I have watched the brains of the the monetary system invoke "Stimulus" as a fix for everything from Wall Street to the housing market. It has yet to be proven that any government solution with the word "stimulus" in it actually fixes anything. What is proven is that every stimulus action by the Fed or by Congress increases our national debt.
A moral man rejects the concept of debt simply as immoral. Government however is too smart for that. So we're left with the "intellectual" perspectives of those in power. May God save us from our educated leaders.
I've discovered very few people understand the "stimulus" offerings. Basically the government directly, as in "TARP" funding, or indirectly as through the Federal Reserve Bank " Quantitative Easing" stimulus programs, purchase debts from a select group of companies, always the giant mortgage holders, investment bankers, insurers, or brokerage houses. Most of the targeted recipients blur the lines these days and do have their fingers in multiple pots. In essence we give them interest free money to play with, under the guise that the money will make it's way somehow down to the middle class. This rarely happens however, as the giants simply inject the money into their businesses, lose it into general accounting columns, and play with the money for everything from benefits for execs to insider investments.
Regardless of how they use the stimulus "gifts" the one constant is this. We don't have the money in our national coffers. We borrow the money. We increase the nations debt. Every time.
For the record, the same players that receive the funds are the same ones charged at least once per year with insider trading violations. The Mogan Stanley's, Bank of America,etc. They settle their cases neither "admitting guilt or acknowledging wrongdoing" with a few millions, and continue the same practices year after year. Type in SEC settlements and you will find dozens of examples to read about.
What happened to the insurance, housing, banking, and mortgage markets? The bubble they speak of was inflated with government helium. Government in the name of protecting us little guys, rewarded that inside giant group until their competition was depleted. The govt guaranteed their sloppy investments as a "business" with Fannie, Freddie, and Ginny Mae. Then when the government encouraged bubbles burst, the government bailed out the same insider players with "stimulus" money, funded by your children. Actually, with 16 trillion debt and growing, make that your grandchildren.
Common sense after a few trillion dollars of this tells us, the money is not pumping up the economy. It is pumping up the inside players. By the way, did I mention every one of the stimulus recipients gives generously to both parties during elections? You get the picture.
So what do you think the stimulus packages accomplish? If you answered, they increase the national debt and transfer your children's assets to a few big friends of government, give yourself an "A".
Thursday, September 13, 2012
Saturday, August 25, 2012
A letter to Jenny Beth Martin
I contribute to charity, to my church, and to various political candidates and organizations that want to restore America to a nation leading the world once again. I receive "appeal" letters every time I go to the mailbox.Once you "contribute" you do to some degree become a favored appeal target from that point on.
One association I support and hear a lot from is the "Tea Party Patriots", whom I admire and support philosophically. I do note however a growing tendency to adopt the "tone" of the professionals, creating a sense of urgency to "contribute" to vote out a few bad guys, as though that's the crux of the problem. In truth however, we are in moral decline with government leading the charge. We need a clean sweep.
So here is a letter I recently wrote To Jenny Beth Martin in response to an appeal for money.
Dear Ms. Martin,
As a faithful (emphasis on "faith" intended) follower and contributor, permit me a few observations.
First, please stop the five and six page wordy appeals. I know the think tanks have injected how these appeal letters ought be done but I submit to you the Tea Party was literally born of us tired of all the "bloviating" as O'Reilly puts it. I also note the Democrats are masters at the simple, short, and often untruthful appeal ( They're cutting medicare..They're attacking women's rights, etc.) and it's working for them.
I also disagree that "this is the most crucial election". We say that every election. That's how Bush got in and for me, that was the crucial election. We expanded government programs, reduced liberties, and opened doors to crony everything, all while chanting "we must reduce taxes". I remind you, even John Roberts, a traitor to the nation in my view, was a Bush appointee.
So let's make an appeal to "un-elect" RINO representatives still voting like mad on spending programs. For that matter, let's un-elect either party that can justify a penny of deficit spending for any reason. Another novel thought - how about we support the total overhaul of schools to return them to the original purpose and restore the Pledge of Allegiance. And may we worship God and Jesus Christ without being attacked for it? I'd like to see more of these messages.
