Tag: Bailouts

RANT: Gooferment Motors bailout has cost over 32B$ dollars so far

Published on by reinkefjLeave a comment

http://newsbusters.org/blogs/nb/tom-blumer/2015/10/24/not-news-uaw-considering-plan-milk-unemployment-system-if-it-calls-gm

Not News: UAW Considering Plan to Milk the Unemployment System If It Calls a GM Strike
By Tom Blumer | October 24, 2015 | 10:30 PM EDT

*** begin quote ***

The news coming out of Detroit about near-deadline negotiations between the United Auto Workers union and General Motors has been pretty quiet. As the Sunday 11:59 p.m. deadline approaches, the Associated Press only has a four-paragraph blurb indicating that the union wants to get a richer package than it just garnered in negotiations with Fiat Chrysler. A Reuters report goes into detail about GM’s cost structure still being higher than that seen at Toyota’s and Nissan’s U.S. plants by about 15 percent and 31 percent, respectively. The New York Times is only carrying reports from the wires.

One note of substance about the UAW’s strategy covered at Bloomberg News — surely known to others following the industry who are filing bland reports — is that it plans to milk the unemployment insurance system in the event of a protracted strike.

To be clear, such a strike would appear to be very unlikely, if for no other reason than the fact that Americans remember that the Obama administration bailed out GM at a considerable cost several years ago. The final fully-loaded cost involved was $26.5 billion — not the $11.2 billion touted by the press last year. It’s safe to say that quite a few people would not take kindly to the idea of the primary beneficiaries of that unprecedented largesse walking out on their jobs when so many others are still unemployed and under-employed over six years after the most recent recession’s official end.

(Additionally, the linked $26.5 billion analysis appears not to have picked up the effect of the government permitting GM to carry forward $16 billion in tax losses incurred by the “old GM” into the “new GM” — even though “a business that undergoes a change in ownership usually has to forfeit the old company’s net operating losses,” which certainly happened during the bailout. At the statutory federal income tax rate of 35 percent, that decision alone cost the U.S. treasury $5.6 billion.)

*** end quote ***

Argh!

And the UAW isn’t happy?

Talk about Crony Capitalism.

Now they want to stick the taxpayer — via unemployment insurance — with the cost of their “strike”.

Guess no one remembers the current 18T+ national debt and the guesstimated 200T+ in unfunded liabilities that our posterity will have to deal with!

Argh!

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ECONOMICS: My financial team says …

Published on by reinkefjLeave a comment

This fellow leads the group that manages my portfolio (Four years? Average north of 10% for each or the years. One year over 20+%!). While I disagree with him about the long term prospects (i.e.,gold versus the US$), he’s been much “right-er” than I have over the last few years. I think he gives good advice — those four principles — for investors and savers of all sizes.

FWIW!

As usual, the talking heads, politicians, and bureaucrats have, and have had, the “story” all wrong.

Congress causes “bubbles” by messing with stuff it doesn’t understand!

* Either in “moving water from end of the pool to another” it sets off ripples that drown everyone (all of us in the pool). For example, “bailouts”. Failures, even big gigantic enormous ones, are GOOD!

Imagine that instead of enriching Big Labor UAW, the President / Gooferment had the huevos to say:

*** begin quote ***

“Well guys, that’s just too <Expletive Deleted> bad.

We’ll put extra folks on at the Unemployment Office and …

… remember “We, The Sheeple” guarantee your pensions up to 35k/per year just like we did for the Delta pilots.

Executives, we think WalMart needs help. 

And, hey, all you other executives that are running big companies, we want to help you focus — so effective First of Next Month — all salaries in the USA can NOT be more than mine / the President’s. You can’t believe your job is harder than his and hence worth more.

Boards of Directors, you can award more comp to your execs but it has to be in the form of a 25 year equal step ladder of your UNINSURED corporate bonds. I’m sure Treasury Secretary Little Taxcheat Timmy Geitner can explain the concept! (25M$ equals 25 1M$ bonds dated in successive years). By the way BoD’s, your comp regardless of amount will be structure the same way.

That should focus everyone on the big picture.

Thanks for playing “Capitalism version 2.0”

*** end quote ***

* By changing rules, they don’t understand. Example, Glass Stegal, Community Reinvestment Act, and my personal favorite “the short seller’s uptick rule” that allow bear raids on publicly listed companies.

(Note Bene: The “uptick” rule says you can ONLY sell short — borrowing the stock — after an uptick in the sale price of the stock. That means you can put in lots of short sale orders to drive the prices down all by yourself. And, that rule cause the brokers to charge lot’s more for the trade. I know it was at one time 10x the regular trade price at Merrill. They had whole parts of trading desks that managed short sales. Made lots of money doing it. And, when the genius changed that rule, those folks lost their jobs and corporations found themselves under attack (i.e., good companies perceived as weak were subject to bear raid, the stock price was driven down, they were taken over, privatized at that low price, the ordinary players got killed, and the raiders would reap big profits for moving paper.)

* By imposing MEANINGLESS regulations and laws (e.g., GBLA, SOX, Graham, Dodd, etc.) that were supposed to prevent abuses and (a) didn’t plus (b) made everything more expensive by increase admin.

* Finally, by excessive spending and borrowing, they robbed the money of its value. “King Dollar” is a great strategy for the poor and those on fixed incomes because their “money” retains its purchasing power. For example, three silver dimes int he late Fifties Early Sixties bought a gallon of gas; now those same three SILVER dimes can be sold for their melt value and buy 1½ gallons of gas. The politicians point blame at the EVIL oil companies, but IN FACT, gas is “cheaper” now. It’s the money that’s worth less.

At least in the days of King Richard and the Sheriff of Nottingham, the Gooferment had to send the Sheriff’s men out to rob the poor serfs. Or, shave the coins. That’s why coins originally had milled edges; so you could tell if they had been altered.

