Interesting op-ed piece by moderate republican senator Olympia Snowe. She expresses concern that the party is becoming a place where moderates are not welcome. She describes it as a witch hunt of sorts where the republican party is trying to weed out the moderates because they are not "true republicans". Snowe points out that narrowing the litmus test is not the answer if you want to grow a political party.
http://www.nytimes.com/2009/04/29/opinion/29snowe.html?_r=1
Thursday, April 30, 2009
Friday, April 17, 2009
Is the bailout an inside job?
Been awhile since I last blogged. Life (even for someone without a job or children amazingly) can get in the way. I have heard much over the last couple of months about Wall Street firm Goldman Sachs and its connection to the bailout, AIG, etc. Seems like everyone running the show is a Goldman Sachs alum. Here is an article regarding how GS is actually benefiting from the financial mess.
http://pogoblog.typepad.com/pogo/2009/03/keeping-an-eye-on-the-goldman-sachs-prize.html
As this article mentions, GS (and the other counter parties of AIG) were paid 100 cents on the dollar for their toxic investments known as credit default swaps (CDS). If you don't know, CDS's are a financial investment vehicle and the primary reason why our financial industry (and economy for that matter) are in shambles. Think of a CDS like a mixed bag of investments carefully packaged and sold on the open market. In the bag are good investments such as a mortgage given to a credit worthy citizen, but mixed in with these good investments are "toxic assets" like mortgages from the subprime market. By mixing the good with the bad, the bad are covered up and disguised. As an uncle recently described, it is like ordering a really nice looking salad only to discover radioactive material in the bottom of the bowl. We have heard for months that these assets are junk and now worth pennies on the dollar as thousands of Americans have defaulted on their subprime (and not so subprime) home loans. So what does the American government do to help Goldman Sachs and others who knowingly took part in this risky investment? The Treasury, using taxpayer money, pays GS and others 100 cents on the dollar for these investments and justifies it by saying that the government had no power to impose a loss on these companies. Amazing. Simply amazing. This is big business socialism where corporate welfare is extended to protect Wall Street from loss using taxpayer dollars, but there is no share in the event of a gain for the American people. Clearly, the open market values these investments at much less than 100%. More like 20%. Now the American people have paid 100 cents on the dollar for investments that are worth only 20 cents. This seems like one big inside job by a bunch of Wall Street elites. Final score: Goldman Sachs 1, the American taxpayer 0.
From the "We have to laugh otherwise we would cry" department:
http://vodpod.com/watch/1531016-clusterfuk-to-the-poor-house-goldman-sachs-connections-the-daily-show-comedy-central
http://pogoblog.typepad.com/pogo/2009/03/keeping-an-eye-on-the-goldman-sachs-prize.html
As this article mentions, GS (and the other counter parties of AIG) were paid 100 cents on the dollar for their toxic investments known as credit default swaps (CDS). If you don't know, CDS's are a financial investment vehicle and the primary reason why our financial industry (and economy for that matter) are in shambles. Think of a CDS like a mixed bag of investments carefully packaged and sold on the open market. In the bag are good investments such as a mortgage given to a credit worthy citizen, but mixed in with these good investments are "toxic assets" like mortgages from the subprime market. By mixing the good with the bad, the bad are covered up and disguised. As an uncle recently described, it is like ordering a really nice looking salad only to discover radioactive material in the bottom of the bowl. We have heard for months that these assets are junk and now worth pennies on the dollar as thousands of Americans have defaulted on their subprime (and not so subprime) home loans. So what does the American government do to help Goldman Sachs and others who knowingly took part in this risky investment? The Treasury, using taxpayer money, pays GS and others 100 cents on the dollar for these investments and justifies it by saying that the government had no power to impose a loss on these companies. Amazing. Simply amazing. This is big business socialism where corporate welfare is extended to protect Wall Street from loss using taxpayer dollars, but there is no share in the event of a gain for the American people. Clearly, the open market values these investments at much less than 100%. More like 20%. Now the American people have paid 100 cents on the dollar for investments that are worth only 20 cents. This seems like one big inside job by a bunch of Wall Street elites. Final score: Goldman Sachs 1, the American taxpayer 0.
