Louisiana has gone through four severe hurricanes in three years and now it faces a national storm that could fracture our economy that much more.
Some are calling it the “financial crises” or the “Wall Street crises” and think that it is “they” who will be impacted, not us.
But the gale winds pack a powerful punch and includes a “credit freeze” which is blowing into our neighborhoods, towns and cities right at the time when many of us are trying to take care of the basics, post storms 2008 and 2005.Many individuals’ credit is already in tube city due to a bad economy and a credit freeze could be the death knell.
Worse, this crises is punctuated by a political feud so deep that the wounds are festering.Right at the moment that America is waking up to the realities of this financial meltdown, we are faced with elections from dog catcher to President of the United States.Our politicians are generally so partisan in nature that they cannot do what is right for our country which is simply keep politics out of this crises stew.
Yes, it was absolutely stupid yesterday for Nancy Pelosi to cast stones prior to a critical vote.It was also imbecilic for Republican House members to vote against legislation they were willing to pass—but refused to do so, simply out of anger towards Pelosi.
Which is why politics and crises mending are bad bedfellows;Our elected officials on both sides of the aisle talk a great game about coming together, but, when push comes to shove, there’s a lot of body parts clogging up the presses.’
As Suzy Orman said on CNN, we are talking about seven hundred billion dollars in a bail out and in one day, we lost a trillion dollars in wealth due to the biggest point loss in Wall Street’s history.Her numbers might be off, but the point is well made.
So getting past the politics of yesterday, we are no longer just dealing with High Noon on Wall Street.It’s becoming Nightmare on Main Street for those across the US and in Louisiana.Four hurricanes, bad politics of the past, credit dysfunction ofpost-Katrina past, credit freeze associated with the financial meltdown could make it even more difficult for some of us to overcome, no matter how hard we try.
Without doubt, during these past nine months, the Jindal administration has been poised for basic infrastructure growth, then came Gustav and Ike.My best guess is that thousands in Louisiana daily are still deciding whether to buy the basics--gas or groceries.They just aren’t making it because they haven’t overcome Katrina, Rita, then Gustav and Ike and now what could be the biggest killer of them all, that credit squeeze.
I am already seeing individuals trying to sell their homes yet being denied.They buyers are people with great credit yet, not able to get loans.Why?Because the national economy and the local market is too unstable.I am watching local businesses with great credit go to banks and get “the so sorry”.We are all seeing the trickle of banks failing, being gobbled up by others, and in a micro economic sense, we wonder if we will be able to pay the house note, the tuition, the credit card bills and we are hearing horror stories that credit card limits will be reduced and personal lines of credit will be a Christmas ghost of the past..
As you know, when we cannot get credit, our properties do not sell, our investments in real estate market in South Louisiana are too risky, our growth wealth takes a deep dip, our businesses are unable to grow since we lack the equity we once thought we possessed..
Some very respected experts believe that Louisiana is prime to do better than most states but if businesses cannot get loansand properties won’t sell and if we still are trying to collect for Katrina and Rita, it is a short distance to the border for those with an education and who might just say, forget it.Life is too hard.
So, when we think of 401 K’s and stocks, we must focus on the basics.Can our basic Louisiana businesses grow and build wealth when some of the trusted lending institutions and banks won’t invest and we cannot sell or borrow off of our equity to build our part of the American dream?
Absolutely, there are some who play the market and their loss is uncertainty on Wall Street.But, for those on Main St.Louisiana, the issue is credit and cash.Can the average person pay off the mortgage?Can they feed their families?Can they buy cars so they can get around and look for jobs?Can they reach the American dream and use pure entrepreneurship off the sweat of their own brow or will the national economy freeze out their hopes.And, if so, then how long will the credit cold last?Will it be a short blast or a deep freeze?We can guess, but in reality, nobody knows, especially as we engage in politics muddling up the soup.
The Jindal administration has plenty of hope and good ideas but even they have been hampered by a slow response from the federal government during and post Gustav and Ike which has made matters even less promising.Without doubt, they have the skill level to take Louisiana to the next level assuming no more catastrophes, hard work and a lot of good luck.Since the beginning of last month, Louisiana citizens have been spinning around like a top from hurricane to hurricane to financial crises to credit crunch.While we hope the latter goes with the wind, in reality, unless our political leaders get their respective acts together and confect workable solutions, the credit crunch could be the major problem facing this nation and certainly this state.
Louisiana is too beautiful with great resources and well intentioned people to be hamstrung by shutting down of businesses, of homes and of hopes.Somehow we must find a fix devoid of politics.Otherwise this fall and winter, those frigid winds of credit freeze will replace the hot blasts from the HurricaneGulf.The result is it could take many of us longer to recover, if we are able to do so at all.That could be a major problem this state might face as we try to rebound and compete in the global economy.