Argh!

So bottom line:

Ric says: today’s news is better than you’re lead to believe.

This fat old white guy injineer say: “The PAST was MUCH WORSE than you’ve been lead to believe. AND, structurally, you should be upset because the same problem makers are in charge! Still as clueless as they have ALWAYS been.”

Argh! to the N-th power.  

 

———- Forwarded message ———-
From: Edelman Financial Services <client@ricedelman.com>
Date: Fri, Jun 1, 2012 at 5:37 PM
Subject: Market Update
To: XYZXYZXYZXYZ@reinke.cc

Edelman Financial Services

Dear John:

I’ve heard about “A Tale of Two Cities,” but this is ridiculous! Indeed, rarely have we seen such a huge disconnect between the stock market and the economy.

To illustrate, allow me to share some facts with you.

In the past six months, one million Americans who were out of work have found jobs, according to the Bureau of Labor Statistics. The unemployment rate remains too high, but the BLS says the rate is currently at its lowest level in more than three years, despite this week’s “gloomy” news that 69,000 additional Americans found work last month.

Inflation (as measured by the Consumer Price Index) is running at the unusually low annual rate of 2.3% as of April 30. By comparison, inflation has averaged 3.2% since 1926. And I can remember when inflation was 15% back in 1980. (Data from the Bureau of Labor Statistics.)

The price of a barrel of oil fell below $90 last week, reaching its lowest price since October 21, according to the Department of Energy. Stockpiles are at a 22-year high, reports the Energy Information Administration.

Home sales in all four geographic sectors of the U.S. were 10% higher in April than a year ago, says the National Association of Realtors. And the Commerce Department reports that home prices are up 5% from this time last year. Moody’s Analytics called these reports “a genuine rebound” for the housing sector. No wonder that, as Investor’s Business Daily reports, homebuilder sentiment is at a five-year high. And mortgage rates have hit another all-time low, just 3.78% for the 30-year fixed, according to Freddie Mac.

Consumer debt is dropping rapidly. Equifax’s April National Consumer Credit Trends Report and TransUnion have reported:

A 52% decline in the number of write-offs compared to April 2009. We’re now at a level comparable to the pre-recession level of 2006 and the trend continues to improve.
Home finance balances have decreased $1.2 trillion since October 2008, posting the fourth consecutive year of decline.
Home equity revolving balances are $560 billion, down $115 billion from three years ago.
Foreclosures on home equity revolving credit have dropped 37% from a year ago. It’s the lowest in two years.
Auto loans at least 60 days overdue have declined 27% from last April. Meanwhile, Ford’s credit rating was raised by Moody’s to investment-grade for the first time in seven years.

The nation’s banks earned $35 billion in the first three months of 2012. That’s the biggest quarterly profit since 2007, according to the Federal Deposit Insurance Corporation. Two out of three banks reported higher profits than for the same period a year ago. Meanwhile, bank losses on failed loans fell to the lowest level in four years and the number of troubled banks fell for the fourth consecutive quarter, says the FDIC. And the National Credit Union Administration says credit unions have granted nearly $12 billion in business loans, setting a new record.

The banks aren’t the only businesses making money. After-tax corporate profits (as a percent of the nation’s GDP) were 9.75% as of December 31, 2011 – compared to just 5.7% in Q4 1999, at the height of the dot-com craze. (Source: Bureau of Economic Analysis, Department of Commerce). Corporate dividends are on pace for an all-time high, reports Standard & Poor’s, and American corporations have accumulated a record level of cash – $1.2 trillion, according to Moody’s Investors Service.

A new report by educational firm Financial Finesse on employee financial stress says that only 16% of employees now report “high” or “overwhelming” financial stress levels, down 30% from two years ago. And consumer sentiment, measured monthly by the University of Michigan, is now at the highest level since October 2007.

As these facts illustrate, the U.S. economy is continuing its recovery from the depths of the Credit Crisis of 2008, and in many areas we’ve returned to pre-crisis levels. And indications are strong that our nation’s recovery will continue for years to come.

Such positive news would suggest that stock prices should be soaring. And indeed they were for the first three months of this year (the Dow Jones Industrial Average1 gained 8.8% through March 31). And although the economic data continues to be good (as described above), the stock market was flat in April and fell sharply in May. (The Dow dropped 5.8% in May. That might not sound like much, but May produced only five daily gains; the last time a single month had so few daily gains was in 1968! And the last time we experienced a month with just four days of gains occurred – are you ready for this? – in 1903!)

Some folks might say that a pullback makes sense and that stock prices can’t be expected to continue rising at the pace set earlier this year. But that sentiment belies the facts. While the S&P 500 Stock Index2 is at the same level as it was in 2000, the current operating profits of the 500 companies that comprise the S&P 500 are 1.8 times higher than they were then. If prices in 2000 were accurate based on profits, then today’s stock market – based on that math – should be 81% higher than it is. In other words, the Dow Jones Industrial Average should be at 22,431, not 12,293 (which was Thursday’s actual close).

Consider this: the earnings yield on the S&P 500 is 8.7%; the yield on the 10-year Treasury Note is 1.6%. The last time the spread was this wide was 1967! This statistic from Standard and Poor’s, like all the others I’ve shared, is completely at odds with May’s performance.

And there’s more. Since October 2007, when the stock market last attained an all-time high, investors have yanked $420 billion from stock mutual funds. They’ve withdrawn $31 billion this year alone, through May 23, according to the Investment Company Institute. So there is no question that, despite gains in consumer confidence and robust corporate profits, investors are displaying no stomach for stocks. They’d rather own just about anything else, even if it means earning nothing (such as bank accounts and money market funds that pay 0.01% annually), losing money in a desperate effort to avoid, well, losing money (gold prices are down about 15% since the highs reached last August according to The Wall Street Journal, despite the claims of many that gold is a “safe haven”), blindly (and foolishly) chasing some get-rich-quick fad (ever hear of an IPO called Facebook?) or incorrectly thinking that long-term bonds are a safe haven (have you read my Special Report warning about “this most dangerous of assets”? If not, ask us to send you a copy).

