Friday, December 17, 2010

XMas Break

Not sitting behind my computer again until 2011. Have a nice holiday season! Rest up for the massive political and economic turmoil we'll confront in the near future, brought to us by incompetent politicians like Republican Senator Richard Burr.

North Carolina deserves better than Republican Senator Richard Burr.

Wednesday, December 15, 2010

GOP - We're the party of 5 year olds

So, all the Republicans on the Financial Crises Panel got up and walked out on the commission? They want to blame only the Federal Government for this financial crises that wrecked our economy? They think it's all about Fannie Mae and Freddie Mac? Wall Street running wild with unregulated derivative securities had nothing to do with the crises?

Please. These Republicans are like 5 year old children. When they don't get their way, no matter how unrealistic their demands, they cross their arms, pout, and storm out of the room. What a bunch of immature infants.

Fannie Mae and Freddie Mac helped support a $2 Trillion sub-prime housing debt market. But Republican failure to instill adult oversight on to this market allowed Wall Street to create $25 Trillion in bets against only $2 Trillion in securities. When those bets went bad, taxpayers had to bail out AIG and the Banks. The cascading fear surrounding this central issue drove simultaneous selling that caused massive losses across all markets and all economies. But Republicans want to pin all the blame on the base $2 Trillion and ignore the $25 Trillion Wall Street betting parlor that started this mess?

I guess I was wrong. I guess this crises had absolutely nothing to do with Wall Street and it's Laissez-Faire Republican Party supporters (among them, Senator Richard Burr) who failed to instill adult oversight. Pardon me. It turns out that five year olds are much more capable of running our nation after all.

NOT.

North Carolina deserves better than Republican Senator Richard Burr.

Richard Burr doesn't see the wreck coming


My dream last night was a real doozie. I'm driving on a narrow, two lane, country road. It's night and pouring rain. My windows are fogging up inside my car. But I have abnormally strong headlights. It's weird because I can see miles down the road but have a very narrow window through which I can see ahead. I'm scared, and sweating profusely. My heart is pounding. A dread is coming over me that something really bad is about to happen.

It gets worse. A massive 18 wheeler is coming over a hill ahead. It's swerving like a drunk driver is behind the wheel. Rubber is flying off the tires. The truck bed is tilting side and side. There's no way that I am going to pass this out of control truck without it plowing right over me. I'm madly making an attempt to use my brake and steering wheel to retreat to the side of the road. Nothing is responding. My death is within view.

Then I wake up.

This morning I flipped on my trading screens and starting the normal routine of catching up on the Asian and European trading activity. All I see is violence breaking out across the world. Massive street protests in the UK and Greece. People are mad as hell at their irresponsible governments that have spent them into bankruptcy.

The truck. I see it coming. Do you?

Senator Richard Burr doesn't see that truck coming. Senator Richard Burr doesn't see the danger ahead. Senator Richard Burr just voted for one hell of a massively irresponsible bill that increases our nation's debt by over $1.1 Trillion. This irresponsible bill is so crammed full of crap that we're spending money on a myriad of stupid stuff - 6,488 earmarks. It's a bill that rewards the super rich in our nation, although we suffer from the greatest income disparity in our nation's history. It's a 1,924 page bill that spends over $500 million per page. It's a symbol of the total break down and failure of our nation's government.

This bill is the epitome of insanity. It cuts taxes and spends a massive amount of money at a time when our nation is already over $14 Trillion in debt and running $1+ Trillion annual deficits. It's more of the same old crap used by our Republican party during the Bush administration that wound up destroying our nation's economy. We can't solve our problems by repeating all the same actions that delivered these problems to our doorstep. If cutting taxes and spending money delivers a painful economic outcome, North Carolinian common sense says that it's now time for bills that increase taxes and make deep spending cuts. But we can't expect common sense out of our state's Republican Senator Richard Burr.

Senator Richard Burr is an embarrassment to the State of North Carolina. There's a reason Richard doesn't see the truck coming. He's the drunk driver behind the wheel. Richard Burr is determined to bring an end to life as we know it. Richard Burr is determined to kill off America with his irresponsible tax cuts and ridiculous spending.

