billp37

My Thoughts on Bernanke, Boeing and Citibank

"Northwest Jet Suffers Similar Malfunctions to Air France Flight

[D]uring the brief but dramatic event, the Northwest Airbus A330's crew was left without reliable speed measurements for three minutes. In addition, the computer safeguards designed to keep the aircraft from flying dangerously too fast or too slow were also impaired. Like the Air France A330 jetliner, the Northwest plane entered a storm and quickly started showing erroneous and unreliable airspeed readings. ..."

home.comcast.net/~bpayne37/whitman59/w...

My Thoughts on Bernanke, Boeing and Citibank

My impression, with more reflection, is a no Boeing engineer would fail to report a potential problem because of fear job termination.

My Thoughts on Bernanke, Boeing and Citibank

"... the reason they kept coming up 7s and 11s on their previous commercial programs was that all were rather conservative forward moves from existing platforms."

I was coauthor with Pat Corey and ? of the 767 software certification policy document in 1980, a consultant to Boeing Commercial Aircraft Corporation..

I worked at Payne field in Everett, WA commuting by plane from Pullman, WA.

Corey was the project leader.

Corey and ? were experienced with the AWACS software.

en.wikipedia.org/wiki/...

AWACS software apparently ran on a mainfram type computer.

The 767, if I recall correctly, had a large numbers of microcomputers [microntrollers] connected via an ARINC 429 bus.

en.wikipedia.org/wiki/...

Cory was concerned about the software cost since AWACS software apparented costed-out to over $100 per line of code.

Number of lines of code in the 767 were very high and Corey was concerned that software costs migh cause Boeing financial trouble.

My view was that microcomputer/controller software can be very different from mainframe software in that micocontroller are frequently shorter and simpler to accomplish a required task.

Point is that my impression was that Boeing engineers are very conservative, careful, smart, SUPEREXPERIENCED so I am not suprised by delays in the 787.

Boeing and Sandia Labs labs made me job offers in 1980.

I went to Sandia because I thought the work would be more interesting. Right on.

Wall Street Breakfast: Must-Know News

Adam Riesz Regional Director at Goldman Sachs
Phoenix, Arizona Area Tuesday May 12, 2009

The Outlook for the U.S. Economy

held in Albuquerque, NM sponsored by Morgan Stanley.

home.comcast.net/~bpayne37/goldmansach...

Will 'Bad Bank' Stocks Become Worthless Like GM?

Have you considered the effects University of New Mexico Japanese spy sting on GM?

www.prosefights.org/ja...

Wall Street Breakfast: Must-Know News

"OMAHA, Neb., May 3 (Reuters) - Billionaire Warren Buffett on Sunday criticized some life insurers for taking on "crazy" financial risks by selling variable annuities, or retirement products that promised unrealistic guarantees to buyers.

The products are tied to stock market performance and in some cases guaranteed a certain periodic return, while principal could not be eroded by investment losses.

"I always thought they were crazy when they were doing it," said Buffett, at a press conference in Omaha, his hometown, because of the financial risks to the insurer.

Insurers such as Hartford Financial (HIG.N: Quote, Profile, Research) and Genworth Financial (GNW.N: Quote, Profile, Research) have been badly burned by over-selling these products, which performed badly as the credit crisis sent markets plummeting.


The industry’s retirement products guaranteeing minimum returns on equity-based investments were “crazy,” Buffett said today at a press conference in Omaha, Nebraska. Berkshire gets about half its profit from insurance, mostly from property and casualty coverage.


The industry’s retirement products guaranteeing minimum returns on equity-based investments were “crazy,” Buffett said today at a press conference in Omaha, Nebraska. Berkshire gets about half its profit from insurance, mostly from property and casualty coverage.

When insurers “tell the policyholder that he gets some of the up side and you take all the down side, that’s poison,” Buffett said. “That would be like a stockbroker telling you that he’ll pay you back if your stocks lose money.” "

www.bloomberg.com/apps...