KPF, Loans to the Poor? How about irresponsible loans made out to irresponsible people? I mean, it probably really only amounts to how poorly the poor definition or the poor use of the word poor can poorly become when utilized in that poor of a poor fashion…… Written by
on 10/2/2008
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The entire premise of the scare tactics used to promote this bailout is simplisticly incorrect. What happens without a bailout? The lending institutions who loaned out gazillions of dolars to the poor (uh.... HELLO!) will lose money - they and their stockholders. However, lending money IS profitable - IF it is loaned out to those who can pay it back (gosh, I think that is significantly important by-golly). Lending money WILL continue - not by those institutions who foolishly made ill-advised loans - not to those without collaterial or a means of income - but loans will be made. People will be able to buy homes and cars (those of us who have worked and saved, who have more saving than debt, etc.) - those who are unable to get loans will need to get an education and work to become credit worthy. In other words - with no bailout - the American people will have to be responsible instead of getting more than they need on money they do not have. Less debt, more responsible borrowers and lending practices is the result of "no bailout." In the long run a good thing. Written by kpf
on 10/2/2008
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Oh no Ben, don't think this mess was caused by Democrats trying to score points with their base by instituting lending practices whereby their poor base (largely created by the Great Society "reforms") could obtain housing that a true free market would not provide (due to the silly little fact that they cannot afford to pay their loans off, Capitalism can be so cold and cruel). Oh no, it wasn't wrong-headed socialistic tinkering with the market that caused this... not at all. It was GREED, CEOs making too much money, Capitalism in general, lack of Congressional oversight and regulations. What about those taxpayers who think it's wrong for them to bail out those who screwed up? Obviously they are being greedy themselves - or at best - ignorant and short-sighted. In any case, perhaps my heroes in the House will thwart the "Dark Forces of Evil" yet again. Written by kpf
on 10/2/2008
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Stephen, I think you are wrong when you called the House Republicans "imbecilic" for not voting for this bill! Nancy Pelosi knew these Republicans were not on board but she called for the vote anyway. She & the dems wanted it to fail for one reason only one, to blame Republicans & George W. Bush and elevate Barack Hussein Obama as presidential material and John McCain isn't, proving what Barney Franks had said; "John McCain isn't needed to solve this problem". Barack Hussein Obama blew any chance of a bill passing when he hijacked the meeting with Dubya, McCain and House dems, Republicans. Put the blame on Barney Franks and Chris Dodd when back in 1999 during a joint hearing both pressure Fannie Mae & Freddie Mac with the help of ACORN to raise the lending ceiling from 40% of net salary to 60/65%, thus creating today's problem. In 2002 the same pair said there wasn't any need for addition oversight of either agency both were solid and under good management. Year 2006 Republicans called for more oversight and the democrats blocked any bill presented! As far as our banking institutes, from what I've heard they are in great shape. I don't need a loan for anything and my home was paid off years ahead of the mortgage due date. So Stephen you may have the edge on this item although my church is going into a $14 Million plus building phase and so far haven't run into any problems getting a loan. Written by Ben
on 10/1/2008
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Oil fell to $98.00 a barrel (again) today. Now, for those that keep track of this the last time oil was $98.00 a barrel the price per gallon at the pumps was around $2.50 per gallon. So what is up with this $3.+ into infinity price????? Written by
on 10/1/2008
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'Mortgaged Homes' Hmmmm..... Mort - as in mortally, and gagged, as in gagging? Mortally gagging homes? Eeeeeeeeyewwwwwwww!!!!!! Written by
on 10/1/2008
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I really want to thank the Bayou Buzz for allowing me to not only realize, but fully understand that for the most part, people that surround me obviously have their heads firmly lodged up their azzwholes… Oh the jokes that can be made!!! Take the Stuperdome, the Aints, and 7 - 18 wheelers full of food that had to be evacuated because of Ituhcaine Gooseedoff for instance (Being a progressive thinker, I believe the moniker Hurricane to be a sexist reference and therefore I feel those things should be called Ituhcaine’s instead, however by positioning or implying ‘It’ in the prefix, this nomenclature may offend the transsexual gender who are viable and productive members of our community, if that truly is a gender and not a bender, and reference to bender may offend the Homosexual community and that as we know is taboo too…….. After all, if it weren’t for transsexuals, Steve Tyler with Aerosmith wouldn’t have had a catchy phrase like ‘Dude looks like a lady’ in one of his songs and therefore wouldn’t have generated as much money as he was able to in the record industry in order to provide more jobs for sound mixers, band members, roadies, agents, ticket agents, promoters, etc., etc., etc….. Thank Gawd for Steve Tyler though, he does make many a Saturday night, and many a six pac of cold beer more enjoyable……….. perhaps not more understandable, but a little more enjoyable….. well - - that is for sure…. As long as I don’t have some dude that looks like a lady coming around trying to ‘hit’ on me…… That’ll work too…….. Ahhh those gray hairs of mine, The other night I had a cute little gal tell me they make me look ‘distinguished’ ……….Anyways………..) … So here we are, in wonderful Louisiana, shuttling around 18 wheelers full of food for a foot ball game, and then pitching a bitch when FEMA is a little slow delivering MRE’S and bottled water for the common citizenry…….. Go figure folks…….. Oh, and yaayyyyyyyy Piyush!!! Rah-rah-siskoomba!!! Yeaaaaaaayyyy BOBBY!!!!!!!! Those are some real smooth thinkings and priorities there dude…… I just