North Carolina deserves better than Republican Senator Richard Burr.

Addendum - It's likely that I am confusing a $1.1 Trillion omnibus spending bill with a $900 Billion tax cut and spending bill. Two different animals. Same irresponsible crap that always goes on in Washington DC. Same irresponsible crap that our Republican Senator Richard Burr has been a party to for 15+ years.

Tuesday, December 14, 2010

What Richard Burr has done to our country



We're going to be $18 Trillion in debt within the next few years. But you can count on Republicans and Richard Burr to be fighting tooth and nail to increase those tax cuts on the super wealthy in our country.

North Carolina deserves better than Republican Senator Richard Burr.

Monday, December 13, 2010

Richard Burr is a Liar


In his recent campaign, Richard Burr pointed fingers everywhere but in the mirror for our nation's fiscal irresponsibility:

"we must not under-estimate the long term effects of continuing to add to our federal deficit" ... Mr. Burr says in one of his E-Newsletters.

Mr. Burr runs commercials complaining about "more government spending" and "more federal debt".

In the NC Senate Debate on June 27, 2010, Mr. Burr cries "We're $13 trillion in debt. The answer is to stop spending. Americans are saying 'enough'. The answer is, let's stop spending."

In April 2010 in a WRAL radio interview the first words out of Richard's mouth were "My first priority is to address our enormous debt. "

and I could go on and on and on ... time and again Mr. Burr speaks out about our debt and spending, like he's not responsible. Others in Washington DC have created this problem, according to Richard.

Today, Richard Burr will vote to borrow an additional $900 Billion from China. Mr. Burr will willingly pile another $900 Billion on top of the $14 Trillion in debt we already suffer from. And this $900 Billion over the next 2 years is in addition to another $2 - $3 Trillion in debt we are already going to incur. By the time its all said and done, our nation will be in debt by $17 - $18 Trillion within 2 years. Mr. Burr will be voting to spend this $900 Billion because he thinks its critical that we give our nation's super wealthy yet another Republican income tax break.

If you're reading this, and you voted for this loser, I sure hope you're waking up to what I knew months and years ago. Mr. Richard Burr is a LIAR. The man is a typical politician. He'll say whatever is convenient in order to be elected. He takes no responsibility for his own actions. This man has been in Congress for 15+ years, and Richard Burr is one of the primary reasons our economy is suffering and our debt has gone through the roof. If you voted for this loser, you failed North Carolina, you failed our nation, and I hope like hell you learned a lesson - our Republican Party exists to simply protect the super wealthy.

North Carolina deserves better than Republican Richard Burr.

Friday, December 10, 2010

Republicans like Congressman Paul Ryan really SUCK

Congressman Paul Ryan was interviewed by the Wall Street Journal today. I deplore the stupidity of politicians like Paul Ryan. They are morons who don't have a CLUE how our income tax code REALLY works. And they prove it time and time again.

Paul Ryan had the nerve to warn that "Class Warfare" will hurt tax reform. Paul - it doesn't have a damn thing to do with Class Warfare. It's all about fairness. The income tax structure you have devised taxes Warren Buffett at a FULL 10% lower than most middle class Americans. Warren's LT Capital Gains get taxed at 15%. Most of middle class America gets trapped (by AMT) paying 25% on their capital gains.

I'm paying 25% on my LT Capital Gains, to Warren's 15%. My net worth? It's only .000075 that of Warren's. My total income? Likely only a gnat on an elephant's ass in comparing me to Warren. But my tax rate is substantially more than that of a Billionaire? Just how in the hell is that fair?

Paul, in his infinite wisdom, has the gall to insist that people like me are just pounding the "Class Warfare" drum. Wake the F*CK up PAUL. It's about fairness.

Our country deserves better than idiots like Paul Ryan and Richard Burr. These mental midgets need to spend a little time and learn just how our tax system really works. Middle class America gets screwed, to the benefit of the super wealthy.

North Carolina deserves better than Republican Senator Richard Burr.

