What are we to believe? What a web we weave when we try to deceive, or something like that.
The culprits this time are Paulson, Bernanke, Lewis (BAC), and Thain (ML). In October this group met and together decided, with arm twisting, that Merrill had to be saved from bankruptcy or the financial system could fail. Bank of America saved the day at the request of the Fed and Treasury and agreed to buy Merrill Lynch.
Since there was limited time for due diligence Paulson assured Lewis that TARP money would be available if there were surprises to be realized. Greed again ruled the day and Lewis said yes at a price unrealistically high given the condition of Merrill at the time.
Let's break this down to determine who in this group did the best job and worse job for their constituents'.
Bernanky represents the banking system. Paulson represents the U.S. Taxpayer through the distribution of TARP funds. Lewis represents the stockholders of Bank of America. Thain represents the stockholders of Merrill Lynch.
The banking system was saved so Bernanky did his job.
The U.S. taxpayer gave $20 billion cash plus $400 billion in guarantees to Bank of America when he could have just paid less had he done that for Merrill in the first place. Let's give him a D+ since there is an 8% return on $20 billion.
Thain saved his company and shareholders from bankruptcy at a price that turns out to be a premium to his shareholders since they got a price per share at many times the worth. They reported a loss of $15 billion for the forth quarter alone. Thain hasn't been with the firm that long and did not take the risks that got them into trouble. Give this man an A+.
Now we come to Lewis. He was taken by all the others at the expense of his stockholders. He has been there through all the risk taking, and the merger with Countrywide, the poster child for sub-prime. Can anybody tell me what this guy was thinking? What a numb skull. Give this nut an F-.
If I worked for Bank of America or Merrill Lynch and could work somewhere else or start my own business I would. Save your reputation and leave before your future is destroyed by this inept leader. I've seen this happen at other places and I believe it will happen here. Remember Enron.
Friday, January 16, 2009
Tuesday, January 6, 2009
A New Year Of Change
Happy New Year!!! Things are getting back to normal here. Holidays are over, our Grandson has returned to Fl, and school has started back.
The new year is a man made mark of time, along a never ending steady stream, which has as a reality only a split second of time. The rest is either the past or the future. At any moment in that steady stream we can depart from our norm and set a different path for ourselves. But we choose the new year most often as a time to change through the many resolutions we make.
Normally, for me, the New Year means little, because of the fact that nothing is different. Time just keeps moving along that steady stream. This year, however, I look to 2009 for some real change. Needed change.
I can't remember a time when Politics, Wall Street, Main Street, and the world have been so inter-connected and inter-dependent. One man is the hope of most of us to lead us out of the deep quagmire we entered in 2008. Obama will start meeting that challenge Jan. 20th.
I for one will back his efforts with words of support and will give him the benefit of the doubt even when I might question some decisions. I think we all should get behind him and support him any way we can. Who would want his job? He worked hard for it and won it pulling away, against all odds. Let's hope he will lead us in the same way, solving many of our problems, against all odds.
Instead of marking time by a new year, I'm marking time from Jan 20th. expecting a real departure from the norm exemplified by 2008.
The new year is a man made mark of time, along a never ending steady stream, which has as a reality only a split second of time. The rest is either the past or the future. At any moment in that steady stream we can depart from our norm and set a different path for ourselves. But we choose the new year most often as a time to change through the many resolutions we make.
Normally, for me, the New Year means little, because of the fact that nothing is different. Time just keeps moving along that steady stream. This year, however, I look to 2009 for some real change. Needed change.
I can't remember a time when Politics, Wall Street, Main Street, and the world have been so inter-connected and inter-dependent. One man is the hope of most of us to lead us out of the deep quagmire we entered in 2008. Obama will start meeting that challenge Jan. 20th.
I for one will back his efforts with words of support and will give him the benefit of the doubt even when I might question some decisions. I think we all should get behind him and support him any way we can. Who would want his job? He worked hard for it and won it pulling away, against all odds. Let's hope he will lead us in the same way, solving many of our problems, against all odds.
