Monday, September 29, 2008

Barrone as Scary Zombie From the Past

Michael Barrone curret piece  is as pitiable as House Speaker Pelosi's diatribe.

More than enough blame to be cast around . . .

Pelosi is a horse's ass

I'm So Pissed I Can Barely Speak

Deposits being yanked a financial system teetering, how do those gutless politicians live with themselves.  I realize Main Street doesn't get it - they won't until the anvil crushes them and their constituencies  like Wile E. Coyote.  The elected politicians are elected to lead not succumb like pitiful idiotic sheep.  They have failed us, failed us horribly.  The impact of this now becomes a sunk cost.  Please note that both Eric Cantor and Paul Ryan, the two most credible Republican House conservatives voted for the bill - - 'nuff said.

Sunday, September 28, 2008

Buffet Saves the Day

According to emerging news reports, the folks negotiating the credit crisis proposal actually spoke to Warren Buffet regarding his perception of the present circumstances.  He apparently spoke in a sparse, straightforward manner (no one who knows Buffet would expect anything different).  He said that the failure to act would likely lead to the most serious financial crisis in US history.  His comments, stark as they were, seemed to impact the atmospherics.


I generally enjoy what the increasingly corpulent, excessively self-satisfied former Speaker of the House, Newt Gingrich.  But, I must agree with the WSJ editorial page that attacked him in their piece in support of the credit rescue bill.  He pontificates from on high and offers no substantive alternative.

The fact is that our government and its people have lived well beyond their means.  Attempts by people to counter the happy talk of our political leaders and many in the financial media were drowned out by the vast majority of Americans placing their over their ears while loudly repeating, "I can't hear you!   I can't hear you!"

If you think that the American people and the federal government are facing hard times ahead, you ain't seen nothing.  State and local governments are in dire straits (exceot for Alaska, thanks to energy tax revenue).  I'll have to dedicate a post to the issue.

Saturday, September 27, 2008

The Politics of Change, Ugh!

Politico lead piece describes Republican attempts to save the foundering, flailing McCain campaign by remaking the credit rescue bill.  It might have been nice if they came up with this strategy on Monday or Tuesday.  Instead this eleventh hour attempt to hijack the process is yet more evidence of the idiocy that pervades Washington.  

The democrats are every bit as culpable.  Including potential benefits to a partisan organization like Acorn is reprehensible and politically stupid.  

Unfortunately, it appears increasingly evident that the stock markets will have to send a
message to Washington by way of a huge selloff.  Markets dictated that the administration offer some credible response to the seizing up of the credit markets.  Last Thursday, 9/18, they leaked that they had a legislative proposal that they indicated required immediate action.  The impending elections added to the urgency, creating expectations in the equity markets.  The reaction to date reflects (unfounded?) optimism that the political Neros in Washington would do the right thing.  

Mind you, Treasury's proposal was incredibly vague, perhaps a reflection of the haste with which it was prepared.  To the Administration's credit, they exhibited flexibility in crafting the proposal, but unbeknowst to anyone but their spouses the House republicans had a slightly different agenda.  Embarrassing the republican House leadership, the republican Senate leadership and most of all their President, the renegade House republicans scuttled the bill by saying that they weren't willing to support the bill.

Frankly, no one likes the bill and the electorate's strenuous opposition to the proposal gave the renegades cover.  My question is why they didn't just decide to extract their pound of flesh earlier in the week.  As I've stated previously, these clowns (virtually, the whole lot of them) lack a remedial understanding the underlying problem, although there are indications that some members have a clue as to the seriousness of present circumstances.  Combine the foregoing with the inability of Paulson to sell the proposal, the lame-duck President's ineffectual, feckless information campaign in support of the measure and the public's nearly categorical opposition to the bill and you have the inedible bowl of porridge that sits in front of us.

See links for wiki regarding Acorn and the Politico piece referenced in the first paragraph.

Thursday, September 25, 2008

Third Quarter IRA/401(k) Statements Will be Received Before the Election

and might be quite troubling if the credit market mess isn't addressed

What is McCain's Role in the House Republicans Decision to Repudiate the Administration's Bill????

What the @#%^& is going on?  Paulson apparently begged that Congress move forward with the plan as negotiated.  House republicans balked and offered a new proposal from the ether.  Reports are that McCain had been briefed on the House republicans intentions beforehand.  McCain has yet to state his support for the agreement, what gives?  Clearly, Bush has no sway.  McCain holds little if any influence over the Ryan/Pence faction.  Is the House faction willing to undermine the McCain campaign, Bush's "legacy" and thrust the US economy into a deep, deep morass.  At the moment it appears so.
The body politic wants to see Wall Street and its "masters of the universe" go down in flames.  Rest assured, the if the idiocy evidenced by the House republicans persists for even a short time longer,that will happen.  However, be assured that unintended consequences will indeed also occur.  The repercussions of this foolhardy politicking will strike directly and profoundly at the heart of the US economy.  What a great victory for these clowns.

Paulson Plan in Serious Trouble

The House republicans threw the country and the capital markets a nasty curve ball by making an entirely new proposal for handling the credit crisis.  This proffer, made at the eleventh hour, at the White House meeting designed to show a unified response to a very serious threat to the US economy, has thrown the entire matter into chaos.  At this juncture, the equity markets seem incredulous.  While the future markets are down in excess of 1 percent, if Washington is unable to present a coherent message as to what is to be done to address the present morass prior to the open of the stock markets, the equity markets will react in a violently negative manner.
Let me be clear, I do not see the Paulson plan as a panacea, it what's on the table and it's what Wall Street understands.  Markets hate uncertainty, and what is happening now is absolute uncertainty, not good.

$700 Billion Rescue Plan

Simply put, this legislation needs to happen.  Set aside the silly hyperbole of the left and the self-righteous indignation of the right, without a comprehensive plan to create a market for collateralized debt obligations (CDOs) and credit default swaps (CDSs) the US (and the world, for that matter) economy will seize up.  People who believe this won't impact them are delusional.

Let's be clear, this is more about saving the economy than it is about bailing out "greedy, rich guys" on Wall Street.   Unfortunately, those that understand the true implications of our current situation are unable to effectively communicate to Main Street.  Conversely, those who ostensibly could explain the reality of our current situation, our politicians, haven't a clue about what is going on.  Our politicians collective ignorance of even elementary economics can't been underestimated.  Furthermore, the pols can't rely on the political talking heads to feed them talking points because they are equally clueless.

 The result is playing itself out in mind-numbing Congressional hearings.  Forget what is going on in the shaky equity markets, the credit markets (that have been remarkably prescient) are pricing in a deep and dire economic future.  Can we be saved, probably, in spite of the professional political class.  Don't even get me started on the crazed statements by McCain who now seems to be running for the position of the country's crazy uncle.  There's a lot to like about the guy, but he appears increasingly unhinged, more like those crazy Vietnam vets I worked with during summer breaks than a credible world leader.