Sounds reasonable to me-Lou
Measure Would Require Bailed-Out CEOs to Pay Taxpayers Back for Big Bonuses
The amendment to the stimulus bill would require the companies to repay within four months any portion of the bonus above $100,000 or face an excise tax
WASHINGTON -- Financial institutions that received federal bailout money and paid large executive bonuses would be required to compensate taxpayers under the economic stimulus bill approved by the Senate.
The $838 billion measure includes an amendment penalizing companies that paid bonuses greater than $100,000 to executives after receiving government rescue funds last year. The amendment would require the companies to repay within four months any portion of the bonus above $100,000 or face an excise tax of 35 percent on the portion of the bonus above $100,000.
Read Article Here:
http://www.foxnews.com/politics/2009/02/10/measure-require-bailed-ceos-pay-taxpayers-big-bonuses/
Wednesday, February 11, 2009
The Day The Financial World Almost Imploded
The financial system came very close to irreversable implosion one day last September. This is pretty scary stuff. I'm surprised this information took so long to surface. You can skip ahead to 2 minutes-Lou
At 2 minutes, 20 seconds into this C-Span video clip, Rep. Paul Kanjorski of Pennsylvania explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occured over the period of an hour or two.
Watch Video Here:
http://www.liveleak.com/view?i=ca2_1234032281
At 2 minutes, 20 seconds into this C-Span video clip, Rep. Paul Kanjorski of Pennsylvania explains how the Federal Reserve told Congress members about a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occured over the period of an hour or two.
Watch Video Here:
http://www.liveleak.com/view?i=ca2_1234032281
Tuesday, February 10, 2009
Geithner Unveils Revised Bank Plan
There was very little in specifics detailed in this plan. Looks like they are making this up on the fly. The stock market tanked on the news. Then later in the day Ben Bernanke testified in front of Congress and the stock market fell another 150 points. Doesn't give me much confidence.-Lou
Geithner Unveils Revised Bank Plan
Treasury Secretary Timothy Geithner on Feb. 10 laid out details of the Obama Administration's revised bank rescue plan. It includes a program to purchase up to $500 billion in toxic assets on bank balance sheets and up to $1 trillion to support consumer and small business lending.
Geithner, promised "comprehensive and forceful" policy involving a wide range of federal agencies. Addressing a major criticism of previous spending from the $700 billion Troubled Asset Relief Program, or TARP, he promised to impose "higher standards for transparency and accountability." The government has about $350 billion left in the TARP to be deployed.
Read Article Here:
Ruin Your Health With the Obama Stimulus Plan
As I wrote yesterday in my article, "The Scatigna Stimulus Act of 2009", I said the devil is in the details. Read this article in it's entirety. The government is attempting to take over health care without debate and without public scrutiny. Look what's buried in the stimulus bill. Older people should be very scared. This is why this is being rushed under the mantra of "If we don't move now there will be financial catastrophe". There will be no way to turn things back after this bill is approved, the path to socialism will be secured.-Lou
Ruin Your Health With the Obama Stimulus Plan
Feb. 9 (Bloomberg)
....He praises Europeans for being more willing to accept “hopeless diagnoses” and “forgo experimental treatments,” and he chastises Americans for expecting too much from the health-care system.
Elderly Hardest Hit
Daschle says health-care reform “will not be pain free.” Seniors should be more accepting of the conditions that come with age instead of treating them. That means the elderly will bear the brunt.
Medicare now pays for treatments deemed safe and effective. The stimulus bill would change that and apply a cost- effectiveness standard set by the Federal Council (464).
The Federal Council is modeled after a U.K. board discussed in Daschle’s book. This board approves or rejects treatments using a formula that divides the cost of the treatment by the number of years the patient is likely to benefit. Treatments for younger patients are more often approved than treatments for diseases that affect the elderly, such as osteoporosis.
In 2006, a U.K. health board decreed that elderly patients with macular degeneration had to wait until they went blind in one eye before they could get a costly new drug to save the other eye. It took almost three years of public protests before the board reversed its decision.
Read Article Here:
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mccaughey&sid=aLzfDxfbwhzs
Ruin Your Health With the Obama Stimulus Plan
Feb. 9 (Bloomberg)
....He praises Europeans for being more willing to accept “hopeless diagnoses” and “forgo experimental treatments,” and he chastises Americans for expecting too much from the health-care system.
Elderly Hardest Hit
Daschle says health-care reform “will not be pain free.” Seniors should be more accepting of the conditions that come with age instead of treating them. That means the elderly will bear the brunt.