Instead of marking time by a new year, I'm marking time from Jan 20th. expecting a real departure from the norm exemplified by 2008.
Thursday, December 18, 2008
Top Ten List
Time Magazine just came out with their "top 10" issue. They list the top ten in several categories. From movies to gadgets to even, lists. At the end of their lists' they ask us to list our top ten something. I thought I'd take a stab at it and ask any who read this to post their list as a comment. I'll choose a subject and give it a try. Here goes.
Top ten reasons to get up each morning:
1. Open my eyes to see Barb (my wife) next to me
2. Enjoy Scott's (my son) visit for a few minutes every morning
3. Spend time with Skittles (our dog) who demands my attention each morning
4. Experience the feeling that comes with the beginning of a new day
5. Enjoy that first cup of coffee with Barb and the Today show
6. The first step outdoors for whatever reason
7. Planning and discussing what to do in the day ahead
8. Eat breakfast, so many easy choices
9. Getting up to speed with the world through Internet and TV
10. Working on something that needs attention
The list would be a little different if we were in Pa. or Fl., but this is now and it fits Tx. Also it gets hard after number 5. The list is imperfect and might be different if I do it again next week.
But its like I said, a stab, my best shot for now. Please give it a try. We all would benefit
Top ten reasons to get up each morning:
1. Open my eyes to see Barb (my wife) next to me
2. Enjoy Scott's (my son) visit for a few minutes every morning
3. Spend time with Skittles (our dog) who demands my attention each morning
4. Experience the feeling that comes with the beginning of a new day
5. Enjoy that first cup of coffee with Barb and the Today show
6. The first step outdoors for whatever reason
7. Planning and discussing what to do in the day ahead
8. Eat breakfast, so many easy choices
9. Getting up to speed with the world through Internet and TV
10. Working on something that needs attention
The list would be a little different if we were in Pa. or Fl., but this is now and it fits Tx. Also it gets hard after number 5. The list is imperfect and might be different if I do it again next week.
But its like I said, a stab, my best shot for now. Please give it a try. We all would benefit
Friday, December 12, 2008
Deserving Trust
As long as I can remember I have given people the benefit of the doubt. I just trusted people from the get-go. In early years maybe I was naive or gullible or both. When I was old enough, with experience, I still chose to expect the best from others and shied away only if they proved me wrong. I felt life would be better with that attitude. I really haven't been hurt much with that approach. In fact, we probably would not have a house in Pa. if I had taken the other position, but that's a different story. One that really supports my approach all those years.
The fraud that was revealed yesterday on Wall Street shakes my attitude. If you wonder what I'm talking about, a well respected investor, for years, played a sham on people who trusted him with their money. A lot of money. Maybe $50 billion . Very rich families, even charities, have lost everything. It was all a lie. They trusted first and never asked questions, they just accepted the lies as truth without evidence. Even the Government agencies, state and federal, didn't catch the guy, or worse yet, didn't care or bother to check.
Our country is really in a pickle. Our leadership, at least until now, has really let us down. What do we do now? I really don't know. Let's hope the new administration can change the direction of the tide of deception and greed that prevails in Washington and on Wall Street.
It will be a very difficult change to make.
As for me, I'm not changing. I will continue to trust people unless I'm proven wrong. It's too late for Washington and Wall Street. I don't think I will ever trust in them again. Our country was founded on the motto "In God We Trust".....our government has joined Wall Street and turned a blind eye to that motto.
The fraud that was revealed yesterday on Wall Street shakes my attitude. If you wonder what I'm talking about, a well respected investor, for years, played a sham on people who trusted him with their money. A lot of money. Maybe $50 billion . Very rich families, even charities, have lost everything. It was all a lie. They trusted first and never asked questions, they just accepted the lies as truth without evidence. Even the Government agencies, state and federal, didn't catch the guy, or worse yet, didn't care or bother to check.