We all know why investors are so averse to investing in stocks: their attitudes range from fear (Europe, the U.S. federal deficit and state pension-fund shortfalls top the list) to anger (about our do-nothing Congress, incompetent federal regulators and greedy Wall Street banks and brokerage firms) to confusion (conflicting news reports that are inflicted upon us moment by moment in a never-ending media frenzy, made worse by the fact that this is an election year). None of those sentiments cause one to feel confident about investing in stocks.

So, I’m stumped. Every week, Branderson and I talk to a million people on the radio, trying to explain to them why they shouldn’t be full of fear about today’s economy. Together with our colleague, Financial Educator Keith Spengel, we have talked to thousands of people this year in seminars and webcasts on the same subject. And, of course, all the advisors here at Edelman Financial talk daily with hundreds of people. In each instance, we try to show how much money American companies are earning, and how well positioned we are as a nation to confront, withstand and overcome the many serious challenges that we face. And most importantly, we try to help consumers understand that the key to their future financial security lies not in the actions of Congress or leaders of the Eurozone, but in their own personal actions. We want people to realize that it’s how they handle their money today that will be the key determinant for how much money they will have in the future – that what matters to them personally has more to do with how much they are personally saving and where they are saving it than with whatever new law or regulation comes out of Congress next month or next year.

Unlike the masses, you get it. I know you do. You understand that the key to investment success is found by following four simple rules: diversify extensively3 (so that disarray in the stock market won’t cause you too much harm), focus on your long-term goals (because today’s worries, no matter how severe they appear, will be nothing more than distant memories in the future), rebalance your portfolio (to benefit from short-term volatility by capturing profits and buying shares that are relatively low in price) and keep your costs low (by purchasing investments that are sharply lower in cost than most others). These four rules serve as the basis for your investment in the Edelman Managed Asset Program®, and they serve you well. I know you get it.

Still, it is frustrating when stock prices fall in the short-term due solely to absurd, illogical behavior. It’s disturbing when investors let their imaginations run wild, focusing on what might happen instead of what actually is happening.

So, yes, stock prices in May were down. Not only did U.S. stocks decline, as noted earlier, but it was even worse for foreign stocks. (The EAFE Index2, a measure of foreign stocks, fell 9.4% in May, or twice as much as the S&P 500 – reflecting current angst about Europe.) Despite May’s dreary results, we remain confident, and you should too. Current prices merely reflect the fear, anger and confusion of the moment. Those sentiments will pass, and when they do – as investors realize that they (once again) have been focusing on all the wrong things – we expect prices to rebound with a resurgence that will surprise a great many people.

How close are we to such times? No one knows of course, but consider the chart below: it shows each week’s average recommended stock allocation of the chief market strategists at six large financial firms (Bank of America Merrill Lynch, Bank of Montreal, Deutsche Bank, JPMorgan Chase, Oppenheimer and UBS). Currently, these “experts” are recommending that investors place only 51% of assets in stocks! That low an amount is practically unheard of. In fact, it’s occurred only twice in the 22-year history of this weekly survey. And those two other times were in May 1997 (immediately followed by a 77% gain in the NASDAQ over the next 24 months) and in March 2009 (immediately followed by a 100% gain in the S&P 500 over the next 25 months). If history is any guide, the bearishness of these “experts” is foretelling a major market upswing!

Wall Street Allocation Stock

In the meantime, though, rough markets are likely. As we’ve witnessed several times in the past few years, political leaders and natural disasters can create short-term havoc in the financial markets. Those who panic and sell during such times risk financial devastation, but those who keep their heads, stay focused on their goals and remain committed to their investment strategy discover that they can weather the storm with less volatility than others and potentially emerge with quicker recovery and the achievement of all-time-high account values faster than they might otherwise expect.

Storm clouds surround stock prices, but in our opinion, they are not accurately reflecting the true value of companies both in the United States and abroad. Don’t be surprised at your May statement, and don’t place too much emphasis on it. We certainly aren’t. All the advisors here at the firm still have our own money invested in the Edelman Managed Asset Program®, just like you, and we aren’t changing a thing.

To be sure, market volatility (meaning daily price movements) has been very low for the past six months. But as events continue to unfold in Europe, and as our election approaches, it would not be surprising for the markets to experience a resurgence in volatility, similar to what was experienced in 2011. Don’t assume that volatility is bad, or predictive of anything. High winds often accompany big storms, but in the end, the sun always returns, shining brightly. If you have any questions or concerns be sure to talk to your Edelman advisor.

As always, we’ll keep you posted.

Best,
Ric Edelman
Chairman and CEO

1The Dow Jones Industrial Average is an index that shows how 30 large, publicly owned companies based in the United States have traded during a standard trading session in the stock market.

2An index is a hypothetical portfolio of specific securities, the performance of which is often used as a benchmark in judging the relative performance of securities. Indexes are unmanaged portfolios and should only be used as comparisons with securities with similar investment characteristics and criteria. It is impossible to invest in an index. The performance information for any of the indices does not take into account any taxes imposed on, or any fees, expenses, commissions or other charges which may be incurred by portfolio management or the investor for such a portfolio. Past performance does not guarantee future results.

3Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses. There are no guarantees that a diversified portfolio will outperform a non-diversified portfolio.

Copyright © 2012 Edelman Financial Services. All rights reserved.