Our future - 2

In a couple years, this will be a common sight in the streets of America:



BUT NOT TO WORRY. ALTHOUGH WE'LL BE $18 TRILLION IN DEBT BY THEN, OUR REPUBLICAN PARTY WILL STILL BE PUSHING HARD FOR INCOME TAX CUTS FOR THE MOST WEALTHY AMONG US.

North Carolina deserves better than Republican Senator Richard Burr.

Our future

In a couple years, you'll hear this from a large number of Americans:

Thursday, December 9, 2010

The face of ultra right-wing Republicans

Look directly into the face of ultra right-wing Republican America. This is the base who voted the Richard Burrs into office. Is it any wonder we send idiots to represent us in Washington DC?

Flow of Funds Report = Richard Burr's failure

The Fed just released it's quarterly Flow of Funds report. It's a snapshot of the net worth of American Households (meat of it is on report page 104, PDF page 111). It adds up the assets, subtracts the debts, and tells us what we're worth. Americans are $10 Trillion poorer since we first sent our idiot Republican Senator Richard Burr to the US Senate. Nice job there Senator Burr.

Where have we lost our wealth? A rough look at where we have been hurt:

$5 Trillion up in smoke in housing
$1 Trillion gone from our stocks and mutual funds
$1 Trillion down the drain in our retirement assets
$2 Trillion went poof from the value of our private businesses
and another $1 Trillion here and there.

And the real kicker, this accounting doesn't even consider what we're piling on our shoulders in the way of national debt! Since Richard Burr's been in the US Senate, we've added about $7 Trillion to our national debt. $10 Trillion here, $7 Trillion there ... pretty soon you begin to wonder how it is that we tolerate Richard Burr's incompetence.

If there was ever a report card sent home with our politicians, it's the net worth of America. Our Senator Richard Burr has overseen the destruction of many Trillions in American wealth. I don't know about you, but I'd rate his effort one hell of an "F". Our Republican Senator is a failure.

North Carolina deserves better than Republican Senator Richard Burr.

You watching the violence in the UK?


I'm absolutely amazed at what's happening in the UK today. Students there are getting violent in massive street protests. That's not the amazing thing to me though. What amazes me is how the commentators on CNBC call these protests ridiculous. These CNBC commentators are blind to the real problem here.

What's happening in the UK is a massive injustice. Just a few years ago, college tuition there was free. Then it got bumped up to about $3 to $5 K a year. And now, because of UK financial problems, it's getting bumped up to around $15 K annually. From free to $15 K a year in short order. Do I think students in the UK should pay $15 K annually in tuition? Yes I do. But that's not the issue here.

The issue is how the UK government really screwed these students by not giving their families time to plan. If you told a family that a newly born child would have to pay a pretty penny for tuition when they reached college age, that's fair. That gives the family time to plan, sacrifice, save. But when you allow a crises to build, and then just drop a massive financial obligation on the doorstep of a family, then it's an outrage.

Prepare yourself. Our elected representatives in America, like our worthless Senator Richard Burr, have so ignorantly mismanaged our country's finances, that in a few short years we're going to be royally screwed, just like the university students in the UK. Watch, and learn. And when it happens, you'll be asking how in the living hell we could have been stupid enough to have elected idiots like Richard Burr.

We don't need tax cuts. We do, though, need spending cuts, deep spending cuts, now. And we need for the super wealthy in our country to pay more income taxes. Most of all, we need for our Republican Party to start applying common sense. And we really don't need idiots like Richard Burr, blind followers who only do what the party leaders tell them to do.

North Carolina deserves better than Republican Senator Richard Burr.

Once again, David Stockman sounds the alarm

David Stockman, former President Ronald Regan's budget director, won't stop punching at the insanity going on in Washington DC. And his latest article on the Bush Tax cut preliminary agreement has him livid.

