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Welcome Back...........  President Roosevelt once said: "The Only Thing We Have to Fear Is Fear Itself ".  Our Government is trying to use fear tactics to pass this bailout for their political cronies. 

October 01, 2008: The bill passed the Senate and they all thanked themselves for what a great job they did. Now it's off to the House.  The Stock Market should be down 1% tomorrow. -110.

The American Media has been starting political in fights between both parties so the American public will watch their shows.  I believe not one of the commentators ever even read the bill introduced last week, except Lou Dobbs on CNN.  Here is the newest version H.R. 3397 which is even worse for us taxpayers.  It will take to year 3397 for us to pay back this plan, that where there probably got the number from, the cost now 850 billion dollars.

This new bill (plan B) added the FDIC insurance to 250,000.00 from 100,000.00 and Mental health protection for crazy people. This will add another 150 billion.  Are these politicians nut's, why add mental health to a financial plan.  I believe this bill shouldn't have pass again with all the new pork added.  I also believe the politicians who voted YES in the beginning, didn't even read this bill.

  Kuhl Cosponsors Alternative Economic Rescue Plan

September 29, 2008:  Bad day for Wall Street, good day for the American Taxpayer.  It took me 2 hours to read the 110 page bailout bill tonight. Lou Dobbs and Senator Shelby were correct, it's only a blank check for Wall Street.  Let the Stock Market correct itself like it always did before.  Banks and Financial Institutions will go under, but it's their own greedy fault.  We will see a new plan by the end of the week.  "Don't Bailout the Banks", if they said the worst problem is a "Credit Crunch" here's how to fix-it. Pass/Write a bill for the Government to lend firms the money and take a equity interest in those firms for the taxpayer.  If the firms fail, takeover the firms, and sell the assets they hold.  The Government could have saved Wachovia today this way. 

If the bailout bill does pass it will gave the Treasury Secretary Paulson enormous discretion to do whatever he wanted on spending the 700 billion.  He could start his own company (R.T.C.), hire all his own cronies, pay them top pay, control all sub-prime mortgages and this would have did nothing for us average taxpayers.  How many lobbyist supported this bill? Pork.

I applauded José Serrano, Kirsten Gillibrand, Maurice Hinchey, Randy Kuhl from New York for not voting on this bill.

U.S. Representative John R. "Randy" Kuhl, Jr. (R-Hammondsport) issued the following statement today concerning his vote against the taxpayer funded bailout.

Breaking news: Looks like no deal........... The DOW should be down -350.00 tomorrow.

September 24, 2008: Senator Richard Shelby spoke tonight and doesn't back the bailout.  He has an alternative solution which I agree with, he had letters from 200 economists saying this bailout plan is no good. We could very well spend $700 billion and not resolve the crisis," Shelby said. "Before I sign off on something of this magnitude, I want to know that we have exhausted all reasonable alternatives. I don't believe that can be done in a weekend. If the government is going to get into the bailout business, shouldn't we also be focusing our resources on average Americans, rather than sophisticated and well-compensated bankers?"

Barney Franks spoke again and said it's all John McCain's fault that they can't pass their plan.  "Saturday Night Live" should create a character for him because he is very funny looking and you can't understand anything he said. Watch CNN.  He is the most liberal Democrat who hates President Bush any Republican getting into office for that matter.

Some thoughts for today:   Paulson ran Goldman Sachs and this bailout would help make all his friend on Wall Street rich.  He will be losing his job soon and he won't even oversee this plan. George Bush doesn't know any better, we know he's not the smartest guy in the room.

September 24, 2008: Barney Frank (D, MA) has been in Congress since 1981. He is the Chairman of the Financial Services Committee.  This Congressman speaks like he has no teeth.  You can't even make out a word he says.  Tonight he said the plan is good.  This man never did anything good to oversee this mess.  He should not be reelected.  I'd rather see Barney Rubble oversee the Financial Service Committee. Barney Rubble wouldn't let someone with a phone and a desk to setup shop as a "Mortgage Broker".  These people were a big part of the problem.  27 years of Service, with no financial experience should be fired.

President George Bush spoke tonight and said "This is the worst financial crisis since the 1930's".  What he didn't say was worse then what he did say.  He should have called for the American people to tighten their wallets, save more, conserve energy, and point out who was responsible for this mess and how it should have been avoided.  He should start pointing fingers and let the American people know they will be prosecuted.

Some thoughts for today: 1) If we are in such a crisis why don't we demand that the House and Senate not go on vacation till the end of the year  2) Can we have a list of all the Senators and Congressman that took campaign contributions from this firms that we are bailing out, then throw them out. 3) Why did we give tax breaks today to Solar companies when there all own by China. 4) Our two party system doesn't work anymore, to much fighting and nothing getting accomplished. 5) Throw out all the lobbyist immediately. 6) Why are we bailing out Hedge Funds, only rich people can invest in them. 

September 23, 2008.............

Breaking news: FBI now investigating CEO and Officers of Freddy Mac, Fanny May,  Lehman Brothers and AIG. 

Spokesmen for AIG, Fannie Mae and Freddie Mac did not immediately return calls for comment Tuesday evening. A Lehman spokesman did not have an immediate comment.

 Source http://money.cnn.com/2008/09/23/news/companies/fbi_finance.ap/index.htm?cnn=yes

I have a comment: ex-CEO Richard Syron who was at the control of Freddy Mac while the Agency was losing billions was reportedly paid the following.    What happen to S.O.X.

