."
These people are sneaky like a fox, eh? Make the regulations that cause the problems, and take over the private property (dumping almost $500 Billion in stock equity) if that isn't government socialization of the financial markets, I don't know what is!
By taking over companies like Fannie, Freddie, AIG, etc, these companies shareholders lost everything. I know that it is the risk involved with stock ownership, but when the government does the actions that cause the equities to go to 0, and then step in and take them over, its a rigged system.
In a socialized political system, the government controls the means of production (read that credit markets) in the USA and "to protect the taxpayer..." the US Government is moving head long towards a socialist format.
Markets continues to sell off!
Regardless of what the Fed, FDIC, Treasury, the White House or the Congress do, stocks continue to shed more and more of their value. Banking stocks are taking it in the shorts, the DOW is down over 170pts again and is approaching the 9000 level. Remember, just a a year ago, the DOW was approaching the 14000 level!
So from 14000 to 9000 in 12 months, the DOW has lost 5000 points or 35% in one year. That is very typical of a bear market so its not that we haven't seen this before, its just that it happens so quickly. Remember the reason for the faster slides in DOW than the slower rises: that's right - "fear trumps greed."
This should show you that the markets need to find their own levels of "resolution" before they will turn around. The most important thing to understand is that unless "THEY CHANGE THE RULES" which is a real possibility this time, the markets, like a sailboat with a center weight, will right themselves if left on their own.
However, the year more than any other, the US Government due to the 2008 election has decided to intervene most heavily into the US free-markets. The big question I will deal with over the next few days will be:
Will we ever get back to a true, free-market financial infrastructure?
So from 14000 to 9000 in 12 months, the DOW has lost 5000 points or 35% in one year. That is very typical of a bear market so its not that we haven't seen this before, its just that it happens so quickly. Remember the reason for the faster slides in DOW than the slower rises: that's right - "fear trumps greed."
This should show you that the markets need to find their own levels of "resolution" before they will turn around. The most important thing to understand is that unless "THEY CHANGE THE RULES" which is a real possibility this time, the markets, like a sailboat with a center weight, will right themselves if left on their own.
However, the year more than any other, the US Government due to the 2008 election has decided to intervene most heavily into the US free-markets. The big question I will deal with over the next few days will be:
Will we ever get back to a true, free-market financial infrastructure?
The new USA after Jan 20, 2008
You may be laughing now, but when BHO is elected in a mandate election taking over 300 electoral votes and 38-40 states, he and his Congress will begin the reformatting of the USA. Here's some of events you can look forward to seeing in an BHO administration:
* ACORN will be the official voter registration organization getting millions of your tax dollars through back door appropriation bills and riders.
* The CRA will be expanded and given more sweeping powers to put those who can't afford places they don't deserve, but will be paid for by tax dollars.
* States will ask for and receive with strings more and more Federal dollars thereby increasing Washington's control over local politics.
* Banks will simply give up and turn their assets over the US Government since they will not be able lend without so much intervention from the Feds.
* Small businesses will dry up as their owners figure out they can't make a go of it as the taxes and regulations strangle their capital and innovative capabilities. Owners will flee the USA in droves.
* Large, government sponsored entities like the now big 3 banks (Citi Group, BOA, and Chase) will squeeze out the rest of their competition since they will receive favorable treatment for doing the government's business.
* Private ownership of real property will be frowned on since its the landlords that keep the underclass in poverty (socialistic views), and so the government will socialize housing for the public good.
* Gay marriage will be federally recognized and taught in all schools; homosexual practices will be openly promulgated and charges of intolerance will be leveled against those that don't support such life styles.
* More and more liberal, activist judges will be appointed and quickly approved by BHO and the now filibuster-proof US Senate.
* The "Keoto Threaty" or something even more like will be quickly passed within the first 100 days of the new Congress and signed into law in a very big PR event at the White House.
* William Ayers will be given some job at the Dept. of Education, quietly at first and than later more prominently.
I could go on and on, but these should help you realize how the USA is going to change into the USSA before your very eyes, and most people are just going to quietly accept it. BAAAAAAAAA, BAAAAAAAAAA ;-)
* ACORN will be the official voter registration organization getting millions of your tax dollars through back door appropriation bills and riders.
* The CRA will be expanded and given more sweeping powers to put those who can't afford places they don't deserve, but will be paid for by tax dollars.
* States will ask for and receive with strings more and more Federal dollars thereby increasing Washington's control over local politics.
* Banks will simply give up and turn their assets over the US Government since they will not be able lend without so much intervention from the Feds.
* Small businesses will dry up as their owners figure out they can't make a go of it as the taxes and regulations strangle their capital and innovative capabilities. Owners will flee the USA in droves.
* Large, government sponsored entities like the now big 3 banks (Citi Group, BOA, and Chase) will squeeze out the rest of their competition since they will receive favorable treatment for doing the government's business.
* Private ownership of real property will be frowned on since its the landlords that keep the underclass in poverty (socialistic views), and so the government will socialize housing for the public good.
* Gay marriage will be federally recognized and taught in all schools; homosexual practices will be openly promulgated and charges of intolerance will be leveled against those that don't support such life styles.
* More and more liberal, activist judges will be appointed and quickly approved by BHO and the now filibuster-proof US Senate.
* The "Keoto Threaty" or something even more like will be quickly passed within the first 100 days of the new Congress and signed into law in a very big PR event at the White House.
* William Ayers will be given some job at the Dept. of Education, quietly at first and than later more prominently.
I could go on and on, but these should help you realize how the USA is going to change into the USSA before your very eyes, and most people are just going to quietly accept it. BAAAAAAAAA, BAAAAAAAAAA ;-)
The Fed is Buying up Banks
What did I tell you? The Federal Reserve is now buying up banks that their regulators are saying are not doing well. What a SCAM!
The US Government regulates the banks
The US Government decides when a bank is OK
The US Government via the Treasury buys up these banks
The US Government is now taking private property
The US Government is socialist (See definition of socialism (http://en.wikipedia.org/wiki/Socialism) on Wikipedia)
Definition (courtesy of Wikipedia):
Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society.
I put the definition here, but DYH and read the entire article on socialism by following the above link. It is necessary for your own safety and education since you will soon be living in a socialist country after Jan 20, 2008 when BHO and his Democratic, hell socialistic, Congress take complete control of the US Government.
The US Government regulates the banks
The US Government decides when a bank is OK
The US Government via the Treasury buys up these banks
The US Government is now taking private property
The US Government is socialist (See definition of socialism (http://en.wikipedia.org/wiki/Socialism) on Wikipedia)
Definition (courtesy of Wikipedia):
Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society.
I put the definition here, but DYH and read the entire article on socialism by following the above link. It is necessary for your own safety and education since you will soon be living in a socialist country after Jan 20, 2008 when BHO and his Democratic, hell socialistic, Congress take complete control of the US Government.
Musing in the early AM
It's 0340 (that's oh three forty in military time, 3:40 AM for normal folks, and the little hand is on the 3 and the big hand is on 8 for those taught in the NY public school system), and I am sitting here listening to the news about the upcoming election.
Interesting to me are 2 things:
1. The liberals/democrats are supporting behavior from their chosen ones that if had come from the conservative/republicans would have been blasted from one media outlet to another (Examples to follow)
2. How a candidate, McCain, can implode so close to the election by doing things against his entire career and supposed principles.
Examples of Item #1:
A. The investigation of ACORN in over 11 states with the Nevada State ACORN offices having recently been raided on huge assertions of voter fraud, and no one in the media is covering except Fox. Be careful what you support, people. It always comes back to bite you.
B. The complete pass that BHO receives for previous behavior that from a conservative/republican would have gotten and has gotten them fired or forced to retire. The list of examples is huge:
Pastor Wright
Bill Aries
Support for writings and views of Saul Alinsky
Association with anti-Jewish groups in Chicago neighborhood (Palestinian)
ACORN legal support
ACORN training and organization support
ACORN financial support from CURRENT campaign
Explanation of how he got support for Harvard Law School acceptance
Non-release of Harvard Law School papers and writings
OK, enough... the list could be many times longer, but you get my point. Now what does this mean, if anything? It usually means that BHO is the darling of the media with the exception of the Fox Network which by the way is growing faster than all the other networks almost combined. Also, it means that we no longer have an unbiased media in this country, and that's the scariest point to me. Most US citizens don't use critical thinking when listening to normal media or Fox.
Back to our regularly scheduled programming...
Interesting to me are 2 things:
1. The liberals/democrats are supporting behavior from their chosen ones that if had come from the conservative/republicans would have been blasted from one media outlet to another (Examples to follow)
2. How a candidate, McCain, can implode so close to the election by doing things against his entire career and supposed principles.
Examples of Item #1:
A. The investigation of ACORN in over 11 states with the Nevada State ACORN offices having recently been raided on huge assertions of voter fraud, and no one in the media is covering except Fox. Be careful what you support, people. It always comes back to bite you.
B. The complete pass that BHO receives for previous behavior that from a conservative/republican would have gotten and has gotten them fired or forced to retire. The list of examples is huge:
Pastor Wright
Bill Aries
Support for writings and views of Saul Alinsky
Association with anti-Jewish groups in Chicago neighborhood (Palestinian)
ACORN legal support
ACORN training and organization support
ACORN financial support from CURRENT campaign
Explanation of how he got support for Harvard Law School acceptance
Non-release of Harvard Law School papers and writings
OK, enough... the list could be many times longer, but you get my point. Now what does this mean, if anything? It usually means that BHO is the darling of the media with the exception of the Fox Network which by the way is growing faster than all the other networks almost combined. Also, it means that we no longer have an unbiased media in this country, and that's the scariest point to me. Most US citizens don't use critical thinking when listening to normal media or Fox.
Back to our regularly scheduled programming...
Wednesday, October 8, 2008
How the Dems will solve financial crises
I told you I would tell you how the Dems, if they capture both the White House and Congress in 2008, will get us out of the coming slow down that is coming to the USA and world.
They will find a conflict and escalate it into a war so that the economy will have to go into war production. HA! Don't believe me? You need to do your homework. Let me help you...
Here are the facts beginning from 1900:
World War I: began under the first Democratic President of the 20th century, President Woodrow Wilson
World War II: began under the iron fist of FDR, the great democratic President that brought you the Great Depression (See "The beginning of the Crash of 2008" for more details on FDR and the Great Depression).
Korean War: started when Truman, another democrat, decided not to negotiate, but escalate an already tense situation in the Korean Peninsula, but ended by a Republican, IKE.
Vietnam War: started and escalated by JFK and LBJ, but ended by a Republican.
The Iraq War: started by Bush 43, a democrat in republicans clothing ;-)
So you can see that the democrats have an 80% track record of starting wars to end unstable financial times. So with those odds, I would beat the BHO will find someone to attack before too long. He has already said that he would invade Pakistan if he thought he could get OBL (Osama Bin Laden), or Iran if he thought they were going to use the bomb. I am sure he will be able to find someone to attack and ramp up the US war machine to end the financial instability.
BHO may even find that the UN may take over the USA's military operations thus freeing up a ton of money for his social programs, eh? He can always find an aspirin factory or two that needs flattening as well.
They will find a conflict and escalate it into a war so that the economy will have to go into war production. HA! Don't believe me? You need to do your homework. Let me help you...
Here are the facts beginning from 1900:
World War I: began under the first Democratic President of the 20th century, President Woodrow Wilson
World War II: began under the iron fist of FDR, the great democratic President that brought you the Great Depression (See "The beginning of the Crash of 2008" for more details on FDR and the Great Depression).
Korean War: started when Truman, another democrat, decided not to negotiate, but escalate an already tense situation in the Korean Peninsula, but ended by a Republican, IKE.
Vietnam War: started and escalated by JFK and LBJ, but ended by a Republican.
The Iraq War: started by Bush 43, a democrat in republicans clothing ;-)
So you can see that the democrats have an 80% track record of starting wars to end unstable financial times. So with those odds, I would beat the BHO will find someone to attack before too long. He has already said that he would invade Pakistan if he thought he could get OBL (Osama Bin Laden), or Iran if he thought they were going to use the bomb. I am sure he will be able to find someone to attack and ramp up the US war machine to end the financial instability.
BHO may even find that the UN may take over the USA's military operations thus freeing up a ton of money for his social programs, eh? He can always find an aspirin factory or two that needs flattening as well.
Different and yet the same
Many people are pointing out the similarities to this current financial crisis to the one in 1929 and then make the leap that this could lead to another Depression. While I believe that we are experiencing a nice sized CRASH in the markets, we will not enter a depression, but simply a very long, protracted time of slow to no growth.
Have you seen that oil is < $90/barrel, down from $147/barrel? and the stock market continues to dump. Why? Before when oil went up, the markets went down, and when oil went down, the markets went up. Now the markets and oil are moving together? Very confusing, eh?
Well, not really if you understand 2 things:
1. Oil is sold and denominated in USD (US dollars) and it is going up, so commodities denominated in USD go down
2. The global market crash is indicating that people are going to spending less, transporting less, and therefore energy demand, worldwide, will probably pull-back and therefore, there is an over supply of oil, and therefore the price of oil goes down.
What does all of this mean? Well, you need to do 2 things to protect yourself in times of financial chaos.
First, don't panic since those that keep their heads while everyone else is losing theirs will probably end up doing much better. You probably don't need your investments tomorrow so don't sell if you haven't already. Keep dollar-cost-averaging to your 401K or IRA. As the price of investments decline, you average dollars will buy more thereby lowering your average cost of acquisition.
Second, ensure that you have at least 4-6 months of living expenses in cash or credit cards. Yes, I said unused credit card limits. You need to have emergency money in case of loss of job, interruption in cash flow due to illness, or disability.
These 2 things allow you to sleep better at night and weather pretty much anything that will come our way in the foreseeable future.
BTW (by the way), we are not going to go into a depression due to the many things that are different from 1929. The worst that can happen, and probably will is that the Democrats get hold of the White House and Congress and go on a tax increase and spending spree. This will keep a big lid on growth, but will not recreate the Great Depression. Jobless rates will probably not get much over 8-9% and that's a far cry from the 25-28% unemployment during the height of the Great Depression.
In my next post, I will tell you how the Dems will get us out of this slow growth situation. You will not believe it.
Have you seen that oil is < $90/barrel, down from $147/barrel? and the stock market continues to dump. Why? Before when oil went up, the markets went down, and when oil went down, the markets went up. Now the markets and oil are moving together? Very confusing, eh?
Well, not really if you understand 2 things:
1. Oil is sold and denominated in USD (US dollars) and it is going up, so commodities denominated in USD go down
2. The global market crash is indicating that people are going to spending less, transporting less, and therefore energy demand, worldwide, will probably pull-back and therefore, there is an over supply of oil, and therefore the price of oil goes down.
What does all of this mean? Well, you need to do 2 things to protect yourself in times of financial chaos.
First, don't panic since those that keep their heads while everyone else is losing theirs will probably end up doing much better. You probably don't need your investments tomorrow so don't sell if you haven't already. Keep dollar-cost-averaging to your 401K or IRA. As the price of investments decline, you average dollars will buy more thereby lowering your average cost of acquisition.
