Category Archive:Finance

The very multi-millionaires proposing this know good and damn wlel this will not impact them….otherwise they wouldn’t propose it.  Raising the capital gains will hit the middle class..sell your house?  That’s capital gains..which is what the middle class does more often as they try to stay afloat.  this isn’t a stealth attack on the rich..this is yet another tax on the backs of the middle class..so the elites can keep their class from being invaded by the middle class.

 

https://www.fa-mag.com/news/capital-gains-increase-at-heart-of-democrats–tax-the-rich-plans-43762.html

 

 

Amazon is going to be the leader…and the costs are already apparent:

https://www.theguardian.com/us-news/2019/mar/06/whole-foods-amazon-cuts-minimum-wage-workers-hours-changes

 

This high minimum wage is going to mean the very folks who say they cannot live on minimum wage will not be able to live on the higher minimum wage because it will result in hourly cuts.  the minimum wage is not mean to be a life wage..it is a starter wage.  Most folks have the ability to gain skills that will allow them to move up…the biggest issue i have seen is folks are UNWILLING to do the work needed to improve their skills to enable them to EARN a higher wage…they want it GIVEN to them.  A higher minimum wage will most likely not pull folks out of poverty..it will simply expand the ranks of the impoverished as their hours get cut in proportion to the mount the higher minimum wage costs the employer.

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Let’s start off with a definition.  What is exactly is a ponzi scheme?

There’s wikipedia  definition.  In a nutshell newer investors are required to continually payoff the existing investors.  When(not if) this fails everybody looses.  Many government programs are variations of this….most pension funds are variations of this as well as the ACA.  Right now according to this article on cnsnews the Social Security trustees have been warning that there is not enough money to cover the payouts.  In this case right now the ponzi is working..there are 2.x workers for each recipient…until the gov’t went in and spent any surpluses for other programs.

The ACA is an example of the program failing from the start.  The ACA depends on healthy folks signing up to provide the funding for sicker people who sign up.  However that has not happened…why would a healthy person sign up if they do not need it?  They didn’t.  Some folks(like myself) could not afford the premiums at all….and the penalties are crushing.  The penalties do not cover the entire cost of not carrying insurance though and the penalties get to the point that not event he super rich could afford to pay them.  At this point either you ahve to let the folks off he hook or you jail everyone….good luck.

The gov’t continues to tax in record tax revenue but cannot balance it’s books.  We do not have a taxation problem..we have a spending problem.  Unfortunately until the electorate stops demanding these free lunches it is only going to get worse.

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God is good.  I got my first paycheck from my new job and it alone is almost what i normally make in one month.  I started the day with $1995 in my account and as i walk in the door this evening i have…$523 left.  The vast majority of that is bills that have been left to wait as I didn’t have the funds to pay them off.  Now they are paid…we have everything we need food and grocery wise..and i have money in the bank left over that only has to last for two weeks before I get more funds in.  My eldest is freaking out because we usually have to make that money last the rest of an entire month.  For the first time in literally years we could actually afford to buy a month’s worth of everything we need.  Between the cat supplies and the groceries we spent $540.  Now by raw numbers I could have cut a hundred or so off of that..but that would have been getting everything at Walmart and Costco.  The intangibles that most folks do not see are the amount of time it takes to drive to Frederick, the time spent in the zoos of Costco and Walmart..and the trip back home..plus the fuel.  My time is worth  at a minimum of 36 bucks an hour.   It is about 1 hour of travel time, more than 2 hours in Walmart and then 2 hours in Costco.  That alone is $180 dollars.  I usually burn 10 bucks worth of fuel..so $190 bucks.  This does not take into account the wear items on the car that have these miles put on them or the oil changes…etc etc etc.  I am just doing the most obvious one that folks see..time and fuel.  We usually spend around $350 at Costco and Walmart combined.  In total it is $350 + 180 = $530.  I spent 10 more dollars this month than I normally would shopping in Frederick.  We are not totally familiar with Weiss yet..once we are that $10 expense will go down to a negative number and then we are saving money.  In this case folks…shopping locally does save you money as long as you take proper accounting of the intangibles.

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The gov’t has now made education a total financial debt trap not just for the students but the parents as well.  IF you fill out the FASFA form you are co-signing for your child’s student debt.  since there is a high high chance of default the gov’t can(and will) come after the parents income…however that may be derived.  There are parents now having their social security garnished as the children have defaulted on the loan and the parents as co-signers via FASFA are now on the hook.  Karl Denninger lays it out.  The the paragraph with the (1) next to it for the summary of the scam that is FASFA.

Contemplate a few things as you go through the remainder of your week.

What has had its increase in cost cause the most harm to American households and individuals over the last 30 years?

There are two things: medical care and post-secondary education.

What do they have in common?

Financialization and the removal of risk from those providing the financing.

Let’s take post-secondary education first.

Starting in the 1980s the Federal Government, in a series of legislative moves, started removing bankruptcy as a means of discharging educational debt.  This greatly incentivized various organizations to provide “educational loans.”  The government then put in place policies that declared adults to be children on a legal basis when it came to finances.

(1) Specifically, the FAFSA prohibits an unmarried person under the age of 24 from being financially independent!  You are legally an adult at 18 and will go to an adult prison if you commit a crime, you can enlist in the service, get married, sign a contract (even if to your severe detriment), borrow money and be obligated to pay same, you can drink at 21, all over the objection of your parents, but the Federal Government will force your parents to disclose their income and assets and will penalize you if they make too much or have too much even if you get none of it now or ever, until you’re 24 and if either or both parents refuse then you’re cut off from all financial programs and are charged the highest possible price.  This is outrageously unconstitutional on its face as it declares a parent an indentured servant to the state and penalizes a young adult due to no act of their own.  There’s a pretty-clean argument that this system, in fact, constitutes extortion and since there are multiple parties including the college involved it’s Racketeering.  Finally the parents are not entitled to any sort of information or input on their former kid’s grades, progress, choice of major or spending while in school — whether via loans or otherwise.

Then the Federal Government went further in the wake of 2008 and basically took over educational lending entirely.  The exception remaining are “PLUS” loans which are actually co-signed by the parents of said adult children but even those that are not federally-made remain non-dischargable in bankruptcy.

Let me be clear: There is almost-never any reason for any person to take out any “educational” loan of any sort to attend a post-secondary educational institution.  PLUS loans are purely abusive in every single case and ought to not be outlawed they ought to be considered racketeering on their face as they attempt to coerce parents into being responsible for another adult’s decisions and outcomes.

It gets even worse in the post-graduate world because for Masters and PhD work there are essentially no grants of any sort — only loans.  There are plenty of Masters and PhD fields that do not reliably return salaries in the six figure range and many fields, particularly in the arts and social sciences, where a Bachelors degree is close to worthless as anything more than an admission ticket to graduate school!  As just one example National Geographic is rumored to refuse to even consider employing someone in their writing, photography or graphics arts areas without a post-graduate degree in some area of fine arts — and they’re not alone.  Look at virtually any social science field and you will find myriad “Masters+” requirements, effectively forcing six to eight year college attendance. With educational loans being amortized over 10 years a $100,000 college debt @ 4% requires just over $1,000 a month in payments to be made after tax, which means you need $12,000 of free cash flow after all taxes and living expenses to be able to afford it.

What salary must be earned to do this assuming (1) you own a house or rent something at a similar capitalization rate to the principal and interest on same, (2) you own a car with a modest ($250) monthly payment amount (note that this is roughly half the going payment for car loans today) and (3) you have no other consumer debt whatsoever, and take none in the future (hopelessly optimistic based on current statistical data.)

Let’s look at the basic rules of finance: You can afford 28% of your gross income on P&I (or rent) for your residence and no more than 36% to service all debt — including the $12,000 for college loans.

So let’s assume you pay $800 a month for either rent or P&I on a house.  This is possible in many communities, but not in most large cities; there it’s at least 50% higher.  We’ll also add the $250 car payment monthly, and then the $1,000 for educational debt.

This amounts to $2,050 monthly in mandatory free cash flow.  For that to be no more than 36% of gross income we thus see that you need a $5,700 gross income per month to meet this expense ratio and that allows for no mistakes, no savings and no additional consumer debt of any sort such as a credit card or otherwise.  It is extremely aggressive, in other words in that one serious financial accident (e.g. a bad car wreck, illness, layoff, etc.) leaves you screwed.  The basic rules of reasonable safety require that you have six to 12 months of gross income stashed which means you need at least $35,000 in cash in the bank in addition to have a reasonable level of financial safety.

This is nearly $70,000 a year in salary plus another $35,000 in the bank which is wildly beyond first-year salaries and savings capacity for virtually all fields with a Bachelors degree.  In fact for 10 broad categories including engineering and communications the first-year salary average in 2015 was just $50,000 or roughly 40% short of the minimum requirement to be self-sufficient and on the bleeding edge of financially dangerous!

What if you get out of college with $50,000 in total debt?  That helps a lot and drops your mandatory spend to about $1,500.  Now you just make it as an average person if nothing goes wrong.

Does that make it a reasonable deal?  No, and here’s why:

1. That $50,000 wage survey value is an average.  Half the people will do better, half worse.  If you’re in the bottom half you’re hosed and in the street immediately.  Taking any bet that is a literal coin-toss between barely making it and falling off the cliff is insane.

2. More importantly you might not finish college, either in 4 years (in fact the majority of students do not finish “on plan” in 4 years) or worse, at all!  The odds of you being able to make those payments if you don’t get the degree are an effective zero.  The odds of making the payments if it’s $75,000 in debt instead of $50,000 because it takes you six years to finish is likewise much closer to zero.  While some cases of people finishing late or not at all are their fault this is not exclusively so; you could have a serious accident or illness that forces you to interrupt your college studies, for example which is completely beyond your control and yet if you leave school not only do you owe all the money you borrowed payment must begin almost immediately.

3. If you default there are statutory penalties and interest that are immediately applied and cannot be renegotiated or removed.  These will add as much as 50% to the debt immediately and irrevocably!

4. Finally, if you can’t pay you also can’t declare bankruptcy and get out of the debt.  It will literally follow you until you die and they will take your Social Security check if you live that long — after applying interest for all those years!  If your parents are dumb enough to have co-signed they will take everything they have too, even their house in states that protect it from bankruptcy.  Why?  Because when they garnish their income your parents will not be able to make the property tax payments and thus they’ll be forced to sell which immediately exposes the net cash that can and will be seized.  There are many “Boomers” who have made this mistake and had any hope of retirement permanently destroyed.  If you’re a young adult and allow your parents to sign on these loans, say much less ask them to you are a monster and deserve to be BBQd alive and eaten, and yes, I mean that literally.

It is in fact the design of these “lending” programs and the FASFA that have led to the cost of college escalating.

Why?

Because human nature works this way; if you financialize something then those who provide the financing will seek to take from the consumer (that’s you, as a student and your family) all but one dollar of value you gain from whatever it is that you’re buying — in this case the education you receive.  This has led colleges to add five times as many “administrators” as Professors, all of whom do not teach one single student, while they build gilded edifices including “dorms” and “food courts” most akin to luxury condominiums and five-star restaurants!  Not one penny of that money goes to improving your understanding of Calculus, Engineering or Fine Art but with everyone making a percentage it sure does go to the college’s employees, administrators and suppliers, driving costs up at ridiculous rates while doing exactly zero to improve the quality of said “education.”  In fact it can be argued that ridiculous incentives are created to pass failing students since essentially none of the funds go to actual education and all go toward those dorms, food and other administrative things which continue to exist and be profitable whether you learn anything or not!

The most important take-away from such a process is this:

The college only cares about taking all but one dollar of the earnings potential they impart on average; whether you personally get something more than a dollar out of your education or lose everything doesn’t matter to them one bit as you are nothing more than a number on a spreadsheet.  That is a fact because they are protected from losing anything irrespective of how well you make out — or don’t, as the case may be.

Now let’s look at Health Care and you’ll notice the exact same dynamic in play — but through slightly different means.

Health care firms are notorious for pricing procedures and drugs on what they claim is the “imputed value” of the procedure instead of what it costs to perform or produce.  In other words if a drugmaker comes up with a cure for Hepatitis C (which they did) they will price it at whatever they think the average person with the disease would either spend on health care for the rest of their lives if the drug did not exist or worse, what they might earn if cured!

This is the exact dynamic that has driven up college costs and it’s everywhere in the health field.  You never hear drug makers, doctors or hospital administrators talk about what it costs to make a drug, to extract a tooth, to remove an appendix or to birth a child.

They all talk about what the perceived value of that thing is as justification for their price.

This model cannot work in a competitive market because the floor on prices in a competitive market is set by cost, not value.  If someone tries to price a product or service beyond a reasonable profit they provide an immediate incentive for someone else to come along, enter the market and undersell them.

Why doesn’t that happen in the medical (and college) field?

It fails to occur because of artificial and illegal constraints these businesses place on competitive entry.

Both businesses severely restrict competitive supply — colleges via the “accreditation” process (an unaccredited degree is likely worthless) and medical providers via both overt restraint of trade (including restricting the supply of doctors through college admission constraints!) and a combination of CON laws and state licensing requirements that allow them to deny entrance or exit of competitors, along with the supply of doctors, directly.  In addition the medical field refuses to publish a price list and rampantly engages in both collusion and discrimination based on what else you buy from unrelated parties.

I note that the government has passed consumer protection laws at both Federal and State levels that bars such behavior, if it tends to lessen competition, as an illegally tied coercive sale but both federal and state governments refuse to enforce these laws against anyone in the medical field.

Think about how crazy this all is in the context of your car.  How long would the local gas station last if they didn’t post a price for gasoline and how much you paid was only knowable after you pumped the gas?  Worse, what if the price varied by as much as 1,000% depending on which car insurance company you used — with some being “out of network” and thus forcing you to pay $25/gallon while others left you billed at $2.50/gallon?

One local gas station would go out of business in a day if they tried this crap.  If all the gas stations got together with the car insurance companies and did this in a given town, or any reasonable percentage of them, the government would show up with handcuffs and padlocks within an hour, throw everyone involved in prison and chain the doors closed because such conduct violates not only consumer protection laws but federal criminal laws on the books for more than 100 years in the form of 15 USC Chapter 1.

The same thing would happen if the car dealers got together and tried the same thing with repairs; your oil change is $50 if you’re insured with Allstate, $100 if with State Farm and $5,000 if with Progressive because they’re out of network.  Oh, and you can’t buy the oil filters and oil to do it yourself either as they would refuse to sell either to you since you’re not “licensed” as a car repair shop.

Incidentally car dealers used to refuse to quote prices claiming they “couldn’t” tell what was wrong until after they did the work, and before the Monroney Sticker (the window sticker on new cars) they also refused to post prices on new cars as well.  If you’re old enough you remember the exposes’ that the media ran on this scam in the car business where they sent in a little old lady with a car that had absolutely nothing wrong with it, or some minor $20 part that needed replaced and came out with a $1,000 bill.  Today that doesn’t happen any more and you get a binding estimate before the first wrench turns, along with a federal requirement to post a sticker price on every new car because the government at both the state and federal levels passed laws barring deceptive practices and told the dealers and repair shops that if they didn’t cut it out people would be going to prison.

Folks, there is nothing effective that will be done about college education or health care until we put a stop to the forced assumption of risk being thrown off the people making the loans and prosecute the colluders, price-fixers and other violators of both consumer protection and federal anti-trust laws.

Period.

Let’s ask the question another way: Since basic human nature will seek to maximize the dollars extracted from you why doesn’t this same thing happen with Televisions or Computers in the local Best Buy?  In other words since it is human nature to seek to maximize profit why is it that a 4kTV is under $1,000 today and a 1080p (much inferior) TV was $3,000 a few years ago?  Why didn’t, in short, the TV makers and Best Buy do the same thing to TV prices that colleges did to college prices or hospital prices?

Simple: There is effectively no recourse if you don’t pay at Best Buy and Best Buy can’t refuse to give you a price until after the TV is in your house because it’s both illegal and Wal Mart down the street has posted their prices!

Further if Best Buy and Wal Mart try to keep Joe’s Appliances from opening down the street and selling TVs because Joe noted that both existing stores were selling at an uncompetitive price the executives of both Wal Mart and Best Buy would face prosecution.

Finally the best case for Best Buy if you don’t pay is that they can come repossess the TV.  But a year from now, when you don’t pay, the $1,000 television is worth $400!  They can’t take your house or Social Security check.  In other words they have no recourse if they try to jack up the price through financializing the transaction because when you default they lose money.  It is exactly that counterbalance that prevents the financialization of television purchases (which is extremely common; many are in fact bought on credit) from leading to $20,000 TV sets and people losing everything because they signed on the line instead of paying cash.

In short competition is the check and balance on what is otherwise an entirely expected human behavior that will and does screw you out of every single penny you have.  Without competition there is nothing that will prevent this exploitation especially when the good or service is something that is believed to be “essential” such as food, gasoline, medicine or education.

As a nation we must stop this crap.  If we don’t the medical scams will destroy our economy within the next four to five years, and the educational scam has already destroyed the earnings power and forward outlook for millions of young Americans.

