Archive for the ‘predictions’ Category

I’ll admit that I don’t know much about Sheila Blair (chair of the FDIC), but at least she is coming up with ideas that actually make economic sense! Paulson on the other hand has already spent 1/3 of the $700 billion dollars he charged on the National American Express, and believe me when I say that we aren’t going to see any benefit from that money and are likely not even going to get any of it back. Now, Paulson is talking about buying stock in banks, which is just the most ridiculous idea to ever come out of the building next to the White House. Granted, Paulson is going to be gone in January anyway, but his plans to spend the “bailout” funds like there’s no tomorrow really need to stop. W could certainly redeem himself a little by asking Paulson to resign or firing him if Paulson doesn’t resign.

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There are plenty of things to be passionate about. Firing people is usually not something that I am passionate about. However, when there is someone whose ideas are so detrimental to the stability of the American economy, we need to get rid of him. If you’ve been buried under a rock, Henry Paulson is the communist Treasury Secretary who was calling for the bank “bailout” months ago. Unfortunately, he got what he wanted. After having fumbled the ball on US economic policy so far, our Congress somehow believed him that we needed this.

Now, his team has come up with the most absurd idea in the history of idiotic economic ideas: purchase stock in banks to help their balance sheets. Where does he come up with such idiotic ideas!?! While buying up bad debt from failed loans would certainly create a mess, this communistic thinking is the most absurd idea I’ve ever heard! What will happen *when* (not if) the stock goes down? Who really reaps the reward of the US government going in a buying stock? The investors. The banks are not going to benefit at all because investors are going to watch their stocks go up and then jump ship because Paulson was stupid enough to buy their stock. The stock will come back down, and the US loses money.

For conspiracy theorists, this is just the beginning of the evil plan by the smoking gunman to turn America into a communist state. While I can’t agree with the over all conspiracy, the thoughts of Federal government ownership to the tune of $700 billion is VERY disturbing.

I have news for people who voted Yes on Proposition 8. The California Constitutional amendment is invalid. Here’s why:

in 1959, California ratified the 14th Amendment to the US Constitution. Article 1 states:

All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside. No State shall make or enforce any law which shall abridge the privileges (emphasis added) or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.

California’s Constitution does allow for amending our Constitution with a simple majority vote. However, it also requires that when two amendments conflict with each other that the amendment with the higher vote wins out over the amendment with the lower vote. Since Proposition 8 passed with only 52.4% it becomes invalid.

I highlighted privileges above because a lot of people seem to be talking about “rights”. In fact, the title of Proposition was listed as “Eliminates Right of Same-Sex Couples to Marry”. However, the 14th Amendment extends FAR beyond mere rights to all privileges. Whether marriage is a right or not is of no consequence. No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States. Proposition 8 is invalid.

There’s a lot of crap that Biden has been getting for his comment about terrorists testing America if Obama is elected. Was he referring to the Cuban Missile Crisis? Or was he referring to the attacks of September 11?

Let’s put things in perspective here, my friends (as John McCain would say). Bush, a politician with next to zero experience, gets elected and America is attacked. Were they planning the attacks before Bush was elected? Hell if I know. Would they have attacked if Gore was in office? Who knows.

Having a noob President who also happens to be a cowboy in office certainly would give the terrorists an additional incentive to attack us. It has been well documented that the terrorists are interested in bankrupting America. This is precisely the direction that Cowboy Bush and Congress have been taking us.

However, I’m willing to bet that a McCain presidency is far more likely to result in a terrorist attack on America than an Obama presidency. Why? Because John McCain has shown that he is willing to fight a “war on terror” by invading another country that had nothing to do with the terrorist attacks of September 11. McCain is willing to turn America into a communist country (ala voting for the communist bailout of failing banks in America) and send our soldiers into harms way with misguided and fabricated military intelligence.

Just think about it for a minute. Where was his 30 years of experience when he was sounding the war on Iraq trumpet? Where was all his wisdom when he cast his votes in Congress that put us into the situation we are in now? A lot of good that experience did for us over the last 8 years, right?

I’m having flashbacks to the Teapot Dome Scandal in the mid 1920s’ after I read this article on CNN about the Oil Whistleblower.

History certainly does have a way of repeating itself. Something tells me that there’s going to be a lot of uncovering of dirty laundry after Bush and Cheney are gone. Get the paper shredders ready Dick!

