Bits Bucket For November 26, 2009
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The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Back in the early 1990s, when you had 2,000 murders a year in New York, taxes were higher, the economy was far worse, and the previous housing bubble had burst, I was optimistic.
In fact, for Thanksgiving I put together a spreadsheet comparing the “good old days” of the 1950s and 1960s to the “recent bad years.” By any measure other than crime and family (do the children have both their parents) people were better off in the early 1990s. Income, poverty, housing, other goods and services they could afford, education, pollution, health, etc.
Although things were not good, the direction was better — and just a few years after “Reagan taught us deficits don’t matter” there was a bipartisan effort to get the country on sound financial footing. This was before all the state and local pension enhancements and underfunded, before consumer debts went off the charts. We were coming out of recession with an information technology boom that, before it turned into a bubble, produced real benefits (including this blog).
I’m not as optimistic right now. In fact, I’m pretty pissed off, even on Thanksgiving. Now that the original “Greed” decade has been followed by two more, we’re broke. And it’s hard to avoid being a part of that “we,” even if you didn’t participate in the Greed. For those whose personal lives are in order, and who are used to living well on less, the damage will come from soaring taxes and declining public services and benefits.
Were it the case that people would just have to get used to living as they did in the early 1990s or 1970s (plus the internet), that would lead to a sullen but functional country. But such is the sense of entitlement of those with power, and their unwillingness to contribute to anything other than themselves, that we may be heading for an institutional collapse.
such is the sense of entitlement of those with power, and their unwillingness to contribute to anything other than themselves, that we may be heading for an institutional collapse.
If the institutions aren’t serving the needs of the people, then their collapse would be cause for celebration.
Agreed. And I think the higher taxes and less services will be the wake up call on the productive members of our Republic. The subgroup who, without thought, voted for congress people who passed new unconsitutional spending, will regret those votes.
There will be a decade of high taxes, combined with a brain drain of people fleeing the taxes to work in other countries. It will be a vicious cycle. The revolt against big spending has already started and it will take awhile, maybe a decade if we are lucky, to return to individual responsibiity.
Lots of people are thinking “I should have sold those stocks and bought gold in 1999 and stashed it away undergound.”
I bought gold back in the mid 90s.
They thought I was crazy back then. Had about 15 years of abuse. Most of those people got creamed in dot com bubble, the stock bubble and the housing bubble.
I hated Rubin.
The subgroup who, without thought, voted for congress people who passed new unconsitutional spending, will regret those votes.
==========
Remember 50% of the country pays $0 income tax. That 50% will regret nothing and vote for even more “free stuff” every election.
but they do pay
sales tax, payroll tax, and property tax (even if they rent they are the ones paying property tax it just doesn’t get recorded)
They also pay the highest penalty for the stealth inflation tax as they can’t hedge their incomes.
Further to the point to shed facts and truth on EddieTards ideotology, the bottom 50% pay a larger portion of their incomes in taxes and fees than those in the upper 50%.
There will be a decade of “higher” taxes, where taxes are the same rate as they were under that socialist Ronald Reagan who thought that deficits didn’t matter. There will be a brain drain of people who flee the taxes by working in other countries. They will not be missed, and instead will be replaced by people just as competent who will make a little less money but still make enough to live very comfortably. The extra income will be used to create new jobs and restock the R&D pipeline. It will take a decade but if we are lucky, there will be a revolt away from the Jack Welch model of slash/burn/fail/golden parachute/see ya suckers, and a return to corporate responsibility to where a company can operate for longer than one quarter without needing to slash jobs or ask for a bailout.
The sad thing is that you really believe this garbage.
+1 for Eddie
As one of those brainy techie people, I have to say that if they jack up taxes by a large amount, and I can find a better alternative, I’ll drop this country like a hot rock.
It’s been painful to come to the understanding over the decades that this country doesn’t give a crap about me, and is ruled by morons and thieves. It doesn’t make any sense to try to prop it up. I suspect most eggheads have reached the same conclusion, and will simply move to where they are treated the best. The places they leave will have to make due with the second stringers. Given the broad streak of anti-intellectualism in the US, most people won’t notice the difference, so no harm done. We won’t be missed.
All this assumes there is someplace better to flee to. There may be no such place.
You think taxes are high here?
You think you can just waltz to another country?
You think foreigners (which will be you) are treated better than here?
Some of you need to get out more often.
Don’t confuse them with facts about how the world really is, eco. That will ruin their ‘I’ll just run away to never-never land’ fantasies.
Well, you could always go to Dubai, like Halliburton did.
How’s that globalism working out, now?
If this ship’s going down, I’m going down with it. I love this country, always have. I’m just sorry I didn’t do more for it. My heart is breaking over the way it has been treated and reviled. I pray for an opportunity to even the score with a politician or bankster.
You think you can just waltz to another country?
You think foreigners (which will be you) are treated better than here?
Some of you need to get out more often.
I don’t need to add anything to these great points.
I live in Japan and teach English. If you have skills in a certain industry and want to move to Japan…too bad. They don’t want you here.
I love Japan. The health care is better, my son goes to a great school, overall the public sector services are far better than in the US.
But, the language is really hard to learn, and you never forget you’re a foreigner. I read a lot online about Americans who think they can just up and leave the US. It is much harder than you think it is. Much, much harder.
The world doesn’t really need waves of Americans with their sense of entitlement and lack of foreign language skills. How many Japanese or Chinese who don’t speak any English work in your company?
The last several posts make home a sweet home in the god old USA. If you got gold, then no itchin to be bitchin.
“As one of those brainy techie people, I have to say that if they jack up taxes by a large amount, and I can find a better alternative, I’ll drop this country like a hot rock.”
Your wages are already getting cut in half by the in-sourcing of cheap Indian labor. Just ask my cousin. He and his wife are programmers working for the same company for 15 years since graduating from college. Now, they’re training these new hires to do their jobs at half the rate. Soon, they’ll be let go. Taxes are the last thing you need to worry about.
oops “god”…I meant “gold.”…No, I meant “good!”
I share your anger WT Economist . I don’t know if you remember the poster who use to post a couple of years ago ,even before the Tarp Bail Out ,but he would simply post “We are Screwed .” That poster use to crack me up at the time because he would always make that post at the most perfect times as if the sum up the discussions .
People who were not part of the Greed game are getting screwed in one way or another .But look at how many people got screwed after 1929 who never even invested in stock in their life yet they lost their life savings when the runs on the banks occurred when they didn’t have FDIC Insurance in those days . Look at how people got screwed because of the Dust Bowl ,a
natural disaster that ended up being a drought that lasted 10 years .
People actually died because they got too much dust in their lungs .
It’s hard to watch the Government actually rewarding the Greed Machine while they almost flaunt their bonuses .
Today I’m going to have a big steak with my dog ,and in terms of
being thankful ,I’m still eating better than a great portion of the World .
The part that is maddening is that many of the Wall Street executives most directly responsible for the crisis are swimming in multimillion dollar bonuses one year later, while Main Street enjoys life under the bus. This is not a just state of affairs. I most certainly hope the PTB feel compelled by popular demand to restore justice before this crisis is over.
The lack of justice is the hardest pill to swallow but the backlash has begun. It will grow.
The big money, Reagan/Rubin/Clinton/Bush/Fed, Wall Street, supply side, cabal became too greedy, too callous, reached too far and the bailout of the rich sealed the deal.
Part of the meaning of justice involves the concepts of equity and fairness. If the criminally negligent super rich are given taxpayer money, is it any wonder that the shafted middle class scream for their pound of flesh? Even if it is not “right”, it’s harder to argue that it is not equatable, fair or even just in light of our capitalism’s perversion.
Looking at the context: If a criminal gives BOTH of his partners a share of the stolen money is that not “just” in the concept of their relationship? If he only gives to one and not the other will someone feel cheated? This is what we face.
Will we turn more “socialistic” whatever that is? I think the recent looting of the middle class has almost assured that many disenfranchised will demand equatable measures and they will demand them under the banner of justice.
You hit the nail on the head, Professor Bear. It is beyond outrageous that those responsible for the crisis not only escaped prosecution, but are enjoying even more massive bonuses as the majority of the country pays for the consequences of their grotesquely irresponsible behaviors. There’s something really, really wrong with this picture.
WT:
A few vids down what would you sell your laptop for if you couldn’t back up your files.
http://tastyblogsnack.com/
The laptop is equivalent to most peoples life savings and identity today……..scary thought
————————————————————
yet they lost their life savings when the runs on the banks occurred when they didn’t have FDIC Insurance in those days
The Dust Bowl was a minor natural disaster (drought) that was made major by the fact that farmers did not rotate their crops, plant wind breaks and left their fields as dirt after harvesting.
“Scorched earth” as it were. In other words, they extracted everything they could without thought for bad luck. Remind you of something?
You have a lucky and loved dog. Our dog joined us for turkey and all the trimmings.
I’m not as optimistic right now. In fact, I’m pretty pissed off, even on Thanksgiving.
Me Too
I can list so many things that I am not thankful for?
How Thanksgiving about.
“On June 20, 1676, the governing council of Charlestown, Massachusetts, held a meeting to determine how best to express thanks for the good fortune that had seen their community securely established. By unanimous vote they instructed Edward Rawson, the clerk, to proclaim June 29 as a day of thanksgiving.”
“It is notable that this thanksgiving celebration probably did not include the Indians, as the celebration was meant partly to be in recognition of the colonists’ recent victory over the “heathen natives”. October of 1777 marked the first time that all 13 colonies joined in a thanksgiving celebration. It also commemorated the patriotic victory over the British at Saratoga. But it was a one-time affair.”
“George Washington later proclaimed a National Day of Thanksgiving in 1789″
Uh, How Thanksgiving CAME about.
