I'm a little slow sometimes in catching up to what is going on in the economy. The fact is, I don't pay that much attention to the news and most news coverage is of all the wrong things anyway. The things that truly impact us tend to stay below the radar of most of the media.
Tonight a friend asked me what I thought about the Quantitative Easing Policy of the Fed. It was a new term to me, so, I did some research. At risk of being raked over the coals for doing so, I am going to link (here) to the Wikipedia definition. Yeah, I know, there is definitely risk associated with using a Wikipedia definition, but, after a good deal of research of other sources I concluded that it does a pretty good job of explaining it.
I also am linking an MIT article that is another attempt at explaining it. Interestingly, the conclusions of the two definitions are somewhat at odds. The MIT article seems to think it will do no harm, the writer of the Wikipedia entry sees a good deal of risk.
I not only see risk, I see definite harm to the average citizen. The impact of the policy is an increase of the money supply while forcing interest rates to artificially low levels. The result is a deflated dollar. That means that the average citizen is losing wealth because his money is worth less and he can't get a reasonable return on most investments that he would make.
The problems with the economy are not going to be fixed by Monetary Policy. The real issue is uncertainty created by wrong-headed Fiscal Policy. Until Congress and the current Administration get their house in order, the economy will remain stagnate. While there is plenty of money in the system, no one is willing to risk it to create new jobs. Banks aren't lending without Federal Guarantees and businesses aren't expanding in the face of huge tax increases on the horizon.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Saturday, October 16, 2010
Friday, September 3, 2010
It's About the Economy
The Administration doesn't get it -- still. It's about the economy. They think the American public is a bunch of idiots. The money they are throwing at "stimulus" packages is just designed to buy votes for another few years of power. It certainly won't stimulate the economy.
Money is being tucked away by businesses who have the power to create jobs. Why would they invest it with such an environment of uncertainty in Washington? Or, perhaps, why invest when there is such certainty in Washington? -- certainty that those in power are out to take what isn't their's and throw it to those who would keep them in power. Either way, the economy suffers.
It isn't something that is popular to mention, but, the War in Iraq was actually a stimulus to our economy. Spending on military equipment and supplies created lots of jobs, as did troop recruitment. It also cost less than the Obama Administration's "stimulus" spending to date -- which, by-the-way, did nothing to stimulate the economy.
I'm not much on "ranting" about every little thing that goes on in the world -- whether politics, economics or whatever. There are just a handful of fundamental issues anyway. They come back to differences in world-view. Right now, mine is at a polar opposite to what I see in Washington. Fortunately, mine includes a faith in something higher that sustains me through the valley of the shadow.......
Money is being tucked away by businesses who have the power to create jobs. Why would they invest it with such an environment of uncertainty in Washington? Or, perhaps, why invest when there is such certainty in Washington? -- certainty that those in power are out to take what isn't their's and throw it to those who would keep them in power. Either way, the economy suffers.
It isn't something that is popular to mention, but, the War in Iraq was actually a stimulus to our economy. Spending on military equipment and supplies created lots of jobs, as did troop recruitment. It also cost less than the Obama Administration's "stimulus" spending to date -- which, by-the-way, did nothing to stimulate the economy.
I'm not much on "ranting" about every little thing that goes on in the world -- whether politics, economics or whatever. There are just a handful of fundamental issues anyway. They come back to differences in world-view. Right now, mine is at a polar opposite to what I see in Washington. Fortunately, mine includes a faith in something higher that sustains me through the valley of the shadow.......
Tuesday, August 10, 2010
The president Just Dosn't "Get" It On Jobs
Sustainable jobs are created by businesses, not by government. There is a tipping point that will be reached in which there is not enough productivity by the private sector to support the public (government) sector. Unless of course, the trend toward nationalization of businesses continues (bank bailout, automaker bailout, etc.) and we convert completely to the "dark side" -- er, I mean Communism/Socialism/State Ownership.
To create jobs, businesses need 1) adequate excess income to reinvest and 2) a stable regulatory environment in which risk is known. The current Administration and Democrat controlled Congress has taken, or is taking away in the form of repealing the Bush tax cuts, both of these necessary ingredients.
