The synopsis on the economy is bleak. Report after report rattle off depressing statistics of severely diminished economic activity, growing jobless rates, and worse statistics to follow into the year. It's a vicious cycle that only can only be broken by renewed confidence in the stability of our economy, most notably jobs.
In the waning days of George W. Bush's presidency there are now murmurs of attempts to disperse the second half of the nearly 3/4 trillion dollar TARP funds before President-elect, Barack Obama is sworn in. http://money.cnn.com/2009/01/10/news/economy/bush_request_restoftarp/index.htm?postversion=2009011012
In my opinion, the key component of the President-elect's economic stimulus plan are the jobs components. Jobs are what is needed to rebuild confidence and get people confident enough to resume their lives. The stimulus funds are not unlimited. Any further dispersing of the TARP funds needs to be specifically targeted and carefully monitored to ensure that our tax dollars are not being squandered by their recipients.
Right now too many Americans, even those gainfully employed, are severely afraid to do anything. The hemorrhaging of job losses needs to be cauterized. There has been a great deal of blood lost and the reserve supplies are low. Let's not deplete the blood bank on cosmetic celebrity surgeries while new patients are flooding the ER!
Sunday, January 11, 2009
Thursday, December 25, 2008
Status Quo for Financial CEOs.
Robert Reich, former Labor Secretary, for President Clinton predicts that CEOs of financial and other corporations receiving taypayer bailout money will not make the necessary structural changes expected by Congress and the American people. See http://robertreich.blogspot.com/2008/12/debate-to-come-over-wall-street-autos.html
Hopefully Reich is wrong but sadly I suspect he is probably right in his assessment that financial institutions and certain other corporate CEOs will continue with the status quo.
As a long-time investor in stocks I am appalled by the flagrant mismanagement of owner's equity that has taken place by cavalier CEOs and other "trust" custodians of some of our largest and most trusted corporations, specifically those in the financial sector. I am also appalled by the excuses being made by high-paid fund managers and business anchors with their trite comments and celebratory references to "Milton Friedman's" theory of free market capitalism. Free market capitalism does not exist and never has. Taken to its truest form it runs counter to democracy. The moral hazard clause is their catch all answer to the inevitable greed and corruption that quickly creeps in when the fox is left guarding the hen house and as we have all seen the moral hazard clause has now been deferred to us, the taxpayers.
Unlike "the most productive members of society," aka CEOs and other corporate rock stars, many of us have not bought more house than we can afford, leased cars we had no business driving nor lived beyond our means. Instead we acted responsibly and funded our own pensions in 401k and 403b plans (with help from financial institution lobbyists who helped to dismantle the traditional pension plans and convince the government to endorse the alternative through complicated tax schemes), saved for our children's college, set up health savings and daycare accounts only to have the funds stolen and/or squandered by the very people who had a fiduciary responsibility to act appropriately with their management.
I am outraged! I certainly hope that our new president is not inculcated by the very people that created this mess and instead is able to transcend "the system" and work for Main Street.
Hopefully Reich is wrong but sadly I suspect he is probably right in his assessment that financial institutions and certain other corporate CEOs will continue with the status quo.
As a long-time investor in stocks I am appalled by the flagrant mismanagement of owner's equity that has taken place by cavalier CEOs and other "trust" custodians of some of our largest and most trusted corporations, specifically those in the financial sector. I am also appalled by the excuses being made by high-paid fund managers and business anchors with their trite comments and celebratory references to "Milton Friedman's" theory of free market capitalism. Free market capitalism does not exist and never has. Taken to its truest form it runs counter to democracy. The moral hazard clause is their catch all answer to the inevitable greed and corruption that quickly creeps in when the fox is left guarding the hen house and as we have all seen the moral hazard clause has now been deferred to us, the taxpayers.
Unlike "the most productive members of society," aka CEOs and other corporate rock stars, many of us have not bought more house than we can afford, leased cars we had no business driving nor lived beyond our means. Instead we acted responsibly and funded our own pensions in 401k and 403b plans (with help from financial institution lobbyists who helped to dismantle the traditional pension plans and convince the government to endorse the alternative through complicated tax schemes), saved for our children's college, set up health savings and daycare accounts only to have the funds stolen and/or squandered by the very people who had a fiduciary responsibility to act appropriately with their management.