Second, ensure that you have at least 4-6 months of living expenses in cash or credit cards. Yes, I said unused credit card limits. You need to have emergency money in case of loss of job, interruption in cash flow due to illness, or disability.
These 2 things allow you to sleep better at night and weather pretty much anything that will come our way in the foreseeable future.
BTW (by the way), we are not going to go into a depression due to the many things that are different from 1929. The worst that can happen, and probably will is that the Democrats get hold of the White House and Congress and go on a tax increase and spending spree. This will keep a big lid on growth, but will not recreate the Great Depression. Jobless rates will probably not get much over 8-9% and that's a far cry from the 25-28% unemployment during the height of the Great Depression.
In my next post, I will tell you how the Dems will get us out of this slow growth situation. You will not believe it.
Goes to show you...
The fact that most of the supposed smart people in Washington DC can't understand why the markets are continuing to dump regardless of how much money or interest rate cuts they throw at it. They simply don't understand human nature. They think that if they dump a bunch of liquidity (print money and add it to the money supply) everyone will think, "Well, that's keen, I think I will start lending/borrowing again..."
The reason that the markets continue to dump is very simple, people want cash more than they want investments. They think that cash will be worth more than investments so they exchange one for the other. When there are more sellers of stocks then there are buyers, the sellers have to lower their prices in order to entice more buyers to come off the fence and take the investments off their hands.
When you have fear driving the selling motivation, see "fear is stronger than greed" (Nanouk Miller October 1987) then you have prices move lower faster and harder than they rise. This is the reason that bull markets take 2-3 times as long to rise an amount equal to the amount lost in a bear market.
Fear trumps greed.
So adding more dollars to the market doesn't deal with the fear issue and so the markets continue to dump until the price at which the investments move overcome the fear and reignite the greed motivation. This takes time and patience.
The other reason for the crash in the markets is that you can't use investments to buy food, pay mortgages, or tip a bellhop at a hotel. You must have cash, and so cash rules in a bear market and since most people don't know how to short sell, they can only make money when the markets rise. Oh, and by the way, the US Government now a socialist entity has outlawed short selling as being bad!
Watch what happens tonight at midnight when the short selling ban ends ;-)
The reason that the markets continue to dump is very simple, people want cash more than they want investments. They think that cash will be worth more than investments so they exchange one for the other. When there are more sellers of stocks then there are buyers, the sellers have to lower their prices in order to entice more buyers to come off the fence and take the investments off their hands.
When you have fear driving the selling motivation, see "fear is stronger than greed" (Nanouk Miller October 1987) then you have prices move lower faster and harder than they rise. This is the reason that bull markets take 2-3 times as long to rise an amount equal to the amount lost in a bear market.
Fear trumps greed.
So adding more dollars to the market doesn't deal with the fear issue and so the markets continue to dump until the price at which the investments move overcome the fear and reignite the greed motivation. This takes time and patience.
The other reason for the crash in the markets is that you can't use investments to buy food, pay mortgages, or tip a bellhop at a hotel. You must have cash, and so cash rules in a bear market and since most people don't know how to short sell, they can only make money when the markets rise. Oh, and by the way, the US Government now a socialist entity has outlawed short selling as being bad!
Watch what happens tonight at midnight when the short selling ban ends ;-)
Wonderful story - will make you laugh
I read a wonderful anecdotal story today, and I wanted to pass it on. I thought it was very cute, but also very to the point.
It goes something like this:
===============================
I was talking to a friend of mine's little girl, and she said she wanted to be President some day. Both of her parents, liberal Democrats, were standing there, so I asked her,
"If you were President what would be the first thing you would do?"
She replied, "I'd give food and houses to all the homeless people."
"Wow - what a worthy goal." I told her, "You don't have to wait until you're President to do that. You can come over to my house and mow, pull weeds, and sweep my yard, and I'll pay you $50. Then I'll take you over to the grocery store where the homeless guy hangs out, and you can give him the $50 to use toward food or a new house."
She thought that over for a few seconds 'cause she's only 6. And while her Mom glared at me, the little girl looked me straight in the eye and asked,
"Why doesn't the homeless guy come over and do the work, and you can just pay him the $50?'"
And I said, "Wow, can you spell 'conservative'?"
Her folks still aren't talking to me.
================================
So true, so true. Now some of you may have heard it a bit different, and I apologize since I changed some of the participants to protect both of the guilty parties. ;-)
It goes something like this:
===============================
I was talking to a friend of mine's little girl, and she said she wanted to be President some day. Both of her parents, liberal Democrats, were standing there, so I asked her,
"If you were President what would be the first thing you would do?"
She replied, "I'd give food and houses to all the homeless people."
"Wow - what a worthy goal." I told her, "You don't have to wait until you're President to do that. You can come over to my house and mow, pull weeds, and sweep my yard, and I'll pay you $50. Then I'll take you over to the grocery store where the homeless guy hangs out, and you can give him the $50 to use toward food or a new house."
She thought that over for a few seconds 'cause she's only 6. And while her Mom glared at me, the little girl looked me straight in the eye and asked,
"Why doesn't the homeless guy come over and do the work, and you can just pay him the $50?'"
And I said, "Wow, can you spell 'conservative'?"
Her folks still aren't talking to me.
================================
So true, so true. Now some of you may have heard it a bit different, and I apologize since I changed some of the participants to protect both of the guilty parties. ;-)
McCain's as Bad as the Democrats
McCain's idea to have the EERA of 2008 use some of its funds, $300 Billion USD, to help bail out actual mortgagors by reducing the amount of their mortgage from what they signed for in a legal contract to the actual value that their real estate is worth now (whatever that may be - talk to a real estate broker to figure that one).
Now what is the LOUC on this very stupid idea?
Well, if your neighbor is going to get his/her mortgage reduced because they are behind in their payments, but you are not, then what are you going to do? Right! You are going to stop paying your mortgage so that you can become eligible to get the same mortgage reduction that your neighbor is getting.
Wonderful! The LOUC is going to really exacerbate the credit crisis by increasing the number of mortgagors that begin to default on their properties. What a republican idea, eh?
Now you know why McCain is dead meat. For Gov. Palin: be glad you keep your day job. You will need it.
Now what is the LOUC on this very stupid idea?
Well, if your neighbor is going to get his/her mortgage reduced because they are behind in their payments, but you are not, then what are you going to do? Right! You are going to stop paying your mortgage so that you can become eligible to get the same mortgage reduction that your neighbor is getting.
Wonderful! The LOUC is going to really exacerbate the credit crisis by increasing the number of mortgagors that begin to default on their properties. What a republican idea, eh?
Now you know why McCain is dead meat. For Gov. Palin: be glad you keep your day job. You will need it.
Pimco to manage Treasury funds
The tale just keeps getting funnier and funnier!
Now the Treasury is contracting with one of the biggest bond fund managers in the business, Pimco (a German subsidiary of Allianz SE of Munich, DE) to help manage the commercial paper buying operations of the $700 Billion USD bail-out bill. These are some of the people complicit in creating this whole mess and have "skin in the game" when it comes to getting bailed out. What rogue's gallery, eh?
That just goes to show you that the LOUC (law of unintended consequences) is going to play out here.
Now the Treasury is contracting with one of the biggest bond fund managers in the business, Pimco (a German subsidiary of Allianz SE of Munich, DE) to help manage the commercial paper buying operations of the $700 Billion USD bail-out bill. These are some of the people complicit in creating this whole mess and have "skin in the game" when it comes to getting bailed out. What rogue's gallery, eh?
That just goes to show you that the LOUC (law of unintended consequences) is going to play out here.
The 2008 Democratic Mandate
In less than a month, the USA will probably elect the most liberal Senator in the US Senate today as its 44th President; however, the much bigger consequence will the most likely election of the all-powerful Democratic Congress if, and that may not be too big an if, the US citizenry give the Democrats total control of the Senate (60 seats to be filibuster-proof), and a supermajority in the House.
If these 3 things take place, the country will move towards socialism very, very quickly, and in 2 years (2010) will not be enough time to stop the damages like what happened with Clinton in 1994, and the Republican "Contract with America". The voting public believe that everything is Bush 43's fault, and they want something new. What they don't realize is now "new" they are going to get.
Also, if the above 3 events occur, then Speaker Pelosi, and Majority Leader Reid of the Senate will take it as a mandate to do just whatever they want, and then you will have 3 of the most liberal/socialistic members of Congress (now that BHO would be President) running everything.
The first thing to change will be health care (the holy grail of the liberal left), and the demand of their constituents since they are being told that "the rich will pay for it". Now when have the rich ever paid for anything that they don't pass on to their employees, suppliers, or customers??
What the liberals don't understand is simple Economics 101. They want to raise the taxes on corporations, and they don't understand that corporations DON'T pay taxes! Let me say that again: corporations don't pay taxes. Now how do they do that, you say? Well, raise taxes on corporations, and they will just raise prices to pay for them, so really pays corporate taxes?
WE DO!!!!!!
Such is life, eh?
If these 3 things take place, the country will move towards socialism very, very quickly, and in 2 years (2010) will not be enough time to stop the damages like what happened with Clinton in 1994, and the Republican "Contract with America". The voting public believe that everything is Bush 43's fault, and they want something new. What they don't realize is now "new" they are going to get.
Also, if the above 3 events occur, then Speaker Pelosi, and Majority Leader Reid of the Senate will take it as a mandate to do just whatever they want, and then you will have 3 of the most liberal/socialistic members of Congress (now that BHO would be President) running everything.
The first thing to change will be health care (the holy grail of the liberal left), and the demand of their constituents since they are being told that "the rich will pay for it". Now when have the rich ever paid for anything that they don't pass on to their employees, suppliers, or customers??
What the liberals don't understand is simple Economics 101. They want to raise the taxes on corporations, and they don't understand that corporations DON'T pay taxes! Let me say that again: corporations don't pay taxes. Now how do they do that, you say? Well, raise taxes on corporations, and they will just raise prices to pay for them, so really pays corporate taxes?
WE DO!!!!!!
Such is life, eh?
BHO in Indiana Steps up Socialist Rhetoric
Listening to BHO's speech in Indiana today, he is really stepping up the socialistic nature of his campaign. When McCain stupidly talked about having the US Government use up to $300 Billion to buy out existing mortgages, clearly a political move to bolster his sagging campaign while abandoning his core principles, BHO figured out it was ok to begin ratcheting up his socio-speech (as I call it) so that he can after the campaign do what he wants in these regards and point to the speeches as: "See, I told you I was going to socialize this and that..."
BHO and his Democratic Congress, worse if the Senate becomes a 60 seat majority, will take over the US Government in a way that all the powers of the world couldn't do. I have to point to back to my previous post, The USSA begins today, to see the items that BHO and his Congress will try and accomplish by the end of his 8 years in office.
His speech in Indiana is already taking on many of these points and showing how they are necessary to fix the Bush Administration's problems. In other words, "we need to move to a more socialistic government for your own betterment." BHO as much as said that his government will ensure fairness, equal treatment in all areas of life (housing, wages, health, education, financial, retirement), and prevention of harm to anyone under my, excuse me, the government's care.
BHO will be the first of several socialistic Presidents that will move the USA from democracy to socialism within 20 years or less. You heard it here first, my friends. If you have somewhere else to move to and live free, you might want to think about getting it ready for your arrival. The USA soon to be the USSA is coming in fast.
By the way, for every % point that BHO wins over McCain, you can expect another Democratic Senator will be elected. Just a rule of thumb.
BHO and his Democratic Congress, worse if the Senate becomes a 60 seat majority, will take over the US Government in a way that all the powers of the world couldn't do. I have to point to back to my previous post, The USSA begins today, to see the items that BHO and his Congress will try and accomplish by the end of his 8 years in office.
His speech in Indiana is already taking on many of these points and showing how they are necessary to fix the Bush Administration's problems. In other words, "we need to move to a more socialistic government for your own betterment." BHO as much as said that his government will ensure fairness, equal treatment in all areas of life (housing, wages, health, education, financial, retirement), and prevention of harm to anyone under my, excuse me, the government's care.
BHO will be the first of several socialistic Presidents that will move the USA from democracy to socialism within 20 years or less. You heard it here first, my friends. If you have somewhere else to move to and live free, you might want to think about getting it ready for your arrival. The USA soon to be the USSA is coming in fast.
By the way, for every % point that BHO wins over McCain, you can expect another Democratic Senator will be elected. Just a rule of thumb.
Nothing will help! McCain is Done!
With the markets currently moving towards the LOS, and the Presidential debates being a bust for McCain, its appears that there is very little to stop the BHO express and the socialization of the USA.
Every 25 years or so, the US takes a big turn from left to right, or right to left. Examples:
In 1932: USA turned to a wheelchair ridden FDR after the 1929 Wall Street Crash, and then watched the world fall into the Great Depression due to his nationalization of the financial system. This is where the 2nd Glass-Steagall Act (June 16, 1933) that FDR got passed along with removing the US Dollar from the gold standard (June 5, 1933) causing the Great Depression to occur due to inflation of a floating monetary instrument.
In 1960: the USA turned to a Senator from Massachusetts, JFK, that took the increasing conservative post-WWII boom town nature of the country when it failed to pan out like Ike had indicated. The JFK entry into the Vietnam war and escalation by his VP, LBJ, led to the 1976-1980 Carter administration hyper-inflation (stagflation).
In 1980: the USA turned right to an ex-actor, RWR, that brought an end to the Cold War with the help of the British PM, M. Hatcher, and established the USA as the sole superpower of the world.
In 2008: the USA will turn left to an unknown, inexperience, socialist, BHO, that is an excellent orator, but have is basically an empty suit running on platitudes and clichés without substance or details. It will be this administration that will move the USA to become a European style socialist government with the US Government taking over everything.
BHO will socialize everything beginning with health care and then rest of the financial systems and insurance. Just listening to his speech today in Indiana, he has already said that he is going to accomplish #1 & 9 (See The USSA Begins Today). Mark my word, as he gains in the polls before the election, listen to his rhetoric become more and more liberal and socialistic. He will still be elected.
Every 25 years or so, the US takes a big turn from left to right, or right to left. Examples:
In 1932: USA turned to a wheelchair ridden FDR after the 1929 Wall Street Crash, and then watched the world fall into the Great Depression due to his nationalization of the financial system. This is where the 2nd Glass-Steagall Act (June 16, 1933) that FDR got passed along with removing the US Dollar from the gold standard (June 5, 1933) causing the Great Depression to occur due to inflation of a floating monetary instrument.
In 1960: the USA turned to a Senator from Massachusetts, JFK, that took the increasing conservative post-WWII boom town nature of the country when it failed to pan out like Ike had indicated. The JFK entry into the Vietnam war and escalation by his VP, LBJ, led to the 1976-1980 Carter administration hyper-inflation (stagflation).
In 1980: the USA turned right to an ex-actor, RWR, that brought an end to the Cold War with the help of the British PM, M. Hatcher, and established the USA as the sole superpower of the world.