Our country is really in a pickle. Our leadership, at least until now, has really let us down. What do we do now? I really don't know. Let's hope the new administration can change the direction of the tide of deception and greed that prevails in Washington and on Wall Street.
It will be a very difficult change to make.
As for me, I'm not changing. I will continue to trust people unless I'm proven wrong. It's too late for Washington and Wall Street. I don't think I will ever trust in them again. Our country was founded on the motto "In God We Trust".....our government has joined Wall Street and turned a blind eye to that motto.
Thursday, December 11, 2008
Bailout for Auto Industry
Does anyone really believe politicians can run Detroit any better than the greedy goons who have been in charge? I mean, they took their private jets to Washington the first time to ask for a handout then thought better next time and drove. That is, in a nutshell, how much forward thinking that has gone into these companies probably since I was born. They can't even anticipate how their actions would be perceived in their dire situation. How could they be expected to understand what would drive demand in favor of their cars.
Talk about reactive management, do you know anything more reactive than our Congress? They only respond to existing circumstances, there is no way they can strategically manage Detroit out of their misery. They can throw money at the problem but that's the extent of their ability. And it's our money!
Detroit's problems are so deep and complicated there is just no way that a politically appointed czar can do any better. Politics should have no part in this, but it would be the key issue, if an appointed czar answering to the President or Congress is the "solution".
The major concern seems to be the potential loss of jobs if bankruptcy happens. Well, it seems to me that the jobs that exist now are a big part of the problem. Too many jobs at too high a wage. One can't protect these jobs and expect to solve this situation. There are also concerns about supplier and dealer jobs. Here again, there are too many dealers and too much employment in the supplier ranks.
The demand for autos is not expected to return to the 2006-2007 levels. Therefore, one can't expect to maintain capacity throughout the system with lower overall demand. And we also must consider the foreign auto cos. who have taken market share over the past years and build these cars here in the U.S. Their demand and profits are hurt also but they are better positioned to weather the storm and will probably gain market share during this time. There will be a finite number of cars sold here no matter what. It all depends on who gets the business. Detroit will get some, but, based on today's cost structure they can't make a profit on what they will sell.
The best solution is to allow for the "survival of the fittest". That's what the animal kingdom is based on and also the premise that allows capitalism to exist. We have laws in place to allow for the orderly transition from "weak to strong" without being totally devoured in the process. It's called Chapter 11 bankruptcy.
I sure would enjoy reading others' position in this issue. Thanks.
Talk about reactive management, do you know anything more reactive than our Congress? They only respond to existing circumstances, there is no way they can strategically manage Detroit out of their misery. They can throw money at the problem but that's the extent of their ability. And it's our money!
Detroit's problems are so deep and complicated there is just no way that a politically appointed czar can do any better. Politics should have no part in this, but it would be the key issue, if an appointed czar answering to the President or Congress is the "solution".
The major concern seems to be the potential loss of jobs if bankruptcy happens. Well, it seems to me that the jobs that exist now are a big part of the problem. Too many jobs at too high a wage. One can't protect these jobs and expect to solve this situation. There are also concerns about supplier and dealer jobs. Here again, there are too many dealers and too much employment in the supplier ranks.
The demand for autos is not expected to return to the 2006-2007 levels. Therefore, one can't expect to maintain capacity throughout the system with lower overall demand. And we also must consider the foreign auto cos. who have taken market share over the past years and build these cars here in the U.S. Their demand and profits are hurt also but they are better positioned to weather the storm and will probably gain market share during this time. There will be a finite number of cars sold here no matter what. It all depends on who gets the business. Detroit will get some, but, based on today's cost structure they can't make a profit on what they will sell.
The best solution is to allow for the "survival of the fittest". That's what the animal kingdom is based on and also the premise that allows capitalism to exist. We have laws in place to allow for the orderly transition from "weak to strong" without being totally devoured in the process. It's called Chapter 11 bankruptcy.
I sure would enjoy reading others' position in this issue. Thanks.