That blood is on your hands.

This nation’s people collectively and individually own it — all of it — and that all those “smiling faces” can show up on mainstream TeeVee without a line of pickets 20 people deep around the studio says everything I need to know about the people of this nation’s willing consent to the daily financial******you not only take dry yourself but serve up on those who have no voice — including those who are not yet born.

I find especially vile those who preach or demonstrate about the evil of abortion while sitting on their ass in this regard.

Yes, I understand that resolving these issues will cause a large short-term drop in GDP (15% or more) and that would be viewed as “bad” by those in power — and the administrators in those hospitals and colleges!

But if the local hospital or college went out of business because it had borrowed too much money and, faced with an 80% reduction in revenue they couldn’t make the interest payments on the debt that’s good, not bad!

Why?

Because there are plenty of people with money out in the economy and they’d jump at the chance to buy a hospital or college at 10% of the cost of building a new one, complete with lecture halls or operating rooms and, just as importantly, no existing employment agreements that drive up the cost of operation.

With that 90% discount on the capital equipment necessary to provide those services and no existing employment agreements, freeing the new owners to negotiate from the ground up prices would crash instantly by more than half and that’s good if you’re someone who needs health care or wants an education — not bad.  Yes, it would bankrupt a lot of companies and colleges who took out stupid loans but it would benefit you tremendously along with those who didn’t do stupid things and thus could buy those assets for pennies on the dollar and make a nice profit while providing you with services you wish to buy at a rational, market-based price.

Don’t tell me it’s impossible to do this in the medical field because it clearly, on the evidence, is not.  Right now you can get on a plane, fly to India, and have bypass surgery done for $2,000.  The doctor was trained in the United States or one of the other world-class international hospitals, the equipment was all made by the same firms that make it here in the US, the hospital rooms are private and appointed like a luxury hotel and the complication rate is lower than the best hospitals in the United States while the price is 1/50th of what it is here.  Why? No financialization at all. Cash on the table or no procedure — period.  And finally actual competition is present.

Even in the United States you can go to the Surgery Center of Oklahoma where there’s no formal financialization — just cash.  Unfortunately here the supplies and equipment are still price-controlled so it’s only 1/10th of the price in the hospital across town instead of 1/50th, but that’s still a hell of an improvement.  Oh, and the complication rate is lower than those other hospitals here in the US as well.  Why?  Because complications are included in the price at the Surgery Center (and not at the hospital) so there’s a very big incentive for them to not screw up (and give you an infection, for example.)

Likewise, how is it that we put men on the moon more than once with college educations that cost 1/10th of what they are today in inflation-adjusted dollars?  It’s simple — dorms were block concrete, chow was a mess hall and there were damn near no administrators to be found — just professors.  If you borrowed you did it privately and if you couldn’t pay the lender ate it, so nobody would lend you money unless they were real sure you’d pay it back.  No college could price credit hours, dorm rooms and food like they do now because nobody was going to be able to stroke checks for it and if someone borrowed and couldn’t pay the lender wound up chewing his own arm off.  In short there was no “free money”, there was no enslaving either the student or their parents and bad financial decisions were taken by the person who made them instead of shoved off on others.

Are you going to stop this America?  Are you going to demand that our legislators repeal all college financing protections including the bankruptcy law changes and FASFA — right ****ing now?  Are you going to demand that colleges and businesses that collude to “require” degrees in unregulated businesses be prosecuted for anti-trust, extortion and racketeering?  Are you going to demand that hospitals, drug companies and your local doctor’s office post prices and charge everyone the same amount under penalty of prosecution through long-standing consumer protection laws at both the state and federal levels, and that states either repeal their “CON” laws now or be sued by the DOJ for anti-trust?  Are you going to tell Trump, the Republicans and Democrats that you will not accept either “Obamacare” or “repeal and replace” without prosecution of those who are fixing prices and extorting the public with their “Explanations of Benefits”, along with a refusal to post prices, provide pre-procedure binding quotes and bill in a level fashion at all?  Are you going to demand that any hospital that shows up next to someone in pre-op who has already been drugged with sedatives to sign a blanket consent form be criminally prosecuted for intentionally addling someone’s consciousness and taking advantage of them exactly as you would expect someone who Roofie’s a woman’s drink to be?  Are you going to demand that the import ban on drugs be repealed now and that any drug company that engages in differential pricing across borders or other anti-competitive behavior, including bogus patent extension filings that occur on a literal daily basis today be hit with indictments and prosecution under 100+ year old laws that forbid such acts?

Are you willing to enforce said demands with any and all lawful actions available to you, including sign-waving protests, voting people out of office, showing up at town halls and confronting these jackals face-to-face, refusing to associate with anyone involved in these scams in any social or professional setting while being very public about why, telling your Alma Mater to go **** a duck when the fundraisers call or write, picketing the homes and offices of lawmakers, college administrators and hospital executives along with their families who all personally profit from their activities, refusing to work for them or serve them in your profession and even extending your activism up to and including a general strike that you will not return to work from until and unless all of the above happens?

No?  None of the above, you say?  You’re gonna cheer for your favorite college team that’s screwing young adults in the ass 5,000 at a time and buy football tickets instead?

Well then **** y’all because I’m not paying for your decision to sit on your ass or, even worse, cheerlead for not only your own financial destruction but also that of every young adult and child in the nation including your own.

For more than ten years I’ve made writing columns on the economy, markets and the abuses served up on America a priority.  I’ve written those columns from all four corners of the country, I’ve taken my laptop and done it on vacation, I’ve written on news of the day that pops up in the middle of the night and I’ve got dozens of data tables that I have to update on everything from employment to the Z1 flow-of-funds to consumer debt.  I’ve written the checks for colocation space and servers, business-class Internet complete with a conduit feed here and more.  I pay the bill every month for the additional power and A/C consumed by the equipment that runs here 24×7 and I keep a backup set of both data and hardware “just in case” — and those who have been around since ’07 have seen times it was needed.  Yet for all of this and pointing out both the inevitable math — there is no arguing with arithmetic, nor can political considerations wave it aside — nobody gives a ****.  There’s nothing but excuse after excuse, never mind the clear evidence that your children and those who came of age during this time are being screwed blind (gee, why do you think all those millennials are living at home and many aren’t bothering to work?) and you are about to take it in the pooper in a big way within the next few years, not decades from now.

I’ve cut it way back over the last couple of years but the few articles here and there still don’t get through and generate anything more than a few clucks of “oh yes, we see it.”  Not one bit of activism.  Every now and then they generate a spate of “guns, gays and God” in response and I get out the banhammer to knock that sort of stupidity into the next county.  Three or four articles a day didn’t do jack and focusing on the two largest areas of the screwing that will come apart and destroy the economy over the last two years hasn’t changed a damn thing in terms of the number of people who will get off their ass either.  The count is a statistical zero — and that’s a fact.  The people of this country are all engorged in selfie nation telling yourselves how pretty, sexy, masculine (ha!) or macho you are on Facesucker, Instrascrew or finding someone to diddle for a night — or an hour — on Tinder.

That’s what the data says, and what’s where the money is going and I need only look at the price of Facebook’s and Amazon’s stock to see it.

Well y’all have at it and y’all deserve what’s coming.  For my part  “winding it down” is on its way to be taken to a whole new and much lower level.

I’m not starting a new business, despite having a few of them in my back pocket. I won’t take business risk, I won’t create jobs and I won’t hire. It won’t be all that long before I tire of paying that outsized internet bill and chop that too, since most of it is there so you can consume this — then immediately discard the mathematical truth of it all as unworthy of action or response. I won’t entice my offspring to do something that is financially suicidal.  I will evade every bit of the scam to the maximum legal extent available to me, and I’ll evade all the people involved in it too, with my middle finger erected in their face if they won’t take the hint.  I won’t partake of the medical and educational scams you all explicitly and implicitly support and I will label every one who sits on their ass or preens on Facebook a scum-sucking bastard unworthy of the air consumed. If I require medical attention and can ambulate to somewhere it can be provided at a rational cost I’ll go there and deny all of your cronies a single penny of my money.  If I can’t for whatever reason then I accept death and will use my last breath and beat of my heart to give everyone in both areas of this scam — along with all who silently refused to act — a big fat bird.

Let me know what your decision is but remember the words of Rush in “Free Will”:

If you choose not to decide you still have made a choice.

I’ve made mine and now it’s your turn to make yours.

I talked about this a while back.  I had warned that obama is going to come after retirement accounts.  I warned about this back in 2012.  We can trust obama and/or the gov’t right?  Socialized medical care was supposed to save us money right?  How did you like the premium increases?  Nice savings.  As long as obamacare is law it does not matter who the president is the gov’t will continue this push.  We need to not only change the president but both congressional houses as well.  That has gotten more difficult with the gov’t sanctioned invasion that is happening right now.  What’s worse is the fact the many american citizens ACCEPT this as the norm.  Many of these “immigrants” are from countries with despotic or socialist backgrounds so they will be happy to vote for the gov’t they had regardless of what that means for the true citizens of this country.  So get ready for folks to move out of private retirement accounts to government ones because of these new regulations.  Of course those will be properly run right?  Sure thing.

According to the National Review Hotline, Kathrina Tugadi owner of Seattle’s El Norte Lounge, no longer hires musicians for her restaurant, she said she can’t justify expenses that don’t directly “add to the bottom line.” And, she says, hours will have to be cut: El Norte Lounge plans to stop serving lunch and only serve dinner.“I am concerned about my business and others in the community, but it isn’t just about any one business. It’s about how the entire economic community,” she said. El Norte may be unable to remain open once the ordinance is fully in effect, she said. Even Pagliacci Pizza, a Seattle-area pizza chain, is moving its call center and some of its production facilities outside the city. That’s a lot of job loss, a lot of new people with a new wage of ZERO.Socialist Council-member Kshama Sawant was the main proponent of the $15 ordinance. She and her supporters denied that the policy change would hurt businesses in the city. In one interview, Sawant said there need be “no unintended consequences.”

via SEATTLE’S MINIMUM WAGE CRASH: $15 to ZERO! Profits Tumble!.

An on-again, off-again move by the Obama administration to scrap the federal gas tax in favor of a pay-per-mile fee would boost the tab to Americans as high as 250 percent, raising their current tax of 18.4 cents a gallon to as high as 46 cents, according to a new government study.

But without a tax increase, said the Government Accountability Office study, the government’s highway fund is going to go dry. One reason the fund is going broke: President Obama’s push for fuel efficient cars has resulted in better mileage, and fewer stops at the pump.

The GAO study is just the latest review of federal spending that paints a grim picture of the nation’s infrastructure. Just keeping spending at current levels, the GAO said, would require a near doubling of the gas tax to 32 cents a gallon, and that would jump to as high as 46 cents should the federal government add spending to fix crumbling infrastructure and build new roads.

The average driver pays about $96 a year in federal gas taxes, said GAO. Should the administration seek to raise the highway trust fund from $34 billion to the $78 billion needed to fix and maintain roads, that could rise to $248. Translated into a pay-per-mile plan, drivers would face a tax of 2.2 cents per mile compared to the 0.9 cents they pay now. Trucks would pay far more.

“We modeled the average mileage fee rates that would be needed for passenger vehicles and commercial trucks to meet three illustrative Highway Trust Fund revenue targets ranging from about $34 billion to $78.4 billion per year. To meet these targets, a driver of a passenger vehicle with average fuel efficiency would pay from $108 to $248 per year in mileage fees compared to the $96 they currently pay annually in federal gasoline tax,” said GAO.

via New pay-per-mile scheme would boost taxes 250 percent | WashingtonExaminer.com.

this so called ‘fiscal cliff” is merely a smokescreen for the Obamacare taxes that start kicking in from now until 2014.

 

Even if lawmakers somehow stop the Bush-era tax rates from expiring, taxes are still expected to rise on Jan. 1 — thanks to a trio of new fees tied to the federal health care overhaul.

The IRS this past week published rules for some of the first major taxes meant to help pay for President Obama’s massive insurance coverage expansion. Together, they will raise investment and income taxes on top earners and impose a separate — and controversial — tax on medical devices.

The bundle of fees has been largely overlooked as lawmakers and the White House bicker over the Bush tax rates, with Republicans demanding they be extended for everyone and Obama insisting rates rise for top earners. But that same group of earners is already in the crosshairs under the ObamaCare tax rules published this week.

Starting Jan. 1, investment income for individuals earning over $200,000 and households earning over $250,000 will be subject to a new 3.8 percent tax. Further, regular income above those thresholds will be hit with a .9 percent Medicare surtax. Should the Bush tax rates expire for those workers, those increases will be compounded.

But the rather obscure medical device tax is the one that has stirred the most controversy in Washington and the business community. This week, groups and lawmakers renewed their calls to repeal it as the IRS published its final rules.

“This week, the Internal Revenue Service outlined which medical supplies and technologies will be subject to a tax. Now, everything from latex gloves to pacemakers will become more expensive and in some cases, more scarce,” Rep. Tom Price, R-Ga., said in a statement. “The tax on medical devices harms America’s ability to conduct the necessary research and development to maintain our global competitiveness, resulting in the loss of tens of thousands of jobs and fewer groundbreaking innovations in this field. With millions of Americans unemployed, this simply makes no sense.”

The Affordable Care Act imposed the 2.3 percent tax on medical devices with the goal of raising nearly $30 billion over the next decade.

Equipment makers, though, argue that the tax ends up being much higher than that since it’s on gross sales. One industry spokesman estimated earlier this year that the impact on actual earnings is more like 15 percent.

Already, some have warned that the tax will stifle growth. Indiana-based Cook Medical earlier this year announced it was scrapping plans to open five new plants because of the tax.

via Deal or no deal, ObamaCare taxes poised to hit next month | Fox News.

I’m looking at putting a 250k ceiling on my earnings right now too..i’m nowhere near that but if that’s what i have to do to avoid a 50% increase in taxes that’s what i’ll do.

 

Instapundit » Blog Archive » SO YESTERDAY’S DISCUSSION OF MARGINAL TAX RATES raises a thought: In today’s freelance economy, wil….

If you have any kind of gov’t aided pension like roth or 401k..anything tax free…get that money out now…otherwise the gov’t is going to take it within the next 4 years.  Maybe 8 if Obama amends the constitution for a 3rd term.

 

A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning.

The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.

“This hearing was set up to explore why Americans are not saving as much for their retirement as they could,” explains National Seniors Council National Director Robert Crone, “However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up.”

A representative of the liberal Pension Rights Center, Rebecca Davis, testified that the government needs to get involved because 401k plans and IRAs are unfair to poor people. She demanded the Obama administration set up a “government-sponsored program administered by the PBGC (the governments’ Pension Benefit Guarantee Corporation).”

Such “reforms” would effectively end private retirement accounts in America, Crone warns.

“These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own.The Government could then take these trillions of dollars and redistribute it through this new national retirement system.”

“This effort ultimately is designed to grab the retirement nest eggs of America’s senior citizens. This new government annuity scheme, even if it is at first optional, will turn into a giant effort to redistribute the wealth of America’s older citizens,” explains Crone. “This scheme mirrors what I expect the President will try to do with Social Security. He wants to turn that program into a welfare program, too.”

via » Government Sets Its Sights on Private Retirement Accounts: “Giant Effort to Redistribute the Wealth of America’s Older Citizens” Alex Jones’ Infowars: There’s a war on for your mind!.

Well now.  I suggest folks you read the entirety of the article because this first paragraph only gives you a taste.  it is very interesting that in the first bankruptcy the Teamsters union was part of an investment group that tried to buy hostess.

 

Perhaps one of the most interesting aspects of the just announced Hostess liquidation, one that will be largely debated and discussed in the media, or maybe not at all, is the curious cast of characters and the peculiar history of this particular bankruptcy. Some may not be aware that the company’s Chapter 11 (or colloquially known as 22) bankruptcy filing this January, which today became a Chapter 7 liquidation, was the second one in the company’s recent history, with Hostess, previously Interstate Bakeries, emerging from its previous protracted multi-year bankruptcy in 2009. What is curious is that its emergence had all the drama of a anti-Mitt Romney PAC funded thriller, with a PE firm, in this case Ripplewood holdings, injecting $130 million in order to obtain equity control of Hostess as it was emerging last time. There were also more hedge funds, investment banks, strategic buyers, politicians involved in this particular story than one can shake a deep fried numismatic value Twinkie at. More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then “bad.” Only this time there is a twist: because it wasn’t really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters’ long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.

 

One more excerpt then you have to read the rest for yourselves:

 

The critical issue in the bankruptcy is legacy pensions. Hostess has roughly $2 billion in unfunded pension liabilities to its various unions’ workers — the Teamsters but also the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (which has largely chosen not to contest what Hostess wants to do — that is, to get out of much of that obligation). If the bankruptcy court lets Hostess off the pension hook — which often happens in these cases — it only moves the struggle outside the courthouse, and the ante goes up. For the Teamsters can then call a strike — which its Hostess employees have already ratified by a 9-to-1 margin. If the court doesn’t grant relief, Hostess can seek liquidation, which would mean that some creditors get some money, but equity would be gone for good, as would a lot of jobs. Either way, each side holds a nuclear warhead with which to annihilate the company

via The Hostess Liquidation: A Curious Cast Of Characters As The Twinkie Tumbles | ZeroHedge.

