Sep

29

After the House vote NO 228 to 205. In the no vote are 95 Democrats and 133 Republicans.

Our economic engine runs on faith not math! I believe the markets reaction to the vote tells the story. Our government needs to acquire assets and begin restoring faith back into the markets and with the people. 

We need a sane solution. I think we had one on the table.

Who voted no? Here is the post from http://www.govtrack.us/

“All we have on the economic stimulous bill is the failed vote to pass it. We’ll have more info here as soon as it’s posted on the government website THOMAS, maybe tomorrow. If that’s not fast enough, tell your representative that the Library of Congress needs the funding and a mandate to enter the 21st century for legislative information.”

INCREDIBLE!!!

Warren Buffett supported the Bill and told CNBC the bill was “the right thing” for Congress to do, calling the current crisis an “economic Pearl Harbor.”

Let’s pull our heads out people.

 

Sep

27

Getting the deal done by Friday was never required. The fact that the government has stepped in and is going to be a (hopefully sane and rational) part of the solution was enough to calm the institutional investors from the erratic trading that is happening in the market.

Much of the media has actually attributed the wild wall street ride to investors, implying that it is you and I that are causing the massive swings. It is actually the institutional investors (mutual fund managers, insurance companies, hedge funds, banks…yes banks) that are causing the current rollercoaster.

This should calm these big investors for awhile. What the government now needs to do is come up with a plan that includes these three critical elements

1) Buying stakes (through loans) in companies that have tangible assets and have a prayer at solvency. Figure out a viable solution for dealing with the Fannie Mae and Freddie Mac fiasco and the current housing crisis.

2) Begin investigations into corporate corruption (tough since they are in bed with many of these folks)

3) Begin to craft and implement sane, simple and enforceable controls that regulates (without stifling) and makes financial markets more transparent.

GET BUSY!!! Y’all have no business being out of session during this time.

Sep

27

Maybe it is just me but I am getting more and more disgusted with Fox news. It seems to have become a propaganda machine for the “Right”. Where is the objectivity?

I have started watching CNN more. While they clearly have a liberal bent they seem to try to be much more objective in their reporting. In particular I think Anderson Cooper’s 360 is an excellent venue from what little I have seen. The panel is engaging. They are able and willing to back up what they say with facts.

It is possible that I am becoming a liberal. But the real point is that news used to be without bias (as much is humanly possible). When did this change? Where is the objectivity in news these days? It is becoming harder and harder to be objective in this society and this is a large part of the reason. News has become about ratings and money. Sad. This needs to change.

Sep

27

I think McCain did a good job. I think he was articulate. What was interesting to me in watching this debate was not so much what they were saying (though this was very, very important). What was important was their demeanor and how they responded to others criticism of one another.

This is a time in our nations history when we really need a leader, someone with presence and poise in “the big chair”. I recall past debates and how folks like Dole and Mondale (and a host of others) tanked in the debates. Obama’s performance was strong.

Advantage Obama.

Sep

25

The bailout IS NOT our government giving business a check for nothing in return. This did not happen with the S&L debacle and given the number of watchdogs in both parties should not happen now. Even Bush is dealing with this matter (thus far) in a rationale way, though the current plan on the table sucks.

Our government would be MORONS to buy up assets at more than current market value. There are a few important points here y’all need to understand:

There are tangible assets (houses)  the government needs to acquire the paper on these and then proceed to liquidate (see previous blogs I did on this). The government should buy these at somewhere between current market value to 10% below current market value. The government is NOT our sugar daddy and business needs to bare the burden for their greed and incompetance.

There are financial assets on Wall street for sub prime paper that is essentially worthless. These represent portions of a number of large companies portfolios. The government needs to only assist those companies where the exposure is determined to be great enough to trigger a financial collapse of our markets. Buying these assets is a bad idea. Loans to these companies to keep them solvent and where there exists enough assets to actually expect repayment should happen.

One thing is for certain. Too much money is at stake here.  We need to get this right!