Ric Edelman is Chairman and CEO of Edelman Financial Services, a Registered Investment Adviser, and CEO, President and a Director of The Edelman Financial Group (NASDAQ: EF). He is an Investment Adviser Representative who offers advisory services through EFS and a Registered Principal of (and offering securities through) Sanders Morris Harris Inc., an affiliated broker/dealer, member FINRA/SIPC.

If you would like to manage your email preferences, please ….

This message was sent by Edelman Financial Services – 4000 Legato Road, 9th Floor, Fairfax, VA 22033 – (888) 752-6742.

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POLITICAL: Why do I suspect that the taxpayer will be paying

Published on by reinkefjLeave a comment

http://www.impactlab.net/2011/08/01/banks-turning-to-bulldozing-foreclosed-homes/

August 1st, 2011 at 12:23 pm
Banks turn to bulldozing foreclosed homes
in: Business, Economy, Latest Trend

*** begin quote ***

Increasingly, it appears banks are turning to demolition teams instead of realtors to rid them of their least valuable repossessed homes. Last month, Bank of America announced plans to demolish 100 foreclosed homes in the Cleveland area. The land is then going to be donated back to the local government authorities. BofA says the recent donations in Cleveland are part of a larger plan to rid itself of its least saleable properties, many of which, according to a company spokesperson, are worth less than $10,000. BofA has already donated 100 homes in Detroit and 150 in Chicago, and may add as many as nine more cities by the end of the year.

*** end quote ***

Wow, what an interesting concept!

They get a write off for the donation. And, they don’t have to pay property taxes.

Argh!

Ouch!

What a waste of capital housing stock.

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POLITICAL: NO more bailouts … … for ANYONE!

Published on by reinkefjLeave a comment

Tuesday, January 18, 2011

Honorable Republican Representatives,

On behalf of roughly 45 million Americans who voted for you in the November 2nd Elections,

On behalf of the more than 10 million Tea Party Supporters and Sympathizers among them…whose votes gave you victory,

For the purposes of federal government and state government fiscal responsibility, solvency, and financial common sense,

We request that all 242 Republican Members of the U.S. House of Representatives pledge to actively oppose and vote against all federal government bailouts for state governments or local governments.

No Funding bailouts for state or local governments.

No Loans for state or local governments.

No Loan Guarantees for state or local governments.

No cash. No loans. No loan guarantees. No co-signing.

Not for California. Not for Massachusetts. Not for Illinois. Not for New York. Not for any state or local government.

They must live within their own means. They must reduce and remove fat and non-essential spending from their budgets. They must seek and find ways to accomplish their essential duties – with lower overhead and less money.

Just like private sector businesses.

You must not enable them to continue their reckless and irresponsible spending.

You must not enable state and local governments to postpone the day of financial reckoning.

They have behaved like spending junkies, like money drunks. Now they face detox. Some are begging for ‘just one more’ drink, ‘just one last dose’ of narcotics. Tomorrow they’ll get clean and sober…

That’s the addiction talking. Ignore it.

Once state and local officials realize that you will not bail them out, they will solve their own spending problems.

Once they come to terms with economic reality, they will seek and find cheaper, better, smarter ways to do their government’s essential tasks.

They will become more responsible and accountable stewards of government.

Because almost all of you 242 Republican Members of the U.S. House of Representatives ran campaigns promising to roll back federal overspending, to exercise fiscal restraint, and to end federal bailouts, we ask you to notify state governments and local governments that you will vote against bailing them out.

Together, your 242 Republican U.S. House votes against bailing out state and local governments give you a “Veto.”

Promising to exercise this Republican “Veto” – and using it, if the Senate or White House demands bailouts for state or local governments – will show Tea Party supporters, fiscal conservatives, libertarians, and independents that you keep your campaign pledges.

This may create momentum for your proposed federal spending cuts.

It may create momentum for 2012 Republican candidates for the U.S. House and Senate who promise to substantially cut federal government spending, borrowing, and taxing.

Perhaps even a like-minded Republican candidate for President.

It starts with you. Now.

Will you make this pledge?

We eagerly await hearing about and publicizing your No Bailouts Pledge. It will be a beacon of hope during these crucial months of budget negotiations.

Small government is beautiful,
Carla Howell & Michael Cloud

# # # # # posted 2011-01-27 19:29

RANT: Bailouts are welfare and theft is just theft

Published on by reinkefjLeave a comment

http://irisheagle.blogspot.com/2010/07/mortgage-bail-out-recipients-should-be.html

Saturday, July 10, 2010
Mortgage bail-out recipients should be publicly named

*** begin quote ***

I also have sympathy for those who find themselves out of work and can’t afford their mortgage, but again I would like any help that we taxpayers are to provide …

*** end quote ***

Welfare is welfare. Theft is theft. And, there’s a “moral hazard” in this.

When the Gooferment takes over, “We, The Taxpayers” don’t get to decide who gets our charity and who doesn’t. Who’s worthwhile and who’s a bum! And, from thence all sorts of bad things come.

It’s welfare. Just more welfare. That enables bad behavior. Bad behavior on the part of the recipient, every one who knows about it, the politicians, and the bureaucrats. The recipient is not “encouraged” to make better decisions. Every one, who knows about it, takes on more risks “knowing” that “We, The Taxpayer” will chip in to our hard luck story. The politicians get to claim that they “care” — easy to care sending OPM Other People’s Money — while having favors, contracts, and jobs to dispense. And, last but not least, the bureaucrats can have high paying jobs with pensions while doing “good for the downtrodden”. Argh!

It’s welfare. It’s theft. And, it encourages future bad behaviors that we can only imagine.

To misquote the iconic Nike commercial, and to quote the stupid anti–drug one, “Just Say No”.

No Taxpayer-funded bailouts of any kind. Ever. No matter how sad the tale.