In an AP article (Obama overtures to business fall flat ) out today, the president notes:
To create jobs, businesses need 1) adequate excess income to reinvest and 2) a stable regulatory environment in which risk is known. The current Administration and Democrat controlled Congress has taken, or is taking away in the form of repealing the Bush tax cuts, both of these necessary ingredients.
In an AP article (Obama overtures to business fall flat ) out today, the president notes:
"This should be as American as apple pie," Obama told a Democratic fundraiser in Austin, Texas, on Monday. "And yet we can't get it moving through the Senate." He speculated that Republicans were blocking the bill because they didn't want to do anything to help him and were "thinking about the next election instead of the next generation."The truth of the matter is better stated by Steve Forbes in the same article:
"The truth is that not even the Franklin Roosevelt administration was as hostile to and ignorant about free enterprise as this administration is," declared magazine publisher and one-time GOP presidential contender Steve Forbes.So, is it all about politics, or is it about the economic policies of the Administration/Democratic Congress? As a small-business owner/manager, I say it is about the economic policies of the Administration. It appears that Mitch McConnell at least has a clue.
But Senate Republican leader Mitch McConnell of Kentucky shot back in a statement, "For more than a year and a half, the president and his Democrat allies on Capitol Hill have pushed an antibusiness, anti-jobs agenda on the American people in the form of one massive government intrusion after another."I wonder when the president will "get" the message? After all, as noted in the same article, there isn't a single former CEO of a business in his entire cabinet or among his top economic advisers. The outlook for an improving jobs situation given the shape of things in Washington is dismal.
Monday, July 19, 2010
The Prime Indicator
Energy consumption is the number 1 indicator of economic activity.
China Passes U.S. as World's Biggest Energy Consumer
Some interesting quotes from the article:
"Highlighting how quickly its energy demand has increased, China's total energy consumption was just half the size of the U.S. 10 years ago."
"The U.S. is still by far the biggest energy consumer per capita, with the average American burning five times as much energy annually as the average Chinese citizen...."
"...said China requires total energy investments of some $4 trillion over the next 20 years to keep feeding its economy and to avoid power blackouts and fuel shortages."
"...China is expected to build over the next 15 years some 1,000 gigawatts of new power-generation capacity. That is about the total amount of electricity-generation capacity in the U.S. currently...."
And this just in (updated 7-20-10)....
China denies IEA label as world's top energy user
I guess that want us to think they are making huge leaps in energy conservation measures.
China Passes U.S. as World's Biggest Energy Consumer
Some interesting quotes from the article:
"Highlighting how quickly its energy demand has increased, China's total energy consumption was just half the size of the U.S. 10 years ago."
"The U.S. is still by far the biggest energy consumer per capita, with the average American burning five times as much energy annually as the average Chinese citizen...."
"...said China requires total energy investments of some $4 trillion over the next 20 years to keep feeding its economy and to avoid power blackouts and fuel shortages."
"...China is expected to build over the next 15 years some 1,000 gigawatts of new power-generation capacity. That is about the total amount of electricity-generation capacity in the U.S. currently...."
And this just in (updated 7-20-10)....
China denies IEA label as world's top energy user
I guess that want us to think they are making huge leaps in energy conservation measures.
Friday, July 16, 2010
A Sure Way to Jumpstart the Economy
What a novel idea...for a politician. This is the first proposal for a piece of legislation that I've seen in a long time that makes sense.
Top House Republican wants ban on new federal regulations
One of the costs of doing business that is seldom considered is risk. Risk impacts borrowing, spending, expansion and other operations. If you want to free a bunch of capital for investment, reduce the risk. Uncertainty in the regulatory environment has been one of the greatest risks of doing business since control of the Senate and House fell into the hands of the Democrats. President Bush provided at least some level of balance against their attack on business. The current administration has pushed the attack to unprecedented levels. Remove some uncertainty and businesses will invest and the economy will grow.
Top House Republican wants ban on new federal regulations
One of the costs of doing business that is seldom considered is risk. Risk impacts borrowing, spending, expansion and other operations. If you want to free a bunch of capital for investment, reduce the risk. Uncertainty in the regulatory environment has been one of the greatest risks of doing business since control of the Senate and House fell into the hands of the Democrats. President Bush provided at least some level of balance against their attack on business. The current administration has pushed the attack to unprecedented levels. Remove some uncertainty and businesses will invest and the economy will grow.
