This Isn’t Just About Healthcare
This could get ugly folks. Joe Wilson, a US Congressman from South Carolina, shouted “You lie!” in the middle of Obama’s speech the other day. Anyone that thinks all this outrage is just about healthcare is sorely mistaken. Let’s do something different today. Here are four short videos that if you haven’t seen yet, you should. I believe these videos illustrate a movement may be underway in this country – one against more government control – a movement that could keep getting stronger with every piece of ‘change’ that’s introduced. Apparently, it’s strong enough to get a Congressman to do the unthinkable and interrupt a President’s speech. What’s next? Read more
Obama’s Housing Plan Faltering
Did you happen to see the Bloomberg article on June 29, 2009 titled, “Housing in Peril as Obama Fails to Get Finance Breakthrough”? In my opinion, it succinctly described the current state of the housing market which many consider to be the key to an economic recovery. While I’m not typically a “told you so” kind of guy, this time I have to say we told you so. Read more
How Do You Avoid the Next Madoff?
Well, so much for Bernie Madoff. If you’ve been under a rock, he was sentenced to 150 years in prison the other day and rightfully so. However, there’s something odd about that statement. Ever wonder how judicial systems come up with prison terms? I mean really, 150 years? Why not just life in prison without parole? But I digress.
Many people right now could be wondering if they are currently investing with the next Madoff and how can I find out? Or, they may be wondering how do I avoid the next Madoff? The good news is that you can find out and even avoid then next Madoff. Unfortunately, there probably will be another Madoff and nothing is foolproof. There are, however, some steps you can take as precautions. Read more
Is California Too Big to Fail?
This is going to get interesting folks. As mentioned in a recent guest blog post, California is in BIG trouble. Per the state controller’s office “we are less than 50 days away from a meltdown of State government” and that was weeks ago. Think about that for a moment. California represents the 7th or 8th largest economy in the world and they are on the precipice of bankruptcy, or to be politically correct: not being able to pay their bills; or insolvent; or “too big to fail” (my personal favorite, Ha!). Mr. President, I think your phone is ringing. I bet you thought GM, Chrysler and the banks were tough. Guess what: you ain’t seen nothing yet.
Think about this for a moment. GM’s 2008 fiscal year gross revenue was $14.8 billion and the government has given how many billions (I don’t give a specific number because I’m not sure anybody knows what it is for sure) to save it? California’s GDP for fiscal 2008 was in the TRILLIONS. Mr. President, please remember what you said on C-SPAN: “we are out of money now.” Read more
It’s Starting
6 months ago, I wrote that you can’t solve a debt problem by accumulating more debt which was the Bush, and now the Obama administration’s approach to solving the financial crisis. I believe taking this approach will not work – and nothing has changed my mind.
Tax revenues are falling while government spending is increasing creating a crisis situation in many states. This crisis could potentially cause traditionally safe investments such as muni-bonds to default, or at the very best, reduce their ratings. Read more
Retro is cool, right? Not with the economy
Old fashions become cool again. Throwback jerseys are all the rage in professional sports. What’s the deal with the old being new and cool? Maybe that’s what the Fed is thinking with its monetary policy because we are headed straight for a repeat of the late 70s.
Do you remember what it was like in the late 70s? I was too young to “really” know what it was like at the time, but I certainly know what history has to say. Price controls were introduced by President Nixon, which were thankfully rejected. Soaring inflation. Double digit mortgage interest rates that lasted until the late 80s. Does that sound cool to you? It could be worse this time around. Read more
Are you too wealthy for Social Security?
According to a Newsmax.com article dated May 13, 2009, the idea of “means testing” is being discussed in Congress. What exactly is “means testing” you might wonder? Well, it’s an idea that those of a certain level of retirement income or more (i.e., too wealthy, too successful) do not have a need for their Social Security benefits, so they would not be entitled to receive them. It’s not a new idea born from the burgeoning deficits of today. In fact, it’s been discussed for years and it’s appalling. Previously, it didn’t garner much attention or traction but today’s deficits and aging demographics could be just what is needed to push it over the top.
You might be thinking “it only impacts the wealthy people, so it won’t hurt me.” You better think again. Read more
The Sacrificing of the US Dollar
Makes me sick.
Earlier this year, I believe a conscious decision was made to sacrifice the US Dollar in an effort to rescue the troubled economy.
Despite assurances from Treasury Secretary Geithner (“Financial Times” May 21, 2009) that a strong US Dollar remained a priority, the US Dollar continues to devalue against many other world currencies. Geithner told the House of Representatives his “basic obligation is to make sure that we put in place policies that sustain confidence in this economy, in our currency, that we sustain a strong dollar, that we retain what is a great strength and asset to this country, which is the most deep and most liquid markets for Treasury securities in the world”.
Meanwhile the US Dollar continued to devalue. Read more
We are out of money……..
A very important and obscure interview of President Obama happened over Memorial Day weekend and I doubt you saw or even heard about it. It’s been over a week and I’ve barely seen any press coverage. I’m talking about an interview conducted on C-SPAN by Steve Scully.
Scully: “You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?”
Pres. Obama: “Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far.”