Several restaurants, hotels and retailers have started or are preparing to limit schedules of hourly workers to below 30 hours a week. That is the threshold at which large employers in 2014 would have to offer workers a minimum level of insurance or pay a penalty starting at $2,000 for each worker.

The shift is one of the first significant steps by employers to avoid requirements under the health-care law, and whether the trend continues hinges on Tuesday’s election results. Republican presidential nominee Mitt Romney has pledged to overturn the Affordable Care Act, although he would face obstacles doing so.

Let’s not mince words — that’s a 25% reduction in the impacted worker’s gross wages!

It’s already started with some “pilot projects” among certain employers, and this will spread.  Bank on it.  The results will be catastrophic for people in this income class, as on top of having gasoline double in price over the last four years along with other forms of energy rising precipitously along with food and health care now you’re going to see a 25% reduction in their working hours, meaning that their income is going to come down by that same 25%!

Both Darden (corporate parent of Red Lobster and Olive Garden) and some Subway franchises have been testing these changes already.  When the first “real” bite comes from Obamacare in as of January 1st 2014, expect all the lower-wage service industries to do exactly this.

via Obamacare Is About To Whack Personal Income in [Market-Ticker].

The below isn’t bold it’s nearly stupid.  If you are using a gov’t mechanism to get around your entity having to pay taxes you shouldn’t be surprised when said gov’t pulls on your chain..because you’re wearing one!  If you don’t want the gov’t “interfering” then give up the npo and you can freely talk about anything you want.

 

Some pastors have been brave enough to rise up and do exactly that.  This weekend is “Pulpit Freedom Sunday” in churches across the country.  Pastors in pulpits across the country will not only endorse candidates from the pulpit, but will also send the tapes of the services directly to the IRS.  Now that’s bold!

via Pastor to Taunt IRS Over Free Speech – Gina Loudon – Townhall Finance Conservative Columnists and Financial Commentary – Page 1.

This is SOOOOOOOOOOOOO True..in every single word.

 

Obamacare Summed Up in One Sentence – YouTube.

Read the entire article.  It’s breathtaking.

 

Sunday will mark the start of the 100-day countdown to “Taxmageddon” – the date the largest tax hikes in the history of America will take effect.  They will hit families and small businesses in three great waves on January 1, 2013:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010).  The following tax hikes will occur on January 1, 2013:

Personal income tax rates will rise on January 1, 2013.  The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority of small business profits are taxed).  The lowest rate will rise from 10 to 15 percent.  All the rates in between will also rise.  Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.  The full list of marginal rate hikes is below:

-The 10% bracket rises to a new and expanded 15%

-The 25% bracket rises to 28%

-The 28% bracket rises to 31%

-The 33% bracket rises to 36%

-The 35% bracket rises to 39.6%

Higher taxes on marriage and family coming on January 1, 2013.  The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable income.  The child tax credit will be cut in half from $1000 to $500 per child.  The standard deduction will no longer be doubled for married couples relative to the single level. 

Middle Class Death Tax returns on January 1, 2013.  The death tax is currently 35% with an exemption of $5 million ($10 million for married couples).  For those dying on or after January 1 2013, there is a 55 percent top death tax rate on estates over $1 million.  A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors on January 1, 2013.  The capital gains tax will rise from 15 percent this year to 23.8 percent in 2013.  The top dividends tax will rise from 15 percent this year to 43.4 percent in 2013.  This is because of scheduled rate hikes plus Obamacare’s investment surtax.

via Americans for Tax Reform : 100 Days Until Taxmageddon.

These pastors are forgetting you are using a gov’t instrument to get around paying taxes.  Because you are using a gov’t instrument the gov’t can most assuredly do this.  Want freedom from gov’t interference?  Drop your NPO status voluntarily.  if you are paying taxes as per the laws of the land you can preach anything you want.

 

More than 1,000 pastors are planning to challenge the IRS next month by deliberately preaching politics ahead of the presidential election despite a federal ban on endorsements from the pulpit.

The defiant move, they hope, will prompt the IRS to enforce a 1954 tax code amendment that prohibits tax-exempt organizations, such as churches, from making political endorsements. Alliance Defending Freedom, which is holding the October summit, said it wants the IRS to press the matter so it can be decided in court. The group believes the law violates the First Amendment by “muzzling” preachers.

“The purpose is to make sure that the pastor — and not the IRS — decides what is said from the pulpit,” Erik Stanley, senior legal counsel for the group, told FoxNews.com. “It is a head-on constitutional challenge.”

Stanley said pastors attending the Oct. 7 “Pulpit Freedom Sunday” will “preach sermons that will talk about the candidates running for office” and then “make a specific recommendation.”

“We’re hoping the IRS will respond by doing what they have threatened,” he said. “We have to wait for it to be applied to a particular church or pastor so that we can challenge it in court. We don’t think it’s going to take long for a judge to strike this down as unconstitutional.”

An amendment was made to the IRS tax code in 1954, stating that tax-exempt organizations are “absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.”

“Violation of this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise tax,” the IRS says in its online guide for churches and religious organizations seeking tax exemption.

via Pastors pledge to defy IRS, preach politics from pulpit ahead of election | Fox News.

I am going to cross post this to both blogs as this affects me both as a person and a business man.

 

Now consider this — the PPACA sets forth a “fine” (tax) of $2,000 per employee for a business that has 50 or more and does not provide “at least” the minimum “insurance” to all.

There is no health care plan I’m aware of that a business can buy today that costs less than $2,000 per employee per year, and which also meets the requirements in the law.  None.  That was almost impossible to meet back in 1995 for a healthy, 18 year old insured single male.  It’s flatly impossible now and it’s doubly-so if your workforce has other than 18-year old single, healthy males in it.  I know this to be factual because I was responsible for buying it for our employees as a CEO of a company.

Therefore the incentive is for all businesses to drop health care. 

Period.

Second, your choice is to either (1) buy and have said plan (whether through employment or individually) or pay a “fine” (tax) of 1% of income (increasing to 2.5% of AGI in 2016.)  The minimum “fine” is $95 starting in 2013, rising to $695 in 2016.  The average family income is about $50,000/year, which means that the fine (tax) will be $1,250 in 2016.  It’s less now.

You cannot buy health insurance at their “minimum level” for anything approaching $1,250 a year no matter how healthy you are at any age. 

The law prohibits insurance companies from charging you more if you’re sick, or refusing to cover you at all.  They must accept everyone on equal terms.

Therefore:

Businesses will drop coverage; it’s cheaper (by far) for them to pay the fine and, for those under 133% of the federal poverty level, those employees can go onto Medicaid.  This is a “family of four” income of $31,900 (as of today; it will go up of course.)  That’s roughly the second quintile.

Individuals will drop coverage and pay the fine, since it’s far cheaper than to buy the “insurance.”

Both will buy the “insurance” only when they get sick, since they cannot be upcharged.

The cost of “insurance” will thus skyrocket to 10x or more what it costs now, just as it would if you bought auto insurance only after you wrecked or homeowners insurance only after you had a fire.

At the higher price nobody will be able to afford to buy the insurance at all, since that will be indistinguishable from just paying for whatever is wrong with you, plus the insurance company markup.

In very short order the entire medical system and health insurance scheme will collapse, leaving only two choices — either a return to free market principles (including all I’ve argued for since this debate began) or a single-payer, fully-socialized system ala Canada.

You can bet the government will continue to try to change the terms of the deal — including ramping up the tax/fine and other games, to prevent this outcome, but they will fail.

Now the question becomes this:

Which Presidential political candidates have told you the above, and what are their answers to this dilemma?

Let’s go down the list.

We know what Obama’s is — he passed it.  You will lose your private health care under Obama.  Period.  We are headed for a fully-socialized medical system and a collapse of the current medical paradigm under Obama.

We know what Gary Johnson’s position is — he wants to “block grant” all Medicare and Medicaid to the states, cut the amount of money in the budget (all line items) 43% and repeal Obamacare (including the mandate.)  But he refuses to demand an end to the cost-shifting where Juanita the illegal Mexican immigrant who is 7-1/2 months pregnant while drug and alcohol dependent shows up in the hospital, in labor, and foists off a $2.5 million NICU and birth expense bill on you!  He also refuses to stop the drug companies from effectively forcing Americans to bear the cost of all drug and device development and he has refused to put a stop to differential billing.  The latter two only exist because of explicit federal laws that make lawful in the health industry market behaviors that are illegal in virtually every other line of work (see The Sherman Act, The Clayton Act, and Robinson-Patman for starters.)  All of these facts are why the costs are ramping in the first place, which means his plan will simply force the States into bankruptcy and continue screwing you at the same time.

We don’t know what Romney’s plan is in detail.  He’s been oddly silent in that regard.  He says “Obamacare is not the answer” but he passed it as Governor on a state basis!  He too advocates nothing to put a stop to the cost-shifting and anti-competitive acts of drug and device makers nor hospitals and other medical providers.  He too wants to block grant Medicaid but that does nothing to address the problem and will simply bankrupt the state budgets (as noted for Johnson.)   Conspicuously absent from Romney’s plan (as is true for Johnson) is (1) a repeal of EMTALA, (2) a demand for level, consistent pricing irrespective of how one pays for a service (3) and a demand to remove anti-competitive laws protecting differential billing across state and national boundaries (e.g. Viagra for $2 in Canada .vs. $20 here) so that Americans are not forced to subsdize everyone else in the world and you pay the same price as the guy next to you in the hospital for the same product or service, instead of 2x, 3x, 5x, or even 100x as much.

So we have three Presidential candidates, none of which will do a damn thing to fix what’s wrong with health care.  All three are promoting a path that will bankrupt the States, bankrupt the Federal Government, bankrupt you or all three.

via PPACA And The Death Of Medical Care (And Choice) in [Market-Ticker].

This bill will do nothing to folks such as those mentioned in this article. It will only increase the flight from our country and they will all raise the middle finger since they’ll never have to come back to this country nor touch any operations that have any kind of business nexus in it either.  F-U money is what these folks have and they will utilize said Middle Finger power quickly.

 

Theres dumb and then theres real dumb.  This is in the latter category:During the 2012 election cycle Democrats are positioning themselves as the “defenders of the middle class,” and Sen. Bob Casey Jr. is honing that message by attacking the top .001 percent of income earners, including Facebook co-founder Eduardo Saverin.Along with NY Sen. Chuck Schumer, Casey is introducing a bill that would prevent U.S. citizens from renouncing their citizenship in order to avoid taxes.Good luck Senators.People with enough money to care about this also wont care about your bill.  Theyll leave, take their money with them, and never come back.  You can chuckle about how “you got them” but the truth is that they got you, and all of America.Theres a point where people get what is commonly called “fuck you” money.  As the name implies it enables them to say exactly that to anyone they disagree with and who pisses them off — including petulent little Senators and their petty games.  Facebooks co-founder has no reason to come back into the United States, and you cant reach him beyond our borders, so what I expect youll see is a giant middle finger erected in your direction — from Singapore.There is no material revenue impact from this bill that will be forthcoming.  There will, however, be a capital drain that will accelerate and harm America.And when it does, it will be your fault.

via Senators File “Screw Capital” Bill in [Market-Ticker].

See how the lie is set up?  The premise put forward — that everyone needs medical attention at some point, and virtually everyone needs insurance to pay for it, is put forward as a “fait accompli” without first asking the following questions:

  • Has it always been this way? Can you, for example, show us that health insurance was necessary in, oh, 1776?  1850?  1913?  1953?  1970?
  • Has everyone “needed” medical attention “at some point” historically as well?  Was that true in 1776?  1850?  1913?  1953?  Or 1970?

It’s a fact that virtually everyone has in fact “needed” medical attention “at some point” historically.  But America, and the rest of the world, managed to economically progress for hundreds of years without force-placed “insurance” or the government being materially involved in health care.

An honest inquiry is therefore forced to ask the following question: What happened?

That’s relatively simple: Government happened.

via The Mental Disease Called Liberalism (Health Reform) in [Market-Ticker].

I’ve spoken about this kind of thing before.

 

While the federal government and the Catholic church wrestle over healthcare-required contraception and abortions, city and county governments may have found a unique method of backdoor taxation on nonprofits.

They simply double the water bill for churches and schools.

That’s the focus of a court case that is being carefully watched by churches and nonprofits across the nation. Soon, an Oregon judge will decide whether to allow the practice.

One of the 600-plus ordinances for the city of Canyonville, Ore., states that “churches, schools, and non-profits like our local YMCA and a non-profit senior residence will be charged double the normal water rates and substantially elevated sewage fees.”

One of the current ordinances explains that the surcharges are to be paid “in lieu of taxes.”

Meanwhile, a sign posted in city hall, tells Canyonville residents that they pay less on their water bills than neighboring towns. The non-profits, who are paying double, say that their surcharge is the reason.

Among those affected is Canyonville Christian Academy, founded in 1924. Officials there stumbled onto the double billing, finding that the extra surcharges date back three decades and may total close to $200,000, according to school officials.

Said the school headmaster, Cathy Lovato, “We offered to settle this for a very modest amount last Christmas but the city said ‘no.’”

via Scheme opens door to tax the tax-exempt.

COMMENTARY | President Barack Obama’s Secretary of Energy Stephen Chu uttered the kind of Washington gaffe that consists of telling the truth when inconvenient. According to Politico, Chu admitted to a House committee that the administration is not interested in lowering gas prices.

Chu, along with the Obama administration, regards the spike in gas prices as a feature rather than a bug. High gas prices provide an incentive for alternate energy technology, a priority for the White House, and a decrease in reliance on oil for energy.

The Heritage Foundation points out that hammering the American consumer with high gas prices to make electric and hybrid cars more appealing is consistent with Obama administration policy and Chu’s philosophy. That explains the refusal to allow the building of the Keystone XL pipeline and to allow drilling in wide areas of the U.S. and offshore areas.

The consequences of the policy are not likely to be of benefit to the Obama administration. The Republican National Committee has already issued a video highlighting the spike in gas prices and the failure of the administration to address the issue.

Presidential candidate Newt Gingrich has issued a half-hour video touting an energy plan he claims would result in $2.50 a gallon gasoline. The plan is based on unfettered drilling for oil and gas instead of a reliance on green energy. Gingrich has also savaged Obama’s touting of algae based biofuel as “weird.”

Chu has likely highlighted an issue Republicans are going to pick up and run with. Americans are not going to be appreciative of schemes to hit them in the wallet so the American economy can shift to green energy. Besides American traditional adherence to the free market, the idea of being fleeced by a deliberate government policy is likely to be greeted with anger.

Add into the mix green energy fiascos like Solyndra, and Chu might well have kindled a full blown scandal.

How the Obama administration reacts to the expected firestorm is open to question. Green energy is as part of its fundamental religion as is universal health care, another unpopular Obama policy. If it tries to bull ahead, the electorate will likely punish Obama and the Democrats. If it tries to backtrack, Obama looks weak and facilitating, and likely will still not appease gas strapped Americans experiencing price shock at the gas pump.

via Energy Secretary Chu Admits Administration OK with High Gas Prices – Yahoo! News.

it is nothing to do with gas supplies…they are actually on the rise.  it is due to the destruction of our dollars value.

Tickerguy’s Missive To The American People: Gas Prices in [Market-Ticker].

So the banks first get away with illegal fillings and bogus documents.  they then foreclosed while committing  Perjury  in court.  They have to pay 25 billion TOTAL.  What’s the real cost?  Over 1 TRILLION in bad documents.  Granted some homeowners made their own bed..but there are many many cases that are easily searchable on Google whre the banks were shown to be liars and they WON ANWAY because judges were essentially in the bankster’s pockets.

 

The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely.

Lenders slowed the pace of foreclosures as they negotiated with attorneys general in all 50 states for more than a year over allegations of faulty and fraudulent paperwork used to repossess homes. With yesterday’s agreement, banks are likely to resume property seizures.

“The best thing about the settlement, frankly, is that it will be done,” said Stan Humphries, chief economist for Seattle-based Zillow Inc. (Z), a provider of home-sales data. “The shadow of the settlement hung over the market for a year now.”

The backlog of foreclosures has trapped homeowners in properties they can no longer afford, depressed neighborhood prices by increasing the number of abandoned homes and led banks to tighten mortgage credit standards because of uncertainty about the cost of their potential obligations. Foreclosure starts fell 46 percent in December from October 2010, when the investigation into the so-called robo-signing of mortgage documentation began, according to Irvine, California-based RealtyTrac Inc.

The agreement will direct $17 billion to writing down debt to buffer about 1 million homeowners from foreclosure through mortgage forgiveness, forbearance or loan modification programs, according to Housing and Urban Development Secretary Shaun Donovan. About 750,000 borrowers may get direct payments of as much as $2,000 to compensate them for servicing errors.

via Foreclosure Deal to Spur New Wave of U.S. Home Seizures, Help Heal Market – Bloomberg.

