The GOP Does Not Get IT

Back in the day when George Bush Senior was concentrating on the world and ignored the folks at home there came a key phrase, “It’s the economy stupid”. And George Bush lost his bid for re-election to Bill Clinton for the White House.

While the GOP is full of piss and vinegar they still don’t get it. The economy is still in the tank and jobs are still scarce. People are still pissed and there is a reason why there are Tea Party groups and any other faction that leans right politically. The core reason for those factions is that the GOP ignored American’s while it stuffed its pockets under George W. Bush. Pick a subject and the GOP in power was stuffing big business pockets full of cash simply because they could. The war in Iraq, no bid contracts to KBR aka Dick Cheney’s former company that he was CEO for. Gasoline at $4.00 plus per gallon the last year W was president and there was no common sense reason for it other than stuffing the pockets of the president’s buddies. And there was never a conclusive investigation over it other than “Market” movement. Bullshit!

Now the GOP is shocked that they are having a hard time electing anyone in the special elections. The seat held by Jack Murtha in PA was a battlefield and still the GOP lost it by six or seven points. The exception to the rule is the seat once held by Teddy Kennedy that is now held by Scott Brown in Mass, but that could be explained easily when you look at what Martha Coakley, the Attorney General, brought to the table and that was nada. Then again, Massachusetts is the state that also votes in Republican Governors because the states people know that a one sided political government is never a good thing without some checks and balances. Why else would the bluest of the blues elect Ed King, Bill Weld, and Mitt Romney? Life long liberal here but voted for all three of the gentleman because I didn’t trust my state to be run by just one side.

If the GOP wants any chance of getting any seats then they have to face the fact that IT IS THE ECONOMY STUPID. When anyone wants to earn votes then tell the people what YOU will do to get jobs for your district. When people see that your GOP Chairman is spending money frivolously like he is a Lord in days of old because the trough will never run dry with donations then the election results are what they are. You would have to be an idiot to not know that the GOP is funded by mega corporations and the top income of America. Which is why I personally do not trust the GOP to offer me any information on local candidates for federal offices.

When you assume that everyone that is a Democrat will never vote Republican then the results are the same when you smack an intelligent person that is politically active regardless of their political affiliation in the face. In the end it comes down to the economy and the Republican leadership under Bush had a field day screwing it all up and Tea Party or whatever faction the GOP has now I want no part of it if the message is in ten parts because ten different groups now define the GOP and I’m thinking that is the basis of the GOP problem. Too many damn cooks in the kitchen.

Till then, we Democrats will clean up the mess that W and his crew left behind. We fixed the bank mess because the GOP striped regulation out of the industry, we are trying to fix Wall Street, we fixed Detroit and the auto makers because they are the largest contributor to the economy bar non, (GM just paid back its loan in full), we fixed healthcare, we fixed the massive loss of jobs under Bush, and we have a ton of other issues to clean up that 409 or Pinesol won’t have any effect on. And that is what matters at the polls when people vote.

And that is what Democrat’s do. So bite me. (Turrets)

Papamoka

Derivative Bank Reform

The financial institutions of this country are in a shambles due to poor choices by the nations banking institutions. If you look at small town banks that invest in the local community then you don’t see a problem. When you look at nationwide banks then you see a problem simply because they forgot the original mission of the bank. Sitting on a large pile of cash, yours and mine, they figured it was okay to gamble with it on Wall Street using one tool called derivatives.

What is a derivative you might ask yourself? It is for all intents and purposes a lottery ticket, a throw at the craps table, or a bet. By definition according to Wikipidia…

“A derivative is a financial instrument (or more simply, an agreement between two people/two parties) that has a value determined by the future price of something else. Derivatives can be thought of as bets on the price of something. Suppose you bet with your friend on the price of a bushel of corn. If the price in one year is less than $3 your friend pays you $1. If the price is more than $3 you pay your friend $1. Thus, the underlying in the agreement is the price of corn and the value of the agreement to you depends on that underlying.”

Republican opposition to such reform is outlandish in the face of so many banks that needed the Treasury to bail them out of the financial mess they were in. Banks became lazy and greedy for ever growing easier profits from Wall Street rather than focusing on the business model they started with. Greed lead to more greed and greater risk to not only the bank but individual account holders and that was the downfall of many of the institutions that Republican leaders wanted to not bail out to begin with? Which way do the Republican’s want the pendulum to swing? Our nation is at a catch 22 with some of the biggest banks and financial institutions; if they fail, they will take the nation down with them. We bailed them out when they went to Vegas and now it is time to tell those same banks that they have a gambling problem. It is called and intervention to prevent future bail outs!

Is common sense dead over on the right side of the aisle? If banking institutions are going to belly up to the bar for bailout money because greed superseded simple banking business rule of thumb, then they need big brother telling them that playing the lottery with other peoples money is not going to happen. Quarterly profits should not override common sense when it comes to banking institutions.

Is your bank playing with derivatives? If so, are you sure the check for your electric bill is going to be paid? That is the common sense behind bank reform. Protecting you and the money you deposit into the bank.

Papamoka

Soup Kitchen for Wall Street Talent

Reports are coming in that the brain trust of Wall Street is exiting stage right for better turf. I’m of the opinion to let them all walk. Somebody sold the crap that ended up being just crap and somebody made it sound like gold. Ergo they sold it even though they fully well knew it was junk. There was a sales pitch and people bought it and now lost more than their retirement money.

Wall Street and the description of what is talent of banking is an oxymoron these days. The same people that crippled the world economy are not people you want to keep in your business. Make no doubt about it, the kids that made a ton of money on Wall Street are going to follow the flow of new money because that is what they do. It would be stupid if they did not! If not for their own survival but for the survival of the companies they once represented and sold all kinds of scams to America and world investors that are now at near collapse if not for our taxpayer infusion of cash.