Key points David makes now:
  • ... it's useful to recall the classic traits of banana republic finance. These include massive and chronic government debt issuance; reckless monetary expansion to absorb it; and pervasive economic distortions that cause an uphill flow of income and wealth to the top of the economic ladder. The Obama White House’s latest act of fiscal desperation accomplishes all three.
  • ... the Fed is stimulating not loans to Main Street, but global commodity prices and the short-term trading values of equities, corporate credit, and all manner of derivative risks.
  • ... two-year extension of the 15% capital gains tax rates, for example, will shield the winnings of speculators in risk assets like copper futures and Netflix (NFLX) call options, but won’t do much to incentivize real supply-side inventors and entrepreneurs.
  • ... the artificially bloated levels of income and consumer spending that resulted from eight years of Republican deficit finance and money printing have evaporated, and can’t be recreated by more of the same.
  • ... income and wealth is being driven to the top of the economic ladder, while Main Street is being punished with soaring living costs and anemic returns on bank account savings.
Well, it appears David and me are long lost twins. His are points I've made here time and again, long ago. It's likely that we also both see the same outcome. Republicans are going to absolutely destroy our country. We're all going to eventually live in the woods and hunt our supper from the creeks and trees in our back yards. It's only a question of whether it happens within the next 5 years, or 10. And I wouldn't count on our worthless Republican Senator Richard Burr doing a damn thing to right our economic ship.

North Carolina deserves better than Republican Senator Richard Burr.

Bush Tax Cut ignorance makes me laugh


This whole debate and discussion about the extension of the Bush Income Tax Cuts make me laugh. Down deep though, I'm really enraged, but have resigned myself to the fact that there's nothing I can do about the inequity I'm about to point out. So, I just try to laugh about it.

First, understand that I make a living trading securities, from a home office, using only my own capital. I fell into this career after a number of years plying a trade as a CPA, and then CFO of a number of different companies. As a numbers jockey early on, I learned my way around the income tax code. And to this day, I'm probably more knowledgeable than most, and certainly most traders, about how the tax code extracts money out of the pockets of Americans.

Time and again, you'll hear a big deal made of the fact that LT Capital gains, and qualified equity dividends are taxed at only 15%. You read it in news article after news article. You hear it out of the mouths of politicians. It's nothing but pure T bullshit. It's lies told by ignorant people who don't have a forking clue how the income tax monster really works.

The vast majority of capital gains and qualified dividends in our country are earned and reported by upper middle class Americans who fall within the $200 K to $1 Million in annual taxable income range. In that range, it's next to impossible to avoid being subject to the AMT tax monster. When you trigger AMT, you wind up paying a flat 26% tax on your earned income, and 25% on your capital gains and dividends. And no amount of planning can help you avoid getting screwed by these higher tax rates. There is no 15% income tax for these unfortunate Americans. It's a full 10% higher because of AMT.

What enrages me though is how the ubber wealthy wind up avoiding these higher AMT income tax rates. Hedge funds, private equity shops, I-Banks, are chalked full of multi-millionaires whose income propels them far above the AMT. These lucky few pay tax at the 15% rate. We're talking about maybe a couple hundred thousand out of 143 million taxpayers.

It's even worse. These fortunate few generally are able to structure their income in offshore partnerships and/or get it classified as "carried interest", which is a protected pet of the Republican party and only gets taxed at 15%. These financial engineers make 10s and 100s of millions, and some even billions, and pay a pittance in income tax compared to upper middle class America. These filthy rich are the protected citizens in our country. These are the taxpayers sheltered by the Republican Party. But if you're slaving away to only earn between $200 K to about $1 million a year, you get screwed royally.

What I should really laugh at though is the gullibility of upper middle class Americans. Most of them are Republicans. And most of them are too stupid to understand how they get screwed relative to the super rich.

Bottom line though, here's the reality of what's going on in America. Despite what you read about the 15% tax rate on capital gains and qualified dividends. Despite the big deal you hear about an AMT "fix". Despite what Republican politicians will tell you. This is the hard, cold truth:
  • Most upper middle class Americans pay tax on their income at around 25%.
  • Extremely wealthy Americans pay tax on their income at only 15%.
And that's why I think Republican Politicians are so full of shit. To the one, they whine and cry about how it is that the super wealthy pay more of the income tax. In raw dollars, yes. But as a percentage of their income - it's not even close.

