Isn’t it nice to be a big financial firm? Bear Stearns Cos., one of Wall Street's oldest banking firms, has received a bailout from the federal government and JPMorgan Chase & Co. Bear Stearns, the nation's fifth-largest investment bank, made its fortune dealing in opaque mortgage-backed securities - a strategy that might be its undoing amid the worst housing slump in a quarter century. The bank has racked up $2.75 billion in write-downs since last year, and faced a possible collapse without some kind of lifeline. This was reported today in a lead AP story http://apnews.excite.com/article/20080314/D8VD9NG80.html.
Meanwhile the Los Angeles Times reported today that the Region has seen a 19% decline in housing prices from the peak in less than a year. http://www.latimes.com/news/printedition/front/la-fi-homes14mar14,1,7243732.story. In my own neighborhood homes are selling so poorly that asking prices have already dropped more than 25%. There is little help to bail out homeowners who bought their homes in the past few years by taking advantage of adjustable rate mortgages.
When you consider the paltry help to private individuals compared to aid the big corporations receive is it any wonder that the public yearns for new government leadership? It’s what we all knew in our hearts. The government protects the rich and to hell with the rest of you.
Friday, March 14, 2008
Wednesday, March 5, 2008
A California Attack on the Poor
California’s Proposition 98 (California Property Owners and Farmland Protection Act) and Proposition 99 (Homeowners and Private Property Protection Act) have misleading titles. Both are about preventing government from redeveloping blighted areas where the property will be returned to private ownership. In other words community redevelopment agencies would be eliminated because no redevelopment would be permitted. Slums could go on existing indefinitely.
Proposition 98 goes one step further by eliminating rent controls on apartments and mobile home parks. Apartment owners associations and mobile home park associations couldn’t be happier. The consequence of that will be the dislocation of the poorest in our society.
The ongoing issue of affordable housing in Los Angeles has been well documented. Proposition 98 would allow legalized unreasonable rent hikes on those least able to pay. That includes the poor and the elderly. Mobile home parks are commonly occupied by the elderly as a form of low cost housing. Most of those living in those parks are on social security and have little in the way of additional forms of income.
Who is supporting Proposition 98? The primary contributors are mobile home park owners and apartment associations. The information is listed on the California Secretary of State’s web site.
Who is supporting Proposition 99? The California League Of Conservation Voters http://www.ecovote.org/. This organization says its mission is “to protect the environmental quality of the state by increasing public awareness of the environmental performance of all elected officials, working to elect environmentally responsible candidates, and holding them accountable to the environmental agenda once elected.” What’s the connection between this conservation group and Proposition 99? They do not say on their web site. When I telephones them to ask about their support for this imitative I told someone will be calling me back later in the week. They are the only group that has donating money to support this issue. The state says they have donated $300,000.00.
This website, http://rentersrights.blogspot.com/, is a good place to start in fighting these two laws.
Proposition 98 goes one step further by eliminating rent controls on apartments and mobile home parks. Apartment owners associations and mobile home park associations couldn’t be happier. The consequence of that will be the dislocation of the poorest in our society.
The ongoing issue of affordable housing in Los Angeles has been well documented. Proposition 98 would allow legalized unreasonable rent hikes on those least able to pay. That includes the poor and the elderly. Mobile home parks are commonly occupied by the elderly as a form of low cost housing. Most of those living in those parks are on social security and have little in the way of additional forms of income.
Who is supporting Proposition 98? The primary contributors are mobile home park owners and apartment associations. The information is listed on the California Secretary of State’s web site.
Who is supporting Proposition 99? The California League Of Conservation Voters http://www.ecovote.org/. This organization says its mission is “to protect the environmental quality of the state by increasing public awareness of the environmental performance of all elected officials, working to elect environmentally responsible candidates, and holding them accountable to the environmental agenda once elected.” What’s the connection between this conservation group and Proposition 99? They do not say on their web site. When I telephones them to ask about their support for this imitative I told someone will be calling me back later in the week. They are the only group that has donating money to support this issue. The state says they have donated $300,000.00.