thought of something,,,,, If you took someone who was Jewish, and they married someone that was Buddhist, would their child be a Judist Priest? (o.k. ‘Judas’ for the lame ones out their that are a bit slow and can’t recognize, let alone appreciate a good joke or play on words which I think is called a pun, when it comes along and slaps them right up side their head.) Oh yes, it’s a nice day for a…… white wedding……… Speaking of weddings, how about this Wall Street/Congress marital spat thing? Most folks don’t have the slightest clue what’s going on….. They think it is to bail out mortgaged homes……. Well, let me sort of break this down for y’all some….. Take a can of Campbell’s Condensed Chicken Noodle Soup for instance….. You pick up a can, read the label, you see the word Chicken, and you automatically think - - - - -- - - -- “Ahhhh,,,, chicken!!!!!!” But when you open the can, pour out the contents, and examine them with regards to ‘its’ ( it,,,, now there’s that suggestive word again, dayammmmmmm) chicken content or value, well, surprise! – surprise! –surprise!!!!!!!!! The flecks of chicken are hardly even noticeable….. But wait, that’s because you didn’t really understand what it was that was presented on the label in the first place….. To begin with it was Campbell’s…. In other words, it is some group of folks that call their selves Campbell’s idea of what is truly is…… O.K. It is Condensed… We are getting a little closer to clarity now……… Well what does condensed mean? Reduced? Smaller? Less? Occupying a fraction of the space? Bingo!!!!! You are catching on there……. And the noodles and soup part are simply more of the abstract to take your mind off what the subject was in the first place….. O.K. Wall-Street Bailout for the mortgage industry……. Or is it the Mortgage industry bailout for Wall-Street? But who’s idea is it? And what kind of mortgages are we talking of here? This is where it gets funny. Are we talking first, second, or some kind of twisted 3rd as in 3rd party mortgage funding???? How much equity is really out there…. Are we talking 150K worth of house, that has had 145K paid on either the principle, or the interest, or the commission+ and because of a 5K deficit it is ‘bundled’ with the rest??? What are the numbers???? Tell me how many Jacuzzis, diamond rings, hummers, pool tables, x-boxes were purchased because of a second mortgage…. How many starbucks coffee shops were financed because someone wanted a franchise and they mortgaged a $500,000 home that was really only worth $285K to finance their ‘business’ venture…. Is this the ‘Wall-Street’ in the equation? How about all the municipal bonds, money market accounts, insurance mergers that were financed and based upon mortgage holdings of equity? Seriously, do any of you all really understand what is in that condensed soup bailout package? And all anyone can do is holler about CEO’s pay…. Give me a break please……………….. Written by
on 10/1/2008
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Just wanted to thank Tee Dub and his democrat enablers for coming to my rescue. The notes on this villa on the 8th fairway were eating me up. It looked like I was going to have to lease a lower model Porsche than I have been used to. But thanks to the subsidies, I'm looking forward to a judge lowering my interest rate, so I can upgrade the Porsche, and pick up that new Donzi for next year's regatta. Written by golfing guru
on 10/1/2008
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Perhaps the patriotic duty each of us can perform that will get us out of this financial crisis is for every American to voluntarily give these Wall Street firms as much cash (figuratively speaking, they'll take you check) as each of us feels is needed to avert this financial crises. It's your duty. Akin to the World War One cry of "Uncle Sam Wants You!" we can rally our populace with "Wall Street Needs Your Money!" DON'T WAIT FOR CONGRESS TO ACT, make that check out to the Wall Street CEO of your choice today! There will be dire consequences if we do not give these firms money, don't take out a loan, just give it to them... give them more and more money. The more you give the better off all of us will be. Act now before it's too late. Written by kpf
on 10/1/2008
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But TeeDee, it sounds all Western European to me. What lessons about taking care of the most vulnerable and needy of our society have I missed in my plan??? All of those paid-off mortgage people were probably born rich anyway, right?? Written by rest of the story
on 10/1/2008
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Ha ha ha. Really clever. And by clever, I mean idiotic. What a pinhead. Written by Tee Dub
on 10/1/2008
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The democrats are leaving out one huge piece of the puzzle on their solution to this crisis. Sure, they've already dug in on the point of taking tax dollars to keep their people in homes that they could never have afforded and should have never bought. But we are supposed to finance them with tax dollars to lower their mortgages and keep these irresponsible borrowers in the houses. But here's what's missing from this new take on wealth redistribution. There is a large portion of smug Americans who took out mortgages that they can afford, or even worse, have actually paid off their mortgages and own their own homes without debt. These greedy selfish racists should be forced to pay taxes equal to their mortgage payments to hand the under-housed and under-financed Americans what they have not earned or paid for. To use Joe Biden language, it is not patriotic for some Americans to have no mortgage or mortgages within their budgets while other Americans have gigantic mortgages that they can't pay. If it's right to reduce payments for people who can't pay, then the democratic way is to increase payments for those who can pay. Written by rest of the story
on 10/1/2008
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Enlighten this ignorant person. How could our money have become "worthless" in the Great Depression if it had been still tied to gold and silver? Did gold and silver become "worthless" during the depression? Written by kpf
on 10/1/2008
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I think that there are a lot more pictures of people from the Depression era who didn't have money to burn than there are pictures of people who did. Written by Richard P.