See why I'm enraged? For every $100 extra he earns, Warren Buffet keeps $10 more in his pocket than me. Does that much of a disparity really make common sense? According to Republicans, yes it does. But it should be an insult to middle class America - if they only understood just how much it is that they're really getting screwed by the Republican Party.

Republicans should stop protecting the super rich. Republicans should put a halt to "carried interest" being taxed at 15%. Republicans should ensure that the super wealthy pay taxes at the same incremental rate as middle class America. But no, Republicans protect the super wealthy in our country and hand them income tax candy with ease.

North Carolina deserves better than Republican Senator Richard Burr.

Wednesday, December 8, 2010

Where's Richard Burr's Tea Party?


Something really odd strikes me about this $900 Billion in additional borrowing our federal government agreed to yesterday. Where's the Tea Party?

The ubber right Tea Party came out in force to vote Republicans into office - Republicans who will stop all the spending, stop all the debt, stop all the irresponsible nonsense going on in Washington DC. And the first big thing we hear out of Washington DC after the election is that we're going to borrow an additional $900 Billion, on top of the $2.4 Trillion we're already slated to borrow over the next two years? And the Tea Party is silent?

The Tea Party is full of hypocrites? Are they simply typical ultra right wing Republicans? They bitch and moan about the deficit and debt, yet they'll vote for income tax cuts all day long and ignore the debt and deficit implications.

The definition of insanity is repeating the same thing over and over, but expecting a different outcome. What we're seeing from this latest $900 Billion action is insanity. We're trying to solve economic problems by taking the same actions we took over and over in the Republican Bush administration - cut taxes, go deeper in debt. How'd that work out last time? We're in dire need for the Tea Party to recognize this insanity and take action.

In the North Carolina Senatorial campaign, Richard Burr called the Tea Party his cavalry. And the Tea Party came out in force to support Richard Burr. Hardly a month after being elected, our Republican Senator is now going to kick the Tea Party in the teeth and vote to layer on an additional $900 Billion in debt. That should be a Tea Party wake up call.

It's time for the Tea Party to put a stop to all the insanity going on in Washington DC. It's time for the Tea Party to shame the Richard Burrs in Washington DC into putting a halt to this $900 Billion madness. Its time for the Tea Party to flood Richard Burr's office with phone calls and angry letters. It's time for the Tea Party to put up, or shut the hell up.

North Carolina deserves better than Republican Senator Richard Burr.

Jury Duty convinces me that Richard Burr is a loser


I had jury duty yesterday, waiting in a room all day long to be called and interviewed. While sitting at a table with 3 other fellow citizens, we talked. I listened. On the one hand, it was one of the most inspirational experiences of my life. On the other, it was eye opening and extremely depressing. It left me enraged with our federal government, which I'll blog about later.

Americans are hurting. I spoke with people below the poverty line, who willingly gave up a day of wages to serve our judicial system. Most of these folks live on the edge, no health insurance, relying on food stamps, family members seeking employment, children signing up to serve in the military and being sent off to war. I heard a long, long string of stories that tugged at my heart and left me fighting a deep sadness for the state of our country. Yet, to the one, these folks didn't complain. They weren't asking for more help. They just wanted opportunities to work, and weren't finding any.

It's going to take me awhile to mentally recover from my experience yesterday. One thing is for certain though. If you're reading this and you get a jury notice in the future, don't make an effort to avoid jury duty. Look forward to this experience. You'll never again find yourself with such a golden opportunity to learn what's really going on out there in America. You're put in a room with a couple hundred strangers. You sit there long enough that reading can't occupy all your time. You'll be forced to introduce yourself to others and make small talk. Forget the reading, skip directly to the small talk. Engage people with questions that will enable you to learn about their lives, their children, their employment situations. It's an enriching experience that every American should cherish.

If I was a betting man, I'd bet that Senator Richard Burr hasn't spent a day of his life serving on jury duty. I'll bet you that man hasn't spent a single day of his life sitting, all day long, with average Americans and engaging them in discussion to learn about their lives, the challenges they face, and what they think about how our federal government runs our country. Our Senator hides under his desk and in his upper class life and remains absolutely clueless as to what's really going on in America. Our Senator is a pathetic loser who does absolutely nothing to improve the lives of average Americans. Nothing.