Medicare now pays for treatments deemed safe and effective. The stimulus bill would change that and apply a cost- effectiveness standard set by the Federal Council (464).
The Federal Council is modeled after a U.K. board discussed in Daschle’s book. This board approves or rejects treatments using a formula that divides the cost of the treatment by the number of years the patient is likely to benefit. Treatments for younger patients are more often approved than treatments for diseases that affect the elderly, such as osteoporosis.
In 2006, a U.K. health board decreed that elderly patients with macular degeneration had to wait until they went blind in one eye before they could get a costly new drug to save the other eye. It took almost three years of public protests before the board reversed its decision.
Read Article Here:
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mccaughey&sid=aLzfDxfbwhzs
Monday, February 9, 2009
"The Financial Physician" Radio Show Now Available
Listen to this past Sunday's "The Financial Physician" radio program.
Listen Here: http://wobmam.com/personalities_lou_scatigna.html
A Stimulus Plan That Would Actually Work
The Scatigna Stimulus Act of 2009
By Lou Scatigna
The phone book size "stimulus bill" being contentiously debated in Congress is nothing more than a pork laden, non-job creating, gift to Democratic benefactors.
During the usual appropriations process, spending offsets or revenue increases are required for new spending programs. These restrictions have put limits on congressional spending and makes it more difficult to fund pet projects.
Since the bill being crafted now is an emergency appropriation, there is no restriction to offset spending with cuts elsewhere or increased revenue. This has resulted in the insertion of every spending measure that Democrats have been wanting to enact for years. To be fair, if the shoe were on the other foot and Republicans had total control of Congress they would have enacted all kinds of tax cuts and their pet projects, that is the way of Washington politics.
Is is disturbing that Congressional Democrats and the Obama Administration are pushing for passage of an almost trillion dollar spending bill with the support of what looks like only three Republicans. The bipartisan Congressional Budget Office has said that over time the bill as it is currently crafted will do more harm than good. The fact that the President is saying that the economy will experience a "catastrophe" if this bill is not approved this week should only add to the public's suspicion. To be sure, the devil is in the details and advocates want this bill passed before the public can learn what they are.
If Congress and the Administration really want to stabilize the economy and create jobs, they must not waste money on things that will either have the opposite effect or no effect at all.
It is time for Congress tear up the current bill and enact the "Scatigna Stimulus Act of 2009". My bill is quite simple and would be effective in creating jobs, improving infrastructure and strengthening the social safety net. It would even have a small environmental benefit as it would only be about 50 pages instead of the current 647 page document.
There would only be 4 areas where money would be spent. I would divide the $800 billion equally amongst all four.
1. Stabilization of the Housing Market
The decline in home values is the major cause of the financial crisis and until housing prices stabilize the economy will continue to contract. A combination of buyer incentives (tax credits and low interest fixed rate, government guaranteed mortages), loan modifications for existing mortgages (coversion to 4%, 40 yr fixed with principle reduced to current market value ) and the halt to all foreclosures would work quickly. These actions coupled with the Treasury's proper use of the remaining $350 billion of TARP funds would help stabilize the banking system.
2. Infrastructure Projects
Thousands of roads and bridges are in desperate need of repair or replacement. The electrical grid must be modernized and expanded. By allocating a quarter of the spending bill to these infrastructure projects not only will we be able to provide a large number of jobs, we would actually have something of long-term benefit to show for it.
3. Tax Cuts For Individuals and Buisnesses
Tax cuts have historically spurred economic growth by giving companies incentive to expand and hire. A cut in corporate tax rates, tax credits for hiring and capital improvements would have an immediate stimulative effect. Individuals who actually work and pay taxes would have their tax rate reduced by at least one third. The extra take-home income would find it's way into the retail economy and lend support to the failing commercial real estate market.
4. Social Safety Net
Many families are hurting as a result of the current economic crisis. It is the government's responsibilty to provide assistance during these difficult times. A quarter of the spending bill should be used to extend unemployment benefits, increase food stamps, assist states with growing welfare obligations and provide health care assistance to those without insurance.
I'm sure the "Scatigna Stimulus Act of 2009" would actually achieve the goals of economic stabilization, job creation and social support. My plan would not be a reward for lobbyists or payback to campaign contributors, that's why it would never be enacted.
By Lou Scatigna
The phone book size "stimulus bill" being contentiously debated in Congress is nothing more than a pork laden, non-job creating, gift to Democratic benefactors.
