Playing Bait and Switch with our Economy

What part of the words “Troubled Asset Relief Program” does Henry Paulson not understand? The taxpayers of the United States just gave the most powerful financial companies in the country more than $700 billion in order to prevent the rest of our economy from slipping into a depression.

However, the Treasury Secretary said that he simply changed his mind and will not use those funds to purchase the troubled assets that lawmakers gave him permission and instructions to buy. Instead, he’ll use the money to purchase the precious “preferred stock”.

Therefore, the tangible relief that was sought won’t happen. The toxic assets are still on the books. They banks already got the money but they are not lending. Wall Street still recognizes the problem and continues to devalue these companies. There has been no tangible progress since the bail-out was announced. However, the taxpayers of the country are light in the wallet to the tune of $700billion.

In order to fix our economy, serious steps need to be made in order to turn this situation around. I believe our first action is to look at our energy policy and the way it has affected our country.

According to the Dept of Energy, in January 2000, the average price of gas was $1.35/ gallon. By June of 2008, the average price was up to $4.13 per gallon. Although our consumption increased by less than 2% during that period, the price went up by almost 400%. The projected usage of India and China 10-15 years from now was always their justification for raising the price. Existing consumption and supply patterns didn’t matter.

The first victims of this increase were the transportation companies. Operational expenses went through the roof as they tried to move people and products from point A to point B. To my understanding, for every penny that the price of gas increases, the airlines lose $25 million.

There was no way our economy could sustain such an increase outside of normal supply and demand tendencies. Many companies initially tried to simply handle doing business with lower profit margins; but, later had to pass on their own price increases to their customers. It became increasingly difficult for businesses to function under their existing pricing and payroll structures. Therefore, many businesses were faced with raising prices, employee layoffs, or both.

Obviously, it became much more expensive for Americans to fuel their vehicles and get back and forth to work. But during this period, the price for everything went up. The price of eggs, milk and cheese all doubled. General Mills and Kellogg were reducing the sizes of their packaging and still raising their prices. Customers were getting far less for much more.

The price to heat your home in the winter and cool it down in the summers also increased. Many regulated power companies lobbied their state PUCs for price increases to make up for their increased delivery costs.

The only thing that didn’t go up during this period was Americans’ salaries. The American consumer was now forced to attempt to operate their homes on the same income but with much higher expenses. The sales of luxury and other non-essential items declined substantially. The automobile manufactures started to announce significant decreases in sales figures. Retailers began to report 20, 25 and sometimes even 40% decreases in sales.

Americans were broke and were not spending their money on new fancy items that they could live without. Disposable income became non-existent.

As more companies went out of business, others continued their lay-offs. More victims were created out of this recession. An obvious victim was the housing market. Not only could Americans no longer afford any new gadgets and cars, they could no longer afford the homes that they worked their lives to purchase, maintain and leave to their children.

Although some Americans fell prey to some punitive loan structures and adjustable rate mortgages that always went up and never went down; many others could simply no longer afford the monthly payment that was no problem for them just a few months ago.

It’s easy to simply blame the foreclosure crisis on our country’s economic woes. However, until we diagnose what created the foreclosure crisis, we’ll be forced to repeat this cycle. We cannot allow any industry to manipulate the delicate balance of supply and demand that we have in this country.

American capitalism has been successful because of its win/win premise. In order to make business sustainable, it has to be good for both the buyer and the seller.

Iranian Nukes, Embarrassed Mayors and Pissed off Cops

Iran has been successful in it's pursuit of nuclear-grade uranium. However, they do not currently have the technology to enrich it to weapons-grade levels. How long do you think that would take? You can hear the Israeli bombers gearing up their planes now.


Henry Paulson says that the current economic mess only happens once a century. Coincedentally, it happened on his watch with all of his banking cronies receiving taxpayer bail-out funds.


Idaho mayor apologies for the behavior of his town students after the recent Presidential election. Apparently, he feels that their chants of "assassinate Obama" was inappropriate. You think???

A federal judge ordered the release of 5 men from Guantanamo Bay. Apparently, they were being held indefinitely only on the word of one unnamed source. In our country, that's usually not enough information to hold you for 7 minutes, let alone seven years.

Some cops in Brooklyn were not that pleased that Obama won the election.

Interesting article on "Missing White-Girl Syndrome".

Somali pirates demand $25M for their hijacked oil tanker.

Israeli Farming, Pilfering the Treasury and Destroying the Constitution

In their second invasion of Gaza in two weeks, Israeli tanks go into Gaza and wipe out those dangerous Palestinian crops and farmland. Gotta wipe out those threatening crops. Public safety hazard. Does anyone else find it peculiar that Israel has decided to escalate the violence since Barack Obama was elected?

Henry Paulson and Ben Bernanke face Congressional panel about their complete mismanagement of taxpayer funds along with their trial and error approach to saving our economy while further enriching their Wall Street cronies. Meanwhile, in an attempt to be as contradictory as possible, they announce their disapproval of bailing out U.S. automakers. They just need to say "Screw you suckers! We've taken the money, gave it to our boys and there's nothing you can do about it!"

The U.S. government has been asking foreign countries to hold Americans indefinitely without charges because of their inability to do so here in the states (legally). The sooner this administration is gone the better. They have absolutely NO regard for our Constitution or the laws that have governed this land for centuries.

Mark Cuban fights back against the insider trading charges levied by the SEC.

What year is it? 1400? What's with this new emergence of pirates? Now, they're asking for a $10M ransom. Tell you what, if these guys continue to steal oil, Bush himself will come and get them.
Michael Steele gets some love for his desire to be RNC chair.