There will not be one company on Wall Street that will suffer the loss of people that sold and built a company on nothing. Millions or Billions of $Dollar investment companies do not base their livelihood on the existence on depending on one or two high performers, not even ten or twenty, not even fifty or one hundred people. This is not reality and the New York Times should be ashamed of even printing this piece…

Crisis Altering Wall Street as Big Banks Lose Top Talent
By GRAHAM BOWLEY and LOUISE STORY
Published: April 11, 2009

The turning point for Stephan Jung came in February, around the time bonus checks were slashed. A veteran of UBS, one of many banks tarnished by the financial crisis, Mr. Jung realized that the old Wall Street would not be bouncing back any time soon. It was time to head for the new.

“After 10 years, I did not see a future for myself,” said Stephan Jung, who quit his job at UBS to work at Aladdin Capital.

“After 10 years, I did not see a future for myself,” said Mr. Jung, 42, who quit to parlay his sales expertise into a career at Aladdin Capital, a small but rising investment firm run by others who had also left some of the most venerable names in finance.

There is an air of exodus on Wall Street — and not just among those being fired. As Washington cracks down on compensation and tightens regulation of banks, a brain drain is occurring at some of the biggest ones. They are some of the same banks blamed for setting off the worst downturn since the Depression. - New York Times

I need to be clear in this post, I have no problem with someone making a living, I just have a problem with someone thinking that my tax dollars bailing out their company is the reason they needed to find a new job. Especially, when the bailout money comes with some responsibility on the behalf of the banking and financial industry. Exit stage right for those that can not deal with responsibility.

I’m scaring myself for sounding like a Republican! Damn! Then again, maybe I’m just a Dad that knows when his child has gone to far? That has no political definition and this topic just might fit into that avenue of thought. Then again, how is your 401K doing or your kids college fund investments?

Wall Street will be fine once the dead wood that thought they could sell ice to an Eskimo, no offense to Eskimos, are long gone. Stick to the business plan and take care of your investors over your own self interest and the speculators and skammers must go. Please tell me that I am wrong!

Unbelievable that the New York Times even posted a sympathetic piece to the scams and people crying foul on Wall Street. How many bonus checks did this guy cash before he felt wronged? I'm pretty sure he wasn't crying when the checks were beyond belief for simple folks like you and I to find believable.

How many bonus checks have you cashed? You don’t get bonus checks unless you grossly profited the company beyond belief. And these bonus checks are only a fractional margin of what the company actually made so that is something to really think about. Why is it thought that everyone on Wall Street deserves a bonus and yet the scammers on Wall Street perpertrated the disaster that is our financial industry today?

Point made!

Papamoka

USS Enterprise

This is a time warp piece back to the days of old back in World War II. I happen to love the History Channel and today they had a non stop running of Battle 360 and it covered the battles that the carrier U.S.S. Enterprise encountered in the Pacific against the Japanese during WWII. If there was ever a symbol more worthy of the American people it was this ship against the original Axis.

Those guys went through hell more than once. If you are reading this and you are a veteran of the Enterprise then God bless your heart my friend. Holy crap! From battle after battle the Grey Ghost just wouldn’t give up and at one point she was the only surviving carrier the US Navy had during the Pacific Campaign of WWII. If there is anything that comes close to defining the road trip to hell and back, then these guys can explain it all with graphic personal first hand details.

The Enterprise encountered the best the Japanese had to give and beat them back time and time again. That is a tribute to the American spirit of the time and a testimony that many should hear. These men refused to give up and they gave it their all to defend what was right and wrong in the world. Even against overwhelming force they stood and fought and persevered. It was an amazing time and in it we can all take a serious lesson in our lives today. Regardless of all the crap thrown at you at any point in your life, somebody faced a much more dire set of circumstances than we will ever think possible, and they survived to tell the world about it.

Times are tough but times are changing for the better. Things are starting to turn around in the banking industry, stocks and confidence in them shows that. Housing starts are starting to turn the corner and the refinancing of existing homes is turning a page for the better.

Now is the time for people to stop listening to the doom and gloom media and think that it is actually possible that America can survive and get past the current economic crisis. While everyone on the news is spouting more gloom and doom you don’t hear crap about the success stories during this difficult time. Something like General Motors saying that they believe that they will be okay after bankruptcy court. Or the fact that many people able to purchase an existing home from the distressed real-estate market will be launching into home repairs, renovations, upgrades, and out right rebuilds of the existing homes all across America. Then of course it is a must to mention all the folks that still have a job, still pay their bills and pay their mortgages on time as well.

All is not lost, the ship that is the American economy is still able to tread water and make headway. We just can’t barrel ahead at 25 knots and we all need to accept the fact that we have to fix the ship and know that our battle in this economic crisis only acceptable outcome is victory. Just like in WWII, we can fix this and make it seaworthy once more to make her ready for battle on the frontline again. But we can do better. We can make her torpedo proof, make her capable of defending herself, and we can make her survive the long fight ahead of us all. All that we have to do is give her a crew worthy of the sacrifice.

Thank you Enterprise and all that served on her then and now for your courage and your service. Your history and your ship earned a respect unequaled by many and wothy of many more tributes. I just hope that the America of today can live up to your courage in the face of total aniliation and see that survival is possible and you can come back to fight another day.

Papamoka

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

Trust, But Scared!

Good Morning Papamoka Readers! I must admit that after reviewing the Obama Administration/US Treasury's new plan to buy up toxic assets clogging the financial system, I've decided to join with Paul Krugman and call the plan ill conceived and misguided.

I hope it works, but Krugman sounds wise when he questions President Obama's - the plan's - trust in the banks and the bankers. That could lead to billions more being wasted on Wall Street scam artists, and we cannot now afford the risk.

The "Public-Private Investment Program for Legacy Assets" will be funded with $75 to $100 billion dollars from the government, which officials say could lead to private investors generating "$500 billion dollars in [immediate] purchasing power." They also say the plan could expand to one trillion dollars of government investment if necessary. That sounds expensive and risky to me. How about you?

However, God forbid, I don't wish to say NO for the sake of it, like most Republicans these days. How about a friendly YELP! to signal serious worry and slight panic. There's no way around it, I - probably like most Americans - am worried about any plan that involves the banks right now.