Wall Street Breakfast: Must-Know News

"The elderly have been harder hit than most. Personal bankruptcy filings among those 65 and older jumped 150% from 1991 through 2007, according to a study released last year by AARP. Although they have been known as the most frugal savers, today, many of them are deep in debt and without a safety net. ..."

www.usatoday.com/money...

"March 2009

Re: Upcoming Declines in Variable Annuity Income from the CREF and TIAA Real Estate Accounts

Dear Participant:

In late April, you will receive a Confirmation Statement from TIAA-CREF about annual changes to your variable annuity income that will take effect on May 1, 2009. These changes reflect the performance of the underlying College Retirement Equities Fund (CREF) Stock, Global Equities, Growth, Equity Index, Social Choice, Bond Market, Inflation-Linked Bond and Money Market Accounts, as well as the TIAA Real Estate Account. ..."

jpg below.

home.comcast.net/~bpayne37/whitman59/w...

Added Debt Won't Rescue the Great American Ponzi Scheme

Bernie Madoff case may help us recover $22,036 stolen from our Sandia Laboratory Federal Credit Union retirement-protected saving accounts by SLFCU CEO Christopher Jillson.

MarketWatch

Madoff's victims can deduct losses in '08
IRS grants break on investment and 'phantom' income, but carry-back varies

www.marketwatch.com/ne...

pointed us to IRS form 4684

www.prosefights.org/nm...

which is EXACTLY what we need to FIRST try to convince National Credit Union Administration [NCUA] to give us fraud loss restoration of our savings.

Almost unbelieveable is that Ayatollah Sayyid Ali Khamenie and Dr Mamoud Ahmadi Nejad are involved in the reason our $22,036 was stolen.

www.prosefights.org/nm...

We filed an official genocide criminal complaint affidavit against Brzezinski in New Mexico federal 97 CV 266 for

"Nojeh Coup

In July 1980, Zbigniew Brzezinski of the United States met Jordan's King Hussein in Amman to discuss detailed plans for Saddam Hussein to sponsor a coup in Iran against Khomeini. King Hussein was Saddam's closest confidant in the Arab world, and served as an intermediary during the planning. The Iraqi invasion of Iran would be launched under the pretext of a call for aid from Iranian loyalist officers plotting their own uprising on July 9, 1980 (codenamed Nojeh, after Shahrokhi/Nojeh air base in Hamedan). The Iranian officers were organized by Shapour Bakhtiar, who had fled to France when Khomeini seized power, but was operating from Baghdad and Sulimaniyah at the time of Brzezinski's meeting with Hussein. ..."

Let's see what happens?

In FDIC We Trust?

Maybe we should worry about NCUA too?

"March 21 (Bloomberg) -- U.S. regulators may rebuild the network that helps fund retail credit unions after seizing two corporate lenders with $57 billion in assets to halt an erosion of liquidity.

The National Credit Union Administration, regulator of a banking network for 90 million customers, yesterday took over U.S. Central Federal Credit Union, in Lenexa, Kansas, and Western Corporate Federal Credit Union in San Dimas, California. So-called stress tests at both lenders found an “unacceptably high concentration of risk” from mortgage-backed securities, the agency said in a statement. ..."

www.bloomberg.com/apps...

In FDIC We Trust?

"The holding company for failed savings and loan Washington Mutual Inc, has sued the Federal Deposit Insurance Corp. for billions of dollars in claims in connection with the September seizure and sale of the Seattle-based thrift to JPMorgan Chase & Co.

The complaint, filed March 20 with the U.S. District Court for the District of Columbia, seeks to recover billions in tax refunds, capital contributions and trust securities in the wake of the regulators' seizure and $1.9 billion sale of assets to JP Morgan Chase.

Press accounts estimate WaMu's claim against the federal regulator at $13 billion. ..."

www.bizjournals.com/po...