I’m with the youngster’s, we are watching Snoopy fight with the folding chair…all the adults in Charlie Brown’s Thanksgiving sound like this:
BLAH,BLAH,Blah…Wonk, Wonk WONK! (door slams shut)
“I’m not as optimistic right now. In fact, I’m pretty pissed off, even on Thanksgiving.”
Sorry to read this. I hope between now and year end your optimism comes back. I still hold out hope for my own optimism to return, or at least to wake up from its stupor.
P.S. I hope I have not increased anyone’s anger level through my various posts below. As for myself, I feel a sense of catharsis now that my daily rant is behind me. Time now to try my hand at cooking some chicken and enjoying my family.
Housing bubble anger notwithstanding, I sincerely feel thankful for much of what we tend to take for granted in America. Among other things, I am grateful to Ben Jones for providing this virtual town hall meeting forum for us to pool our thoughts and sift through the cryptic mystery of MSM-reported FIRE propaganda to form our own independent opinions. So long as America’s right to free speech and open discourse remains intact, she can hope to survive a period of terrible financial policy making to see the dawning of a better era.
Happy Thanksgiving to all who post and read here!
So what if you increase someones anger PB ,the truth sets a person free in the final analysis . I’m thankful that you have been around all these years with your posts …..so there . We are all thankful
for Ben Jones and all the other people who make this blog what it is .
I am as baffled as the next guy on how all these problems are going to be resolved so we can move on to a better era .
In the meantime ,Happy Thanksgiving to you all from me also .
I’m thankful for your great posts over the years of this blog as well. It takes a generous spirit to share the perspective gained from a wealth of experience as freely as you have.
“…We are all thankful
for Ben Jones and all the other people who make this blog what it is”
Here Here! (Hwy pours another glass of red red fine)
And Hwy I would like to tip my glass to you ,except I got Baileys
in coffee instead of wine .
I’m thankful for Professor Bear’s posts as well. I do a lot more reading than posting, and his have provided me hours upon hours of entertainment. Though he might not know it, there are those of us who, when we cannot sleep, turn on the computer late at night and read many of his late posts deep down at the bottom of the threads. Happy Thanksgiving to everyone- even those I am at odds with.
Why would a central banker like Geithner want to endanger his future career opportunities at Megabank, Inc by justifiably punishing the subprime mortgage lending kingpins who precipitated this financial crisis?
Whose side is Obama on?
By Steven Pearlstein
Washington Post Staff Writer
Wednesday, November 25, 2009
There is much to be thankful for this holiday, including the fact that we live in a country that has been remarkably good-natured, generous and pragmatic in the face of a nasty economic crisis. The rates of unemployment and under-employment have already hit a combined 17 percent. Household wealth has been significantly diminished. Reluctantly, we agreed to take on more public debt to finance a massive bailout of a financial sector that badly let us down. We stepped up our household savings and embraced the new frugality.
What really sticks in our craw, however, is that while most of the country is hunkered down, Wall Street continues to feast on a bounty of trading profits. You’d expect that a new liberal Democratic president would find a way to give voice to this populist outrage and constructively channel this public anger. But too often, the response from the administration has been to try to convince us that there’s little we can do, or should do, to ensure that the economic harvest is more equitably distributed. Now, the White House and congressional leaders find themselves scrambling to get ahead of a growing political backlash that threatens to upend their carefully calibrated agenda, not to mention their political fortunes.
Fairly or unfairly, the official who has come to personify this let-them-eat-stuffing attitude is Treasury Secretary Tim Geithner, who can’t seem to decide whose side of the buffet table he’s really on. It was Geithner who, at the height of the financial crisis last year, was able to best articulate the unpleasant truth that we could save the financial system or we could punish the banks but we couldn’t do both at the same time. But now that the system has been saved, he seems to have lost his appetite for retribution.
…
Mr. Jones,
A sincere thank you for this blog and all the work you have put into it through the years. It is greatly appreciated!
Also to all of the HBBers thanks to you all! We have our opinions differing many times. However it is a good thing that we have a place to banter back and forth.
Happy Thanksgiving, to you and yours! Enjoy what you have, we only go around once… as far as we know!
+1 wmbz.
Here Here
Thank you Mr. Jones for you relentless efforts towards maintaining this blog. Please enjoy your Thanks Giving desert with an extra scoop of ice cream.You deserve it immensely.
Happy Thanks Giving
+1 wmbz….
Amen to that wmbz.
You can get anything you want at Alice’s Restaurant
You can get anything you want at Alice’s Restaurant
Walk right in it’s around the back
Just a half a mile from the railroad track
You can get anything you want at Alice’s Restaurant
Well said wmbz and Happy Thanksgiving to all.
Sup, I thought Dubai had unlimited cash flow?
Footballers and film stars caught out as Dubai crash hits new low.
David Beckham and Brad Pitt are believed to be among the celebrities and sportsmen who bought villas in Palm Jumeirah in Dubai, a luxury development that juts out into the Gulf. But when the property bubble burst this year, residents saw the value of their investments collapse. Yesterday their situation worsened as Nakheel, the developer, and its state-owned parent made a request to suspend debt repayments.
The statement rocked credit mar-kets around the world and prompted analysts to question whether Dubai, the most populous of the United Arab Emirates, will be able to meet its obligations. The concern is that Nakheel will be unable to continue developing the Palm and neighbouring projects, leaving Dubai and its coastal waters an ugly, unfinished construction site.
When the 2,000 villas and townhouses on the Palm went on sale in 2002, they sold out in a month. Passing through en route to the World Cup in Japan and Korea were the England football team, and several players stopped off to sign up for £1 million properties on the artificial island, with Michael Owen, David James, Joe Cole, Andy Cole and Kieron Dyer, it was reported, joining Beckham on the beaches. Pitt and Angelina Jolie are also said to have bought homes.
Joe Cole was one of the few who got out in time. The Chelsea player sold his villa for about $3.5 million (£2.1 million) last summer as Dubai’s property bubble approached bursting point.
Nakheel is now in deep trouble and struggling to cover its debts. Dubai World, a government conglomerate that owns the developer, is $60 billion in the red. Yesterday’s announcement by the Dubai government that it wishes to suspend repayment of Dubai World’s debts for six months, including a $4 billion bond held by Nakheel that was due to be repaid next month, is the clearest indication that the emirate can no longer meet its obligations.
Work has stopped on several major projects around the city and companies have had to accept huge cuts in the value of their contracts. More than 400 projects worth more than $300 billion are said to have been cancelled or shut down as a result of the property collapse.
http://business.timesonline.co.uk/tol/business/markets/the_gulf/article6932539.ece
Everyone wanted to live in Dubai because …?
…it’s different there?
Happy Thanksgiving everybody.
Indoor skiing and lots of hotties.
…they aren’t making any more land?
…they aren’t making any more land?
They sure aren’t making any more islands
Hey you got the reference.
I’m looking at that pic of the Palm Islands now. I can identify the villas on the palm fronds and the high-rises on the outer breakwater island and the trunk, but what is that dot-looking stuff in the middle? Wiki is not helpful. It looks like fountain jets, arranged in Arabic script. Does anyone know what that is?
Those building are 3 meters above sea level. It would be really funny-ironic if global warming raised to ocean levels enough to swamp The Palm, which probably involves lots of oil money.
Global warming? LOLZ.
It’s been too hot in Rio for November and both the left and right here say it is because of global warming.
Whether they are right or wrong I don’t know but it’s interesting that in Brazil, the opinions on global warming do not seem to follow economic or political lines.
Now, in Brazil, do they think global warming has to do with the mean old US polluters, or is there maybe just a teensy feeling that eviscerating the rain forest might also have something to do with it? No? I didn’t think so.
It’s that equator thingy that lies close by and attracts lots of sunlight.
I’ ll bet most of miami beach houses are less then that above high tide…
Those building are 3 meters above sea level. It would be really funny-ironic if global warming raised to ocean levels enough to swamp The Palm
Now, in Brazil, do they think global warming has to do with the mean old US polluters,
Of course they think that because the USA is the biggest polluter in the world the past 50 years. Gosh.
is there maybe just a teensy feeling that eviscerating the rain forest might also have something to do with it? No? I didn’t think so.
Then you think wrong. They know it, and if they act like they don’t, you can be damn sure I remind them.
The nightlife? All those bikinis all that booze.
Yea, that must have been it! Expose a bare breast over there, they love it! Everybody’s doing it.
Expose a bare breast over there, they love it! Everybody’s doing it.
It’s a misperception. Brazilian women don’t go topless at the beach like Euros or Gringos. Much less. It is the largest Catholic country in the world. Carnival it’s OK in some situations.
At the beach: Tiny bikini’s yess. Topless no.
Brazilian Booties raise the temp.
A blast from the past:
Forty-or-so years ago the Colorado River (The River) was THE IN place to go, meaning people went there because other people went there.
What did these people do there? Mostly they tried to keep cool. The guys I knew told me they immersed themselves up to their necks in the river and drank beer all day long because it was too hot to do anything else. At night they slept on top of their sleeping bags rather than inside them.
And they willingly drove 300 miles across the Southern California desert in order to do this.
I remember that. Everyone going to Havasu…is that really all they did? I thought they water-skied or something.
Beer by the case. Ski boats, scores of them,
nosed into the river bank during the heat of the day. Yep, I was there. The girls made
it all worth it…
Enjoy your meal, Montana. I’ll raise a glass to you!
Some nice bottom land for you rancher. The hub and I went for a walk before I started the turkey today.
WOW what a nice place to build Luxury condozes and get rid of those smelly climate warming animals.
Combotech-What do you mean USE to go to the river?
I went jet skiing there and had a blast and my liver probably didn’t like it. I know folks from San Diego who at least once a month.
