Skip to main content.
September 30th, 2008

Bailout Defeated, Paulson a Disgrace, Democrats for Crooked Bailouts

Defeat of the bailout is cheered across the nation. House Republicans stood up for the American people against the phonies pushing the nonsensical 700 billion dollar bailout bill. A minority of dems voted against it also.

Democrat Treasury Secretary Paulson should be replaced, however, its late in Bush’s term so it may not make sense to fire him now. Paulson deserves the job and the scorn he so richly deserves. Paulson’s bailout plan was defeated and instead of Paulson admitting defeat and scrapping his lousy plan, his statements were reckless throwing fuel on the fire, spreading fear and trying to shake markets into free fall. Paulson’s comments were disgraceful like a child that didn’t get his way. He failed again as markets were up.

Republicans in the House will get the credit for defeating the bailout. Democrats are now the party of crooked government bailouts.

Posted by admin as Economics, General, politics at 1:52 PM UTC

No Comments »

September 24th, 2008

Let the Democrats Pass the Bailout and Explain

Democrats caused the housing problems and mortgage financial crises. Bush is willing to work with them as they called for. Bush warned and wanted changes to the government created and run Fannie Mae and Freddie Mac but Democrats blocked changes. McCain also warned and wanted action yet Democrats blocked him. Liberals supported the disastrous policies and Democrats in Congress and the Clinton administration set in place the policies that have resulted in disaster for the housing market. It’s up to Democrats that run the Congress to pass the bailout if they want and explain why everyone is paying the price.

It’s not neccessary and its a bad plan.

Bailout, Government Buying Mortgage Securities is Not Necessary

Posted by admin as Economics, General, politics at 4:52 PM UTC

No Comments »

September 23rd, 2008

Bailout, Government Buying Mortgage Securities is Not Necessary

The bailout plan put forth by Paulson and Bernanke is a bad plan. They want to develop a market for the securities by buying them at prices so called experts say they are worth with money backed by the government and taxpayer. A better way if you want to help those that are holding the mortgage securities is to provide low interest loans against them. Banks and investment companies would be able to carry them on their books with a portion, about half of the market value, financed by the low interest loans. Taxpayers wouldn’t have much risk of loss as the banks and investors would have to pay back the loans. A market for the mortgage securities is likely to improve and the values of the securities likely to rise as anyone buying would be able to get half of the purchase to finance them. Mark to market rules should also be changed to prevent the need of dumping securities and driving down prices. The Fed can provide the loans at the discount rate which is at 2.25%. The amounts loaned, percent borrowed against and the interest rate can be changed to increase and decrease the support of the mortgage securities market until it stabilizes. The government wouldn’t have to buy, hold or manage the mortgage securities and taxpayer risk would be limited because companies would be required to pay back the loans. Loans against the securities is a better way if we should do anything at all to help the holders of the securities.      

Posted by admin as Economics, General, politics at 10:17 PM UTC

No Comments »

September 19th, 2008

President, Fed, Treasury, and SEC Act to Protect Banks, Financial System and Economy From a Crash and Depression

The Fed led by Bernanke, Paulson of Treasury and Cox of the SEC worked with the President to put together a rescue package of the banks and the financial system. Congress will approve the plan. Financial markets were locking up as lending stopped and confidence was shaken. It became impossible for markets and financial system to work. A run on the banks was a near certain which would have been devastating to the economy. A financial meltdown was happening and without action the economy would have collapsed.

The Fed run by Bernanke didn’t do enough after he made a large mistake of driving up interest rates and breaking the housing bubble. The financial mess was caused by government policies including government agencies of Fannie Mae and Freddie Mac buying mortgages with an implied government backing. There was corruption in the two agencies without any concern of eventual problems. Democrats ran and pushed them to continue borrowing and lending on and on without thinking of the problems that would be caused if and when the housing market slowed or declined. In the Clinton administration and Democrats in Congress pressured banks and mortgage brokers to make loans to minorities regardless if they can pay for the mortgage. If loans weren’t made, banks would be fined, penalized and accused of racism. Obama worked with a group that pressured banks to make the bad loans. Minorities that got the loans were harmed in the long run facing foreclosures and harming neighborhoods they live in such as Detroit as foreclosures drive home prices down.

With the government forcing mortgage loans and implying a backing of them an entire market for them developed. Rating agencies rated the mortgages high, expecting the government to keep everything going. Investors including wall street firms, insurance companies and banks bought the securities without worry. The government was backing the assets directly or indirectly. Money was being made, it was all without risk, until everything started to fall apart.

Fed Chairman Greenspan raised rates to a more normal rate but then Bernanke took over. He is a Democrat and wanted to live down his ‘Helicopter Ben’ name which means supporting an easy money policy to expand the economy. He couldn’t go against his buddies like Dem Chuck Schumer and continue the strong economy. Bernanke said he wanted to break the housing bubble and used that as an excuse to make his Democrat buddies happy by slowing the economy to help them win in 2006 and the Presidential election in 2008. He won’t be called ‘Helicopter Ben’ again. A name for him would now be economy wrecker, market crasher, or recession Ben. As Bernanke raised rates it squeezed the economy and killed the housing market. Like the Titanic that couldn’t sink, the investments in mortgages started to decline as the housing market slowed then dropped sharply. As banks and investment companies capital was declining in value another foolish government rule forced the value of the securities to be marked to market, which is valued at the trading market value. But the market was falling as investors were forced to sell, driving prices of mortgage securities and other investments lower and lower. Short sellers attacked weakened investment companies like Lehman, banks and insurance companies like AIG. When financial companies securities fall they can’t get loans to operate. Confidence in them falls and no one will do business with them putting them into bankruptcy. Which only spills over to harm the next company or bank that deals with them or loaned them money. A downward circle formed with more and more effected and the markets and financial system froze up. The economy can’t operate without a financial system. Financial collapse, crash and the resulting recession and likely a depression was avoided when the President acted with the Fed, Treasury, Sec and many central banks around the world to lend money and back the world financial system.