10 Reasons Why We Still Haven't Hit Bottom

----- Forwarded Message -----
From: "TIAA-CREF" <tiaa-cref@messagin...
To: [e-mail]
Sent: Friday, March 20, 2009 2:01:57 PM GMT -08:00 Tijuana / Baja California
Subject: A Message from TIAA-CREF CEO Roger Ferguson

A Message from TIAA-CREF CEO Roger Ferguson


Dear TIAA-CREF Participant:

The economic downturn continues to challenge investors. Whether you are currently receiving annuity income or are years away from retirement, you may wonder about the economy's long-term prospects and the implications for your financial plan.

I am writing to share my views and to remind you that TIAA-CREF is here to help you keep your financial plan on track.

Recession to Linger

It is likely that effects of the recession will be with us for much of the year. Equity markets will remain volatile, residential housing markets will continue to struggle, and unemployment will rise through 2009 and into 2010.

Many economists, including our own, estimate that U.S. Gross Domestic Product (GDP) will decline this year. We believe that even with considerable fiscal stimulus, GDP could fall 3% or more in 2009. Others will obviously have different views regarding the degree of contraction, but all readily acknowledge the difficulties we face in the U.S. and around the world.

While a sustained rally is unlikely in the near term, markets will eventually recover. Here are some signs of recovery that we hope to see: corporate earnings growth; rising consumption; stable housing prices; fully liquid credit markets offering an environment in which AAA-rated companies are able to borrow at normal rates; and renewed investor confidence.

What Can You Do in the Interim?

More than you might realize.

If you are still years from retirement, I encourage you to take this opportunity to review your long-term plan and ensure that your portfolio is positioned to take advantage of the recovery. If your holdings have fallen in value, try not to make those "paper losses" permanent by selling when the market is down. Consider your risk tolerance, desired cash balance, ability to invest using the dollar-cost averaging method, and other factors before you sell. Remember, too, that market declines may present opportunities to purchase quality assets now at prices that may represent excellent value in years to come. That is another reason why contributing regularly to an employer-sponsored plan is such an important aspect of a secure financial future.

If you have already retired, you too may be able to take steps to enhance your financial security. For example, you may wish to review your allocation to ensure that your portfolio is properly diversified, and consider rebalancing in order to maintain a prudent mix of investments consistent with your goals and appetite for risk.

TIAA-CREF specialists are here to help. They will take the necessary time to answer questions you may have, and to help you make sure that your plans remain on track — one reason, perhaps, why 245,000 people moved their money to TIAA-CREF last year. Please call our Telephone Counseling Center toll-free at 1 800 842-2776 to speak with a consultant or schedule an appointment, or call your TIAA-CREF advisor directly. If you prefer, we are also happy to work with your independent financial advisor to help meet your needs.

I also encourage you to visit our website, tiaa-cref.org, where you will find information on market volatility, highlights of TIAA-CREF's financial strength, and resources that could help you strengthen your portfolio.

Performance for the Long Run

You may wonder how TIAA-CREF is weathering these challenging times. As a major institutional investor, we are not immune from the general downturn in prevailing interest rates or the overall decline in the markets. However I am pleased to tell you that the company remains financially strong and stable, thanks to sober risk management and a long-term investment philosophy.

We ended 2008 with $363 billion in assets under management. While this represents a decrease of about 17% from the prior year, many other financial companies experienced much steeper declines.

The CREF Accounts, which are fully invested in the markets, experienced the greatest impact from volatility, declining 34.4% during 2008, based on total assets under management for the combined accounts.i This corresponds to the major declines in the markets; for example, the S&P 500 Index decreased 38.5% last year.