North Carolina deserves better than Republican Senator Richard Burr.

Tuesday, December 7, 2010

Meet the new boss, same as the old boss

Republican Senator Richard Burr was a player in bringing this economic mess to our doorsteps. His support of a President who recklessly cut taxes, and spent like a drunken sailor, aided our government in racking up $14 Trillion in debt. Burr's blind adherence in laissez-faire capitalism took the referees off the playing field and allowed ignorant people and bankers to rape our economy. When we sent these irresponsible Republicans packing in the last Presidential election, I had high hopes that our nation's economic ship could be set on a better path. We put a new boss in the White House.

Meet the new boss, same as the old boss.

Our new leadership now thinks it's an intelligent move to cut taxes on everyone, thereby passing the majority of the benefits to the wealthiest among us. We're going to borrow an additional $900 Billion from China over the next two years to make this happen. Got a problem? Cut taxes. Rack up debt. Spend like crazy.

Meet the new boss, same as the old boss.

Republican Senator Richard Burr and his merry band of Republican comrades in Washington DC are bent on destroying our country. But Democratic President Barack Obama isn't any better. We live in an insane world, run by irresponsible people.

Where's it going? Our equity markets are celebrating now and will move higher. That's relief from not having to force sell by year-end in order to pay less taxes. But at some point next year, we're going down, hard. And there will be no recovery after the next fall. You'd be foolish not to own gold, silver, food, water, guns, and ammo, in mass quantity.

North Carolina deserves better than Republican Senator Richard Burr.

Friday, December 3, 2010

Republican politicians have idiot splashed all over their faces



I didn't have time to blog about it, but the most interesting thing that happened this week? Our Federal Reserve Board was forced to release the details of the Trillions in dollars in lending they did at the very peak of the recent financial crises. To most Americans, this was a snore. This disclosure went right over their heads. Probably fewer than 1 out of 10,000 Americans are even aware that this information was released. But it was earth shattering.

It turns out that our nation's Federal Reserve Board became the banker to the entire world. It lent money, in massive volume, to banks the world over. When history is written on this era, it will reflect that Ben Bernanke, that humble former South of the Border tourist trap waiter of tables, and now our current Chairman of the Federal Reserve Board, wound up saving the entire world economy. Ben Bernanke will go down in world history as a savior. Our great, great, great, great grandchildren will know this man's name, when all others from our era will be long forgotten.

And to think that not 3 or 4 weeks ago, every fucking Republican in the United States Congress wanted to hang Ben from the highest tree. To the one, Republican politicians in Washington DC have a classic case of egg on their face. Republicans look the idiots they appear. And that includes our state's Republican Senator, Richard Burr.

North Carolina deserves better than Republican Senator Richard Burr.

My Income Tax situation says that Richard Burr can go to hell


I bought TurboTax last night. Mistake. My stress level is now through the roof. I've been plugging in my 2010 tax estimates since 5 am in an effort to get a handle on my tax situation and which securities I need to sell before YE. By noon I was livid. It's coming up ugly. So ugly that I'm simply madder than hell. I had to go outside and take walks a few times to blow off steam.

Our government is FUCKED UP. And I blame my Republican Party. After 8 years of a Republican moron in the White House, and 6 years of total Republican control of the Congress, we were left with an income tax code that is so extremely difficult to understand that even I struggle to comprehend how it impacts me personally. What's the big deal you ask? I passed the CPA exam the first time I sat for it. Only 12% of people taking the exam manage that feat. I also passed the CIA (Certified Internal Auditor) and CMA (Certified Managerial Accountant) exams the first time. Bottom line - I'm a certifiable accounting nut job. Then there's that little MBA I earned from the Harvard Business School. But I can't fucking understand our income tax code without a concerted effort that makes my head hurt. If I can't look at our income tax code and adequately plan, with minimal effort, how in the world does an average American even stand a chance?