I am outraged! I certainly hope that our new president is not inculcated by the very people that created this mess and instead is able to transcend "the system" and work for Main Street.
Wednesday, December 24, 2008
President Obama Should Implement the Pickens Plan
T. Boone Picken's Plan to create a wind-power generation corridor to provide power to our electrical grid and redistribute the natural gas the power companies currently use to power trucks should be implemented by President-elect, Barack Obama and incorporated into his national infrastructure plan.
Getting America off of its 70% dependence on foreign oil is the key to our future prosperity. Energy independence, infrastructure and the design and development of next generation transportation products could be impetus for creating the economic driver which will add to the prosperity of our nation and grow our economy well into the latter part of this century.
Adopt the Pickens Plan. Let's find a way to re-energize our independence and celebrate our freedom!
Getting America off of its 70% dependence on foreign oil is the key to our future prosperity. Energy independence, infrastructure and the design and development of next generation transportation products could be impetus for creating the economic driver which will add to the prosperity of our nation and grow our economy well into the latter part of this century.
Adopt the Pickens Plan. Let's find a way to re-energize our independence and celebrate our freedom!
Friday, December 19, 2008
President-elect Barack Obama's Infrastructure Plan is Good for America
President-elect, Barack Obama's plan to rebuild America's infrastructure is the type of economic stimulus that America needs right now. Our country saw its greatest growth in the manufacturing of transportation products. The locomotive, the ocean liner, the jumbo jet and the automobile provided more good paying manufacturing jobs than any other segment of our society directly and indirectly.
As the computer age morphed into the information age American efficiency became the world standard accelerating the learning curve and reducing the number of workers required to run the old technology industries.
As I wrote in several previous pieces including 3 Pillars of Prosperity for America, it is time for a paradigm shift in our transportation products, transportation systems, and energy products. Building the 21st-Century transportation products, the infrastructure needed to support them, and alternative energy sources to become energy independent is the key to our future prosperity. Not only is it the right thing to do for our global environment it is the right thing to do for the American people as well.
If done right this program will ignite manufacturing, construction, telecommunication, green energy, and a host of related services especially in education and training.
Regardless of one's political affiliation it is time for all of us to get behind the incoming president and help him repair our battered economy and ensure a better America for our children.
As the computer age morphed into the information age American efficiency became the world standard accelerating the learning curve and reducing the number of workers required to run the old technology industries.
As I wrote in several previous pieces including 3 Pillars of Prosperity for America, it is time for a paradigm shift in our transportation products, transportation systems, and energy products. Building the 21st-Century transportation products, the infrastructure needed to support them, and alternative energy sources to become energy independent is the key to our future prosperity. Not only is it the right thing to do for our global environment it is the right thing to do for the American people as well.
If done right this program will ignite manufacturing, construction, telecommunication, green energy, and a host of related services especially in education and training.
Regardless of one's political affiliation it is time for all of us to get behind the incoming president and help him repair our battered economy and ensure a better America for our children.
Wednesday, December 17, 2008
Help Needed for the Big 3 Now!
Congress should be dragged in by their ears and locked into the room until they get this bridge loan approved!
It is unconscionable that a blank check was given to the financial institutions in a scheme devised by Treasury Secretary, Hank Paulson. It received congressional approval only under duress as Wall Street held an economic gun to Washington's head as the stock market melted down in full color on the nightly news and red ink poured out of countless peoples' 3rd quarter 401k statements.
Sadly we have only begun to see the abuses of these funds as the first $700 billion was scooped up faster than cheap televisions at Walmart on Black Friday. AIG's CEO is a master of splitting words by agreeing not to use the funds for executive "bonuses" but finding no problem using them for executive "retention payments." $140 billion squandered with little oversight but no money to save up to 3 million jobs in the automotive industry, one of the biggest drivers of the last century? Where's the outrage?
I'm sickened by the thought that my tax money can be used to help an AIG executive buy an new yacht with their "retention payment" but it cannot be used to keep 3 million of my neighbors working. Does anyone honestly believe that eliminating a large number of jobs is going to bode well for the rest of the working people?
It is unconscionable that a blank check was given to the financial institutions in a scheme devised by Treasury Secretary, Hank Paulson. It received congressional approval only under duress as Wall Street held an economic gun to Washington's head as the stock market melted down in full color on the nightly news and red ink poured out of countless peoples' 3rd quarter 401k statements.