on 10/1/2008
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Not your opinion of Ron Paul or his pick for president, the IDEA of "sound money." Perhaps I am simple-minded but I cannot but wonder.... when I see pictures of people using paper money - money that was no longer tied to precious metals - as wallpaper or as fuel in wood burning stoves during the Great Depression.... wasn't this depression era consequence of "worthless money" only possible AFTER our currency was no longer tied to gold or silver? As far as being "anachronistic" a good idea is a good idea, regardless of how long it has been out of date (such as the U.S. not being "the world's policeman" - yet another anachronistic principle abandoned by BOTH major political parties). Written by kpf
on 10/1/2008
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Why do I bother?... but, Mr.Anonymous-- Do I need to add up the deaths, the lame, and the injuries... on both sides of Bush's stupid War? (Those statistics are more alarming than the exorbitant war-spending).. But-- we were talking about the economy-- and how we got into this mess. Don't twist my words... And while you're at it-- try to limit yourself to one or two paragraphs. Written by KjunLady
on 9/30/2008
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But, when it comes to freedom, well, when China comes to foreclose, what are we going to tell them? We aren’t going to pay them? I hope not…….. And then comes economic hard times….. Yeah folks, this is about Freedom……………………. Written by
on 9/30/2008
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And yes, I wouldn't mind not having to spend $2.85 a day out of my pocket for Iraq, but what else is there to do? Can't hardly just drop it...... Lot's more problems... The patriot act....? Not too crazy about it.... I understand its intent, but I am also acutely aware of the way for its abuse... We have a problem with China and its 'Most favored Trading Nation' Status... We also have NAFTA concerns to address, tarriffs, and import taxes........ If Jindal wants to bring a business to Louisiana, heres one that can employ 50 or a hundred people, and wouldn't take but around 150K to start... Baby cribs... No one in the United States manufactures those... Oh, the Amish do, they sell them over the internet... Ha-ha-ha-ha-ha!!!! The Amish AND the internet? Now that is a compormise I can deal with!!!!! Written by
on 9/30/2008
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No, that is not the whole story Walker…… For some reason MC Hammer comes to mind…. A truly dynamic person…….. He’s from the Oakland Bay Area out in California…. Quite the success story, even in his supposed ‘failure’. He went bankrupt…. Folks liked to point out to him it was all the cars he had…. Yeah, he had a lot of cars….. 10 or 15 of them…. Cars he liked. Like ’72 ‘Caddies that cost around 2 or 3 thousand dollars each, a Continental (again, only a couple grand), a Mustang and a Camero I think, and a few other assorted ‘toys’ that really wasn’t that much…… His House? Well now, that was grand, but it was what he wanted, and actually it was a good investment……. And a celebrity such as himself did need a nice place to entertain his guests…. So what caused his bankruptcy? Mismanagement of funds? No… It was his big heart……….. Anybody and everybody could have a job through him…. Guy down on the street corner, hey, take a shower, put on these clothes, and your job is to stand in this spot…… Gal down the street? Clean up, stand at the door behind the usher at the concert and smile at the ticket holders as they walk by. Etc., etc., etc……. A community program needed money for a playground? No problem, here’s 50K….. and on and on it went …. M.C. Hammer is a very kind and generous person… Just like Max Baer was…….. I’ve never met MC, would like to though, he has true heart……. And that is why he went bankrupt…. He literally cared and loved so much that he gave it all away…….. And you compound on the mortgages to folks that couldn’t afford them as a result of Congressional attention and action? Yes, in part……. And consider the additional fire stations that were built to support the building of those homes, and the additional roads, sewage, schools, shopping centers, etc., etc., etc….. I am sure there are some of those bundles hidden in the 750 billion in the form of bonds acquisitions and handling…… And consider the insurance etc., etc., etc… And the automobiles, and on and on and on…. But the main thing with Congress is they half stepped….. They authorized these actions, and made it impossible for the instruments that were necessary to make sure the debt loads were retireable to remain……. They sold a fruit tree that was incapable of bearing fruit…. That is worse than selling a farmer some land and then restricting its access to water, and denying it a permit to drill a well in order to save itself…………… And then you have the burden of societal programs that are ‘bloated’. KPF states a 1 or 2% factor…. Sure, on paper that’s what it appears to be, now consider administrative costs, and infrastructure costs to make those programs that are funded continue to operate….. Maintenance issues were overlooked… Therefore, the 1 or 2% actually becomes 5 to 9%. Toss insurance, unemployment, crime, health, etc. onto the heap and it balloons out of sight…. But the ‘real estate flippers’ as well as the realtors? Big drain…. And then consider as property values depreciate, in order to make up for property tax losses, states then resort to additional Government funding programs and initiatives which again require bonds……… and somehow down the road the whole thing appears to become diluted when in actuality it is simply a convoluted mess. The S&L of the 80’s? NEVER RETIRED……. It was rebundled, repackaged, reshuffled, until it disappeared out of sight, out of mind…. That is included in the 750 Billion>?>>>>>>>> ACCOUNTIBILITY FOLKS! PRACTICALITY! ARDENT ABILITY!!!! ANY SUGGESTIONS OUT THERE??????? Written by
on 9/30/2008
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TeeDub,
None of your "Freedoms" have diminished since the Patriot Act was enacted. Unless, of course, you are a slimy American engaged in illegal activities with members of known terrorist organizations trying to attack our country. Now since you are a liberal, you might fit into some of the criteria for being "Un-American". But, I'll give you the benefit of the doubt since liberalism is a mental disorder.