First, they really expected a Bush supported emergency bank bailout plan to just walk down the isles in the House. I’m sorry, but hasn’t the Bush administration been talking about the strength of the economy for the last several months? Years even? Given that they had their heads up their asses or were completely lying about the situation, why should be believe in any urgency about the bailout. Seeing as how they were completely wrong about the state of the economy for at least the last 18 months (the largest bank in the world – WAMU – doesn’t fail overnight folks), why are they suddenly right about the economy?

Then, this morning I read this article about a large slide in the manufacturing index. This should have been a no-brainer. If businesses can’t get money from their banks, they tap their other resource for capital: inventory. It’s a pretty simple business concept. Sell inventory and turn it into cash. Most businesses that sell products operate like this. Somehow, this is a foreign concept to the folks on Wall Street? Of course, in normal economic conditions businesses reinvest that revenue back into inventory. But if your bank is holding you by the gonads, you don’t buy more inventory. You keep the cash.

Good thing the fundamentals of our economy are strong.

John McCain, looking to gain support for his gas tax holiday, reached out to Hillary Clinton supporters in a stunning speech stimulating the lives of all the “bitter” voters of Pennsylvania. While most of the media focused on the bitter voter aspect of the McCain speech, I found it damning for the McCain campaign that his advisers believe his gas tax holiday is a winning argument. God help us if we have an administration that believes this idiotic economic policy will do anything more than severely damage the US economy.

Often cited as having a better grip on economic issues, Barrack Obama surprisingly proposed a $50 million subsidy for big oil on Monday. Where have you spent your tax rebate check? My guess is that you’ve spent it (will spend it) at the gas pump. Guess who is making the money on higher gas prices? It isn’t your local (independently owned and operated) gas station. Obama tears into McCain for offering up a gas tax holiday (yes, a stupid idea), but his proposal to expand the tax refunds is no different: a subsidy for big oil.

How about we get politicians offering up real economic solutions. Solutions that are going to create more jobs rather than get us to spend more money on gas and useless crap from Walmart. How about some financial incentives for anyone who wants to solar panel their house! How about some tax credits for small businesses and entrepreneurs who are the heart of the American economy! What about spending that $50 million on helping people start or grow their businesses! Give me some real fiscal stimulus, Obama, not some watered-down version of McCain’s gas tax holiday.

Kobe Bryant and Laker fans will say that it was inevitable from the beginning of the season. They just might be right. Looking back at the season and the players, the youthful Lakers might not be what one would expect to see in the NBA finals. Outside of Kobe and Fisher there really isn’t massive experience on the Lakers bench. Unless you consider Phil Jackson (one of the greatest coaches of the game). This is the first year since he got to Los Angeles that Jackson hasn’t been getting hyped, and perhaps that allowed him to relax a little an Zen up the Lakers.

The Lakers are back in the NBA Finals to face… likely the Boston Celtics in an old-school NBA Finals. It seems like everything is going 80s retro these days, so why not the NBA. While I certainly can do without the music of the 80s, I’m very interested in an 80s style NBA Finals. I’m sure there are going to be cries in Boston of “Beat LA” during game 7 (Yes, Detroit is likely taking this one back to Boston).

It’s going to be classic East Coast v West Coast. Biggie v Tupac. Uptight Bostonians v stoned Angelians. Clam Chowder v Avocado Salads. William Shatner v Jack Nicholson. Expect sales to go down at Boston Markets across Southern California.

Today gives me yet another day to gloat about the idiotic college professor I had years ago at Strayer University (yes, avoid this college. It is a waste of time and money). The CEO of Dow Chemical borrowed a page straight out of my economic philosophy and is proving that energy based inflation is a reality, not some idea that deserves a B on my term paper. Dow is going to raise their prices immediately by up to 20%

If you’re asking “Who the hell is Dow? Isn’t that a stock exchange?” Check the back of half the cleaning supplies you have in your house and ask just about every company in America where they receive a good portion of their supplies from! They don’t just make scrubbing bubbles America!

Dow is just the start too. Energy based inflation starts here. Energy prices increase, putting pressure on businesses to either cut profits or slow down. Traditional economist, aka most college professors, will tell you that energy prices will come back down and everyone will be happy. However, in the real world this doesn’t and didn’t happen over the last 10 years. The result is that every company in America (except big energy, and miraculously Walmart) is being squeezed to the brink of no ability to make a profit or even be productive at any level.

There is a solution. It isn’t cheap, but it wouldn’t cost any more than the failed tax rebate of 2008. This solution would provide a long-term solution to the energy crisis in America and heavily stimulate the US economy while building the infrastructure needed.

Where have all those “tax rebates” gone? Hats off to anyone who spends it on anything other than energy.