I've managed to get my views on one page. My suggestion is you strive to do the same. It will reduce costs and do wonders for building a sincere base of followers and not just a donor list to hit over and over and over. As important as it is to get "them" out, it's more important that the people we've already helped in start acting out what they campaigned on.
Again, remember why the Tea Party self initiated to begin with.
With sincere regards,
One association I support and hear a lot from is the "Tea Party Patriots", whom I admire and support philosophically. I do note however a growing tendency to adopt the "tone" of the professionals, creating a sense of urgency to "contribute" to vote out a few bad guys, as though that's the crux of the problem. In truth however, we are in moral decline with government leading the charge. We need a clean sweep.
So here is a letter I recently wrote To Jenny Beth Martin in response to an appeal for money.
Dear Ms. Martin,
As a faithful (emphasis on "faith" intended) follower and contributor, permit me a few observations.
First, please stop the five and six page wordy appeals. I know the think tanks have injected how these appeal letters ought be done but I submit to you the Tea Party was literally born of us tired of all the "bloviating" as O'Reilly puts it. I also note the Democrats are masters at the simple, short, and often untruthful appeal ( They're cutting medicare..They're attacking women's rights, etc.) and it's working for them.
I also disagree that "this is the most crucial election". We say that every election. That's how Bush got in and for me, that was the crucial election. We expanded government programs, reduced liberties, and opened doors to crony everything, all while chanting "we must reduce taxes". I remind you, even John Roberts, a traitor to the nation in my view, was a Bush appointee.
So let's make an appeal to "un-elect" RINO representatives still voting like mad on spending programs. For that matter, let's un-elect either party that can justify a penny of deficit spending for any reason. Another novel thought - how about we support the total overhaul of schools to return them to the original purpose and restore the Pledge of Allegiance. And may we worship God and Jesus Christ without being attacked for it? I'd like to see more of these messages.
I've managed to get my views on one page. My suggestion is you strive to do the same. It will reduce costs and do wonders for building a sincere base of followers and not just a donor list to hit over and over and over. As important as it is to get "them" out, it's more important that the people we've already helped in start acting out what they campaigned on.
Again, remember why the Tea Party self initiated to begin with.
With sincere regards,
Sunday, February 12, 2012
A Scam is still a scam....
A Scam by any other name…
By “traditionalbill”
As much as we are told we need more access to credit to get the old economy going, it is the misuse of credit that got the economy stopped to begin with. When someone in government tells you we can throw money at a problem, and it’s borrowed money they are throwing, red flags should go up. Especially if they caused the problem to begin with.
Why did the Insurance market collapse? Because borrowed money wasn’t replaced with real money. It’s really that simple. Ditto the real estate market, the banking industry, and Wall Street. Sadly however, it was orchestrated to be that way. It was the "bundling" of loans as a salable commodity, guaranteed by partnerships like Fannie, Freddie, and Ginnie that fed the greed machine and helped create the perfect scam.
Here briefly is how it works. In the name of compassion, the government promises to help folks buy homes, by “guaranteeing” the repayment of mortgage loans. Sold as a program for the lower and middle class who just need a little help, this opens the door for select industry insiders to make loans, which they are eager to do. The actual guarantees, and more importantly the cash that changes hands, stays inside the lender coffers. These lenders make loans, not to put people into homes, but to resell them and grab a quick short term profit. The beauty of it is, one can make bad loans, and in essence hide them in plain site, in "bundles". The more, the merrier.
Bribes and favors drive government policy. Common sense does not. Had it, common sense would have cautioned them that guaranteeing a loan for a shaky candidate doesn’t equate to their paying it back. Common sense would also have told them that commissioned lenders could become addicted to making bad loans to resell them. Then again, well placed campaign contributions redefines common sense. Topping all of this is the ludicrous truth that virtually all of the money being splashed around by the government was deficit money, or money that does not actually exist. It does not require a PHD in finance to figure out the poor guy who would eventually be holding the bag when real money would be due would be not the lender, nor government reps, but the taxpayer.