Written by Walker0416
on 9/30/2008
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A Postscript. Market vicissitudes aside, the issue is now under further study, and the ultimate outcome now has a fair chance of not being such a knee jerk, gun-to-the-head approach authored by the same people who benefitted most from the previous raid on the populus (and rubber-stamped by their well-paid underlings in the legislature). And the DOW closed UP 500 points today, reflecting the markets' confidence in the emerging good sense of the Congress on the matter--Indeed, in the fullness of time yesterday's 777 point drop will be but a grain in the sands of time. Written by NotSoFastEddie
on 9/30/2008
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Kerry, I'll be honest, I was with him in the first part of the argument regarding banking complexities, but then he lost me with his avocation of the gold standard, which is simply unrealistic. It's one of the reasons I don't support him - he's a bit anachronistic. I also saw that he endorsed a Pensacola theocrat for President, which gives me the heeby-geebies. This country is already too much like Iran for my tastes without making it more so! TW Written by Tee Dub
on 9/30/2008
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I posit that I would be just as free had we never gone into Iraq. In fact, my freedoms have diminished since the Patriot Act (associated with the so-called GWT) was passed. So as much as it might annoy you, Walker IQ 46, I state unequivocally that the Iraq War has not been about my freedom, at all. TW Written by Tee Dub
on 9/30/2008
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Me cher TW, I don't know, me, no, cher, no. But I cannot help but think: How much better off we'd be if we did not have government created "funny money." Tell me what you think of the IDEA behind the statements on the link. Pay no attention to the B.S. that "he's a racist" (he most certainly is not) .. just read this short article and tell me your thoughts... be "brutally honest" ... you won't hurt my feelings as 1) I know I'm no economic genius and 2) have a thick hide.
http://www.ronpaul.com/on-the-issues/fiat-money-inflation-federal-reserve/ Written by kpf
on 9/30/2008
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Kjunlady,
"Do ya think that the 30 Billion Bucks we spend each month on a needless war has anything to do with our present financial dilemna?"
Actually, it has NOTHING to do with that money. The financial "crisis" is due to Congress requiring "Wall Street" to make BAD mortgage loans to people who COULD NOT AFFORD THEM!!!! That has absolutely NOTHING to do with the cost of YOUR FREEDOM!!!!!
Written by Walker0416
on 9/30/2008
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"It is a grim picture of 21st century debt-slavery" And on that account I will heartily agree with you T-Dub...... And unfortunately it was the liberal dispensement of principally unbiased (big pun intended there) loans that caused many of the problems..... Now is the time to take some very biased action on some very imprudent subjects… Written by
on 9/30/2008
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There is such a rush to blame liberals for the current crisis, when liberals haven't been in power in this country for well over 30 years (sorry, Bill Clinton doesn't qualify). That dog won't hunt! This crisis is the direct result of lax oversight brought about by years of Republican "pro-business" anti-regulation policies - this (within the asterisks) from Mike Whitney: ****Greenspan and the privately-owned fed played a major role in putting us in this mess by rubber-stamping the new system of precarious loans (no down payments, interest-only loans, ARMs) and perpetuating their "cheap money" policies. Greenspan admitted this a few months ago when he said that current housing increases were "unsustainable" and would have corrected long ago if not for the "the dramatic increase in the prevalence of interest-only loans... and more exotic forms of adjustable rate mortgages that enable marginally-qualified, highly leveraged borrowers to purchase homes at inflated prices."
Greenspan's circuitous comments are tantamount to an admission of guilt. The fallout from the fed's policies are bound to be widespread and devastating. The country has been buoyed along on $10 trillion of borrowed money which has created the unfortunate sense of prosperity which is not reflected in the general economy. The increase in housing prices has not come from wages (which have actually decreased under Bush) or from demand (inventory is now at a 10 year high) It has merely been the availability of low interest loans and the promise of getting rich quick. As the market cools, millions of Americans will either face foreclosure or be shackled to a mortgage that is higher than the dwindling value of their home. It is a grim picture of 21st century debt-slavery.**** And mortgages are just the tip of the iceberg - credit derivatives, credit derivative futures, and all these complex financial instruments have created a house of cards with banks all supplying each other lines of credit that will fall apart if one of them fails. That's why people are so afraid, y'all. This could get really ugly. TW Written by Tee Dub
on 9/30/2008
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And of course one would wonder why oil prices are dropping…. Simple, they have to do something with all that stuff, may as well make some money…… Even a farmer knows not to leave tomatoes simply laying around in the field, they have a shelf life, and production refinement facilities constantly need maintenance…. I remember when Russia finally ‘tore down the wall’…. Pretty smart of them really, I laughed as I thought of the sheer simplicity in their plan to rid their country of a vast number of ‘Freedom loving liberals’ that would flock to and infest other regions of the globe like the plague…. They still love the state distribution system, they just wanted a little more. And America is one of the few places to achieve that….. But anyways, we sort of have an advantage where the acquisition of raw materials could be concerned being as we have pretty much dumped our manufacturing processes… But one has to recall the 1.5 trillion in hard assets the Chinese have (interesting, but I think the 1.5 trillion is the real number we are going to find we need rather than the 750 billion currently being demanded….. Coincidence? Me not think so!!!!!!!!!) But we also have the double whammy of the additional several Trillion in obligations via the Treasury the Chinese have as well as the, uhhhhh,, 750 billion…………………. Credit? Try 28 – 42% interest rates on for size because we are barely servicing our previous interest rate load, and not even paying attention to the principle involved in the subject…. Enter domestic tranquility…. Not when we have hostile dynamics out on the horizon above and beyond that