Dubai has only two seasons, cool and really hot. The temperature is around 88 to 90 till end April, and gradually starts increasing. During June to October the temperature will vary from 95 to 104. There are days where the temperature could go up to 120. In the summer the humidity is 90%. I know a family where the husband and wife teach at the school attached to the embassy and at the women’s university there. Last summer the husband and the three young children came to Eau Claire to escape the heat; otherwise, the children are cooped up in the apartment in the summer with nothing to do.
They can go indoor skiing.
“Dubai has only two seasons, cool and really hot. The temperature is around 88 to 90 till end April, and gradually starts increasing. During June to October the temperature will vary from 95 to 104. There are days where the temperature could go up to 120. In the summer the humidity is 90%.”
That sounds like Phoenix with Houston’s humidity. Where do I sign up for those 8 month sauna baths?
Because it’s a pit stop for the Amazing Race
- Dubai real estate always goes up.
- Dubai real estate is the best investment.
- Buy Dubai now or get priced out forever.
- Everyone needs a place to live in Dubai.
Because Sinatra sang “Du-bai Du-bai Du”?
Possible international real estate investor’s sales pitch:
“Do buy Dubai!”
I’m Dubai-ous about their future.
Passing through en route to the World Cup in Japan and Korea were the England football team, and several players stopped off to sign up for £1 million properties on the artificial island,
Does anyone else get a sort of mild disgust when reading stories like this?
Does anyone else get a sort of mild disgust when reading stories like this?
Yes. That’s why I don’t go to sporting events, don’t buy jerseys (or other memorabilia), and don’t pay for cable. At least I know that it’s not my money (outside of tax dollars - sigh) that is being doled out by the millions to professional athletes.
“…don’t buy jerseys (or other memorabilia)…”
I’d love to own a business where my customers (fans, in this case) PAY ME MONEY so they can wear clothing I sell to them that ADVERTISES MY PRODUCT.
Doesn’t get much better than this…
Well, it does get a little better if I can convince a city to build a stadium (using its tax dollars, of course) so I can field my team.
Designer clothing is worse than team jerseys. Example: 5-6 years ago, Timberland clothing suddenly and inexplicably became very popular with the “urban” crowd. Right about then, the Timberland logo began suddenly and inexplicably to grow. The little one-inch tree-in-a-circle on the hem of a shirt grew to foot-wide splash on a T-shirt. The logo on the heel of a workboot was suddenly large enough to fill the entire surface of the tongue. The tongue also was designed to stick out of the boot, not be covered by the laces. The urban crowd was delighted. Now they could be spotted as “cool” from half a block away. Not that Timberland was complaining…
don’t buy jerseys (or other memorabilia) ??
IMO, it tells you how mentally compromised many people are…I just don’t understand how wearing Romo’s jersey makes you feel good…
Neither do I. Manning, on the other hand…
I don’t think Brad Pitt of Dave Beckham are staying up at night worrying about losing $1M on a vacation house. Everyone should have known the end of Dubai was near when CNBC did that show about it last year. CNBC shows are like the #1 pre-season ranking by SI….the kiss of death.
Type A folks can’t stand losing anything. They’d rather burn the place to the ground to ensure nobody else enjoys it especially at a lower price.
Then how many houses will Nicolas Cage have to burn to enjoy the satisfaction of never having to sell below the prices he paid?
“David Beckham and Brad Pitt are believed to be among the celebrities and sportsmen who bought villas in Palm Jumeirah in Dubai, a luxury development that juts out into the Gulf. But when the property bubble burst this year, residents saw the value of their investments collapse.”
Schweet! My sick hunger for celebrity Schadenfreude has once again been sated.
What bugs me is the way that these elites “stopped by” to snap up one of these luxury villas, much as I would stop by the store for a quart of milk on the way home. Can’t these guys build new hospital wings or something?
What are you, a damn socialeest/commie!
(BTW, for those of you who might feel inclined to point out how much the wealthy give to charity, you might also note that charity donation have been steadily declining and not just recently)
Since Haliburton decided to make Dubai their world headquarters, I wonder if this makes them the largest FB in the world?
DP World Not Included in Dubai Restructuring Process (Update1)
Nov. 26 (Bloomberg) — DP World Ltd., the Middle East’s biggest port operator, isn’t included in the restructuring process announced for Dubai World, its parent company, the government of Dubai said in a statement to Nasdaq Dubai today.
Dubai World, with $59 billion of liabilities, is seeking to delay debt payments, sending contracts to protect the emirate against default surging yesterday by the most since they began trading in January. The state-controlled company will ask all creditors for a “standstill” agreement as it negotiates to extend maturities, including $3.52 billion of Islamic bonds due on Dec. 14 of its property unit Nakheel PJSC, the builder of palm tree-shaped islands.
Dubai, the second-biggest of seven states that make up the United Arab Emirates, and its government-owned companies borrowed $80 billion to finance its transformation into a financial and tourist hub before credit markets froze. The Department of Finance said yesterday it raised an additional $5 billion from two Abu Dhabi lenders as part of its $20 billion Dubai support fund geared toward meeting its financial obligations.
Some $18 billion of Dubai World’s debt is with companies such as DP World that have enough cashflow to service their obligations, two bankers familiar with Dubai World’s finances, who declined to be identified, said last month.
No one at DP World was immediately available for comment when contacted by Bloomberg News. Today is the start of a four- day Islamic holiday in the U.A.E.
Isn’t that nice? Especially after Ft. Hood. I feel so warm and fuzzy and, well, global.
http://latimesblogs.latimes.com/washington/2009/11/on-thanksgiving-eve-barack-obamas-special-message-to-muslims.html
The official story has the pilgrims boarding the Mayflower, coming to America and establishing the Plymouth Colony in the winter of 1620-21. This first winter is hard, and half the colonists die. But the survivors are hard working and tenacious, and they learn new farming techniques from the Indians. The harvest of 1621 is bountiful. The Pilgrims hold a celebration, and give thanks to God. They are grateful for the wonderful new abundant land He has given them.
Actually, the harvest feast with the Wampanog indians in the autumn of 1621 did not mean the Pilgrim’s perpetual food shortage was over. They operated under a socialist system that was a disaster. A few Pilgrims worked their butts off for the common good while many laid back and enjoyed the “freebies” provided by the industrious. (Much like today!)
The 1622 harvest was awful. In 1623 Governor Bradford abolished the socialist system and put the competitive free market to work. Bingo! Hard times and food shortages soon became history.
http://mises.org/daily/336
They learned in 2 years what it will take Americans to learn in 20.
“…In 1623 Governor Bradford abolished the socialist system and put the competitive free market to work…”
And two hundred years later the imported African Citizens in South Carolina started singing “Lord, where on the road to freedom”
“And two hundred years later the imported African Citizens in South Carolina started singing “Lord, where on the road to freedom”
Pray tell, who sold those poor souls into slavery? I’m sure an enlighten person such as yourself knows the answer.
I blame Boooooosh.
Is everything inside your narrow slice of the planet a battle of Demorats against the Republitards?
If so, I suggest you start your own blog. Your posts are too difficult to ignore, especially since they eat up a lot of band width relative to the very small amount of useful information they provide.
For a second I thought you were talking about Exeter…I had to scroll up.
“Pray tell, who sold those poor souls into slavery?”
Uh, slave traders, perhaps?
Pray tell, who bought the slaves? Can’t have a market without customers.
“A few Pilgrims worked their butts off for the common good while many laid back and enjoyed the “freebies” provided by the industrious. (Much like today!)”
The ones who refused to work were wealthy aristocrats/investors for whom manual labor was beneath them. (yes, you can google it)
So yes! Much like today!
Oh, and the first slaves in the American Colonies were European and British criminals.
White… criminals.
Ack - been awake since 4:00 a.m. or so with the turkey doings….couldn’t get back to sleep but the house smells GREAT ! Chemist turned chef turns out to be a great turkey maker…..I can hardly wait until the relatives come over and the real Thanksgiving can begin.
Black beans and Soccer just don’t cut it today.
Come home, then.
“Chemist turned chef turns out to be a great turkey maker…”
No surprises there, as cooking is pretty much a chemical process
Yes, he keeps saying that with a big smile. Plus, he’s been watching Emeril & Martha so our turkey is beautifully surrounded by grapes and is on a bed of green lettuce fanned out…
My own chemistry experiment is now underway. I cannot wait for the chance to sample the results…
Fannie Mae to tighten lending standards
Banks will demand higher credit scores, lower borrower debt.
Washington Post
Fannie Mae, the giant mortgage finance company that helps shape lending guidelines, plans next month to raise minimum credit score requirements and limit the amount of overall debt that borrowers can carry relative to their incomes.
The changes are the latest in a series of crackdowns by the mortgage industry and could surprise some prospective home buyers. The industry is rolling back loose lending standards that led to the mortgage meltdown and the subsequent economic crisis. But the fear is that if the industry becomes too restrictive, it will freeze out too many borrowers and impede an economic recovery.
Already, lending by U.S. banks plunged by 2.8 percent in the third quarter, the largest drop since at least 1984, according to federal data released this week. Some of that retrenchment is fostered by District-based Fannie Mae and McLean-based Freddie Mac, which refuse to buy loans that do not meet their rules, meaning lenders have to abide by their guidelines or else lose a key source of financing.
Starting Dec. 12, the automated system that Fannie Mae uses to approve loans will reject borrowers who have at least a 20 percent down payment but whose credit scores fall below 620 out of 850. Previously, the cut-off was 580.
Wow, so now instead of lending to anyone with a pulse, it’s anyone with a pulse who hasn’t defaulted on more than 6 credit cards in the past 12 months. Talk about draconian lending standards.
Tightening standards = lower home prices = more hits to banks that hold houses as collateral = more bank writedowns = more vanishing money.
Going from 580 to 620 fico score is not much tightening. If they were serious about lending money to people who are going to pay it back, the cutoff would be 700.
