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Fair ~ High: 73°F ~ Low: 48°F Monday, May 21, 2012 |
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Economic NewsPosted Thursday, September 18, 2008, at 2:42 PM
Here are a few items that have been reported by various news outlets in the past several days.
Dow Jones Drops 240 points. Dow Jones Plunges 500+ points. Morgan-Stanley in talks to acquire Wachovia. Lehman Brothers file for bankruptcy. AIG was permitted to borrow money from its subsidiaries (Isn't this loaning money to yourself?) and then given a bailout by the government. McCain expresses opposition to the bailout on Tuesday and on Wednesday says it is ok. McCain (after Merrill Lynch crisis) condemns Wall Street executives and their 'fat-cat' packages.' Merrill Lynch & employee's are the top contributors to the McCain campaign. One of McCain top economic advisers, Carly Fiorina received a $42,000,000.00 'golden parachute' after being fired. Ms. Fiorina says Sen. McCain does not have the skills to run a large corporation. After the comments a campaign spokesperson said: "Carly will now disappear, Senator McCain was furious." On Monday Sen. McCain says "the fundamentals of our economy are strong." Less than four hours later he says "the fundamentals of our economy are at risk." On Tuesday he was calling the economic situation "a total crisis." Sen. McCain has consistently characterized himself as "fundamentally a deregulator," but now proposes new regulations. At a town hall meeting Gov. Palin was asked to "Give us some details and examples of your strategies and plan for economic empowerment for women." Her response: "Well first let me take a shot at that, and I'll tell ya, I'm a product of Title IX in our schools, where equal education and equal opportunities in sports really helped propel me into the--I guess into the position that I'm in today; Sen. McCain added: "Could I mention she was a point guard on a state championship basketball team" and that he would make an effort to hire women in his administration. Sen. Chuck Hagle when asked about Gov. Palin said: "I think it's a stretch to, in any way, to say that she's got the experience to be president of the United States." According to ABC News, today at a rally Sen. McCain 'slammed the Security and Exchange Commission (SEC) for being "asleep at the switch" saying that if he were president, he would fire Chris Cox, the chairman of the SEC since 2005 and a former Republican congressman. But while the president nominates and the Senate confirms the SEC chair, a commissioner of an independent regulatory commission cannot be removed by the president.' Freddie Mac & Fannie Mae are taken over by the Federal Government with a bailout up to $100 BILLION for each business. A quick glance shows that stock prices for Freddie Mac have dropped from $65.88/share to $0.25/share. The groups CEO's, Daniel Mudd and Richard Syron are scheduled to receive a severance package totaling $24,000,000.00! It is so bad that Freddie Mac CFO Anthony "Buddy" Piszel has put his vacation home on the market. Asking price: $5 Million. The house is a 'custom-renovated, three-story Georgian-style mansion, known as "Rigby's Lott," is on 4.5 gated waterfront acres. It features six bedrooms, six baths, formal dining and living rooms, a cherry-paneled den, game/media room and gourmet kitchen. Piszel bought the Easton, Md., spread - which includes a new pool, hot tub, a guest house, a horse stable and riding ring - only 18 months ago. Some of the fancy toys on the property include a $230,000 38-foot Fountain Sportfish Cruiser, ironically named "A Better Decision," powered by three fuel-sucking outboard engines, two high-end Jet Skis, a house Jeep and a few horses. (http://www.huffingtonpost.com/2008/09/18/freddie-mac-boss-selling_n_127465.html) In what other country do you get rewarded so handsomely for failure? I am still waiting to see the 'bailout' for ordinary citizens facing their own foreclosure problems. Don't they get a "severance package?" Alan Greenspan says "this is worse economy I have ever seen," and the country couldn't afford the tax cuts being proposed by John McCain because "I'm not in favor of financing tax cuts with borrowed money." So remember that we are living (according to Sen. McCain's economic advisor Phil Graham) in a nation of "whiners" and that any talk about recession is all "mental." This is the same person that passed legislation for banking "reform & deregulation". See how well it's working!