Not much needs to be said by me.  Hit the link.

 

Fraudclosure — You Have Been Sold Out in [Market-Ticker].

Ah yes class warfare at it’s best.  None of these nimrods care about one thing… soaking the rich(of which all of these folks are) ever works.  Why?  They have the ability to move themselves and/or their wealth offshore. These fools know good and dern well that this strategy isn’t going to work because it has already failed many times over.  It is great for getting the rest of the country to vote for them.  That is all this tactic is good for…it is the “rich” who are the job creators in this nation.

 

Democrats and Republicans agree: People with higher incomes must pay more. 

Democrats want upper-income people to pay more in taxes, but don’t want upper-income people to pay more for their Medicare benefits.

Republicans want upper-income people to pay more for their Medicare benefits, but don’t want them to pay more in income taxes.

A House-Senate conference committee is looking to upper-income people as it tries to find the money to offset the cost of a payroll tax cut package, which includes extended unemployment benefits.

A compromise that combines a bit of each (higher income taxes on the rich and higher Medicare premiums) seems unlikely.

For the Democrats, Sen. Bob Casey, D- Pa. has proposed a surtax on the rich to help pay for the payroll tax cut package.

Last year Casey’s proposed 3.25 percent surtax on incomes over $1 million failed to get the 60 votes it needed to advance in the Senate. He has now lowered his threshold, calling for a 1 percent surtax on any income over $1 million, which he said would raise about $76 billion, offsetting almost half the cost of a payroll tax cut package.

via NBC Politics – Getting the affluent to pay for payroll tax cut.

Many of the folks in this prof’s class believe in some outrageous things.  Welcome to the products of our socialistic, atheistic public education system.

 

If This Does Not Change NOW We’re Finished in [Market-Ticker].

The US now owes more than it makes.  Very few options are now available to our gov’t.

 

While not news to Zero Hedge readers who knew about the final debt settlement of US debt about 10 days ahead of schedule, it is now official: according to the US Treasury, America has closed the books on 2011 with debt at an all time record $15,222,940,045,451.09. And, as was observed here first in all of the press, US debt to GDP is now officially over 100%, or 100.3% to be specific, a fact which the US government decided to delay exposing until the very end of the calendar year.

via US Closes 2011 With Record $15.22 Trillion In Debt, Officially At 100.3% Debt/GDP, $14 Billion From Breaching Debt Ceiling | ZeroHedge.

If you don’t want the gov’t or any other entity to be able to interfere with you then don’t use their vehicles to avoid paying taxes or get around regulations they also enforce.  Otherwise they do have the right to regulate your behavior while using said instruments.  If you truly want to be free then don’t be an NPO.  Otherwise you have to deal with their interference.

A religious group is charging the Internal Revenue Service with using a legal loophole to first tax nonprofits’ free speech, then run away with impunity when challenged in court.

The nonprofit Catholic Answers tasted this tactic firsthand in 2008, when its president, Karl Keating, posted a discussion on the organization’s website arguing that, according to church rules, Sen. John Kerry, D-Mass., should not be allowed to receive communion in the Catholic Church because of his support for legalized abortion.

The IRS then levied an excise tax on Catholic Answers for engaging in alleged “political speech” against then-presidential primary candidate Kerry, a tax Catholic Answers paid.

Find out what you need to do! Get “Taking America Back: A Radical Plan to Revive Freedom, Morality, and Justice” – Autographed!

But when challenged in court, the IRS simply refunded the tax, while refusing to change its ruling that Catholic Answers’ speech was taxable political intervention in an election. Lower courts then ruled Catholic Answers had no course of action against the IRS.

But Catholic Answers, together with the James Madison Center for Free Speech, are now asking the Supreme Court to step in, claiming this “tax-and-run” strategy allows the IRS to arbitrarily tax churches, charities and religious activists into silence, or dodge the consequences if the nonprofits fight back.

“Not only did the federal courts in this case misapply Supreme Court law, they have allowed the IRS to engage in trickery by penalizing nonprofits who exercise their right to speak, only to return the money at the last possible second,” explained James Bopp Jr., general counsel for the James Madison Center and co-chairman of the Election Law Subcommittee of the Federalist Society. “So long as the IRS is allowed to do this, nonprofits like Catholic Answers will be deterred from speaking about individuals who are political candidates in any context for fear they’ll be investigated and taxed. Nothing prevents the IRS from doing this again. And these groups now have no judicial remedy.”

via Faith group to IRS: Don’t tread on us!.

If so — if this is really about “the 99%” — then you need to understand a few things.

Some of you already do.  To those, this article is redundant.  To the rest, and to the majority of the people in this nation, it is not.

Last night I appeared on Dylan Ratigan’s show.  You can watch the segment, and should.  I used the word financialization, which a few people emailed me about and asked me to explain.

Thus, this Ticker.

So what is financialization anyway?  It is the process by which something very ordinary (say, a TV set) becomes financed. In doing so there is inherently created the use (and usually the abuse) of leverage.

What is leverage?  Leverage is simply the ability to act as though you have much more of something than you really do.  For example, you can use leverage to pry off the lid on a beer bottle.  Your raw strength is multiplied by the lever (the bottle opener) to lift the cap.

But note that there is no free lunch.  While the opener may multiply the force applied to the cap, the distance the opener moves is proportionally reduced compared to the movement of your hand.

In economics, leverage is the use of debt to pretend to have more economic surplus (that is, purchasing power) than you really have.

Let’s take a TV set.  If you save up the money to buy one, then go into the store and pay for it, you now own a TV set.  There is no leverage involved; you took your economic surplus from working (which you didn’t need for food, energy, shelter and clothing – thus, it’s a true surplus to you) and you expend it on a TV set.  The transaction is simple; once it is completed there are no residual effects.  If you lose your job the next day, you still have the TV set and will forever more until it either breaks, wears out or you dispose of it in some way.

But what if the TV set costs $500 and you only have $100?  Well, you could financialize your acquisition of the TV.  That is, you could borrow $400 by buying the TV on installment payments with a $100 down payment, and now you have a TV.

Or do you?

Actually, the bank (or the store) owns a TV.  You may have custody of a TV set, but you don’t own a TV set. You owe a debt.  You have promised to work tomorrow to cover the expense of the television. You don’t own the TV until you pay it off.

This is all fine and well up until you lose your job.  Now the bank comes after you and wants the TV back, plus whatever deficiency there is on reselling the TV set to cover your debt.  You suddenly discover, much to your chagrin, that you never owned it at all.

This all sounds pretty ordinary, except that the economic effect of financializing that transaction isn’t, in fact, ordinary at all.

See, in economics there is this thing called “supply and demand.”  The more demand there is for something with a given supply, the higher the price tends to be.  In ordinary times a gallon jug of drinking water in a store is a dollar, and from the tap it costs so little we don’t ordinarily put a price on it.  Yet if there was just a hurricane, and there is no fresh water available, what would the price of that same gallon be?  Ah, now we have much demand and very short supply, and as such the price will be quite dear.  Perhaps the price of that water might be several gallons of gasoline (for the seller’s generator, of course.)

via OWS: Want To Turn The Tide? in [Market-Ticker].

I’m no fan of hte abuses of the IRS but these pastors are forgettign one thing.  You are using an IRS regulation to avoid paying taxes( the 501 (c) series).  If you are taking government funds or using govt regulations to get around something you can expect the government to exercise it’s monetary authority over you.  If you want to be free of government interference you need to renounce your NPO status.  This way you have a leg to stand on when not if the government comes a calling.  These pastors who are challenging the IRS are going to loose if they are Federal NPOs and i bet all of them are.  If you want to have the ability to truly tell the government to go away stop using hte government to avoid taxes.  Until you do the government has the ability to and they will use it to tell you what you can and cannot say.  Once you take money from the government or you use a government regulation to bypass something like taxes you are ceding control to said government.

Hundreds of pastors thumb noses at IRS.

 

 

Bank of America is going bye bye…and guess who is the executioner?  AIG.  This time AIG isn’t the purveyor of bad assets they are trying to recover bad assets from Bank of America.  Combine this with one of BAC biggest pumpers has dumped them and with BAC’s stock now directly tied to it’s cash reserves BAC is toast.  Remember the disaster TARP 1 was?  The US Gov’t is going to try to do a TARP 2. This WILL IMO lead to a further downgrade by S&P and Moody’s and Fitch may not be able to stand with the US Gov’t against S&P due to the enormous amount of additional debt this will INSTANTLY put the gov’t under.   Despite this Obama and CONgress will try to thumb its nose at the credit agencies and try to keep this huge zombie bank lumbering around mindlessly under the lie of too big to fail.

 

 

Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated | ZeroHedge.

If you want things to improve in this country in terms of the federal gov’t WE the people need to quit voting these idiots back into office.

 

Let’s start with who’s fault it is not: S&P.

To recap:

S&P warned early in the year that there was a risk of a downgrade.

S&P, when the debate was entered in May, said that they needed to see $4 trillion in actual deficit reduction and that this was a “down payment” on the problem, not the entire solution (they’re right, incidentally.)

S&P then re-iterated the warning when the debate got contentious.

That’s (at least) three separate warnings that were intentionally ignored.  S&P was not ambiguous nor did they blindside anyone.  They told the government exactly what they needed to see and when in order to avoid the downgrade.  They’re blameless.

So who’s to blame?

CONgress, for it’s willing refusal to either clearly state that it didn’t care if the downgrade happened or complying with S&Ps demands. Pick one.  When you have a firm saying “do X or we do Y”, and that’s a legal act, you either do X or you expect Y.  It is the height of arrogance to try to shine someone on like this – yet Congress did – on both sides of the Aisle.

President Obama, for his belief that he could simply bully an independent business into not doing a lawful thing.  Again, he is a President, not a King.  Go back to Chicago Obama where you belong, and where “kneecap politics” are the way of the world.  Illinois deserves you.

We the people, for our refusal to accept that we cannot have services from our government we refuse to pay for in the present tense.  This is a fact, whether we like it or not. 

via Who’s Fault Is It? – MarketTicker Forums.

READ the entire article…don’t just skim it.  I have put only a small snippet in here.  Bang the link and read….the things laid out in this article are the ONLY way we are going to keep our nation.

 

To the “Tea Party” that was crowing about how they were “successful”, how does that success taste?  Half of your members in fact defected when it came time to vote, and despite the crows of “success” (which was really nothing more than glee over “beating the Democrats desire to increase taxes”) the bad outcome that you claimed to be trying to avoid happened.  Now what? 

To the Democrats who said this was a “good bill” or even one “we can support”: How does abject failure taste?  Your refusal to admit that you cannot spend more than you take in on a perpetual basis and your incessant demands to spend more and more without any plan to pay for it, despite screeches of “tax the rich” and “fair shares” has gone nowhere. 

To the “mainstream” Republicans who said this was “the best we could do” or even “a good bill”: How are you feeling this morning?  Got out of town in seconds after that vote did ‘ya?  Well gee, that worked out real well eh?  Now what? 

Some more facts – and you’re not going to like any of them:

Within hours of the passage of the bill more than half of the authorized increase in the debt ceiling (the first tranch) was blown and gone as Geithner unwound all the screwball theft games he had played for the previous two months.  More than $200 billion instantly vanished.  The scale and price of his deception was instantly laid bare upon the table, as was our fiscal trajectory, since June is one of the heavy tax receipt months (estimated taxes.)

In calendar year 2007 GDP was $14.3 trillion, more or less.  The actual borrowing increase was $548 billion.  The Federal budget was $2.73 trillion.  To balance our fiscal house we would have had to cut 20% of the Federal government – in 2007.

In the last year GDP was $14.8 trillion, more or less.  The actual borrowing increase was $1,700 billion.  The Federal budget (which was never actually passed and signed, a rank violation of Constitutional requirements) was $3.8 trillion.  To balance our fiscal house we would have had to cut 45% of the Federal government – more than double the 2007 figure.

To bring the economy into balance debt must not grow faster than GDP.  In a time when GDP is shrinking debt must shrink faster, not grow faster.  This is basic exponential mathematics.  15 minutes with Excel will prove this to anyone’s satisfaction.  This has been the foundation of my perspective on the economy and our errors since I started pontificating in public on it in the 1990s while running MCSNet, and has been the foundation of The Ticker as well.  Twice in the last month or so I have posted links to Google spreadsheets for those too lazy to do it themselves, making it even easier to visualize what I’ve been talking about.  Anyone arguing otherwise must be able to demonstrate why the laws of mathematics do not apply and prove they are correct, and if they’re unable to they must be ejected from the debate on the path we take as a nation.

via And So It Begins….. – MarketTicker Forums.

http://www.c-spanvideo.org/program/SenRe/start/14756/stop/16376

Hit the above link to listen to Senator Coburn of OK bring out the truth of the so called debt reduction bills.

 

I am sitting here watching Senator Coburn on the floor of the Senate speaking the truth that I brought up yesterday with the Boehner bill (and Reid’s too) – that they’re scams.

That there are no cuts.

The claim of “cuts” is a lie.

This path will lead to a credit downgrade and ultimately bankruptcy.

via Coburn Speaks Truth – MarketTicker Forums.

 

You’re NOT going to get what you want Harry.

You need to read the damned Constitution.  ALL REVENUE BILLS MUST ORIGINATE IN THE HOUSE.

YOUR chamber has failed to pass a budget for the last two years.  YOUR chamber has repeatedly violated the Constitution by refusing to do so.  YOUR chamber is a public disgrace and every last one of you should be removed for violating your oaths of office.

What the House is going to pass today is a bill that will give you a few more months to come to your senses and accept the math: The budget must be balanced.

via Reid, McCain, Obama: Shut Up. You Lost – MarketTicker Forums.

‪The Secret of Oz – English – FREE.mov‬‏ – YouTube.

‪SR 20 – The Debt Ceiling Debate‬‏ – YouTube.

‪SR 19 – U.S. Debt Limit‬‏ – YouTube.

If your bank suddenly comes to you to “adjust” your mortgage without you asking tell them to pound sand…the next thing you do is make them prove they actually have all of the paperwork.  There’s several ways to do this…i would highly suggest enlisting a real estate attorney.  More and more mortgages are turning out to be frauds pushed by the banks themselves.  I bet this is one way they are trying to “correct” the issue.

 

Well, there are some potential reasons why a bank would do this.  Chief among them is that they might not be able to show they actually own the paper.  That is, they may have done something that has destroyed the security interest.  If you voluntarily refinance in such a fashion, you will have re-affirmed and given them a “do-over” on the paperwork.  Of course they don’t want you know that one potential alternative is for you to pay nothing.

via Banks Reducing Principal? in [Market-Ticker].

Get ready folks.  If you have a job have a backup plan…now.  The instant the treasury has a failed bond auction they’ll have to raise rates.  One they do that all the cheap borrowing goes away….then things get ugly.

 

The U.S. Treasury next month will go back to relying on the kindness of strangers like never before to purchase the nation’s burgeoning debts — and taxpayers may have to pay higher interest rates to attract enough foreign investors, analysts say.

Though a significant rise in interest rates could be toxic for a softening U.S. economy, the Federal Reserve has said it will end its program of purchasing $600 billion in U.S. Treasury bonds as planned on June 30. The Fed is estimated to have bought about 85 percent of Treasury’s securities offerings in the past eight months.

That leaves the Treasury, which is slated to sell near-record amounts of new debt of about $1.4 trillion this year, without its main suitor and recent source of support, and forces it back into the vagaries of global markets. Among the countries that will have to step forward to prevent a debilitating rise in interest rates are China, Japan and Saudi Arabia — and even hostile nations such as Iran and Venezuela with petrodollars to invest, according to one analysis.

via Lack of buyers may force Treasury to boost rates – Washington Times.

For nearly 8 years now I have been working two jobs…one mowing grass and my business…Emmanuel Computer Consulting. This dual arrangement worked for a while but recently it became clear I needed to concentrate on my business as client calls were beginning to interfere with my ability to fully perform my duties as a field supervisor at my other job.  I have the philosophy to give 100% at whatever you are doing..and my mowing job has been no exception.  It has resulted in the owner allowing me to practically run the company in his absence with confidence his business will be taken care of.   i’ve been praying for restitution to this situation.  Recently my wife Gen was released form her job because “she did not have a positioned available at the new facility”.  80% of our household income just went poofies.  Well Gen and I had been praying for her to get out of the job she has and for me to be able to step in with my business and take her place(which in my opinion is how it should be).  I just had a meeting today with the owner of a much larger IT firm about doing some sub contracting work for him at his request.  After a very productive conversation and a good negotiation we came to a mutually agreed per-job payrate.  I now have to talk to the manager with whom i would be working with on a daily basis.  Once that interview is completed if they both approve i’ll have a contracting job making more than double what i make at the lawn mowing job.  This contract is at least 6 months..almost certainly longer.  I just now realized something as i type this…the barrier(which i could not figure out what it was) to me being able to do just this was gen’s job.  Not that i wanted her to loose her job…but me and gen BOTH wanted the roles to be reversed per say.  The Lord is providing that right now. One of my clients has an office manager position offer which gen would love to work at…it’s 10 minutes from the house and i literally drive by it every time i head to Frederick and back.  It would be perfect.  So far I have moved out of the way and let God work this out….He is working mightlyily indeed.  Updates to follow..:)

 

The Control of Nature: Atchafalaya : The New Yorker.