Ignoring Pink Elephants

Talk about penny wise but dollar foolish!!!!!

The SEC has charged Dallas Mavericks owner Mark Cuban with insider trading. Apparently, Cuban withdrew his $750,000 investment after he became aware they were obtaining other private funding.

Now, I don't really care too much if/how Mr. Cuban sold that stock. However, I find it very peculiar that this is the case that the Feds seem to have to prosecute. After going after Martha Stewart for avoiding a loss of less than $50,000, Mark Cuban's $750k looks to be gigantic.

Meanwhile, Exxon Mobile has posted world-record quarterly profits once again. Over the last 6 years, the oil industry has consolidated more wealth than any other in American financial history. Regardless the cold, hard figures of supply and demand, they've strong-armed and "speculated" themselves to their profits, while leaving the rest of our economy in shambles.

They need to be ashamed of themselves. To blindly hurdle billions while targeting thousands speaks to their credibility.

Nothing there to see, I guess.

King Family Shame, Texas Rednecks and Long-range Rockets

The King family is trying to cash in on the Obama-King images that have emerged since Obama's candidacy. Since Coretta's death, these folks have become increasingly more embarrassing with their money related issues. These folks have no shame. Please find a real job instead of living off of your family name.

Hamas fires their longest-range rockets to date at Israel. Obviously, they blame each other for the violence. But, Israel's army invasion of Gaza surely didn't help the cease-fire. I'm sure the new blockade and denial of fuel, food and medicine into Gaza should be taken as a peaceful action.

Special prosecutor appointed to the latest case of Texans dragging black men to death. I'm sure the rednecks would like to file a complaint like these trailer-park superstars who are pissed because their jury has too many blacks on it.

Catholic priest denies communion for parishioners that voted for Barack Obama. He says it's because Obama is pro-abortion. Hey, I wonder if he was for denying communion to his colleagues within the church who were taking liberties with the young members of the church.

Hillary Clinton for Secretary of State?

The Bush Administration is threatening to use executive privilege after they leave office. Uh....what????

Finding a Long Lost American Friend

Wow!! Look at what we have here! President Bush has once again found capitalism! Man, I wonder what took him so long to begin looking for it. Why didn't he look for it when his boys at the oil companies and their cronies at the hedge funds were bilking the American consumer of hundreds of billions of dollars through their collective manipulation of gas prices? Surely, they didn't use supply and demand to justify the rates that made American consumers pay American-record gas prices for over 7 years and therefore give them world-record profits.

Since Paulson just arranged to give his friends at the other financial companies more than $700 billion of taxpayer dollars, why didn't anyone mention capitalism then? Surely that move was closer to Chinese communism than American capitalism.

Now that others outside of his little clique are in line to benefit, he pulls out his maginifying glass and starts looking for capitalistic priniciples in the haystack that is the U.S. economy. Hopefully, he'll find our Constitution under there as well.

Steele for RNC Chair, Cosby on Obama and KKK killers

My take on the bailout courtesy of the Washington Times.

Former Maryland Lt. Governor Michael Steele is lobbying for the position of Chairman of the Republican National Committee. Given the fact that the majority of the Republican establishment did him no favors during his run for U.S. Senate and squashed his earlier attempt at the RNC job, it appears to be a longshot to me. However, he is more than qualified and well capable of handling the position. Clearly, the Republican Party needs an infusion of new energy and ideas in order to stay relevant under an Obama administration and both houses of Congress under Democratic rule.

Bill Cosby takes pictures of late parents and siblings into the voting booth. "You guys are going to vote today....all one one ballot". Provides his take on the historic Obama election.

Al Gore for Secretary of State? I wonder if he'll start bossing everyone around about global warming.

It's funny how Republicans only find conservatism when the beneficiary is not one of their cronies. We'll see what they say now that American Express is seeking a bailout.

Woman killed and dumped on the side of a road after she tried to leave a KKK initiation.

Bill O'Reilly wants Californians to protest at black churches. He blames black folks for the passage of Prop 8. Wow, I didn't realize there were that many blacks in California. The Morman Church? Nevermind......

Post Vacation Tidbits.

AIG bail-out grows to $150 billion. Meanwhile, the Fed refuses to identify the recipients of over $2 trillion in taxpayer-funded loans. Given the fact that we've also provided another $700 billion to the financial industry, that gets us pretty close to the $3 trillion mark. So conservative this administration is........

A school in Mississippi refuses to allow its students to mention Barack Obama unless they are discussing the topic in history class. Sounds like a bit of sour grapes to me. I guess they wouldn't be in favor of the national holiday that appears to be ready to be proposed.

Sarah Palin says those who reported her not knowing about Africa being a country are "jerks".

Can somebody show up sober to pick up this 1-year old child?

OH YEAH!!!!!

America's First Black President

ELECTION DAY

This is a historic day!!! For years, it was fantasized that a black man could one day become President of these United States. Many thought they'd never live to see the day that enough white Americans could overlook the history of race in this country to elect an African-American as President.

This is the change that our country needs. An Obama victory would inspire millions of black Americans and their children to greatness. A role model that should help eliminate some of the negative stereotypes of blacks in this country. Hopefully, a successful Obama administration would help doubtful whites remove some of their prejudices about blacks' abilities in the workplace and in politics.

Yes. This is an important day and an historic moment in history. Get to the polls!! Don't let anyone steal your vote or intimidate you from the polling place.