“Going from 580 to 620 fico score is not much tightening.”
They have to start somewhere.
What especially interests me is the 20% down requirement.
No problemo. FHA stands ready to provide credit to Fannie’s rejects. At 3.5% down, which can also be borrowed!
What especially interests me is the 20% down requirement.
Ding ding ding. That 20% is far harder to acquire than a 620 FICO. My question is — will they accept a piggyback loan from another bank or FHA as that 20%? Maybe that’s why they bumped the FICO to 620. To make it harder to get a piggyback?
“No problemo. FHA stands ready to provide credit to Fannie’s rejects. At 3.5% down, which can also be borrowed!”
Solving whose problem?
Thursday, November 26, 2009
(Updated 3:00 am)
By Thomas Sowell
…
The current economic downturn that has cost millions of people their jobs began with successive administrations of both parties pushing banks and other lenders to make mortgage loans to people whose incomes, credit history and inability or unwillingness to make a substantial down payment on a house made them bad risks.
…
No one pushed these reckless mortgage lending policies more than Rep. Barney Frank, who brushed aside warnings about risk, and said in 2003 that he wanted to “roll the dice” even more in the housing markets. But it would rash to bet against Frank’s getting re-elected in 2010.
After the cascade of economic disasters that began in the housing markets in 2006 and spread into the financial markets in Wall Street and even overseas, people in the private sector pulled back. Banks stopped making so many risky loans. Home buyers began buying homes they could afford, instead of going out on a limb with “creative” — and risky — financing schemes to buy homes that were beyond their means.
But politicians went directly in the opposite direction. In the name of “rescuing” the housing market, Congress passed laws enabling the Federal Housing Administration to insure more and bigger risky loans — loans where there is less than a 4 percent down payment.
Does the Federal Housing Administration have unlimited money to bail out bad loans? Actually there have been so many defaults that the FHA’s own reserves have dropped below where they are supposed to be. But not to worry. There will always be taxpayers, not to mention future generations to pay off the national debt.
…
As for the FHA running low on money, that is not about to stop the gravy train, certainly not with an election coming up in 2010.
The Federal Deposit Insurance Corp. is also running low on money. But that is not going to stop them from insuring bank accounts up to a quarter of a million dollars.
It would be stupid for them to stop with an election coming up in 2010.
Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University. His Web site is www dot tsowell dot com.
What especially interests me is the 20% down requirement.i>
I read that as the credit score and dept levels are what matters. Meaning you could put down 20% if you “wanted” to and still not get approved. Perhaps I’m being cynical.
Barnie Frank has developed a severe case of Spitzer face.
“Fannie Mae to tighten lending standards”
Spare us the BS announcements. Actions speak louder than words. I will believe tight lending standards when I see them. Meanwhile, I expect ‘higher than expected delinquencies’ will be the mantra going forward for new cohorts of GSE and FHA borrowers.
Being Barney Frank means never having to say you are sorry.
Prediction: The hair-of-the-dog housing stimulus currently in play to encourage low-to-moderate income households to use government-provided subprime loans to buy expensive houses on which they are soon likely to be foreclosed will blow up over the next 1/2 decade. The politicians and economic policy wonks who supported these debt trap policies will subsequently be tarred and feathered for sinking myriad low income households into a morass of unrepayable debt.
OK, I was joking about the tar and feather part…
Federal Housing Subsidies Are Insane
Posted by Tad DeHaven
A New York Times report on the Federal Housing Administration’s subsidies for higher-priced real estate reveals the insanity of federal housing policies. The 2008 stimulus package signed by President Bush temporarily doubled the maximum loan the FHA insured to $729,750 on single-family homes. Coverage on multi-family units can exceed $1 million.
The article starts in San Francisco in early 2009:
In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston. A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary. ‘It was kind of crazy we could get this big a loan,’ said Mr. Rowland, 27. ‘If a government official came out here, I would slap him a high-five.’
If you’re thinking to yourself that this is the sort of government-induced behavior that helped create the housing bubble, go to the head of the class.
With government finances already under great strain, the policy expansions are creating new risks for American taxpayers. The Internal Revenue Service is giving tax rebates to first-time buyers, and soon to move-up buyers, in a program beset by accusations of fraud. And the government agency that issues mortgage insurance, the Federal Housing Administration, is underwriting loans at quadruple the rate of three years ago even as its reserves to cover defaults are dwindling. On Thursday, the Mortgage Bankers Association said more than one in six FHA borrowers was behind on payments.
It has been widely reported that the FHA might need a taxpayer bailout as a result of its head-first dive into riskier mortgages. HUD’s inspector general says the higher loan limits add additional risk to the FHA’s already dicey situation. But the FHA’s commissioner, David H. Stevens, says he isn’t worried because these mortgages “are for shelter. They aren’t speculative-type investments.”
Mr. Stevens is willfully ignoring the fact that the FHA’s ridiculously low minimum downpayment requirements mean homebuyers have little skin in the game. In a down housing market this increases the chances of homeowners being “underwater” on their mortgages, which can lead to them walking away and sticking FHA with the bill.
…
I’m confused. Barney Frank is constantly vilified, but the record clearly shows that mandatory lending to low income was but a small fraction of the defaults and the article above (yep that one) clearly states that it was Bush who allocated more money to the FHA as part of the TARP package.
Cognitive dissonance is something I can’t relate to.
Well let me try to help resolve a bit of that dissonance for you, then.
The kind of demand side “affordable housing” programs that bloviating Democratic Congressmen like Dodd and Frank like to promote are actually not in the best interest of the low- to moderate- income families are supposed to be “helped.”
Rather, these knife catcher encouragement programs are quite likely to hang an albatross of unrepayable debt around a “higher than expected” number of low income households. But it’s all good for the Wall Street campaign contributors who help these Congressmen stay in office, as the FHA guarantees ensure the lenders will be made whole at the full principle value they loaned.
Did that help clear things up for you a bit?
I sure do hope someone does a careful retrospective accounting for all the “good” that came out of Dough-4-Dumps, FHA guaranteed low downpayment loans, etc, so we will know exactly how much to thank the Congressfolk who passed these programs into law.
His guilt of that is undeniable. But his part is the minority, not the majority of the problem.
I am not defending him, but want to make sure we’re all the same page of him NOT being the main cause nor the majority of culpability.
Other than that, I agree. He was stupid.
The head of the FHA used to be president and COO of Long and Foster: http://www.nytimes.com/2009/03/24/us/politics/24appoint.html
Talk about appointing the fox to head up security at the henhouse.
This clown will destroy the FHA in order to reflate the bubble and create more debt slaves.
For those of you who
a) believe in the hoax known as global warming
and/or
b) think the bbc is an impartial news source
http://tinyurl.com/yafzfo9
Oh, yeah, well some folks believe the earth has been around only like 200 years. LOL, back in the mists of time, much of Greenland was covered by forest. Fortunately nature was able to take its course without a media bloviating about global warming.
I used to work with a guy who was rational about most things except when it came to the age of the earth, which he said was only eight-thousand years old.
Nothing - reason, fossil evidence, carbon dating - nothing could shake him from this belief.
I took the bait a few years back and got into the whole carbon dating thing etc. He claimed the earth had been “aged” by God to create the illusion of history as intended by the creator. I responded then these things were there to “deceive” us. His face went a deep crimson color and I thought for a minute he could go postal at any moment. He then abruptly got up turned and left without saying a word. I did hear recently one idiot claiming the Grand Canyon was carved out much faster than thought because of biblical floods …
This, is the real problem with the doctrine of oomphalism (The world was created to appear that it is older than it is) It reduces our existance to some sort of “trick question,” where God tells us one thing in the bible, and another in his creation, and rewards us with eternal damnation for guessing wrong.
Presumably those that have a belief in the Almighty would postulate that the Almighty is Omnipotent, and therefore, could create the world/s in any fashion He, She, It, or They chose.
Could this Omnipotent Whatever create an object so large that He/She couldn’t move it?
No. Only an object large enough to drop on the head of the questioner.
Global warming is not a hoax, it is and has been a well planned scam/scheme/con-job. It was well layed thought out, however when many people are involved the truth/basis will come out at some point in time. The root is always the same, money, power and control, that never changes.
I could not care less what some believes in as far as the earths age, it started out as a bubbling cauldron that cooled down over a long period of time. Man is arrogant to be sure, but to believe that they can control the ebb and flow of the planets changes is beyond arrogance, it is self important ignorance.
No matter, billions $ have been made with this con, and those that are prospering within this created disillusion will insist they are doing ‘it’ for the good of all mankind! Pure BS, but it sells.
NONONONNO!!!
It is not that Greenland has not been warm in the past, it’s not that Brazil is hotter this year than the last or colder, it’s not that Al Gore is fat, it’s not that scientists are in it for the money or anything like that.
It’s that the rate of change of CO2 concentration (yes, a proxy for temperature up until 400 years ago) is greater than it has been for millions of years and the amount of CO2 added to the global pool is anthropogenic in nature. All you have to do is have a mass spectrometer to look at isotopes for that. It’s similar (sort of) to the process by which the age of the earth was discovered. It’s not that hard, people. Look up Zachos et al. in Nature for oceanic CO2, or read the IPCC reports or a host of other peer-reviewed journals and you can begin to understand the science. Don’t get wrapped around the axle about the politics (scientific or politico).
My boss was involved in the “asteroid killing the dinosaurs” debate and it was vicious.
MrBubble
PS: And if scientists wanted money, they would have gone to Wall Street. It’s not as though those dunderheads were in p-chem or thermo — ever, whereas I could take any govy or econ course and crush it. These bankers are not smart. Sorry. Chris Field drives an old beater, rides his bike and lives in a modest house, is the head of an IPCC working group and could surely understand k-wave theory, or stochastics or any other BS econ trick in an hour.