If the politicians want to pass the collection basket after putting in a few quid of their own, I’m happy to contribute. Just don’t rob me and expect me to be happy that the thief is doing good with my few scarce pennies.

Argh!

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RANT: Good after bad

Published on by reinkefjLeave a comment

Govt gives GMAC $3.8B in new aid, boosts stake

*** begin quote ***

WASHINGTON (AP) – The government gave GMAC Financial Services another $3.8 billion in cash and took a majority stake in the auto lender, aiming to stabilize the company as it struggles with big losses in its home mortgage unit. The fresh infusion is on top of $12.5 billion in taxpayer money…

*** end quote ***

How dumb!

Time to cut the taxpayer’s losses.

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POLITICS: Increase savings and decrease spending at home

Published on by reinkefjLeave a comment

http://www.lewrockwell.com/schiff/schiff49.1.html

The Price of Pretense in Pittsburgh by Peter Schiff

*** begin quote ***

Noting that a return to pre-crisis economics is impossible, the president assured the world that his administration will pursue policies to increase savings and decrease spending at home and challenged his Chinese counterparts to enact measures with the opposite effect in their own country.

While this is roughly what needs to happen, President Obama is actually doing everything in his power to prevent it. In point of fact, every policy move undertaken by his administration has exacerbated the very imbalances he supposedly wants to curtail. To so seamlessly profess one goal while simultaneously undermining it is an impressive piece of political theater. Unfortunately, this particular drama is likely to have an unhappy ending – and the ticket price will be staggering.

*** end quote ***

Upon reflection, when these very ugly chickens come home to roost, as also forecast by Reverend Wright, will there be any way to escape it?

It would seem that getting out of debt and getting very small in terms of exposures would be a good strategy.

Tactically, shift assets to durables, stockpile, and think defensively.

Argh!

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CORRUPTION: Shills for the gooferment shilling the party line

Published on by reinkefj1 Comment

http://www.ncc-1776.org/tle2009/tle537-20090920-05.html

That Sinking GM Feeling
by Jim Davidson
Special to The Libertarian Enterprise

*** begin quote ***

Later he lies again, “So we’re putting our money where our mouth is.” No, you bastard, you stinking lackey of big government, you filthy thief, you aren’t. GM tried putting their money where their mouth is, and they lost. They went under. So now they are putting our money where their mouth is. He isn’t a nice old man, he’s an evil old liar.

*** end quote ***

Absolutely correct.

This gooferment stooge ADMITTED he know nothing about cars. Didn’t do much for AT&T either. Guess he contributed big and get his reward.

Special place in eternity for all of them!

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MONEY: Dollar is in big trouble

Published on by reinkefjLeave a comment

http://www.lewrockwell.com/lilley/floy10.1.html

Sound Money: The Impossible Dream?
by Floy Lilley

*** begin quote ***

Debt: The US must borrow 46 cents for every dollar spent this year. Outstanding public debt as of 18 August is $11,704,322,903, 918. An estimated population of the United States is 307,209,243, so each citizen’s share of this debt is $38,127. The debt-to-GDP ratio is 82%. This debt will grow by a trillion dollars a year. The debt has to be rolled over every four years. That’s $240 billion a month to be skimmed off capital markets. The four largest budget items are wars, social security, Medicare/Medicaid, and interest on the debt.

*** end quote ***

How does the Republic get out of the mess that the congresscritters have created?

Inflation? Repudiation? What Chapter applies to the nation?

It’s clear we can’t meet our commitments. So what, or rather who, gets thrown under the bus?

Clearly the Chinese, and any one holding our debt. Senior citizens, pensioners, the sick and elderly.

Social security goes broke. What does that look like?

Argh!

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SOCIALISM: “Cash for Clunkers”; bad strategy, bad tactically

Published on by reinkefjLeave a comment

http://apnews.myway.com/article/20090801/D99Q3N5G1.html

Popularity, Web snafus nearly broke ‘clunkers’
Aug 1, 8:56 AM (ET)
By DAN STRUMPF

*** begin quote ***

Far more drivers signed up for the “cash for clunkers” program than anyone thought, overwhelming showrooms, blowing through the initial $1 billion set aside by Congress and leaving dealers panicked over when or if the government would make good on the hefty rebates.

*** end quote ***

Sure steal from the taxpayer to give money to car dealers?

No wonder the program is a success.

Like a bank robber giving out free samples.

And, there folks want to run health care?

It’s like everyone had gone nuts. Financial restraint, fiscal discipline, out the window. It’s like a Frat Party on the taxpayer’s dime.

One website pointed out that (1) these are future sales brought forward. (2) the “clunkers” are the cars that poor people would have bought used.

So like Basat said, (paraphrasing) we can’t see the hidden costs.

Politicians and bureaucrats are stupid. And, I ain’t buying them a beer. And, for sure, I’m not drinking with them!

# # # # #

RANT: Sheepke are suckers

Published on by reinkefjLeave a comment

http://channel-surfing.blogspot.com/2009/07/forget-tea-parties-wherere-pitchforks.html

*** begin quote ***

We will continue to need significant public spending to get us out of this mess

*** end quote ***

SORRY, buzzz, incorrect thinking.

The gooferment can’t get us out of this mess, that THEY put us into. (Sweetheart deals for their pals on Wall Street. See CRA, Freddie, Fannie, FED, FTC, etc, etc! Oiled by “contributions” to Dodd, Barney, and others.)

The gooferment has completely corrupted our concept of money. The stuff they are printing ain’t “money”. It’s toilet paper. And, just look at the value of the dollar over time or in international trade and you can see the result.

They will get us out of this mess by inflating the currency. It’s the only tool they have. Screw the savers, those on fixed income, and anyone holding “dollars”. Inflation rewards their friends and gives them more “money” to spend.

