President Obama now says that senior executive compensation will be capped at $500,000 for those companies receiving "exceptional assistance" from the government. Be happy about this, but not because we want to punish those big bad Wall Street executives.
This is good. Anyone watching CNBC and/or Fox Business when Congress passed TARP or approved a bailout for AIG, Citi, or any other bankruptcy deserving company/industry. Everyone on the trading floor was cheering and patting each other on the back. The DOW went up. Those jerks were thrilled about receiving welfare. As a business owner, the last thing I want is the government getting involved in any way, shape or form in my business.
Sorry Wall Street, most of us learned a long time ago there's no free lunch. These guys are worse than the people who take a "free vacation", not realizing that they need to sit through a very high pressure time share sales pitch.
Let the government put more regulations on these bailouts. Make them so unattractive that no company has any interest in taking them. The government has no idea how to run these companies. Look at the SEC. People were reporting this Madoff scam for years, and the SEC looked the other way. These are the guys who want to run Wall Street and health care.
On the other hand, don't be fooled. President Obama started his talk by explaining the urgency of this so-called Stimulus Plan, and then cleverly switched over to executive pay. Popularity for the Stimulus Plan is dropping like an anchor, as it should. The President is trying to tie executive pay together with the nonsense of the Stimulus Plan. They have nothing to do with each other.
Wednesday, February 4, 2009
Monday, January 26, 2009
Blagojevich and Madoff - Wrongly Singled Out?
Governor Rod Blagojevich is being impeached for allegedly auctioning off a US Senate seat to the highest bidder. Bernard Madoff is going on trial for an alleged ponzi scheme, where money is brought in, and returns on investment on paid with the money of other contributors, rather than the merits of the investment.
Why are these guys being singled out? Most Congressman vote on bills not for the bill's merit, but by the amount of pork that gets fed into a bill that has nothing to do with the bill. That's how the bailout passed. The first bailout was voted down. Then it was voted in because congressmen were promised money in their district for various programs that had nothing to do with the bailout. Isn't that selling your vote? How does that differ from Blagojevich? How is it wrong wrong to sell the job, but OK to act that way once you have the job.
As for a 50 billion dollar ponzi scheme: How many trillions of dollars have gone into Social Security, where we pay into a system that transfer the money to someone else? The scheme has been going on longer than Madoff's and is tremendously larger, but one of these days that scam is going to run out of money too. I doubt anyone is going to stand trial for that one.
Why are these guys being singled out? Most Congressman vote on bills not for the bill's merit, but by the amount of pork that gets fed into a bill that has nothing to do with the bill. That's how the bailout passed. The first bailout was voted down. Then it was voted in because congressmen were promised money in their district for various programs that had nothing to do with the bailout. Isn't that selling your vote? How does that differ from Blagojevich? How is it wrong wrong to sell the job, but OK to act that way once you have the job.
As for a 50 billion dollar ponzi scheme: How many trillions of dollars have gone into Social Security, where we pay into a system that transfer the money to someone else? The scheme has been going on longer than Madoff's and is tremendously larger, but one of these days that scam is going to run out of money too. I doubt anyone is going to stand trial for that one.
Thursday, January 15, 2009
Reaction to the President's Farewell
A quick observation:
Over President Bush's 8 years, I've noticed that whenever he cites people's actions in his speeches, it's always people who are indisputable heroes. Tonight was no exception. For example: the staff sergeant who charged into an ambush in Iraq to save three of his fellow marines. The 60 year old surgeon who enlisted in the Navy medical corps to honor his fallen son. These people are the finest examples of courage, heroism, and resolve.
When I listened to President Elect Obama during his campaign, he was citing people who can't pay their bills, don't have medical insurance, are unemployed and/or have had their homes foreclosed upon. These people are the clearest examples of pain and suffering.
Both types exist. Draw your own conclusions as to why they choose the people they choose in their speeches.
Lastly, a few quotable quotes from a President who has strengths, but public speaking is often not one of them:
We must resists complacency.
We must keep our resolve.
And we must never let down our guard.
If America does not lead the cause of freedom, that cause will not be led.
Over President Bush's 8 years, I've noticed that whenever he cites people's actions in his speeches, it's always people who are indisputable heroes. Tonight was no exception. For example: the staff sergeant who charged into an ambush in Iraq to save three of his fellow marines. The 60 year old surgeon who enlisted in the Navy medical corps to honor his fallen son. These people are the finest examples of courage, heroism, and resolve.