From the "We have to laugh otherwise we would cry" department:
http://vodpod.com/watch/1531016-clusterfuk-to-the-poor-house-goldman-sachs-connections-the-daily-show-comedy-central
Thursday, March 19, 2009
Nancy Pelosi is Crazy
I have no words....
http://www.foxnews.com/politics/2009/03/18/pelosi-tells-illegal-immigrants-work-site-raids-american/
Ok, maybe I have a few. This is a US Congresswoman telling an audience that the enforcement of federal immigration laws is "un-american". This is pandering at its worst.
While Pelosi's comments are especially frustrating, this is not a partisan issue. Both republicans and democrats in Washington pander to these groups and favor some sort of amnesty for illegal immigrants. While the numbers are not exact for obvious reasons, most believe we have approximately 20 million illegals living in the US. (For perspective, 2.8 million people live in Mississippi) Can you imagine adding 20 million to the US payroll via welfare, medicare, medicaid, unemployment benefits, etc. ? Further, what message does this send to the pool of potential illegals currently living in Mexico? Amnesty would only encourage more people to illegally immigrate.
For the record, I am not against immigration. We are a nation of immigrants. I am against illegal immigration. Without borders and border control we have no nation.
http://www.foxnews.com/politics/2009/03/18/pelosi-tells-illegal-immigrants-work-site-raids-american/
Ok, maybe I have a few. This is a US Congresswoman telling an audience that the enforcement of federal immigration laws is "un-american". This is pandering at its worst.
While Pelosi's comments are especially frustrating, this is not a partisan issue. Both republicans and democrats in Washington pander to these groups and favor some sort of amnesty for illegal immigrants. While the numbers are not exact for obvious reasons, most believe we have approximately 20 million illegals living in the US. (For perspective, 2.8 million people live in Mississippi) Can you imagine adding 20 million to the US payroll via welfare, medicare, medicaid, unemployment benefits, etc. ? Further, what message does this send to the pool of potential illegals currently living in Mexico? Amnesty would only encourage more people to illegally immigrate.
For the record, I am not against immigration. We are a nation of immigrants. I am against illegal immigration. Without borders and border control we have no nation.
Friday, March 13, 2009
Jon Stewart takes down Crossfire
I am not sure how I missed this when it happened, but here is a clip from Jon Stewart's appearance on CNN's Crossfire back in October, 2004. The show was cancelled 2 months later.
http://www.youtube.com/watch?v=aFQFB5YpDZE
Thanks to Mac for bringing this up as we discussed Jon Stewart's bludgeoning of CNBC's Jim Cramer. Here is a link to the Cramer interview if you are interested.
http://www.thedailyshow.com/index.jhtml
What I loved about his Crossfire appearance was how he clearly rattled Tucker Carlson and Paul Begala. These guys are two of the most experienced politicos around and usually have an "answer" for everything. They are masters of spin yet they had no real comeback and clearly looked uncomfortable. They had nothing because they knew he was telling the truth. They were floundering and it was wonderful to watch.
http://www.youtube.com/watch?v=aFQFB5YpDZE
Thanks to Mac for bringing this up as we discussed Jon Stewart's bludgeoning of CNBC's Jim Cramer. Here is a link to the Cramer interview if you are interested.
http://www.thedailyshow.com/index.jhtml
What I loved about his Crossfire appearance was how he clearly rattled Tucker Carlson and Paul Begala. These guys are two of the most experienced politicos around and usually have an "answer" for everything. They are masters of spin yet they had no real comeback and clearly looked uncomfortable. They had nothing because they knew he was telling the truth. They were floundering and it was wonderful to watch.