The overvaluation of real estate was a result of following mortgage loans driven ever upward now that they could be resold easily. Eventually the need to really settle the loans, now well above the value of the real estate held as collateral, required real money. As the overvalued loans came due to be paid with real money and not simply the promise of it, market after market involved in the loan bundling business collapsed.
The “poor” and lower middle class were not helped, unless driving up unemployment rates, foreclosure rates, and insurance rates are benefits. To hide the blatant injustice to taxpayers, we got stimulus bills passed to "save the nation" from collapse. We were not supposed to notice the bail out funds went to the same profiteers. Not to bail them out personally as their personal fortunes were intact, but to basically keep the scam machines afloat. It was and is still, business as usual. They think we don’t know that.
What’s going on now? More of the same. All the talk about mortgage programs to help those caught in the foreclosure squeeze? The money still goes to the lenders. Are consumer borrowing rates lower? Nope. Are mortgage points lower? Nope. Are closing costs lower? Nope. Are lenders reimbursed? Yep. Are campaign coffers brimming? Yep.
A scam by any other name is still a scam.
By “traditionalbill”
As much as we are told we need more access to credit to get the old economy going, it is the misuse of credit that got the economy stopped to begin with. When someone in government tells you we can throw money at a problem, and it’s borrowed money they are throwing, red flags should go up. Especially if they caused the problem to begin with.
Why did the Insurance market collapse? Because borrowed money wasn’t replaced with real money. It’s really that simple. Ditto the real estate market, the banking industry, and Wall Street. Sadly however, it was orchestrated to be that way. It was the "bundling" of loans as a salable commodity, guaranteed by partnerships like Fannie, Freddie, and Ginnie that fed the greed machine and helped create the perfect scam.
Here briefly is how it works. In the name of compassion, the government promises to help folks buy homes, by “guaranteeing” the repayment of mortgage loans. Sold as a program for the lower and middle class who just need a little help, this opens the door for select industry insiders to make loans, which they are eager to do. The actual guarantees, and more importantly the cash that changes hands, stays inside the lender coffers. These lenders make loans, not to put people into homes, but to resell them and grab a quick short term profit. The beauty of it is, one can make bad loans, and in essence hide them in plain site, in "bundles". The more, the merrier.
Bribes and favors drive government policy. Common sense does not. Had it, common sense would have cautioned them that guaranteeing a loan for a shaky candidate doesn’t equate to their paying it back. Common sense would also have told them that commissioned lenders could become addicted to making bad loans to resell them. Then again, well placed campaign contributions redefines common sense. Topping all of this is the ludicrous truth that virtually all of the money being splashed around by the government was deficit money, or money that does not actually exist. It does not require a PHD in finance to figure out the poor guy who would eventually be holding the bag when real money would be due would be not the lender, nor government reps, but the taxpayer.
The overvaluation of real estate was a result of following mortgage loans driven ever upward now that they could be resold easily. Eventually the need to really settle the loans, now well above the value of the real estate held as collateral, required real money. As the overvalued loans came due to be paid with real money and not simply the promise of it, market after market involved in the loan bundling business collapsed.
The “poor” and lower middle class were not helped, unless driving up unemployment rates, foreclosure rates, and insurance rates are benefits. To hide the blatant injustice to taxpayers, we got stimulus bills passed to "save the nation" from collapse. We were not supposed to notice the bail out funds went to the same profiteers. Not to bail them out personally as their personal fortunes were intact, but to basically keep the scam machines afloat. It was and is still, business as usual. They think we don’t know that.
What’s going on now? More of the same. All the talk about mortgage programs to help those caught in the foreclosure squeeze? The money still goes to the lenders. Are consumer borrowing rates lower? Nope. Are mortgage points lower? Nope. Are closing costs lower? Nope. Are lenders reimbursed? Yep. Are campaign coffers brimming? Yep.
A scam by any other name is still a scam.
Saturday, July 23, 2011
Deficit and Default - Cause and Effect
Some things are just plain wrong. Deficit spending is one of them. Avoiding deficits or eliminating debt are appropriate responses. Compromising to continue deficit spending, even one dollar of it, is not.