When I listened to President Elect Obama during his campaign, he was citing people who can't pay their bills, don't have medical insurance, are unemployed and/or have had their homes foreclosed upon. These people are the clearest examples of pain and suffering.
Both types exist. Draw your own conclusions as to why they choose the people they choose in their speeches.
Lastly, a few quotable quotes from a President who has strengths, but public speaking is often not one of them:
We must resists complacency.
We must keep our resolve.
And we must never let down our guard.
If America does not lead the cause of freedom, that cause will not be led.
Monday, January 12, 2009
We Don't Need Government to the Rescue
Today, President George W Bush said "And I readily conceded that I chucked aside some of my free market principles when I was told by chief economic advisers that the situation we were facing could be worse than the Great Depression".
Mr. President: I've argued for you when it was very unpopular to do so. You can take responsibility for recognizing we were at war when the rest of the so called civilized world just wanted to chant bumper sticker slogans. But today, I'm beyond dissappointed. First, whoever told you things could be worse than the Great Depression either lied or is an idiot. We're nowhere near breadlines and 25% unemployment. And anyone who believes this ridiculous TARP program that's trying to keep failed companies afloat has staved off an economic disaster can call me because I have a bridge to sell them. Try reading some memoirs of the Great Depression before making such ridiculous comparisons.
Next, nice to know you chucked aside your free market principles because things were looking bad. It's easy to have principles when things look good; try standing by them when things get tough. You certainly did that by sticking it out in Iraq and the Surge when the rest of the world said we lost. Obviously, there were no free market principles.
Now onto our incoming President-Elect. Recently, he told us that only government can get us out of the mess. Well, that's a slap in the face to every entrepreneur and hard working independent Americans. Most of us don't want government helping us, and we most certainly don't need the government to get us out of this. When there's adversity, there's opportunity. Has everyone in the government forgotten this? I hope none of you have.
Get ready for the biggest power grab you have ever seen on American soil. If Barack Obama and Congress get what they want, we're looking at a massive transfer of economic power from the private sector to the government. And we all know what a great job the government has done with managing the DMV, Social Security, etc.
This isn't Republican vs. Democrat. There aren't enough voices on either side of the aisle with any common sense. Everyone is afraid, everyone is going to vote for this economic takeover, and whenever things turn around, they just want to take credit for it. But things are going to be made much worse from this intervention, prolonging the misery. You can't avoid recessions, they're part of the free market.
This is still a democracy. When the time comes for the Great American Bailout Plan, where trillions of dollars of money we don't have gets proposed in the name of "saving the economy" - I hope you're ready for battle. Make sure you call your Congressmen and Congresswomen, and let them know this is not what we want. They don't listen to us because they represent us; they listen to us because we can vote them out if we have half a brain. I hope we do.
Write Your Representative
Contact Your Senator
Mr. President: I've argued for you when it was very unpopular to do so. You can take responsibility for recognizing we were at war when the rest of the so called civilized world just wanted to chant bumper sticker slogans. But today, I'm beyond dissappointed. First, whoever told you things could be worse than the Great Depression either lied or is an idiot. We're nowhere near breadlines and 25% unemployment. And anyone who believes this ridiculous TARP program that's trying to keep failed companies afloat has staved off an economic disaster can call me because I have a bridge to sell them. Try reading some memoirs of the Great Depression before making such ridiculous comparisons.
Next, nice to know you chucked aside your free market principles because things were looking bad. It's easy to have principles when things look good; try standing by them when things get tough. You certainly did that by sticking it out in Iraq and the Surge when the rest of the world said we lost. Obviously, there were no free market principles.
Now onto our incoming President-Elect. Recently, he told us that only government can get us out of the mess. Well, that's a slap in the face to every entrepreneur and hard working independent Americans. Most of us don't want government helping us, and we most certainly don't need the government to get us out of this. When there's adversity, there's opportunity. Has everyone in the government forgotten this? I hope none of you have.
Get ready for the biggest power grab you have ever seen on American soil. If Barack Obama and Congress get what they want, we're looking at a massive transfer of economic power from the private sector to the government. And we all know what a great job the government has done with managing the DMV, Social Security, etc.
This isn't Republican vs. Democrat. There aren't enough voices on either side of the aisle with any common sense. Everyone is afraid, everyone is going to vote for this economic takeover, and whenever things turn around, they just want to take credit for it. But things are going to be made much worse from this intervention, prolonging the misery. You can't avoid recessions, they're part of the free market.