During the usual appropriations process, spending offsets or revenue increases are required for new spending programs. These restrictions have put limits on congressional spending and makes it more difficult to fund pet projects.
Since the bill being crafted now is an emergency appropriation, there is no restriction to offset spending with cuts elsewhere or increased revenue. This has resulted in the insertion of every spending measure that Democrats have been wanting to enact for years. To be fair, if the shoe were on the other foot and Republicans had total control of Congress they would have enacted all kinds of tax cuts and their pet projects, that is the way of Washington politics.
Is is disturbing that Congressional Democrats and the Obama Administration are pushing for passage of an almost trillion dollar spending bill with the support of what looks like only three Republicans. The bipartisan Congressional Budget Office has said that over time the bill as it is currently crafted will do more harm than good. The fact that the President is saying that the economy will experience a "catastrophe" if this bill is not approved this week should only add to the public's suspicion. To be sure, the devil is in the details and advocates want this bill passed before the public can learn what they are.
If Congress and the Administration really want to stabilize the economy and create jobs, they must not waste money on things that will either have the opposite effect or no effect at all.
It is time for Congress tear up the current bill and enact the "Scatigna Stimulus Act of 2009". My bill is quite simple and would be effective in creating jobs, improving infrastructure and strengthening the social safety net. It would even have a small environmental benefit as it would only be about 50 pages instead of the current 647 page document.
There would only be 4 areas where money would be spent. I would divide the $800 billion equally amongst all four.
1. Stabilization of the Housing Market
The decline in home values is the major cause of the financial crisis and until housing prices stabilize the economy will continue to contract. A combination of buyer incentives (tax credits and low interest fixed rate, government guaranteed mortages), loan modifications for existing mortgages (coversion to 4%, 40 yr fixed with principle reduced to current market value ) and the halt to all foreclosures would work quickly. These actions coupled with the Treasury's proper use of the remaining $350 billion of TARP funds would help stabilize the banking system.
2. Infrastructure Projects
Thousands of roads and bridges are in desperate need of repair or replacement. The electrical grid must be modernized and expanded. By allocating a quarter of the spending bill to these infrastructure projects not only will we be able to provide a large number of jobs, we would actually have something of long-term benefit to show for it.
3. Tax Cuts For Individuals and Buisnesses
Tax cuts have historically spurred economic growth by giving companies incentive to expand and hire. A cut in corporate tax rates, tax credits for hiring and capital improvements would have an immediate stimulative effect. Individuals who actually work and pay taxes would have their tax rate reduced by at least one third. The extra take-home income would find it's way into the retail economy and lend support to the failing commercial real estate market.
4. Social Safety Net
Many families are hurting as a result of the current economic crisis. It is the government's responsibilty to provide assistance during these difficult times. A quarter of the spending bill should be used to extend unemployment benefits, increase food stamps, assist states with growing welfare obligations and provide health care assistance to those without insurance.
I'm sure the "Scatigna Stimulus Act of 2009" would actually achieve the goals of economic stabilization, job creation and social support. My plan would not be a reward for lobbyists or payback to campaign contributors, that's why it would never be enacted.
Job Losses Intensify
click on chart to enlargeThis chart illustrates what the loss of 3.6 million jobs over 18 months looks like.-Lou
This chart compares the job loss so far in this recession to job losses in the 1990-1991 recession and the 2001 recession – showing how dramatic and unprecedented the job loss over the last 13 months has been.
By comparison, we lost a total of 1.6 million jobs in the 1990-1991 recession, before the economy began turning around and jobs began increasing; and we lost a total of 2.7 million jobs in the 2001 recession, before the economy began turning around and jobs began increasing.
Source:
http://globaleconomicanalysis.blogspot.com/2009/02/employment-cycles-during-recessions.html
Ray Dalio: A Long and Painful Depression
This guy is one of the few that actually made money for his investors last year, up about 9%. I pretty much agree with his expectations including that later this year the US stock market will be the buy of the century (how about some optimism from me for a change).-Lou
Ray Dalio: A Long and Painful Depression
Here are some of Dalio's key thoughts:
This is no recession - it's a "D-process." (Dalio wants people to understand it's a process, not a phenomenon.) "Now you can ask yourself, OK, when was the last time bank stocks went down so much? When was the last time the balance sheet of the Federal Reserve, or any central bank, exploded like it has? When was the last time interest rates went to zero, essentially, making monetary policy as we know it ineffective? When was the last time we had deflation?" Essentially, when incomes aren't enough to service unmanageable debt, the reversal process begins.