News Update: McCain ads are referred to as "going beyond the true test" His ads are referred to as misleading and untrue by the liberal left wing commentator Karl Rove. (Yes THAT Karl Rove) McCain campaign releases ads & makes remarks saying Obama was referring to Gov. Palin with the 'pig & lipstick' remark. On Monday Sen. McCain says the remarks DID NOT refer to Ms. Palin Comments Showing most recent comments first [Show in chronological order instead] |
Ron Monnig has more than 35 years of experience working with civic, community and political groups. He has served in elected, appointed and volunteer positions since high school. He has a Bachelor of Arts degree in History/Government from Columbia College. He is a Democratic party activist; VP of Saline County Democrat Club, Member of Democrat Central Committee of Saline County.
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Let's go for it! >))
So what is the function of civil society and what is the function of government? While our constitution is prohibitive, or what the government MUST NOT do, other nations who DO have universal health care and education have amended their constitutions to be proactive, or what the government MUST do.
If civil society is the codification of values, what values should be codified? While I agree that things that are worked for are valued more than things that are not, to be given a hand up is not a bad thing... why is it always presented that if you help someone up, you are making them dependent? I think it is a false choice. What is community about, volunteerism, giving back, cooperation, team-work, sharing and generosity? Do these things make us weak?
Is it ok to grab what you want at the expense of another?
How do we share burdens to accomplish common goals, or do we each have to be our own fire department, police, library, etc? That sounds ominously like the 19th century during which only the wealthy could afford food, education, safety, clean water, and nice houses. IS that what we want to return to?
What about the fact that climate change is desertifying ever-larger areas of the South and Southwest, Africa, and central Asia? Or that the polar ice-caps are melting, which is our largest 'storage facility' for fresh water?
Your turn...
As usual, the core values you present are in full agreement with mine. Thomas Pain was indeed an inspired man, and I present a small excerpt from "Rights of Man":
"It is a perversion of terms to say that a charter gives rights. It operates by a contrary effect -- that of taking rights away. Rights are inherently in all the inhabitants; but charters, by annulling those rights, in the majority, leave the right, by exclusion, in the hands of a few ... They ... consequently are instruments of injustice.
"The fact, therefore, must be that the individuals, themselves, each, in his own personal and sovereign right, entered into a compact with each other to produce a government: and this is the only mode in which governments have a right to arise, and the only principle on which they have a right to exist."
Just as two human beings, I present to you that government mandate of universal healthcare and universal education would go against the "rights of man," by giving some pencil-pushing politician the power to take it away.
Which is not to say people should go uneducated or uncared for, but instead people need to take personal responsibility for their lives and the lives of their children and their family, even strangers if they can. I don't believe in putting my faith solely in the government, and I don't think you do either; if we can agree on that we can agree that the human spirit and the will to push on (maybe a little faith in God, even) is what's going to get us through each crisis we as a people face.
I believe it was you who kept using the phrase "once you're born, you're on your own"; it may sound harsh, but when has it ever been any different? If your parents don't have the good sense to provide and care their child, what gives the government the right to do so?
The "trickle down theory" is just a theory, and not a greatly enlightened one either. But government trying to play Robin Hood and take from the rich to give to the poor is not going to work either. Here's why:
I'm pretty sure you're not going to be a big fan of Clarence Thomas, but I've learned a lot from him. He wrote in his book "My Grandfather's Son" (which you might consider reading some time; it's at the Marshall Public Library), that he saw first-hand how giving someone something because they (or someone else) thinks they deserve it without having earned it is just going to make the receiver dependent on handouts from a government that won't always offer those handouts.
I say, if you want something, it's your right to reach out and grab it (figuratively, not literally), and if you set a goal no one thinks you can make, go ahead and jump for it anyway, but don't expect the government or other people to be your springboard.
NanaDot, our "Two roads (have) diverged in yellow wood"; let's take the one less traveled by. Let's forget who's Democrat and who's Republican, who's with the Constitution party or the Green party, or Libertarian or Independent, let's ask ourselves what it is we truly believe, and how we put those beliefs into practice?