It’s that the rate of change of CO2 concentration (yes, a proxy for temperature up until 400 years ago) is greater than it has been for millions of years and the amount of CO2 added to the global pool is anthropogenic in nature. All you have to do is have a mass spectrometer to look at isotopes for that.
You’ve got three statements in that first sentence that need serious examination. I will have to borrow one of oxide’s mass spectrometers (and some of her isotopes) to check on your claims.
“…and could surely understand k-wave theory, or stochastics or any other BS econ trick in an hour.”
Sir Greenisspent has muttered something: “That seems a “frothy” and presents a “conundrum” …”
it’s back!!
I forget, I’m slow, from the deep South. What is it you do for your paycheck?
Dude,
The theory and models that predict anything useful have been called into question. It appears the predictive ability has been shown to be wrong and worse the scientist conspired to cover it up to keep the gravy train rolling.
The theory is just that a theory that seems reasonable at first glance. However, the climate system is much more complicated than just the C02 picture. Feedback mechanisms with carbon sinks, reforestation, solar fluctuation, methane, aersols all sorts of other events outside of human influence appear to be swamping human factors.
The models that have been produced to date have failed; hence we no longer know if we should take any action at all. Hence the panic among the scientists to take these UNPRECEDENTED actions.
Further the data proxies and temperature records are clearly corrupted by people attempting to show a trend. It is an outcome expectation problem. They want to show a clear warming trend and manipulate the data instead of letting the data show what it shows.
I can understand your confusion. A friend who is of good nature sent me an article with a headline that global sea levels might rise 50m. Well, you read into the article and it says computer models show sea levels rising due to massive ice melt off. Predictions were based on current measurements of a sea level rise of 0.1mm over 20 years of measurement. Can you imagine the difficulty of measuring sea level with an accuracy down to 0.1mm. That with tides, earth movement, local weather variation exc. Hence they were projecting exponentially growing melt rates continuing over a century with out interruption.
These are just the many techniques used to keep you in a state of fear.
Scientists typically aren’t good wall street material. Not used to continual BS or selling. Maybe these global warming would be though.
“The theory and models that predict anything useful have been called into question. It appears the predictive ability has been shown to be wrong and worse the scientist conspired to cover it up to keep the gravy train rolling.”
Pretending they can predict stuff that is virtually unpredictable is the bread and butter of quack science.
It is called gee whiz science for a reason.
Unfortunately any statistics you present are completely corrupted by the actions of the very same scientists asserting those numbers. Having read through y’alls emails, do be angry that we simply don’t trust you.
Had those emails not surfaced, the con may have lasted longer.
Get back to the drawing board. This source of grants has been killed.
It’s that the rate of change of CO2 concentration (yes, a proxy for temperature up until 400 years ago) is greater than it has been for millions of years and the amount of CO2 added to the global pool is anthropogenic in nature.
IMO this is the crucial point, the “rate of change” and its difference now.
Have any reports cited reasons to question the science behind this specific point?
P.S. The leader of the global warming cult, Al Gore, who has made millions if not billions from this now uncovered fraud, does not deny that ‘it’ has made him very rich. Now if someone truly cared about mankind, money would or should be the least of the motivation. Proving once again this scam had to do with only one thing…$$$
Good news for Al though, it’s not prosecutable.
Classic example of the ’straw man’ argument:
1)Al Gore is a well-known for his belief that global warming is real and dangerous.
2)Al Gore is hypocritical.
3)Global warming has therefore been proven wrong.
(Happy Thanksgiving all!)
Not at all a straw man.
Rather…
Observations. Algore is not a scientist. Algore is manipulative. Algore is hugely invested in profiting from “hypothesized” AGW. Algore is grossly hypocritical.
Conclusions. Be careful using Algore as support for a scientific hypothesis known as Anthropogenic Global Warming. Not at all a straw man. Rather sage advice.
Gee… didn’t it used to be Anthropogenic Global Cooling? What is it now, not “warming” but “change”?
Oh yeah, and all those research-fraud emails coming out showing that even the data are fudged?
cheers
-evil
The term “Straw man” the favorite default, when a person has no defense and or irrefutable proof for their arguments.
Holding up a person as representative of an argument, and then disparaging that person to illustrate or imply the weakness of the argument is actually pretty much the exact definition of ’straw man’. Look it up.
And seriously, does the fact that Gore has made some money, or Bono flies a private jet, really have any bearing on the argument? Really?
LMAO….. a wacko disparages his own position by using a logical fallacy aka “strawman” to criticise others use of logical fallacies.
Damn…. it doesn’t get any better than that wmbz.
Thank you!
Have any of those who oppose the idea of global warming ever been paid for a speech, article, etc that attempted to refute the concept?
Then, by your own reasoning, their opinions have no value.
And does anyone seriously doubt that Gore wouldn’t have made millions off of speeches and books without wading into the global warming controversy? And how, exactly does he stand to make ‘billions’ if the ‘global warming cult gets its way’?
Yes we all know that the alternative energy industry is vastly more wealthy than say
Exxon
BP
COP
Utillities
Manufacturing
Big Coal
Fox ect.
If Cuba is underwater, so is Denver.
Mistakes in Al Gore’s new book begin with the cover
November 23,
Bad choice on inaccurate cover. The follow up to An Inconvenient Truth by former Vice President Al Gore called Our Choice, has once again shown the lack of science follow through. It all begins on the cover, and basically it is wrong. The cover has a fold out that shows a view of the Western Hemisphere today, and an artist rendition of what it may look like if drastic environmental policy is not enforced. From a meteorological perspective, it has the legitimacy of the movie The Day After Tomorrow. Look at the images in the slide show below to see how dramatic and inaccurate the photo shop job was. As The Atlantic Hurricane Examiner, I take exception the following issues:
The storm near Florida is spinning the wrong way.
The hurricane on the equator is impossible following the Laws of Physics.
Complete countries such as Cuba and many in Central America that disappear under water.
The ice at the north pole completely disappears, but the ice at the arctic circle remains
It’s one thing to push the extreme notion of rising sea levels, but some of these land masses have very tall mountains that wont taste salt water unless there is a major collapse of the tectonic plates along the lines of Krakatau. Besides, these claims are ramping up ahead of the December Climate Summit in Copenhagen. In 2005, the record year was the pinnacle of the Global Warming Movement with claims that more of the same would follow. Since then, the tropical activity has slowed down dramatically. This year has turned out to be below normal, even with the late eruption of Hurricane Ida in November. The Hurricane season forecast was lowered with the expectation of 12 named storms. We have only has 9, the quietest in a decade. It’s been so calm, that I spent the majority of time in this forum discussing the typhoons in Asia.
The sunspots are returning. We are saved.
“Mistakes in Al Gore’s new book begin with the cover”
Just shows what a sad costly scam this whole thing has been. It works however because people somehow need one crisis after the other to cling to or believe in.
The left swore off traditional religion. AGW is their replacement.
It does seem to have that kind of intensity though. Facts be damned, results be damned.
Course lots of people are democrat or republican by religion as well.
I sense intensity on both sides of the argument.
One side fears for the physical survival of our current ecosystem. That seems a reasonable thing to be intense about.
The other side fears that it’s a worldwide conspiracy of scientists designed to…what? Transfer wealth to poor countries somehow? Somehow socialize or penalize big business? And why and how does such a broadly diverse group of scientists from all over the world come to have such a plan? And why climate scientists, of all groups? Are all scientists suspect, or is there something particularly insidious about the climate people?
Sounds like the old ‘communists in high places’ argument of the McCarthy era. A worldwide conspiracy so immense, so evil…
It sounds like the fake scientific consensus on global warming is starting to collapse. This is a great development. Science and consensus don’t mix, especially when demagogues like Arnold Schwarzenegger or Al Gore begin to stir the pot.
Main Entry: 1dem·a·gogue
Variant(s): also dem·a·gog \ˈde-mə-ˌgäg\
Function: noun
Etymology: Greek dēmagōgos, from dēmos people (perhaps akin to Greek daiesthai to divide) + agōgos leading, from agein to lead — more at tide, agent
Date: 1648
1 : a leader who makes use of popular prejudices and false claims and promises in order to gain power
“…It sounds like the fake scientific consensus on global warming is starting to collapse.”
Well, people with 90% of their toxic “made in China” clothing purchased from Cabella’s on a maxed out credit card, tend not to be subtle observers of Nature’s “quiet” changes.
(Hwy can only wonder what Thoreau would have found in the magazine that he could use?
Three Things You Absolutely Must Know About Climategate
First, the scientists discuss manipulating data to get their preferred results.
Secondly, scientists on several occasions discussed methods of subverting the scientific peer review process to ensure that skeptical papers had no access to publication.
Finally, the scientists worked to circumvent the Freedom of Information process of the United Kingdom.
“So what does this all mean? It does not mean that there is no warming trend or that mankind has not been responsible for at least some of the warming. To claim that as result of these documents is clearly a step too far. However, it is clear that at least one branch of climate science — paleoclimatology — has become hopelessly politicized to the point of engaging in unethical and possibly illegal behavior.”
Happy Thanksgiving everyone.
Lip
Sorry, here is the link. This article has links to the emails that are the cause of our doubts.
http://pajamasmedia.com/blog/three-things-you-absolutely-must-know-about-climategate/
PS: Thanks Ben for doing what you do.
Keiser Report – Markets! Finance! Scandal!
Ullrich Fichtner of Der Spiegel.
Max Keiser’s interview with Ullrich Ficntner later in the report says a lot IMHO.
http://maxkeiser.com/
This is a funny quote from John Ashcroft ,the Attorney General during the Bush years .
‘ ” Corporate executives who cheat investors ,steal savings ,and squander pensions will meet the Judgment they fear and the punishment they deserve.” ‘
What happened ?