So they increased taxes and “cut” services while spending 10 million more in the next budget.  Souds to me they did not do a whole lot in reductions.

 

Cuts to personnel and services were combined with projected increases in income tax revenue to balance the budget, which is $10 million larger than this year’s. The county laid off 106 employees, reorganized several divisions and cut or downgraded a total of 175 positions, which reduced the county workforce by 7 percent.

via Public can speak on Frederick County’s $448 million 2012 budget – The Frederick News-Post Online.

Our bed broke more than 6 months ago. This past weekend we went to mattress wharehosue in Frederick and it was a highly unpleasant experience. The first salesman was kind enough until we wanted time to think about it..he then sent us to his closer who was scary looking and pushy. When we would not accept his terms he quickly literally showed us the door. It turns out that is the MO of that location. Tonight we went to dunkin donuts for dinner. We then hit the gas station to fill up the rental(ours is int he shop getting badly needed maintenance after 310k miles)…then to sleepy’s. After a prayer we went in. What a wonderful experience. The salesman there actually took the time to figure out our sleep issues and with the help of some impressive technology actually steered us to a bed we both liked instantly. I also made sure to get heather a tempurdic contour pillow. She was in bed heaven. I’m not going to detail the total expenditure in public but i can tell you we spent $300 less than we budgeted for. We spent nearly an hour at the crappy store. We were in and out with the bed bought in almost half that time tonight..:) If you are going to be buying a bed try the sleepys in Frederick, md on tues, thurs, and saturdays.

Wal-Mart tried to leave it’s base that had made it the retail juggernaut.  It’s now paying for these decisions greatly and is now trying to turn itself around.  The question is…can it regain those customers again?

Wal-Mart’s struggles are the result of a misstep: To jump-start lethargic growth and counter the rise of competitors such as cheap-chic rival Target Corp., executives veered away from the winning formula of late founder Sam Walton to provide “every day low prices” to the American working class. Wal-Mart, the world’s biggest retailer by sales, instead raised prices on some items while promoting deals on others.

Company executives acknowledge having miscalculated and are adjusting their strategy again. The big question is how quickly the mammoth chain can turn itself around.

Wal-Mart’s shift from its traditional core customer manifested itself in numerous ways. A foray into organic foods didn’t catch on with discount shoppers. A push to sell trendy fashions like skinny jeans bombed. And an attempt to cut clutter in stores to attract higher-income customers wound up undermining Wal-Mart’s appeal to its traditional audience.

via Wal-Mart Grapples With Its Worst Sales Slump Ever – FoxNews.com.

American Fiscal And Monetary Policy – MarketTicker Forums.

Lots of waivers for Obamacare.  If this plan is so great why the ever growing number of exceptions to this wonderful plan?

Approved Applications for Waiver of the Annual Limits Requirements of the PHS Act Section 2711 as of December 3, 2010 | HHS.gov.

Considering the waste the FCPS board has overseen in the past 5 years..it’s time to tell the money addict no.  Since the county is already struggling to pay it’s current bills is adding 33 million to a deficit of 11.8 million a good idea?  Mr. Young please?

Frederick County Public Schools officials are calling for a $33 million increase in fiscal 2012 over this year’s budget of $507 million.

It is a figure some school board members said they weren’t comfortable taking to the Board of County Commissioners.

The bulk of the increase is from a $10.7 million salary increase for system employees and a $15.5 million annual contribution to the retiree benefits trust fund.

via School system asks for $33M budget increase – The Frederick News-Post Online.

In a decision that may slow foreclosures nationwide, Massachusetts highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.Bank shares fell, weighing on broader stock indexes, on fears the decision could threaten lenders ability to work through hundreds of thousands of pending foreclosures.The Supreme Judicial Court of Massachusetts unanimous decision on Friday upheld a lower court ruling. It is among the earliest cases to address the validity of foreclosures done without proper documentation.That issue, including the use of “robo-signers” who approved foreclosure documents without reviewing them, last year prompted an uproar that led lenders such as Bank of America Corp, JPMorgan Chase & Co and Ally Financial Inc to temporarily stop seizing homes.”A ruling like this will slow down the foreclosure process” for lenders, said Marty Mosby, an analyst at Guggenheim Securities in Memphis, Tennessee. “Theyre going to have to be really precise and get everything in order. It doesnt leave a lot of wiggle room.”Wells Fargo and U.S. Bancorp lacked authority to foreclose after having “failed to make the required showing that they were the holders of the mortgages at the time of foreclosure,” Justice Ralph Gants wrote for the Massachusetts court.

via Banks lose key foreclosure ruling in top Massachusetts court | Reuters.

If you have a 401K get out of it…yesterday.  it’s only a matter of time before the US gov’t does this as well.

France, Ireland and Hungary Seize Pensions As Part of Move By Governments to Use Long Term Assets to Fill Short-Term Deficits ? Washington’s Blog.

The Commercial No Network Will Air – MarketTicker Forums.

This is a huge report.  Read EVERY page.  Now the courts are involved int he fraud.  If it’s happening in Florida it’s everywhere folks.  check on your own mortgage immediately..make sure you have the paperwork on your own.  Don’t depend on the mortgage brokers to have their copy.

The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase. This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby rinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench. Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments. Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.

via Matt Taibbi: Courts Helping Banks Screw Over Homeowners | Rolling Stone Politics.

Janet Tavakoli On Bank Foreclosure Fraud – MarketTicker Forums.

Janet Tavakoli on Bank Foreclosure Fraud from David Fry on Vimeo.

FOXNews.com – Do Kids Count? Insurers Stop Selling Child-Only Policies Ahead of ObamaCare Provisions.

the banks listed had dedicated units for laundering money through the us banking system.  Yet they get to settle… why are they still doing business in this country?

Market-Ticker – MarketTicker Forums.

All you Self-employed or SMB folks read up.  The new credit card regulations do NOT apply to you so get ready for the banskters to s art ripping you off as well.  If you don’t have a “professional” card get ready to see a flood of credit card offers.  Do what I have done and stay away from these altogether.

Banks Find A New RipOff – “Professional” Cards – MarketTicker Forums.

It was actually an idea floated by the economist whose failed theories haunt us today.  Read the linked article for more.  It’s getting closer folks..one world currency..etc etc etc.

U.S. Postal Service Starts Quoting SDR to Dollar Conversion Rates, and IMF Endorses Replacing Dollars with SDRs ? Washington’s Blog.

Government wants your 401k.

The gov’t is going tos tart converting your 401k to bonds.  Guess what happens when the US debt load(currently at over 25 trillion or more) get too big?  The gov’t defaults on the bonds and your retirement is worth bupkis.  Karl Denninger over at the market ticker called this last year that this nonsense would be starting.  I’ve been advising my wife based on Karl’s impressive record for accuracy to put as little to nothing into that 401k as possible.  It is now time to get out of 401k’s altogether.  I started a forum thread over on the ticker’s site…let’s see what goes on over there.

Kidan on facebook posted about this.  This is what is coming here..get ready.

Axe falls on NHS services – Telegraph.

Just from a financial standpoint the answer could very likely be no.  Karl really analyzes the numbers and comes up with some results that might just surprise you.

The Case For And Against College – The Market Ticker ®.

I am already telling my wife to get her money OUT of 401k’s and other vehicles specifically because of garbage like this.  The next step the gov’t is going to do is they will seize all tax free ira’s…convert them to US treasuries(aka bonds) and say if you want it that’s what you have to do.  These bonds will be effectively worthless since the gov’t is broke!!!!!

Listen to Paul opine:

What should it be doing? Conventional monetary policy, in which the Fed drives down short-term interest rates by buying short-term U.S. government debt, has reached its limit: those short-term rates are already near zero, and can’t go significantly lower. (Investors won’t buy bonds that yield negative interest, since they can always hoard cash instead.) But the message of Mr. Bernanke’s 2002 speech was that there are other things the Fed can do. It can buy longer-term government debt. It can buy private-sector debt. It can try to move expectations by announcing that it will keep short-term rates low for a long time. It can raise its long-run inflation target, to help convince the private sector that borrowing is a good idea and hoarding cash a mistake.

The Fed has done pretty much all but the last.  It bought government debt.  It bought private (Fannie and Freddie are not government “agencies” as the law defines them) debt.  It announced that it would leave short rates at 0-0.25% for “an extended period.”

But now Krugman crosses a particular line in asking that The Fed explicitly raise an inflation target – that is, intentionally seek to destroy the savings and investments of all Americans.

What Krugman refuses to understand (because he is a hard-core lefty collectivist) is that capital formation comes from savings.  That is, new businesses form from surplus capital excess of requirements.

via Krugman Tells Seniors (and Businesses) To Die – The Market Ticker ®.

Karl’s comments are italicized.  I have to agree this kid is voluntarily unemployed.

The daily routine seldom varied. Mr. Nicholson, 24, a graduate of Colgate University, winner of a dean’s award for academic excellence, spent his mornings searching corporate Web sites for suitable job openings. When he found one, he mailed off a résumé and cover letter — four or five a week, week after week.

A bit late, no?  Graduate eh?  Don’t you usually look for a job before you graduate?  Well, yes.  You’d think that someone with a degree would, after a large number of trials, change his strategy somewhat.

Over the last five months, only one job materialized. After several interviews, the Hanover Insurance Group in nearby Worcester offered to hire him as an associate claims adjuster, at $40,000 a year. But even before the formal offer, Mr. Nicholson had decided not to take the job.

Oh.

Rather than waste early years in dead-end work, he reasoned, he would hold out for a corporate position that would draw on his college training and put him, as he sees it, on the bottom rungs of a career ladder.

Waste, eh?  Waste?

How is earning a living – you know, something you’re supposed to do somewhere around your 18th birthday, “waste”?

Is it nice that one’s parents will fund your mealy-mouthed existence into what appears to be perpetuity?  Well, yes.  But do you have a right to expect such a thing?  Well, no.

And while $40,000 might seem “beneath” a college grad, it is nearly double what my first “real” (that is, W-2) job earned – as a programmer.  That offer was $18,000, and I took it.

via Bulls Get Fat, Bears Get Fat, PIGS GET SLAUGHTERED – The Market Ticker ®.

The Fallacy Of “Record Corporate Cash” – The Market Ticker ®.

Super-low interest rates also ensure that the big banks, fated to be wards of the government if the new financial reform becomes law, will have generous margins between their borrowing costs and lending revenues. This will enable them to further pad their balance sheets and correct the mistakes of yesteryear.

….

There’s a flip side, however. It only takes simple math to know that when interest rates are kept low, so are returns on savings and investment.

via No, Really? (Hard Knocks From Easy Money) – The Market Ticker ®.

This is a very interesting read…and much truer than most folks will ever admit.

Regardless of what one thinks of the left-leaning Obama voters, it is eminently clear that they did not vote for a Vietnam-like expansion of the war in Afghanistan. Nor did they vote for the assassination of American citizens without trial, government kidnappings on foreign lands or the continued use of an extra-constitutional jail on foreign soil. Obama has betrayed their trust as well as the most basic principle of representative democracy, just as George W. Bush betrayed the votes of the small government conservatives who made him president.

So, the Constitution lies in tatters, the politicians have successfully constructed a system that renders their collective will unopposable, the economic system is designed around the fundamentally Marxist principle of centralized credit and the courts and executive-branch agencies are regularly legislating from the bench and the bureaucracy.

Where is this freedom of which Americans so proudly speak?

As Ben Franklin said, the American people were given a republic, if they could keep it. And they have not kept it. Instead, they mortgaged it for the meager benefit of a few decades of material prosperity enjoyed on credit. Not since Esau traded his birthright for a pot of stew has anyone made such a foolish, short-sighted bargain.

But the cold winds of the Kondratieff Winter are already blowing, and on them rides the four horsemen of economic contraction, default, unemployment, disease and unrest. Perhaps Americans will rise to the occasion and claim their lost independence once more. Unfortunately, it is much more likely that a once-great nation will sink into the lost seas of history like so many great societies before her.

via Exactly what are you celebrating?.

the Law of Unintended Consequences

via And another underground business is born.

It took him long enough..:)

Cramer Calls Market “Stupid, Rapacious, Arbitrary, Capricious And Downright Ridiculous”, Tells Viewers To Stay Out | zero hedge.

On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush’s tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts.

Tax rates have been and will be raised on income earned from off-shore investments. Payroll taxes are already scheduled to rise in 2013 and the Alternative Minimum Tax (AMT) will be digging deeper and deeper into middle-income taxpayers. And there’s always the celebrated tax increase on Cadillac health care plans. State and local tax rates are also going up in 2011 as they did in 2010. Tax rate increases next year are everywhere.

Arthur Laffer: Tax Hikes and the 2011 Economic Collapse – WSJ.com.

AT&T Just Killed Unlimited Wireless Data and Screwed Everybody in the Process.

Ah yes.  It continues. Now that AT&T has everyone by the shorthairs they do what any myopic company does..milk their clients dry until they have no clients.  Read the linked article as Verizon intends to do the same thing eventually.

Soldier in Iraq Loses Home Over $800 Debt | Mother Jones.

This is NOT an isolated incident.  There are many and a quickly growing number of incidents of HOA’s running rampant.  The problem is..they are a contract between yourself and a private entity.  since you voluntarily entered into it…there’s not a ton you can do but hope the courts overturn(which they shouldn’t).  This is why when me and my wife went looking to buy a house we would not buy one with an HOA.  This way we don’t have to worry about this.  Folks don’t buy into the HOA myth that they are innocuous.  The “benefits” they promised are nothing more than the cocaine your drug dealer will give you for free and then charge your for at ever increasing prices once you get hooked.  Stay away from the HOA drug dealers.

Tea party claims a scalp.

Oh REALLY?!?!?!  How much of your paycheck are you willing to donate to this cause Max?  I know the answer..ZERO!  This is simply to suck money out of everyone and give it to folks like you.  It’s unfortunate that many folks in the country through their lack of self-thought and research will actually let this slide thinking you are kidding.  I and many others though know you are talking the absolute truth here…which is a rarity for you dweebs on the ill.

As Democrats tout the moral underpinnings of the federal health care system overhaul — ensuring health care coverage for nearly all Americans — one senator appeared to go off message when he said the legislation would address the “mal-distribution of income in America.”

After the Senate passed a “fix-it” bill Thursday to make changes to the new health care law, Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee, said the overhaul was an “income shift” to help the poor.

“Too often, much of late, the last couple three years, the mal-distribution of income in American is gone up way too much, the wealthy are getting way, way too wealthy and the middle income class is left behind,” he said. “Wages have not kept up with increased income of the highest income in America. This legislation will have the effect of addressing that mal-distribution of income in America.”

via FOXNews.com – Democratic Senator: Health Care Law to Address ‘Mal-Distribution of Income’.

Full Article follows:

After the Senate passed a “fix-it” bill Thursday to make changes to the new health care law, Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee, said the overhaul was an “income shift” to help the poor.

As Democrats tout the moral underpinnings of the federal health care system overhaul — ensuring health care coverage for nearly all Americans — one senator appeared to go off message when he said the legislation would address the “mal-distribution of income in America.”

After the Senate passed a “fix-it” bill Thursday to make changes to the new health care law, Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee, said the overhaul was an “income shift” to help the poor.

“Too often, much of late, the last couple three years, the mal-distribution of income in American is gone up way too much, the wealthy are getting way, way too wealthy and the middle income class is left behind,” he said. “Wages have not kept up with increased income of the highest income in America. This legislation will have the effect of addressing that mal-distribution of income in America.”

That contrasted with the arguments Democrats have been making in the past year for reinventing the health care system: to expand health care coverage to 32 million uninsured Americans and tighten regulations on  insurance companies while reducing the federal deficit.

But some Republican critics have suggested the overhaul is taking the country down the path to socialism. The nearly $1 trillion legislation pays for itself in large part through new taxes on the wealthy — Americans who make $250,000 and more.

A spokeswoman for Baucus did not respond to an e-mail seeking more information on the statement.

Baucus’ statement could give Republicans ammunition as they seek to repeal the law and regain control of Congress in the November elections.

Democrats have rejected Republican charges that they are trying to take over the health care system.

In Iowa this week to trumpet the benefits of the legislation, President Obama said, “We made a promise. That promise has been kept.”

“From this day forward, all of the cynics, all the naysayers — they’re going to have to confront the reality of what this reform is and what it isn’t,” the president said. “They’ll have to finally acknowledge this isn’t a government takeover of our health care system.”