In 2008: the USA will turn left to an unknown, inexperience, socialist, BHO, that is an excellent orator, but have is basically an empty suit running on platitudes and clichés without substance or details. It will be this administration that will move the USA to become a European style socialist government with the US Government taking over everything.
BHO will socialize everything beginning with health care and then rest of the financial systems and insurance. Just listening to his speech today in Indiana, he has already said that he is going to accomplish #1 & 9 (See The USSA Begins Today). Mark my word, as he gains in the polls before the election, listen to his rhetoric become more and more liberal and socialistic. He will still be elected.
Opening market volatility
So the market is struggling to maintain the FOMC STIR (Federal Open Market Committee Short Term Interest Rate) cuts impact on the markets that the volatility is killing most traders today.
I have seen swings of over 70pts in less than an hour! The entry for trades is swings 2-4pts and the only way to play these markets today is to put in a trade level near a support and resistance point that you trust and then hang on making sure you don't get up and go to the restroom until the trades is well in your favor or you took a quick, very small protective exit.
DON'T LEAVE YOUR TRADES TO COOK ON AUTOMATIC TODAY!
The market has done some 50, 70 and even 80 pt swings as the mood swings wildly from fear to greed and back to fear. This is not the normal action that occurs at market bottoms. Remember the old trading adage:
A bull market ends with a CRASH and starts with a WHIMPER. This could not be classified as a whimper in any stretch of the imagination. Watch your trades if you are a day trader. If you are long term holder, don't worry, just keep investing the same amount (dollar cost averaging) each month and forget about the statements.
Wheeeeeeeeeeeeeeeeeeeeeeeee!
I have seen swings of over 70pts in less than an hour! The entry for trades is swings 2-4pts and the only way to play these markets today is to put in a trade level near a support and resistance point that you trust and then hang on making sure you don't get up and go to the restroom until the trades is well in your favor or you took a quick, very small protective exit.
DON'T LEAVE YOUR TRADES TO COOK ON AUTOMATIC TODAY!
The market has done some 50, 70 and even 80 pt swings as the mood swings wildly from fear to greed and back to fear. This is not the normal action that occurs at market bottoms. Remember the old trading adage:
A bull market ends with a CRASH and starts with a WHIMPER. This could not be classified as a whimper in any stretch of the imagination. Watch your trades if you are a day trader. If you are long term holder, don't worry, just keep investing the same amount (dollar cost averaging) each month and forget about the statements.
Wheeeeeeeeeeeeeeeeeeeeeeeee!
Socialization of Risk & BHO Presidency
As the FOMC cuts short term interest rates (STIR) by 50bp (0.5%; 1% = 100 basis point) the markets rallied over 80pts, but as soon as the euphoria was cleared, the sellers (buyers in a panic mode) came in a sold into this rally. IT is the funds that are doing this selling since the volume is way too high for individual investors to make.
Why are the funds selling? They are trying to get cash (liquid) to cover the redemptions that are coming today. It is the day that most people open their 401K and IRA statements for September and they are going to call their brokers and SELL SELL SELL!
This is help put a final bottom into the markets either this week or next as I as predicted in earlier posts. (See "Where are the markets headed" in which I said we would find a bottom around 950 in the S&P - WOW, the markets are near 963-970 now).
This financial crisis puts a nail in the coffin of what was Senator McCain's Presidential campaign, and all but ensures the election of the most liberal Democrat in the Senate: BHO (Obama). With his election, the free markets will never be the same, and we will take the first big steps towards complete socialization since it appears "the free markets can't regulate themselves." And you know what? The US citizenry will go right along with that assertion to their new government format: SOCIALISM!
With the assumption of risk by the US Government, the bad behavior will not change since if you were given the situation where you could keep all your profits, but deflect your losses (risk) to the US taxpayer, would you change to become more risk-adverse?
Hell NO! You would do everything you could (just like the S&L Crisis in 1980 when they lifted the risk/reserve ratios on S&L's) to take on risky loans since the government is going to bail you out.
When this becomes known, the Government will step in and nationalize (for the good of the taxpayer) the financial markets to prevent the behavior that they spawned. Pretty cool move, eh?
Take the USA socialistic by "protecting the taxpayer", but it will happen. Watch for the need to add more to the $700 Billion USD bail-out as all the toxic paper starts to hit the streets as the Treasury agents begin buying it up.
And don't forget about the CDS (credit default swaps)! They are just beginning to unravel and they could swamp the $700 Billion fund.
Why are the funds selling? They are trying to get cash (liquid) to cover the redemptions that are coming today. It is the day that most people open their 401K and IRA statements for September and they are going to call their brokers and SELL SELL SELL!
This is help put a final bottom into the markets either this week or next as I as predicted in earlier posts. (See "Where are the markets headed" in which I said we would find a bottom around 950 in the S&P - WOW, the markets are near 963-970 now).
This financial crisis puts a nail in the coffin of what was Senator McCain's Presidential campaign, and all but ensures the election of the most liberal Democrat in the Senate: BHO (Obama). With his election, the free markets will never be the same, and we will take the first big steps towards complete socialization since it appears "the free markets can't regulate themselves." And you know what? The US citizenry will go right along with that assertion to their new government format: SOCIALISM!
With the assumption of risk by the US Government, the bad behavior will not change since if you were given the situation where you could keep all your profits, but deflect your losses (risk) to the US taxpayer, would you change to become more risk-adverse?
Hell NO! You would do everything you could (just like the S&L Crisis in 1980 when they lifted the risk/reserve ratios on S&L's) to take on risky loans since the government is going to bail you out.
When this becomes known, the Government will step in and nationalize (for the good of the taxpayer) the financial markets to prevent the behavior that they spawned. Pretty cool move, eh?
Take the USA socialistic by "protecting the taxpayer", but it will happen. Watch for the need to add more to the $700 Billion USD bail-out as all the toxic paper starts to hit the streets as the Treasury agents begin buying it up.
And don't forget about the CDS (credit default swaps)! They are just beginning to unravel and they could swamp the $700 Billion fund.
Markets rock and reel over Intervention
Yesterday was too busy to blog, sorry.
OK, so the markets around the world tanked yesterday with all the US indices off over 5-7% and hitting new 5-7 year lows.
Does this sound odd? The US Government passed a $700 Billion USD bail-out package on Friday, Oct 3, and the markets have tanked about 1000pts? That wasn't suppose to happen. So what is going on?
Well, whenever the markets are changed by big government intervention, the markets don't know how to act. In effect they are searching for the new rules that are being placed on them by governments around the world. The market volatility is going to stay around until these new rules become apparent to most market participants.
Be ready for more ups and downs and for this to help BHO (Obama) to get elected with a very large Democratic sweep of Congress. Man, this country is going to get a big lesson in civics. When you elect someone without experience and with very liberal, shall we say socialistic views, and put a single party in his back pocket, you get what you deserve!
BHO's 8 years unless he really does something dump and gets impeached, a scenario hard to see with a Democratic Congress, he will completely change the governmental landscape in the US towards a much more centralized government control.
Be careful what you wish for? It usually has major LOUC associated with it. (DYH) Go back and see the post on Oct 3 about:
The USSA Begins Today
OK, so the markets around the world tanked yesterday with all the US indices off over 5-7% and hitting new 5-7 year lows.
Does this sound odd? The US Government passed a $700 Billion USD bail-out package on Friday, Oct 3, and the markets have tanked about 1000pts? That wasn't suppose to happen. So what is going on?
Well, whenever the markets are changed by big government intervention, the markets don't know how to act. In effect they are searching for the new rules that are being placed on them by governments around the world. The market volatility is going to stay around until these new rules become apparent to most market participants.
Be ready for more ups and downs and for this to help BHO (Obama) to get elected with a very large Democratic sweep of Congress. Man, this country is going to get a big lesson in civics. When you elect someone without experience and with very liberal, shall we say socialistic views, and put a single party in his back pocket, you get what you deserve!
BHO's 8 years unless he really does something dump and gets impeached, a scenario hard to see with a Democratic Congress, he will completely change the governmental landscape in the US towards a much more centralized government control.
Be careful what you wish for? It usually has major LOUC associated with it. (DYH) Go back and see the post on Oct 3 about:
The USSA Begins Today
Monday, October 6, 2008
The Crash of 2008!
Yep! I have now heard several financial talking heads use the "C" word - CRASH!
When this hits the TV channels tonight, there will be some more selling this afternoon and tomorrow and then a bottom will be found and up it will go, but it will take most of the general public a bit of time and "Vaseline" to get back in to the market. However, remember, the general public is usually wrong and so when they are selling in panic, its time to get back into the market.
If you follow my advice, look at the VIX and wait for a day where the VIX goes down and then only put a small amount into your favorite mutual fund and then add a bit more each each day, week, or month depending on your time frame.
I live by the old adage: Sell to the greedy, and buy from the panicked!
;-) Have a great day now that we know that the government can't solve a wet paper bag, and this should prove it.
When this hits the TV channels tonight, there will be some more selling this afternoon and tomorrow and then a bottom will be found and up it will go, but it will take most of the general public a bit of time and "Vaseline" to get back in to the market. However, remember, the general public is usually wrong and so when they are selling in panic, its time to get back into the market.
If you follow my advice, look at the VIX and wait for a day where the VIX goes down and then only put a small amount into your favorite mutual fund and then add a bit more each each day, week, or month depending on your time frame.
I live by the old adage: Sell to the greedy, and buy from the panicked!
;-) Have a great day now that we know that the government can't solve a wet paper bag, and this should prove it.
Congress is running for the Hills!
The President and Congress are running for the hills and can't find cover anywhere. Everyone is now pointing at those that voted for the 2nd version of the HR1424 bill that added over $70 Billion in pork to the already $700 Billion USD price tag. That was unbelievable stupidity for the sitting Congress to do.
Those that voted for the bill are going to have a very hard time explaining why they voted for it since the markets tanked anyway. HA HA, I told you so!
Oh well, just sit tight, this too shall pass, but its going to take some time and with the government intervention into the markets, it is not going to be the same playing field when it does come back.
Cash isn't even a safe bet due to the fear-mongering that the US Government did over the last 2 weeks. They get what they spawned. So you could say that this dump is "Spawn of Congress!"
Whew, what a blood bath!
Those that voted for the bill are going to have a very hard time explaining why they voted for it since the markets tanked anyway. HA HA, I told you so!
Oh well, just sit tight, this too shall pass, but its going to take some time and with the government intervention into the markets, it is not going to be the same playing field when it does come back.
Cash isn't even a safe bet due to the fear-mongering that the US Government did over the last 2 weeks. They get what they spawned. So you could say that this dump is "Spawn of Congress!"
Whew, what a blood bath!
Dow OFF over 800 PTS!
Another 800 PT DOWN in the DOW!!!!
I am just a genius, no really. It was just common sense that the markets around the world would sell-off once the bail-out package was put in place especially with the crap that was put into place on the second go around.
McCain should now be ashamed of his voting for the 2nd form of HR1424. He lost all credibility when he voted for that pork-laden piece of junk, but he wanted to be President (he thought) more than maintaining his principles. He lost both.
WOW! The markets are selling off all over the world. Be ready, there will be a DCB tomorrow, or for me, at 1630 EDT when the after-market ES futures open up.
For you investment types, watch the VIX!
I am just a genius, no really. It was just common sense that the markets around the world would sell-off once the bail-out package was put in place especially with the crap that was put into place on the second go around.
McCain should now be ashamed of his voting for the 2nd form of HR1424. He lost all credibility when he voted for that pork-laden piece of junk, but he wanted to be President (he thought) more than maintaining his principles. He lost both.
WOW! The markets are selling off all over the world. Be ready, there will be a DCB tomorrow, or for me, at 1630 EDT when the after-market ES futures open up.
For you investment types, watch the VIX!
Office of Financial Stability
Now the true nature of the US Government's intervention and control of the US financial markets is shown. Treasury Secretary H. Paulson has set up a new bureaucracy called the "Treasury's Office of Financial Stability."
If this is not the beginning of a bureaucracy to control the US financial markets, I don't know what is. When wouldn't you want to have stable financial markets? Sounds so benign, eh? Here is where the control starts. Watch to see how long and big this office gets, and its long arm over the no longer free markets of the USA.
If this is not the beginning of a bureaucracy to control the US financial markets, I don't know what is. When wouldn't you want to have stable financial markets? Sounds so benign, eh? Here is where the control starts. Watch to see how long and big this office gets, and its long arm over the no longer free markets of the USA.
Today's market action
Today if the S&P500 doesn't find support at the 1070 level, it will continue down to the 1025 area for a huge sell-off on the day. Over the next few days, the S&P500 could head for the 1000 level before finding an solid support or the 950 level as indicated in a previous post.
This 950 level will probably allow for a DCB (dead cat bounce) back to the 1100-1125 level over the next few months and then it will dump in April-May 2009 for the 2nd shoe to drop as the amount of toxic paper really becomes apparent.
Everything mortgages reset, there will be another wave of mini-crises where the US Government will have to intervene and increase its strangle control over the US financial markets.
This 950 level will probably allow for a DCB (dead cat bounce) back to the 1100-1125 level over the next few months and then it will dump in April-May 2009 for the 2nd shoe to drop as the amount of toxic paper really becomes apparent.
Everything mortgages reset, there will be another wave of mini-crises where the US Government will have to intervene and increase its strangle control over the US financial markets.
Where the markets are heading?
So I will help you understand where the markets are going to help you with the situation that may play out over the next few weeks and months.
I predict that the markets will continue to slide into the mid-October and then find a bottom somewhere around the 950-1000 level on the S&P500. This is the level that corresponds to the level it was back in October 2002 when the markets completed its dump from the Internet bubble.
The markets will rally a bit back to 1100 during the end of 2008 and then into 2009, and then dump again, but this time back to the 850-900 levels in October 2009 before finding a bear bottom and ending the 2 year bear market recession.
Now all these levels are going to be lower if the $700 Billion USD bail-out plan doesn't work out and the US taxpayer has to pony up more to keep the Wall Street people in their Long Island homes. ;-)
These are only estimations, but with all the complete lack of understanding by financial types about the Monday morning dump of the markets after the bail-out plan was signed into law.
As I said before, now the US taxpayers have another $700 Billion burden AND your 401K is sinking lower. Wonderful intervention by the US Government caused all this chaos.
I predict that the markets will continue to slide into the mid-October and then find a bottom somewhere around the 950-1000 level on the S&P500. This is the level that corresponds to the level it was back in October 2002 when the markets completed its dump from the Internet bubble.
The markets will rally a bit back to 1100 during the end of 2008 and then into 2009, and then dump again, but this time back to the 850-900 levels in October 2009 before finding a bear bottom and ending the 2 year bear market recession.
Now all these levels are going to be lower if the $700 Billion USD bail-out plan doesn't work out and the US taxpayer has to pony up more to keep the Wall Street people in their Long Island homes. ;-)
These are only estimations, but with all the complete lack of understanding by financial types about the Monday morning dump of the markets after the bail-out plan was signed into law.