Tuesday, August 11, 2009
Other States Are Watching Texas Business Success
For those of you who may not have seen it, the article linked below comes out of Washington -- the state, that is. It is about the Texas economy.
Texas Economy Shining Brightly Despite Recession
Texas Economy Shining Brightly Despite Recession
Friday, April 10, 2009
Our Deluded Public
The results of the Rasmussen Poll linked below are a symptom of several things. 1) The heavy influence of the left in our educational system, 2) The large number of people dependent on Federal and State largess, 3) The liberal bias of the media that continually preaches the ills of capitalism and 4) The greed that many capitalists exhibit. I'm sure there are more but the whole subject is depressing to me.
Just 53% Say Capitalism Better Than Socialism
It also means that 47% are clueless or totally misinformed....
Just 53% Say Capitalism Better Than Socialism
It also means that 47% are clueless or totally misinformed....
Saturday, April 4, 2009
It's All About Power and Control -- er, is that redundant???
Stuart Varney wrote an excellent article for the Wall Street Journal concerning banks repaying the TARP money. Follow the link below.....
Obama Wants to Control the Banks
There's a reason he refuses to accept repayment of TARP money.
Obama Wants to Control the Banks
There's a reason he refuses to accept repayment of TARP money.
Sunday, March 15, 2009
Digging Deeper Holes
Don't you love it when the government continues to get it wrong? Too much debt is one of the problems that plagues many small businesses yet, the current administration feels that it must get them in deeper through government guarantees and other lending mechanisms. What is really needed is for the government to remove some of the regulatory burden and reduce their taxes. That will free their money to invest in their business.
If the problem is cash flow, what good will new borrowing do? Let small businesses keep more of their cash and they will figure a way to survive.
If the problem is cash flow, what good will new borrowing do? Let small businesses keep more of their cash and they will figure a way to survive.
Saturday, January 24, 2009
A Lack of Confidence
Much of what is happening in the economy now is a function of the lack of confidence in the investing community and the American public at large. Throwing more money into the mix isn't going to do anything if confidence is not restored.
How do you restore confidence when your solution is to panic? That's what the proposed $825 billion rescue package is -- a panic response. MY response to more bailout funds is panic. I am fearful of what it will do to my children and grandchildren. They are the ones being asked to bail us out of the current economic situation. They are the ones who will pick up the bill.
The desire of the government seems to be to stimulate spending. Dollars flowing through the economy is important, however, my response will continue to be to pay off debt (of which I have little to start with) and to build savings. My kids will need something on which to survive. Since the greed-o-nomics of today is creating the problem, it falls on those of us who are able today, to set some aside for the survival of those who must face "the tomorrow" that is being created. I suspect there are others who think the same way. Result: pouring money into the economy through additional bailout funds will have little positive effect except to prop up failures.
The best way to restore confidence in the economy is not to send the message that the government wants more of your money; it is to send a message of fiscal responsibility. That is NOT what I'm hearing out of Washington -- past or present administration.
How do you restore confidence when your solution is to panic? That's what the proposed $825 billion rescue package is -- a panic response. MY response to more bailout funds is panic. I am fearful of what it will do to my children and grandchildren. They are the ones being asked to bail us out of the current economic situation. They are the ones who will pick up the bill.
The desire of the government seems to be to stimulate spending. Dollars flowing through the economy is important, however, my response will continue to be to pay off debt (of which I have little to start with) and to build savings. My kids will need something on which to survive. Since the greed-o-nomics of today is creating the problem, it falls on those of us who are able today, to set some aside for the survival of those who must face "the tomorrow" that is being created. I suspect there are others who think the same way. Result: pouring money into the economy through additional bailout funds will have little positive effect except to prop up failures.
The best way to restore confidence in the economy is not to send the message that the government wants more of your money; it is to send a message of fiscal responsibility. That is NOT what I'm hearing out of Washington -- past or present administration.
Thursday, January 8, 2009
A Snapshot of the Economy in a Bright Spot
Yesterday I spent the day in the Nashville, TN, and Bowling Green, KY, area. Their economy seems to be perking along nicely. I understand that there have been some layoffs and the Corvette plant in Bowling Green may reduce production for a period, but all-in-all, it seems to be hopping.