$1,200,000.00 in Salary

$19,800,000.00 in compensation

$771,585.00 in other compensation

$14,300,000.00 Stock and options

$34,871,585.00 in Total

I really feel sorry that his stock is down now and his options are worthless.  How many people lost their life savings?  How much did these other executives make while they were robbing these companies and not overseeing their duties. 

The $800,000,000,000 Billion Bailout. 

Only $700,000,000,000.00 now. Let's give them a dollar instead.

Or 73 Trillion Japanese Yen or 7.5 Zillion Mexico Peso's

This is what it looks like 7,517,720,127,120.000 (MXN)

This is how it works? 

You go to the bank and apply for a home loan mortgage.  They check your credit rating, past and current employment history, and your current salary , this determines how much you can afford.  You get pre-approved based on those criteria.  You make Mortgage payments for 15 to 30 years and payoff the home. 

This is what use to happen? 

You lost your job or had medical expenses that made you late on mortgage payments and you started defaulted on the loan, which might cause foreclosure on your home.  Your bank has mortgage insurance to foresee these delinquencies and this system should generate enough revenue to be a profitable enterprise. 

What went wrong? 

Financial institutions weren’t satisfied with this arrangement and wanted to capitalize on more profits from the home mortgage market.  Home prices were rising and everybody was profiting with no end in sight.

Enter Mortgage brokers, hedge funds, and speculators.  Mortgage brokers would give loans to customers without even a background check.  This was an unregulated market.  Market speculators would purchase homes with these types of loans.  Most of the time getting approval on multiple mortgages to liquidate when home sales rose in the late 90’s to 2007 making a nice profit. 

About 6 million people in the United States without jobs or the ability to pay could get a loan.  Capitol Hill was fine with this arrangement because home ownership is suppose to be the “American Dream”. 

Financial Institutions like, AIG, E-Trade, Washington Mutual, and Lehman Brothers would package and sell multiple mortgages that were either in default or had the risk of possible foreclosure.  These were labeled “Sub-Prime Mortgages”. 

These sub-prime mortgages were re-labeled and sold back and forth between financial institutions with names like “Real Estate Investment Trust” (R.E.I.T.s) Collateralized Debt Obligations (C.D.O.s) etc.  Please read this article which details how the mortgage wheel was reinvented:  http://www.marketoracle.co.uk/Article1444.html 

Your Mutual Fund company, Pension Plan and Banks bought these investment products based on the credit rating agencies ratings on these investments.  Some money market funds even purchased these vehicles. 

Who is to blame? 

If you said WASHINGTON.  You are correct. 

Our great Congressmen and Senators were in bed with these “Special Interest Groups” that profited on these investments.  These weren’t regulated by the “S.E.C. act of 1930 1934” http://www.sec.gov/about.shtml because our great leaders have always taken campaign contributions from these lobbyist to oversee that no regulations were ever put in place to stop these risky investments. 

Lobbying includes all attempts to influence legislators and officials, whether by other legislators, constituents or organized groups.  

Also see http://en.wikipedia.org/wiki/Lobbying_in_the_United_States.

Freddy Mac and Fannie May were also allowed to make loans for about two of the six Million people that got caught up in this mess.  These are privately owned, government sponsored organization that uses private capital to buy home mortgages as a means to help lower housing costs. Greed makes some very special bedfellows. 

Should “We the people” approve the $800,000,000,000 Bailout? NO. NO. Absolutely NO 

People who couldn’t afford a house shouldn’t buy one.  Freddy Mac, Fanny May, AIG, Lehman Brothers should be liquidated into bankruptcy.  C.E.O.s, C.F.O.s, C.O.O.s, Lobbyists, Congressmen and Senators that took advantage of this should be put in jail. 

What should we do now?  Create a new “Government oversight Institution” that will cost less then 800 Billion. Buy all these default mortgages, for pennies on the dollar, no package deals, they must be purchased individually.  There cannot be more then 6 million homes.  Close Freddy and Fanny immediately, take over their mortgages.  Elect a Board of directors that have to file quarterly (10k) reports. 

These 6 million individual homes then can be sold on the open market at or below the market prices.  Auctions can be created on the web.  New mortgage holders must have means to afford these homes.  Some profits generated could be used to upgrade the most depressed markets and the additional profits should be added to our Social Security Fund. 

But its only $800 billion?  Did you know that Foreign Intuitions could use this money?  Did you know that troubled banks, Wall Street Financial Firms not in trouble, could get rich on this 8B scheme?  Our Congress and Senate members will once again have  lobbyist divert these funds to their special interest profiteers or investment funds. Charles Rangel could be in charge.

Now let’s take a house that’s not selling, you see the markers on the lawn and driveway all across America. 

If “We the People” cannot afford the asking price we drive right by.  Greedy people will do anything to make a profit. Flip this house became a popular show.  Now if you bought 8 million houses at $100,000.00 that would cost 800 billion.  Tell your local officials this  package isn't acceptable.  Instead of "Flip this House" we should be watching "This Old House" like we did before greed was everywhere. My favorite show by the way.

How many jobs would be created if we upgrade 6 million homes?  How many low-income homes could be salvaged?  How many fines, penalties, and jail convictions could we impose on these shady lawmakers? Investment Bankers? C.E.O.s and their cronies? 

September 21, 2008

New articles to follow:  Who are the players -  Why short selling is good for stocks and the market - Why Option Trading don't generate income for the rich, and why it's not reported to the IRS, think "covered call writing".

Prediction: Dow Jones Average at 8,263 January 01, 2009