As I said before, now the US taxpayers have another $700 Billion burden AND your 401K is sinking lower. Wonderful intervention by the US Government caused all this chaos.
Wachovia Buy Out Battle
If you wanted to see the new powers of the socialist US Government, you only have to look at the current battle over the remains of the North Carolina bank holding company, Wachovia. You have the US Government and Citi Group only wanting to buy the good parts of the bank, its banking operations, and then you have Wells Fargo wanting to buy the entire company with no government involvement except for some tax credits they would get under the current tax laws, nothing new.
Guess who the government is siding with? Of course, the now socialist US Government doesn't want the free-markets to take care of this problem, they want to be involved in the solution and all good socialistic governments want.
Here the free market is offering a solution that would not involve the government at all where Wells Fargo would take over all of Wachovia instead of just picking it apart like the Gov/Citi Group deal would do, and the Government is siding with their stooge in this matter: Citi Group.
As I have told you the US Government is becoming more and more involved in all aspects of the financial systems of the USA. This is exactly how Karl Marx said that a government moving towards socialism should act. By taking over the financial systems of the country, the government interjects itself into all parts of the country's economy and would soon be in position to socialize everything else.
If you don't believe me, then Google Karl Marx and read the English translation of his blockbuster, "Das Kapital". See particularly chapter on "The General Law of Capitalist Accumulation".
Guess who the government is siding with? Of course, the now socialist US Government doesn't want the free-markets to take care of this problem, they want to be involved in the solution and all good socialistic governments want.
Here the free market is offering a solution that would not involve the government at all where Wells Fargo would take over all of Wachovia instead of just picking it apart like the Gov/Citi Group deal would do, and the Government is siding with their stooge in this matter: Citi Group.
As I have told you the US Government is becoming more and more involved in all aspects of the financial systems of the USA. This is exactly how Karl Marx said that a government moving towards socialism should act. By taking over the financial systems of the country, the government interjects itself into all parts of the country's economy and would soon be in position to socialize everything else.
If you don't believe me, then Google Karl Marx and read the English translation of his blockbuster, "Das Kapital". See particularly chapter on "The General Law of Capitalist Accumulation".
Treasury to tap Wall Street Contractors
If having a former Goldman Sachs banker, Neel Kashkari, oversee the $700 Billion USD bail-out plan wasn't bad enough, now it appears that Hank Paulson, Sec. of the Treasury, is going to hire Wall Street money managers as contractors to hand out the $700 Billion USD bail-out plan funds! The firms likely to be tapped include:
Legg Mason, Pimco, BlackRock and MKP Capital Management
Now just Google these firms, and you see that they are some of the firms that are going to sell their toxic paper back to the US Government. What a conflict of interest, you say? But wait, the Treasury Dept is going to also issue guidelines on how to handle these potential conflicts of interest (COI). That is so comforting that they already know there will be COI will exist and need to issue guidelines to deal with them. What a government we have, eh?
This is beyond incredulous! The man who used to head Goldman Sachs, Paulson, now Treasury Secretary, is hiring former Goldman Sachs cronies, Neel Kashkari, and Wall Street money managers as contractors to control the funds of the bail-out bill! If this wasn't the truth, it would the setting for a great suspense novel.
US Taxpayers: you are being sold down the road with roses and wine and those that did it to the taxpayers are those that are going to get a 2nd chance at screwing them again under the same crisis. This will go down in history as the largest double rape of the US taxpayer ever invented.
The only silver lining is that the greed and incompetence of these people is finally going to kill the golden goose and it will not happen again since the US will not be in a position to offer this kind of financial resources for the raping.
Totally unbelievable, folks, totally unbelievable, and you are paying for this with your hard earned taxes that you worked for by getting up every morning and working at a job that you hate. Think about that!
Legg Mason, Pimco, BlackRock and MKP Capital Management
Now just Google these firms, and you see that they are some of the firms that are going to sell their toxic paper back to the US Government. What a conflict of interest, you say? But wait, the Treasury Dept is going to also issue guidelines on how to handle these potential conflicts of interest (COI). That is so comforting that they already know there will be COI will exist and need to issue guidelines to deal with them. What a government we have, eh?
This is beyond incredulous! The man who used to head Goldman Sachs, Paulson, now Treasury Secretary, is hiring former Goldman Sachs cronies, Neel Kashkari, and Wall Street money managers as contractors to control the funds of the bail-out bill! If this wasn't the truth, it would the setting for a great suspense novel.
US Taxpayers: you are being sold down the road with roses and wine and those that did it to the taxpayers are those that are going to get a 2nd chance at screwing them again under the same crisis. This will go down in history as the largest double rape of the US taxpayer ever invented.
The only silver lining is that the greed and incompetence of these people is finally going to kill the golden goose and it will not happen again since the US will not be in a position to offer this kind of financial resources for the raping.
Totally unbelievable, folks, totally unbelievable, and you are paying for this with your hard earned taxes that you worked for by getting up every morning and working at a job that you hate. Think about that!
Money Manager for Rescue Plan
The Secretary of the Treasury, Henry Paulson, has now tapped one of his cronies from his days at Goldman Sachs, Neel Kashkari, currently the Undersecretary of the Treasury for International Affairs, to oversee the $700 Billion USD bail-out plan!
WOW! Now we have the people that created the problem now overseeing the bail-out plan and handing out taxpayer dollars to those that were part of the problem. This just keeps getting better and better.
This is like having the Keeting 5 (DYH: do your homework) overseeing the Savings and Loan bail-out of the 1980s!
Unbelievable!
WOW! Now we have the people that created the problem now overseeing the bail-out plan and handing out taxpayer dollars to those that were part of the problem. This just keeps getting better and better.
This is like having the Keeting 5 (DYH: do your homework) overseeing the Savings and Loan bail-out of the 1980s!
Unbelievable!
Markets TANK in Europe and Asia
Again, for those that think this $700 Billion USD bail-out plan is going to fix things, the European and Asian market dumps are evidence that this government intrusion is only going to make matter worse as most government interventions do. Think about it: if government intervention is good and so calming, why did the USSR's economy finally bring it down? It would seem that the largest government on the planet of the socialist form (the USSR at its zenith) couldn't maintain its existence with all the government intervention it could muster. Remember the USSR lines for everything not just bread?
As the government sticks its nose into more and more of the US economy, it will also go the way of the USSR. This is just the LOUC (law of unintended consequences).
As the government sticks its nose into more and more of the US economy, it will also go the way of the USSR. This is just the LOUC (law of unintended consequences).
Sunday, October 5, 2008
Good Night, more tomorrow
Need to get some sleep as the futures are open and tanking again (down 16pts for now). Will continue more blogging tomorrow as the idiocy continues...
The Lessor of Two Evils
It is now time for the truly conservatives of the both the Republican and Democratic parties to realize that voting for the "lessor of 2 evils" will not and has not solved any problems. In fact, the reason that the Republican Party is in its current state of disarray is that so many of its recent elections have forced the "lessor of 2 evil" votes by conservatives of the Republican Party.
This began with the nomination of Bush 41, Senator Dole, and the height of "lessor of 2 evils" was the 2000 and 2004 nomination of Bush 43. In all three cases, conservatives were forced to vote for these candidates even though they were truly not the best candidates, but were marginally better than what the other side had to offer. Again, in 2008, we are forced to vote for McCain/Palin in order not to allow Obama/Biden to win the Presidency.
This concept of accepting the "lessor of 2 evils" only delays the inevitable: that the Republican Party has become as corrupt and useless as the current Democratic Party. In other words, there is really little difference between the 2 parties. We need to let the Dems completely "run the table" in 2008; take control of the entire government including a 60 seat majority in the Senate and then let them push their Socialist agenda and watch the USA slip into a coma.
Maybe then the true conservatives will find their voice and understand that freedom is something that needs to be fought for every day and in every way. Citizenship in the USA is advanced democracy. It requires that people understand that the USA is the last bastion of freedom until last Friday.
Quit voting for the "lessor of 2 evils" and be strong enough to stand up and vote for the best candidate regardless of the outcome. Trust me: BHO is not the best candidate. I can not remember when a more unqualified candidate has made it this far into the process for selection of the American Presidency.
Ah, time will show the mistake of his election in November.
This began with the nomination of Bush 41, Senator Dole, and the height of "lessor of 2 evils" was the 2000 and 2004 nomination of Bush 43. In all three cases, conservatives were forced to vote for these candidates even though they were truly not the best candidates, but were marginally better than what the other side had to offer. Again, in 2008, we are forced to vote for McCain/Palin in order not to allow Obama/Biden to win the Presidency.
This concept of accepting the "lessor of 2 evils" only delays the inevitable: that the Republican Party has become as corrupt and useless as the current Democratic Party. In other words, there is really little difference between the 2 parties. We need to let the Dems completely "run the table" in 2008; take control of the entire government including a 60 seat majority in the Senate and then let them push their Socialist agenda and watch the USA slip into a coma.
Maybe then the true conservatives will find their voice and understand that freedom is something that needs to be fought for every day and in every way. Citizenship in the USA is advanced democracy. It requires that people understand that the USA is the last bastion of freedom until last Friday.
Quit voting for the "lessor of 2 evils" and be strong enough to stand up and vote for the best candidate regardless of the outcome. Trust me: BHO is not the best candidate. I can not remember when a more unqualified candidate has made it this far into the process for selection of the American Presidency.
Ah, time will show the mistake of his election in November.
Beginning of the Crash of 2008
This intrusion by the government into the financial systems of the USA has done nothing but to elongate the recovery period just like the action of FDR in 1933 elongated the 1929 crash from a recession into the Great Depression. We will come back to this bill in the future and realize that this was the point at which the USA passed from a country beginning a normal business cycle recession to a country entering into a multi-year depression.
This bill has done nothing to fix the problems with the credit markets. It has only allowed those on Wall Street to dump their bad investments as the result of bad decisions onto the biggest saps in history: the US taxpayers.
Every time the government interjects its will into private markets, the law of unintended consequences (LOUC) invariably comes into play. The LOUC in this case will be the elongation of the real estate slump, the saddling of the US taxpayer with foreign bad paper from non-US banks and investment entities, and the enrichment of those that caused the crisis in the first place.
We will revisit this bill since $700 Billion will only be the tip of the iceberg when the US Government buys these non-performing assets instead of addressing the real cause of the crisis: confidence. Buying of these assets will only depress the US Dollar, drive investment from the US shores due to need to cut interest rates by the Federal Reserve, and the tax increases necessary and implemented by the BHO (Obama) presidency.
This may be a worse depression than the 1930's except that the climate may actually be very comfortable during this time since I don't believe in AGW (anthropomorphic global warming - DYH: do your homework).
This bill has done nothing to fix the problems with the credit markets. It has only allowed those on Wall Street to dump their bad investments as the result of bad decisions onto the biggest saps in history: the US taxpayers.
Every time the government interjects its will into private markets, the law of unintended consequences (LOUC) invariably comes into play. The LOUC in this case will be the elongation of the real estate slump, the saddling of the US taxpayer with foreign bad paper from non-US banks and investment entities, and the enrichment of those that caused the crisis in the first place.
We will revisit this bill since $700 Billion will only be the tip of the iceberg when the US Government buys these non-performing assets instead of addressing the real cause of the crisis: confidence. Buying of these assets will only depress the US Dollar, drive investment from the US shores due to need to cut interest rates by the Federal Reserve, and the tax increases necessary and implemented by the BHO (Obama) presidency.
This may be a worse depression than the 1930's except that the climate may actually be very comfortable during this time since I don't believe in AGW (anthropomorphic global warming - DYH: do your homework).
The End of the Republicans & McCain
With the candidacy of Senator McCain, the Republican Party has moved one step farther down the road of extinction. Don't get me wrong, I think that McCain is a very principled and distinguished Senator; however, with his support for the outrageously flawed EERA of 2008, he abandoned his principles for a political advantage. This is the mark of a beltway politico, not the action of a statesman. Even though it may have caused some pain in the short term, a "no vote" by Senator McCain would have allowed him to maintain his career long stance against political pork. His support for such a flawed and pork-ridden bill put him back into the camp of Obama, Dodd, and Speaker Pelosi and her liberal crew in the House.
Supporting this unbelievable piece of ill-written legislation, McCain showed that he did not have what it takes to stand his ground nor be the maverick his most recent actions have showed him to be. McCain should have made the correct decision to fight against this bill for a better one. Nothing required this time line of action except the fear-mongering White House and financial media: both of which has a vested interested in getting the bill passed.
Senator McCain: know this act of political cowardice is not becoming a man of your stature or integrity. Why didn't you have the "gromba" to stand your historical hatred of pork. Too bad, sir.
Supporting this unbelievable piece of ill-written legislation, McCain showed that he did not have what it takes to stand his ground nor be the maverick his most recent actions have showed him to be. McCain should have made the correct decision to fight against this bill for a better one. Nothing required this time line of action except the fear-mongering White House and financial media: both of which has a vested interested in getting the bill passed.
Senator McCain: know this act of political cowardice is not becoming a man of your stature or integrity. Why didn't you have the "gromba" to stand your historical hatred of pork. Too bad, sir.
Saturday, October 4, 2008
The Final Word in Blame
The blame for all of this financial turmoil lies with the US Government lock, stock, and barrel.
Beginning with the New Deal in the 1930's when Fannie-Mae was created to social engineer FDR's desire to support "every man owing his own home..." When this started, it sounded great, but it began the slide toward government fiddling with the financial systems.
It continued with the Great Society of the LBJ years that privatized Fannie-Mae with the status of GSE (government sponsored entities) so that they could increase the risk profile without worry since the "full faith and credit" of the US Government was backing their portfolios.
It culminated in the CRA of 1977 (remember President Carter's great social engineering proposal) where politically-motivated community organizations like ACORN could and did bully banks into lowering their lending standards to allow lower-income, inter-city borrowers to buy home they couldn't afford, but could use the rising real estate market valuation to make money by holding the real estate properties just long enough to make some equity.
Remember, the real estate market created a bubble because of the easy to get loans created by the CRA and lower interest rates of the post-2001 environment.
When the real estate bubble burst and interest rates rose, all the government-protected GSEs (remember Fannie and Freddie), and the mortgage-back securitizations (remember Bear Sterns, Lehman Brothers, Countrywide, WaMu, Wachovia, etc) along with their so-called insurance protection (remember AIG) providers came down like a house of cards.
Thus, the blame goes back to the bleeding-heart liberals that believe you can social engineer the human condition. All you ever do is with social engineering is open up the door to deceit, fraud, and failure. By why take my word, DYH (do your homework), the USA has done this to itself over 6 times before between the Civil War and WWII.
It appears that the USA never learns, but the sheer size of this stupid move may be more than even the USA can handle.
Beginning with the New Deal in the 1930's when Fannie-Mae was created to social engineer FDR's desire to support "every man owing his own home..." When this started, it sounded great, but it began the slide toward government fiddling with the financial systems.
It continued with the Great Society of the LBJ years that privatized Fannie-Mae with the status of GSE (government sponsored entities) so that they could increase the risk profile without worry since the "full faith and credit" of the US Government was backing their portfolios.