Wow, I can't believe I'm questioning President Obama so soon after writing a piece just a few days ago suggesting how we should all support him during these dark days. I just hope you know what you're doing Mr. President, because it's too complicated for most of us.

The hitch in the giddy-up as a friend of mine likes to say (I call him Rumsfeld-like when he says it) is that we are being asked to TRUST WALL STREET again! It sounds insane! How many times do we have to risk getting burned by these greedy, low-life scumbags. I guess President Obama knows what he's doing, but the rest of us don't seem to have a clue.

Paul Krugman rightly points out how sick the banks are, and how they show no signs of improving their lending skills anytime soon. Without some kind of government institution forcing them to act, it seems unlikely that anything will change - at least to help average Americans. I guess Secretary Geithner knows something we don't know, but I doubt it.

Krugman's opinion in the New York Times gives me the feeling he sees President Obama's optimism about the market as a liability. I kind of do too. I guess we could be wrong, but he seems to trust the Wall Street brain trust too much. For God's sake, they got us into this mess! The whole thing is quite unnerving.

I'm sorry Mr. President, I support you and trust you, but this one scares me. I think you would be better off taking a more radical approach, perhaps one that sidesteps, or at least controls, Wall Street more. I just don't see the motive for the banks. With all due respect Mr. President, the plan doesn't sound like it goes far enough in terms of financial control and [middle-class targeted] impact, sir.

Krugman says it best. "The Geithner scheme would offer a one-way bet: if asset values go up, the investors profit, but if they go down, the investors can walk away from their debt. So this isn’t really about letting markets work. It’s just an indirect, disguised way to subsidize purchases of bad assets." That makes me VERY NERVOUS!

I trust the President, but I also want to go on record that I don't trust Wall Street and the American banker. Their reputation is ruined. They have proven themselves crooks and cowards, and I have no patience for any of them. I will support you Mr. President, but I think you may be risking a lot on this one.

Michael Boh

Papamoka's Left Coast Contritubor

from Our Rants & Raves Blog

Fannie and Freddie Paying Bonuses Too

Everyone pull your pants pockets inside out to show Fannie Mae and Freddie Mac that all we have left is pocket lint. Just when the bon fires over AIG are starting to roar, the good folks over at Fannie and Freddie are passing out “Retention” bonuses. Yahoo News and the AP have an interesting piece on it…

This makes no sense to me but you know how them pesky bankers are, they charge you a hefty overdraft fee when you already didn’t have enough money to have the check clear in the first place.

The good folks in the government need to clarify what the term “Retention Bonus” really means. Yesterday on the news they had one congressman drilling AIG CEO Liddy on this practice and he asked one very pertinent question that left Liddy sputtering like Porky Pig. Paraphrasing - “You mean to tell me that with all the layoffs on Wall Street, you can not find anyone qualified to do the same jobs as these people?” Good point Congressman, very good point. As for having to pay “Retention Bonuses” to the very people responsible for the business collapse is frankly idiotic and unethical. I’m pretty sure that anyone is replaceable in any job in America. President Obama or Timmy Geithner could walk down to Wall Street today and put up a help wanted sign for AIG, Fannie, and Freddie and I’m pretty sure a long line of applicants would begin to build. Even without the promise of bonuses!

A few years back I worked for a privately owned manufacturing company that for almost thirty years in a row paid a profit sharing bonus of fifteen percent of your annual gross pay. As long as the company was profitable, employees worked hard, watched out for waste and cost savings then the payments would continue. Long story short, the owner eventually retired and sold the company to a conglomerate where the stock price and quarterly profit were the live by standard. The new owners ran the company on stocks and leveraged the company down the drain. Profit sharing disappeared for the most part with all of the additional executive salaries that were piled on top of the companies bottom line. Ten years after they bought it, the doors to an 800,000 square foot plant were closed and what was once lifetime jobs for some four hundred people were gone.

My point to my little story is this, it wasn’t the people running the machines in the plant that caused its failure, it wasn’t the people in the offices answering the phones or buying the raw materials that caused the failure, it wasn’t even the plant manager or even the general managers fault that the plant failed. It was pure greed from the executives and junior executives that didn’t even have an office at the company that brought about its demise. They had no sense of pride or ownership in the company because all the company was to them was a number on the quarterly profit statement.

Papamoka

Obama Slams Bailout Bankers

Finally, common sense has arrived in Washington D.C. and its just in a nick of time. While the rest of the nation is trudging through the economic crisis and hoping that their job and paycheck will not be pink slipped, Wall Street executives that accepted billions in bailout money have been passing out record bonuses. President Obama is putting the breaks on that practice and it makes perfect sense to do so. You don’t beg someone for gas money and continue to drive a car getting four miles to the gallon.

Over at the Worcester Telegram they have this to say about it from the Associated Press…

Thursday, February 5, 2009
Obama caps pay of bailed-out execs
Company limits won’t apply retroactively
By Jim Kuhnhenn THE ASSOCIATED PRESS

WASHINGTON — President Barack Obama yesterday imposed a $500,000 cap on senior executive pay for the most distressed financial institutions receiving taxpayer bailout money and promised new steps to end a system of “executives being rewarded for failure.”

Obama announced the unusual government intervention into corporate America at the White House, with Treasury Secretary Timothy Geithner at his side. The president said the executive-pay limits are a first step, to be followed by the unveiling next week of a sweeping new framework for spending what remains of the $700 billion financial industry bailout that Congress created last year.

The pay limit comes amid a national outcry over huge bonuses to executives who head companies that seek taxpayer dollars to remain afloat. The demand for limits was reinforced by revelations that Wall Street firms paid more than $18 billion in bonuses in 2008 amid the economic downturn and the massive infusion of taxpayer dollars. - Worcester Telegram

I believe it was the President of Ford Motor Company that stated he would accept no pay till his company is out of these troubled times. Have you seen even one of these Wall Street fat cat executives make that same pledge? Since they are reluctant to belly up to that particular bar, President Obama is doing the right thing by insisting on reduced pay for those banks willing to drink from the U.S. Treasury in the form of bailouts.