Jobless numbers being reported are ugly. It continues to signal some fundamental restructuring within our economy. Our carmakers are inefficient -- due in part to regulation and in part to Union imposed overhead. That's where a lot of the jobless claim numbers are being generated.
I think we may be "surprised" to see the media coverage of the economy turn much more positive after the Inauguration of the new President. They must exercise their power and annoint The One. After all, they believe they made him what he is. I can't argue that point.
Jobless numbers being reported are ugly. It continues to signal some fundamental restructuring within our economy. Our carmakers are inefficient -- due in part to regulation and in part to Union imposed overhead. That's where a lot of the jobless claim numbers are being generated.
I think we may be "surprised" to see the media coverage of the economy turn much more positive after the Inauguration of the new President. They must exercise their power and annoint The One. After all, they believe they made him what he is. I can't argue that point.
Wednesday, December 31, 2008
Busily Looking Forward
It has been a while since my last post -- basically a month. It seems that my "real" job has occupied a huge amount of my time and practically 100% of my thoughts for the last month or so. Most people will see that statement and think that things are bad, that my company is struggling and we're in survival mode. Nothing could be farther from the truth. Right now we are experiencing growth and acquiring new customers on a daily basis. I have been busy dealing with that growth and with reaching out to prospective customers.
Isn't that interesting? The economy is "in the tank" according to everything that I hear and read and yet our business is experiencing a boom. I think there are a number of reasons why that is happening. 1) The economy is "bad" and my prospective customers are looking for ways to add value to their business. I offer them a service that typically will save expense and concurrently improve performance. 2) We have become more active in marketing our service. When times are tough you must work twice as hard to get in front of customers. You CANNOT cut marketing, advertising or sales expenses and expect to succeed. 3) We deliver what we promise. It's just good business. If you want repeat business, do what you say that you will do at a fair price. Give the customer value for their investment and they will be loyal.
The election was all about the economy. The consuming public was duped by the purveyors of socialism. It is going to get worse.
I hope that the President Elect is pragmatic enough to move slowly. It is a given that Pelosi and Reid will attempt to ram through their entire liberal agenda in the first 100 days. Be afraid -- be very afraid....
Isn't that interesting? The economy is "in the tank" according to everything that I hear and read and yet our business is experiencing a boom. I think there are a number of reasons why that is happening. 1) The economy is "bad" and my prospective customers are looking for ways to add value to their business. I offer them a service that typically will save expense and concurrently improve performance. 2) We have become more active in marketing our service. When times are tough you must work twice as hard to get in front of customers. You CANNOT cut marketing, advertising or sales expenses and expect to succeed. 3) We deliver what we promise. It's just good business. If you want repeat business, do what you say that you will do at a fair price. Give the customer value for their investment and they will be loyal.
The election was all about the economy. The consuming public was duped by the purveyors of socialism. It is going to get worse.
I hope that the President Elect is pragmatic enough to move slowly. It is a given that Pelosi and Reid will attempt to ram through their entire liberal agenda in the first 100 days. Be afraid -- be very afraid....
Tuesday, November 25, 2008
Texas Economic Star is Shining
Texas has long had a pro-business attitude. It is a state full of entrepreneurs in a governmental climate that supports their initiatives in many ways. With no state income tax, a budget surplus and excellent infrastructure many businesses are looking to Texas for their new home. The article below points to some of the strengths of the Texas economy and why it is growing.
The Lone Star State is Flexing its Muscles
While much of the nation is currently struggling with high unemployment and loss of industry, it is good to know that there are some bright spots in the U.S. economic picture. I believe that much of the struggle nationally is the self-fulfilling fear of the people. When people lose confidence in the economy it will falter. Although there is added caution in the behavior of some, the Texas economy continues to churn ahead in large part because of the can-do attitude of the state's business community. I hear remarks daily that can be summed up in the following statement: "Yep, it's a little tough right now. That just means we need to do things better and smarter." If only the rest of the country would get that message.