It culminated in the CRA of 1977 (remember President Carter's great social engineering proposal) where politically-motivated community organizations like ACORN could and did bully banks into lowering their lending standards to allow lower-income, inter-city borrowers to buy home they couldn't afford, but could use the rising real estate market valuation to make money by holding the real estate properties just long enough to make some equity.
Remember, the real estate market created a bubble because of the easy to get loans created by the CRA and lower interest rates of the post-2001 environment.
When the real estate bubble burst and interest rates rose, all the government-protected GSEs (remember Fannie and Freddie), and the mortgage-back securitizations (remember Bear Sterns, Lehman Brothers, Countrywide, WaMu, Wachovia, etc) along with their so-called insurance protection (remember AIG) providers came down like a house of cards.
Thus, the blame goes back to the bleeding-heart liberals that believe you can social engineer the human condition. All you ever do is with social engineering is open up the door to deceit, fraud, and failure. By why take my word, DYH (do your homework), the USA has done this to itself over 6 times before between the Civil War and WWII.
It appears that the USA never learns, but the sheer size of this stupid move may be more than even the USA can handle.
Like Japan, here we go!
The USA is moving towards the problems that Japan has suffered for the last 15 years since they monetized their real estate market, and then had to lower their interest rates to 0% to keep the real estate market from collapsing. When it did, Japan went into a decade long recession from which they are just now beginning to recover.
We have now done the exact same thing. We allowed people to use real estate to live beyond their means, to buy things they couldn't have afforded otherwise by giving them sub-prime loans on more than 100% of the value of their collateral. Heard this before? (DYH) Do your homework about what happened to Japan from 1990-2005.
The USA learned nothing from Japan's spiral into a 3rd world status, but here we go.
We have now done the exact same thing. We allowed people to use real estate to live beyond their means, to buy things they couldn't have afforded otherwise by giving them sub-prime loans on more than 100% of the value of their collateral. Heard this before? (DYH) Do your homework about what happened to Japan from 1990-2005.
The USA learned nothing from Japan's spiral into a 3rd world status, but here we go.
In-mates are running the Asylum
With the passage of the EERA of 2008, the US Government is now in the hands of the inmates!
Hank Paulson, Secretary of the Treasury, is already moving to hire private money managers to oversee the disbursement of the $700 Billion USD provided by the bill.
Wait! Aren't these the same guys who got us into the mess in the first place? Only in America can the bandits not only be acquitted, but are invited back to run the security system of your business! WOW! The rest of the world must be laughing their asses off over this.
If I was a radical Islamic terrorist I would be worried about my futures since it appears that the USA is doing what they failed to do on 911. The USA is moving towards its own demise quicker and with its own hand on the knife. Terrorism need not worry about the USA any longer; they only need to be patient and let the USA kill itself.
Whew, whodda thunk?
Hank Paulson, Secretary of the Treasury, is already moving to hire private money managers to oversee the disbursement of the $700 Billion USD provided by the bill.
Wait! Aren't these the same guys who got us into the mess in the first place? Only in America can the bandits not only be acquitted, but are invited back to run the security system of your business! WOW! The rest of the world must be laughing their asses off over this.
If I was a radical Islamic terrorist I would be worried about my futures since it appears that the USA is doing what they failed to do on 911. The USA is moving towards its own demise quicker and with its own hand on the knife. Terrorism need not worry about the USA any longer; they only need to be patient and let the USA kill itself.
Whew, whodda thunk?
The Slide to Socialism
Here come the socialists...
All the socialists are now coming out of the woodwork and signing on to the nationalization of Wall Street. That should show everyone that this bill was the first step in moving USA towards European-style socialism. It will be done in the name protecting the taxpayer by taking the next step and socializing the profit side of the equation now that we have socialized the risk of financial investments.
Don't think that we can't move towards socialism in your life time! How many people would have thought that within 6 short months the US Government would have nationalized almost 40% of the mortgage market (taking over of Fannie-Mae and Freddie-Mac), and the taking over of the world's largest insurance entity (AIG), and the take-out of 3 of the 5 largest investment banks on Wall Street (Bear Sterns, Lehman Brothers, and Merrill Lynch), and finally converting the 2 remaining investment banks (Morgan Stanley, and Goldman Sachs) into bank holding companies.
The US Government has done in 6 short months what it took Russia to do in 12 years!
We got onto Hugo Chavez of Venezuela over his nationalization of his country's private companies, and look what we did this last week?
The slide to socialism took huge steps this week in the USA.
All the socialists are now coming out of the woodwork and signing on to the nationalization of Wall Street. That should show everyone that this bill was the first step in moving USA towards European-style socialism. It will be done in the name protecting the taxpayer by taking the next step and socializing the profit side of the equation now that we have socialized the risk of financial investments.
Don't think that we can't move towards socialism in your life time! How many people would have thought that within 6 short months the US Government would have nationalized almost 40% of the mortgage market (taking over of Fannie-Mae and Freddie-Mac), and the taking over of the world's largest insurance entity (AIG), and the take-out of 3 of the 5 largest investment banks on Wall Street (Bear Sterns, Lehman Brothers, and Merrill Lynch), and finally converting the 2 remaining investment banks (Morgan Stanley, and Goldman Sachs) into bank holding companies.
The US Government has done in 6 short months what it took Russia to do in 12 years!
We got onto Hugo Chavez of Venezuela over his nationalization of his country's private companies, and look what we did this last week?
The slide to socialism took huge steps this week in the USA.
The Public Trough is Open
Well the race for the public trough is now fully underway...
Gov. Arnold Schwarzenegger of California now wants the US Federal government to loan his state over $7 Billion dollars!!! So the USA is now the lender of first resorts as everyone now is coming with their hands out for taxpayer dollars.
This will only get worse as everyone now see their financial future coming from the pockets of the US taxpayer. I can't wait for this to push inflation up as the Federal Reserve tries to forestall economic recession by lowering interest rates to 0%! We learned nothing from the Japanese problems of the 1980's.
As the interest rates move towards 0%, capital will leave the USA leaving the USA in a decades-long recession like what Japan is finally coming out of after years and years of languishing in the no-man's land of a financial wasteland.
Gov. Arnold Schwarzenegger of California now wants the US Federal government to loan his state over $7 Billion dollars!!! So the USA is now the lender of first resorts as everyone now is coming with their hands out for taxpayer dollars.
This will only get worse as everyone now see their financial future coming from the pockets of the US taxpayer. I can't wait for this to push inflation up as the Federal Reserve tries to forestall economic recession by lowering interest rates to 0%! We learned nothing from the Japanese problems of the 1980's.
As the interest rates move towards 0%, capital will leave the USA leaving the USA in a decades-long recession like what Japan is finally coming out of after years and years of languishing in the no-man's land of a financial wasteland.
Verbal Diarrhea
So all the financial heads begin the weekend "verbal diarrhea" about how if the Congress had not acted the economy would have imploded, dumped, tanked, crashed; choose your word, choose your pundit. However, I simply ask the very simple question:
Why do we expect the people that caused this problem, didn't see this problem coming, didn't warn anyone that it was coming, or don't think this is a good solution, be the ones to handle its rescue?
Everyone to a person has said that "this is not a good solution..." but "we had to act..." When has government ever acted or implemented a program that hasn't cost more, took more, and done less?
The US Government has now become a socialistic entity by the taking of private companies, nationalizing risk and federalizing private contracts. Go back and read Karl Marx's "Das Kapital" and see how he defined what a socialistic government should look like and how it should nationalize a country's financial and credit markets. Sound familiar?
Karl would be very happy today as the USA dies as the world's last great democracy.
Why do we expect the people that caused this problem, didn't see this problem coming, didn't warn anyone that it was coming, or don't think this is a good solution, be the ones to handle its rescue?
Everyone to a person has said that "this is not a good solution..." but "we had to act..." When has government ever acted or implemented a program that hasn't cost more, took more, and done less?
The US Government has now become a socialistic entity by the taking of private companies, nationalizing risk and federalizing private contracts. Go back and read Karl Marx's "Das Kapital" and see how he defined what a socialistic government should look like and how it should nationalize a country's financial and credit markets. Sound familiar?
Karl would be very happy today as the USA dies as the world's last great democracy.
Friday, October 3, 2008
The United Socialist States of America (USSA) Begns Today
With the passage of the EERA 2008 and being signed into law by our dear, misguided and confused President Bush (I am a conservative and voted for the bozo), the USA has now progressed into the status of being a socialist country. The socialization of risk (the assumption of bad debts and bad decisions by private companies) is only the first step on the path towards a European-style socialistic form of government.
Study history since this is how most of the European countries started down that path of socialism. After WWII, most governments used that crisis to nationalize most of the private operations of their financial institutions, then to pay for the poor performance and centralized planning, they had to increase the tax rate on everyone not just the rich (heard that before?). Finally when the tax rate started approaching 70-80%, the public just gave up and told the government to take over and provide them their livelihood (remember "bread and circus") and take care of everything else of interest.
The USA when it elects BHO (Barack Hussein Obama) and an all-Democratic Congress in November will take the 2nd step. Over the 4 to 8 years of BHO's tenure, the USA will do the following:
1. Nationalization of health care and prevention of doctors from leaving the USA
2. Nationalization of the education system (no more private education)
3. Socialization of the welfare system ensuring that everyone gets a living wage
4. Socialization of the housing system so everyone has a place to live
5. Demilitarization of the US military giving control of our soldiers and weapons to the UN
6. Revocation of the 2nd amendment pertaining to private ownership of firearms
7. Federalization of the public air wave and media via the "Fairness Doctrine"
8. Suppression of conservative religious activities via IRS revocation of "tax exempt" status
9. Huge increases in tax rates on corporations so that when they fail, the Government must nationalize them
10. Finally, the piece de resistance, will be the rationing and price controls of goods and services as the free-market fails to work due imposition of global warming reduction initiatives that hamstring the US economic engine.
We are headed towards the USSA: the United Socialist States of America
Enjoy your lack of discipline, character, and citizenship, America. You have doomed your future to that of a 3rd World status.
Study history since this is how most of the European countries started down that path of socialism. After WWII, most governments used that crisis to nationalize most of the private operations of their financial institutions, then to pay for the poor performance and centralized planning, they had to increase the tax rate on everyone not just the rich (heard that before?). Finally when the tax rate started approaching 70-80%, the public just gave up and told the government to take over and provide them their livelihood (remember "bread and circus") and take care of everything else of interest.
The USA when it elects BHO (Barack Hussein Obama) and an all-Democratic Congress in November will take the 2nd step. Over the 4 to 8 years of BHO's tenure, the USA will do the following:
1. Nationalization of health care and prevention of doctors from leaving the USA
2. Nationalization of the education system (no more private education)
3. Socialization of the welfare system ensuring that everyone gets a living wage
4. Socialization of the housing system so everyone has a place to live
5. Demilitarization of the US military giving control of our soldiers and weapons to the UN
6. Revocation of the 2nd amendment pertaining to private ownership of firearms
7. Federalization of the public air wave and media via the "Fairness Doctrine"
8. Suppression of conservative religious activities via IRS revocation of "tax exempt" status
9. Huge increases in tax rates on corporations so that when they fail, the Government must nationalize them
10. Finally, the piece de resistance, will be the rationing and price controls of goods and services as the free-market fails to work due imposition of global warming reduction initiatives that hamstring the US economic engine.
We are headed towards the USSA: the United Socialist States of America
Enjoy your lack of discipline, character, and citizenship, America. You have doomed your future to that of a 3rd World status.
Too Bad, Congress! Market TANKS!
The market is now making new Lows of the YEAR! HA! What did I tell you! This bill was only going to provide cover for the rich to exit leaving the public on tap for the bill. If this was going to fix the markets, they would have rallied, but now that this lie is exposed, the market will tank into the close on huge volume and make new lows of the year over and over.
This was like shooting fish in a barrel to call! The taxpayers are on tap for over $700 Billion and they are still losing in the 401K!!! What a bunch of saps the American taxpayer has become. If you hadn't succumb to the fear put on you, at least you would have not had to pay for $700 Billion on top of your losing 401K! Choke on it, John Q Public. You deserve to get financially raped. You did it again letting the politicos and Warren Buffets do it to you again.
You should have let the markets take care of this without government involvement.
This was like shooting fish in a barrel to call! The taxpayers are on tap for over $700 Billion and they are still losing in the 401K!!! What a bunch of saps the American taxpayer has become. If you hadn't succumb to the fear put on you, at least you would have not had to pay for $700 Billion on top of your losing 401K! Choke on it, John Q Public. You deserve to get financially raped. You did it again letting the politicos and Warren Buffets do it to you again.
You should have let the markets take care of this without government involvement.
Too Late, Republicans
It's now too late to pull the Republicans back from the brink of self-imploding. They have now become the party that doesn't listen to its constituents, and hopefully they will pay a price by losing the 2008 election big time. I hope that the Democrats win BIG TIME in November since this will be the only way a new Republican Party can be born.
Bush 41 started the demise of the GOP and his son, Bush 43, completed the work. The GOP is now a defunct party without direction or purpose. It is now time for it to pass into history with Bush's fingerprints all over the trigger that killed it.
I know that letting the Dems control the government sounds radical, and it will hurt, but I think that once they totally screw things up like Clinton tried to do during his time with a Democrat-controlled Congress (1993-1995), I think that the country will see the need to hog-tie BHO and his crew again with a new Conservative-style Congress that will Phoenix from the ashes of the Bush 43 administration.
So, I am no longer a Republican, will not support Republicans, and will do everything I can to make the Democrats win big in November since it will hurry on the demise and rebirth of a Conservative Republican Party.
Bush 41 started the demise of the GOP and his son, Bush 43, completed the work. The GOP is now a defunct party without direction or purpose. It is now time for it to pass into history with Bush's fingerprints all over the trigger that killed it.
I know that letting the Dems control the government sounds radical, and it will hurt, but I think that once they totally screw things up like Clinton tried to do during his time with a Democrat-controlled Congress (1993-1995), I think that the country will see the need to hog-tie BHO and his crew again with a new Conservative-style Congress that will Phoenix from the ashes of the Bush 43 administration.
So, I am no longer a Republican, will not support Republicans, and will do everything I can to make the Democrats win big in November since it will hurry on the demise and rebirth of a Conservative Republican Party.
McCain Lost White House on Passage
Remember, the Government created this financial fiasco in the first place. Do your homework (DYH) and see how the market treats this passage by dumping over 250pts on the DOW. It is not going to solve a thing, and when it becomes a big, flat failure, Congress is going to hang it on the necks of Bush and McCain!
McCain: know this as the time and place that you lost the White House! You will have to know that your turncoat change to support a bill laden with pork and give-mes will go down in history as your Waterloo. Too bad, Senator. You blew it big time!
If you win somehow in November it will only be because BHO missteps big time before the election.
McCain: know this as the time and place that you lost the White House! You will have to know that your turncoat change to support a bill laden with pork and give-mes will go down in history as your Waterloo. Too bad, Senator. You blew it big time!
