JCCIII

Wall Street Breakfast: Must-Know News

UAW reveals itself as the self-interested entity everyone already knows they are. They couldn't care less about the harm they are doing to America's competitiveness.

Wall Street Breakfast: Must-Know News

"GMAC Financial Services and the Treasury are reportedly in advanced talks to prop up the auto-lender with its third helping of taxpayer money, making it the first of the stress-tested banks to need additional government capital. ....... The government's willingness to deepen taxpayer exposure to GMAC reflects the troubled lender's importance to the revival of the auto industry."

Call me a skeptic, but the gov't's willingness to throw good money (to GMAC) after bad reflects the importance of the unions to the democrats and the brazenly unethical qualities of the Obama administration.

Wall Street Breakfast: Must-Know News

From above: "Barron's magazine's Andrew Bary urged Ben Bernanke to hike interest rates to a "more normal" 2%, or risk fostering another financial bubble. Barron's says with the economy recovering, the dollar falling, and commodities on the rise, keeping rates near zero will only fuel speculation and anger America's economic partners and foreign creditors - and potentially stoke inflation. Bary worries the Fed is failing to distinguish between normal accommodative monetary policy and crisis accommodative policy."

Couldn't agree more with the Barron's comments. However, Bernanke is an expert on the Great Depression and one of the lessons learned from the GD (rightly or wrongly) is that money was tightened too soon (i.e., interest rates were raised to soon); I think, based on the GD lesson learned and Fed comments, that the Fed will err on the side of easy money for too long. Also, raising interest rates will be detrimental to the gov't's borrowing; a serious conflict of interest. Also, if easy money produces inflation (an almost certainty), so much the better for the gov't; a huge tax increase without having to vote on it and repayment of debt with cheaper and more readily available (if/when jobs increase) money.

Hooverville 2009: Where's the Anger, America?

Good one, THofler. Seriously, the construction worker guy in the video worked for 30 years and is still living paycheck-to-paycheck! I'm sorry, no sympathy here for someone who, in 30 years, has not saved up a rainy day fund (6-12 months of living expenses), paid off his house, generated a decent retirement portfolio, etc. The entitlement mentality has to be squelched; live beneath your means, assume no one (including the government) is going to take care of you, and stop whining.

Wall Street Breakfast: Must-Know News

"Embattled Bank of America (BAC) CEO Ken Lewis, already facing a slew of woes, now must forfeit his entire bonus and salary for 2009." Neither the Breakfast summary nor the linked to article justifies this; however, I will assume that it is based on performance. If a nefarious czar can force a man as powerful and influential as Ken Lewis to agree to no pay for a year of work due to poor performance, Congress people better watch out.

Wall Street Breakfast: Must-Know News

Here's a news flash. Obama wins the Nobel Peace Prize. No surprise, of course; Obama will win the top award from every liberal/socialist group on the planet over the next few years.

Wall Street Breakfast: Must-Know News

Ontario Sues Tobacco Companies. Canada, I dis-invested in your country following your politicians' lies during your 2006 elections concerning the energy trusts. I have been looking for reasons to re-invest, but so far the risk associated with putting my money within your sphere of chicanery outweigh the potential rewards. Your attempt, now, to double sue tobacco companies only reinforces my previous decisions.

Wall Street Breakfast: Must-Know News

Good that the ratings agencies are finally being investigated; they are the, as yet, unpunished villains in the Crash of 2008. Very hefty judgments against and maybe some serious prison time for a few executives are in order. Don't know exactly what to make of the comment, "Brown didn't specify which companies will be investigated." If Brown does not investigate them all, what does that say?

Wall Street Breakfast: Must-Know News

Bbowen7. Boy, did you hit the nail on the head! Nov 2010 and Nov 2012 cannot come soon enough.

Wall Street Breakfast: Must-Know News

It took Detroit and the UAW 40 years to do it, but they have finally convinced me that they cannot build a competitive world-class car. Congratulations.

Weakest Employment Market Since the Great Depression

Mr Harrison. Many conservative economists argue that any increase in gov't "investment," at best, merely offsets the resulting reduction in private "investment." Some argue that this was the real cause of the length and depth of the 1930's Great Depression, and had Hoover and Roosevelt done nothing, the Great Depression would have been only a deep recession. After all, the gov't makes nothing, it can only give to one American by taking from another; "spread the wealth" might be an appropriate phrase (Joe the Plumber). Any response to this argument? Thanks.

Wall Street Breakfast: Must-Know News

Interesting that democrat presidents frequently acknowledge their party's lack of expertise/credibility in the critical areas of finance and defense by nominating republicans to Fed chair and Sec of Defense (Will NBC or MSNBC acknowledge, or even mention, these points?). Wonder how quickly Harry Reid will push the Bernanke re-nomination through the senate. He couldn't get the AA queen (Satamayor) nomination through quickly enough or with little enough discussion; likewise with the "stimulus" package and health care reform. In Bernanke's case, I suspect Harry will likely think the entire Bush-era crisis will require a thorough re-look, with the real purpose being to highlight perceived Bush-era failures while turning a blind eye to any democrat complicity (bet Harry does not highlight the point that the democrats controlled congress from 2006-08) . Politics and hypocrisy are equivalent terms. Nov 2010 (and Nov 2012) cannot come quickly enough.

Private Prisons: A Reliable American Growth Industry

To the bleeding-hearts who commented above. I suppose you agree with Scotland's recent release of the Lockerby (sp) murderer; released for compassionate reasons (he is dying of cancer), after all, he did spend about 10 days in jail for each of the people he murdered. When you, personally, are ready to provide a job, a room in your home, etc., for the released prisoner who did not repay society for his crime; then you may have some credibility. Until then, you are disgusting (just like to Scottish official(s) who released the Lockerby terrorist; I say bring back capital punishment, and do it in a timely manner (6 months maximum from conviction to execution).

Warren Buffett and the Imaginary Economy

Buffet has achieved immortality as a great investor; notice the past tense. Could he do it again; who knows? Now, however, he thinks we should all pay more taxes; his argument would be a little more credible if he (and Bill Gates) were not engaged in an attempt to "cheat" the government out of the 50% of their wealth that the gov't claims (via the death tax) to be rightfully theirs. If Buffet and Gates really believed that the gov't can best spend money, why would Gates establish a foundation, the primary result of which will be to push away the tax man, and why would Buffet bestow a large percentage of his money to it? Seems to me, if they really meant what they say (we should all pay more taxes), they would do away with the tax-avoiding foundation and give 90%+ of their wealth to the US gov't today, or at least not establish a tax loop-hole to "cheat" the US gov't out of its share upon their deaths.

Wall Street Breakfast: Must-Know News

For what it's worth, Hazem Khalid Al-Braikan should be executed or, perhaps worse, fined to the tune of 3-10 times the amount he inappropriately profited from his illegal scheme. I suspect he will ignore the SEC lawsuit or bargain it down to a tolerable out-of-court fine. Any meaningful punishment will likely be the responsibility of our dubious ally, Kuwait. How Kuwait ends up treating Hazem Khalid Al-Braikan will be telling on how Kuwait really feels about the US; real ally and friend or oil customer to be exploited to maximum possible. Failure to properly punish will, like meaningful punishment, give a good indication of what Kuwait really thinks of the US, and failure to properly punish will encourage further similar shenanigans by other Kuwaiti rich guys.