Let the entrepreneurs invest in the economy. The result will be jobs and more revenue at lower tax rates. Redistributing income is the wrong way to fix our economy. Our government leaders are in the midst of the largest redistribution scheme since the Great Depression. We are taking money from our children and grandchildren and giving it to corrupt and inept industries. Some of them must be let to fail gently but others need to come crashing down. It is time to start the rebuilding process. Instead, we are on the course of prolonging the agony into future generations. Not right.
The Lone Star State is Flexing its Muscles
While much of the nation is currently struggling with high unemployment and loss of industry, it is good to know that there are some bright spots in the U.S. economic picture. I believe that much of the struggle nationally is the self-fulfilling fear of the people. When people lose confidence in the economy it will falter. Although there is added caution in the behavior of some, the Texas economy continues to churn ahead in large part because of the can-do attitude of the state's business community. I hear remarks daily that can be summed up in the following statement: "Yep, it's a little tough right now. That just means we need to do things better and smarter." If only the rest of the country would get that message.
Let the entrepreneurs invest in the economy. The result will be jobs and more revenue at lower tax rates. Redistributing income is the wrong way to fix our economy. Our government leaders are in the midst of the largest redistribution scheme since the Great Depression. We are taking money from our children and grandchildren and giving it to corrupt and inept industries. Some of them must be let to fail gently but others need to come crashing down. It is time to start the rebuilding process. Instead, we are on the course of prolonging the agony into future generations. Not right.
Tuesday, November 11, 2008
The Injustice of it All
President elect Obama will get the credit for "fixing" the economy -- at least that's what people think and what will likely be the response of the media when it turns around -- and it WILL turn around. (see the poll here)
There are many who have compared the current economic crisis to that of the Great Depression. There are admittedly many parallels, but there is one BIG difference. It took the federal government several years before they kicked in gear the spending stimulus necessary to re-start the economic engine of the country during the Great Depression. President Bush, on his watch, responded immediately with a huge stimulus package. The problem with any economic stimulus package is the delay between implementation and the harvest of results. I suspect that toward the end of 2009 we will begin to see a turnaround and by the end of 2010, we will be running at full steam again -- NOT because of the miraculous hand of Obama, but because of the quick action of the Bush administration.
I do have some concern about the timing of the turnaround. That is because policies enacted by Obama in his first months could easily delay the return of a healthy economy. It will depend largely on his approach to taxation and the willingness of Congress to follow him. I hope the GOP is prepared and willing to stand firmly against tax increases.
There are many who have compared the current economic crisis to that of the Great Depression. There are admittedly many parallels, but there is one BIG difference. It took the federal government several years before they kicked in gear the spending stimulus necessary to re-start the economic engine of the country during the Great Depression. President Bush, on his watch, responded immediately with a huge stimulus package. The problem with any economic stimulus package is the delay between implementation and the harvest of results. I suspect that toward the end of 2009 we will begin to see a turnaround and by the end of 2010, we will be running at full steam again -- NOT because of the miraculous hand of Obama, but because of the quick action of the Bush administration.
I do have some concern about the timing of the turnaround. That is because policies enacted by Obama in his first months could easily delay the return of a healthy economy. It will depend largely on his approach to taxation and the willingness of Congress to follow him. I hope the GOP is prepared and willing to stand firmly against tax increases.
Thursday, October 30, 2008
Fiscal Issues Week Focus of Senator Cornyn
With the current economic turmoil faced by our nation being prominent in the news, U.S. Senator John Cornyn has focused his website on fiscal issues for our nation. I am privileged to have a guest post on the Senator's site which can be viewed here. I appreciate the Senator's efforts to bring these vital issues to the public's attention during this election season. He has been a strong advocate for fiscal conservatism and I believe will continue to bring that message to the Senate as we send him back for a second term. Thank you Senator for your efforts!
Friday, October 24, 2008
Fred Thompson's Thoughts on the Election
Fred Thompson shares some thoughts on the election in the link below:
http://www.fredpac.com/index.aspx
http://www.fredpac.com/index.aspx
Tuesday, October 21, 2008
Yard Signs and Newspaper Endorsements
I've been doing a lot of traveling lately. Some has been in Texas and some elsewhere. Last week I was in Florida and Georgia. I saw a lot of McCain-Palin yard signs and very few of the other. It might be because I was mostly in rural areas. While in Georgia I heard very strong support for Senator McCain and saw only one T-shirt that was pro-that-other-guy.