of the Chinese making a larger and larger presence felt around the globe… There human rights record is crap, and as far as those who rant and rave for minimum wage, well, I am sure the Chinese will support that, for the government employees here in the United States so that at least those functions can continue to operate in a reasonable fashion………. I know I am jumping the gun posting this, because actually it is in anticipation of some kind of attempt of some kind of substantiation of a subject steeped in procrastination to be posted by a person prone to altercation……… Man are my little fingers getting tired!!!!! We just need to pay a little more attention to what we are doing…….. Boy am I glad I am posting on one of those word processor programs, the Bayou Buzz server or program is being particularly obnoxious today….. Lot of good education is being lost out there folks….. But I just thought of a big funny…….. That Jewish Controlled World Wide Banking Conspiracy???????? Ha-ha-ha-ha!!! I don’t know of too many ‘Jewish’ Chinamen!!!!! Oh wait a minute!!! Perhaps there is Lee Woochild wandering around out there!!!! Ha-ha-ha-ha-ha!!!!!!! But wouldn’t that make him ½ Jewish and half Buddhist? Now THAT is funny!!!! Hari-Kirshna! Hari-Kirshna!!! Hey, surprise, surprise, surprise!!! My last post suddenly appeared ont he Buzzy Bored... Oh happy day!!!!! Written by
on 9/30/2008
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And of course one would wonder why oil prices are dropping…. Simple, they have to do something with all that stuff, may as well make some money…… Even a farmer knows not to leave tomatoes simply laying around in the field, they have a shelf life, and production refinement facilities constantly need maintenance…. I remember when Russia finally ‘tore down the wall’…. Pretty smart of them really, I laughed as I thought of the sheer simplicity in their plan to rid their country of a vast number of ‘Freedom loving liberals’ that would flock to and infest other regions of the globe like the plague…. They still love the state distribution system, they just wanted a little more. And America is one of the few places to achieve that….. But anyways, we sort of have an advantage where the acquisition of raw materials could be concerned being as we have pretty much dumped our manufacturing processes… But one has to recall the 1.5 trillion in hard assets the Chinese have (interesting, but I think the 1.5 trillion is the real number we are going to find we need rather than the 750 billion currently being demanded….. Coincidence? Me not think so!!!!!!!!!) But we also have the double whammy of the additional several Trillion in obligations via the Treasury the Chinese have as well as the, uhhhhh,, 750 billion…………………. Credit? Try 28 – 42% interest rates on for size because we are barely servicing our previous interest rate load, and not even paying attention to the principle involved in the subject…. Enter domestic tranquility…. Not when we have hostile dynamics out on the horizon above and beyond that of the Chinese making a larger and larger presence felt around the globe… There human rights record is crap, and as far as those who rant and rave for minimum wage, well, I am sure the Chinese will support that, for the government employees here in the United States so that at least those functions can continue to operate in a reasonable fashion………. I know I am jumping the gun posting this, because actually it is in anticipation of some kind of attempt of some kind of substantiation of a subject steeped in procrastination to be posted by a person prone to altercation……… Man are my little fingers getting tired!!!!! We just need to pay a little more attention to what we are doing…….. Written by
on 9/30/2008
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Excellent Eddie, but would you mind sharing with us what that has to do with interest rates, valuation, foreign markets and future trends where capital infusion can or should be concerned in the market place??? I could care less about a CEO's golden parachute, they probably only amount to less than .000001% of the overall problem..... So the eyes are focused on the left hand while the right hand does wahahahahahat? Written by
on 9/30/2008
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Walker0416 has it exactly right. Steve, if you're looking for columnists, look no further--Walker0416 would fill the bill quite nicely. Chicken Littles everywhere, and the Goldman Sachs guys (I mean the Sec. of the Treasury's) got a gun to the head of the President and the Congress. Mark-to-Market, like so many other political solutions relys on a "lowest common denominator" approach to a problem. The Financial Accounting Standards Board--which incidentally is the regulator of this mess (and I dare say "over-regulator")got it all wrong. The (very) old lower of cost or market approach was healthier for balance sheets and income statements (it kept lots of unstated--stealth--capital in the form of unrecognized profits in the banks' and brokerage houses' coffers, off their profit and loss statements and out of the pockets of their executives at Christmas time). The old accounting rules also tended to take out a lot of the "noise" of market upsides as well as downsides from the balance sheets of companies, and served as a buffer, much as the barrier islands do to the inland areas ('Main Street anyone?), due to the volatilities of these market swings. Analysts were free to do all the intrinsic and discounted cashflow valuations they wanted on the stocks in the financial sector, but when they got it wrong, or when there were market swings, they and the companies' executives did not wipe out the companies, only the gambling speculative investors and their advisors. And one more thing: Why have the security ratings gurus--Standard and Poors and Moody's--not been under FBI investigation for their bogus AAA ratings of those, essentially, "junk bonds"?? Michael Lewis, the New Orleanian of "Liar's Poker" fame had a brilliant essay in Bloombergs' on September 24th about this and other facets of this crisis, viewed from a former insider's perspective. Written by NotSofastEddie
on 9/30/2008