GOP strategist Matt Schlapp, the White House director to former President George. W. Bush, told FoxNews.com that Baucus’ statement reflected the “duality” of a responsible Democrat who understands the ramifications of tax policy on Americans but has a “foot in the camp of the most radical and rabid big government activists that are advocating for some breathtaking policies.”

“It’s interesting,” he said. “He’s not the senator I would use as the poster boy for radical and misunderstanding of market dynamics.”

But Schlapp said he’s not surprised by anything said by a member of a political party that, he said, seeks “to take money away from people who are achieving and give it those who aren’t.”

Medicare gets eviscerated over the next decade.  While i don’t have the specifics yet I found this which goes into some detail about what’s going to happen.  All you seniors who are members of AARP who either directly voted for this OR indirectly voted by remaining in AARP here is your reward.  This goes for everyone else that voted these boobs into power.

Consequences Of Health Care: Valuations – The Market Ticker.

Read this linked article closely.  Where are the healthcare savings at?  There are none!

It gets worse.  The companies taking charges is growing exceedingly rapidly.

More articles on the already unfolding impacts:

1

2

3

This Is How It Begins Wanton Violence – The Market Ticker.

This is an interesting perspective.  If this is true then it’s only the beginning of the people’s response to this loooooong term raping of the American public.

I am watching the news conference and the Austin PD is stone walling reporters even when Federal agencies are releasing more details.  This is a developing story.  Austin PD’s stonewalling is quite fascinating to watch.

*UPDATE* So this has made the anti-terroism update to Obama.  it will be interesting tos ee how the gov’t reacts to this.  they are scrambling fighter jets to “patrol” the area.

NTSB says IRS was the target.

*UPDATE2* Now this is supposed to be a single engine plane.  Take a look at the building and the amount of damage.  Unless that plane was packed with explosives there’s no way it could have caused that amount of physical damage..and I’m not talking about the burnt part i mean the physical damage to the side of the building.

*UPDATE3*  They are saying the plane struck first…blew out windows on the far side…smoldered and then exploded like a bomb had gone off.  They also showed video of the building nearly engulfed in flames.  Something just doesn’t square in this already.  There has been a large power interruption.  Most buildings of that size have a large outside box for isolation purposes so a large scale outage isn’t needed.

*UPDATE4*  Sure thing..the FBI has taken down the site of hte man who flew the plane into the building in texas.  The site comes up with:

This website has been taken offline due to the sensitive nature of the events that transpired in Texas this morning and in compliance with a request from the FBI.

Regards,
T35 Hosting

Following is the “homicide note” left behind by the pilot of the plane.  I am sure this is going to get taken down by the feds so i am going to post it here:

If you’re reading this, you’re no doubt asking yourself, “Why did this have to happen?”  The simple truth is that it is complicated and has been coming for a long time.  The writing process, started many months ago, was intended to be therapy in the face of the looming realization that there isn’t enough therapy in the world that can fix what is really broken.  Needless to say, this rant could fill volumes with example after example if I would let it.  I find the process of writing it frustrating, tedious, and probably pointless… especially given my gross inability to gracefully articulate my thoughts in light of the storm raging in my head.  Exactly what is therapeutic about that I’m not sure, but desperate times call for desperate measures.

We are all taught as children that without laws there would be no society, only anarchy.  Sadly, starting at early ages we in this country have been brainwashed to believe that, in return for our dedication and service, our government stands for justice for all.  We are further brainwashed to believe that there is freedom in this place, and that we should be ready to lay our lives down for the noble principals represented by its founding fathers.  Remember? One of these was “no taxation without representation”.  I have spent the total years of my adulthood unlearning that crap from only a few years of my childhood.  These days anyone who really stands up for that principal is promptly labeled a “crackpot”, traitor and worse.

While very few working people would say they haven’t had their fair share of taxes (as can I), in my lifetime I can say with a great degree of certainty that there has never been a politician cast a vote on any matter with the likes of me or my interests in mind.  Nor, for that matter, are they the least bit interested in me or anything I have to say.

Why is it that a handful of thugs and plunderers can commit unthinkable atrocities (and in the case of the GM executives, for scores of years) and when it’s time for their gravy train to crash under the weight of their gluttony and overwhelming stupidity, the force of the full federal government has no difficulty coming to their aid within days if not hours?  Yet at the same time, the joke we call the American medical system, including the drug and insurance companies, are murdering tens of thousands of people a year and stealing from the corpses and victims they cripple, and this country’s leaders don’t see this as important as bailing out a few of their vile, rich cronies.  Yet, the political “representatives” (thieves, liars, and self-serving scumbags is far more accurate) have endless time to sit around for year after year and debate the state of the “terrible health care problem”.  It’s clear they see no crisis as long as the dead people don’t get in the way of their corporate profits rolling in.

And justice? You’ve got to be kidding!

How can any rational individual explain that white elephant conundrum in the middle of our tax system and, indeed, our entire legal system?  Here we have a system that is, by far, too complicated for the brightest of the master scholars to understand.  Yet, it mercilessly “holds accountable” its victims, claiming that they’re responsible for fully complying with laws not even the experts understand.  The law “requires” a signature on the bottom of a tax filing; yet no one can say truthfully that they understand what they are signing; if that’s not “duress” than what is.  If this is not the measure of a totalitarian regime, nothing is.

How did I get here?

My introduction to the real American nightmare starts back in the early ‘80s.  Unfortunately after more than 16 years of school, somewhere along the line I picked up the absurd, pompous notion that I could read and understand plain English.  Some friends introduced me to a group of people who were having ‘tax code’ readings and discussions.  In particular, zeroed in on a section relating to the wonderful “exemptions” that make institutions like the vulgar, corrupt Catholic Church so incredibly wealthy.  We carefully studied the law (with the help of some of the “best”, high-paid, experienced tax lawyers in the business), and then began to do exactly what the “big boys” were doing (except that we weren’t steeling from our congregation or lying to the government about our massive profits in the name of God).  We took a great deal of care to make it all visible, following all of the rules, exactly the way the law said it was to be done.

The intent of this exercise and our efforts was to bring about a much-needed re-evaluation of the laws that allow the monsters of organized religion to make such a mockery of people who earn an honest living.  However, this is where I learned that there are two “interpretations” for every law; one for the very rich, and one for the rest of us… Oh, and the monsters are the very ones making and enforcing the laws; the inquisition is still alive and well today in this country.

That little lesson in patriotism cost me $40,000+, 10 years of my life, and set my retirement plans back to 0.  It made me realize for the first time that I live in a country with an ideology that is based on a total and complete lie.  It also made me realize, not only how naive I had been, but also the incredible stupidity of the American public; that they buy, hook, line, and sinker, the crap about their “freedom”… and that they continue to do so with eyes closed in the face of overwhelming evidence and all that keeps happening in front of them.

Before even having to make a shaky recovery from the sting of the first lesson on what justice really means in this country (around 1984 after making my way through engineering school and still another five years of “paying my dues”), I felt I finally had to take a chance of launching my dream of becoming an independent engineer.

On the subjects of engineers and dreams of independence, I should digress somewhat to say that I’m sure that I inherited the fascination for creative problem solving from my father.  I realized this at a very young age.

The significance of independence, however, came much later during my early years of college; at the age of 18 or 19 when I was living on my own as student in an apartment in Harrisburg, Pennsylvania.  My neighbor was an elderly retired woman (80+ seemed ancient to me at that age) who was the widowed wife of a retired steel worker.  Her husband had worked all his life in the steel mills of central Pennsylvania with promises from big business and the union that, for his 30 years of service, he would have a pension and medical care to look forward to in his retirement.  Instead he was one of the thousands who got nothing because the incompetent mill management and corrupt union (not to mention the government) raided their pension funds and stole their retirement.  All she had was social security to live on.

In retrospect, the situation was laughable because here I was living on peanut butter and bread (or Ritz crackers when I could afford to splurge) for months at a time.  When I got to know this poor figure and heard her story I felt worse for her plight than for my own (I, after all, I thought I had everything to in front of me).  I was genuinely appalled at one point, as we exchanged stories and commiserated with each other over our situations, when she in her grandmotherly fashion tried to convince me that I would be “healthier” eating cat food (like her) rather than trying to get all my substance from peanut butter and bread.  I couldn’t quite go there, but the impression was made.  I decided that I didn’t trust big business to take care of me, and that I would take responsibility for my own future and myself.

Return to the early ‘80s, and here I was off to a terrifying start as a ‘wet-behind-the-ears’ contract software engineer… and two years later, thanks to the fine backroom, midnight effort by the sleazy executives of Arthur Andersen (the very same folks who later brought us Enron and other such calamities) and an equally sleazy New York Senator (Patrick Moynihan), we saw the passage of 1986 tax reform act with its section 1706.

For you who are unfamiliar, here is the core text of the IRS Section 1706, defining the treatment of workers (such as contract engineers) for tax purposes. Visit this link for a conference committee report (http://www.synergistech.com/1706.shtml#ConferenceCommitteeReport) regarding the intended interpretation of Section 1706 and the relevant parts of Section 530, as amended. For information on how these laws affect technical services workers and their clients, read our discussion here (http://www.synergistech.com/ic-taxlaw.shtml).

SEC. 1706. TREATMENT OF CERTAIN TECHNICAL PERSONNEL.

(a) IN GENERAL – Section 530 of the Revenue Act of 1978 is amended by adding at the end thereof the following new subsection:

(d) EXCEPTION. – This section shall not apply in the case of an individual who pursuant to an arrangement between the taxpayer and another person, provides services for such other person as an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work.

(b) EFFECTIVE DATE. – The amendment made by this section shall apply to remuneration paid and services rendered after December 31, 1986.

Note:

  • “another person” is the client in the traditional job-shop relationship.
  • “taxpayer” is the recruiter, broker, agency, or job shop.
  • “individual”, “employee”, or “worker” is you.

Admittedly, you need to read the treatment to understand what it is saying but it’s not very complicated.  The bottom line is that they may as well have put my name right in the text of section (d).  Moreover, they could only have been more blunt if they would have came out and directly declared me a criminal and non-citizen slave.  Twenty years later, I still can’t believe my eyes.

During 1987, I spent close to $5000 of my ‘pocket change’, and at least 1000 hours of my time writing, printing, and mailing to any senator, congressman, governor, or slug that might listen; none did, and they universally treated me as if I was wasting their time.  I spent countless hours on the L.A. freeways driving to meetings and any and all of the disorganized professional groups who were attempting to mount a campaign against this atrocity.  This, only to discover that our efforts were being easily derailed by a few moles from the brokers who were just beginning to enjoy the windfall from the new declaration of their “freedom”.  Oh, and don’t forget, for all of the time I was spending on this, I was loosing income that I couldn’t bill clients.

After months of struggling it had clearly gotten to be a futile exercise.  The best we could get for all of our trouble is a pronouncement from an IRS mouthpiece that they weren’t going to enforce that provision (read harass engineers and scientists).  This immediately proved to be a lie, and the mere existence of the regulation began to have its impact on my bottom line; this, of course, was the intended effect.

Again, rewind my retirement plans back to 0 and shift them into idle.  If I had any sense, I clearly should have left abandoned engineering and never looked back.

Instead I got busy working 100-hour workweeks.  Then came the L.A. depression of the early 1990s.  Our leaders decided that they didn’t need the all of those extra Air Force bases they had in Southern California, so they were closed; just like that.  The result was economic devastation in the region that rivaled the widely publicized Texas S&L fiasco.  However, because the government caused it, no one gave a shit about all of the young families who lost their homes or street after street of boarded up houses abandoned to the wealthy loan companies who received government funds to “shore up” their windfall.  Again, I lost my retirement.

Years later, after weathering a divorce and the constant struggle trying to build some momentum with my business, I find myself once again beginning to finally pick up some speed.  Then came the .COM bust and the 911 nightmare.  Our leaders decided that all aircraft were grounded for what seemed like an eternity; and long after that, ‘special’ facilities like San Francisco were on security alert for months.  This made access to my customers prohibitively expensive.  Ironically, after what they had done the Government came to the aid of the airlines with billions of our tax dollars … as usual they left me to rot and die while they bailed out their rich, incompetent cronies WITH MY MONEY!  After these events, there went my business but not quite yet all of my retirement and savings.

By this time, I’m thinking that it might be good for a change.  Bye to California, I’ll try Austin for a while.  So I moved, only to find out that this is a place with a highly inflated sense of self-importance and where damn little real engineering work is done.  I’ve never experienced such a hard time finding work.  The rates are 1/3 of what I was earning before the crash, because pay rates here are fixed by the three or four large companies in the area who are in collusion to drive down prices and wages… and this happens because the justice department is all on the take and doesn’t give a fuck about serving anyone or anything but themselves and their rich buddies.

To survive, I was forced to cannibalize my savings and retirement, the last of which was a small IRA.  This came in a year with mammoth expenses and not a single dollar of income.  I filed no return that year thinking that because I didn’t have any income there was no need.  The sleazy government decided that they disagreed.  But they didn’t notify me in time for me to launch a legal objection so when I attempted to get a protest filed with the court I was told I was no longer entitled to due process because the time to file ran out.  Bend over for another $10,000 helping of justice.

So now we come to the present.  After my experience with the CPA world, following the business crash I swore that I’d never enter another accountant’s office again.  But here I am with a new marriage and a boatload of undocumented income, not to mention an expensive new business asset, a piano, which I had no idea how to handle.  After considerable thought I decided that it would be irresponsible NOT to get professional help; a very big mistake.

When we received the forms back I was very optimistic that they were in order.  I had taken all of the years information to Bill Ross, and he came back with results very similar to what I was expecting.  Except that he had neglected to include the contents of Sheryl’s unreported income; $12,700 worth of it. To make matters worse, Ross knew all along this was missing and I didn’t have a clue until he pointed it out in the middle of the audit.  By that time it had become brutally evident that he was representing himself and not me.

This left me stuck in the middle of this disaster trying to defend transactions that have no relationship to anything tax-related (at least the tax-related transactions were poorly documented).  Things I never knew anything about and things my wife had no clue would ever matter to anyone.  The end result is… well, just look around.

I remember reading about the stock market crash before the “great” depression and how there were wealthy bankers and businessmen jumping out of windows when they realized they screwed up and lost everything.  Isn’t it ironic how far we’ve come in 60 years in this country that they now know how to fix that little economic problem; they just steal from the middle class (who doesn’t have any say in it, elections are a joke) to cover their asses and it’s “business-as-usual”.  Now when the wealthy fuck up, the poor get to die for the mistakes… isn’t that a clever, tidy solution.

As government agencies go, the FAA is often justifiably referred to as a tombstone agency, though they are hardly alone.  The recent presidential puppet GW Bush and his cronies in their eight years certainly reinforced for all of us that this criticism rings equally true for all of the government.  Nothing changes unless there is a body count (unless it is in the interest of the wealthy sows at the government trough).  In a government full of hypocrites from top to bottom, life is as cheap as their lies and their self-serving laws.

I know I’m hardly the first one to decide I have had all I can stand.  It has always been a myth that people have stopped dying for their freedom in this country, and it isn’t limited to the blacks, and poor immigrants.  I know there have been countless before me and there are sure to be as many after.  But I also know that by not adding my body to the count, I insure nothing will change.  I choose to not keep looking over my shoulder at “big brother” while he strips my carcass, I choose not to ignore what is going on all around me, I choose not to pretend that business as usual won’t continue; I have just had enough.

I can only hope that the numbers quickly get too big to be white washed and ignored that the American zombies wake up and revolt; it will take nothing less.  I would only hope that by striking a nerve that stimulates the inevitable double standard, knee-jerk government reaction that results in more stupid draconian restrictions people wake up and begin to see the pompous political thugs and their mindless minions for what they are.  Sadly, though I spent my entire life trying to believe it wasn’t so, but violence not only is the answer, it is the only answer.  The cruel joke is that the really big chunks of shit at the top have known this all along and have been laughing, at and using this awareness against, fools like me all along.

I saw it written once that the definition of insanity is repeating the same process over and over and expecting the outcome to suddenly be different.  I am finally ready to stop this insanity.  Well, Mr. Big Brother IRS man, let’s try something different; take my pound of flesh and sleep well.

The communist creed: From each according to his ability, to each according to his need.

The capitalist creed: From each according to his gullibility, to each according to his greed.

Joe Stack (1956-2010)

02/18/2010

Greetings to all,

I just had to comment on this. To find the story, here is the link: http://www.humanevents.com/article.php?id=35018#c1

I think I know the direction that Mr Buchanan was heading for. The problem is, I never agreed with his whiny words and policies. Even now, people are still blaming “W” for their woes. You want to know the true reason why for our decline? The fact is, the US has been pointing fingers at others for over 30 years. JB tries to make this point, but it is lost after recital of rhetoric garbage. The way the US can get out of this is for all of us to ‘take ownership’, stop the blame game, and do what needs to be done.

But here is the crux: what is it that needs to be done. You will hear “we have so many problems..”, “the issues are numerous and vast..”, “there isn’t a simple solution or steps of solutions..”. Dont you believe them. In order to figure out what the problems are, we need to figure out who we, as a people and nation, are.

