Monday, February 23, 2009
Watch the Markets Pop
The WSJ floated a story last night that the Fed may buy up to 40% of Citi Banks shares. This news apparently is sitting well with many in the investment community. Might be an interesting day.
Sunday, February 22, 2009
Saturday, February 21, 2009
Obama Housing Speech Demystified
In Obama's Feb 18 speech on the housing crisis, he said:
"The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly" - how will it be determined who has acted responsibly?
"loans for families stuck in sub-prime mortgages they can't afford as a result of skyrocketing interest rates" - interest rates are the lowest they've been in my lifetime, certainly lower than I can remember.
"But I also want to be very clear about what this plan will not do: It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans. It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell. It will not help dishonest lenders who acted irresponsibility, distorting the facts and dismissing the fine print at the expense of buyers who didn't know better. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford. In short, this plan will not save every home." - where do I start with this paragraph? Now someone will determine the motives of borrowers when they agreed to their mortgages?
"My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee. This will allow millions of families stuck with loans at a higher rate to refinance. [at a lower rate]" - wait a minute! I thought the interest rates were skyrocketing?!?! At least they were 30 seconds ago when you said it.
"And the estimated cost to taxpayers would be roughly zero; while Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures." - I am really not anxious to see how many billions "close to zero" this really turns out to be.
"I also want to point out that millions of other households could benefit from historically low interest rates if they refinance" - so which is it? Skyrocketing or historically low?
"Sub-prime loans -- loans with high rates and complex terms that often conceal their costs -- make up only 12 percent of all mortgages" - this is flat out wrong. It is "sub-prime" refers to the borrowers. They are not prime, because of credit profile, amount they will put down, etc. The sub-prime mortgage has higher interest rates because sub-prime borrowers represent a bigger risk.
"Borrowers will be required to make payments on time in return for this opportunity to reduce those payments." - if these sub-prime borrowers were making their payments on time, we wouldn't be in this mess in the first place. What's new about this plan?
"In addition, as part of the recovery plan I signed into law yesterday, we are going to award $2 billion in competitive grants to communities that are bringing together stakeholders and testing new and innovative ways to prevent foreclosures. Communities have shown a lot of initiative, taking responsibility for this crisis when many others have not. Supporting these neighborhood efforts is exactly what we should be doing." - I wonder how much of this will go to ACORN?
"Our housing crisis was born of eroding home values, but also of the erosion of our common values" - hogwash! The home values eroded because of the mortgages that were not paid.
"It was brought about by big banks that traded in risky mortgages in return for profits that were literally too good to be true" - Big banks that were bullied by the feds and community organizers to offer mortgages to the sub-prime borrowers in the first place.
"by lenders who knowingly took advantage of homebuyers" - let's see if I understand this: banks loaned money to sub-prime borrowers who they knew wouldn't pay off the debts because there was some business 'advantage' in this? The idea is ludicrous.
"by leaders in our nation's capital who failed to act amidst a deepening crisis." - the very same leaders who are still in charge of the financial services committee (Barney Frank), the senate Banking, Housing and Urban Affairs committee (Chris Dodd) and the team that put together this bill in secret, closed-door committees (Nancy Pelosi and Harry Reid). You mean THOSE LEADERS in the nation's capital?
"The plan I'm announcing focuses on rescuing families who have played by the rules and acted responsibly" - how will it be determined who has acted responsibly?
"loans for families stuck in sub-prime mortgages they can't afford as a result of skyrocketing interest rates" - interest rates are the lowest they've been in my lifetime, certainly lower than I can remember.
"But I also want to be very clear about what this plan will not do: It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans. It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell. It will not help dishonest lenders who acted irresponsibility, distorting the facts and dismissing the fine print at the expense of buyers who didn't know better. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford. In short, this plan will not save every home." - where do I start with this paragraph? Now someone will determine the motives of borrowers when they agreed to their mortgages?
"My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee. This will allow millions of families stuck with loans at a higher rate to refinance. [at a lower rate]" - wait a minute! I thought the interest rates were skyrocketing?!?! At least they were 30 seconds ago when you said it.
"And the estimated cost to taxpayers would be roughly zero; while Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures." - I am really not anxious to see how many billions "close to zero" this really turns out to be.
"I also want to point out that millions of other households could benefit from historically low interest rates if they refinance" - so which is it? Skyrocketing or historically low?
"Sub-prime loans -- loans with high rates and complex terms that often conceal their costs -- make up only 12 percent of all mortgages" - this is flat out wrong. It is "sub-prime" refers to the borrowers. They are not prime, because of credit profile, amount they will put down, etc. The sub-prime mortgage has higher interest rates because sub-prime borrowers represent a bigger risk.
"Borrowers will be required to make payments on time in return for this opportunity to reduce those payments." - if these sub-prime borrowers were making their payments on time, we wouldn't be in this mess in the first place. What's new about this plan?