The politically left elitists, along with their ever loyal mainstream press, propose we avoid the consequences of default without addressing the root cause. They believe we must avoid default regardeless of how we do it. It's part of their "ends justifies the means" thinking process. Moreover, they hold that the public wants both parties in Washington to compromise to "get things done". By their reasoning deficits just happen. In truth deficits are not things that just happen. They're things we cause, and unless we address the cause we cannot avoid eventual default, even if we dodge the bullet this time with more debt.
The truth is the deficit now has a stranglehold on our economy. Greece plunged into unsustainable debt and has Europe holding it's breath waiting for a domino effect. Greece is a preview of things to come for us. We'll just make a much bigger splash.
It doesn't help that the average person has little grasp of the high costs of debt until they're personally destroyed by it. We don't instruct people in public schools how to acquire wealth or how to use money. Instead we pound them with a message that credit is convenient short cut to life's enjoyable things. But that's just marketing talk, addicting us to plastic the same way we addict people to everything from cigarettes to big screen TV's. At some point Americans come to grips with reality. Lives are ruined as bankruptcy and foreclosure dockets are full.
Debt undermines all healthy financial foundations. Unsustainable debt is the root cause of the recent financial chaos in the credit, finance, insurance and real estate industries. The answer government keeps coming up with is, in effect, a Ponzi scheme. They vote to allow more borrowing to pay the bills we can't pay from tax revenues. We raise the debt ceiling. This stalls the effect but increases the debt. It makes the problem bigger. It also hides the partnership of a corrupt government accepting coffers of campaign dollars in exchange for favorable legislation, pet project funding, and good old stimulus bailout money to favored sons.
Insanity has been described as repeating something over and over and expecting a different result. We've raised the debt ceiling over and over again since 1969, always with a premise that Congress will address the debt and balance the budget, but they never do. They are addicted spenders. They influence, bribe, and reward campaign support partners by tossing arround money they don't actually have, but have the power to obligate the country to pay out, financed by debt.
Greed is not good. Gordon Gekko is a Hollywood concoction. Deficit spending is just plain wrong, and fifteen trillion dollars worth is extremely wrong. Dangerously wrong. Perhaps even criminally wrong. When the time comes for the U.S. government to really default, as it ultimately must, there is no bankruptcy procedure to fix things. Remember the U.S.S.R.? When a nation collapses, it changes governments. That's how it works.
The truth is, the only outcome of increasing deficits and debt is national financial collapse. Calling for Republicans to "compromise" without addressing the cause and balancing the budget is both cowardly and foolish. That the Senate just refused to consider the Cut, Cap and Balance bill passed by the House or allow debate about it is a very clear is indication that the Senate has no intention of stopping the train wreck.
Millions of us recognize the danger and we want it stopped now. If London Bridge must fall, let's deal with it, and not place the burden on the backs of a future generation. But the truth is, London Bridge doesn't have to fall. We can actually address the root cause, deficit spending, and fix the problem.
Those unwilling to do so are the narrow of mind, in spite of all their name calling.
The politically left elitists, along with their ever loyal mainstream press, propose we avoid the consequences of default without addressing the root cause. They believe we must avoid default regardeless of how we do it. It's part of their "ends justifies the means" thinking process. Moreover, they hold that the public wants both parties in Washington to compromise to "get things done". By their reasoning deficits just happen. In truth deficits are not things that just happen. They're things we cause, and unless we address the cause we cannot avoid eventual default, even if we dodge the bullet this time with more debt.
The truth is the deficit now has a stranglehold on our economy. Greece plunged into unsustainable debt and has Europe holding it's breath waiting for a domino effect. Greece is a preview of things to come for us. We'll just make a much bigger splash.
It doesn't help that the average person has little grasp of the high costs of debt until they're personally destroyed by it. We don't instruct people in public schools how to acquire wealth or how to use money. Instead we pound them with a message that credit is convenient short cut to life's enjoyable things. But that's just marketing talk, addicting us to plastic the same way we addict people to everything from cigarettes to big screen TV's. At some point Americans come to grips with reality. Lives are ruined as bankruptcy and foreclosure dockets are full.