So, what is the United States of America? Now, you may be thinking “Gawd, not another history lesson..”. Well, too bad. The reason why schools push for 12 years of history is two fold: to rewrite history for selfish malicious use, and to get people sick of history to forget about it. It is like navigating a ship, driving a car, or even just walking from point A to point B: if you don’t know where you are at and how you got there, how can you plot where you are going to go?

Anyways, what were our American ancestors? Here is a link describing “American Colonists” http://en.wikipedia.org/wiki/American_colonists . While I will not recite the whole page, I would like to copy the first paragraph: The term colonial history of the United States refers to the history of the land from the start of European settlement to the time of independence from Europe, and especially to the history of the thirteen colonies of Britain which declared themselves independent in 1776.[1] Starting in the late 16th century, the English, Scottish, French, Swedes, Germans and the Dutch began to colonize eastern North America.[2][3] Many early attempts—notably the Lost Colony of Roanoke—ended in failure, but successful colonies were soon established. The colonists who came to the New World were from a variety of different social and religious groups who settled in different locations on the seaboard. The Dutch of New Netherland, the Swedes and Finns of New Sweden, the Quakers of Pennsylvania, the Puritans of New England, the English settlers of Jamestown, and the “worthy poor” of Georgia, and others—each group came to the new continent for different reasons and created colonies with distinct social, religious, political and economic structures.[4]

Now, there is something very very wrong with this summary. Can you tell what it is? Is it incorrect? No. Are there any wrong references? No. The problem with this summary is that it is watered down. It does not have the heart and soul of what was done and accomplished. Let me explain.

Imagine yourself a colonist. You board a ship, overcrowded with people, a ship that is maybe 80 ft in length and you are lucky if 12ft in width. You travel from one continent to another, that is, over 3000 miles of water that at any point, you could drown. Sickness was always rampant. If you were a woman, you always had to worry about rape. You were lucky you would eat once a day. You finally come over to America. You have very little with you, because of no space on the ship, or, you were poor and had very little to begin with. You are on a land that you have no familiarity with. You are melded into a society of people you do not know about. You have very little to no money, and if you had money, you could buy very little. There were homes with no heat save a fireplace, no air conditioning, very few clothes you could wear. And why would anyone put themselves through this? Because, for the chance. The chance of being free, free of clergy persecution, free of corrupt government officials, free of unfair tax levies, free of social miscreants and fools, etc etc. The concept of freedom. The thought of freedom, but derived from pure sacrifice, devotion, belief, and faith.

Do you see the difference between the two summaries of American colonists? Which one has the heart? Which one excites the senses, the fears, the digust, the joy of hope? The first is definition through society’s acceptance of language. Mine, is a definition of the heart and soul. And, there is the basic problem/solution that we need in this country. Do you think the colonists pointed fingers at others for their problems? (well, in a way they did..hence why they were colonists..but other than that). Do you think they looked for handouts? Did they expect to be clothed, fed, sheltered, given money, health services, financial pensions, 3 cars in the driveway, cell phone for every family member, laptop and LCD plasma TV for each person, twittering their facebooks, worried about keeping up with the neighbors, going green while finance going red, etc etc? I know, I put in ‘modern everyday concerns’ with that of old. But I did this with purpose. Do you see what the average ‘joe’ now worries about vs even just 100 years ago? 100 years. That is simply 4 generations? Maybe 3?

Ok, enough of the history lesson. I did mention that the steps to turn things around are simple. And they truly are: that is, IF you keep what our founding fathers/mothers went through.

1: Only if you are a citizen, or going through the path of legal citizenship, STOP all entitlements. This means, no health care, no welfare, no government handouts of any type. These services have been paid for by citizens and soon to be citizens. We have over 12 million illegals in this country. If each one is given $10,000 of various handouts, that is $1.2 trillion dollars handed out.

2: Those that are citizens and on welfare, cut out the fat. How many times has each one of us saw some woman with 2 or 3 kids, in a grocery store, with more gold bling on her body, looking like she just came out of a salon, driving a nicer car than you own, pay for groceries with food stamps? It is said that 1 out of 12 adults are receiving food stamps. If only 1% of them are cheating, that is still over 83,000 adults. Average amount of food stamps is $250 a month. That is almost 21 million a month, nearly $250 million a year.

3: Hand the bill to the country for every illegal we transport back to them. It is estimated that it costs over $80,000 per illegal we catch and transport back to their country of origin. This, is a service. If we merely catch and transport 25,000 illegals, that is $2 billion a year. The actually number is much higher, closer to a million. But think about that. If 25,000 brings in invoices over 2 billion, then a million would be over $80 billion dollars. Let us just invoice Mexico alone at 25,000 illegals. You know they would enforce and beef up their own border patrols just to prevent this!

4: Invoice other nations. What do I mean? Invoice every other country that asked us for help on a military level since 1963. Every military base we have overseas, every military action we performed at the host country’s request, etc etc. Then, take these ‘bills’ to the UN and tell the UN to shove it up its arse, proving “we are doing the job you sworn to do”. Now, reality is, they won’t do a thing. But, show to others that we have been the ones shouldering the load with an ungrateful lot. But lets say payments do come through. Take every dime of those payments and pay to the veterans, current military personnel, and those survived by the military personnel that died performing their duty and love to this country.

5: Present each bill/law on the table of House, Senate, and Presidency that is no more than 50 pages in length AND it can only contain material directly related to the bill. Too much pork in each bill, too much bureaucracy. Take again, military pay increase. That should be its own bill. A good subtopic is increasing the payments of veterans who have severe medical disabilities. That, would be a valid sub topic. Trying to get a grant for a farm in San Francisco area for 33 million dollars to grow soybeans and peanuts have nothing to do with this bill. It should be its own seperate issue. To enforce this, allow the people in each house and senate district to do a ‘recall’ of the person they elected every 6 months if 25% of the citizens agreed it is within bounds for review. What do I mean? If a senator is going crazy, not listening to their constituents, and causing severe distress and embarassment to their representative community, then, hold a vote and a meeting to see if that person should be removed from office. This would force elected officials to be more honest and stop wasting our taxpayer monies for their salaries and their personal agendas.

6: Now, when it comes to voting, I personally feel that there should be a compentcy test passed. Not anything specific about the candidates or anything like that, but a test on basic government structure and process. So many people who are voting are ignorant of the jobs, dutites, and responsibilities for each branch of local, state, and federal government. So, an example of just 10 questions each about the local, state, and federal government, with a 70% success rate to pass would allow you to vote. People may say that this goes against the Bill of Rights. I say, the blatant stupidity among the public of not knowing their own government, party, and candidates that they are voting on is against my right as a US citizen. Example: The day of the presidential election 2008, a reporter asked 513 confirmed Obama voters simple questions that pertained to Obama, Biden, and top Congressional democrats. 12 questions were asked of each person (the same 12 questions). 0.5% got all 12 questions right. The other percentages of questions/answers were staggering. However, when asked about questions of McCain and Palin, and the questions asked had lies as answers, each one of these people answered those questions “correctly”. They were also asked about Sarah Palin seeing Russia from her backyard and I think 85% said that Palin did say that (it was actually Tina Fey in her famous SNL skit, Sarah Palin never ever said that). What this test showed, is that the general public, ignorant of their own electoral system, can be programmed of how to vote. This video does exist, a little bit of searching can find it. I went through the trouble and found the Zogby poll link for everyone: http://www.youtube.com/watch?v=r9htwW21K8s . Bill of Rights. I believe in it with all my heart. I just don’t believe in the people generally anymore. Not until this trend turns around.

I could go onward with other points, and I shall in another post. At the moment, this is enough for everyone to digest all this information properly. Until then, take care.

W/R

Hause.

“HAFA” – Foreclosure Warning Dead Ahead! – The Market Ticker.

Don’t forget that we have a second wave of massive foreclosures coming Alt-A and Option-ARMS which are going to either reset or recast.  Now they are going to send another wave of defaults into the market as per a post I made back in December of 2008(courtesy of Barry Ritholtz and CBS).  Now on top of this the Fed is going to force(which they should have done YEARS ago) homes that are zombies or in first stages of default to flood the market.  Housing prices are going to crash.  I find this to be intentional by the Fed.  there is NO way they they did not know that this is going to crater housing prices.  This is going to exacerbate the coming wave defaults and foreclosures on top of the mortgages that are going to be defaulting this year.  Also signs in the credit market say something is affot..

As The Clock (er, Worm) Turns… – The Market Ticker.

You know it’s going to be bad and that the media is lying about how we are done with the recession when they put this stuff out:

I like it how Karl Denninger calls cnbc cnbs..msnbc could be msnbs as well.  Along with fox, dnn, abc and cbs.  With many of our manufacturing jobs permanently offshored don’t expect us to come back anytime soon.  Remember Japan’s “lost decade”?  We are about to have one as well.  runaway gov’t spending along with domestic hostile policies are going to continue to send jobs offshore as wlel as our money.  If you think this was incompetence…think again.  This is purposeful.

A decade of high unemployment is looming

‘New abnormal:’ Some think 10 years won’t be enough to replace losses
The Associated Press
updated 12:15 p.m. ET, Sun., Dec . 27, 2009

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WASHINGTON – Call it the Terrible Teens.

The decade ahead could be a brutal one for America’s unemployed — and for people with jobs hoping for pay raises.

At best, it could take until the middle of the decade for the nation to generate enough jobs to drive down the unemployment rate to a normal 5 or 6 percent and keep it there. At worst, that won’t happen until much later — perhaps not until the next decade.

The deepest and most enduring recession since the 1930s has battered America’s work force.

The unemployed number 15.4 million. The jobless rate is 10 percent. More than 7 million jobs have vanished. People out of work at least six months number a record 5.9 million. And household income, adjusted for inflation, has shrunk in the past decade.

Most economists say it could take at least until 2015 for the unemployment rate to drop down to a historically more normal 5.5 percent. And with the job market likely to stay weak, some also foresee another decade of wage stagnation.

Even though the economy will likely keep growing, the pace is expected to be plodding. That will make employers reluctant to hire. Further contributing to high unemployment is the likelihood of more people competing for jobs, baby boomers delaying retirement and interest rates edging higher.

All this would come after a decade that created relatively few jobs: a net total of just 464,000. By contrast, 21.7 million new jobs were generated between 1989 and 1999.

Economist David Levy, chairman of the Jerome Levy Forecasting Center, says the country faces a new era of chronically high unemployment, averaging 8 percent or more over the next decade.

The “New Abnormal,” he calls it.

Levy thinks the New Abnormal also means average pay will dwindle, along with consumer prices. That would make it harder for households to pay down debt, he warns.

By the Federal Reserve’s reckoning, the jobless rate could remain as high as 7.6 percent in 2012. And it would take two or three years after that for the job market to return to normal, the Fed says.

It’s possible jobs won’t return to pre-recession levels at any point over the next 10 years, Levy says.

That’s mainly because the economy’s recovery, sluggish by historical standards, isn’t expected to regain its vigor over the next few years. As a result, companies will be in no rush to ramp up hiring.

Other analysts think the economy will recover the jobs wiped out by the recession by 2013 or 2014 but that the unemployment rate will stay high. They note that the healing economy will cause more people to stream back into the labor force, vying for too-few jobs.

In addition, baby boomers whose retirement accounts have shrunk could put off retiring and stay in the work force longer. That would leave fewer positions available for the unemployed.

Other contributing forces — businesses squeezing more work from employees they still have and relying more on part-time and overseas help — have intensified. And record-high federal budget deficits and the threat of inflation could drive up interest rates, which could hobble growth and restrict job creation.

All those factors could combine to keep unemployment high.

“It will be the mother of all jobless recoveries,” predicts economic historian John Steel Gordon.

On the other hand, it’s possible some technological innovation not yet envisioned could generate a wave of jobs. Yet at the moment, most economists aren’t betting that any such breakthroughs will rescue the labor market.

The last time the jobless rate reached double digits, in the early 1980s, it took six years to bring it down to normal levels.

Unemployment hit a post-World War II high of 10.8 percent at the end of 1982 as the country was emerging from a severe recession. The rate fell to around 5 percent in 1988. It took less than two years for the number of jobs to return to its pre-recession level.

In this recovery, the economy is far more fragile.

Hard-to-get credit is exerting a drag. Wounds from the banking system’s worst crisis since the Great Depression will take years to fully heal. People and companies, scarred by the crisis, are likely to restrain borrowing, spending and investing.

Some analysts think the jobless rate might have already peaked at 10.2 percent in October. But most economists predict the rate will peak at around 10.5 percent by the middle of next year.

“We are digging out of a very deep hole,” says Lynn Reaser, chief economist at Point Loma Nazarene University in San Diego and chief economist for the National Association for Business Economics.

Reaser estimates it will take until 2015 for the unemployment rate to drop to 5.5 percent.

A sputtering job market carries other consequences. One is flat wages. When many people compete for few jobs, employers have no incentive to raise pay.

The economic shocks of the past decade already have cut into Americans’ incomes. That’s among the reasons why people feel they’re standing still economically.

Median household income, adjusted for inflation, fell to $50,303 in 2008, according to the U.S. Census. That gauge combines wages and salaries, investment income and government benefit payments like Social Security. It’s down 4 percent from a peak of $52,587 in 1999, when incomes were bolstered by stock gains from the dot-com boom.

That bubble burst in 2000. Since then, workers have seen meager wage gains. Adjusted for inflation, wages grew about 13 percent in the past 10 years — the slowest pace in five decades, according to calculations made by Scott Hoyt of Moody’s Economy.com.

That trend is predicted to continue.

“There will be a continued hollowing-out of the middle class,” says H.W. Brands, a historian at the University of Texas.

He points to productivity growth, which has let companies produce more with leaner work forces, the offshoring of service-sector jobs and the shrinking of factory jobs.

That’s why Vicki Adriano, 51, who works at a General Motors plant in Lordstown, Ohio, looks ahead to the coming decade with trepidation.

The economic wreckage of the past year means she’ll probably have to work longer than she had expected at the factory —  at least seven more years. She frets about the loss of economic security.

“Everything you worked for all those years can be gone in a minute,” she says.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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URL: http://www.msnbc.msn.com/id/34601256/ns/business-us_business/

When, not if, it is you will discover the what I have said all along is the truth purpose of this so-called “reform” – a single-payer system.

Here’s how it will happen.

1.

Congress will pass and Obama will sign something containing this “individual mandate.”

2.

This will generate immediate lawsuits which will begin their way through the system, headed for the United States Supreme Court. That process will take several years. Note that the so-called “benefits” of this reform will also take several years to show up. This is not an accident.

3.

Meanwhile, the taxes begin immediately. This is exactly what happened in the 1930s by the way – taxes were raised right into the maw of an economic recession, and helped turn it into a Depression. Such it will be this time as well.

4.

Young, healthy people will pay the “fines” under protest and refuse to buy coverage (it’s cheaper than complying with a $15,000/year mandate to pay the $750/year fine!) and join said lawsuits in Step #2. This will in turn begin to force private companies out of the system (remember, there are also price controls in there!) as adverse selection will not be eliminated as promised.

5.

At some point the courts will strike the individual mandate. Free to not pay the fine or buy insurance and prevented from raising rates adverse selection will collapse the remaining private health insurers.

via The True Intent of Health “Reform” – The Market Ticker.

Did you ever wonder why the United States isn’t even hinted at in the Bible?  OPEC is getting their own currency, China is going to head that way.  It is only a matter of time now before there is a truly one world currency.  To think I saw this on a financial blog hwo is worried aobut hte US currency pretty much going to zero.  What he misses is hte ramifications of the moves other countries are making.  Hang onto your hats folks…this is no longer an earthly thing..this is a heavenly thing!

Today’s lesson in falsity is the announcement, long rumored, by the Gulf States that they will be forming a common currency, breaking the formal and informal dollar pegs that have controlled the price of oil and kept the petro-dollar recycling mill operating, allowing The United States to force our inflationary policies down the Arabs&apos; throats.

“The Gulf monetary union pact has come into effect,” said Kuwait’s finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.

The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (£739bn), some 40pc of the world’s proven oil reserves, and financial clout equal to that of China.

Potentially displacing my tailfeathers. That displacement is now assured.

Oh, and it doesn’t stop with just money either:

The GCC also agreed to create a joint military strike force – akin to the EU’s rapid reaction force – to tackle threats such as the incursion of Yemeni Shiite rebels into Saudi territory earlier this year.

They nevertheless repeated on Tuesday that “any military action against Iran” by Western powers would be unacceptable.

Well there you have it.

China will be next with a Pan-Asian common currency and exchange system. The rumblings have been coming from there too, and they’ll be followed by action – if for no other reason than that with the unpegging of oil from the dollar there is no longer any reason for China to continue to maintain a dollar hegemony of its own, and in fact doing so could be extremely damaging to China&apos;s economy.

via Calling The Time “Person Of The Year”: Jackass – The Market Ticker.