Sep

23

More ideas for the mortgage debt our government is taking on, on our behalf…whatever is decided these should be the ultimate goals for any plan

  • Discussion about golden parachutes and compensation for CEOs and Execs in this debacle are laughable, these people are culpable and need to be jailed not compensated. We need to start discussions on this.
  • Who cares about institutional or individual investor losses in these companies. Playing the market comes with risk. I myself own some bank stocks in my portfolio. I expect nothing in compensation and neither should any of you.
  • People flipping houses during this period made their money. If they lost money, too bad.
  • People applying for loans they knew they could not afford should not be considered. Caveat Emptor. For the most part they are not innocent. Ignorance is not an excuse either.

    • Here are some more ideas to deal with the huge house inventory currently in default…

  • To buyers still hanging on (very few) to their homes on balloon payments or ARM’s and making payment or at least trying, automatically convert their loans to current prime rate + 1%
  • For homes sitting empty offer these to qualified investors at at rates 2-3% less than the current prime. This will bring many investors (large and small) out of the woodwork

    • Sep

    23

    When I first read this I could not believe it???

    “Decisions by the Secretary pursuant to the authority of this Act are non reviewable and committed to agency discretion, and may not be reviewable by any court of law or any administrative agency.”

    Look, nothing against Henry Paulson, but I DONT THINK SO!!!!!

     

    Sep

    22

    Our goverment needs to bail our Fannie Mae and Freddie Mac. Why? Because some greedy people decided that lending money like candy to people without checking their credit was a stellar business idea.

    Banks and lenders are now actually giving loans again based on sound business principles, namely the ability of the borrower to repay the debt! Of course the govenment is now the proud owner of a great deal of homes that are just sitting. They need to figure out a way to deal with this inventory.

    In terms of selling them one is going to have to get creative. Mortgages over 30 years do not make financial sense to anyone other than the lender. Further they do not significantly lower the payment to be an option. Even with the market correcting downward these homes are still going to be a problem to find enough qualified buyers for. Maybe the government can come up with a program where they own some of the equity in the home in exchange for a lower payment? Just brain storming here…. 

    Sep

    20

    FORGET McCain

    September 20, 2008 | 1 Comment

    Though disgusted with the incumbant party I was giving McCain as much credence as Obama. No longer. His recent reaction and comments on the Feds bailout of the financial sector has sealed his fate and proved that he is clueless as to the shape of our economy, and more important, what to do to rectify it.

    A few quotes he made.

    McCain: ‘I would fire’ chairman of SEC over financial crisis…
    (A Few facts  regarding Cox: Supported the Sarbanes-Oxley Act of 2002, Counsel to former President Reagan)

    Maybe Cox deserves to be on the chopping block, but McCains reaction at a time when the Federal government is trying to stop a crisis in-flight is inappropriate. We can have the witch hunt later.

    On the Today show
    “No I do not believe the American taxpayer should be on the hook for AIG”

    And then he flipped 24-hours later… hear it with your own two ears…his words
    http://www.youtube.com/watch?v=xrEN58gcxIs

    Fact is, the Fed did not have much of a choice. Nowhere left to really go with interest rates. Bailing out the financial sector was a last and needed resort. Without doing this we would have seen a total and udder collapse in not only  our economy, but the world economy.

    Frankly if this does not work we are in for economic times that will make the great depression look like a chicken dinner at Grandma’s house on a nice sunny day.

    It is now time to regulate business in a sane and fair manner without impeding markets. McCain is opposed to this. Sorry, I thought I would make it through the debates before deciding. This independent is voting Obama.

    …Well to be fair if McCain (or Palin) can part the Mississippi river and walk across it between now and November I will change my mind.

    Another link to why McCain does not have what it takes to be our commander in chief.

    http://bravenewfilms.org/blog/39179-mccain-s-youtube-problem-just-became-a-nightmare

     

    Sep

    20

    Right above the floor I work on in downtown Seattle is a daycare play area. As I go through the stairwell I hear the pre-schooler lauging and having a good old time, not a care in the world. It often reminds me of how when we get older we lose our way for the things that are really important in life.

    — keep looking »

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