Debt undermines all healthy financial foundations. Unsustainable debt is the root cause of the recent financial chaos in the credit, finance, insurance and real estate industries. The answer government keeps coming up with is, in effect, a Ponzi scheme. They vote to allow more borrowing to pay the bills we can't pay from tax revenues. We raise the debt ceiling. This stalls the effect but increases the debt. It makes the problem bigger. It also hides the partnership of a corrupt government accepting coffers of campaign dollars in exchange for favorable legislation, pet project funding, and good old stimulus bailout money to favored sons.
Insanity has been described as repeating something over and over and expecting a different result. We've raised the debt ceiling over and over again since 1969, always with a premise that Congress will address the debt and balance the budget, but they never do. They are addicted spenders. They influence, bribe, and reward campaign support partners by tossing arround money they don't actually have, but have the power to obligate the country to pay out, financed by debt.
Greed is not good. Gordon Gekko is a Hollywood concoction. Deficit spending is just plain wrong, and fifteen trillion dollars worth is extremely wrong. Dangerously wrong. Perhaps even criminally wrong. When the time comes for the U.S. government to really default, as it ultimately must, there is no bankruptcy procedure to fix things. Remember the U.S.S.R.? When a nation collapses, it changes governments. That's how it works.
The truth is, the only outcome of increasing deficits and debt is national financial collapse. Calling for Republicans to "compromise" without addressing the cause and balancing the budget is both cowardly and foolish. That the Senate just refused to consider the Cut, Cap and Balance bill passed by the House or allow debate about it is a very clear is indication that the Senate has no intention of stopping the train wreck.
Millions of us recognize the danger and we want it stopped now. If London Bridge must fall, let's deal with it, and not place the burden on the backs of a future generation. But the truth is, London Bridge doesn't have to fall. We can actually address the root cause, deficit spending, and fix the problem.
Those unwilling to do so are the narrow of mind, in spite of all their name calling.
Sunday, July 10, 2011
Casey Anthony - Just A Bad Verdict
The OJ Simpson trial taught shocked Americans that clever legalese can prejudice a jury that wants to be prejudiced. The Casey Anthony show added gloating to the sting of injustice. Both are simply examples of bad verdicts.
For the Geraldo's and misguided Hannity's touting the verdict as a victory for the constitution, it's nothing of the sort. Constitutional protections were honored as they should be. No one wants them diminished or ignored. But that fact however has nothing to do with the verdict. It was a bad one, rendered in spite of the evidence rather than because of it.
For openers, " beyond a reasonable doubt" has been hijacked by defense Guru's to become " no doubt at all". The truth is, unless you're an eye witness, some doubt is always present. Some doubt is reasonable. Caylee Anthony could have been kidnapped by slave traders. Or abducted by aliens. Or stung to death by killer bees. Or drowned in the pool. While remote and unsubstantiated possibilities exist, that hardly warrants acceptance of them over facts that are a matter of record. Casey is a confirmed self serving, remorseless, liar. She wrote bad checks with no regard what-so-ever for the victims. She lied to police, to her parents, to her boyfriend, and to her partying friends to intentionally cover the truth about Caylee. To brush this aside to consider one of the remote possibilities, as some jurors have admitted to doing, is much more "unreasonable" over considering the preponderance of facts pointing to the obvious.
Casey's demeanor as a mother during the first 30 days is horrifying. Not reporting the baby missing is incredibly morally corrupt and reckless behavior. If it doesn't prove to some people that she caused the baby's death, it certainly does prove she acted selfishly for her sake and dangerously for her baby's sake. But when you combine all the known facts and apply them to a baby found duck taped, in a trash bag, in a marsh, it becomes unreasonable to consider Casey was not the cause of Caylee's death. It's overwhelmingly clear to almost everyone except the jurors. They seem to have bought into an unreasonable requirement to "doubt" the evidence in front of them. It doesn't matter if we forensically know how Caylee died. We know conclusively she is dead. There is only one criminally corrupt, remorseless, selfish, and reckless person the evidence points to.