Thursday, March 12, 2009
More Bailout stuff
Good article. Worth a read.
http://www.cbsnews.com/stories/2009/03/11/politics/otherpeoplesmoney/main4858348.shtml
http://www.cbsnews.com/stories/2009/03/11/politics/otherpeoplesmoney/main4858348.shtml
Wednesday, March 11, 2009
America the Ignorant
How ignorant and uninformed are we as a nation? Former Supreme Court Justice Sandra Day O'Connor founded a group to educate Americans about their government - Civics 101. During her work she was shocked and saddened to discover that only 1/3 of those asked could name the 3 branches of government. I can hear it now..."Uh...the president, the League of Justice and uh....".
I could discuss the many root causes of this problem all day, but one thing that contributes to it is the willingness of our leaders (and media but that is for another day) to dumb things down for us. This has not always been the case. During WWII FDR held weekly radio addresses or "fireside chats". These weekly radio addresses were meant to inspire the public and inform the average American regarding the war effort and the challenges we faced. During his first such radio address FDR asked that each American family purchase a world atlas before the next week's address. The American people promptly bought every atlas they could lay their hands on. During FDR's next address he asked each family to use the atlas to locate specific locations where American troops would likely be fighting. He also asked that each American take notice of the distance it would take to transport troops, equipment, supplies, etc. from American soil to these faraway lands. FDR explained to his aides that he did this because he wanted the American people to understand what we were doing and how much effort and sacrifice it would take to accomplish it.
Today our leaders speak of these faraway lands in soundbites (axis of evil) and make no attempt to educate the American people or even encourage the American people to educate themselves. How many people could pick out Iraq or Afghanistan on a map? How many Americans know that Iraq consists of 3 religious/ethnic groups that hate each other's guts? If we as a nation are going to commit thousands of American soldiers and billions of dollars to fight muslim extremists then we as citizens owe it to our country and our families to educate ourselves regarding the Middle East and Islam. We cannot rely on media soundbites and the State of the Union address to keep us "informed". In general, our leaders want to keep us in the dark. They want to control the flow of information. It makes it much easier for them to carry out their plans without dissent. An informed citizenry is the biggest threat to power hungry politicians and a must if this republic is to continue to thrive.
I could discuss the many root causes of this problem all day, but one thing that contributes to it is the willingness of our leaders (and media but that is for another day) to dumb things down for us. This has not always been the case. During WWII FDR held weekly radio addresses or "fireside chats". These weekly radio addresses were meant to inspire the public and inform the average American regarding the war effort and the challenges we faced. During his first such radio address FDR asked that each American family purchase a world atlas before the next week's address. The American people promptly bought every atlas they could lay their hands on. During FDR's next address he asked each family to use the atlas to locate specific locations where American troops would likely be fighting. He also asked that each American take notice of the distance it would take to transport troops, equipment, supplies, etc. from American soil to these faraway lands. FDR explained to his aides that he did this because he wanted the American people to understand what we were doing and how much effort and sacrifice it would take to accomplish it.
Today our leaders speak of these faraway lands in soundbites (axis of evil) and make no attempt to educate the American people or even encourage the American people to educate themselves. How many people could pick out Iraq or Afghanistan on a map? How many Americans know that Iraq consists of 3 religious/ethnic groups that hate each other's guts? If we as a nation are going to commit thousands of American soldiers and billions of dollars to fight muslim extremists then we as citizens owe it to our country and our families to educate ourselves regarding the Middle East and Islam. We cannot rely on media soundbites and the State of the Union address to keep us "informed". In general, our leaders want to keep us in the dark. They want to control the flow of information. It makes it much easier for them to carry out their plans without dissent. An informed citizenry is the biggest threat to power hungry politicians and a must if this republic is to continue to thrive.
Wednesday, March 4, 2009
Its the End of the World As We Know It
I came across this article regarding billionaire investor Jim Rogers' thoughts about the economy and found it thought provoking. Jim is a southern boy from Demopolis, Alabama (between Tuscaloosa and Meridian). He started on Wall Street in 1970 and along with George Soros co-founded the famous Quantum Fund. By 1980 he was worth billions. Jim is known as an independent and generally curses both parties when it comes to the economy. As you can see from the articles below he does not believe in pulling punches.
http://www.cnbc.com/id/29476319/site/14081545
http://www.businessweek.com/magazine/content/09_10/b4122017811535.htm
Here are the most intriguing comments from Rogers for those who do not have the time to read the articles.