Sadly we have only begun to see the abuses of these funds as the first $700 billion was scooped up faster than cheap televisions at Walmart on Black Friday. AIG's CEO is a master of splitting words by agreeing not to use the funds for executive "bonuses" but finding no problem using them for executive "retention payments." $140 billion squandered with little oversight but no money to save up to 3 million jobs in the automotive industry, one of the biggest drivers of the last century? Where's the outrage?
I'm sickened by the thought that my tax money can be used to help an AIG executive buy an new yacht with their "retention payment" but it cannot be used to keep 3 million of my neighbors working. Does anyone honestly believe that eliminating a large number of jobs is going to bode well for the rest of the working people?
Saturday, December 13, 2008
The Cannibalization of America
And the cannibalizing of America continues...
It is sadly ironic that people are actually promoting the idea of destroying the health and pension plans of the remaining private and public employers that offer them at the same time that many are screaming for national health insurance and fixing social security.
One of the CNBC anchors was ridiculing the UAW workers yesterday talking about their "free" health care saying they (the anchors) don't get any free health care. Really? Do they actually pay 100% of the cost of a non group health insurance plan for themselves and their families? I doubt it. They are either hypocrites or purposely ignorant in their statements. I'm sure the anchors $$$$salaries are really in-line with the Average Joe as well.
Another lie that has permeated the media and cyberspace is this notion that the average UAW worker makes $73 per hour. This figure is a shop wrap rate. This figure is akin to saying the average plumber charging $125 per hour is making $125 per hour him or herself. It simply is not true. When I worked in manufacturing over 15 years ago the Fortune 50 company I worked for had a wrap rate over $125 per hour. Competing companies in Poland (newly-freed at the time) were charging about $8to $10 an hour wrap rate. The companies paid their workers about $1.5 an hour and the workers manufactured parts on machines without safety equipment and etched and treated parts in acid tanks without any ventilators or appropriate safety equipment.
Is this the future we wish upon our citizen's to compete in a global environment? If so, 99% of us will see our salaries significantly reduced and our standard of living lowered.
It is sadly ironic that people are actually promoting the idea of destroying the health and pension plans of the remaining private and public employers that offer them at the same time that many are screaming for national health insurance and fixing social security.
One of the CNBC anchors was ridiculing the UAW workers yesterday talking about their "free" health care saying they (the anchors) don't get any free health care. Really? Do they actually pay 100% of the cost of a non group health insurance plan for themselves and their families? I doubt it. They are either hypocrites or purposely ignorant in their statements. I'm sure the anchors $$$$salaries are really in-line with the Average Joe as well.
Another lie that has permeated the media and cyberspace is this notion that the average UAW worker makes $73 per hour. This figure is a shop wrap rate. This figure is akin to saying the average plumber charging $125 per hour is making $125 per hour him or herself. It simply is not true. When I worked in manufacturing over 15 years ago the Fortune 50 company I worked for had a wrap rate over $125 per hour. Competing companies in Poland (newly-freed at the time) were charging about $8to $10 an hour wrap rate. The companies paid their workers about $1.5 an hour and the workers manufactured parts on machines without safety equipment and etched and treated parts in acid tanks without any ventilators or appropriate safety equipment.
Is this the future we wish upon our citizen's to compete in a global environment? If so, 99% of us will see our salaries significantly reduced and our standard of living lowered.
Tuesday, November 4, 2008
Make Your Choice and Be Optimistic
Whether John McCain or Barack Obama is elected president, we, as Americans, need to reignite our optimism and look to identify a national initiative to allow our country to continue as a world model for opportunity and prosperity.
I believe that our greatest opportunity lies in our biggest challenge, that is, becoming energy independent by finding an alternative to crude oil-based energy products. I have identified it as one of the 3 Pillars of Prosperity .
Whomever is elected president should seize this opportunity and use to develop policy and initiatives that move America to be the world leaders in this technology throughout the remainder of the 21st Century.
I believe that our greatest opportunity lies in our biggest challenge, that is, becoming energy independent by finding an alternative to crude oil-based energy products. I have identified it as one of the 3 Pillars of Prosperity .
Whomever is elected president should seize this opportunity and use to develop policy and initiatives that move America to be the world leaders in this technology throughout the remainder of the 21st Century.
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