TIAA-CREF's variable annuity accounts and mutual funds have performed very well relative to peers, according to Morningstar. More than three-quarters (76%) of TIAA-CREF's variable annuities and mutual funds exceeded their category median over the three-year period ended December 31, 2008.ii

In addition, data from Morningstar shows that 99% of TIAA-CREF's variable annuity accounts and mutual funds had an overall rating of three, four or five stars across all asset classes (as of December 31, 2008). Morningstar ratings are based on risk-adjusted returns.iii

Our investment approach and risk management practices have also served us well on the fixed income side, enabling us to avoid exposure to the types of highly leveraged securities that have produced large losses for some financial companies. Unlike other firms, we have not had to avail ourselves of federal government funding. And although we are a market participant, and therefore susceptible to the illiquidity and dramatic pricing moves that sometimes affect fixed income products, our capital base is strong. The crediting rate for TIAA Traditional has remained highly competitive, despite recent reductions that reflect a generally lower interest-rate environment. The TIAA Traditional crediting rate has been higher than the average 10-year Treasury yield and the general rate of inflation for most of the past 28 years. We continue to maintain a strong capital position to support our contractual obligations, income guaranteesiv, and long-term commitment to you.

In Closing

The economic crisis is providing an opportunity for Americans to think anew about retirement security. It is also highlighting the advantages of TIAA-CREF. Dr. William Greenough, who developed the variable annuity – the foundation of CREF – and who chaired our organization for many years, once said:

"We should try to design a retirement plan to work well in times of peace and war, inflation and deflation, depression and prosperity, and all of the other words used to describe and explain the volatile nature of the American economy…"

Dr. Greenough said that in 1954.

We know how challenging this economy can be. I can assure you that we will continue to uphold our mission, managing prudently, maintaining our long-term perspective, and building on our financial strength so that we may continue to serve you.

Sincerely,

Roger W. Ferguson, Jr.
President and Chief Executive Officer"

Who is right?

The Escalator of Life Is Going Down (Part 2)

"The Money Is Gone. Now What?
FLOYD NORRIS
Published: March 19, 2009

The losses from the worldwide financial implosion are only now being tallied up. Adjusting to the reality is proving hard.

...

As a society, we are not as rich as we thought we were. The Federal Reserve now estimates that American households as a group are poorer than they were four years ago, even before adjusting for inflation. That had not happened in any four-year period since the Fed began making those estimates more than half a century ago.

It is not an easy reality to adjust to. But simply assuming that we deserve to live as if it had not happened will only make things worse."

www.nytimes.com/2009/0...

Citi Watch: Breaking Up Is Hard to Do (and Hard to Do Right)

Smith Barney financial advisor emailed

"To:<bpayne37@comca...
Subject:RE: Citi Last Trade: 4.59
Date:Thursday, January 15, 2009 6:29:38 AM

Smith Barney was sold to Morgan Stanley on Wednesday. We are now Morgan Stanley Smith Barney. If Citi stock price goes down lower than $5.00 it will not affect your money at Smith Barney. Even if your money was at Citi, a company's stock price does not affect your money. "

I wouldn't want to count on this if Citi goes bankrupt.

Some of us retirees [45 days younger than Saddam Hussein - click on Your Website/Blog for further info] are trying to preserve our capital by laddering CDs. Laddering CDs was the advice of a Dain Rauscher investment advisor.

We are studying what to do if we go into a hyperinflation. Laddering CDs may not work in that case.

Citi Watch: Breaking Up Is Hard to Do (and Hard to Do Right)

When Citi stock falls below $5 it triggers some automatic selling.

Here's a response to my question from a Smith Barney financial advisor


To:"bill payne" <bpayne37@comcast.n...
Subject:RE: Citi Last Trade: 4.59
Date:Wednesday, January 14, 2009 4:34:52 PM

I think it is like 90 days. I don't think it is automatic though. You don't own any Citi, right?

Cramer's Stop Trading! Zombie Stocks (11/21/08)

Cramer may have done the number on annuity paying insurance companies on Thursday November 13, 2008.

www.cnbc.com/id/158402...