Wednesday, December 10, 2008
I Really Love Our Dog
This is a big switch form previous subjects. But its just as important to me. Skittles is a very special dog. So smart....So sweet....So caring...and So "all knowing". And at the same time very dependent on us for his well being... physical and mental. Everyone who has a dog feels the same way, I'm sure.
When we go for short trips to town we always leave Skittles behind. He stays in the utility room with his water dish and sleeping pillow. We leave the utility door open to the rest of the house and put the iron fireplace screen in front of the door to keep him in and still let light in. He's fine with that as long as all these things are in place.
A few times, in our haste to leave, we have forgotten to put his sleeping pillow in the room with him. Well, when we came home we have found the screen gone from the door with a sleepy (what did you expect me to do) look on his face. One time he somehow pulled a hallway carpet runner under the screen and was laying comfortably on it when we came home.
When we travel with him his place is the backseat of the car. We have a seat belt for him, specially designed for dogs. He is not happy unless he is safely within his seat belt. If you don't have a safety belt for your dog you should look into it. A quick stop could result in major injury or worse for your dog.
I don't need to ramble on and on so I will stop now. Our dog gives us so much it boggles my mind when I stop to think about it. But we all should stop and think about it every now and then, and then go love on our dog. That's what I'm doing as soon as I post this note.
When we go for short trips to town we always leave Skittles behind. He stays in the utility room with his water dish and sleeping pillow. We leave the utility door open to the rest of the house and put the iron fireplace screen in front of the door to keep him in and still let light in. He's fine with that as long as all these things are in place.
A few times, in our haste to leave, we have forgotten to put his sleeping pillow in the room with him. Well, when we came home we have found the screen gone from the door with a sleepy (what did you expect me to do) look on his face. One time he somehow pulled a hallway carpet runner under the screen and was laying comfortably on it when we came home.
When we travel with him his place is the backseat of the car. We have a seat belt for him, specially designed for dogs. He is not happy unless he is safely within his seat belt. If you don't have a safety belt for your dog you should look into it. A quick stop could result in major injury or worse for your dog.
I don't need to ramble on and on so I will stop now. Our dog gives us so much it boggles my mind when I stop to think about it. But we all should stop and think about it every now and then, and then go love on our dog. That's what I'm doing as soon as I post this note.
Tuesday, December 9, 2008
Do Networks Report the News or Drive the News
Are we still at war? Last I looked we had several hundred thousand troops in Iraq and Afghanistan. We don't hear about that on the newscasts or the talk shows. Is the subject any less newsworthy? The economy is on the top of our minds for sure. But there are Americans still putting their lives at risk everyday....every minute.
Should the networks focus on what we are thinking about currently or on what is taking place around the world that affects us and others? Should we depend on the networks to inform us or to entertain us by satisfying our concerns of the present?
I believe that the primary motivation of the news networks is to gain audience thus gaining share of market and share of advertising revenues. We need to develop other sources to inform us about issues that are affecting us directly or indirectly.
Just look how screwed up our foreign policy became even with a focus of the news. Imagine what could be going on now since there is little or no focus. Are we letting the news establishment drive our opinions and current thinking? Are we really that lazy or do we just not care enough?
An open press is one of the major factors supporting our free society. Greed is the major cause of our current economic crisis. Will greed be the cause of the disappearance of our "free" press.
Should the networks focus on what we are thinking about currently or on what is taking place around the world that affects us and others? Should we depend on the networks to inform us or to entertain us by satisfying our concerns of the present?
I believe that the primary motivation of the news networks is to gain audience thus gaining share of market and share of advertising revenues. We need to develop other sources to inform us about issues that are affecting us directly or indirectly.
Just look how screwed up our foreign policy became even with a focus of the news. Imagine what could be going on now since there is little or no focus. Are we letting the news establishment drive our opinions and current thinking? Are we really that lazy or do we just not care enough?
An open press is one of the major factors supporting our free society. Greed is the major cause of our current economic crisis. Will greed be the cause of the disappearance of our "free" press.
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