Archive for September, 2008
Let Them Fail?
September 30th, 2008. Published under General. No Comments.
Since the bailout measure failed so spectacularly on Monday, I’ve been doing a bit of reading on the “what if we don’t do anything” scenario.
Scott Adams (of Dilbert fame) asked the question in his blog today and asked if there were any stories out there that give more specifics as to not doing anything. A commenter linked to a story in Time magazine that says the risk-taking banks/institutions should be allowed to fail. The story also closes with the following quote:
“Let the poorly managed, overly risk-taking financial institutions fail! Always remember that Wall Street and the real economy are not the same thing. ”
I’m beginning to wonder the same thing.
Also, why is the government surprised that a measure that 80% of the American public doesn’t want got defeated 6 weeks before an election?
We definitely live in interesting times.
Defeated!
September 29th, 2008. Published under General. No Comments.
“House Votes Down Massive Bailout Measure - 228-205″
Um, guys…that should tell you that you shouldn’t RUSH THE DAMN THING. There needs to be funding and protection for regular Americans - not just for Wall Street with the “hope” that any profits/fairy dust generated by these companies will find it’s way down to Middle America.
Bull.
I’m both glad and anxious by this result. But there are increasing numbers of experts are saying we don’t need to do this. A quote from the linked story:
Institutional Risk Analytics: So you oppose the idea of the government putting preferred equity into solvent but troubled banks that cannot raise capital on reasonable terms?
Bert Ely: Yes, it is not necessary, even now. There is absolutely no need for the Treasury to have the authority, as you suggested, to “inject capital into solvent banks that are temporarily unable to raise new capital.” If a bank truly is solvent, it can raise additional capital or sell itself, if its present owners are realistic about what their bank is worth. The reason solvent banks have a problem raising capital, or selling themselves to a stronger bank, is that they set their price too high, as did AIG. As an aside, I am glad to see AIG’s shareholders getting whacked by the warrants associated with the Fed’s taxpayer’s loan to AIG. There is absolutely no need for the taxpayer to subsidize banks so they can stay independent, provided no barriers are erected to prevent new entrants into bank or specific banking markets.
Bingo.
Again, if a bank is TRULY solvent, it can raise additional capital or sell itself, if its present owners are realistic about what their bank is worth.
So why are we trying to shore up banks that would’ve failed anyway?
That’s why Congress should take their time and make sure we don’t screw this up if it’s TRULY needed.
Food For Thought
September 26th, 2008. Published under General. 3 Comments.
[Another politics post - skip it if you want to]
You know, the more I think about it, McCain’s desire to “postpone” tonight’s Presidential debate with Obama is less of “he’s scared to face Obama” and more of “he’s scared for Palin to face Biden.”
Think about it. He’s proposed to move tonight’s debate to next Thursday, October 2nd. The night the ONLY Vice Presidential debate is scheduled to be held. After watching this softball of an interview with Katie Couric, I can see why they’re scared:
The transcript if you don’t want to watch it:
COURIC: You’ve cited Alaska’s proximity to Russia as part of your foreign policy experience. What did you mean by that?
PALIN: That Alaska has a very narrow maritime border between a foreign country, Russia, and on our other side, the land– boundary that we have with– Canada. It– it’s funny that a comment like that was– kind of made to– cari– I don’t know, you know? Reporters–
COURIC: Mock?
PALIN: Yeah, mocked, I guess that’s the word, yeah.
COURIC: Explain to me why that enhances your foreign policy credentials.
PALIN: Well, it certainly does because our– our next door neighbors are foreign countries. They’re in the state that I am the executive of. And there in Russia–
COURIC: Have you ever been involved with any negotiations, for example, with the Russians?
PALIN: We have trade missions back and forth. We– we do– it’s very important when you consider even national security issues with Russia as Putin rears his head and comes into the air space of the United States of America, where– where do they go? It’s Alaska. It’s just right over the border. It is– from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to– to our state.
Um….WHAT?!
By that reasoning, I should be qualified to be president because I live in MN. Granted I can’t see Russia from the top of my freshly killed moose carcass, but I’ve been to Iowa. That’s the same thing, right? I also enjoy watching British comedies, so that gives me experience with the UK and I drive a Japanese car, so that gives me great ties to Japan. Right?
The guy on WCCO radio this morning said it best: “Palin shouldn’t be getting pointers on how to answer questions from Miss South Carolina.”
True.
Marcy Rules!
September 24th, 2008. Published under General. No Comments.
Preach it, sistah!
It’s the biggest problem I have about this whole financial crisis: why is big business the focus? If our government would have made it possible for people facing foreclosure to refinance and not lose their homes (thus being able to keep PAYING MONEY to these banks) months ago, we wouldn’t be in this mess right now. Now, instead of trying to help out regular Americans, they’re focusing on the suits in Wall Street.
I agree with the bipartisan support to not allow the CEO’s of these companies to walk away with millions of dollars in bonuses - they should get nothing. Just like we’re getting nothing.