Nothing pisses off the regular folks more than seeing a company that just took several billion in taxpayers money to stay afloat and then see that the same company went on or is planning on an expensive junket. Same rule applies when you have a failed institution like Merrill Lynch, and the CEO demands a $10 million dollar bonus for his actions in the collapse of the company.

Kudo’s by the way to Wells Fargo for canceling its pay for performance junket to Las Vegas and making its first quarterly dividend payment ($371.5 million) on the money it borrowed from the Treasury.

Papamoka

Media Frenzy on the Economy

There is a media frenzy over the financial crisis that America is facing and it's almost tantamount to Chicken Little screaming that the sky is falling but people are actually listening to the main stream media. You can not turn on a news magazine talk show and not here opinions from the host that are just that… OPINION! These people that sit in the chairs that stare into a camera or talk into a microphone and just babble on based on what they think are by no means financial experts. And yet, America is listening and the belts of the folks still with good jobs at great wages are listening as if these news reporters or “entertainment news anchors” are their Sunday morning preacher declaring the Rapture just after this paid advertisement. And those belts all across America are tightening by people tuning in day after day on the financial crisis news. It becomes a self induced prophecy of our economy. All of the networks are bashing people over the current economic crisis and not a one is innocent…

Video Link



For the record I don’t believe political polls but I believe in people that will speak honestly when it comes to their feeling about the current economic situation here in the states. People talk money and vote money when you come right down to it. In elections, they look at the money proposed on campaign promises as somebody else that is spending the money that really is not their money, but in the general economy polls, it is their money and their jobs. Wallets and personal checking accounts come into play.

Over at Breitbart.Com they have this to say about the media frenzy and its influence on the overall economy…

Poll: 77% of Americans Blame Media for Making Economic Crisis Worse

Jan 1 11:09 AM US/Eastern

- New Poll Conducted by Opinion Research Corporation -
NEW YORK, Jan. 1 /PRNewswire/ -- Seventy-seven percent of Americans believe that the U.S. media is making the economic situation worse by projecting fear into people's minds.

The majority of those surveyed feel that the financial press, by focusing on and embellishing negative news, is damaging consumer confidence and damping investment, making a difficult situation much worse. The poll was conducted via telephone, December 4 - 7.

The US survey of 1000 adults was conducted by Opinion Research Corporation and is statistically representative of the total U.S. population. The survey question: "Do you think the financial press is making the economic crisis worse by projecting fear into people's minds?" While the overall response indicated that 77% of Americans answered YES, here are highlights of note: Household Incomes: $25k - $35k -- 79% answered YES $35k - $50k -- 88% answered YES $50k - $75k -- 76% answered YES $75k - more -- 78% answered YES Demographics: 85% of young adults (18-24 yrs old) answered YES 77% of males and females alike answered YES 65% of blacks answered YES. - Breitbart.com

I stopped watching Fox News after they defended and justified the price of gasoline at the pump hitting almost five bucks a gallon so I can’t say what Fox News and their talking heads are doing on this subject but I can say that I do watch MSNBC in the morning and at night. Morning Joe is a joke with non expert experts that claim to know the ins and outs of the economy and declare their words to be gospel before the real experts come on and give their opinions. I’ve literally watched as Mike Barnicle, a frequent contributor espoused on what is wrong with Detroit and the automakers and he has no clue what it takes to actually build a U.S. made car! He probably drives a friging Toyota! The same man was there spouting off on the problems of Wall Street but he wasn’t demanding as much from those criminals as he was of the working man or woman on the production lines at GM, Ford, or Chrysler?

My point is, just because you are a reporter does not make you an expert on every financial issue. But they sure as hell can scare the hell out of many people with their self righteous pompous attitude that is fed into our living rooms. Mind you, I’m not just talking about MSNBC either and their talking heads. All of the networks have the same hype built news magazines and I don’t mean to single out Mike Barnicle or MSNBC.

If I were contacted for this poll I would have more than positively stated that the media is starting a stampede against the economy simply because fear sells better than hope on television or the radio. Fluffy kitten stories are not news people want to hear. Drama, anger, fear, and corruption is what draws viewers and listeners.

There is a real danger in the media today, that danger is when reporters and hosts of a television or radio program for entertainment purposes are taken as fact based voices for the majority of the populous in America. These people are selling just air time and the facts may be further from the actual truth.

Whom would you trust more? Zbigniew Brzezinski a former Secretary of State and real life expert on foreign affairs or Joe Scarborough TV News show host? How about Rep. Barney Frank who has worked on real Banking Legislation change for decades or Bill O’Reilly, an extremely volatile and contraversial entertainment news personality? In each case the news entertainer maligned or tried their best to discredit the expert because they are the shows host. That is Yellow Journalism on television at its best. That sells better airtime than the actual truth that is kind of boring and ho hum news.

Thank you Memeorandum for the news tip...

Papamoka

$700 Billion plus $10 Million Bonus

Merrill Lynch Ceo John Thain has guts. He is demanding a $10 Million dollar bonus for all his hard work in busting the brokerage house up. Does that take a pair or what? Taxpayers just handed the banking industry $700 billion in bailout cash and this guy has the audacity to demand a hefty fat bonus. Sometimes you just can’t make this stuff up and MSNBC has this to say on it…

Merrill CEO Thain seeking $10 million bonus
Report: Ailing company’s compensation committee is resisting request

updated 12:20 p.m. ET, Mon., Dec. 8, 2008

NEW YORK - Merrill Lynch & Co Chief Executive John Thain has suggested to directors that he get a 2008 bonus of as much as $10 million, but the battered company’s compensation committee is resisting his request, the Wall Street Journal said, citing people familiar with the situation.

The compensation committee has not reached a decision, but is leaning toward denying Thain and other senior executives bonuses for this year, the people told the paper.