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And that was a good recount of CNN analysis there Walker……… And its posting does deserve merit; however, this is not as good a thing as you think…. Yes, worldwide 750 billion can be absorbed, but worldwide this problem was exacerbated.. You have not paid attention to Credit Suisse, which I recommended several months ago… Enter the IMF….. This is not sustainable under current approaches and sadly enough, arms trades and proliferation is going to escalate as funds start to dry up in lesser developed countries…. An increase in interest rates on loans cannot be inadvertently borne by more highly developed countries…. (Good Gawd, I think I am starting to suffer from Alzheimer’s disease, and I am so young…. What a pity)…… Anyways, the current devaluation in valued assets is only the tip of the iceberg…. Raw materials, manufacture, marketing topics are going to become heated as markets become more and more closed.. Right now Russia is maneuvering a stupid ‘Anti-Monroe Doctrine’ ploy with Hugo Chavez…… But oil prices are dropping…. The 70’s look probable for costs per barrel considerations, perhaps by Novemeber, but then comes the first quarter of '09 and the first day of 2010 around the corner...... It is not going to be good…… Now societal concerns are going to have to be double evaluated, and judged for merit or dubiousness…. The problem with this is that societies, if you can call them that, in underdeveloped countries are going to suffer…….. Because there is no heightened paradigms experienced by those in power in those locals… So, food, water, shelter become scarcer, and deplorable conditions will increase…… And we here in the United States lacking in the reserves necessary to continue our humanitarian efforts on a reasonable or recognizable scale….. Sooner or later the valuation processes will catch up, and it is at that point in time that the arms sales will show their profit……. And and also the loss to the victims……. Written by
on 9/30/2008
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But I do appreciate your question Kajungal...... Not saying anything personal about you, but I am standing on the observation I quipped in another post... Most people on mention the deaths in Iraq so that they appear to be sensative and caring, and all politically correct for the readers.... You provided another tangent which was the honest one, most folks only really care about the money... But God Bless our Troops, and those that made an ultimate sacrafice of life, limb, or sanity...... And that isn't to appear politically correct, that is what the real horrors of war are...................... Written by
on 9/30/2008
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Actually not much at all…. It comes on down to approximately $2.85 per day per man woman and child legally residing in the United States…… Not even the cost of a pack of cigarettes….. What this country needs is a good 5 cent cigarette…… And not nearly anything to do with the $2,000+ that each man, woman, and child legally residing in the United States is going to have to come up with to bail out THIS current fiasco, and we haven’t even gotten around to addressing the next, and the next, and the next that is on the horizon……. And now T-duhhhhhhbbbbbb it would probably be proper for you to post one of your ad-libs, because now the effects on the lower income classes can be concerned…. And you would be correct in jumping in, just don’t throw in the disadvantaged spiel o.k.? The housing market? No, I wouldn’t look to see any substantial lowering in real estate costs, and even so, they will still require a 10% if not 25% cash down payment which still means 20 – 50K and even folks making 200K a year really don’t have a way to do this unless they pull a second mortage which I do not know why they would want to except that they would want to become rent mongers……… and shades of real estate flipping, or other retarded Ponzi type schemes that caused this problem in the first place!!!!!! Written by
on 9/30/2008
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Actually not much at all…. It comes on down to approximately $2.85 per day per man woman and child legally residing in the United States…… Not even the cost of a pack of cigarettes….. What this country needs is a good 5 cent cigarette…… And not nearly anything to do with the $2,000+ that each man, woman, and child legally residing in the United States is going to have to come up with to bail out THIS current fiasco, and we haven’t even gotten around to addressing the next, and the next, and the next that is on the horizon……. And now T-duhhhhhhbbbbbb it would probably be proper for you to post one of your ad-libs, because now the effects on the lower income classes can be concerned…. And you would be correct in jumping in, just don’t throw in the disadvantaged spiel o.k.? The housing market? No, I wouldn’t look to see any substantial lowering in real estate costs, and even so, they will still require a 10% if not 25% cash down payment which still means 20 – 50K and even folks making 200K a year really don’t have a way to do this unless they pull a second mortage which I do not know why they would want to except that they would want to become rent mongers……… and shades of real estate flipping, or other retarded Ponzi type schemes that caused this problem in the first place!!!!!! Written by
on 9/30/2008
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Dear Walker, Scalise is a lemming-- he did whatever the "guys next to him said to do."............. I believe our government leaders will come together on a very similar bill in just a few days (how many billions of bucks later?).............Anyway, Walker, how does THIRTY-BILLION DOLLARS A MONTH sound?.... Do ya think that the 30 Billion Bucks we spend each month on a needless war has anything to do with our present financial dilemna? Written by KjunLady
on 9/30/2008
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KjunLady,
I'm sorry, but handing over 700 billion to Wall Strret is NOT the SMART move!!!! Scalise did the right thing. How about a little history lesson to explain the current crisis.
Under Jimmy Carter and a Democratic House/Senate the Community Re-investment Act (CRA) was created. The CRA decreed that banks had "an affirmative obligation" to meet the credit needs of victims of discrimination in borrowing. To add a government stick to the process, the CRA decreed that federal banking regulators would consider how well banks were doing in meeting the goal of more multiculturalism in loaning when considering requests by banks to open new branches or to merge. A good "CRA rating" was earned by way of increasing loans in poor neighborhoods. Conversely, lenders with low ratings could be fined.
As Investor's Business Daily recently put it, succinctly and correctly: "Over the past 30 years, Democrats, along with a handful of Republicans, have demonized lenders as racist and passed regulation after regulation pressuring them to make more loans to unqualified borrowers in the name of diversity."
The march toward the eventual financial meltdown picked up speed during the Clinton administration via an increased lowering of loan standards in order to expand minority borrowing.
In 2000, Howard Husock reported in City Journal that the "Clinton Treasury Department's 1995 regulations made getting a satisfactory CRA rating much harder. There would be no more A's for effort. Only results -- specific loans, specific levels of service -- would count."
The "specific levels of service" referred to how well banks were responding to complaints, including complaints from advocacy groups that were in the business of complaining.