This website, http://rentersrights.blogspot.com/, is a good place to start in fighting these two laws.
Thursday, February 21, 2008
Star Wars Has Started
It was reported by the Washington Post on January 19, 2007 that China had “used a ground-based missile to hit and destroy one of its aging satellites orbiting more than 500 miles in space… The test of anti-satellite technology is believed to be the first of its kind in two decades by any nation and raised concerns about the vulnerability of U.S. satellites and a possible arms race in space.”
Now, just 13 months later the United States has shot down an aging spy satellite we had put into space. The stated reason we shot down this satellite was because there was concern that there could be harm brought to people living in the area of that crashing projectile.
Honestly, I do not believe this scenario. The U.S. probably did shoot down a satellite but the reason this was done was to send a message to China. That message is we too have the capability of shooting down satellites.
The Washington Post article went on to say, “The Rep. Edward J. Markey (D-Mass.) said the Chinese action makes it essential that the administration begin negotiations to stop any possible space arms race. "The Chinese anti-satellite test is terrible news for international stability and security, and could presage the dawn of a new arms race -- this time in space," Markey said. "American satellites are the soft underbelly of our national security, and it is urgent that President Bush move to guarantee their protection by initiating an international agreement to ban the development, testing, and deployment of space weapons and anti-satellite systems."
Is this an opportunity for John McCain to bring up the topic of national defense and the need to have someone of his experience in the White House? Absolutely. He just might do that. Then again may be he is wise enough to not scare the American population. In any case, star wars is here.
Now, just 13 months later the United States has shot down an aging spy satellite we had put into space. The stated reason we shot down this satellite was because there was concern that there could be harm brought to people living in the area of that crashing projectile.
Honestly, I do not believe this scenario. The U.S. probably did shoot down a satellite but the reason this was done was to send a message to China. That message is we too have the capability of shooting down satellites.
The Washington Post article went on to say, “The Rep. Edward J. Markey (D-Mass.) said the Chinese action makes it essential that the administration begin negotiations to stop any possible space arms race. "The Chinese anti-satellite test is terrible news for international stability and security, and could presage the dawn of a new arms race -- this time in space," Markey said. "American satellites are the soft underbelly of our national security, and it is urgent that President Bush move to guarantee their protection by initiating an international agreement to ban the development, testing, and deployment of space weapons and anti-satellite systems."
Is this an opportunity for John McCain to bring up the topic of national defense and the need to have someone of his experience in the White House? Absolutely. He just might do that. Then again may be he is wise enough to not scare the American population. In any case, star wars is here.
Monday, February 18, 2008
Balkanizing America
Kosovo has declared itself an independent nation. This has been a Serbian province for centuries. However more than 90% of Kosovo's population of two million people are ethnic Albanian. Their faith is Muslim. The remaining Serbian population of 6 ½ million people is Christian. The hatred between Christians and Muslins resulted in the Balkan War in the late 1990s. Ultimately there was bombing by NATO in 1999 to stop the fighting between the two groups.
Within hours of the declaration, Russia called an emergency meeting of the U.N. Security Council for later on Sunday and said it would ask it to declare Kosovo's claim to independence "null and void" -- a request that was unlikely to succeed as the U.S., France and Britain all have vetoes in the Security Council and support Kosovo's independence bid.
Meanwhile in the U.S.A. the Latino population, which is primarily Mexican, has been growing for decades. In 1970, California's 2.4 million Latinos represented less than one-eighth of the state's total population. The 7.5 million Latinos counted in the 1990 census represented a quarter of California's residents. By 2005, more than a third of all Californians were projected to be Latino. The city of Los Angeles is now 40% Latino.