Casey did not get a not guilty verdict because her constitutional rights were assured. She got it because innuendo's were permitted in place of evidence, and because jurors were brainwashed into believing that any doubt at all means they shouldn't find someone guilty. I believe most of the time, when the spot lights are not so bright, we get it right. This time we didn't.
For the Geraldo's and misguided Hannity's touting the verdict as a victory for the constitution, it's nothing of the sort. Constitutional protections were honored as they should be. No one wants them diminished or ignored. But that fact however has nothing to do with the verdict. It was a bad one, rendered in spite of the evidence rather than because of it.
For openers, " beyond a reasonable doubt" has been hijacked by defense Guru's to become " no doubt at all". The truth is, unless you're an eye witness, some doubt is always present. Some doubt is reasonable. Caylee Anthony could have been kidnapped by slave traders. Or abducted by aliens. Or stung to death by killer bees. Or drowned in the pool. While remote and unsubstantiated possibilities exist, that hardly warrants acceptance of them over facts that are a matter of record. Casey is a confirmed self serving, remorseless, liar. She wrote bad checks with no regard what-so-ever for the victims. She lied to police, to her parents, to her boyfriend, and to her partying friends to intentionally cover the truth about Caylee. To brush this aside to consider one of the remote possibilities, as some jurors have admitted to doing, is much more "unreasonable" over considering the preponderance of facts pointing to the obvious.
Casey's demeanor as a mother during the first 30 days is horrifying. Not reporting the baby missing is incredibly morally corrupt and reckless behavior. If it doesn't prove to some people that she caused the baby's death, it certainly does prove she acted selfishly for her sake and dangerously for her baby's sake. But when you combine all the known facts and apply them to a baby found duck taped, in a trash bag, in a marsh, it becomes unreasonable to consider Casey was not the cause of Caylee's death. It's overwhelmingly clear to almost everyone except the jurors. They seem to have bought into an unreasonable requirement to "doubt" the evidence in front of them. It doesn't matter if we forensically know how Caylee died. We know conclusively she is dead. There is only one criminally corrupt, remorseless, selfish, and reckless person the evidence points to.
Casey did not get a not guilty verdict because her constitutional rights were assured. She got it because innuendo's were permitted in place of evidence, and because jurors were brainwashed into believing that any doubt at all means they shouldn't find someone guilty. I believe most of the time, when the spot lights are not so bright, we get it right. This time we didn't.
Sunday, June 26, 2011
The Rhetoric of the "Clueless".
Another Obama quote graced the front page of the local business section. "America must invest in high-tech manufacturing". Uh huh. Sounds profound.
The problem with this kind of rhetorical blithering is in spite of it being an essentially meaningless statement, it suggests anyone in disagreement is not in favor of a great America. But among those like myself, and a few million other Tea Party advocates, the problem is that this kind of rhetoric is actually used to make America less great. To be specific, the problem is a socialist wanna be group of legislators seizing on popular sound bites to interfere with basic freedoms, one of which is the free market system.
" America must invest in high tech manufacturing". My first response is, why? As I suspected (and in fact feared) Obama called for "a joint effort by industry, universities, and the federal government to help reposition the United States as a leader in cutting edge manufacturing". What does the last decade of political reality 101 tell us this really means? A bunch of political insiders a/k/a political donors, are going to get federally distributed dollars (500 million in this case)to feather the nests of a selected few. When the smoke clears the debt will be bigger and basic freedoms smaller. Unions will receive priority, so long as they remain democratic party supporters. When the alignment actually produces little and changes nothing, the inside spin magnates will exemplify how many jobs were "created", omitting the details about deficit increases and tax burdens.
We are soooo tired of this. A ray of light on the political spectrum shows the voting public is also tiring of the double speak leading us into the financial solidarity of a modern day Grecian utopia.
Why not a return to the free market philosophy that made this nation great. That means less government "creation" and more genuine individual American ingenuity. Drop the phrases about how we must "compete in the global marketplace" when that really means that Washington insiders will get favored contracts to open export and import operations, and factories in other nations. Americans need to build in and for America and let the world come to us, instead of the other way around.
