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First self employes at 10 mowing lawns and shoveling smow. Held a salaried job since I was 14. handling dangerous chemicals and protecting the lives of thousands of members of my private neighborhood Swim Club. Swim Team Coach at 17. Red Cross certified Life Guard, to train Life Guards, to teach... More
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  • Current Banking Laws Forgot The Retiring Boomers

    The Current Banking rules were politically driven and heavily influenced by powerful companies who resisted regulating the use of the money.

    They left a big void in banking rules that have tied bankers from making quality loans to people who have saved for retirement and are 55-65 years old.

    Current laws require banks to make any client requesting a loan to produce proof of current adequate income. The banks can not look at future income from retirement savings to service the debt. Typically they require proof of income from a W-2 and 2 recent tax returns.

    We have a very large number of people in this age bracket that were laid off (they are more expensive than younger replacements) and this age group is more prone to serious medical needs that can lead to disability.

    The banks no longer look at equity until the first hurdles are passed and are required to focus on income. Sadly, the banks look at income 180 degrees opposite than the IRS. You may have 1 or 5 million dollars of equity that will become available mostly tax free shortly, but you cannot touch it as the IRS will see it as income and heavily tax it.

    Collateral now means nothing. This oversight in writing laws to protect one group that hamstrings another is keeping money from being put in play and many "Boomers" are caught very short on cash despite having done exactly what our government asked them to do.

    This is particularly harmful to those who have a need to pay medical bills to stay alive or preserve a decent quality of life. Upon spending savings, the IRS considers the money as income but the banks can not do the same. If you make money through investments and are not a professional, then the income can not be counted by banks. The same income earned by a professional can be counted.

    Sounds like a small issue but it is keeping millions of dollars from being used which hurts the economy. If the money is used, then the "Boomers" are further at risk of needing government help in their old age due to IRS calculations that remove their deductions for such things a medical expenses and even Social Security.

    The largest generation with the largest pool of money are cut out of our economy and placed in jeopardy.

    Disclosure: I am long AAPL.

    Additional disclosure: I am disabled from injury. Expenses from savings to keep me alive and stabilize my life, which is now not at risk, all were considered earnings by the IRS. With over a million dollars in real paid for property, I can not get a loan to do business with those investments and lost all of my deductions.

    Jul 12 12:35 PM | Link | Comment!
  • Banking And Brokerage Houses Gone Mad

    I have been posting comments all over the web and in my comments for over a month on the dangers the repeal of the Glass-Steagall Banking Acts of 1933 have been. Starting w/JFK thru a Bush administration bill that was signed into law by Clinton, both parties put us right back into the mess (and worse) that led to the Great Depression.

    With the dangerous policies of the FED run by Ben Bernanke, probably necessary due to a broken Congress, and the likelihood that he is going to resign soon (who would want to be in office when it all falls apart), we are very close to 1929! First the housing industry crashed starting in 1927, then, the drought and floods destroyed crops from 1928-1934 and then the stock market crash gave us the Great Depression that took the economics of a world war to fix.
    We have had the first two and a "dry run" in 2008 of the bank failures. I doubt the dollar will hold as the world currency which would lead to serious deflation, unless this is a worldwide event,.

    The "Boomers" failed their promising beginning of the 1960's.

    You want to read and understand this, as a storm is coming.

    I am going to look deeper into Elizabeth Warren (NYSE:D).
    She may be a good choice for President if Hillary can be beaten.
    I was an Obama supporter but he has done a terrible job and created an opening for a republican President despite their seriously broken party.

    Please remember that both parties created this debacle over 5 decades and the banks and brokerage houses may be more powerful than our government? They stone walled our government over regulations intended to insure the use of the TARP funds would clear the housing crisis. NY's attorney general has filed a lawsuit against The Bank Of America. Hopefully more States will join in.