Wait, you are going to die laughing when you hear the reason he deserves this $10 Million Dollar BONUS…

Thain has said he deserves a bonus because he helped avert what could have been a much larger crisis at the firm, people familiar with his thinking told the WSJ. - MSNBC

I have to really think this through because it isn’t making any sense to me. He only burned down half of Merrill Lynch and thus he deserves the $10 Million Bucks? That leads me to wonder if the guy running the bulldozer over Merrill Lynch should get half his pay because he is only demolishing half of the institution?

File this one under dumb ass greed.

Papamoka

*****Dr. Alex Goodall has linked to this post! Thank you Alex!!!

White Collar Job’s Only Bailout

Yesterday the U.S. Government bailed out another white collar giant in the banking industry. Citi Bank, the largest of banks in the nation received a blank check from Washington without any questions asked. This most recent of bailouts is all okay with the higher than thou Congress simply because the people cashing the blank check all wear white collars. White collar jobs are good, blue collar jobs bad.

The Steel Workers President put it best, it’s okay to bailout someone that takes a shower before work but if you take one after working all day you get thrown out.

Rachel Maddow has this interesting view on this very same subject…

Video Link



I think I might have just found the answer to the automotive industry bailout problem. Don’t tell anyone in Washington but GM, Ford, and Chrysler should change their mailing address to Wall Street in New York city. Better yet, they should all start offering brokerage accounts and free toasters with every car purchase. Even better and this would be a slam dunk, change the corporate names to GM Bank, Ford Bank and Chrysler Bank. Then they could get the same blank check as Citi Bank!

Blue collar union jobs bad, white collar big bank jobs good? Makes sense so far in the scheme of things that Washington and our pontificating Congress uses for an excuse not to bailout the big three automakers. While they claim that the big three have put themselves in the position they are all in, how did Wall Street and all the banks robbing the treasury blind get where they are?

Papamoka

Financial Market Time Bomb

Latest reports from Hank Paulson over at the U.S. Treasury is that the U.S. Government is going to financially prop up banks but there is a catch. They want stock in return for the favor. I suppose that is better than handing the banks a check and getting a toaster in return for it. Doing the math the deal works out to 15,555,555 toasters at $45 a piece. I don’t think Uncle Sam could ever sell that many toasters on Ebay without greatly affecting the world wide toaster markets so I‘m good with that deal.

For all of you folks following the markets and politics, Rachel Maddow has this interesting video on it…

Video Link



Is it just me or does it not make sense to anyone else for the McCain campaign manager Rick Davis to make a statement like he did in the above video?

“There’s very little a candidate for President, and frankly, after watching today, very little even the President can say about what’s happening in the stock markets other than to hope that they correct themselves.” - Rick Davis

Is it possible that Rich Davis is a “Closet” Obamaican? Then when asked why John McCain or Sarah Palin are not talking about the markets he had this to say in the above referenced video…

“I don’t know if you really want to turn a campaign into a CNBC News show on the stock market. I mean it doesn’t mean that we don’t care and aren’t trying to do something about it. It’s just I’m not exactly sure what you would say everyday.” - Rick Davis

If for no other reason, both candidates need to be talking about this issue every single day for a reason. To instill calm in the markets should either one of them become President. Well it turns out that Obama is talking about it in a logical way that will support new jobs in the small business markets. Just like after 9/11, making credit available to the thousands of small businesses that needed to either rebuild, restructure, or start all over again. It also turns out that John McCain is talking about it but his plan leads to panic in the markets. McCain is proposing, take a deep breath, suspending the “Regulations” (I never saw that one coming…NOT!) to allow people to draw out their 401K and IRA’s without penalties?

One plan builds up small businesses, the other puts a rush by millions all across America to dump their stocks, bonds, and every other investment vehicle for the old Mattress Savings Bank.

Just something to think about over the weekend. John McCain himself has said in the past that he knows nothing about economics and his latest plan would in fact put a full run on banks, company 401K’s, and investments in any form of retirement fund. Common sense dictates what would happen if the penalties for early withdrawal were suspended.

Papamoka

Oracle of Omaha on the Bailout

Remember when the world used to look to Alan Greenspan whenever the economy in this country was on shaky ground? Then Greenspan would go before the Congress or make a statement from his office and his wise words calmed the markets just because he was Alan Greenspan?

Nowadays, the voice to look to for stabilization is none other than Warren Buffet aka the Oracle of Omaha and Berkshire Hathaway fame.

Here is what the Oracle of Omaha has to say on the bailout over at CNBC and MSNBC…

Video Link



Hang tight, Warren Buffet has a little bit more experience than Greenspan ever thought possible when it comes to the financial markets and the economy.

Papamoka

Bailout Plan Failure

The defeat of the bailout bill today in Congress was pretty much expected by yours truly. You can not dump $700 Billion on the backs of the American people and expect both parties to come to any consensus on it on the first round. Nancy Pelosi threw this bill to the floor without knowing if she had enough votes to pass it and that is shear incompetence. She trusted Republican leadershipt to get the votes needed on his side of the aisle and then she lambasted the bipartisanship effort by blaming Republican’s at the last minute in a floor speech before the vote?

Politics is a funny business and I’m thinking that the Democrats did not like the merits of the bill and this was not going to be a Republican slam dunk and it was possibly scuttled for political reasons. Pelosi delivered exactly 140 votes from Democrats to this bill which is what she promised the Republican leadership in the Congress. Republicans bailed on the bill once the vote started.

One of the reasons that both parties are not voting for this bill is the lack of judicial review and an omnipotence given to the Treasury Secretary. Our nation can not hand out $700 Billion for discretionary spending without knowing where the money is really going. Our government leaders should not back any blank check written out to Wall Street without being able to legally prosecute wrong doing if thing does go south!