The game stayed the same, just changed a few players, and the herd follows.
The end result of a shared Shrub descendant political philosophy:
“Read my lips…I speaketh from both sides of my mouth”
You must have a Bush/Cheney poster above your bed, it seems that you are SOS.
Ha, just like hitting the ping-pong / jib-jab back at your “Southern” proselytizing.
My favorite line from Leonard Nimoy:
Spock: “Nero is one particularly troubled Romulan”
(From the new movie)
And the usual suspects keep beating their same right or left-wing drums.
Whatever gets you through the day, I guess…
I’m not right or left anymore and I don’t even think in those terms
anymore . At this point I just want America to be saved and the Majority not to be screwed .
That makes you a lefty
“What happened ?”
The Illuminati took him into a back room and “recommended” he move on to other issues.
He was replaced by Alberto Gonzales.
Maybe you’ve heard of him? Approved torture. Mislead Congress regarding NSA domestic spying. Real stand up guy.
Seems like a good first round pick for the current administration, I am suprised they didn’t pick up his contract.
EZ, by not allowing the pain of an economic reset the PTB mortgaged the country’s future (even moreso) and bought the complacency of the mob (relatively speaking).
The Art of Political War for Tea Parties – by David Horowitz. (excerpt)
“A specter is haunting America – the specter of a people rising. All across the nation Americans are waking up to the threat of a leftist elite determined to fundamentally change America, push through a socialist agenda, and make every citizen dependent on the state. The Obama machine is spending trillions of tax-payer dollars to finance their takeover of the American workplace and stifle the independence of the American people. But America is resilient nation, built on the principles of private property and individual freedom, and the resistance to their socialist plans has already begun”.
“In May 2009, just five months into the Obama administration, the people of California launched a tax revolt in the biggest spending state in the nation. So reckless were the leftist Democrats who run California (and have done so for as long as anyone can remember) that its deficit alone was larger than the budgets of most other states in the Union and of many of the nations of the world. Leftwing politicians don’t cut budgets; they propose new taxes. And California’s leftwing legislature did just that. But thanks to a constitutional amendment put in place by the California electorate through the state Initiative process, California legislators can’t raise taxes without a two-thirds referendum of the people. So they were forced to hold a special election in May to appeal to the electorate to pass five new ballot Initiatives to raise taxes”.
~ People are beginning to realize the U.S. has encountered some serious headwinds and is running into trouble slogging through severe setbacks. Who, among them, will prevail? The Tea Party Patriots or the establishment nationalists?
Liberals are counting on propaganda and the human socialist impulse to prevail. The patriot knows that course is suicide.
“…built on the principles of private property and individual freedom…”
Hey, any Native peoples in NE Arizona have any comments on this statement?
I’m part American Indian. I got over it.
I thought you were in the city of “Lost Angels”?
If by “Native” you mean the so called American Indians - they have no more claim for US land than anyone else. All four of my grandparents came from Europe. BUT my parents and I are native Americas. We were born here. Typical bleeding heart leftist - changing the meaning of words for political purposes. Same BS with the word minority. It means less than 50%. As a white male I am a minority.
So if I come over to you house shoot you and put your kids in a pit in the back yard. Then raise my familiy in your house your kids should have no claim on the house right.
Good point! Some of my ancestors allegedly came across the Bering Strait into Alaska, Canada, and so on and were called “indians.” They invaded land that did not belong to them before.
Throughout human history there have been many groups who invaded lands and took them over.
If one is a collectivist, this is a huge problem. If one is an individualist who considers himself not a member of any religion, nation, race, but a sovereign individual, it “don’t” matter where he lives, who he trades with, as long as he is looking out for his own best values/interest.
The revolt against socialism is real. I did not believe it yet in mid-April. But even I donated money to Campaign for Liberty and to Peter Schiff for his US Senate aim.
I think the revolt is not here in time to stop the pain in its place. It will take a strong small-government congress to overturn all the spending bills that have occurred the last ten years. They will have to stop the $560 billion prescription medical benefit, for instance, which socialist GWB pushed for.
One third of US Senators are elected every two years. Theoretically, the entire US Senate cannot be replaced in under six years. And even then, at least 60 of them have to be hard core advocates of dismantling unconstitutional spending programs.
Then you have to worry about having one political party controlling both the oval office and the Congress.
The bottom line is that there are not enough angry Americans who want an end to unconstitutional spending programs to make a tough anti-spending Congress and a President to veto spending.
“The bottom line is that there are not enough angry Americans who want an end to unconstitutional spending programs to make a tough anti-spending Congress and a President to veto spending.”
Once you have stripped someone of their economic power and placed them on social help, they become docile. That’s the magic of welfare for those prosecuting a bloodless coup.
There are still plenty of direct actions you can take to lower your taxes.
Obviously you can abolish capital gains taxes yourself by not selling your stocks, precious metals, or collectibles.
You can abolish your auto registration tax by not having a car (live in NYC or San Francisco). Although in many cities your mobility will be greatly reduced.
You are left to focus on reducing your income taxes. There are a lot of ways to do that still.
So you can basically fight the battle against socialism on an individual basis, profit from it, and not have to convince others to fight for your tax cuts.
My advice, just quit spending. That will pretty much do it.
You can borrow the full price of a house, pocket the money from 100s of thousands of dollars of loans against it, not pay it back, and not have to pay taxes on the forgiven debt! Oh! And you’ll also get sympathy from Congress, the President, and the Media.
That’s the magic of welfare ??
Until you run out of other peoples money to pay for it…
If this current round of legislative insanity goes through, we’re all on the reservation, for good.
Take a trip through No. AZ, and see what your future looks like.
“Take a trip through No. AZ, and see what your future looks like.”
Hey now, those farmers in Nebraska work hard & honest to produce corn syrup for Monsanto…they can’t be held responsible for obesity. Go to any grocery store in America, either the aisles are getting smaller or…
(Hwy thinks maybe not a good subject in America on this day…as they say in court…strike that!)
either the aisles are getting smaller or ??
They are less than two ax handles now ??
LOL
Merry Thanksgiving to you & yours scdave!
While I am all for REAL health reform, the one being rammed down our throats right now is not it. In truth there is not enough money in the universe to pay for it, and nothing is done to prevent rapidly rising costs. Hint “tort reform” will only save one percent and will allow hundreds of thousands to go undiagnosed without recourse to the law, as happened to my mother in England two years ago, when tests were not done until her cancer had already spread beyond cure.
We need two simple things.
1 the ability of small businesses and individuals to purchase group coverage the very same you might get working for the government or large corporation.
2 The funding of community clinics to provide decent care for the poor.
Beyond these two simple things, I doubt we need any of the 2000++ pages of garbage contained in the current health reform bill before the Senate.
The crop of Politicians we have in office can’t come up with a good bill
because they want to please everyone ,especially the lobbyist .Its really to bad because Health Care reform is needed ,especially in terms of the monopolies that have developed and the souring costs
that are breaking the backs of individuals as well as employers .
Half the time I think if some of these Seniors didn’t get their medications they might live longer . I’m not being insulting to the Medical Profession in saying this ,but a medication cures one thing only to have a side effect of that medication kill the person off in another way . You get the medical profession talking about quality of life but if you view the side effects of many medications and
you have to ask yourself if somebody walking around like a zombie
is quality .
Look ,the medical profession most likely saved my life a couple of times with doses of antibiotics ,so I’m not going to be ungrateful for the wonderful things that Medical Science has been able to do .
It’s just when corruption has leaked into a industry ,you feel it in your bones .
“…especially in terms of the monopolies that have developed and the souring costs that are breaking the backs of individuals as well as employers.”
The “Medical Industry”… has an “insurance rider” that the oil companies didn’t have when gasoline reached the “Supply & Demand” / “Market Efficiency” price of $147.60 per barrel…It’s really really complicated but mostly it boils down to: “New Facility” costs, “New Medical Device” costs, “Trained Doctor” costs, “Triple Billing” back-office costs, etc, etc,… However, every patient is “unique” in regards to “treatment” & sometimes “everyone involved” really doesn’t know the actual price to charge. Amazingly, the bill sent to the patient hardly ever gives the service rendered in “line item cost” form, as if they could dispute anything that might possibly be even considered as an “over-charge”.
They have Boniva for that. Ask your Doctor if you can benefit from it.
LOL
GH…I disagree in part….Some of the best health care you can get in my county id free…And I mean some of the best !!!
Secondly, for me, the biggest single issue is pre-existing conditions…
Right scdave . You don’t meet to many people that didn’t have something at some point in their life ,but to not be able to get insurance ,or being cancelled if you made a claim and not being able to get new insurance is just so wrong .
Yes, once an insurance company agrees to insure you they should have done whatever homework they feel necessary and under no circumstances should be able to cancel.
Further like car insurance, if at the moment of impact you are insured coverage should continue for that illness even if you are unable to continue paying the premiums since you were covered when you became ill.
I can see the bit about folks not insuring until they need coverage and then running out and getting insurance on the way to the hospital though, so there is something in the pre-existing condition bit that needs to be thought out. There is a lot to be said for single payer, and in most countries this does not preclude one from paying more to go to private care …
The fact that it is human nature to not seek insurance until you need it is the very reason why Health Care is unlike any other business .This is why they set up the employer connected health insurance and all the other things Insurance Companies do to get money pools of healthy people and younger people with low risk to be part of the program.
This is why I’m also seeing that the single payer system ,with options for greater coverage might just be a solution to a
complicated business . Given the same trends the health costs
are just going to go off the charts and consume to much of
a families budget ,or a employers budget, that it will not be sustainable ,and it isn’t really sustainable now .
I would bet my last red cent that tort reform would save 10% rather than only 1%.
