
Today, House Speaker Nancy Pelosi is out trying to push another stimulus package. What does this mean? Is this the next “fix-all” step?
Our little place to talk about and share about life.
by Daniel
by Daniel
More than two weeks ago, politicians began talk about a bailout plan. While they were in their respected offices, the voice of the people was loud and clear about not wanting the bill passed. However, Washington did not agree and further pushed it along with the end result of having it pass within just a week of the very first draft.
Well, the people were still in opposition of the bailout plan and with due respect. As they watched gas prices drop, they also watched the markets drop in record time. With growing frustration, and little to no retirement left in their IRA or 401k accounts, many wondered what or who was next.
Time has now shown this weekend, that this was not limited to only here in America. It has also shown that the initial $700b+ wasn’t enough. Those voices on the street with enough common sense, knew that this was a global problem. This because of the ever increasing global economy.
With most markets trading lower and lower than ever, it put a strain on many governments to act with haste. This weekend, the G7 met to discuss what measures would need to be taken by the respective countries in order to stabilize the trading markets. So, what was discussed? More importantly, what was agreed on?
Here is the G7 Plan of Action:
The G7 agrees today that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. We agree to:
1) Take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.
2) Take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.
3) Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.
4) Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.
5) Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.
The actions should be taken in ways that protect taxpayers and avoid potentially damaging effects on other countries. We will use macroeconomic policy tools as necessary and appropriate. We strongly support the IMF’s critical role in assisting countries affected by this turmoil. We will accelerate full implementation of the Financial Stability Forum recommendations and we are committed to the pressing need for reform of the financial system. We will strengthen further our cooperation and work with others to accomplish this plan.
With this plan in action, it causes many to ponder whether Washington acted too soon. Certainly, it makes more sense to take a step back when trying to enact such a broad bill, and meet with these countries to come up with a global plan. Global economics is not limited to only Americans, but is open to all.
Many in Washington seem to be left scratching their heads at how they couldn’t have come up with this plan. Many people are left wondering why Washington tried to act so fast versus taking their time and coming up with such a plan.
by Daniel
GM’s problem, and possibly the whole reason they are searching for a partner, is GMAC. What is GMAC? GMAC Financial Services is a diversified, global financial services company that operates in approximately 40 countries in automotive finance, real estate finance, insurance and commercial finance businesses. With so many financial service companies in turmoil, it is no wonder that these talks could ultimately lead to a merger.
So, who could be leading these talks? Cerberus Capital Management, L.P. Who is that? They invest primarily in companies which are near bankruptcy. Cerberus owns around 80% of Chrysler, and 51% of GMAC when GM sold it to them on November 30, 2006. Owning the majority of both GM and Chrysler, it only makes sense that they would want to merge the two to maintain their investment return opportunity.
While all of this is still just talk, it certainly looms in the back of millions of those minds who are employed by either of these two auto giants. These employees need to be reassured, and only for one simple fact. The CEO’s are acting in the best interest of the employees and the companies, and NOT letting the government step in and socialize the auto industry.
by Daniel
by Daniel
by Daniel
What in the bailout will help the people?
M – attacks Obama and his “cronies” for lending and getting contributions from Fannie and Freddie
O – says that credit markets are frozen, problem was deregulation, says he tried to re-regulate over the last two years, THIS IS THE BEGINNING OF THE PROCESS AND NOT THE END
Will it get worse?
O – says that we need to coordinate with other countries
M – the workers are the best and effective
How can we trust either when both parties got us here?
O – Washington is different from the way things are done in the home, talks about the increase of the debt, SPEND MORE MONEY ON THINGS, make spending cuts
M – has worked on reform against things like this, look at records and not the rhetoric, Obama proposes $800b in more spending, look at the records
What are highest priorities?
M – all can be worked on at the same time, build nuclear plants and create more jobs
O – energy first, health care second, education third
What sacrifices will you ask of Americans?
M – eliminate all that isn’t working, ELIMINATE EARMARKS, cut key spending, establish priorities
O – (talks about Bush right after 9-11) save energy, CALL TO SERVICE
Wall street got drunk, how break bad habits?
O – show that Washington has good habits, share the burden
M – Obama wants to raise taxes, compares Obama to H. Hoover, Obama will raise taxes on small companies, attacks Obama on saying he wouldn’t raise taxes if economy is bad, offers tax credits
Social Security, Medicare – date to reform?
O – take on entitlements, can’t work on it in two years but wants to work on it in first term, tries to explain his tax proposal
M – says it isn’t hard to fix it because it has been done before, TOO much special interests, Obama voted 94 times to increase taxes or against tax breaks, RECORDS OR RHETORIC
What would you do in first two years to move fast?
M – energy and economy
O – energy and economy but would have to SPEND and INVEST, agrees with McCain
Should we fund a group on nuclear energy or invest in the garages of the people?
M – attacks Obama on voting, attacks
Health care coverage?
O – it is breaking household budgets, socialize it
M – offer a tax credit across state lines, give the choice to the people
Health care a right or responsibility?
M – both, attacks Obama
O – tries to answer attack from McCain, MANDATE CHILD HEALTH CARE
How will economic stress effect foreign relations?
M – we are the greatest and will continue to be that way, attacks Obama
O – tries to answer attack but shifts to Bush and Iraq, talks about how much being spent in Iraq, agrees with McCain that we are the greatest
Use of combat services if not national security?
O – we have a moral obligation, can’t be everywhere at once, INCREASE INTERNATIONAL COMMUNITY
M – attacks Obama on withdrawl plan, we are the greatest force for good, must be able to beneficially effect situation
Pakistan or Al-Queda in Afghanistan?