Politically, this looks really bad for the Republican Party and John McCain who claimed he was “Suspending his campaign” to fix this issue. Then he prematurely injected into the media that the bill passed in a statement early today before the vote happened. You can’t fight the media on that point or for that matter John McCain himself. Politics is what it is and Republicans all over the media are bashing McCain and President Bush and their leadership faster than Democrats can. Representative Darrell Issa R-CA, on Chris Matthews Hardball slammed McCain and President Bush over and over again. Congressman Issa thinks there are better ways to do this and there probably is. The question has to be asked, what, how, and how soon?

Video Link



This situation will be fixed by the Congress, it just needs to be worded differently and more palatable to the members of Congress that have to get re-elected in five weeks. That is the politics of this situation in the nutshell. Holding your seat in the Congress is far more important than bailing out Wall Street and the American economy. A philosophy that more Republicans backed on this vote today than Democrats.

Anyone want to buy a used apple cart that my grandmother owned? It was only used once during the Great Depression. New tires, spinner hubcaps, new apples, updated with a GPS system that tells you how screwed you really are and where you are.

Papamoka

The Last Bush Rape of America

Make no doubt about it, George Bush and the policies he has followed have set the American economy up to be raped. He put a tube top on Wall Street, added some stiletto heals to the regulations and set America up to be raped! President Bush was not alone in this set up, he had help from the king of deregulation in the Senate from John McCain. McCain fought hard to deregulate the banking industry and he won. And because he won, $700 Billion dollars is about to head to Wall Street to save all the CEO’s and top executives with golden parachutes as they pack up and leave the mess on your doorstep. The rape is over, the baby is here now and orphaned by the people that created it and left for you to raise. The rape still happened!

Over at Brave New Films they have this speech from Obama on the blank check bailout…

Video Link



American’s need to wake up and face a wrong for what it is. If your child is abused by a stranger do you look the other way because the stranger was from your political party? Start looking at America as your child and you would be surprised how fast people start caring about the blatant abuse in our government. John McCain helped to create this beast and now that beast has plopped a huge bill on your door for more money out of your pockets.

America used to have a huge Conservative movement but they are silent during this crisis! Why? The truth is that the people that were supposed to be their champions just sold them all out. While the President and McCain were playing with our nations banking industry, the executives of those freed institutions ran wild and free till the money ran out. Now it is going to cost every man, woman and child in America $2300 bucks for the poor judgment that Senator McCain and President Bush showed over the past eight years. Having five children in my family, the wife and I own $16,100 dollars of the Bush/McCain error in judgment.

What Wall Street firm should I make the check out too. According to the terms of the Paulson bailout I should just sign the check and mail it to the U.S. Treasury. They’ll fill in the amount and the rest of the details later. By the way, the plan Paulson has proposed has a little feature that makes him, his entire department omnipotent and free from any oversight or court of law on how they spend the $700 Billion dollars. Are you okay with that?

Papamoka

$700 Billion Bailout Questions!

I don’t find myself agreeing with Michelle Malkin that often so pardon me while I try to swallow a little bile while writing this post. After you read what she has to say you just might find yourself agreeing with her too!

Both parties in Washington are about to screw us over on an unprecedented scale. They are threatening us with fiscal apocalypse if we don’t fork over $700 billion to Treasury Secretary Henry Paulson and allow him to dole it out to whomever he chooses in whatever amount he chooses — without public input or recourse. They are rushing like mad to cram this Mother of All Bailouts down our throats in the next 72-96 hours. And right there in the text of the proposal is this naked power grab: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” - Michelle Malkin

There is no way the Congress or the President should agree to this plan presented by Secretary Paulson for many reasons. The number one reason is that IT IS A BLANK CHECK! “Can not be reviewed by any court of law” is not the way we want to go on this crisis. Below is a copy of the entire plan with highlighted sections in red that are very questionable. I found the document over at the New York Times…

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.--The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.
(2) Secretary.--The term “Secretary” means the Secretary of the Treasury.
(3) United States.--The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.

What do you think?

Papamoka

Presidential Election and Financial Crisis

I’m of the strong opinion that in order to understand the problem that our nation is facing financially you would need to know all of the facts that caused it. It is wiser to have the facts before you than just present a plan for the sake of saying you have a plan. That is just the wrong way, and a very irresponsible way to do things when your nation is facing financial collapse. There is not a band-aid big enough for this problem facing America! Senator John McCain who is running for President thinks it is as easy as that and it is not.

Anyone that has worked in quality control knows that you just don’t guess on the cause of a systems failure. You wait to get all of the facts, examples, research the probable cause of the failure, investigate all probabilities, and eventually you find the root cause of the failure. CSI (Crime Scene Investigation) is very similar to a very well run quality management system. There are steps that need to be taken before you tell the chicken to stop laying eggs because an egg broke on Wall Street. As any good lawyer will tell you, you don’t ask a question in court when you know what the real answer is. Same thing works for quality control and the same thing needs to be in place before any politician races forward with a quick fix plan such as Senator McCain has done with this nations financial market meltdown.

Video Link



Barack Obama did the right thing by not offering a quick fix to this situation till he knows all the facts. Throwing hundreds of billions of dollars if not $1 Trillion dollars at this issue is not the only answer and Obama knows that. Changes in the way our nations financial markets work needs to be looked at very closely and the roll that our government played in this collapse needs to be looked at as well! There is no quick fix and as a Presidential candidate Obama and McCain are not privy to the information that President Bush, Secretary Paulson, and Fed Reserve Chairman Bernake are very well informed of.

When John McCain tells you he knows how to fix this problem and has the experience to back up his words I find serious doubt in his word. When his General Co-Chair campaign manager is Phil Gramm who derailed every opportunity he could to free up Wall Street and the financial markets and stripped the safe guards that Franklyn Roosevelt put in place to prevent another financial collapse. John McCain was right there with Gramm on these votes to suspend regulation of the banking industry so there is some root cause suspect right there.

When you look at what John McCain has said about privatizing Health Care just as he has DONE with BANKING then you see even more root cause for the financial crisis that we all will end up paying for. When you look at the stance that John McCain wanted to privatize Social Security and let it be market driven then you see more root cause to the financial crisis facing America today. Both scenarios point to a future bailout that would dwarf the current one we as American’s will have to pay for.