This is still a democracy. When the time comes for the Great American Bailout Plan, where trillions of dollars of money we don't have gets proposed in the name of "saving the economy" - I hope you're ready for battle. Make sure you call your Congressmen and Congresswomen, and let them know this is not what we want. They don't listen to us because they represent us; they listen to us because we can vote them out if we have half a brain. I hope we do.
Write Your Representative
Contact Your Senator
Friday, December 12, 2008
7+ Trillion Wrongs Don't Make 15 Billion Rights
We passed 800 billion to go to a bunch of execs that sit around pushing money around on spreadsheets who thought sub prime mortgages were a good investment. They're even getting bonuses!
The FED is printing and lending trillions of dollars, and not even disclosing where the money is going.
So what's another 15 billion for some automakers who are bloated with corruption, private jets, and unions that have negotiated the sweetest deal in history (for its workers).
Everything is wrong with it. It's time for the government to understand they're making this situation worse with their intervention. The bailout is only creating an environment where success is punished and failure is reinforced with more money, so they can continue to fail.
Government: Get out of the way now. What are you trying to avoid, a recession? Too late. We're in hard times, this country was built on hard times. You can't have good times if you don't have the opportunities created by bad times. Name one country that experienced long term economic growth from government micro-management.
It's time for a little pain and purging. It's going to hurt, a lot. Then there is going to be opportunities like we've never had before. The little guy can't outsmart and outperform the big guy if the government is propping up the big guy with trillions of dollars and calling them too big too fail.
The FED is printing and lending trillions of dollars, and not even disclosing where the money is going.
So what's another 15 billion for some automakers who are bloated with corruption, private jets, and unions that have negotiated the sweetest deal in history (for its workers).
Everything is wrong with it. It's time for the government to understand they're making this situation worse with their intervention. The bailout is only creating an environment where success is punished and failure is reinforced with more money, so they can continue to fail.
Government: Get out of the way now. What are you trying to avoid, a recession? Too late. We're in hard times, this country was built on hard times. You can't have good times if you don't have the opportunities created by bad times. Name one country that experienced long term economic growth from government micro-management.
It's time for a little pain and purging. It's going to hurt, a lot. Then there is going to be opportunities like we've never had before. The little guy can't outsmart and outperform the big guy if the government is propping up the big guy with trillions of dollars and calling them too big too fail.
Tuesday, December 9, 2008
The People's Republic of Windows and Doors
You've got to be kidding me.
So this company shut down because Bank of America made a business decision not to keep their line of credit open. The union is demonstrating a "sit-in" because they're not getting the benefits, back vacation etc. owed to them.
Illinois Governor Rod Blagovich said the State would no longer do business with Bank of America until they reinstate the line of credit, allowing the employees to get their benefits/paid vacation time. He claims the bailout money Bank of America received was designed specifically for this purpose.
Yeah... that makes sense. Extend a company credit that's not making any money. Isn't that how we got into this mess? Perhaps now that Governor Blagovich was caught trying to sell the vacant Illinois Senate seat to the highest bidder, he may have other things to worry about than extorting Bank of America.
To the workers at the plant: I'm sorry you lost your job - these are terribly tough times. But if Bank of America is forced to give in and lend money it will never get back, then the slippery slope continues - or maybe we're already off the cliff.
So this company shut down because Bank of America made a business decision not to keep their line of credit open. The union is demonstrating a "sit-in" because they're not getting the benefits, back vacation etc. owed to them.
Illinois Governor Rod Blagovich said the State would no longer do business with Bank of America until they reinstate the line of credit, allowing the employees to get their benefits/paid vacation time. He claims the bailout money Bank of America received was designed specifically for this purpose.
Yeah... that makes sense. Extend a company credit that's not making any money. Isn't that how we got into this mess? Perhaps now that Governor Blagovich was caught trying to sell the vacant Illinois Senate seat to the highest bidder, he may have other things to worry about than extorting Bank of America.
To the workers at the plant: I'm sorry you lost your job - these are terribly tough times. But if Bank of America is forced to give in and lend money it will never get back, then the slippery slope continues - or maybe we're already off the cliff.
Monday, December 8, 2008
Transportation Bailout Scenario
Not too long ago in our history, a major manufacturer of vehicles that were widely used were going out of business. There were many factors such as competition and difficult economic times.
Employees lost their jobs and companies went out of business. It was a pretty sad story for an industry that served so many for so long.
But these companies didn't get a bailout. If they did, we'd all still be driving horses and buggies.
Employees lost their jobs and companies went out of business. It was a pretty sad story for an industry that served so many for so long.
But these companies didn't get a bailout. If they did, we'd all still be driving horses and buggies.
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