    "A small bipartisan group of U.S. senators on Thursday introduced legislation that would break up Wall Street's megabanks by separating traditional banking activity from riskier financial services.

    The bill, called the 21st Century Glass-Steagall Act, has an uncertain future, but it shows some lawmakers' frustration that banks have only continued to grow since the 2007-2009 financial crisis.

    The four biggest banks are now 30 percent larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk," said Democratic Senator Elizabeth Warren from Massachusetts, one of the sponsors of the bill.

    Play Video

    New Glass-Steagall?

    CNBC's Eamon Javers reports John McCain and Elizabeth Warren are joining forces to introduce a bill that would reinstate the Glass-Steagall Act.

    The other sponsors are Republican Senator John McCain from Arizona, Democratic Senator Maria Cantwell from Washington, and Senator Angus King, an independent from Maine who caucuses with the Senate's Democrats.

    The legislation would bring back elements of the 1933 Glass-Steagall Act, which divided commercial and investment banking, and was repealed in 1999.

    There were calls to bring back Glass-Steagall immediately after the financial crisis, but the 2010 Dodd-Frank financial reform law stopped short of busting up companies and instead curtails Wall Street's risk-taking.

    Play Video

    Warren: Banks Too Big for Trial?

    Sen. Elizabeth Warren (D-MA) came out swinging at her first hearing as a member of the Senate Banking Committee, with CNBC's Hampton Pearson. Barney Frank, former Congressman (D-MA), shares his reaction.

    The debate was revived last year when Sanford "Sandy" Weill, the tycoon who built financial conglomerateCitigroup into a massive U.S. commercial and investment bank, said it was time to split up the biggest banks so they can get back to growing.

    The legislation introduced on Thursday would separate the operations of traditional banks with accounts backed by the Federal Deposit Insurance Corp. from riskier activities such as investment banking, insurance, swaps and hedge funds.

    It would include a five-year transition period and would call for penalties if companies violated the law.

    Other attempts since the financial crisis to bring back Glass-Steagall have not gathered significant momentum.

    -By Reuters

    US Senators Introduce Bill to Break Up Megabanks

    A small bipartisan group of U.S. senators wants to break up megabanks.

    Disclosure: I am long AAPL.

    Additional disclosure: This problem is generic to our entire monetary system. Apple should be applauded for fighting back on principal against continuing bad policy that contradicts the concept of Government protection for all Americans.

    Tags: AAPL
    Jul 12 9:53 AM | Link | Comment!
  • Higher Interest Rates From The Banks!

    Did we, the taxpayers not save the banks from their own greed and done so with their disdain for our gift? TARP rules were refused in negotiations, given in good faith that they would use those funds to clear up the housing mess yet as soon as they have a hint from the Federal Reserve Chairman who does what Congress will not do, they apply greed to the knife that kills our short lived recovery. As we speak, NY State is prosecuting the Bank Of America for tactics that have kept existing houses just beyond our reach when foreclosure or short sales were not processed. Such economic magic tricks have not gone unnoticed by those who work hard and yet still suffer to pay their bills. We are not fooled by the fall of gasoline prices during the holidays only to rise the instant the people can vacation as their children are free from school. Housing was the first harbinger of trouble before the Great Depression. Drought and floods made our food scarce and expensive also. Manipulation of the Stock Market then broke and we suffered for many years. Is not a clear description of our current situation? Did we not prosper from the security given by the Glass-Steagall Acts quietly taken from us? Do we prosper from higher student loans or did we not prosper from massive free education given to the veterans of WWII for 2 decades?

    Disclosure: I am long AAPL.

    Additional disclosure: I work for no one but myself yet I have been fortunate in the stock market and in our other real market, real property. I believe success is the definition of a professional rather than just one who invests or writes about investment for pay.

    Disclosure: I am long AAPL.

    Additional disclosure: Long reasonably priced working class rentable homes within IRA's.

    Jul 05 4:04 PM | Link | Comment!
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