Tonight I'm in Victoria, Texas. As I drove from Amarillo to Victoria I saw almost exclusively McCain-Palin yard signs until I arrived in the Austin area. The same with U.S. Senator John Cornyn. Austin seemed to have a good mix with possibly a slight edge to the more liberal candidate in both the Presidential and the U.S. Senate race.
After I left Austin this morning and headed south to Victoria I saw a few signs promoting the liberal Democrats and a few supporting McCain and Cornyn. It was much more mixed than the western parts of the state.
So, what does that portend for the races? I don't really know except that based on my trip and a rough count of political signs I would call the races (in Texas) 52% McCain and 46% to the Democrat with the remainder going to Ron Paul. In the Senate race I would give 62% to John Cornyn and 35% to the guy that sounds like a Central American dictator and a couple of percent to the fringe parties.
If you look at newspaper endorsements it looks like a sweep by U.S. Senator John Cornyn. I believe that he has 14 endorsements to date while his opponent has ZERO. I don't know about endorsements for McCain/Palin but I suspect that it is in his favor across the state.
The media keep talking about how bad the economy is but I don't see it. The traffic is heavy, trucks are hauling equipment, fields are being harvested or plowed, houses are being built, highways are under construction and restaurants are full. Maybe Texas is unique to the country but I don't think so. I saw the same when I was in southern Georgia and northern Florida last week.
Everywhere I look I see abundance. Our country is amazingly blessed. I think that we need pro-business, pro-growth, pro-family, pro-morality, pro-tax relief, pro-spending control government. I know Senator Cornyn fits that profile and I believe that Senator McCain does as well. If we want to regain control of our country we need to get the Nancy Pelosi's, Harry Reid's and B.O.'s out of Washington.
Tonight I'm in Victoria, Texas. As I drove from Amarillo to Victoria I saw almost exclusively McCain-Palin yard signs until I arrived in the Austin area. The same with U.S. Senator John Cornyn. Austin seemed to have a good mix with possibly a slight edge to the more liberal candidate in both the Presidential and the U.S. Senate race.
After I left Austin this morning and headed south to Victoria I saw a few signs promoting the liberal Democrats and a few supporting McCain and Cornyn. It was much more mixed than the western parts of the state.
So, what does that portend for the races? I don't really know except that based on my trip and a rough count of political signs I would call the races (in Texas) 52% McCain and 46% to the Democrat with the remainder going to Ron Paul. In the Senate race I would give 62% to John Cornyn and 35% to the guy that sounds like a Central American dictator and a couple of percent to the fringe parties.
If you look at newspaper endorsements it looks like a sweep by U.S. Senator John Cornyn. I believe that he has 14 endorsements to date while his opponent has ZERO. I don't know about endorsements for McCain/Palin but I suspect that it is in his favor across the state.
The media keep talking about how bad the economy is but I don't see it. The traffic is heavy, trucks are hauling equipment, fields are being harvested or plowed, houses are being built, highways are under construction and restaurants are full. Maybe Texas is unique to the country but I don't think so. I saw the same when I was in southern Georgia and northern Florida last week.
Everywhere I look I see abundance. Our country is amazingly blessed. I think that we need pro-business, pro-growth, pro-family, pro-morality, pro-tax relief, pro-spending control government. I know Senator Cornyn fits that profile and I believe that Senator McCain does as well. If we want to regain control of our country we need to get the Nancy Pelosi's, Harry Reid's and B.O.'s out of Washington.
Friday, October 17, 2008
Random Thoughts From Jacksonville Florida
It has been awhile since I have posted anything. My travel schedule has been crazy and will continue to be that way until almost Christmas.
I am writing this from Jacksonville, Florida, while waiting until time to board my flight west.
It has been a good week working in the Southeast. The people are friendly and the weather was great. Attitudes are good.
Every newspaper that I pick up has gloom-and-doom headlines about the economy and yet as I look around, I don't see it. Business is happening and people are spending money. There is certainly an underlying current of anxiety because people don't know what may really be happening in the economy. That anxiety is fed by the newspaper headlines. Yet, there lifestyles really haven't changed.