In actuality, the only way to get out of this mess is to do the hard work. Cut the gooferment down to a size we can afford (about 25% of what it is now). Free individuals and small biz from regulations desinged to protect the “players” (i.e., those supposedly regualted). Cut taxes.

But they won’t do that. The politicians, the congress crtiters, and the bureaucrats like things just the way they are.

Sheeple are suckers!

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RANT: Bush43 / Obama44 did the samething

Published on by reinkefjLeave a comment

http://apnews.myway.com/article/20090704/D997DI2G1.html

Venezuela assumes control of Spanish-owned bank

Jul 4, 12:22 AM (ET)

By FABIOLA SANCHEZ

*** begin quote ***

(AP) Venezuela’s Finance Minister Ali Rodriguez Araque, left, shakes hands with former president of…

*** begin quote ***

CARACAS, Venezuela (AP) – President Hugo Chavez’s government assumed control of Venezuela’s third-largest bank on Friday – making the state the largest player in the nation’s banking system.

*** end quote ***

And this is different than what Bush43 / Obama44 did?

Chavez = bad communist dictator!

Bush43 / Obama44 = “good guys”.

Why because they are “ours”?

Argh!

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GOVEROTRAGEOUS: No Justice in the Government’s Courts

Published on by reinkefjLeave a comment

*** begin quote ***

A federal judge approved the sale of G.M.’s assets to a new government-run company, removing a major hurdle to the auto maker’s plan to exit bankruptcy.

http://online.wsj.com#mod=djemalertNEWS

*** end quote ***

As a GM bodholder getting screwed, why would I expect justice from the government’s court? THe government seized my propoerty violating the rule of law. And, the government’s court approved the government’s plan in violation of the government’s law.

Tyranny!

But not a surprise.

Who protects the serfs from the “King”?

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MONEY: Banks aren’t safe

Published on by reinkefjLeave a comment

http://mises.org/story/3507

Dead Banks Walking
Mises Daily
by Doug French
Posted on 6/11/2009 12:00:00 AM

*** begin quote ***

On the other hand, if a legitimate banking system were in place, it would be based upon honoring property rights. Customers making a deposit in a bank expect the bank to guard, protect, and return their money — at a moment’s notice in the case of demand deposits. After all, that person has not traded a present good for a future good. The depositors believe the bank is warehousing the money for them and that it is available to them at any time. This deposit is not a loan — there is no fixed term, which would be required in the case of a loan — and availability hasn’t transferred.

However, we don’t have legitimate deposit banking but a fractionalized banking system that combines deposit banking with loan banking. Those that sympathize with fractionalized banking will contend that time certificate of deposit accounts are in essence loans from depositors, entitling the bankers to use the funds at their discretion for the term of the CD — just as long as the banker has the money ready when the CD matures. But if the money is lent secured by illiquid assets such as real estate, the banker is clearly not counting on those loans to satisfy expiring CDs and must count on attracting new CD money to pay off the old.

“There is no incentive for bank depositors to go to the trouble of determining a bank’s soundness if the government is going to guarantee deposits.”

Bankers, pressured to earn returns for shareholders and protected from bank runs by FDIC insurance, have over time lent not only more of their deposits but advanced the money for riskier projects. James Grant in a recent Grant’s Interest Rate Observer reminisced about National City Bank, which back in 1954 had only lent out 41 percent of its deposits, with less than one percent of the portfolio being real-estate loans.

By the end of last year, the total loan-to-deposit ratio for all US banks and thrifts was 87 percent, and 60 percent of all loans were classified as real-estate secured.

*** end quote ***

Bottom line: Don’t invest in any bank stock.

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NEWJERSEY: Take advice aimed at California. Now!

Published on by reinkefjLeave a comment

http://roomfordebate.blogs.nytimes.com/2009/06/21/california-bailout-reckless-or-inevitable/

June 21, 2009, 9:13 pm
California Bailout, Impossible or Inevitable?
By The Editors

*** begin quote ***

The Obama administration has told California not to expect a federal bailout. So how should the state deal with its $24.3 billion shortfall? Can it save itself? Or is it likely that the taxpayers of Iowa and Utah will end up picking up the tab of the state that represents an eighth of the nation’s economy? We asked Ron Paul and others for their views on what has to happen next.

*** end quote ***

Don’t Reward Exorbitance
Ron Paul, a United States representative from Texas and a medical doctor, is the founder of Campaign for Liberty. He ran for president in 2008 and is the author of “The Revolution: A Manifesto” and “End the Fed.”

*** begin quote ***

Californians know they are overtaxed

*** and ***

Instead of seeking federal aid, California should cut spending, rethink some of its unsustainable public pension programs, tame down the expensive and failed drug war, and repeal regulations that discourage economic growth. According to a 2008 piece by The Independent Institute’s William Shughart, the state owns more than 20,000 buildings and 6.7 million acres of land, a portion of which is “surplus” property that could be sold to private owners.

*** end quote ***

Sounds like advice that New Jersey could use as well!

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POLITICAL: THe new “inside trader”

Published on by reinkefjLeave a comment

http://www.suntimes.com/news/1620776,CST-NWS-durbin13.article

Durbin cashed out during big stock collapse
WASHINGTON | Asset sales came after meeting with Fed, Treasury chiefs
June 13, 2009

*** begin quote ***

As U.S. stock markets plummeted last September, the Senate’s No. 2 Democrat, Dick Durbin, sold more than $115,000 worth of stocks and mutual-fund shares and used much of the money to invest in Warren Buffett’s Berkshire Hathaway Inc.

The Illinois senator’s 2008 financial disclosure statement shows he sold mutual-fund shares worth $42,696 on Sept. 19, the day after then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke urged congressional leaders in a closed meeting to craft legislation to help financially troubled banks.

*** end quote ***

Of course, there was no connection between the meeting and his actions.