"In addition, as part of the recovery plan I signed into law yesterday, we are going to award $2 billion in competitive grants to communities that are bringing together stakeholders and testing new and innovative ways to prevent foreclosures. Communities have shown a lot of initiative, taking responsibility for this crisis when many others have not. Supporting these neighborhood efforts is exactly what we should be doing." - I wonder how much of this will go to ACORN?
"Our housing crisis was born of eroding home values, but also of the erosion of our common values" - hogwash! The home values eroded because of the mortgages that were not paid.
"It was brought about by big banks that traded in risky mortgages in return for profits that were literally too good to be true" - Big banks that were bullied by the feds and community organizers to offer mortgages to the sub-prime borrowers in the first place.
"by lenders who knowingly took advantage of homebuyers" - let's see if I understand this: banks loaned money to sub-prime borrowers who they knew wouldn't pay off the debts because there was some business 'advantage' in this? The idea is ludicrous.
"by leaders in our nation's capital who failed to act amidst a deepening crisis." - the very same leaders who are still in charge of the financial services committee (Barney Frank), the senate Banking, Housing and Urban Affairs committee (Chris Dodd) and the team that put together this bill in secret, closed-door committees (Nancy Pelosi and Harry Reid). You mean THOSE LEADERS in the nation's capital?
The RAT hiding deep inside the stimulus bill
Buried deep in the "stimulus bill" is the creation of a new department called the "Recovery Accountability and Transparency Board". The board would oversee the in-house watchdogs, known as inspectors general, whose job is to independently investigate allegations of wrongdoing at various federal agencies, without fear of interference by political appointees or the White House.
Congress has given the RAT Board the authority to ask “that an inspector general conduct or refrain from conducting an audit or investigation.”
The board was created at the request of the white house and will report to the white house. Is this the new transparency we were promised (Obama)? Is this the most ethical congress ever (Pelosi)? Is this REALLY what you who voted him in were hoping for?
Read the whole article from Byron York in the DC Examiner:
http://www.dcexaminer.com/politics/The-RAT-hiding-deep-inside-the-stimulus-bill-39805642.html
Congress has given the RAT Board the authority to ask “that an inspector general conduct or refrain from conducting an audit or investigation.”
The board was created at the request of the white house and will report to the white house. Is this the new transparency we were promised (Obama)? Is this the most ethical congress ever (Pelosi)? Is this REALLY what you who voted him in were hoping for?
Read the whole article from Byron York in the DC Examiner:
http://www.dcexaminer.com/politics/The-RAT-hiding-deep-inside-the-stimulus-bill-39805642.html
Failing the Grade
So far I'm not too impressed. During the election we were to believe the Obama team had a plan for the economy. Now it seems that may have been nothing more than smoke and mirrors. Granted he's only been in office for a month. But still, a month should have been plenty of time to reveal what he had up his sleeve. Instead we get a some vague tease from the Treasury Secretary with no follow thru on the back side.
With rumors of bank nationalization hanging over the economy like an executioner's axe it seems the Fed could do a lot to stop the bleeding. From my perspective what we are really lacking is strong leadership. Even President Clinton said he would like to see Obama become more positive on the economy. Unless the administration gets a little more proactive I fear there won't be any pieces to pick up. And then "you guys" can all say I told you so.
With rumors of bank nationalization hanging over the economy like an executioner's axe it seems the Fed could do a lot to stop the bleeding. From my perspective what we are really lacking is strong leadership. Even President Clinton said he would like to see Obama become more positive on the economy. Unless the administration gets a little more proactive I fear there won't be any pieces to pick up. And then "you guys" can all say I told you so.
Friday, February 20, 2009
Congrats Cindy
Congratulations to Cindy on her big new promotion. Not sure if she wanted this made public but then what the hell are brothers for if not for letting out your secrets. Nice work Sis.
A change in race relations
In a speech on February 18 marking Black History month Attorney General Eric Holder said:
“Though this nation has proudly thought of itself as an ethnic melting pot, in things racial we have always been and continue to be, in too many ways, essentially a nation of cowards. Though race related issues continue to occupy a significant portion of our political discussion, and though there remain many unresolved racial issues in this nation, we, average Americans, simply do not talk enough with each other about race.”
Hmm - most everytime any white people talk about race, we are branded as racists and bigots. I guess I should welcome this change???
“Though this nation has proudly thought of itself as an ethnic melting pot, in things racial we have always been and continue to be, in too many ways, essentially a nation of cowards. Though race related issues continue to occupy a significant portion of our political discussion, and though there remain many unresolved racial issues in this nation, we, average Americans, simply do not talk enough with each other about race.”
Hmm - most everytime any white people talk about race, we are branded as racists and bigots. I guess I should welcome this change???
Thursday, February 19, 2009
You win Dad
For years my Dad and I participated in the Windows/Mac debate. Having cut my teeth on an old DOS machine in the late 80's there was no way he could ever convince me of Apple's superiority. But today I give my Father his due. After close examination and intense research, I have to say the iPhone is hands down the greatest invention ever. Mind you, their computers still suck, but the iPhone is a genuine piece of art. Way to pick 'em Dad.