In agriculture, things really look pretty good. There is certainly some market turmoil -- but that's the way it always is. The markets go up, the markets go down. You do the best that you can.
The only negative that I've heard is a rumor that one very large outfit that is an industry leader is financed by one of the BIG 5 banks. The word is that their credit line has been squeezed.
So, why is our government bailing the big banks out? I know that it's because it would devastate our economy if they fail because it would create a cascading effect that would start with the big boys and work its way down until everyone was affected.
My thought though, is that they need to seriously consider breaking the big banks up into multiple smaller institutions. Kind of a Ma Bell breakup. Let's spread our risk instead of allowing it to concentrate into a few hands.
What bothers me is that the very banks that the Fed is propping up are the ones buying other financial institutions. If I had a bent toward conspiracy theories, I think we could certainly build a case that this whole financial meltdown smacks of a conspiracy to gain financial control of the world. But, being the rational individual that I am, maybe it's just a function of human stupidity instead.
Maybe I should run for President. Is there anybody out there that would vote for me?
I am writing this from Jacksonville, Florida, while waiting until time to board my flight west.
It has been a good week working in the Southeast. The people are friendly and the weather was great. Attitudes are good.
Every newspaper that I pick up has gloom-and-doom headlines about the economy and yet as I look around, I don't see it. Business is happening and people are spending money. There is certainly an underlying current of anxiety because people don't know what may really be happening in the economy. That anxiety is fed by the newspaper headlines. Yet, there lifestyles really haven't changed.
In agriculture, things really look pretty good. There is certainly some market turmoil -- but that's the way it always is. The markets go up, the markets go down. You do the best that you can.
The only negative that I've heard is a rumor that one very large outfit that is an industry leader is financed by one of the BIG 5 banks. The word is that their credit line has been squeezed.
So, why is our government bailing the big banks out? I know that it's because it would devastate our economy if they fail because it would create a cascading effect that would start with the big boys and work its way down until everyone was affected.
My thought though, is that they need to seriously consider breaking the big banks up into multiple smaller institutions. Kind of a Ma Bell breakup. Let's spread our risk instead of allowing it to concentrate into a few hands.
What bothers me is that the very banks that the Fed is propping up are the ones buying other financial institutions. If I had a bent toward conspiracy theories, I think we could certainly build a case that this whole financial meltdown smacks of a conspiracy to gain financial control of the world. But, being the rational individual that I am, maybe it's just a function of human stupidity instead.
Maybe I should run for President. Is there anybody out there that would vote for me?
Thursday, October 9, 2008
Random Thoughts on Markets and Elections
It has been difficult to feel like posting anything the last few days. All we hear from the national media is how the economy is falling apart and the Presidential candidates are calling each other names.
It is virtually impossible to pick out the tidbits of truth in the various political advertisements (which includes "debates") because they are hidden in a fog of nothingness. We hear vague statements with little substance.
It is sad that the political process has devolved to mudslinging, but it's been that way since George Washington left the job to his successor. We don't have true debates, just positioning and one-liners designed to get media coverage. Let's talk about the merits of the plans that each candidate offers. Give us some substance instead of smoke for a change. We're big kids now, we can handle it.
Senator McCain is somewhat left of where I'd like him to be on many issues. If it wasn't for Governor Palin's presence on the ticket, he would really be struggling with the conservative voters. The trouble is, there really isn't an alternative. Obama is so far left-of-left (in spite of what he says) that he makes McCain look conservative.
As to the economy, I'm optimistic. Where there is turmoil, there is opportunity. I feel fortunate to live in Texas. We have a little different view of the world here than the folks on either coast. In fact, I expect any day for California and Massachusetts to be asking the State of Texas for a loan. The U.S. government is bound to be running pretty low -- they've given so much away lately. But, hey, what's a few hundred billion here or there anyway? Oh, wait! That's our money! I wish they'd stop doing that!!
Folks panicked this afternoon on the stock market. Maybe after they sleep on it they'll decide it's time to buy back. I'll bet the market opens up in the morning.
Locally our banks are strong and our economy is chugging along steadily. We've been in a bit of a boom -- and still are -- it does appear to be slowing a little bit but not much. We're building windmills and ethanol plants, digging new oil and gas wells, and the traffic on the highways is getting worse all the time. The farmers are harvesting their crops and the cattlemen are turning cattle out for fall grazing. It seems pretty normal around here -- except the old guys in the coffee shop have a little something extra to talk about.