"By intervening -- even just threatening to intervene -- in the CRA review process, left-wing nonprofit groups have been able to gain control over eye-popping pools of bank capital, which they in turn parcel out to individual low-income mortgage seekers," reported Husock. "A radical group called ACORN Housing has a $760 million commitment from The Bank of New York."
There's big money, in short, in "nonprofit" activism -- and upward mobility. A guy carries a sign advocating "Change" in front of a bank and the government turns him into a salaried protester, credit analyst and dispenser of mortgage money.
The changes came as radical 'housing rights' groups led by ACORN lobbied for such loans," reports Investor's Business Daily, regarding the Clinton era. "ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama."
Now let's talk about "Mark to Market":
"Mark-to-Market" Accounting and the Origins of the Financial Crisis: Mark-to-market accounting (also known as "fair value" accounting) means that companies must value the assets on their balance sheets based on the latest market indicators of the price that those assets could be sold for immediately. Under such a rule, declining housing prices don't just reduce the value of defaulting mortgages. They reduce the value of all mortgages and all mortgage-related securities because the housing collateral protecting them is worth less.
Moreover, when a company in financial distress begins fire sales of its assets to raise capital to meet regulatory requirements, the market-bottom prices it sells out for become the new standard for the valuation of all similar securities held by other companies under mark-to-market. This has begun a downward death spiral for financial companies large and small.
The end result for the company is stock prices driven toward zero and bankruptcy or government takeover. The criminal liabilities imposed under Sarbanes-Oxley have driven accountants to stricter and stricter accounting evaluations and interpretations and have prevented leading executives from resisting them.
Because existing rules requiring mark-to-market accounting are causing such turmoil on Wall Street, mark-to-market accounting should be suspended immediately so as to relieve the stress on banks and corporations. In the interim, we can use the economic value approach based on a discounted cash flow analysis of anticipated-income streams, as we did for decades before the new mark-to-market began to take hold.
Bottom line - Congressman Barney Frank and Senator Chris Dodd have been "in-charge" of congressional oversight for the past two years. I find it incredible that they couldn't see this crisis coming. Then again, as liberals, maybe they did and this is all a part of a diabolical scheme to socialize (i.e., gov't takeover) the Free Market.
BTW - For all of you "Chicken Littles" out there
Don’t look now, but stocks are down a whopping 1 percent in Germany and are flat in Britain and France.
U.S. markets are poised to open higher. Update: Dow up more than 200 points in early trading.
Most Asian stock markets are holding up well too. The Shanghai Composite closed down just 0.2 percent; the Hang Seng closed up 0.8 percent; Bombay’s BSE 30 closed finished the day up 2.1 percent.
So much for a "Global" Crisis!
Written by Walker0416
on 9/30/2008
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And, Conservative Radio Host, Jeff Crouere, (and others like him) need to encourage their listeners to call their Congressman and encourage "Coming Together.".... Rush Limbaugh and his ditto-heads were successful in clogging-up success.. They flooded the switchboards of Republican newbie Congressmen, like Scalise, to oppose the bill...How much did that cost us (and the world)in just one day? (Geesh!) Written by KjunLady
on 9/30/2008
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And Stevo, when you say "Louisiana is prime to do better than most states", that is only as long as Uncle Sam has money in the coffers to dole out..... And then? Well, pretty much the same boat as any other state like Mississippi, or Alabama, or California, etc., etc., etc....... You think Piyush is a prudent leader? The only reason the Jindal administration "has been poised for basic infrastructure growth", is because of simple accounting shuffling.... The reserves are playing out, and next is selling the royalties much like annuties are sold on the open market.... Only Louisiana will leverage somewhere around 50 cents on the dollar... Yeah, keep looking at all those silver linings........ They are an illusion.... Time for some hard work there folks........... And some sound approaches...... Or should I say, STRONGCONCRETE types of fortitude........ Written by
on 9/30/2008
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Bully my good man! - Bully! And thank you 'simple questioner' for your rather astute observation presented...... You are indeed perhaps wiser than the average BEAR (bear, [bear market]) ha-ha-ha-ha!!!!!!! And enter the situation of a 2 - 3% surcharge on all stock and commodities transactions until the now trillion dollars instead of the 750 billion is paid back.... And the suck systems each state operates under.... Sales tax, property tax.... Contributions there folks instead of standing around with your hands out while wasting taxpayer dollars……. To the participants goes the rewards........... And to those that opt to stand on the sideline in hopes that everyone else will buy their hotdogs for them while they watch the game…… Well, nothing…….. Everyone knows that a table that is not anchored in STRONGCONCRETE or rests upon a strong pedestal requires at least 3, if not 4 legs to rest upon..... Or folks rice bowls will slide off and crack when the table is tipped as a result of impatience and greed..... Conserve or Contribute, but do your parts….. Written by
on 9/30/2008
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If an 800 point swing on Wall Street can destroy or create $1.4 trillion in wealth, then isn't it true that a 400 point swing can equal the $700 billion in taxpayer money that they claim is needed to save the free world? How many more segments of the economy will need how many more trillions from us? Once this bailout is done, the road map will be there for all of them. Step 1 - Get rich using unscrupulous and doomed practices. Step 2 - Declare your (self-made) disaster. Step 3 - Begin preaching that saving your own ass is necessary for the good of everyone. Step 4 - Decide how many trillion you want from taxpayers. Step 5 - Take the jet to Aruba for a long weekend, and buy all of your friends new Rolexes to celebrate. Written by simple questioner
on 9/30/2008
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Louisiana