Sound like a plan?
Nicely done...as usual NanaDot.
Music - I'm calmer now, but not much... If you want to read some historic stuff, be sure to read Tom Paine...
As far as what is right, you're certainly correct about that, but I propose a meeting ground...
no labels, no names, just the bare ideas...
Human beings live on this earth, which is a closed and finite system, therefore, we must treat it as such - very carefully and with great respect.
Human beings require certain things for life: clean air, clean water, food, shelter, covering; caring and concern are equally as necessary to healthy functioning as physical needs; useful work is good; safety and some social order is good; time to raise our young, care for our sick and elderly, and time to be in and part of our communities seem to be good ideas.
Can you say universal health care, universal education, sustainable agriculture, decent housing, a living, family wage, infrastructure, a professional civil service corps, community partnerships, worker protections and employee-stakeholders/owners...
We could all make a very decent living, contribute to the common good, individual excellence, and national growth. But I reject the 'trickle-down' BS that says it's ok to make a killing off of any one or any part of the Earth.
There is a value to what we take, whether the greedy bean-counters choose to acknowledge or not: What is the value of global water storage, cleaning and circulation?; What is the value of global air filtration and circulation? What is the value of atmospheric protection? What is the value of bio-diversity across the globe? Do we know more than God, the Earth, and/or evolution to think we can really tinker with DNA and the building blocks of life itself, and PATENT it with such impunity and arrogance?
How do we construct an economic system that is based on slow or no growth (non-cancerous), ecologically sound, and productive?
Do we NEED 15 kinds of toilet paper, 40+ brands of shampoos, 50+ brands of cereal? Are these not FALSE choices, distractions from REAL and IMPORTANT choices, like what is happening to the economy, the war, the energy crisis, how we GOT here? Are we willing to give up 150 channels of crap, hundreds of varieties of the same T-shirts or jeans, or other petty 'choices' for real ones, like our votes, our jobs, our lands, our schools and our hospitals?
And how do we pressure our elected corporatists of which ever ilk to GET REAL? Vote the bums out.
I'm not really sure how to reply, because I agree almost entirely with what you're saying. My real battle is with liberals, not Democrats, since I'm not actually a Republican, and I agree there are a bunch of new-suit, combed-hair bums in our government on both sides of the political aisle.
There are a couple of things you're talking about that, in my opinion, could CAUSE more problems than they SOLVE, but we've been over them before. (Except for the raise in minimum wage; since I make minimum wage, I myself am glad to see it go up, but I do know it causes more problems than it solves.)
I would love it if this nation could stand undivided for what is right, but we all unfortunately have our own opinions of what is right, as well. I have never read the Constitution or the Bill of Rights, but I just today realized, if I'm going to form an argument about what this country should and shouldn't do, that's the source I need to draw upon.
Party platforms are as bad as church doctrines, and the far-rights and the far-lefts could both use a good slap upside the head as far as I'm concerned. I'd rather leave the argument over whether Dems or Reps are better behind and stick to the core issues that keep divided.
I know I'm never going to change anyone's mind on anything, but this is America; if I don't want to be walked all over, then by golly I'm going to get up and say so!
No music, but for the repubs to scream 'big taxes' is more than a little of 'the pot calling the kettle black' after the last couple of decades.
Until WE vote the bums out, and tell them to RE-regulate the banking/financial industry, start REFUSING TO BUY anything but absolute necessities, force Congress to reform campaign finance in a SERIOUS way, demand unions & jobs at home, CLOSE THE CORPORATE TAX loopholes, KICK the LOBBYISTS out of K Street, demand health care, education and a dignified retirement (- all of which ALL other industrialized nations ALREADY have - and NO we are NOT the ONLY western democracy and we do NOT have the 'highest standard of living' so please leave the xenophobic 'we're the BEST IN THE WORLD' propogandistic pablum out of this) I'll vote for the Democrats, who at least still have the sense that we are ALL in this together, not just the top 2% ...