But that's not the worst of it. After working my tail off in this frustrating tax planning effort, I'm convinced my Republican Party is determined to absolutely destroy middle class America. My income tax situation? I am caught in AMT hell. Even assuming I push out a myriad of AMT preference items into the next tax year, there is nothing I can do to get out of AMT. I wind up paying both total and incremental federal income taxes at rates higher than Warren Buffet! And I'm not even in the same universe as Mr. Buffett when it comes to income. I'm just a solid, middle class American citizen. Yet I'm taxed higher than an American who has a net worth in excess of $45 Billion. Now how in the living hell can that be justified? Republican politicians hate middle class America. Republican politicians take every waking opportunity to dish out income tax candy to the ubber wealthy, and hang the vast middle of America out to dry. That's how.

Warren Buffett was on CNBC a few weeks ago. Warren looked up the income tax stats for 2008 recently published by the IRS. The top 400 earning Americans paid overall federal income taxes at a rate of 17 - 18%. Warren even looked at his personal income tax situation and admitted on national TV that his tax rate fell in that range. That's his total federal income taxes paid, divided by his total taxable income. His incremental income tax rate though was only 15%. His next dollar of reportable income would have been either a dividend or capital gain, which is only taxed at 15%.

Me? My incremental income tax rate, the rate applied to my very next dollar of income (which would be LT capital gain income), is a whopping 26%. I don't get to take advantage of the 15% capital gains tax rate. I'm not among America's ubber wealthy elite. I get stuck in middle class America AMT hell. And I'm going to be paying federal income taxes at an overall rate, federal income taxes divided by my total taxable income, of 23.6%.

Warren? 18 and 15%. Me? 23.6 and 26%. WTF?

Let's condense this down to a very simple example of the problem. If I was Warren Buffet, for every $100 I earn, I'd keep $5 more in my pocket. And the next $100 I earn, I'd keep $11 more. No damn wonder that Warren has more money than me. He has to give less of it to the IRS !!! Is that not one of the most fucked up situations you could ever image? The second richest man in America pays less tax on his income than us. H-O-L-Y ... S-H-I-T.

Republicans delivered this damn mess to our doorsteps. And Republicans, to the one, stand there today and tell middle class Americans that the rich and wealthy in our country need to have the Bush income tax cuts extended to them as well. When are we going to wake up and call bullshit on the damn theft perpetuated on middle class America by the Republican Party?

This is why I so deplore my Republican Senator Richard Burr. This POS, sorry assed Senator thinks we need to reward Warren Buffett with the same income tax cuts that should be delivered to middle class America. Oh really? Wake the hell up. Middle class Americans pay income taxes at rates substantially higher than the rich and wealthy in our country. We need to be kicking Republicans like Richard Burr in the damn teeth and running them the hell out of Washington DC.

Oh sheesh, it's time for one heck of a long, long walk.

North Carolina deserves better than Republican Senator Richard Burr.

Thursday, December 2, 2010

Does Richard Burr read Bill Gross?

Bill Gross? He's THE bond guru. Bill runs one of the biggest bond houses in the US - PIMCO. Bill's the KING of the bond heap in America. When Bill talks, interest rates react.

Bill's latest monthly read is pretty darn interesting. Bill explains how and why our politicians have failed us. These are the sentences that caught my attention:

"Politicians also get elected by promising to keep taxes low, even for the rich, with the argument that small business owners cannot afford the increase. The real beneficiaries however, are the mega-millionaires of Wall Street and Newport Beach."

Hello, Senator Burr? Do you know of Bill Gross? Do you even bother to read his monthly opinion pieces? He's calling you a LOSER.

And yes, Senator Richard Burr is a Class A Loser. The man is all about income tax cuts for the wealthy among us. And the wealthy are making money hand over fist. Senator Richard Burr is handing them millions in income tax cuts, while they are also banking major coin from our Federal Reserve Board's policies. While we hand money to the rich, our country goes deeper into debt and we get closer to economic hell. And when our economy crashes and burns under its massive debt burden, we'll have our idiot Senator Richard Burr to thank for it.

Richard - get off your lazy butt and read the monthly stuff from the desk of Bill Gross.

North Carolina deserves better than Republican Senator Richard Burr.