Could the Latino population in the southern part of United States decide that they want to succeed and form their own nation or perhaps reunite with Mexico? This is not as far fetched as you might think. The primary Latino groups deny that they support any idea of separation from our country according to their web sites. Those groups are National Council of La Raza (NCLR), MEChA (Movimiento Estudiantil Chicano de Aztlán or Chicano Student Movement of Aztlán), NCLR claims it does not support “Reconquista”, returning the southern USA to Mexico. They acknowledge that the accusation does exist. They could change their position on this subject in an instant.
Would the United States go to war to stop a succession? The answer is yes! The Civil War defined the view that this nation is indivisible. Why then is it acceptable for Kosovo to separate from Serbia? I wish I knew the answer.
Within hours of the declaration, Russia called an emergency meeting of the U.N. Security Council for later on Sunday and said it would ask it to declare Kosovo's claim to independence "null and void" -- a request that was unlikely to succeed as the U.S., France and Britain all have vetoes in the Security Council and support Kosovo's independence bid.
Meanwhile in the U.S.A. the Latino population, which is primarily Mexican, has been growing for decades. In 1970, California's 2.4 million Latinos represented less than one-eighth of the state's total population. The 7.5 million Latinos counted in the 1990 census represented a quarter of California's residents. By 2005, more than a third of all Californians were projected to be Latino. The city of Los Angeles is now 40% Latino.
Could the Latino population in the southern part of United States decide that they want to succeed and form their own nation or perhaps reunite with Mexico? This is not as far fetched as you might think. The primary Latino groups deny that they support any idea of separation from our country according to their web sites. Those groups are National Council of La Raza (NCLR), MEChA (Movimiento Estudiantil Chicano de Aztlán or Chicano Student Movement of Aztlán), NCLR claims it does not support “Reconquista”, returning the southern USA to Mexico. They acknowledge that the accusation does exist. They could change their position on this subject in an instant.
Would the United States go to war to stop a succession? The answer is yes! The Civil War defined the view that this nation is indivisible. Why then is it acceptable for Kosovo to separate from Serbia? I wish I knew the answer.
Thursday, February 7, 2008
Is This Government Rebate a Good Idea?
Congress has voted to add $168 billion to the deficit over the next two years. It’s for an economic aid plan because of a perceived recession. I know, there is an election coming in November. Neither political party wants to be accused of not caring about the citizens. The problem is that the Federal government has no excess money. The national debt now exceeds $9 trillion. In 2000 that number was $5.6 trillion. My source is the Office of the President http://www.gpoaccess.gov/usbudget/fy01/guide04.html.
We will have to borrow the $168 billion dollars that will be given to the citizens. It’s not all rebates because the final plan will give money to retired people on social security and disabled veterans. We have not paid for the Iraq War or the various earmark spending projects passed by Congress and signed into law. John McCain avoided voting for or against this give away by not returning to Washington, D.C. He was correct in not voting for tax reductions that lacked compensating reductions in spending.
The real sorry part of this story is that many people will not be spending that money on anything new. Most of us will be receiving only $600 or $1,200. Many people, like me, will be using the money to pay prior existing bills.
Furthermore, inflation is a real. I believe it is much worse than the reported CPI inflation index. The most flagrant proof is the cost of a Thanksgiving dinner for ten people that rose by 11% between 2006 and 2007.
As the government floods the nation with more cash, the Federal Reserve is now starting to say inflation may be the next big issue. That translates to no more interest rate cuts and perhaps an interest increase. Yikes, they just lowered the interest rate. Does anyone know what they are doing?
We will have to borrow the $168 billion dollars that will be given to the citizens. It’s not all rebates because the final plan will give money to retired people on social security and disabled veterans. We have not paid for the Iraq War or the various earmark spending projects passed by Congress and signed into law. John McCain avoided voting for or against this give away by not returning to Washington, D.C. He was correct in not voting for tax reductions that lacked compensating reductions in spending.
The real sorry part of this story is that many people will not be spending that money on anything new. Most of us will be receiving only $600 or $1,200. Many people, like me, will be using the money to pay prior existing bills.