The truth is every time these 500 million dollar programs are launched, it does more to endanger the factory worker in small town America, than to enhance him. Obligating future taxation to generations of Americans is an ugly result of "job creation".
The problem with this kind of rhetorical blithering is in spite of it being an essentially meaningless statement, it suggests anyone in disagreement is not in favor of a great America. But among those like myself, and a few million other Tea Party advocates, the problem is that this kind of rhetoric is actually used to make America less great. To be specific, the problem is a socialist wanna be group of legislators seizing on popular sound bites to interfere with basic freedoms, one of which is the free market system.
" America must invest in high tech manufacturing". My first response is, why? As I suspected (and in fact feared) Obama called for "a joint effort by industry, universities, and the federal government to help reposition the United States as a leader in cutting edge manufacturing". What does the last decade of political reality 101 tell us this really means? A bunch of political insiders a/k/a political donors, are going to get federally distributed dollars (500 million in this case)to feather the nests of a selected few. When the smoke clears the debt will be bigger and basic freedoms smaller. Unions will receive priority, so long as they remain democratic party supporters. When the alignment actually produces little and changes nothing, the inside spin magnates will exemplify how many jobs were "created", omitting the details about deficit increases and tax burdens.
We are soooo tired of this. A ray of light on the political spectrum shows the voting public is also tiring of the double speak leading us into the financial solidarity of a modern day Grecian utopia.
Why not a return to the free market philosophy that made this nation great. That means less government "creation" and more genuine individual American ingenuity. Drop the phrases about how we must "compete in the global marketplace" when that really means that Washington insiders will get favored contracts to open export and import operations, and factories in other nations. Americans need to build in and for America and let the world come to us, instead of the other way around.
The truth is every time these 500 million dollar programs are launched, it does more to endanger the factory worker in small town America, than to enhance him. Obligating future taxation to generations of Americans is an ugly result of "job creation".
Thursday, July 1, 2010
Tesla-mania Sweeps Wall Street
Were it not so tragically representative of what’s wrong with our financial market, the demand for Tesla Motors IPO offering would be laughable. Indeed the beautiful people are all agog with what they believe is the hottest stock prospect since Starbucks found a market for three dollar coffee flavored whipped cream.
What’s all the fuss about? Tesla Motors, the latest darling of Hollywood, political leftists, and amateur Wall Street enthusiasts. Anybody who’s anybody wants to be in this game. Tesla is the electric roadster car made in Great Britain designed to sell for a mere $109,000.00. Names like George Clooney and Brad Pitt top a list of 998 people with orders in for them. It is the stuff that anti oil, life is good when living off the government, environmentalists dream of. For them it is answered prayer to gas guzzlers. For mainstream America however, it is an unrealistic and unworkable alternative.
Similar to Fannie Mae and Freddie Mac, which never seems to make money but enjoys government subsidies, Tesla, a British company, is politically popular. Enough to have garnered 465 million dollars from the US government in loan guarantees. Also similar to Freddie and Fannie the government insists that the names of campaign donors that coincidentally matches the names of the Tesla principals wasn’t a factor in their decision. This of course is the same denial about the 529 million in government loan guarantees issued to Fisker Automotive, a Finnish car which coincidentally boasts Al Gore’s group as investors. The rest of us are scratching our heads trying to figure out how high priced electric prototypes outside America benefits America.
While admittedly lacking a degree in automotive engineering or economics, I none the less hold the view, counter to our government and the political left, that a car designed to sell for over 100 thousand dollars is probably not going to be the breakthrough to resolving oil dependency. What it is going to do, in my opinion, is make a few insiders a car trunk full of money…, and then go broke.
With all the insider elements in play, the initial public offering is getting incredible interest in the financial district. Apparently everybody thinks those early in are going to make a pile of money buying Tesla stock and they may be correct. Stock is strictly a demand driven product. When a lot of people want the stock, even if the company has no prospect of making a profit, share prices rise. Similarly in a financially healthy company that is making a profit, such as BP, when a lot of people don’t want the stock, the share price goes down. Still, in the long term however, when a company has no chance of making money or surviving, the stock collapses. That stated, I for one would not be buying Tesla with a long term view.