My mother died last year because in UK no doctor can be held accountable, so they did not even bother running any tests when it could have made a difference. True she may not have survived anyway, but she might at least have had a chance. Tort reform is about an industry which does not want to be held accountable when it F’s up!
GH …Thats why I have a problem with getting rid of Mal Practice suits . Can’t imagine what might happen if someone had no penalty for neglect or major screw ups . Car drivers don’t have that luxury of no penalty if they screw up while driving . But in light of only a small percentage of Mal-practice suits actually occurring (the medical community does a good job of covering their mistakes ) the question is why is the Insurance so high for Medical Mal Practice ?
It seemed to me when I was at the hospital for all those weeks
that the staff spent mucho time documenting the file and filling out paper work as a practice of defense from a lawsuit .It actually took away from the workers being in tune with the patient as far as I observed . So ,no doubt defensive medicine has sky-rocketed the cost of operation . I mean I would see people screw up right in front of my eyes ,but what counted was what went down on those records .
I disagree. Only one change needed.
Quit using the health care system to keep alive, those that will die anyway.
Death, deal with it!
Nov. 26 (Bloomberg) — European stocks fell the most in seven months and bonds jumped as Dubai’s attempt to reschedule its debt rattled investors seeking higher returns in emerging markets. The dollar slid to a 14-year low against the yen.
Europe’s Dow Jones Stoxx 600 Index retreated 3 percent at 3:29 p.m. in London. The Shanghai Composite Index slumped 3.6 percent, its biggest drop since August, and Brazil’s Bovespa Index slipped 2 percent. Credit-default swaps tied to debt sold by Dubai rose as much as 131 basis points to 571 according to CMA DataVision. U.S. markets are closed today for the Thanksgiving holiday.
What will mr buffet buy next to prop up the market?When this thing turns it will be ugly.Lots of weak hands in the game chasing returns.
Friday should offer a great opportunity for the headline US stock market indexes to enjoy a PPT-sponsored rally. With the extension of forbearance to Dubai commercial real estate debtors coupled with a Vietnamese currency devaluation this week, it is pretty clear the PPT will have their liquidity fire hoses set on high blast tomorrow.
“Friday should offer a great opportunity for the headline US stock market indexes to enjoy a PPT-sponsored rally.”
A stock market rally, eh. I wouldn’t want to bet on that.
As of right now, futures are down 179 points.
There are almost twenty four hours between now and the Friday opening bell for those futures to perk up again. Just keep the faith!
P.S. What is a 179 point drop, anyway? ‘Tis a mere flesh wound.
OK, then, how about a flight-to-quality rally in the dollar instead? Something certainly ought to do relatively well tomorrow, given the volatility due to financial earthquakes deep beneath the surface of the systemic international financial risk pool.
Nov. 26, 2009, 12:05 p.m. EST
Dubai woes roil financial markets
Stocks fall and government bonds rise on flight to quality
Related stories
* Cost of insuring Dubai sovereign debt soars (5:44a)
* Safe-haven flows boost yen, stabilize dollar (8:27a)
* Dubai World’s sprawling empire (9:33a)
* European banks may have $40 bln exposure to Dubai (11:38a)
By William L. Watts, MarketWatch
LONDON (MarketWatch) — Fears of a potential default in Dubai sent shock waves through financial markets Thursday, weighing on European and Asian equities, lifting government bond prices and pulling the U.S. dollar off of recent lows as investors sought out safe havens.
Dubai late Wednesday said it would restructure Dubai World and announced a six-month “standstill” on repayments of the state-run wide-ranging conglomerate’s debt. Ports operator DP World and its debt is excluded from the standstill plan. Read about Dubai World’s sprawling empire.
Analysts said Dubai’s woes were a blow to sentiment, serving as a reminder that potential trouble spots remain in the world economy.
“I don’t see this as a massive issue but it’s another warning to where the world got itself last year with loose monetary conditions [and] loose lending,” said Naeem Wahid, market strategist at Lloyds TSB. “And, in a few cases, the problems are still out there and we could continue to see these kinds of nasty surprises” in the future.
Government-owned Dubai World is a conglomerate with interests in real estate, ports and the leisure industry. The firm carries around $60 billion in liabilities. Credit agencies Moody’s Investors Service and Standard & Poor’s downgraded the debt of a range of government-related firms, including DP World, after the restructuring announcement, news reports said.
The developments sent the cost of insuring the emirate’s sovereign debt against default soaring for a second day.
The news also weighed on other emerging markets, boosting the cost of insurance against default against other Middle Eastern and emerging-market countries and undercutting Central and Eastern European currencies.
Asian stocks fell early Thursday. European stocks were under pressure, with the pan-European Dow Jones Stoxx 600 index losing around 3%.
…
“…pulling the U.S. dollar off of recent lows as investors sought out safe havens.”
Investors are seeking out safe havens in the U.S. dollar?
THE U.S. DOLLAR????
Lol. Don’t they know the dollar is WORTHLESS UNBACKED FIAT PIECES OF PAPER?
BAHAHAHAHAHAHAHAHAHHAHAHHAHAHAHAHA!!!!!
“Don’t they know the dollar is WORTHLESS UNBACKED FIAT PIECES OF PAPER?”
I have some tattered Vietnamese money in my wallet. My wife keeps trying to make me throw it away, but I hold onto it for sentimental reasons.
Talk about your worthless paper —
1 Vietnamese dong = 5.4 × 10^(-5) U.S. dollars
IIRC the Vietnamese currency of the Sixties had gold threads running through the bills. Correct me if I am wrong.
Dubai…Vietnam…problems in “paradise”?
Good thing that American doesn’t have anything to backup its “worthless” national currency, otherwise we just have to muddle through like all other better managed countries. Of course our real real problem is having to manage the behavior of 310 million people who have tasted liberty for 233 years.
Maybe the Obamanites can implant chips in everyone’s head to make them more readily manipulated by Megabank, Inc’s financial engineers.
Al Bawaba
Stocks fall following Dubai World’s debt default
Posted: 26-11-2009 , 15:38 GMT
World stock markets took a hit Thursday following Wednesday’s announcement by Dubai World, a major strategic developer, that it would suspend payments on its debt and the government would not pick up the tab.
International banking stocks fell sharply Thursday following concerns of their exposure to Dubai. Reuters reported that Dubai five-year credit default swaps have been quoted as high as 500-550 basis points, costing nearly $500,000 annually to insure $10 million of Dubai’s debt. Only two days ago, they cost about $360,000.
…
Are Americans institutions exposed at all to this default in Dubai ?
Why is everyone upset in that apparently they had insurance on these
loans ,or is this another deal like AIG where they don’t have the money to back that credit default swap bet?
Fed credit card tips coming to big screen near you.
WASHINGTON — Movie theater audiences can now add another item to the list of things to expect before the film actually begins: Federal Reserve advice about credit card use.
Timed for the upcoming kickoff of the holiday shopping season, the Fed said Wednesday it will run ads in 12 movie theaters from Black Friday through Dec. 3.
Sandwiched between soft drink and popcorn ads, the 45-second spots will provide shoppers with tips to help them avoid racking up unnecessary charges and fees on their credit cards.
Those tips include:
•Paying bills on time to avoid late fees.
•Staying below credit limits to avoid fees and higher interest rates.
•Paying more than the minimum payment each month, which over time will cut down on interest charges.
•Paying attention to transactions fees for things like cash advances or paying a bill by phone.
•Watching for changes in account terms.
The ads will run in Boston, New York, Bensalem, Pa., Valley View, Ohio, Hanover, Md., Boca Raton, Fla., Chicago, Hazelwood, Mo., Edina, Minn., Olathe, Kan., Houston, and Long Beach, Calif., said Fed spokeswoman Susan Stawick. By selecting those locations, each of the Fed’s 12 regional banks are represented.
It was not immediately known how much the ads are costing the Fed to produce and air, Stawick said.
I suppose there won’t be any tips to the effect of:
“Consider whether you really, in fact, actually need an item, before charging it on your credit card.”
Wow, thanks be to the Fed for these “tips”.
The sad thing is, it probably will be news to quite a few dimwits in the audience. Not that they’ll remember it after the big boom-boom movie is over.
Happy Thanksgiving, HBBers! There is joy in Muddville after all for hard-working, honest savers waiting to buy a fair-valued house to live in for 20-30 years. We may just have to wait a little longer than expected. A good read:
http://tiny.cc/pPwDZ
Just read it, it’s probably true. I’m still skeptical that the Dems are planning to maintain power by putting people on the dole; Dems fight each other too much to organize any sort of conspiracy. However, I do believe the part where those banks are going to use every trick in the book to write down those bad assets without actually valuing them. Question is: who is maintaining all this empty inventory? Is some bank willing to pay Ben to check on a house for 3-5 years? It would be cheaper to let it fall down.
A few years after the S&L disaster, you could literally take over bank owned repo’ed property for a song if the tune was “I’ll keep it maintained.”
So what they will do it quietly write down the losses until they can unload it any which way they can.
Seriously, all most property really need is yard service and the occasional vandalism repair and inspection. Noticeable weathering really doesn’t set in until about a decade.
I am thankful for Eddie. It’s not often we get the bubble perspective from a 74 year old Guatemalan nun.
I thought he was Rush Limbaugh’s pet bird.
“I thought he was Rush Limbaugh’s pet bird.”
Reminds me of some completely useless info I came across:
During WWII Winston Churchill taught his parrot to say two phrases: “F*ck Hitler” and “F*ck the Nazis”. That’ all the parrot ever learned to say and it never stopped saying it.
Then Churchill died and his parrot began it odyssey. What could be neater than to be the owner of Winston Churchill’s parrot, right?
Wrong. Owning the parrot is amusing at first but it very soon becomes an embarassment, hence new owners almost immediately look for someone to hand it off to.