The fact that Paulson probably said “I wouldn’t be holding any equities” and Bernake “I’m printing money like there’s no tomorrow”, never entered into his thoughts.

Inside information. Insider trading.

Only applies to non “public servants”.

Yeah, right!

Poor Martha! I’m sure she did less than this fellow. She didn’t create the mess.

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LIBERTY: The Gooferment is in charge!

Published on by reinkefjLeave a comment

http://www.breitbart.com/article.php?id=D98NEVL80&show_article=1

High court won’t block Chrysler sale
Jun 9 06:27 PM US/Eastern

*** begin quote ***

WASHINGTON (AP) – The Supreme Court has cleared the way for Chrysler’s sale to Fiat, turning down a last-ditch bid by opponents of the deal.

The court said late Tuesday it had rejected a plea to block the sale of most of Chrysler’s assets to the Italian automaker. Chrysler, Fiat and the Obama administration had warned that the high court’s intervention could have scuttled the sale.

A federal appeals court in New York had earlier approved the sale, but gave opponents until Monday afternoon to try to get the Supreme Court to intervene.

*** end quote ***

The bondholders really couldn’t expect “justice” from a gooferment court.

Talk about a stacked deck!

The President’s plan taken before the Government’s Court. And, you expected a different result.

Watch the bond markets now! Nothing is safe from gooferment manipulation.

Now what happens to the Indiana pensioners who just got screwed?

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GOVEROTRAGEOUS: The White House hustled the Chrysler bankruptcy judge?

Published on by reinkefjLeave a comment

http://apps.detnews.com/apps/blogs/autosblog/index.php?blogid=746

Category: Chrysler bankruptcy
Posted by Manny Lopez (The Detroit News) on Mon, Jun 1, 2009 at 6:19 AM
Carefully orchestrated indeed

*** begin quote ***

The bankruptcy judge hearing the Chrysler case said Friday he wasn’t going to rule on the asset sale until today or Tuesday, but a call from the White House must have prompted him to move faster because he ruled in the wee hours of this morning.

See, the administration wanted to hold up Chrysler as an example of a “quick and speedy” bankruptcy, but Judge Arthur Gonzalez – deciding he needed more time to rule – put a crimp in those plans and left the White House looking at a GM filing today and Chrysler still in. Oops.

Remarkably, Gonzalez got all his work done just in time and filed his opinion after midnight to save the show.

I’m sure we’ll hear today when questioned that the White House had nothing to do with that timing, just as we’ve heard that it is not making management decisions at GM or Chrysler.

*** end quote ***

Please you expect “justice” from a government court when the President is involved?
Don’t make me laugh!
Sheeple!
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MONEY: If You Care About the Uninsured

Published on by reinkefjLeave a comment

http://www.reason.com/blog/show/133627.html

If You Care About the Uninsured, Please Drink Budweiser. Or Schlitz. Or Coors. Or Hamm’s. It Doesn’t Really Matter What Beer You Drink, Only That You Drink a Highly Taxed Beer. And If You Really Care About The Uninsured, Why Not Drink a Case of Beer?

Nick Gillespie | May 21, 2009, 7:21am

*** begin quote ***

Is it too late to take it all back, this loose talk about legalizing “vices” and then taxing them?

Some details on a “proposed beer tax” currently working its way through Congress like a kidney stone through Ted Kennedy’s man-parts. It’s all over but the shouting, screaming, and gnashing of teeth:

   Consumers in the United States may have to hand over nearly $2 more for a case of beer to help provide health insurance for all.

   Details of the proposed beer tax are described in a Senate Finance Committee document that will be used to brief lawmakers Wednesday at a closed-door meeting.

   Taxes on wine and hard liquor would also go up. And there might be a new tax on soda and other sugary drinks blamed for contributing to obesity. No taxes on diet drinks, however.

   Beer taxes would go up by 48 cents a six-pack, wine taxes would rise by 49 cents per bottle, and the tax on hard liquor would increase by 40 cents per fifth. Proceeds from the new taxes would help cover an estimated 50 million uninsured Americans.

*** end quote ***

And, of course, there won’t be any discussion of:

(1) Why do beer drinkers have to pay for the “uninsured”?

(2) Who is in the 50M “uninsured”? (Young people, people who could afford insurance, illegal aliens, UAW pensioners)

(3) Why is the government in the health insurance business in the first place?

Argh!

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POLITICAL: CA debt is a Federal problem?

Published on by reinkefjLeave a comment

http://apnews.myway.com/article/20090527/D98EPK2O1.html  

Calif. wants federal government to back its loans
May 27, 3:52 PM (ET)
By JUDY LIN

*** begin quote ***

SACRAMENTO, Calif. (AP) – If AIG was too big to fail, how about the world’s eighth-largest economy?

In a move with only one modern-day precedent, California Gov. Arnold Schwarzenegger and Democratic lawmakers are pressing the Obama administration and members of Congress for federal loan guarantees to help the state out of a desperate, multibillion-dollar jam.

California is not asking for cash, like the tens of billions given to AIG, General Motors or Morgan Stanley. (MS) Instead, the state with the worst credit rating in the nation is asking that Washington act as a sort of co-signer on the state’s borrowing, to be backed up with money from the Troubled Asset Relief Program.

*** end quote ***

No!

The S&L crisis started with Federal guarantees.

And, why should the taxpayers be bailing out CA bond holdrs?

Sorry, that the breaks.

Maybe CA should elect some politicians with fiscal responsibility.

What happens when and if CA goes under?

Has it ever happened before?

Maybe CA should secede? Or the USA from it.

Like voting it off the continent?