Uh-huh ... so you're saying it'd be best to shift "wings," but keep up the same trend?
Music - please note that the major corporations of which you are speaking have ALREADY done exactly what you are detailing, as well as moving offshore so that they don't HAVE to pay US taxes everytime they get the chance.
Also, we are ALREADY paying higher taxes, have a GIGANTIC deficit, a multi-TRILLION dollar budget and the largest increase in governmental spending in decades, all courtesy of the GOP over the last 28 years- the Democrats have ONLY had a SLIM (not veto-proof) majority for the last 18 months.
jl32320, I agree Obama has focused more on telling the middle class he's with them, but it was John McCain who tried to tell the country two years ago that Fannie Mae and Freddie Mac were going to be a serious problem. Obviously, no one listened, Republican or Democrat alike.
I sympathize with everyone who says greedy companies are stealing the wealth of America, because when I look at my minimum wage paycheck compared to the millions Frank Raines and Jim Johnson are getting for LOOSING their jobs, I'm a little put out.
But then we have to sit down and think about this, if Obama does increase taxes on larger companies to decrease our taxes, what kind of reaction is the company going to have? Are they going to shell out more and more money to the government and keep up business as usual? I don't think I would. I think what's most likely to happen is people getting laid off and others being overworked and underpaid to make up the difference. Then you'll of course have the companies that completely move out of the country to escape the taxes, leaving behind all American workers.
I guess that's one way for people to pay lower taxes, if no one makes any income they don't have to pay any of their nonexistent money to the government. But what a sorry state the U.S. would be in then.
I don't support granting privileges to big companies over regular people, but please don't destroy our SOURCE of income!
This is just my opinion and what I have observed in the local news and what I have read. It seems to me that McCain is more concerned with the big companies and the banks and the effect and overall outcome when it comes to this financial crisis. He seems more concerned with "big companies" pocketbook rather than ours. Obama actually seems to have legitimate concern with the middle class Americans that are affected with this crisis. I think it's important middle class people are protected, we need help and support too!!
Lots of good Liberal info pops! J/K. I like the blog so I'll be back to read more, great job!!!
Okay, to start off, the "90 percent of the time" stat is about worn out by now, but I'll give. Of course you will need to be more specific in the fact that while McCain has VOTED about 90 percent of the time with the Bush stuff, his SUPPORT of the President has fallen as low as 77 percent. Also, his support of what the Republican party itself has done has fallen as low as 67 percent; whereas Obama has stood with his party in the senate 97 percent of the time. Which in you're opinion was doing what he felt was right despite what his party told him? Oh, I forgot, the Democrats are ALWAYS right!
If you don't believe me, go to http://www.factcheck.org/askfactcheck/is...
So Chris Dodd can't prosecute; my apologies, I'm kind of new in the political game. But seriously, does that mean the truth is irrelevant? It seems to parallel the anti-oil argument, just because it won't solve every problem man has ever faced means it's not worth getting up off our bureaucratic butts to do. Of course the fact that you've taken the most amount of money from the mortgage lenders over the last 20 years really wouldn't influence your Democratic duty the way it would a fat Republican, now would it? Or would it? As of yet I don't see either party doing jack schnitzel.
Like I posted before, "It took members of both parties to get America into this mess, and it will take all of us, working together, to lead the way out." And that's going to take someone who's not just going to stand with his party 97 percent of the time, if you ask me.
McCain has kept the same economic plan; correct. He supports Bush policies over 90% of the time. He wants to keep the corporate tax breaks permanent and expand tax credits for major oil companies. I suggest that contining the failed policies of the past will not change/transform our economy. It should also be pointed out that for six of the last eight years the Republican Party controlled the White House, US Senate, US House of Representatives; deregulation was pushed through that have resulted in the current situation. Phil Graham was the author of the bills that became law. You mentioned 'government regulations are certainly NOT going to solve anythinng' and Sen McCain has always been for less regulation..... but now calls for more regulation?