If you win somehow in November it will only be because BHO missteps big time before the election.
Politics makes Strange Bedfellows
This bill now makes some of the most strangest of bedfellows. President Bush is now thanking all the Democrats that helped to pass this bill. That should show you that it was a pile of crap! When Bush and the Congressional Demos get together there is something wrong!
President Bush is now going to be the President that kills the Republican Party. It is dead and he killed it. I am so sorry that I voted for him in 2004; I should have voted for myself which I will from now on. At least I know the person and his values and principles. Bush 43 will go down as one of the worst Presidents of this century regardless of whom is elected from now on.
Bush should have never been let near the Oval Office after 2004 since he completely threw over the Conservative wing of the GOP since he didn't need them any longer. They will revolt in 2008 election and BHO will be elected President with a Democratic Senate and House. Then all hell will break loose! This bill will not fix the economy since the economy is in a cycle down and this bill will just make it worse. Government intervention always kills free-markets, and this bill is the worst of all government interventions.
Be ware, folks, this bill was not needed. The FDIC could raise its own limits to more than $250,000.00. The SEC and FASB could overturn the Rule 157 (Mark to Market), and all of this could be done without a $700 Billion taxpayer bail-out! This will NOT stabilize the markets!
President Bush is now going to be the President that kills the Republican Party. It is dead and he killed it. I am so sorry that I voted for him in 2004; I should have voted for myself which I will from now on. At least I know the person and his values and principles. Bush 43 will go down as one of the worst Presidents of this century regardless of whom is elected from now on.
Bush should have never been let near the Oval Office after 2004 since he completely threw over the Conservative wing of the GOP since he didn't need them any longer. They will revolt in 2008 election and BHO will be elected President with a Democratic Senate and House. Then all hell will break loose! This bill will not fix the economy since the economy is in a cycle down and this bill will just make it worse. Government intervention always kills free-markets, and this bill is the worst of all government interventions.
Be ware, folks, this bill was not needed. The FDIC could raise its own limits to more than $250,000.00. The SEC and FASB could overturn the Rule 157 (Mark to Market), and all of this could be done without a $700 Billion taxpayer bail-out! This will NOT stabilize the markets!
Bill Passage See 250pts shed from DOW!
With the passage of the EERA 2008, the DOW tanks 250pts and the talking heads are saying, "see without the passage of this bill, the poor jobs number would have tanked the market!" They have an explanation for everything, but now the US Taxpayer is on the hook for over $700 Billion and probably closer to $1.5 Trillion once its done.
I warned you here that this bill will cause the markets to die in the long run with this much governmental intervention. Everyone is shouting about, "We have saved the markets, we have saved the markets!" Just watch Warren Buffet and why he is for the bail-out. He is now going to make money on the backs off the US taxpayers! Why do you think he was fear-mongering just like the rest, "God help us if this doesn't pass!" Sure, he wants to make money on his $8 billion investments that will be made from the taxpayers being forced to swallow this pile of dung.
I just hope, which I don't think will happen since America is now stupid and made up of very selfish citizens, that the markets tank and show that this bill is not the fix they think it will be. The blather being put out about how they have saved the economy, and all they have done is put America onto a socialistic path.
I warned you here that this bill will cause the markets to die in the long run with this much governmental intervention. Everyone is shouting about, "We have saved the markets, we have saved the markets!" Just watch Warren Buffet and why he is for the bail-out. He is now going to make money on the backs off the US taxpayers! Why do you think he was fear-mongering just like the rest, "God help us if this doesn't pass!" Sure, he wants to make money on his $8 billion investments that will be made from the taxpayers being forced to swallow this pile of dung.
I just hope, which I don't think will happen since America is now stupid and made up of very selfish citizens, that the markets tank and show that this bill is not the fix they think it will be. The blather being put out about how they have saved the economy, and all they have done is put America onto a socialistic path.
Capitulation!
The Congressmen/women that voted the EERA 2008 (HR 1424) down on Monday are slipping and are now going to pass this bastardization with more pork and cost and are calling it "better of two evils!" I am more angry at these representatives since they are getting a worse bill than Monday's version. There goes their integrity and my support.
The fear-mongering is going to unravel soon so the people on Capital Hill are trying to get it done before it does. What a crock of action from our elected stooges.
The fear-mongering is going to unravel soon so the people on Capital Hill are trying to get it done before it does. What a crock of action from our elected stooges.
Cause the Problem, then Solve the Problem!
Here is a case where the Congress, White House, and financial media cause the problem by their continuous fear-mongering about another Great Depression instead of telling everyone that the financial systems are fundamentally sound, but may have some work to do. People understand that issue, but this constant mongering about the "sky is falling, the sky is falling..." that unless we do something all hell will break loose.
Ask yourself this question: when has Congress ever done something under this type of duress that has worked out? It has taken over 13 years to get into this problem beginning with the changes of the CRA in 1995 to force loan making to low income neighborhoods, and the repeal of the Glass-Steagall Act in 1999 both during the Clinton administration, and we should feel good about finding a solution in 2 weeks? The credit markets have been slowing down for over 18 months, why now do we have to do something so fast?
Why aren't the financial media types showing the smaller to medium-sized banks that are lending and helping small businesses? Why are they only showing the fear-mongering types that have made the bad financial decisions to own these toxic CDOs and SIVs? Just follow the money. Those that are for the bill (banks, investment types, media-types) are those that will benefit from its passage. Why is main street America against it? They know that this is largest bail-out of those that made bad decisions, and want nothing to do with it!
Prediction: it will pass and America will go down starting from here since government will never let the markets be free again. You will hear:
"We can't do that, look what happened in 2007-2008!"
"We have to control the markets since they can't do it themselves!"
"See what they did in 2007-2008!"
"See how the taxpayers got stuck for the bail-out in the year!"
And the fear-mongering goes on with the Republicans now whipping up the fear and getting ready to vote for it while their constituents are still fully against it. Rep. Boehner (R:Ohio) has the audacity to say that with over $5 Billion in new pork, its a better bill! Wow! If Ohio sends this guy back to Congress, they deserve what they get!
Ask yourself this question: when has Congress ever done something under this type of duress that has worked out? It has taken over 13 years to get into this problem beginning with the changes of the CRA in 1995 to force loan making to low income neighborhoods, and the repeal of the Glass-Steagall Act in 1999 both during the Clinton administration, and we should feel good about finding a solution in 2 weeks? The credit markets have been slowing down for over 18 months, why now do we have to do something so fast?
Why aren't the financial media types showing the smaller to medium-sized banks that are lending and helping small businesses? Why are they only showing the fear-mongering types that have made the bad financial decisions to own these toxic CDOs and SIVs? Just follow the money. Those that are for the bill (banks, investment types, media-types) are those that will benefit from its passage. Why is main street America against it? They know that this is largest bail-out of those that made bad decisions, and want nothing to do with it!
Prediction: it will pass and America will go down starting from here since government will never let the markets be free again. You will hear:
"We can't do that, look what happened in 2007-2008!"
"We have to control the markets since they can't do it themselves!"
"See what they did in 2007-2008!"
"See how the taxpayers got stuck for the bail-out in the year!"
And the fear-mongering goes on with the Republicans now whipping up the fear and getting ready to vote for it while their constituents are still fully against it. Rep. Boehner (R:Ohio) has the audacity to say that with over $5 Billion in new pork, its a better bill! Wow! If Ohio sends this guy back to Congress, they deserve what they get!
The House May Pass Again, NOT!
Now the Pelosi Nightmare (the current Congress) is saying that they may not have the votes to even do the rule change vote that allows the HR 1424 bill to be reintroduced to the House floor. They again are trying to whip the public to call their representatives and tell them to change their votes. However, when calling Congress or emailing the same politicos, those that are against the bill are receiving their calls and emails, but those in favor of the bill are saying that the House phone system and email systems are not capable of handling the volume. Pretty smart systems that can understand the intent of the senders before sending them on their intended parties.
The Pelosi Nightmare will whip the vote, add pork, threaten their won side until they get enough votes to pass the bill. When its done, what will they have to say? They will be able to say that they are in sync with George Bush! WOW! Politics do make strange bed-fellows. It would have been better for McCain had he voted against it, but since he didn't, he signed the death knell on his campaign. He voted for a pork-laden, completely ineffective bill that will do nothing to solve the problem they caused by their fear-mongering.
The Pelosi Nightmare will whip the vote, add pork, threaten their won side until they get enough votes to pass the bill. When its done, what will they have to say? They will be able to say that they are in sync with George Bush! WOW! Politics do make strange bed-fellows. It would have been better for McCain had he voted against it, but since he didn't, he signed the death knell on his campaign. He voted for a pork-laden, completely ineffective bill that will do nothing to solve the problem they caused by their fear-mongering.
VP Debate Results
OK now that's over and everyone is claiming victory, what do we make of it? Both sides are going to be waiting for the tracking polls to see if their side gets a bounce, and the rest of us normal people, not politicos, not belt-way mongers, not celebrities, know that the real winner wasn't America. In neither participant did I see someone that will put the best interests of America first.
Both were more interested in saying the right thing, or in Senator Biden's side, not saying the wrong thing. The VP candidates both said that they were the right people for the job, but failed to show how they would protect the American taxpayer since both the top ticket candidates voted for the EERA 2008 in the Senate. McCain particularly lost his "no-pork" position when he voted for the bill showing that when running for higher office, one's principles can be and usually are comprised.
Gov. Palin had a chance to show that she was against the pork-laden bill, but either was forced to take McCain's position showing that McCain can't handle opposition voices in his campaign or she also supports the ill-conceived HR 1424. He already know that Obama/Biden haven't met a big-government intrusion they didn't like.
Trust me, the market's in the US are going to be forever changed, and the losses in the market are going to show that over the next few weeks. This bill does nothing to restore the confidence that the fear-mongers from Capital Hill and Wall Street screamed at the top of their lungs. You shout long enough, the same message, and silence anyone else from saying anything different like Liz Claman on FBN does (she is visibly for it and did everything to talk it up), and you will get the results you are looking for from your audience. (See the Nazi's understanding of propaganda activities).
Neil Cavuto, unfortunately and usually a calm, cool head, also is running around saying the "sky is falling." Unbelievable. The markets will sell-off if the bills fails since the bill is mainly a bail-out of Wall Street idiots (read that investment banks and hedge funds) and those that have allowed them to do what they did to put us in this position.
America is doomed as soon as the US Government socializes its financial markets.
Both were more interested in saying the right thing, or in Senator Biden's side, not saying the wrong thing. The VP candidates both said that they were the right people for the job, but failed to show how they would protect the American taxpayer since both the top ticket candidates voted for the EERA 2008 in the Senate. McCain particularly lost his "no-pork" position when he voted for the bill showing that when running for higher office, one's principles can be and usually are comprised.
Gov. Palin had a chance to show that she was against the pork-laden bill, but either was forced to take McCain's position showing that McCain can't handle opposition voices in his campaign or she also supports the ill-conceived HR 1424. He already know that Obama/Biden haven't met a big-government intrusion they didn't like.
Trust me, the market's in the US are going to be forever changed, and the losses in the market are going to show that over the next few weeks. This bill does nothing to restore the confidence that the fear-mongers from Capital Hill and Wall Street screamed at the top of their lungs. You shout long enough, the same message, and silence anyone else from saying anything different like Liz Claman on FBN does (she is visibly for it and did everything to talk it up), and you will get the results you are looking for from your audience. (See the Nazi's understanding of propaganda activities).
Neil Cavuto, unfortunately and usually a calm, cool head, also is running around saying the "sky is falling." Unbelievable. The markets will sell-off if the bills fails since the bill is mainly a bail-out of Wall Street idiots (read that investment banks and hedge funds) and those that have allowed them to do what they did to put us in this position.
America is doomed as soon as the US Government socializes its financial markets.
Thursday, October 2, 2008
2008 Election Predictions
So I am making this prediction: Senator Obama will be the next US President, and the Senate will become close if not a filibuster-proof body for the Democrats. With that control of the government, thanks in most part to the Republican party destroyer, Bush 43, the Democrats will take the USA to a European-style socialistic government format within the 8 years of Obama's Presidential terms.
Those that don't want it will in fact fall in line when they see that "if you can't beat 'em, join em" philosophy.
Those that don't want it will in fact fall in line when they see that "if you can't beat 'em, join em" philosophy.
The V P Debate Tonight
Tonight, October 2, 2008 at 2100, the 2 VP candidates will meet in a debate in St. Louis. The outcome will be either a slam-dunk for Senator Biden, or if Gov. Palin stays true to herself, she will hold her own and win back the votes for her side of the ticket. Either way, I believe that due to Senator McCain's support for the EERA 2008 so laden with pork, he has now lost the election so it will not make any difference if she wins or loses.
At least Alaska will get an excellent governor back for 2 more years.
At least Alaska will get an excellent governor back for 2 more years.
Market Dumps on Senate Passage of HR 1424
Well, I think you are beginning to see the ramifications of this now pork-laden EERA 2008 coming out of the US Senate. They added billions of dollars of pork on top of the 700 BILLION bail-out funds showing again that Congress does not care one bit about their constituents. The only way they will hear you is to vote them out come November; however, it will not happen since most American have gone to sleep or worse, are wanting to feed at the Government trough. America is doomed, and it is beyond any rescue by either Congress or its citizens.
AMERICA IS DOOMED, and will reap the fruits of its weakening character, lack of resolve, or discipline.
Good Night, America, your enemies are cheering tonight.
AMERICA IS DOOMED, and will reap the fruits of its weakening character, lack of resolve, or discipline.
Good Night, America, your enemies are cheering tonight.
Unintended consequences!
This EESA 2008 (H.R. 1424) as it is now called will be the mother of all purveyors of "the law of unintended consequences!" The social engineering of the CRA (do your homework DYH) by the Clinton Administration, the packaging of these toxic mortgages by Wall Street into CDOs and SIVs (DYH), addition of "insurance" CDS (credit default swaps) by AIG-types to gain AAA ratings, and then sold to all sort of pension funds, municipalities and foreign investors, and worse to US GSE (DYH), and the, piece de resistance, the Mark-to-Market rule (FASB Rule 157) as the ultimate proof of the US Government's support of the "law of unintended consequences" to try and fix the Clinton's Enron debacle.
If none of this makes sense then Google, Google, and more Google and then go to Wikipedia for most of these acronyms. The time line is very clear and all you have to do is follow the money from those doing the deeds to those that should have been watching over the deeds, and you will see why this problem occurred in the first place. It started with social engineering of the financial system as an attempt to transfer wealth from producers to consumers.
When the Ponzi-scheme came down due to real estate prices resetting and interest rates rising, there was no where to run and hide as the insured (buyers of the CDS) came to the insurers (sellers of CDS) for their protection pay-out. This caused the demise of Bear Sterns, Fannie-Mae, Freddie-Mac, Lehman Brothers, etc, and it is not over yet. Note the stock market continues to dump even after the EESA 2008 passed in the US Senate.
