Custom Search

Tuesday, March 24, 2009

We are going to be Okay


For the average person it is understandable that you can’t sort out the facts from the hype when it comes to the economy. I believe we can all chalk that up to massive over speculation on both sides of the Main Stream Media shilling for their political perspective and audience. So what is a guy or gal to do when reading reports about the economy? My answer, nothing. Just live your life like you always have, clip the coupons to save a dollar or more on your grocery bill, research big buys like a new car like you have always done, and just live your life like you always have. Storm troopers are not going to drag you from your bed at night if you lock yourself into the MSM hype and fear engine.

If you are lucky enough to have a job in a stable company then go the extra step to help the company out by finding cost savings, new ideas, or just doing the job they are paying you to do. In the long run the economy will fix itself because of the American way of life. We as a people don’t like old appliances, old cars, old anything when you get right down to it. Our nation has a built in mentality that the best product on the market is what we want for our families and somebody is always coming out with the latest replacement for the 8-Track player. America is a nation of cutting edge technology on everything under the sun and other nations copy it cheaper and provide it at a better price for the average consumer. As sucky as that sounds it is the way of the world today, have you shopped at Wal-Mart lately?

Back in the 1980’s I worked for a company that was always experimenting with new product ideas. Vendors of the company participated in the experiments and out of that practice makes perfect trial and error experimental process came a product line that boomed for the company for almost a decade. Cheaper copies of the same product hit the market eventually but the company was already working on dozens of other new products by then. Ingenuity and willing to take a risk is what drives business and it isn’t always about the bottom line of today. Same goes for America, we have to reinvent ourselves every couple of decades to make sure we know that we are the land of the free and the home of the brave. If you look at all of the products made in China today, most likely they originated in the USA a decade or more ago! It’s what we as Americans do, and they duplicate and sell ten years afterward.

My two cents on the economy is that President Obama and his team are on the right track, Wall Street loved his recent news so much that the market jumped the highest percentage in over seventy plus years in one day. That my friends is the first step in building confidence in the American economic engine that actually runs the world today. President Obama is the voice we need to hear, it’s the voice business needs to hear, and it is the voice that the American people elected to hear.

Franklin Roosevelt faced a barrage of skeptics under his New Deal theory and the economy was in far worse shape than it is now by a margin of mega proportions. Opponents fought him over every single idea he raised but he stuck to his guns and managed to get the best of them passed. Not all ideas in Congress get a green light and you shouldn’t expect that from this President either. George Bush wanted to privatize Social Security, aren’t you glad that didn’t work out now?

Healthcare, jobs, and education is the agenda for President Obama and he has always said that throughout his campaign for President. The collapse of our economy is an added bonus having him in charge instead of a “Hand’s Off” right side of the aisle leader. All I have to say is that it is damn well time for the sun to shine and this video covers it…

Video Link




Go about your life like you always have, there is nothing to see at this accident other than some bankers and insurance executives asses being spanked for being arrogant and over zealous for mega profits. The next wave of the American innovation experiment is about to begin and its going to be one hell of a political ride to get it started.

Papamoka

Labels: , , , , , , , , , , , ,

AddThis Social Bookmark Button

Thursday, March 12, 2009

Is the Banking Crisis Over


Is it possible that the actions of not just only President Obama but those of former President Bush have stemmed the tide of the banking crisis? Scanning the news today it was refreshing to see that Citigroup doesn’t think it will need anymore cash infusion from the government and is looking forward to running in the black from this point forward. Over at Reuters they have this to say from CEO Richard Parsons of Citigroup..

By John Poirier and Diane Bartz
WASHINGTON (Reuters) - Citigroup Inc Chairman Richard Parsons said on Thursday that the bank does not need any more capital injections from the government and expressed confidence that Citi would remain in private hands.

Asked in an interview with Reuters whether Citigroup needed additional government capital injections, Parsons said: "No, I think actually, particularly with the latest conversion... Citi is actually one of the better capitalized banks in the world."
- Reuters

Then I look over at Bank of America and they are good to go too! They don’t need no stinking money either. Could this crisis be turning a corner where the big fish will now feed on all the little fish in the banking industry? Bloomberg is reporting that the bank has been profitable since the beginning of the year and has this report…

Bank of America Expects to Post Full-Year 2009 Profit
By Christopher Condon and Sree Vidya Bhaktavatsalam


March 12 (Bloomberg) -- Bank of America Corp., the biggest U.S. bank, expects to make money for the full year after posting a profit for January and February, Chief Executive Officer Kenneth Lewis said.

“We have been profitable for the first two months of the year,” Lewis told reporters after a speech to the Boston College Chief Executives’ Club in Boston today. “We expect to be profitable” in 2009. In his speech, Lewis said the bank may earn $50 billion this year, measured before taxes and provisions, and the company won’t need more federal aid.
- Bloomberg

Word to the wise to those of you with some free cash to invest, you might want to look at both of these companies as part of your near future investments. Citi closed at $1.67 today and that price has nowhere to go but up in my honest opinion. Bank of America closed at $5.85 per share today. Or could it be that the strong arm of the Obama administration is scaring the pants off of the big banks with their hands out? Or could it be that they (big banks) don't want the endless gravy trough at the top to end with government intervention? I'm leaning towards a little of both, yes they can turn things around on their own and no they don't want the Federal Reserve telling them how much they can skim off the top in bonuses and mega salaries. Was there truly a banking crisis at all or was it a free for all at the taxpayers expense? Things that make you go hmmm…

One has to look at the stock market as a gambling den, so much money goes in and the same amount of money comes out. It is a matter of perspective of who lost and who won at the end of the day. If $500 bucks went into the poker game, then $500 bucks came out. It's all in who won the game that day or for that matter that year. Belly up to the bar boys and girls, Citigroup and Bank of America are back in play.

Papamoka

Labels: , , , , , , , , , ,

AddThis Social Bookmark Button