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GOVEROTRAGEOUS: Making an Irish company with a U.S. subsidiary

Published on by reinkefjLeave a comment

http://washingtontimes.com/news/2009/may/05/businesses-pan-obamas-tax-crackdown-plan/

Businesses pan tax crackdown plan
Say proposal to close loopholes will drive jobs out of the country
By Jon Ward (Contact) | Tuesday, May 5, 2009

*** begin quote ***

“Obama’s proposal will shove jobs and capital out of America and into foreign countries,” said Americans for Tax Reform, pointing out that U.S. companies already pay a higher corporate tax rate of 40 percent domestically than in many other countries, and that forcing them to pay this rate on profits they make internationally will drive operations out of the country.

“It’s a relatively simple matter for a U.S. company with an Irish subsidiary to become an Irish company with a U.S. subsidiary,” the anti-tax group said.

*** end quote ***

Politicians think that no one will adapt to their latest hair brained scheme.

I hope someone is keeping track of this little “project’s” results.

We should have a zero corporate tax rate. And, everyone would be moving here!

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LIBERTY: Schiff on the Chrysler bankruptcy

Published on by reinkefjLeave a comment

Peter Schiff on the Chrysler bankruptcy.

In a seven minute video, he makes some excellent points: turing Chrysler into the Post Office or Amtrak while trying to keep the jobs. Unfortunately, those resource tied up in Chrysler must be freed up. And, the government’s bankruptcy court will be at the end of it all the government’s bankruptcy court.

I agree that we have to stop the government from guarantying things — car warranties is another unwarranted intrusion.

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RANT: Pelosi seeks to divert attention!

Published on by reinkefjLeave a comment

http://www.bloomberg.com/apps/news?pid=20601109&sid=aE68O.jaWO4E&refer=home

Pelosi Wall Street Probe Follows Pecora After Crash (Update1)
By Mark Pittman and Laura Litvan

*** begin quote ***

April 21 (Bloomberg) — Wall Street may be heading for the deepest investigation of its practices since a congressional panel’s probe of abuses following the 1929 stock market crash.

House Speaker Nancy Pelosi plans to push for a comprehensive inquiry, saying that three-quarters of Americans want to know what led to the bankruptcy of Lehman Brothers Holdings Inc. and the collapse of Bear Stearns Cos. and Merrill Lynch & Co. She favors one patterned after Senate Banking Committee hearings led by Ferdinand Pecora starting in 1933, according to her spokesman, Nadeam Elshami.

*** end quote ***

And who investigates Congress?

Because, imho, “their fingerprints” are all over this mess — Dodd, Franks, Pelosi, and Reid!

Bush doesn’t escape clean, but they did block him.

The SEC, FTC, FDIC, and the Justice Department could have “blown the whistle”.

There’s enough blame to go around, but Pelosi is seeking to once again divert attention from her own troubles and that of her fellow congress critters.

Throw them all out!

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MONEY: Obama’s “Bailout Bonds”

Published on by reinkefjLeave a comment

http://www.lewrockwell.com/rockwell/bailout-bonds.html

Bailout Bonds?
by Llewellyn H. Rockwell, Jr.

*** begin quote ***

The Obama administration is cajoling investment companies to create bailout bonds. These would be similar to the bonds that wartime presidents created to find sucker-investors for their wars. Americans were browbeaten into buying them as a patriotic duty. So too those who say “yes, we can” to the bailouts will be asked to do their patriotic duty, and buy the debt of loser companies.

It’s all part of the war on depression, which is destined to be as successful as the war on drugs. But, hey, if it is a good investment, why not buy bailout bonds? Well, there’s a problem. The bonds represent credit extended to companies and projects that are proven market failures. Creating these bonds is a way of institutionalizing the principle of buying low and selling lower.

*** end quote ***

# – # – #

An even MORE important point is who’s going to buy ANY of the US Gooferment debt?

When the pundits say ONE or TWO Trillion Dollar Deficit, (that means they haven’t or can’t tax it to zero), there are really only TWO choices: INFLATION to monetize the debt (A fancy way to say “we’re going to screw everyone who hold dollars”; that’s why the Chinese with their 5T$ are upset. Inflation is a tax on every dollar that currently exists. How many do you have?) —-OR—- BORROW it. (The Treasury issue notes and bonds, basically IOUs, to folk who think they might get their money back with interest.

Who’s going to buy 2T$ worth of debt?

Not the unemployed. Not the “scared money”. Not the Chinese. Not the retirees who have taken a 50% haircut in the market. Not those with 401ks and IRA that have taken the same haircut or worse.

Who else has savings to loan Uncle Sam?

Watch for the interest rates to rise. See bond buyers KNOW their biggest risk is inflation. For those of us who lived thru the Carter Stagflation, we remember the Treasury couldn’t sell 15% tbills because price inflation was running 20%. History WILL repeat itself.

Gold and silver. Gold and silver.

# # # # #

RANT: We don’t need gooferment “help”

Published on by reinkefjLeave a comment

http://www.lewrockwell.com/blog/lewrw/archives/026190.html

The End of the “Voucher” Argument
Posted by Thomas DiLorenzo at April 4, 2009 05:09 PM

*** begin quote ***

Proponents of a form of “market socialism” known as “school vouchers” have long ignored the argument that along with government money would come government control of private schools that accept voucher students. This would in turn destroy the private schools, eventually. This argument against vouchers was always unanswerable, but the current antics of the Obammunists should prove once and for all what a hoax it is to call voucher welfare a “libertarian” idea.

*** end quote ***

As a past fan of “vouchers”, I thought they could be useful as a transition mechanism from the Socialistic “School” system we currently have to a Free Market version. Now that we’ve seen the damage the Gooferment can do with its rules (i.e., “mark to market”; “short sale uptick rule”; taxe preferences) and its help (i.e., killing one Lehman but “saving” a competitor AIG; GM; the “bonus” executives).

In short, we just have to close it down! It’s too big, too powerful, and too dangerous.

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