Wednesday, February 18, 2009
Follow the money
Chris Matthews is a "journalist" for MSNBC who openly declares his job to be to make Obama's presidency a success. Before the elections, it was obvious the whole network was in the tank for the democrats.
MSNBC is owned by GE.
GE manufactures medical equipment, healthcare IT, energy infrastructure (Smart Grid)and has finacial wing.
How much do you think they stand to gain by the recovery act? It is one thing for companies to lobby congress to their benefit, it is quite another when the so-called free press does everything they can to ensure an outcome to their advantage.
MSNBC is owned by GE.
GE manufactures medical equipment, healthcare IT, energy infrastructure (Smart Grid)and has finacial wing.
How much do you think they stand to gain by the recovery act? It is one thing for companies to lobby congress to their benefit, it is quite another when the so-called free press does everything they can to ensure an outcome to their advantage.
Pork Central
The prez came to Denver to sign the stimulus bill. Kinda makes me wish I was from another state. I mean it was gonna get signed anyways but I wish he didn't do it here. If you think about it,wouldn't it make sense to sign it in a state that is really suffering economically? Even if it were just symbolic. I don't know,California maybe thats where Pelosi is from or Michigan or I know what about Illinois. Colorados economy is doing pretty good compared to a lot of others.
Thursday, February 12, 2009
Mark @ PC Lujan '70-'71
One of the rare times when the americano's where the majority!
(probably because PC Lujan was near NAS).
click on the picture to see it bigger
Is this Blog on Guam Time??!!
Breed a Master Race.
Peta has compared the Westminster Kennel Club to none other than, you guessed it, the KKK. What do you think?
http://www.youtube.com/watch?v=rxAaK0iJ2vQ
Wednesday, February 11, 2009
Harmon Pre-Dean's Circle Days
Dave (from the original Larson family),
I know that your family also lived in Harmon prior to moving to Dean's Circle. Do you have any photos of Harmon back in the day? If so, could you pretty please post them sir! Thanx Ric
I know that your family also lived in Harmon prior to moving to Dean's Circle. Do you have any photos of Harmon back in the day? If so, could you pretty please post them sir! Thanx Ric
Tuesday, February 10, 2009
Well. . . that was painful.
But, nothing - I'm sure - compared to the pain that is coming.
He didn't even look us in the face while he's asking for an 800 package. Come on, the audience is not the press in the room (or the teleprompters) it is we the people. Can't he look us "in the eye" while he speaking to us?
He certainly wasn't very impressive off prompter either. A lot of pauses, uncertainty and trying to remember what he said during his campaign. I didn't actually hear a lot of answers (the casket question, what are the indicators, etc.).
What'd you guys think?
He didn't even look us in the face while he's asking for an 800 package. Come on, the audience is not the press in the room (or the teleprompters) it is we the people. Can't he look us "in the eye" while he speaking to us?
He certainly wasn't very impressive off prompter either. A lot of pauses, uncertainty and trying to remember what he said during his campaign. I didn't actually hear a lot of answers (the casket question, what are the indicators, etc.).
What'd you guys think?
Monday, February 9, 2009
Pat Nelson's 5th Grade
I see Ric and Sean in the last row (teachers pets). I see Dan Larson and Jules in the middle row. Anyone else recognize others?
Saturday, February 7, 2009
Time to update your personal profile!
Here's the 'dill pickle'. A lot of us/we/you have been on this web-site for a long time, yet have moved on to bigger and/or better things. But you have not updated your profile.
Get 'er done!
Get 'er done!
Friday, February 6, 2009
Joe Murphy
I see Joe Murphy passed away this morning. Aside from being Tim & Erins dad he was the longtime editor of the Guam Daily and then Pacific Daily News.
A skilled and gifted writer to be sure. Insightful, articulate, opinionated, obstinate, he was all of that. But mostly he was that extremely rare breed that recognized and utilized the english language as the medium and art form for which it's intended.
I always looked forward to Joe's editorials & columns.
RIP Joe Murphy
Thursday, February 5, 2009
MOTW - Boy, that was close
I went back to boat basin for more shots yesterday and had one of those "Oh shit, don't tell mom or she'll kill me" moments.
Tuesday, February 3, 2009
surf's up!!
It was flat and clear on sunday, today there's a 8ft swell. The Sharatin Hotel (in the background) is overlooking Ricks Reef. This was shot from across the bay at the Agana Boat Basin.
Big waves with a high tide brought the water up higher then usual at lunch time.
Monday, February 2, 2009
Anyone want a dog?
A few years ago my brother-in-law got a dog, the dog had puppies and now the puppies have had puppies. He really ought to give some away or get them fixed.
Anyone want a boonie dog?
Sunday, February 1, 2009
POTW - Morning Rowing Practice..
I stopped at the Weston Hotel for a coffee the other day. The Coffee shop in the lobby has a wonderful view.
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