Personally, I’m fine because I was smart when I bought my house. I didn’t buy more than I could afford and I got a 30-year fixed rate mortgage. Granted, I’m going to be paying PMI for a few more years now since my home’s value has tanked with the rest of the country, but even with that added fee on my mortgage payment, I’m still OK. If the cost of utilities and food keeps rising like it has been, I’ll just get more hours at Ye Olde Part Tyme Jobbe to offset.
But seriously, the idiotic “HURRY UP OR THE TERRORISTS WILL WIN ECONOMY WILL COLLAPSE OMG!!1!!11!!one!!!” drivel that Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are spewing isn’t generating the sense of urgency with the American people like they hoped for. I hope Congress calls their bluff and takes a good look at this bailout proposal and makes some thoughtful decisions as to who’s ass should be saved in this mess.
Things are grim right now - but that makes it even more essential that we act thoughtfully and not irrationally when it comes to turning things around.
Excelsior!
Feel the Burn!
September 23rd, 2008. Published under General. 2 Comments.
I started a new fitness class yesterday. As I’ve been struggling (and not really buckling down like I should have) with my fitness/weight loss these past few months, I thought all I needed to do was to run more.
Obviously, that’s not the case. What I needed was some total body fitness. Funny enough, that was the name of the class too! After thirty minutes of lunges, squats, push-ups, crunches and other such body abuse - I felt the burn.
I also realized that I have little to no upper body strength anymore. Back when I lived closer to Vertical Endeavors, it was easier to go rock climbing and get my upper body workout. But now, I live too far away to be able to go on a regular basis and it’s definitely showed in my lack of upper body fitness.
So, now I’m going to adjust my schedule to go to this class every Monday and Wednesday because today, I’m sore but in a good way. Soon, you’ll be able to bounce a quarter off me! (lol)
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T-Mobile G1….WANT
One hundred seventy-nine dollars, open source and $35 for unlimited messaging and web. Take that, Apple!
Oh Yeah, Everything Is Fine!
September 18th, 2008. Published under General. 1 Comment.
AIG just got bailed out by the government in the latest round of companies who have been decimated by the greed of investors, builders and bankers in the mortgage and credit crisis.
Ten banks in the United States this year have gone belly-up. I’m happy to read that my bank (USBank) is one that is going to weather the crisis. Hopefully.
A more recent casualty: The Bank of Scotland had survived European revolutions, agricultural depressions, two world wars, stock market crashes and too many recessions to mention. Now it has succumbed to the greatest convulsion in financial markets since 1929.
This shit isn’t just happening in this country. The ripple effect of this economic meltdown is now spreading across the rest of the world and god knows when it will end.
But there are some people (*coughMcCaincough*) who think that the economy is “fundamentally strong” and that everything is fine - I’m not sure they’re in touch with reality. A quote from an article asking whether or not the economy is strong states:
When the two largest financial institutions in the nation, which guarantee about half of the mortgages, fail and have to be taken over by the government, when the fourth-largest investment bank files for Chapter 11, and when the Federal Reserve effectively nationalizes a massive insurance firm that is a component of the Dow Jones Industrial Average, the economy may not be fundamentally sound.
In an economy where consumption constitutes 70 percent of activity, retail sales falling two months in a row may indicate that the economy may not be fundamentally sound.
Oh yeah, completely sound!
I truly am hoping for a turnaround, but I’m a bit fearful of where this is heading and that the true impact of all the unchecked greed of the past 5 years is yet to come.
I hope I’m wrong.
Enough Is Enough!
September 10th, 2008. Published under General. No Comments.
[sorry about all the politics on here today, but I had to share this one]
Just about every ad I see from the Republicans and those who support them are doing just that - taking items out of context and blowing them out of proportion.
Damn, I can’t wait for this election to be over with. I’m so sick of it.
Quote of the Day
September 10th, 2008. Published under General. No Comments.
“You can put lipstick on a pig, but it’s still a pig. You can wrap an old fish in a piece of paper called ‘change,’ it’s still going to stink. After eight years, we’ve had enough of the same old thing. It’s time to bring about real change to Washington and that’s the choice you’ve got in this election.”
- Democratic presidential candidate Barack Obama on Tuesday
And it’s true. Do people forget that we’ve had 8 years of hell (and more to come now that Fannie and Freddie had to get bailed out) because of the Republican party? Will people vote for who can bring our country out of this pit or will they once again vote for the guy they would most want to have a beer with?
Wake up, people. Your futures are at stake!
What A Week
September 9th, 2008. Published under General. No Comments.
I haven’t had time to recap a lot of stuff that happened last week. The Daily Show taping, the riots afterwards, etc. Now I have a short work week before going out to NY for a wedding this weekend and way too much fucking stuff to do between now and then.
Our friend Zach took a quick shot of Tim and I after the taping and before we worked our way through the riots and riot police:
The rest of his photos from the night are here.
Let’s see…what else? Palin is Bush the Second, the Vikings suck and I’m so very sad summer is coming to an end. But, onward and upward, I say!
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