O – move from Iraq to Afghanistan and change ways with Pakistan
M – says Obama wants to announce military attacks, speak softly and responsibly
O – if Pakistan won’t help then we’ll do it, agrees with McCain
M – would not telegraph his attack
How would you reorganize effort with Afghanistan?
O – Afghanistan wants our help
M – build up Afghan army, work with Pakistani government
Russia?
M – talks about Putin, work with Russia using international efforts, take time
O – give financial help to countries around Russia like Georgia, work with Russia using international efforts, take time
Is Russia evil empire under Putin?
O – does not really answer but leans more toward yes answer
M – maybe but does not want to answer
Iran attacks Israel, send troop support for Israel without okay from UN?
M – yes, keep eye on Iran and nuclear weapons, attacks Obama on sitting down without pre-conditions, but would also need to use allies with Iran, cannot allow a second holocaust
O – cannot allow Iran nuclear weapons, Israel one of strongest allies, do everything to prevent it diplomatically, one-on-one talks with enemy
What don’t you know and how will you learn it?
O – the challenges of the presidency
M – what will happen here and abroad
by Daniel
Totalitarianism can be defined as: The principle of absolute control and unrestricted domination by a government. Using this definition, one can easily understand what a totalitarian democracy is. It is a system of government which elected representatives are to maintain the integrity of a nation whose citizens, while granted the right to vote, have little or no participation in the decision-making process. It is also noted that it is said to control the lives of its people, using a dual rationale of “public good” and majority rule. This rationale is usually interpreted by the economic and political elite to suit their own interests.
So, what does this have to with the recent government bailout?
Or should one ask, “Did your elected official vote the way you wanted them to?”
Taking a look at the percentage of people who were opposed to any form of a bailout, one would be hard pressed to answer the previous question with a resounding, “Yes.” So lets take a little deeper look into the idea of labeling America a totalitarian democracy.
The government presented this bailout, not as a bailout but a buy-in. And that is exactly what it was for every tax paying citizen, a buy-in. The citizens were forced to buy into the failing institutions with the “idea” that it would “stabilize the market” and allow banks to freely lend money again. But, isn’t that what originally got these companies into a free fall in the first place? Were they not told by the government, in the ’90’s under the Clinton administration, to open up and more leniently loan money to those that could not honestly afford it? Is that the only place to focus our blame, on the failed presidencies of then and now?
Under the direction of the government, saying that everyone should be able to live the American dream of owning a house, the lending companies freely lent out money to those who knowing could not afford it. These individuals were not asked to prove what they could afford, but simply said they were living the American dream. That is not all. One need also look to the Federal Reserve for consistently dropping the interest rate to attract those looking for home-ownership.
What about the people? Do they not take some blame? Most certainly does the blame fall on them. The government did not force them to sign the papers. The lending companies did not force them to sign either. The individual made the choice to knowingly get themselves into trouble and sign papers for what they could not afford. However, many if not all these people pointing fingers at the lending banks for offering a detrimental Adjustable Rate Mortgage(ARM).
The first clue to this “economic crisis”, was offering something that was adjustable. Because, in the end, it will adjust itself to make up for what it lost at the start of the loan. But that isn’t all.
People began to quickly loose their homes and the lending companies began to panic, as well did the government. The economy began to slow, almost to a halt, and speedily the government stepped in and offered a proposal to the people that they would be sending out a “stimulus check.” The government tried to sell this idea to the people saying that it will put money into their hands to freely spend. However, like always, the government was a ways past being late. The people were already past due on their mortgages, overdrawn on their bank accounts, and in an abundance of credit card debt. The government wanted people to go out and spend this money on frivolous things, but the people knew better. They spent it catching up so as not to loose their homes or even their cars.
This is when Americas shift to a totalitarian democracy became very prominent. Without any regard to the opinion of the people, the elected officials went against what the people wished. The people knew that this was too good to be true, and that it would cost them even more because they, the people, would be paying for it with their taxes. Months went by, and the economy was still in turmoil. The little trust the people had in their government, would soon cease to exist when their elected officials went against their wishes and voted yes to the bailout bill.
This $700 billion bailout of the banks, and the takeover of Fannie Mae and Freddie Mac is arguably the largest communistic socialist movement that America has ever witnessed. With referral to The Communist Manifesto, the movement in question is the centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly. With the bailing out of these industries, and amounting the socializing of their loses to the American people through the government, one is forced to take a hard look at the previous statement. Even more alarming, is what Cleon Skousen, in The Naked Communist, raised on the floor of the House on January 10, 1963 saying that the goals of the Communist Party included, but not limited to infiltrate and gain control of big business. Another goal was to infiltrate the press and get control of editorial writing, and policy-making positions.
Does any of this sound familiar?
Our big businesses have, and are being controlled by the government.
The “free” press and their editorial writing is controlled by scare tactics against the people.
A centralized state of credit by means of a nationally backed bank.
So, take a look at what totalitarianism is again. Did your voice matter in this recent government interaction? Where you properly represented by your elected officials? Are those elected officials suiting their interests or yours? Is the media using scare tactics to change the way you think? Is the integrity of this great nation still in tact? Is this the start of a new America?
Remember the Declaration of Independence:
We hold the truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed,–That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety an Happiness.
by Daniel
How did your Representatives vote today on the bailout bill?
http://clerk.house.gov/evs/2008/roll681.xml
Did they vote the way you wanted them to?
Are you happy with the way they voted?
What do you want to see happen now?
by Daniel
by Daniel