Posted by admin as Economics, General, politics at 2:28 PM UTC

No Comments »

September 17th, 2008

Stock Markets, Fed, and Short Selling, Whats Really Going On

The markets are shaking with short sellers, naked shorts, pounding confidence out of the market and capitalism. They are shorting stocks as they drop, run phony stories or count on media to spread fear that the company is in trouble. Falling stock prices causes the company to be in financial trouble because no one will lend or do business with them. The shorters are not creating orderly markets, which is needed in capitalism and what markets should be. They are causing disorderly markets. That’s not capitalism or free markets. They are manipulating and using the rules of the game to make billions. Why don’t I think its conservatives making the billions shorting? It’s those that hate capitalism or just don’t care that short sell like that.
The Fed is slow to act and that’s causing more problems. Bernanke is a Democrat, Chuck Schumer loved him. I was against Bernanke from the beginning. I thought he would try to ruin the economy and he is really trying to. He knocked the housing market down while claiming he needed to slow down the housing boom. A housing crash is better than a boom? Now, the Fed and Bernanke is slow to get a head of the markets and the economy. The Fed is only slowly feeding the economy so its in a slow down turn, destroying confidence in capitalism, while making it look like they are doing everything they can. (making capitalism look weak).
Bottom line, the Fed and the short sellers can break the entire economy and send the country into a crash, serious recession or even an economic depression. I think the economy can hold together but its because of the strength of the economy. But Bernanke and the short sellers are causing a major problem, knocking the economy and may kill the economy. If AIG was bought by others, they would have had problems as short sellers would have pounded them and stories would have been that they are now in financial trouble. Also, few companies have tens of billions to invest in AIG. Maybe only Microsoft has that kind of money. AIG has many assets but no one would buy it. Why? That’s because markets are running scared, not free markets saying something has no value. Now that Lehman is bankrupt, people expect the bankruptcy court will force quick, fire sales of assets driving down asset values even more hurting other companies and individuals holding them. It has nothing to do with the real value of something but rather a snap market price. Lehman shouldn’t have been bankrupt. A large bank should have been able to take it cheap if they had a real problem, but the fear is there and no bank could take the large asset. Lehman should have been able to get loans. Now a UK broker is getting assets, the broker-dealer cheap. Lehman has shaken confidence which is important for finance and the economy. I wrote over a year ago to Bush saying Bernanke should be fired. The Fed needs to get money into the system. They aren’t doing it with the excuse of the fear stories of a dollar falling. Its a fear story, a strong economy and solid financial companies drive the dollar up, not down. If temporary the dollar is down, fine, it helps exports. But in a few months as people see banks are strong, making loans, the dollar will rise in value. There are many other issues like company ratings and many government laws and regulations causing the financial problems. The theory of let the short sellers sell isn’t the free market capitalism. Its phonies playing games. I don’t know why Christopher Cox hasn’t re-imposed the up-tick rule. Also, the Fed playing a giant game of tight money when the Fed is the system (maybe the fed system isn’t good) but that’s what the system we have. And the Fed is slow to act and others are shorting as fear sets in and that’s hurting many more. Its not the free market. Because most don’t understand economics they are getting away with it.

Posted by admin as Economics, General, politics at 3:32 PM UTC

No Comments »

September 10th, 2008

Obama Campaign is a Comic Act

Lipstick on pigs, ha ha, old fish in paper, so funny. Isn’t the saying dead fish wrapped in newspaper? The meltdown of the Obama-Biden campaign is unfolding before us. Obama and his liberal supporters are going crazy, desperately trying to make something stick against McCain and Palin. The wheels have fallen off the Obama campaign a few weeks back and continues to look like a comedy act or a movie of a comic candidate for office. At least Obama can be a night club comedian and make a good buck after this campaign is over. Obama campaign was a joke since the beginning but now even Democrats are realizing it.

Posted by admin as General at 5:47 PM UTC

No Comments »

September 2nd, 2008

Governor Sarah Palin the Right Vice President

McCain picked a strong conservative in Alaska Governor Sarah Palin that has energized conservatives for the election. The McCain-Palin team for President is strong and should win by a large percent over Obama and Biden. The Dems fielded a weak team with the big mouth Senator of little fame as VP that is suppose to be the one with the knowledge on the ticket. Biden has a record of supporting old liberalism. He isn’t a fresh face and has accomplished little in over 30 years in Washington. He brags that he takes the train at taxpayer expense.

Compare Governor Sarah Palin to either Dem and she wins easy. Palin has executive experience that neither Obama or Biden have. Palin was elected mayor and is the Governor of Alaska. She was also on an important oil commission and fought against corruption. Governor Sarah Palin is a self made success not having followed the apron strings of her husband like Hillary Clinton did. That is what drives the liberal feminist groups crazy about Governor Palin. Their “gal” Hillary needed her husband and stayed with him even after he abused countless women to have her chance in politics. Governor Palin is a strong and successful women that is right on the issues. She can speak well and will make a great Vice President when McCain Palin team wins in November.

Posted by admin as General at 6:16 PM UTC

No Comments »