This post is too good to let it sit neglected at the end of yesterday’s Bits Bucket:
Comment by SanFranciscoBayAreaGal
2009-11-25 22:31:59
Turkey day quiz. Who said the following:
March 28, 2007: “The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”
May 17, 2007: “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
Feb. 28, 2008, on the potential for bank failures: “Among the largest banks, the capital ratios remain good and I don’t expect any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.”
June 9, 2008: “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
July 16, 2008: Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.”
Lies, damned lies and central bank propaganda…
I’m gonna guess….Eddie?
Too original for him to have thought those up…
BB said the following no doubt .
You won the printing press Housing
Today’s NY Times ran a sob story about a woman who ran up debt by borrowing up on her paid-up house that she inherited. She went on a spending spree and doesn’t want to pay for it. And of course, the bank’s name is a “four letter word” (according to the Times reporter) simply because they want their money back.
She had a pick-a-pay loan and “didn’t know” about neg-am. Bullshit.
http://www.nytimes.com/2009/11/26/nyregion/26neediest3.html?_r=1&scp=2&sq=wachovia&st=cse#
Oh! The people at the Times deemed this poor victim worthy of receiving $10,000 from their charity. Please think twice about donating to the Times charity!
This is the type of borrower that I hate the most . The serial
equity locust who uses their house to finance living beyond their means for stupid stuff ,and than they play the victim when they are asked to pay for their spending . Big time con-artist borrower who got people to feel sorry for her . I got a neighbor on my block who is exactly the same
way .My neighbor can’t stop spending ,but cries victim when the bill comes in .
HW:
Hopefully that will be the new standard:
If you want sympathy from me, make sure that $100K heloc went to save your hubbys or kids life….not for plasma tvs and his and hers suv’s.
Some clown thought it was a money-making deal to lend money to her. I fault them as well. People like her are a dime a dozen. Who lends money to them?
Guess who’s gonna get stuck with the bill. Not the lender.
Reuven here is a sob story that is a world apart from the idiot pick a pay loan:
http://www.postandcourier.com/news/2009/nov/26/home-stretch/
Thanks! Now *that* is a touching story. These folks lived within their means and raised four kids in a second-hand mobile home they kept habitable for 30 years, and now a local community charity is trying to help them get a better home now that theirs has simply worn out.
Compare that to the Times story of the woman who bled money from her ill brother by taking out loan after loan after loan on a paid-up house, then cries when the bill comes due.
Will we still have a FDIC Freaky Friday this week?
LOL- You’re asking us, Sheila? I say no better time than the holidays to slip a few more through.
Wall Street bonuses, after the bailout
Broadcast: Midmorning, 11/25/2009, 9:06 a.m.
LISTEN
Despite the near collapse of the financial system, some Wall Street banks are reporting large profits and planning to give out larger bonuses than they did in 2008. That news has raised howls of protest and sparked new calls for compensation reform. Others, including some in the government, worry that restricting bonuses might result in loss of talent at a critical time.
Guests
* Justin Fox: Business and economics columnist for Time magazine and author of the “The Myth of the Rational Market.”
* Susan Antilla: Business columnist for Bloomberg News and author of “Tales from the Boom-Boom Room: Wall Street vs. Women” (2002).
Wall Street
Wall Street’s whipping boy
Bank of America CEO Ken Lewis is certainly not blameless in the financial meltdown. But he probably doesn’t deserve the beating he’s getting
From Friday’s Globe and Mail Published on Thursday, Nov. 26, 2009 5:41PM EST
In all the Wall Street scandals of recent times, the public has required a target—a pinata that can be pummelled to vent the popular, and regulatory, rage. Lehman Brothers’ Dick Fuld has performed ably in that role so far. But now he’s being replaced by the ever-unpopular Kenneth D. Lewis, outgoing CEO of Bank of America.
The speed at which Lewis has descended into pinata-dom is remarkable. Just a year ago, he was the saviour of Merrill Lynch, that icon of Wall Street. From his perch at Bank of America, Lewis oversaw the bailout of the company that had been run aground by John Thain, an insider’s insider and former president and chief operating officer of Goldman Sachs
Thain’s carefully nurtured facade of down-home, Midwestern integrity began to crumble shortly after the rescue deal, when his lavish office furnishings, worse-than-forecast losses from toxic derivatives, and payment of absurdly large bonuses to Merrill executives finally came to light. A furor promptly arose about whether the bonuses and losses had been properly disclosed to Bank of America shareholders. Thain successfully fought back in the media, and the focus of blame shifted to Lewis.
There’s no question that Lewis is getting the worst of the thrashing, more so than Thain—who was actually at the helm of Merrill when those bonuses were being paid and those losses were being incurred. While Thain emerges in the media as an honest guy, his successor is left twisting in the wind, subject to gobs of investigations.
But, as is often the case in times like these, the wrong person may become the public target. Could Lewis be a case in point? He has sought to de-pinatacize himself, by refusing compensation for 2009. But it doesn’t seem to be working. In addition to horrid timing—blundering through the worst financial crisis in modern times—Lewis has also had some old-fashioned bad luck. Take what happened to a settlement that the SEC cut with Bank of America. Usually SEC investigations are settled through what are known as “consent decrees,” in which a sum of money is paid and there is no admission of guilt, even as the defendant pledges never to do again what he has just neither admitted nor denied doing. It’s a charade, but that is usually how regulation works on Wall Street.
…
Lesson (re)learned on Wall Street: “Let them eat cake.”
Letter From Washington
No Lessons Learned on Wall Street
By ALBERT R. HUNT
Published: November 23, 2009
Let’s stipulate: Lloyd Blankfein and Jamie Dimon are enlightened, broad-gauge chief executive officers, among the finest in the world.
Their firms, Goldman Sachs and JPMorgan Chase, are indispensable in raising capital for companies, creating wealth. They’ve repaid the government assistance money received in the financial crisis and are showing record profits today. Finally, I am no expert on the ways of Wall Street.
Still, if Goldman and JPMorgan hand out record bonuses next month — reportedly they’re planning more than $20 billion combined — in this economic and political climate, it will underscore why, whatever their Wall Street colleagues think of them, they are hated by Main Street.
The leading edge of this anger could be seen in Congress last week when Treasury Secretary Timothy F. Geithner faced calls to resign. One lawmaker said he should never have been hired.
Mr. Geithner has also become an issue in the Connecticut Senate race. Christopher Dodd, a Democratic senator from the state who is chairman of the Banking Committee, faces a challenge from a Republican, Rob Simmons, who called on Mr. Geithner to resign over the bailout of insurer American International Group.
The Treasury secretary is a proxy for the real animus, directed at Wall Street.
Goldman is trying to pre-empt criticism; last week it announced a $500 million program to help struggling small businesses; Mr. Blankfein, for the first time, apologized for the firm’s role in the financial crisis that began well over a year ago.
This, and other charitable gestures by Goldman and JPMorgan, are chump change compared with the bonuses.
They also stand in stark contrast to the actions of a fabled corporate chief executive officer three decades ago. Chrysler’s Lee Iacocca, who successfully sought a government loan guarantee to save his foundering company, cut his own salary to $1 a year. As the government loan guarantee worked and the company’s situation improved, so did his compensation, rising to a total of $20 million. There was no resentment; he became an American folk hero.
These big New York banks, especially Goldman, claim that they owe the taxpayers little, they weren’t the ones rescued, and any money forced upon them was promptly repaid.
Rubbish. By tapping the American taxpayer to the tune of trillions, the government rescued the U.S. economy from the abyss. If we’d gone over the cliff, would Mr. Blankfein and Mr. Dimon be sitting in their comfortable executive suites today?
The public isn’t confused. Almost two-thirds of Americans, in a recent Time magazine poll, say Wall Street executive pay is completely out of sync, and more than 7 in 10 want the government to limit this compensation.
It infuriated people when Mr. Blankfein, 55, said this month in an interview with The Sunday Times of London, that Goldman Sachs was “doing God’s work.” In March, the usually smoother Mr. Dimon, 53, assailed politicians for populist rhetoric, saying government officials had to stop the “vilification of corporate America.”
Actually, the public thinks the government has been too soft on Wall Street. Mr. Blankfein and Mr. Dimon should test-market their views about God’s work or populist demagoguery on a jobless welder in Steubenville, Ohio. If he’s angry now, when his town has an unemployment rate of more than 13 percent, imagine the rage if Wall Street pays out record bonuses at year’s end.
“Marie Antoinette would be embarrassed by these guys,” says Nell Minow, the irrepressible shareholder advocate and corporate-compensation watchdog who is co-founder of the Maine-based Corporate Library. “They have no clue as to how much they’ve devalued the brand of American capitalism with this sense of entitlement, the arrogance; they genuinely feel the world will come to an end if they don’t take everything.”
…
Marie Antoinette embarrassed? She couldn’t even spell the word. Hell, this is right out of her playbook!
Here’s my turkey day drama: my littleman managed to find my brother-in-law’s pipe and a huge bag of weed. I wanted to strangle that idiot. To top it off, my pothead BIL starts talking about how his great-great-great-great something or another is Native American, and that he should apply for “Federal aid” because he “is an Indian.”
When nobody is looking I’m going to push that fool off the Skiff.
Thats ok Muggy a little 420 some rap and hip hop music and the masses are clueless.
So the “millionaire’s” have retired to the “executive” patio to smoke Cuban cigars & sip bragging rights aged Scotch where the underlying theme is thus: “Our Nation is in collapse…it’s the ‘igger’s fault…someone should (wink wink, hyena laughter) do somethin’ about that…”
I’ve grab my 1962 bottle of port, and excused myself to the solitude of the Pacific ocean breeze salt scent & Autumn evening atmosphere of twinkling stars and wood burning smoke from the fireplace…