I hate that I missed it, but Senator Cornyn was debating his opponent for his Senate seat tonight in Houston. I'm sure he was attacked over the economic mess but I think if the voters will look around and take stock of what's going on in this state they will recognize that the Senator has done a pretty good job representing their interests. The Senator's opponent -- I keep forgetting his name, but I know it's the same as some Central American Dictator from a few years back -- is clueless. He keeps preaching the same old socialistic theme as the Clintons and Obama/Biden. I guess it has a certain appeal to the deadbeats, but people around here are mostly hard-working, clean-living folks with strong family values. That's the kind of values Senator Cornyn represents. If the people are thinking come election day, instead of listening to the liberal media, the Senator will be going back to Washington to represent us again. Hopefully he will be in a position to start cleaning up the mess they have up there. He can't do it alone though. We need a few more like him. It's too bad some of the other states won't wake up and follow Texas' example on how they are represented in Washington. That's the kind of change we need. I wonder if Senator Cornyn would consider running for President in the future?
It is virtually impossible to pick out the tidbits of truth in the various political advertisements (which includes "debates") because they are hidden in a fog of nothingness. We hear vague statements with little substance.
It is sad that the political process has devolved to mudslinging, but it's been that way since George Washington left the job to his successor. We don't have true debates, just positioning and one-liners designed to get media coverage. Let's talk about the merits of the plans that each candidate offers. Give us some substance instead of smoke for a change. We're big kids now, we can handle it.
Senator McCain is somewhat left of where I'd like him to be on many issues. If it wasn't for Governor Palin's presence on the ticket, he would really be struggling with the conservative voters. The trouble is, there really isn't an alternative. Obama is so far left-of-left (in spite of what he says) that he makes McCain look conservative.
As to the economy, I'm optimistic. Where there is turmoil, there is opportunity. I feel fortunate to live in Texas. We have a little different view of the world here than the folks on either coast. In fact, I expect any day for California and Massachusetts to be asking the State of Texas for a loan. The U.S. government is bound to be running pretty low -- they've given so much away lately. But, hey, what's a few hundred billion here or there anyway? Oh, wait! That's our money! I wish they'd stop doing that!!
Folks panicked this afternoon on the stock market. Maybe after they sleep on it they'll decide it's time to buy back. I'll bet the market opens up in the morning.
Locally our banks are strong and our economy is chugging along steadily. We've been in a bit of a boom -- and still are -- it does appear to be slowing a little bit but not much. We're building windmills and ethanol plants, digging new oil and gas wells, and the traffic on the highways is getting worse all the time. The farmers are harvesting their crops and the cattlemen are turning cattle out for fall grazing. It seems pretty normal around here -- except the old guys in the coffee shop have a little something extra to talk about.
I hate that I missed it, but Senator Cornyn was debating his opponent for his Senate seat tonight in Houston. I'm sure he was attacked over the economic mess but I think if the voters will look around and take stock of what's going on in this state they will recognize that the Senator has done a pretty good job representing their interests. The Senator's opponent -- I keep forgetting his name, but I know it's the same as some Central American Dictator from a few years back -- is clueless. He keeps preaching the same old socialistic theme as the Clintons and Obama/Biden. I guess it has a certain appeal to the deadbeats, but people around here are mostly hard-working, clean-living folks with strong family values. That's the kind of values Senator Cornyn represents. If the people are thinking come election day, instead of listening to the liberal media, the Senator will be going back to Washington to represent us again. Hopefully he will be in a position to start cleaning up the mess they have up there. He can't do it alone though. We need a few more like him. It's too bad some of the other states won't wake up and follow Texas' example on how they are represented in Washington. That's the kind of change we need. I wonder if Senator Cornyn would consider running for President in the future?
Tuesday, September 30, 2008
The Common Sense Fix
Dave Ramsey has a proposed solution to the current financial crisis that I believe merits the attention of our Congressional leaders. It is called The Common Sense Fix. Read it by clicking on the link and then go to this page to see how you can take action. This is critically important to our future.
Subscribe to:
Posts (Atom)