We are just going to see the world financial meltdown continue since this Bill will not fix the problems, but only exacerbate it beyond measure. This will require more government intervention and further regulation to where the US financial system becomes totally socialized. Remember, once risk is socialized, the government is going to want the profits as well.
C'est la vie, USA, your financial future has been damaged beyond repair it would appear.
If none of this makes sense then Google, Google, and more Google and then go to Wikipedia for most of these acronyms. The time line is very clear and all you have to do is follow the money from those doing the deeds to those that should have been watching over the deeds, and you will see why this problem occurred in the first place. It started with social engineering of the financial system as an attempt to transfer wealth from producers to consumers.
When the Ponzi-scheme came down due to real estate prices resetting and interest rates rising, there was no where to run and hide as the insured (buyers of the CDS) came to the insurers (sellers of CDS) for their protection pay-out. This caused the demise of Bear Sterns, Fannie-Mae, Freddie-Mac, Lehman Brothers, etc, and it is not over yet. Note the stock market continues to dump even after the EESA 2008 passed in the US Senate.
We are just going to see the world financial meltdown continue since this Bill will not fix the problems, but only exacerbate it beyond measure. This will require more government intervention and further regulation to where the US financial system becomes totally socialized. Remember, once risk is socialized, the government is going to want the profits as well.
C'est la vie, USA, your financial future has been damaged beyond repair it would appear.
All Debts are Off!
With the action of the US Senate in passing HR 1424 (EESA 2008) and under the 14th Amendment (Equal Protection Clause) all Americans can now have their debts ameliorated by the US Governments. Just send the bills to the USA. Since the 14th Amendment protects all as in "All Men are Created Equal..." we now have the means to which the US Government can be on the hook for your debts and bad financial decisions.
I hope that some smart lawyer will now do a class-action suit and use this argument which is better than many I have seen that win millions for their plaintiffs. Go USA! What a crock!
I hope that some smart lawyer will now do a class-action suit and use this argument which is better than many I have seen that win millions for their plaintiffs. Go USA! What a crock!
Chickens will come home soon...
If you think this is going to fix the problem, you do no know anything about financial markets. The markets will continue to tank as the full burden of the $700 Billion dollars become $1 Trillion and then $2 Trillion before this mess is done. The US Government has now done what it has openly chastised other countries in doing: nationalizing their markets. The US Government with the help of Wall Street has taken down the last free-enterprise mechanism in the USA: its open, free functioning financial markets.
This bill and all its unintended consequences will come home to roost sooner rather than later. Bush 43 will go down as the driver of this move towards socialization and when the USA is in taters with all its enemies shouting and cheering, remember it started with this bill.
This bill and all its unintended consequences will come home to roost sooner rather than later. Bush 43 will go down as the driver of this move towards socialization and when the USA is in taters with all its enemies shouting and cheering, remember it started with this bill.
Woe is the USA!
Well it has happened! With the urging of all the Wall Street losers and cheaters, the financial media like FBN and CNBC (that should tell FBN something), and the politicos in WDC, the Senate passed the biggest step towards socializing America ever done by the US Government. The people have now given over the last bastion of freedom to their government because they were scared into it.
Franklin's warning about security and freedom was never more needed today as the USA ceased to be a free-market capitalistic environment with the passage of the EESA of 2008 (H.R. 1424) by the US Senate . Now under the US Constitution everyone with debts and financial problems can expect to be bailed out (Look up Equal Protection under the 14th Amendment and the Commerce Clause of Article 1, Section 8, Clause 3). We can all send our financial woes to Washington.
Woe is the USA, the last guardian of free enterprise taken down by fear, greed, and lazy thinking.
Franklin's warning about security and freedom was never more needed today as the USA ceased to be a free-market capitalistic environment with the passage of the EESA of 2008 (H.R. 1424) by the US Senate . Now under the US Constitution everyone with debts and financial problems can expect to be bailed out (Look up Equal Protection under the 14th Amendment and the Commerce Clause of Article 1, Section 8, Clause 3). We can all send our financial woes to Washington.
Woe is the USA, the last guardian of free enterprise taken down by fear, greed, and lazy thinking.
Sunday, September 28, 2008
Financial Bailouts Spells end for America
Listening to all the bullsh*t that is coming out of WDC (Washington, DC) these past week about how we have to bail out the Wall Street and Political idiots that got us into this financial mess just made me understand that America truly can not be fixed.
I have decided that regardless of who gets into the White House in the fall, I will take my citizenship elsewhere since I can not longer support how this country is going and how the politicos in charge of the US Government are screwing things up.
This current financial mess got started by 3 very stupid governmental interventions into the free market mechanisms of our financial infrastructures:
1. The revocation of the Glass-Steagall Act in 1999 by the Clinton Administration
2. Implementation of the Sarbanes-Oxely requirements particuarly the FASB rule 157: "mark to market"
3. The change in CRA loan approval requirements by the Clinton Administration and implemented by Franklin Raines of the now nationalized Fannie-Mae.
If none of these three things mean anything to you then you are ignorant of what is happening today and you need to do your homework before taking part in any discussion of current events. Back tracking through the 3 event above will lead you to the basis for all the financial woes we are experiencing today.
I will help you with the probably the toughest link: #3
When the CRA (community reinvestment act) requirements for community banks to show that they are not red-lining (using a red pen to disapprove loans) lower income, minority applicants, banks were told that they had to lower their lending standards to cover those that could not qualify for a loan otherwise. This began during the Clinton Administration and continued into the Bush Administration under the watchful eye of Franklin Raines, the head of Fannie-Mae from 1998-2004, and who walked away with over $115,000/month pension for life plus full medical and dental benefits. Yes, that's 115K per month, not year!
Now the next step is to follow Franklin onto the Obama Campaign since BHO (Barack Hussein Obama) received over $400,000 from Fannie&Freddie in the few years he was a sitting senator, and not running for the Presidency. Seems like BHO has some vested interest in keeping Fannie&Freddie from being more regulated, eh?
The real crime is that once the CRA rules were lowered, and the loans to those people who were not qualified began to come in fast and furious during the Alan Greenspan 1% interest rate dips (this is where the real sub-prime mortgage crisis got started), it was Wall Street that found a way to make money on them. Simply take the "toxic paper" (real interesting name) and bundle them with some decent loans and call them CDO (collateralized debt obligations) and to make them AAA rated, develop another derivative instrument called a CDS (credit default swap). Since pension plans and municipalities can't invest in anything but AAA, then the CDS where the real work of genius by Wall Street MBAs. Simply, a CDS is a private bet (that everyone in the Bush administration didn't want to regulate) between the buyer (the one buying the CDO) and the seller (those insuring against the default of the CDO) that for the buyer paying an annual premium, the seller would guarantee against CDO default. This is were AIG, Bear Sterns, and Lehman Brothers come in. They were the biggest sellers of these CDS which now according to the International Banking Organization total over 600 Trillion!
When the US real estate market began to fail due to rising interest rates and all the sub-prime mortgages now having to reset, the buyers of the CDOs came to the sellers of the CDS and demanded their money for the default of the AAA rating on these now toxic CDOs. Well, there wasn't enough money on the planet to cover these insurance bets and then whole process (the house of cards) can tumbling down.
I will let you work out the rest of the linkages, but they are not the hard. They have to do with the ones that are writing the bail out on Capital Hill: Senator Dodd and Congressman B. Franks. Look into their contributions from both Fannie and Freddie to get an idea why they want to bail out these financial organizations.
Predictions: this bail out will NOT work as the total amount of the toxic paper (interesting epitaph) is not known and what the bail out bill does to setup the process of implementation is just silly. The Treasury Dept is going to hire "competent money managers" to oversea the purchase of these assets, and these managers are the same ones that got us into this mess: they are from Wall Street!!! Can anyone spell CRAZY? Then the US Government is going to conduct a reverse auction where they will be the only party and if no one else bids, then the taxpayer becomes the owner of these assets.
Secondly, the bill does not cancel the golden parachutes of the Wall Street CEO's that are already written, only future contracts! This means that all those that aren't out now are the suckers ;-) CEOs like Franklin Raines is safe with his 1.5 million per year pension and those from the now de funk Bear Sterns, Fannie, Freddie, Lehman Brothers, Merrill, etc are safe. What a shell game, eh?
This is the end of the USA, folks. The terrorists couldn't take us down with their military activities, but we will be taken to the wood shed by our own financial and political types whose "need for greed and power" will put the USA into the category of "has-been". The end of mankind will be written without the USA in attendance.
American has finally stepped on to the one land mine that could take it out, and the idiots in Washington are going to be fiddling while America burns to the cheers of the radical fascists around the world. Sad, so sad.
I have decided that regardless of who gets into the White House in the fall, I will take my citizenship elsewhere since I can not longer support how this country is going and how the politicos in charge of the US Government are screwing things up.
This current financial mess got started by 3 very stupid governmental interventions into the free market mechanisms of our financial infrastructures:
1. The revocation of the Glass-Steagall Act in 1999 by the Clinton Administration
2. Implementation of the Sarbanes-Oxely requirements particuarly the FASB rule 157: "mark to market"
3. The change in CRA loan approval requirements by the Clinton Administration and implemented by Franklin Raines of the now nationalized Fannie-Mae.
If none of these three things mean anything to you then you are ignorant of what is happening today and you need to do your homework before taking part in any discussion of current events. Back tracking through the 3 event above will lead you to the basis for all the financial woes we are experiencing today.
I will help you with the probably the toughest link: #3
When the CRA (community reinvestment act) requirements for community banks to show that they are not red-lining (using a red pen to disapprove loans) lower income, minority applicants, banks were told that they had to lower their lending standards to cover those that could not qualify for a loan otherwise. This began during the Clinton Administration and continued into the Bush Administration under the watchful eye of Franklin Raines, the head of Fannie-Mae from 1998-2004, and who walked away with over $115,000/month pension for life plus full medical and dental benefits. Yes, that's 115K per month, not year!
Now the next step is to follow Franklin onto the Obama Campaign since BHO (Barack Hussein Obama) received over $400,000 from Fannie&Freddie in the few years he was a sitting senator, and not running for the Presidency. Seems like BHO has some vested interest in keeping Fannie&Freddie from being more regulated, eh?
The real crime is that once the CRA rules were lowered, and the loans to those people who were not qualified began to come in fast and furious during the Alan Greenspan 1% interest rate dips (this is where the real sub-prime mortgage crisis got started), it was Wall Street that found a way to make money on them. Simply take the "toxic paper" (real interesting name) and bundle them with some decent loans and call them CDO (collateralized debt obligations) and to make them AAA rated, develop another derivative instrument called a CDS (credit default swap). Since pension plans and municipalities can't invest in anything but AAA, then the CDS where the real work of genius by Wall Street MBAs. Simply, a CDS is a private bet (that everyone in the Bush administration didn't want to regulate) between the buyer (the one buying the CDO) and the seller (those insuring against the default of the CDO) that for the buyer paying an annual premium, the seller would guarantee against CDO default. This is were AIG, Bear Sterns, and Lehman Brothers come in. They were the biggest sellers of these CDS which now according to the International Banking Organization total over 600 Trillion!
When the US real estate market began to fail due to rising interest rates and all the sub-prime mortgages now having to reset, the buyers of the CDOs came to the sellers of the CDS and demanded their money for the default of the AAA rating on these now toxic CDOs. Well, there wasn't enough money on the planet to cover these insurance bets and then whole process (the house of cards) can tumbling down.
I will let you work out the rest of the linkages, but they are not the hard. They have to do with the ones that are writing the bail out on Capital Hill: Senator Dodd and Congressman B. Franks. Look into their contributions from both Fannie and Freddie to get an idea why they want to bail out these financial organizations.
Predictions: this bail out will NOT work as the total amount of the toxic paper (interesting epitaph) is not known and what the bail out bill does to setup the process of implementation is just silly. The Treasury Dept is going to hire "competent money managers" to oversea the purchase of these assets, and these managers are the same ones that got us into this mess: they are from Wall Street!!! Can anyone spell CRAZY? Then the US Government is going to conduct a reverse auction where they will be the only party and if no one else bids, then the taxpayer becomes the owner of these assets.
Secondly, the bill does not cancel the golden parachutes of the Wall Street CEO's that are already written, only future contracts! This means that all those that aren't out now are the suckers ;-) CEOs like Franklin Raines is safe with his 1.5 million per year pension and those from the now de funk Bear Sterns, Fannie, Freddie, Lehman Brothers, Merrill, etc are safe. What a shell game, eh?
This is the end of the USA, folks. The terrorists couldn't take us down with their military activities, but we will be taken to the wood shed by our own financial and political types whose "need for greed and power" will put the USA into the category of "has-been". The end of mankind will be written without the USA in attendance.
American has finally stepped on to the one land mine that could take it out, and the idiots in Washington are going to be fiddling while America burns to the cheers of the radical fascists around the world. Sad, so sad.
Saturday, September 20, 2008
Americ CAN'T be Fixed!
I know that its been awhile since I have blogged anything about fixing America, but after the financial crisis and how both sides (Democrats and Republicans) are attacking each other without caring about how this will impact the future of this country, I have reached one conclusion:
America can not be fixed! American is headed for destruction based on its own greed, apathy and lack of real statesmen and women to step forward and come up with viable solutions. All we are left with are the screeching banshees like Speaker Pelosi and Hillary Clinton, the inept like President Bush (yes, I said President Bush since most of the financial crisis can be laid at his administration's feet), and the greedy like Wall Street Investment bankers, commercial bankers' and the unbelievable crop of Ivy League-trained MBA's that think the only code of ethics is how much money can they make for their next bonus.
To be specific this whole mess which is where the US will finally be taken down was born in the 80's when the deregulation of the S&L industry (savings and loan industry) led to the huge S&L debacle. One lesson that we must understand is that while capitalism is the best system on the planet since it rewards personal initiative and industry, it does come with one major flaw: it breeds the seeds of its own destruction - greed. This is where government can be useful since a pure "laissez-faire" capitalistic system is unworkable in much the same way a pure "Marxian-Socialist" socio-economic form of association fails. Both forms of socio-economic arrangements fail to take into account the one thing that damns them both: human nature. The "laissez-faire" formation ignores the greed and power element of human nature while the "Marxian-Socialists" ignore the power and laziness of human nature.
By ignoring these inherent limitations of the human spirit, both infrastructures while workable for a small period of time sow the seeds of their own destruction without some intervention of government. The "Marxian-Socialists" dissipate much earlier since laziness and apathy is much harder to overcome than greed, but ultimately both systems will implode.