Furthermore, inflation is a real. I believe it is much worse than the reported CPI inflation index. The most flagrant proof is the cost of a Thanksgiving dinner for ten people that rose by 11% between 2006 and 2007.
As the government floods the nation with more cash, the Federal Reserve is now starting to say inflation may be the next big issue. That translates to no more interest rate cuts and perhaps an interest increase. Yikes, they just lowered the interest rate. Does anyone know what they are doing?
Tuesday, January 22, 2008
Government Inertia
That the economy was going south should not have come as a surprise. Talk of the impact of the sub-prime mortgage market has been in play for at least a year. I too did not believe that this mortgage mess would have such a staggering effect on the entire economy. However, I am not an economist. Ben Bernanke is and his Federal Reserve Board should have been able to evaluate the impact. Where were the financial gurus? As recently as July 5, 2007 Bob Brinker, the leading writer of financial newsletters, was writing that he foresaw a bright future for the stock market.
Now that the nation is in this mess I expected a quick acting congress would inject money into the economy within one or two months. Instead the reports are indicating that tax rebate checks to stimulate the economy will be arriving sometime in May. That is five month from now. That is too far in the future.
The Democrats and Republicans run the government and both are failing. The evidence is obvious to me. It’s Katrina, it’s reacting to a recession, it’s protecting our nation from a terrorist invasion, and most of all it’s about making our government effective.
If there was ever a time when we needed an independent that could rise above the fray, now is the time. I don’t know if that person is Michael Bloomberg or another independent. In my view we definitely need new leadership.
Now that the nation is in this mess I expected a quick acting congress would inject money into the economy within one or two months. Instead the reports are indicating that tax rebate checks to stimulate the economy will be arriving sometime in May. That is five month from now. That is too far in the future.
The Democrats and Republicans run the government and both are failing. The evidence is obvious to me. It’s Katrina, it’s reacting to a recession, it’s protecting our nation from a terrorist invasion, and most of all it’s about making our government effective.
If there was ever a time when we needed an independent that could rise above the fray, now is the time. I don’t know if that person is Michael Bloomberg or another independent. In my view we definitely need new leadership.
Thursday, January 10, 2008
CPI, Can We Believe This?
After posting this commentary on Thursday, January 10, the Associated Press publishes this article on January 16. The newly reported inflation rate is still not accurate but the trend is obvious. http://apnews.excite.com/article/20080116/D8U737180.html
Forget Core Inflation. That was an idea created by Alan Greenspan. He was wrong. The core inflation measurement ignored all the things we need to live like food and energy.
“The Consumer Price Indexes(CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services”। That is quoted from the U.S. Department of Labor that manages this program.
Forget Core Inflation. That was an idea created by Alan Greenspan. He was wrong. The core inflation measurement ignored all the things we need to live like food and energy.
“The Consumer Price Indexes(CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services”। That is quoted from the U.S. Department of Labor that manages this program.
We really need a measurement that is reliable. I just can’t believe that the current CPI is accurate. There have been articles posted on the internet that do challenge the CPI accuracy. My own views and experiences are the bases for this opinion.
Here is four items that support my opinion.
- Thanksgiving dinners for a family of 10 were reported in the news to cost 11% more in 2007 than 2006.
-Gasoline nationwide has increased in price from $2.14 to $3.10 per gallon during the past 12 months. That is a 44.8% increase.
- Cavaretta’s is a local Italian deli that makes fabulous sandwiches. The 2007 price for their small subway style chicken sandwich was $4.50. This year the price is $5.25. A dismaying 16.7% increase.
- The price for milk at my neighborhood Trader Joe’s (actually over 1½ miles away) increased by 33%.। We buy milk there because it’s about 60% of the prices charged at the local supermarket (about ½ mile from my home).
Will the government become more accurate if there were a change in political parties? No. We all know that the information has been managed because the politicians don’t want to admit the truth.
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