After pointing out “three out of five jobs in the state are created by small and family-owned businesses,” O&apos;Malley outlined plans to help businesses gain more access to credit by creating the Maryland Small Business Credit Recover Program which offers loan guarantees; proposed a Job Creation and Recovery Tax Credit to give businesses a $3,000 tax credit for every unemployed worker it hires; and pledged to introduce emergency legislation to resolve the increased rate impact small businesses face next year for the Unemployment Trust Fund.

via Governor unveils plans to help small businesses.

It looks good on paper but i can guarantee you it costs much more than 3k/yr to hire an employee.

The Environmental Protection Agency took a major step Monday toward regulating greenhouses gases, concluding that climate changing pollution threatens the public health and the environment.

The announcement came as the Obama administration looked to boost its arguments at an international climate conference that the United States is aggressively taking actions to combat global warming, even though Congress has yet to act on climate legislation. The conference opened Monday in Copenhagen

via EPA: Greenhouse gases are harmful – Climate Change- msnbc.com.

The real second wave doesn’t hit until the 2010 resets of the rest of the sub prime market(which includes quite a bit of commercial) resets in 2010.

‘Second wave’ of foreclosures continues to rise

Wheaton homeowner saved moments before his home goes on the auction block

In a matter of months, Wheaton resident Constantine David lost his wife of 23 years through divorce, his job as a private translator when he was laid off and therefore both the incomes that were paying for his split-level Connecticut Avenue Estates home.

He approached his bank, which was then Chevy Chase Bank and is now folded into Capital One Financial, in late 2007 to refinance his loan. He figured that a more affordable loan could help him better support his two children while he searched for a new job, David said.

But Chevy Chase wouldn’t negotiate. In the meantime, David paid too little too late and fell behind on his mortgage three months in a row. He received a foreclosure notice in January 2008. By June of that year, a lawyer advised a still-unemployed David to file for bankruptcy. That didn’t move along talks either: By filing for bankruptcy, David took the case to court, so the court must decide the outcome, David said bank officials told him.

“The bank is not talking to me, because I became the enemy,” David said.

A former diplomat unversed in the nuances of mortgage loans, David scrambled for help from area nonprofits and county agencies. All were too overwhelmed to take his call, so it took weeks for someone to return his message and months to assign him a counselor, he said.

Despair eroded his hope as the knocks on his door became louder.

“Foreclosure became imminent. It seemed to be the only way out of this situation,” David said.

David is one of a rising number of longtime homeowners whose cushy lives have been turned upside down by the foreclosure crisis. Dubbed the “second wave” of foreclosures by housing experts, many homeowners who made all their payments on time are suddenly struggling after losing their jobs in the cascading economy.

The second wave continues to rise even as the first one, comprised mostly of sub-prime mortgages, has yet to subside, creating fresh chaos for already overworked home-counseling agencies and uprooting longtime residents of solid neighborhoods, experts say.

But where the new foreclosure dilemma truly lies is in many banks’ unwillingness to renegotiate loans for people like David, some experts say.

“The banks don’t bring anything to the table,” said Farida Muhammad, a foreclosure counselor with the Montgomery County chapter of Home Free USA, a nonprofit homeownership development organization.

“We don’t have the power,” added Muhammad, who worked with David. “The power’s in the investor and what they decide to do with the loan.”

David and Muhammad struggled to reach a Chevy Chase official who could hear out his hardship case. In the meantime, David found a $12-an-hour job stocking shelves at CVS. But what little money David could save to start paying off his mortgage didn’t help, because the bank refused to take partial payment, David said. As the delinquent payments piled up, Chevy Chase announced it was putting his house up for auction Nov. 18 on the steps of Montgomery County Circuit Court in Rockville.

Situations like David’s are complicated and demand an equally complex answer—preferably before foreclosure is imminent, said Richard Nelson, the director of the county’s Department of Housing and Community Affairs. Unfortunately, banks are reluctant to sit down with homeowners before a foreclosure notice is sent out—and oftentimes just as reluctant after, he said.

“The banks are the last ones to realize what new approaches are necessary to solve this problem,” Nelson said. “The question I have is: … When do they realize it cost them more to go into foreclosure than it does to help settle with the borrower?”

In late 2008, Capital One purchased Chevy Chase. Julie Rakes, a spokeswoman for Capital One, wrote in an e-mail to the Gazette on Nov. 23 that “…it has always been our policy to work with borrowers who experience financial distress and to offer relief alternatives when appropriate. For customers experiencing financial challenges, we work to reduce the monthly repayment burden for those who qualify for assistance.”

She declined to elaborate on how and when Capital One offers to renegotiate loans.

Since 2007, some 2,060 Montgomery County homes were foreclosed on and purchased by banks, and more than 12,000 were at some stage of the process, Nelson said.

But banks have been even more difficult to work with in the second wave of foreclosures, Nelson said. In the third quarter of 2009, which began in July and ended in September, 864 properties received notices they were late on their mortgages, 986 homeowners were told by their bank that their home would be sold in an foreclosure auction and 368 were acquired by the bank, according to Nelson’s stats.

David awoke the morning of Nov. 18 prepared to become yet another number.

“I was not just angry. I was devastated,” he said. “I thought I would go to the highest building possible and … pretend I was going to jump.”

But a phone call from his foreclosure counselor confirmed what he hadn’t dared to hope: Capital One had suddenly agreed to make a new offer at the very last minute.

He arrived at the foreclosure auction anyway, just to make sure he wasn’t dreaming.

“They were highly unpredictable,” he explained. “For nine months, they weren’t willing to speak with me.”

When investors skipped over his home at the auction, his taut face relaxed into a loose smile.

But he remained hesitant to accept his good fortune: “One thing is they can tell you that [they’ll negotiate],” he said. “Another thing is they can stab you in the back.”

Several weeks later, a happy David answered his home phone. Capital One had made an offer he could afford. If he made every payment on time for three months, the offer would become permanent.

“People in good faith did not know me but had sympathy,” he said on how his problem got solved. No one involved in his case really understood the bank’s change of heart, David said, and Capital One declined to comment on individual cases.

Many housing officials know David’s story is a rare success.

The only way to ensure there are more cases like David’s is to engage in full, pre-emptive talks among banks, homeowners, local governments and foreclosure counselors. At least one of those entities is usually unwilling to cooperate and the rest are overwhelmed, he said.

And if unemployment continues to rise, there’s no limit to how many more people could be in his shoes and just how big this second wave of foreclosures could be, Nelson said.

“I don’t think we’re at a crest,” he said. “I think we’re going to see a lot over the course of the next year.”

hte rest of

‘Second wave’ of foreclosures continues to rise.

Winners and losers in the GE/NBC Universal/Comcast deal « The Cody Word.

It’s an interesting take..and he’s most likely right.  the Time Warner/AOL suicide pact was sold the same way this one is being sold.  Don’t be surprised if in about 5-10 years this all falls apart with Comcast in bankruptcy or worse.

GM Resignation Open Thread | The Big Picture.

I’ll tell you what it is.  These folks don’t like being told you are going to run a multi-billion dollar giant, deal with constant gov’t interference, dealing with all the other gov’t regs imposed on your company, and then be told oh yeah you are going to make 500k or less per year.  I would tell him to go suck an egg really fast.

A decade ago, the town of New London, Connecticut claimed Kelo’s house by right of eminent domain. The plan was to demolish the residential neighborhood so that Pfizer could built a massive research and development plant on the adjacent land. Pfizer got the land for next to nothing. Five Supreme Court justices upheld the taking, ruling that although the primary beneficiary was a corporation, it met the constitutional requirement of “public use.”

via The Famous ‘Kelo House’ Property Is Now A Vacant Lot.

99% of all of our issues are due the gov’t doing things that are against the US Constitution. Here is just a few of them:

1. $11 Billion to $22 billion is spent on welfare to illegal aliens each year by state governments.

Verify  at:  http://tinyurl.com/zob77

2. $2.2 Billion dollars  a year is spent on food assistance programs such as food stamps, WIC, and free school lunches for illegal aliens .

Verify  at:  http://www.cis.org/articles/2004/fiscalexec.html

3. $2.5 Billion dollars a year is spent on Medicaid for illegal aliens.

Verify at:  http://www.cis.org/articles/2004/fiscalexec.html

4. $12 Billion dollars a year is spent on primary and secondary school education for children here illegally and they cannot speak a word of English!

Verify  at:  http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.0.html

5. $17 Billion dollars a year is spent for education for the American-born children of illegal aliens, known as anchor babies.

Verify at  http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.01.html

6. $3 Million Dollars a DAY is spent to incarcerate illegal aliens .

Verify at:  http://transcripts.cnn.com/ TRANSCRIPTS/0604/01/ldt.01.html

7. 30% percent of all Federal Prison inmates are illegal aliens .

Verify at:  http://transcripts.cnn.com/TRANSCRIPTS/0604/01/ldt.01.html

8.. $90 Billion Dollars a year is spent on illegal aliens for Welfare and Social Services by the American taxpayers.

Verify  at:  http://premium.cnn.com/TRANSCIPTS/0610/29/ldt.01.html

9. $200 Billion dollars a year in suppressed American wages are caused by the illegal aliens.

Verify  at:  http://transcripts.cnn.com/TRANSC RI PTS/0604/01/ldt.01.html

10. The illegal aliens in the United States have a crime rate that’s two and a half times that of white non-illegal aliens.

Verify at:  http://transcripts.cnn.com/TRANSCRIPTS/0606/12/ldt.01.html

11. During the year of 2005 there were 4 to 10 MILLION illegal  aliens that crossed our Southern Border also, as many as 19,500 illegal aliens from Terrorist Countries.  Millions of pounds of drugs, cocaine, meth, heroin and marijuana, crossed into the U. S. from the Southern border..

Verify at: Homeland Security Report:  http://tinyurl.com/t9sht

12. The National Policy Institute, estimated that the total cost of mass deportation would be between $206 and $230 billion or an average cost of between $41 and $46 billion annually over a five year period.’

Verify at:  http://www.nationalpolicyinstitute.org/pdf/deportation.pdf

13. In 2006, illegal aliens sent home $45 BILLION in remittance to their countries of origin.

Verify at:   http://www.rense.com/general75/niht.htm

14. ‘The Dark Side of Illegal Immigration:  Nearly One million sex crimes Committed by Illegal Immigrants in The United States ..’

Verify at: http: //  www.drdsk.com/articleshtml

First let’s read about the new bills the dems have announced:

WASHINGTON — House Democrats scrambling for ways to pay for overhauling health care would raise taxes on the wealthiest Americans to levels not seen since the 1980s, breaking one of President Barack Obama’s campaign pledges.

The tax increase would be limited to the top 1.2 percent of earners — families that make more than $350,000 a year. But it would raise a total of $544 billion over the next decade, covering a little more than half the cost of the health care plan.

The bill unveiled by House Democratic leaders Tuesday would create three new tax brackets for high earners, with a top rate of 45 percent for families making more than $1 million. That would be the highest income tax rate since 1986, when the top rate was 50 percent.

The plan would honor Obama’s campaign promise not to raise taxes on families making less than $250,000. But it would break an Obama pledge that no one — including the wealthy — would pay higher taxes than they did in the 1990s. The pledge, as listed on Obama’s campaign Web site, was: “No family will pay higher tax rates than they would have paid in the 1990s.”

Democrats argue that high-income families fared well under President George W. Bush’s two terms as their taxes dropped and their incomes soared, giving them the ability to absorb higher taxes. Republicans argue that the tax increases would hurt small business owners who typically pay their business taxes on their individual returns.

Rep. Charles Rangel, chairman of tax-writing House Ways and Means Committee, called the plan “the moral thing to do.”

“This innovative bill provides a uniquely American solution to control costs and put patients first without burdening future generations with debt,” the New York Democrat said.

Obama’s strategy throughout the health care debate has been to publicly encourage the efforts of congressional Democrats even as they debate proposals that would break his campaign promises. The goal is to keep lawmakers working toward a package that expands coverage and slows the growth in costs.

On Wednesday, Obama said that both the House bill and a separate measure passed by a Senate committee would “take what’s best about our system today and make it the basis of our system tomorrow — reducing costs, raising quality, and ensuring fair treatment of consumers by the insurance industry.”

House Democratic leaders hope to pass the health care bill before Congress goes on vacation in August. Under the House plan, the federal government would be responsible for ensuring that all people, regardless of income or the state of their health, have access to an affordable insurance plan. Individuals and employers would have new obligations to get coverage, or face hefty penalties.

The bill would add a 5.4 percent income tax “surcharge” on families making more than $1 million a year, starting in 2011. Families making more than $350,000 would get a 1 percent tax and those making more than $500,000 would get a 1.5 percent tax.

If certain savings in the health care system are not achieved by 2013, the new tax on families making more than $350,000 would increase to 2 percent, and the tax on those making more than $500,000 would go to 3 percent.

Currently, the top marginal income tax rate is 35 percent. Obama wants to let some tax cuts enacted under Bush expire, boosting the top rate to 39.6 percent in 2011. The new health care taxes would increase the top rate to 45 percent.

House Republican leader John Boehner, R-Ohio, called the bill a job killer that would result in rationed care, fewer choices for patients and diminished quality.

“If this isn’t bad enough, this new maze of government bureaucracy will be funded by a new small business tax that will cost more American jobs,” Boehner said. “During a time of economic recession, the last thing Congress should be doing is punishing small businesses that create a majority of the jobs in this country.”

Democrats argue that the tax increases would affect only 4.1 percent of tax filers who report small business income. Those small businesses, however tend to be the ones that employ the most workers, according to data from the National Federation of Independent Business.

The National Association of Manufacturers said the new taxes would make it harder for small businesses to grow, invest and create jobs.

“These new taxes will have longstanding negative consequences to the U.S. economy and cost jobs,” Jay Timmons, the association’s executive vice president, wrote in a letter to members of Congress.

Now if you want to see what is going to happen read below:

Is Taxing ‘The Rich’ to Pay for National Healthcare Socialism? | NewsBusters.org.

Lunch Room Economics

Lunch Room Economics

Suppose that every day ten men go out for lunch and the tab for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
All for the same meal.

So, that’s what they decided to do. The ten men ate lunch every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. He said, “Since you are all such good customers, I’m going to reduce the cost of your daily lunches by $20. Food for the ten will now cost just $80.”

The group still wanted to pay their bill the same way we pay our taxes, so the first four men were unaffected. They would still eat for free. But what about the other six men — the actual ‘paying’ customers? How could they divide the $20 windfall so that everyone would get his “fair share”? They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being “paid” to eat his lunch. So the restaurant owner suggested that it would be fair to reduce each man’s bill by roughly the same formula based on what was paid, and he proceeded to work out the amounts each should pay!

And so: The first four continued to eat lunch for free (no change)
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $50 instead of $59 (15% savings).

Each of the six who had been paying was now better off than before, and they all still ate the same meal. But once outside the restaurant, the men began to compare their savings. “I only got a dollar back out of the $20 savings,” declared the sixth man. He pointed to the tenth man, “but he got $9”! “Yeah, that’s right,’ exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got back nine times more than I!” “That’s true!!”shouted the seventh man. “Why should he get $9 back when I got only $2? The wealthy get all the breaks!” “Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. This payment system exploits the poor!”

So the nine men surrounded the tenth guy and beat him up. The next day the tenth man didn’t show up for lunch, but the other men sat down and ate without him, anyway. When it came time to pay the bill, they discovered something interesting. Between them all they didn’t even have enough money to pay half the bill!

And that, boys and girls, presidential candidates and economic pundits, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much or attack them for being wealthy and they might not show up to eat with us any more. In fact, they could start eating lunch some other place where the atmosphere turns out to be a lot friendlier.

v

Banks: Here Come The OptionARM Blowups! – The Market Ticker.

Meant to post this yesterday.

Mr. Nocera (And Regulators): WAKE UP! – The Market Ticker.

I have been talking about this for a long time.

School board cuts diving, trims some games./  That figures.  HOw about cutting the 52% of the overlal budget that is going to administrative pay?!?!?!  Get rid of some of the fatcat’s overpayments at the top and sned that back down to the schools instead of cuting school functions.

On that date, a House financial services subcommittee plans a hearing on mark-to-market accounting rules, which have been blamed for forcing banks to report billions of dollars in write-downs.

Karen Finerman has long been an advocate of putting these rules on hiatus for a while and “letting the banks breathe.”

It’s been widely revealed that fraud and too much debt got us into this mess…now they want the rules removed that are forcing jsut a small percentage of this stuff into the open to be removed..so more lies and fraud and overleverage can be done.  This is going to result in more losses and more hard times.  Until this behavior is stoped any uptick yous ee will be naother bubble that goes boom and each boom is going to be more destructive than the preceeding one.

Fed Launches $200 Billion Consumer Credit Program – Economy US News Story – CNBC.com.

oh yes..let’s get a loan directly fromt he gov’t.  I am sure these are going to have some serious onerous terms in it.

HOnestly with all of this gov’t intervention bo is doing it seems to me he is relaly trying tod estroy our market system and make this a socialistic country within 4 years.

Remarks Of TickerGuy – The Market Ticker.