We have seen this in the demise of the Soviet Union in the late 1980's and we are now seeing the seeds of the destruction of the US: greed. The 1929 stock market crash was the first ripple in the pond and that expanded into the Vietnam War (done primarily for the financial enhancement of LBJ's Texas buddies), the 1980 S&L crisis, numerous commercial bailouts of bad management and companies (airlines, Chrysler, aircraft manufactures, hedge funds, and now Wall Street). The US taxpayer is now on tap for over 2 Trillion (that's 2 million million) dollars to bail out the Wall Street investment and mortgage banks because we are told they are "too big to fail". We are going to bail-out those that over-bought, over-sold, over-reached, over-risked, and then cry to the government to "bail them out" with taxpayer funds, and worse, the government does it in spades. The action of the US Government will have a ton of consequences that can not be seen at this time, but I suggest that this will not solve the problem they think it will. There is over $650 Trillion (that's right, the big T) US dollars of derivatives on the books of the world's financial organization for which there is no way to deleverage or unwind. The US real estate crisis that led to the US financial crisis is just the beginning: both were formed in the human cesspool of GREED.
America is doomed and there is nothing that can be done to stop the slide into complete ruination regardless of which candidate enters the White House in January. The corruption and completely dysfunctional Congress led by the totally inept and bungling Nancy Pelosi and Harry Reid (lowest approval rating in history - 9%) has failed in all respects to address the country's needs while the current President Bush appears to have very little clue about how to even suggest repairs and is only hoping for a quick end to his sad, and mismanaged 8 years a President.
I am not a partisan only a sadly, once proud American that can no longer be such. The US can not be saved, and I for one do not want to remain while its citizens continue to fight over "lipstick on a pig" or the nightly political trash on the Fox New channels and left-wing broadcast news shows. We have outlived our usefulness on this planet and its time for the US to fade away and let the world spin down on its own.
The best days of the US are behind it when its citizens believed that there was an American dream; now there is just "how can I scam the system?" or "how can I get mine, screw the consequences?" Americans don't care about each other, the world of the future. We have truly, as Lincoln bemoaned, become a "house divided against itself". We are in the midst of another civil war, one of thoughts, slogans and issues, not guns, canon or picket lines, but nevertheless, one from which we will not survive.
We will leave the world a void from which it will not emerge since the fanatics and zealots will soon bring down the remainder of the intelligence left on this little ball in space. From the void if anyone is watching, they must be truly either laughing or puzzled how we could choose to make such moronic decisions and take such fruitless paths, but we have done it in spades.
I am sorry that American can't be fixed, but I am never one to "beat a dead horse", and the US has finally become the proverbial expired equine. It is time to "bring out the dead" and move on. Lower the Stars and Stripes and make way for the final act: we have done it to ourselves.
America can not be fixed! American is headed for destruction based on its own greed, apathy and lack of real statesmen and women to step forward and come up with viable solutions. All we are left with are the screeching banshees like Speaker Pelosi and Hillary Clinton, the inept like President Bush (yes, I said President Bush since most of the financial crisis can be laid at his administration's feet), and the greedy like Wall Street Investment bankers, commercial bankers' and the unbelievable crop of Ivy League-trained MBA's that think the only code of ethics is how much money can they make for their next bonus.
To be specific this whole mess which is where the US will finally be taken down was born in the 80's when the deregulation of the S&L industry (savings and loan industry) led to the huge S&L debacle. One lesson that we must understand is that while capitalism is the best system on the planet since it rewards personal initiative and industry, it does come with one major flaw: it breeds the seeds of its own destruction - greed. This is where government can be useful since a pure "laissez-faire" capitalistic system is unworkable in much the same way a pure "Marxian-Socialist" socio-economic form of association fails. Both forms of socio-economic arrangements fail to take into account the one thing that damns them both: human nature. The "laissez-faire" formation ignores the greed and power element of human nature while the "Marxian-Socialists" ignore the power and laziness of human nature.
By ignoring these inherent limitations of the human spirit, both infrastructures while workable for a small period of time sow the seeds of their own destruction without some intervention of government. The "Marxian-Socialists" dissipate much earlier since laziness and apathy is much harder to overcome than greed, but ultimately both systems will implode.
We have seen this in the demise of the Soviet Union in the late 1980's and we are now seeing the seeds of the destruction of the US: greed. The 1929 stock market crash was the first ripple in the pond and that expanded into the Vietnam War (done primarily for the financial enhancement of LBJ's Texas buddies), the 1980 S&L crisis, numerous commercial bailouts of bad management and companies (airlines, Chrysler, aircraft manufactures, hedge funds, and now Wall Street). The US taxpayer is now on tap for over 2 Trillion (that's 2 million million) dollars to bail out the Wall Street investment and mortgage banks because we are told they are "too big to fail". We are going to bail-out those that over-bought, over-sold, over-reached, over-risked, and then cry to the government to "bail them out" with taxpayer funds, and worse, the government does it in spades. The action of the US Government will have a ton of consequences that can not be seen at this time, but I suggest that this will not solve the problem they think it will. There is over $650 Trillion (that's right, the big T) US dollars of derivatives on the books of the world's financial organization for which there is no way to deleverage or unwind. The US real estate crisis that led to the US financial crisis is just the beginning: both were formed in the human cesspool of GREED.
America is doomed and there is nothing that can be done to stop the slide into complete ruination regardless of which candidate enters the White House in January. The corruption and completely dysfunctional Congress led by the totally inept and bungling Nancy Pelosi and Harry Reid (lowest approval rating in history - 9%) has failed in all respects to address the country's needs while the current President Bush appears to have very little clue about how to even suggest repairs and is only hoping for a quick end to his sad, and mismanaged 8 years a President.
I am not a partisan only a sadly, once proud American that can no longer be such. The US can not be saved, and I for one do not want to remain while its citizens continue to fight over "lipstick on a pig" or the nightly political trash on the Fox New channels and left-wing broadcast news shows. We have outlived our usefulness on this planet and its time for the US to fade away and let the world spin down on its own.
The best days of the US are behind it when its citizens believed that there was an American dream; now there is just "how can I scam the system?" or "how can I get mine, screw the consequences?" Americans don't care about each other, the world of the future. We have truly, as Lincoln bemoaned, become a "house divided against itself". We are in the midst of another civil war, one of thoughts, slogans and issues, not guns, canon or picket lines, but nevertheless, one from which we will not survive.
We will leave the world a void from which it will not emerge since the fanatics and zealots will soon bring down the remainder of the intelligence left on this little ball in space. From the void if anyone is watching, they must be truly either laughing or puzzled how we could choose to make such moronic decisions and take such fruitless paths, but we have done it in spades.
I am sorry that American can't be fixed, but I am never one to "beat a dead horse", and the US has finally become the proverbial expired equine. It is time to "bring out the dead" and move on. Lower the Stars and Stripes and make way for the final act: we have done it to ourselves.
Wednesday, June 11, 2008
Energy Independence NOW!
With gas approaching the $5.00/gallon faster than anyone expected, and the Iranian Government thinking that they can wreck the US economy and thereby take the US down where it is unable to do that militarily, the lack of action by the US government should be a topic of discussion by any concerned citizen. The US Government and "We the People" that elected them have wasted the last 35 years from the 1973 "First Oil Embargo" oil shock when we should have been looking for solutions like we did during the 1960's "Space Race" to the moon. On May 25, 1961, JFK galvanized the country by his mandate to "...before this decade is out, of landing a man on the moon and returning him safely to the Earth.".
It appears, We lack the moral fortitude and integrity to come together as a nation and solve this very dangerous, and possibly "life style ending" problem. Never before has the US faced a problem that so completely impacts all aspects of our life and national well-being. Energy is at the heart of our economy and standing. However, we not only face the problem of being oil-addicted, but we are being beset by both "enemies both foreign and domestic". Is there a solution? Of course, but it will take some very heavy sacrifice and unity: without either, the US is destined to become another 3rd world country.
First, we have to admit that we as a country must become energy independent. As a systems engineer, I am not going to argue to merits of drilling, alternative energies, green-power, etc. These discussions are fruitless in reaching our goal of becoming EI: energy independent. We are past the point of partisanship or environmental agendas. If we don't become EI then it will not matter which party is in power nor will it matter if everyone goes green: the US will not be around to impact anyone with anything.
The only way for the political parties to continue or the green movement to continue is for the US to continue! It's that simple, and it's that powerful. We have to put away our divisions and realize that neither the Dems or Repubs, conservatives or liberals, energy-friendly or eco-friendly will be around to push any of their agendas. We are on the Titanic, folks, and it matters not if the right side or the left side is the correct side: the ship is going down! Both sides will soon be under water if we don't get the guts to act and act right.
My next few blogs will begin to lay out a solution to the EI problem we now face. It can be done and it can begin to show IMMEDIATE results, not 5-10 years in the future, but like right now. Here is a short lists of the topics that we can begin to start implementing:
1. The Congress must pass a comprehensive EI bill that uses EVERYTHING in our energy arsenal: drilling, clean coal, nuclear, conservation, innovation and alternative energies that are energy creating, not energy wasting.
2. Conservation: the quickest way to impact our current situation and send a message to OPEC that will produce immediate results in the price of oil
3. Drilling & exploration: it is the height of hypocrisy to ask the OPEC nations to supply more when we are unwilling to do the same here at home
4. Nuclear: the ultimate eco-friendly energy source now that the twin problems of nuclear accidents and waste by-products have been solved.
5. Clean coal: we have 3X the amount of energy in coal that currently exists in all the oil fields of the world; we simply need to innovate its use to be more eco-friendly.
6. Innovation: fuel cells are the ultimate solution to our transportation problems while HESC (high-efficiency solar conversation) cells is the ultimate solution to our electrical energy problems. If we can send a motorized rover to Mars and control its actions, we can develop both of these technologies within 10 years. Via la JFK!
7. Energy smart, not energy stupid: develop only sources of energy that create MORE energy then is expended to produce the energy source. Solar, wind, and hydro-electric are and can be energy smart; current bio-fuels are energy stupid since they require more oil-based energy to create then they produce. Be smart, not PC!
Come back over the next few weeks as we lay out these solutions in detail as to how they can solve this pressing and current danger to the USA.
Nanouk
It appears, We lack the moral fortitude and integrity to come together as a nation and solve this very dangerous, and possibly "life style ending" problem. Never before has the US faced a problem that so completely impacts all aspects of our life and national well-being. Energy is at the heart of our economy and standing. However, we not only face the problem of being oil-addicted, but we are being beset by both "enemies both foreign and domestic". Is there a solution? Of course, but it will take some very heavy sacrifice and unity: without either, the US is destined to become another 3rd world country.
First, we have to admit that we as a country must become energy independent. As a systems engineer, I am not going to argue to merits of drilling, alternative energies, green-power, etc. These discussions are fruitless in reaching our goal of becoming EI: energy independent. We are past the point of partisanship or environmental agendas. If we don't become EI then it will not matter which party is in power nor will it matter if everyone goes green: the US will not be around to impact anyone with anything.
The only way for the political parties to continue or the green movement to continue is for the US to continue! It's that simple, and it's that powerful. We have to put away our divisions and realize that neither the Dems or Repubs, conservatives or liberals, energy-friendly or eco-friendly will be around to push any of their agendas. We are on the Titanic, folks, and it matters not if the right side or the left side is the correct side: the ship is going down! Both sides will soon be under water if we don't get the guts to act and act right.
My next few blogs will begin to lay out a solution to the EI problem we now face. It can be done and it can begin to show IMMEDIATE results, not 5-10 years in the future, but like right now. Here is a short lists of the topics that we can begin to start implementing:
1. The Congress must pass a comprehensive EI bill that uses EVERYTHING in our energy arsenal: drilling, clean coal, nuclear, conservation, innovation and alternative energies that are energy creating, not energy wasting.
2. Conservation: the quickest way to impact our current situation and send a message to OPEC that will produce immediate results in the price of oil
3. Drilling & exploration: it is the height of hypocrisy to ask the OPEC nations to supply more when we are unwilling to do the same here at home
4. Nuclear: the ultimate eco-friendly energy source now that the twin problems of nuclear accidents and waste by-products have been solved.
5. Clean coal: we have 3X the amount of energy in coal that currently exists in all the oil fields of the world; we simply need to innovate its use to be more eco-friendly.
6. Innovation: fuel cells are the ultimate solution to our transportation problems while HESC (high-efficiency solar conversation) cells is the ultimate solution to our electrical energy problems. If we can send a motorized rover to Mars and control its actions, we can develop both of these technologies within 10 years. Via la JFK!
7. Energy smart, not energy stupid: develop only sources of energy that create MORE energy then is expended to produce the energy source. Solar, wind, and hydro-electric are and can be energy smart; current bio-fuels are energy stupid since they require more oil-based energy to create then they produce. Be smart, not PC!
Come back over the next few weeks as we lay out these solutions in detail as to how they can solve this pressing and current danger to the USA.
Nanouk
Tuesday, June 3, 2008
Hollywood Spin on Climate Hysteria
OK, I think I have seen the ultimate Hollywood spin on global warming with some of the new Sci Fi channel made for TV movies such as the very loosely aligned with the Crichton book, The Andromeda Strain, and some the recent alien-oriented movies that tie global warming to aliens. Whew! I thought I had seen everything, but to now say that global warming is the fault of an alien infection while Michael Crichton's excellent science fiction book has been very loosely interpreted to include the future is sending back a warning about destroying the planet (see the plot of Star Trek IV) by eliminating the one thing needed to save the future, and the very off-handed token gay reference (Rick Schroder) character "don't ask, don't tell".
Has it come down to the point that everything coming out of Hollywood must now be spun to include dealing with political and sociological of the decade. These very brief, but blatant reference or inclusions of such topics only show the intentions of the writers, producers and directors of these recent remakes. I would much rather see new plots, new movies with these current topics included as part of the present landscape then going back and trying to do an almost revisionist construction of past classics.
Why are writers today so limited in their capabilities that the only thing coming out of Hollywood are remakes and remakes that try to include these hot social issues of the left-leaning Hollywood crowd?
Also, I just wish that the Hollywood crowd that mouth off about "if so-and-so gets elected I'm leaving the US" would in fact do so. It was interesting to hear Babs and one of the Baldwin brothers who said very similar things about the 2004 re-election of GWBush. I guess that these actors, now including Susan Sarandon., don't consider their word or statement of much value, so why should we consider what they with any more validity?
Remember, America can be fixed, but it will take some very dedicated people caring about the future of this country. The next few blogs will be about how to fix the energy problem now facing the country.
Have a good one.
Has it come down to the point that everything coming out of Hollywood must now be spun to include dealing with political and sociological of the decade. These very brief, but blatant reference or inclusions of such topics only show the intentions of the writers, producers and directors of these recent remakes. I would much rather see new plots, new movies with these current topics included as part of the present landscape then going back and trying to do an almost revisionist construction of past classics.
Why are writers today so limited in their capabilities that the only thing coming out of Hollywood are remakes and remakes that try to include these hot social issues of the left-leaning Hollywood crowd?
Also, I just wish that the Hollywood crowd that mouth off about "if so-and-so gets elected I'm leaving the US" would in fact do so. It was interesting to hear Babs and one of the Baldwin brothers who said very similar things about the 2004 re-election of GWBush. I guess that these actors, now including Susan Sarandon., don't consider their word or statement of much value, so why should we consider what they with any more validity?
Remember, America can be fixed, but it will take some very dedicated people caring about the future of this country. The next few blogs will be about how to fix the energy problem now facing the country.
Have a good one.
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