We all know what a lemon is when we buy it as a car, I think you can spot a lemon in a political candidate when you see one. Just last week John McCain wanted to change our nations Health Care system just like HE CHANGED our nations banking system.

If you know a retiree, then warn them that the checks they receive every month may rise or drop with the market on Wall Street if John McCain is President. Can they afford the gamble that McCain wants to take with all the years they paid into Social Security? Could they afford to live if the same crisis happened to their retirement benefit if it collapsed because Wall Street became greedy and started passing out millions of dollars in bonuses from get rich quick scams. That is exactly what happened in the housing finance markets and those that got paid are sitting fat and happy.

There was a reason why FDR put in the fail safe regulations on the markets and banking industry, it was to protect the people from losing their hard earned money. Their was a reason why John McCain and Phil Gramm removed those protections, there was money to be made by friends.

By all means, you can vote for John McCain for President but you had better learn to say “Paper or plastic” in the job you are going to have to get when you are seventy or eighty years old. Enjoy your golden years but get a job you free loaders that should have a secured retirement benefit from Social Security!

Papamoka

*****Reuters has picked up this entire post! Thank You

American Depression Starts!

How do you put it in simple terms to tell the people that your government as you know it has sold America out for personal gain? How do you tell someone that loves John McCain that he sold you out too? How do you instill the common sense it takes to see the coruption of the last eight years played into the downfall of America's economy?

Don’t hold your breath to hear this news on the networks. The facts of the current financial crisis in the American banking world were told to the leaders of Congress and they were speechless. When was the last time you heard of a politician that had no words. All of the policies of the last eight years has crippled America financially and that responsibility rest at the feet of George W. Bush. And it rests at the feet of people like John McCain that wanted less regulation of our financial markets not just this past week but for decades in the Senate.

This is not good news my friends. This is the end of the never ending growth in America simply because there were no rules to make more money for the sake of making more money that was instilled by Republican policy over the last eight years. Those that made this situation possible have already taken the rewards of the fatted calf and can ride this depression out. Millionaires have that safety buffer to do so, do you?

Over at the New York Times they have this to say on a speechless Congress on hearing the news of our actual state of the union…

Congressional Leaders Stunned by Warnings

By DAVID M. HERSZENHORN
Published: September 19, 2008

WASHINGTON — It was a room full of people who rarely hold their tongues. But as the Fed chairman, Ben S. Bernanke, laid out the potentially devastating ramifications of the financial crisis before congressional leaders on Thursday night, there was a stunned silence at first.

Mr. Bernanke and Treasury Secretary Henry M. Paulson Jr. had made an urgent and unusual evening visit to Capitol Hill, and they were gathered around a conference table in the offices of House Speaker Nancy Pelosi.

“When you listened to him describe it you gulped," said Senator Charles E. Schumer, Democrat of New York.

As Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Banking, Housing and Urban Affairs Committee, put it Friday morning on the ABC program “Good Morning America,” the congressional leaders were told “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.”

Mr. Schumer added, “History was sort of hanging over it, like this was a moment.”
When Mr. Schumer described the meeting as “somber,” Mr. Dodd cut in. “Somber doesn’t begin to justify the words,” he said. “We have never heard language like this.”
“What you heard last evening,” he added, “is one of those rare moments, certainly rare in my experience here, is Democrats and Republicans deciding we need to work together quickly.”

Although Mr. Schumer, Mr. Dodd and other participants declined to repeat precisely what they were told by Mr. Bernanke and Mr. Paulson, they said the two men described the financial system as effectively bound in a knot that was being pulled tighter and tighter by the day.

“You have the credit lines in America, which are the lifeblood of the economy, frozen.” Mr. Schumer said. “That hasn’t happened before. It’s a brave new world. You are in uncharted territory, but the one thing you do know is you can’t leave them frozen or the economy will just head south at a rapid rate.”

As he spoke, Mr. Schumer swooped his hand, to make the gesture of a plummeting bird. “You know we’d be lucky ...” he said as his voice trailed off. “Well, I’ll leave it at that.” - New York Times

In one day this election for President has changed from continuing the policies of Hoover or electing a new deal leader in Roosevelt. I think you all know who is following Hoover and who is following the footsteps of FDR.

I’m shocked, I’m pissed off, and I know that it was not the Democrat Party that sold America down the drain for the sake of making more and more money from the bottom of the food chain in the American economy. Getting past all of the blame we as a people need to move forward, change the way America deals with the markets, change the way we do not care what our political leaders are doing to our nation. Now is the time for change and now is the time for fresh blood in the Congress and in the White House. America and it’s people deserve to be saved just as much as the big banks and Wall Street firms that the Trillion Dollar bailout is going to fund.

Pick a candidate, McCain that follows the policies of Bush that caused this disaster or Obama that is offering a new path out of the disaster? It’s your choice but make sure you vote your wallet if you have not already sold off all of your investments because inflation is about to skyrocket here in America.

Un Freaking believable! Hat tip to Memeorandum for this post!

Papamoka

The Next Great Depression?

Not since the days of the late 1920’s and early 1930’s has this nation seen such large financial institutions collapse as we are seeing currently on Wall Street. Lehman Brothers after 158 years in business is folding up its business table and calling it quits. This is not a good sign of a prosperous economy my friends. Is this the tell tale sign of the next Great Depression or just a bump in the road for the American economy?

Over at the New York Times and Deal Book they have this to say on the matter…

Lehman Expected to File for Bankruptcy Protection
September 14, 2008, 5:55 pm

According to people briefed on the matter, Lehman Brothers will file for bankruptcy protection on Sunday night, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago. (Should be 18 Months Ago)

Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, while its subsidiaries will remain solvent while the firm liquidates its holdings, these people said. A consortium of banks will provide a financial backstop to help provide an orderly winding down of the 158-year-old investment bank. And the Federal Reserve has agreed to accept lower-quality assets in return for loans from the government.