"...The guy leading the board who SHOULD be investigating and prosecuting is Chris Dodd..."; actually Senator Dodd could have his committee do some investigating; but the bottom line is he (or any legislator) have no prosecutorial powers. Those duties are handled by the judicial branch of our government, not the legislative. Let's wait and see if the Bush White House orders the Justice Department to begin proceedings into this matter.
Alan Greenspan endorsed McCain for president; while he has not withdrawn that endorsement, he says the McCain tax plan is not workable. Greenspan has been praised as one of the top economic experts by both parties.
Update: One day after saying he would fire the SEC director Chris Cox (even though that is not within presidential authority); today he modified his comment,saying "I believe the chairman of the FEC should resign and leave office immediately." I am not sure how the resignation of the Federal Election Commission Chair will help or even impact our economy.
Palin/McCain 'can Adjust this country back to the track of greatness"; we don't need an adjustment, we need new idea's, new leadership and a new beginning.
Just a couple more thoughts I had:
Two years ago, John McCain wanted to reform the corruption within Fannie and Freddie, but congress wouldn't hear it and Bush's administration wouldn't do anything about it (by the way, that's a Democratic congress and a Republican administration).
As McCain said in his speech, "It took members of both parties to get America into this mess, and it will take all of us, working together, to lead the way out."
I'm sure everyone who reads these blogs and things think I'm a hard-right Republican for some of the things I've said and my support for McCain. Truth is, I'm more of an independent centrist who lean conservative because of my upbringing. I have no shame in saying Bush has made a mockery of the presidency, but I truly believe John McCain and Sarah Palin can adjust this country back to the track of greatness.
Ron, I was browsing through the stuff on this site, not really in the mood to comment, but I think a few things need to be said here. I'd love to go through and correct every twist you've put with these statements, but I don't have time.
Okay, maybe I'll do it anyway.
On the AIG "flip-flop," this is what McCain said: "On the bailout itself, I didn't want to do that, but there were literally millions of people whose retirement, whose investments, whose insurance were at risk here, and they were going to have their lives destroyed because of the greed and excess and corruption." So this is practically saying, "I don't want to bail them out, but I don't want to be responsible for millions of destroyed lives, either." I wouldn't want to be the guy who let all those people's money get sucked down the corrupted economic drain. Would you?
On the fact that Merrill Lynch and employees are top contributors to McCain campaign, I have to agree there could very well be some ulterior motive, but then you in turn have to realize Barack Obama has taken more money offered by Fannie Mae and Freddie Fat in the last four years than anyone else ANYWHERE. Over the last 20 years he was number two on the list, with Chris Dodd at the head. Does this sit well with you?
The top men (really anyone with a say) in the Fannie and Freddie failure need to serve long, hard jail time for their blatant crimes; but, of course, the guy leading the board who SHOULD be investigating and prosecuting is Chris Dodd. Have you seriously convinced yourself every Republican anywhere is headed toward corruption and every Democrat is honest and clean?
On Greenspan's comment, it has been proven time and again that cutting taxes brings in MORE revenue, because people aren't going Martha Stewart and Wesley Snipes. When people don't have to pay as much, more people will actually PAY. This is not an opinion, any economist will tell you it's true. This is something Obama doesn't understand (or he would rather we didn't understand) just to give the impression he's helping out us "working-class" people.
This recession is becoming alarmingly "physical," and while government regulations are certainly NOT going to solve anything, the companies need the backbone to deny loans and such to people who don't deserve them or won't pay them back. (Plus, the whole "certificate-for-a-loan" thing goes back to the Clinton Administration).
Check out this link for McCain vs. Obama economic plan analysis: http://www.daniweb.com/blogs/entry3117.h...
It should also be noted that while McCain has kept the same economic plan from the beginning, Obama has changed his like four times in the last four months, and each time it looks closer to McCain's than the one before. What does this tell you about Obama's economic knowledge?
I didn't get Karl Rove joke (if it was a joke; either way it was over my head). And by the way Ron, I think people a pretty much tired of hearing about the "pig & lipstick" remark, Democrat and Republican alike.
Wow, this post is a lot longer than I though it'd be.