"I think it's astonishing, they're ruining the US economy, they're ruining the US government, they're ruining the US central bank and they're ruining the US dollar," he said.
"You are watching something in front of our eyes, very historically, which is basically the destruction of New York as a financial center and the destruction of America as the world's most powerful country."
Japan's economic "lost decade" was caused by trying to bail out the banks, and the West risks running out of money if it doesn't let the bad banks fail now, Rogers warned.
Systemic risk is going to be the same in 10 months, 5 years of 10 years if the fundamental problem is not solved, he added.
"The idea that you have too much debt, too much borrowing and too much consumption and you're going to solve that problem with more debt, more consumption and more borrowing? These people are nuts."
Rogers truly believes that America's days as the economic superpower on this planet are numbered and is not just talking the talk. He has moved his family from New York to Singapore and is teaching his daughters mandarin chinese as a second language. Is he a visionary or is he just a little loony?
History says that no country or empire stays on top forever. Some keep the title belt for longer than others (Egyptians, Romans) but they all eventually fall and/or take a back seat to a stronger competitor.
For example, the British empire rose to power in the 1700's and enjoyed alpha male status in the world until the early 20th century. A severe downturn in the British economy combined with the the rise of the US and the Soviet Union post WWII saw Britain become a beta male almost overnight.
We like to think of ourselves as THE superpower in the world, but can you be the superpower and be broke? Before you answer that question understand this: We are now the biggest debtor nation in the world and the money being spent to "stimulate" the economy was borrowed from China. Make no mistake, WE ARE BROKE! Hard to see the US as the alpha dog in this neighborhood when we are going to the biggest check casher in the world on a monthly/weekly basis just to keep the lights on.
http://www.cnbc.com/id/29476319/site/14081545
http://www.businessweek.com/magazine/content/09_10/b4122017811535.htm
Here are the most intriguing comments from Rogers for those who do not have the time to read the articles.
"I think it's astonishing, they're ruining the US economy, they're ruining the US government, they're ruining the US central bank and they're ruining the US dollar," he said.
"You are watching something in front of our eyes, very historically, which is basically the destruction of New York as a financial center and the destruction of America as the world's most powerful country."
Japan's economic "lost decade" was caused by trying to bail out the banks, and the West risks running out of money if it doesn't let the bad banks fail now, Rogers warned.
Systemic risk is going to be the same in 10 months, 5 years of 10 years if the fundamental problem is not solved, he added.
"The idea that you have too much debt, too much borrowing and too much consumption and you're going to solve that problem with more debt, more consumption and more borrowing? These people are nuts."
Rogers truly believes that America's days as the economic superpower on this planet are numbered and is not just talking the talk. He has moved his family from New York to Singapore and is teaching his daughters mandarin chinese as a second language. Is he a visionary or is he just a little loony?
History says that no country or empire stays on top forever. Some keep the title belt for longer than others (Egyptians, Romans) but they all eventually fall and/or take a back seat to a stronger competitor.
For example, the British empire rose to power in the 1700's and enjoyed alpha male status in the world until the early 20th century. A severe downturn in the British economy combined with the the rise of the US and the Soviet Union post WWII saw Britain become a beta male almost overnight.
We like to think of ourselves as THE superpower in the world, but can you be the superpower and be broke? Before you answer that question understand this: We are now the biggest debtor nation in the world and the money being spent to "stimulate" the economy was borrowed from China. Make no mistake, WE ARE BROKE! Hard to see the US as the alpha dog in this neighborhood when we are going to the biggest check casher in the world on a monthly/weekly basis just to keep the lights on.
Subscribe to:
Posts (Atom)
Posts