But Lehman’s filing is unlikely to resemble those of other companies that seek bankruptcy protection. Because of the harsher treatment that federal bankruptcy law applies to financial-services firm, Lehman cannot hope to reorganize and survive as a going concern. It will instead liquidate its holdings.

It was not clear whether the government would appoint a trustee to supervise Lehman’s liquidation, or how big the financial backstop would be. - Deal Book/ NY Times

For some odd reason I can’t fathom why John McCain says that the fundamental economy is in great shape and sound? When you have huge financial companies like Lehman Brothers and Merrill Lynch out right going under, do you think it might be a tell tale sign of an economy in trouble? Maybe John McCain doesn’t read the newspapers or watch television from one of his seven to eleven houses? Bank of America may have saved Merrill Lynch in a last minute deal for $44 Billion but Lehman Brothers is a been there and shouldn't have done that legacy for the history books.

Even the Federal Reserve Board is taking unusual steps to fend off the worries in the markets. This is unheard of news.

Papamoka

Al Franken Gas Price Plan

Although gas prices have backed away from the $4.00 per gallon bench mark gasoline still has a long way to go to be affordable again for most American’s. As of today’s date, the cost for a barrel of oil is at $115.10 according to FT.Com. That is still double what most American’s can comfortably afford and with the coming winter, with far too many homes heated by oil, it will be a budget buster for everyone in the middle and lower classes of America.

While the Republican’s in Congress are invading an empty House of Representatives on summer vacation and screaming about an energy plan now for America they are refusing to face the fact that the price of oil is market driven and not supply driven. Saudi Arabia is not having a problem meeting supply, Hugo Chavez is not having a problem meeting oil supply demand? The same thing goes for every oil producing nation in the world. The only people that are having a problem with the price of oil and the supply of it is the many people and big oil businesses that benefit with record prices for oil and profit reports never seen before in the oil markets. Canceling loop holes for greedy investors on Wall Street is what needs to be done and Al Franken who is running for the Senate in Minnesota is 100% correct in thinking that tapping the Strategic Petroleum Reserves (SPR) is the beginning of the path needed to take to see gas prices drop dramatically!

Over at the Star Tribune based in Minneapolis - St. Paul, Minnesota they have this on Al Franken and his realistic opinion on dropping gas prices at the pump…

To lower gas prices, Franken proposes selling oil from reserves

GOP Sen. Norm Coleman's campaign disputes that the move would do much to ease pain at the pump.

By PATRICIA LOPEZ, Star Tribune
Last update: July 28, 2008 - 7:44 PM


With Minnesotans squeezed at every turn by high fuel prices, DFL U.S. Senate candidate Al Franken pumped his own energy proposals on Monday while taking another swipe at rival U.S. Sen. Norm Coleman.

Franken said the United States should sell 50 million barrels of crude oil from its Strategic Petroleum Reserve between now and Election Day -- a move that he said would lower gas prices, generate revenue and deflate the speculator bubble that has helped send oil prices skyward.

Coleman, he said, refused last week to back legislation that would have lowered speculation and instead supports offshore oil drilling that Franken said would take 20 years to affect gas prices.

"People are hurting now," Franken said Monday at a news conference outside a St. Paul gas station, accusing Coleman of setting a Minnesota senatorial record for the most donations from oil companies.

Coleman spokesman Mark Drake said that the reserves are for emergencies and that little would be gained from such a sell-off. The United States consumes oil at the rate of 20 million barrels daily. Tapping the reserves, Drake said, would make an "incremental difference" in gas prices.

Drake said that Coleman supports increases in offshore oil drilling and nuclear, wind and "clean coal" power, and voted against last week's speculator proposal because it lacked an offshore provision.

Franken said that he supports renewable energy but that oil prices have risen to a crisis level, warranting a release from the reserve. Previous sell-offs under Presidents George H.W. Bush and Bill Clinton lowered prices by as much as a third, he said. - Star Tribune

I’m all for Al Franken’s plan and if the prices don’t drop to $2.50 a gallon or lower we should release another 50 million barrels! The cost of oil is killing the American Plastic industry and in doing so killing millions of hard earned jobs that can be outsourced to China where the cost of oil is offset by a government that regulates pricing to make its industry almost impossible to compete with.

Investing in America’s future means investing in alternative energy sources Al Franken has that thought and more built into his plan which also includes funds to insulate northern states homes to help them save on the high cost of heating in the coming winter.

If you think Norm Coleman is going to save Minnesota from the oil busting business on Wall Street then you need to look at his voting record and his current campaign financing. Norm Coleman has been a Bush clone long before McCain even thought it was “Hip”. When push comes to shove, Coleman has pushed the interest of American’s to the curb and his reward for doing so was noticed by his latest campaign contributors.

If you want to save money on next winters heating bill or the bottomless pit of your checking account and the gas tank of your car then vote for Al Franken and someone that will actually do something to CHANGE our nations energy policies! Even if you don’t live in Minnesota, send the guy five dollars to help him kick Coleman’s butt come November.

Enough is enough of this family values crap! All of the crew following George Bush make Tony Soprano look like a freaking saint! Smile in your face as they screw you over just one more time. Enough is enough protecting millionaires and the idiotic thought that trickle down economics actually works.

Somebody call Myth Buster’s and have them do a show on it and maybe then people will actually see the screwing over they are getting!

My thanks go out to the Gun Toting Liberal once more for inspiring me to write this post based on his post on Al Franken talking to just one Veteran for over an hour at an event. A must read if you ask me.

Papamoka

Technorati Tags:
Gun Toting Liberal, AL Franken, Norm Coleman, Minnesota Senate Race, Gas Prices, Oil Markets, Strategic Petroleum Reserve, Market Manipulation, Oil Market Loop Holes, Commodities Market, Wall Street, Energy Policy, Congressional Hoodwink, Vacationing Congress, Republican Games, Senate Races, Electing Democrats, Tough Senate Races, Air America