Today is very similar to the '30s. "In the bear market from 1929 to the bottom, stocks declined 89%, with six rallies of returns of more than 20% - and most of them produced renewed optimism. But what happened was that the economy continued to weaken with the debt problem."
Read Article Here:
http://seekingalpha.com/article/119250-ray-dalio-a-long-and-painful-depression-barron-s-interview?source=article_sb_popular
Ray Dalio: A Long and Painful Depression
Here are some of Dalio's key thoughts:
This is no recession - it's a "D-process." (Dalio wants people to understand it's a process, not a phenomenon.) "Now you can ask yourself, OK, when was the last time bank stocks went down so much? When was the last time the balance sheet of the Federal Reserve, or any central bank, exploded like it has? When was the last time interest rates went to zero, essentially, making monetary policy as we know it ineffective? When was the last time we had deflation?" Essentially, when incomes aren't enough to service unmanageable debt, the reversal process begins.
Today is very similar to the '30s. "In the bear market from 1929 to the bottom, stocks declined 89%, with six rallies of returns of more than 20% - and most of them produced renewed optimism. But what happened was that the economy continued to weaken with the debt problem."
Read Article Here:
http://seekingalpha.com/article/119250-ray-dalio-a-long-and-painful-depression-barron-s-interview?source=article_sb_popular
Sunday, February 8, 2009
Jackie Mason On Stimulus Package
I always loved Jackie Mason. This video is funny but true.-Lou
Watch Video Here:
Late Payments on US Credit Cards Reach Record High Levels
This is not surprising. Credit card companies are watching cardholders very closely. If they see your credit rating drop, they will cut your credit line . They are also cancelling cards that are currently inactive. These actions effectively cut off the only lifeline for many families.-LouLate Payments on US Credit Cards Reach Record High Levels
Growing signs of trouble in the credit card debt sector are documented in Fitch ratings’ latest monthly Credit Card Movers & Shakers report. However, Fitch does not expect many negative ratings actions in the short term.
“Late payments on U.S. credit cards topped record levels and defaults rose sharply to just below all time highs last month as consumers struggled further amid the deteriorating economic environment.”
Read Article Here:
Lawmakers in 20 states move to reclaim sovereignty
I was floored when I first read about this. I suggest you check this out. Could the United States break up as the economy implodes in the years ahead? States have lost their sovereignty over the years as the federal government has become so large and powerful.-Lou
Lawmakers in 20 states move to reclaim sovereignty
Lawmakers in 20 states move to reclaim sovereignty. Obama's $1 trillion deficit-spending 'stimulus plan' seen as last straw
By Jerome R. Corsi© 2009 WorldNetDaily
NEW YORK – As the Obama administration attempts to push through Congress a nearly $1 trillion deficit spending plan that is weighted heavily toward advancing typically Democratic-supported social welfare programs, a rebellion against the growing dominance of federal control is beginning to spread at the state level.
So far, eight states have introduced resolutions declaring state sovereignty under the Ninth and Tenth Amendment to the Constitution, including Arizona, Hawaii, Montana, Michigan, Missouri, New Hampshire, Oklahoma and Washington.
Analysts expect that in addition, another 20 states may see similar measures introduced this year, including Alaska, Alabama, Arkansas, California, Colorado, Georgia, Idaho, Indiana, Kansas, Nevada, Maine and Pennsylvania.
Read Article Here:
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=88218
Lawmakers in 20 states move to reclaim sovereignty
Lawmakers in 20 states move to reclaim sovereignty. Obama's $1 trillion deficit-spending 'stimulus plan' seen as last straw
By Jerome R. Corsi© 2009 WorldNetDaily
NEW YORK – As the Obama administration attempts to push through Congress a nearly $1 trillion deficit spending plan that is weighted heavily toward advancing typically Democratic-supported social welfare programs, a rebellion against the growing dominance of federal control is beginning to spread at the state level.
So far, eight states have introduced resolutions declaring state sovereignty under the Ninth and Tenth Amendment to the Constitution, including Arizona, Hawaii, Montana, Michigan, Missouri, New Hampshire, Oklahoma and Washington.
Analysts expect that in addition, another 20 states may see similar measures introduced this year, including Alaska, Alabama, Arkansas, California, Colorado, Georgia, Idaho, Indiana, Kansas, Nevada, Maine and Pennsylvania.
Read Article Here:
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=88218
Saturday, February 7, 2009
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