One big problem with Tesla is that it is mired in debt on the front end. All they’ve done with the massive start up loans is manage to lose money. Hundreds of millions. Moreover the car can’t become popular because it is priced beyond reach for the average American. Even among those who can afford one, does anyone seriously think they are going to be trading in their Roadster ever year for a new one?
The founder and CEO Elon Musk is admittedly broke, in the process of a messy divorce, and desperate for cash. Tesla has already lost 246 million dollars in the first three years. None of this suggests optimism.
Recent history suggests the politically connected insiders will pocket millions and walk away rich when the company fails. Those with arms linked to Washington power will move on to new government deals and contracts. That’s how the game is played. It’s important to remember that at a casino, the dealer always works for the house while the players go broke.
My prediction for this latest hundred grand fad is that like all fads, it will run it’s course and fade away, along with the money of many small investors. Before you get too caught up in Tesla-mania, my advice is to think, “DeLorean.
What’s all the fuss about? Tesla Motors, the latest darling of Hollywood, political leftists, and amateur Wall Street enthusiasts. Anybody who’s anybody wants to be in this game. Tesla is the electric roadster car made in Great Britain designed to sell for a mere $109,000.00. Names like George Clooney and Brad Pitt top a list of 998 people with orders in for them. It is the stuff that anti oil, life is good when living off the government, environmentalists dream of. For them it is answered prayer to gas guzzlers. For mainstream America however, it is an unrealistic and unworkable alternative.
Similar to Fannie Mae and Freddie Mac, which never seems to make money but enjoys government subsidies, Tesla, a British company, is politically popular. Enough to have garnered 465 million dollars from the US government in loan guarantees. Also similar to Freddie and Fannie the government insists that the names of campaign donors that coincidentally matches the names of the Tesla principals wasn’t a factor in their decision. This of course is the same denial about the 529 million in government loan guarantees issued to Fisker Automotive, a Finnish car which coincidentally boasts Al Gore’s group as investors. The rest of us are scratching our heads trying to figure out how high priced electric prototypes outside America benefits America.
While admittedly lacking a degree in automotive engineering or economics, I none the less hold the view, counter to our government and the political left, that a car designed to sell for over 100 thousand dollars is probably not going to be the breakthrough to resolving oil dependency. What it is going to do, in my opinion, is make a few insiders a car trunk full of money…, and then go broke.
With all the insider elements in play, the initial public offering is getting incredible interest in the financial district. Apparently everybody thinks those early in are going to make a pile of money buying Tesla stock and they may be correct. Stock is strictly a demand driven product. When a lot of people want the stock, even if the company has no prospect of making a profit, share prices rise. Similarly in a financially healthy company that is making a profit, such as BP, when a lot of people don’t want the stock, the share price goes down. Still, in the long term however, when a company has no chance of making money or surviving, the stock collapses. That stated, I for one would not be buying Tesla with a long term view.
One big problem with Tesla is that it is mired in debt on the front end. All they’ve done with the massive start up loans is manage to lose money. Hundreds of millions. Moreover the car can’t become popular because it is priced beyond reach for the average American. Even among those who can afford one, does anyone seriously think they are going to be trading in their Roadster ever year for a new one?
The founder and CEO Elon Musk is admittedly broke, in the process of a messy divorce, and desperate for cash. Tesla has already lost 246 million dollars in the first three years. None of this suggests optimism.
Recent history suggests the politically connected insiders will pocket millions and walk away rich when the company fails. Those with arms linked to Washington power will move on to new government deals and contracts. That’s how the game is played. It’s important to remember that at a casino, the dealer always works for the house while the players go broke.
My prediction for this latest hundred grand fad is that like all fads, it will run it’s course and fade away, along with the money of many small investors. Before you get too caught up in Tesla-mania, my advice is to think, “DeLorean.
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