David Stockman strikes again

David Stockman is having a field day with the pathetic efforts being made to address our nation's fiscal crises. I knew back in July that Erskine Bowles would fail us, again. David Stockman is simply confirming Erskine's failure. Erskine whines that he'll be attacked for going too far. No. Erskine failed miserably by not going far enough in cutting costs, and not going far enough in raising revenues. Erskine is a loser, Class A.

Where's Richard Burr on this critical issue of addressing our nation's fiscal problems? As usual, he's nowhere to be found. Fresh off the campaign trail where he bitched and moaned about efforts to trim Medicare spending by only $500 Billion over 10 years, Richard is now busy helping chemical companies put toxic chemicals in baby bottles and sippy cups. He doesn't have time to think about the $6 Trillion in additional debt over the next 5 years that we'll have to pile on top of our existing $14 Trillion in outstanding obligations. Glad to know our US Senator is focused on the important stuff. Richard "Sippy Cup" Burr is getting the people's business done - helping chemical companies poison infants.

North Carolina deserves better than Republican Senator Richard Burr.

Tuesday, November 30, 2010

We the Sheople


These days I constantly shake my head at just how naive the American people are. The Tea Party is full of ignorant nut jobs. Republicans are the party of a very few wealthy who have sucked in a vast number of highly religious, anti-abortion, gun loving, financially bankrupt Americans. A few wealthy Republicans, pulling the party strings, engineer a policy of lining their own pockets at the expense of our entire nation. People of vast wealth are exploiting naive people of faith. Wall Street and Corporate Executives continue to reap sky high financial rewards, while a vast number of Americans are helplessly unemployed. Our economy almost crashed and burned, but not a sole got punished. And on, and on, and on.

These inequities continue because the vast majority of Americans just sit there and take it. They're ignorant. They don't think. They don't look around and make an effort to understand what's really going on in our country. They don't protest. They don't take to the streets. They don't rise up and raise hell. They just sit there. They take it. They do nothing.

Financial traders have a term for these Americans. They are a cross between sheep and people. Sheople. Americans are largely Sheople.

I saw a classic case of the American Sheople unfold this weekend. I was out shopping the Black Friday specials. I stood in line with over 100 sheople to buy an iTouch for my daughter, at a great price. I was about number 20 in line. Time and again, the store employees announced that there were only 35 iTouches to be sold. There were easily 100 people in line. They stood there, ignorant people who couldn't figure out that with only 35 units for sale, there was no chance that persons 36 through 100 would be able to buy anything. They waited in line for almost an hour anyway. Sheople.

We are a nation of Sheople. It's no wonder we find ourselves in such a massive economic mess. We vote for idiots to represent us in Washington DC. We allow the very wealthy to take advantage of our nation's Treasury at the expense of our children's financial well being. We sit around and do nothing about all the corporate theft that goes on around us. We just sit back and take whatever is dished out to us.

When I read this article today about Larry Silverstein getting another $200 Million in stimulus money on top of $1.2 Billion in low-cost government financing to rebuild his world trade center towers, all I could think about was - Sheople. This is the very same man who tried to present a legal case to collect twice from his property insurer for the entire value of the world trade center simply because two separate planes caused the damage. This is a billionaire who has become vastly more wealthy as a result of 3,000 lives getting snuffed out by terrorists. This is a man who gets handed our money with ease. He had no downside risk in his property ownership, only a financial windfall paid to him by the American Sheople Taxpayers.

Next time your house burns down, see if the American Sheople come to your rescue.

We are Sheople. We get what we deserve. We get screwed by the wealthy, constantly.

The top 2% wealthiest Americans are about to pull the wool over the eyes of the American Sheople, again. These wealthy will be aided by our US Senator Richard Burr. They will get tax cuts, although our nation is $14 Trillion in debt. We are the sheople. We vote for idiots like Richard Burr. And we allow the wealthy to reward themselves at the expense of our entire nation's Treasury. We are the sheople. We get what we deserve.

North Carolina deserves better than Republican Senator Richard Burr.

Tuesday, November 23, 2010

Finally, I have a home

Finally. I finally know where I belong.

No Labels. That's my party. Its a newly formed party of Centrists. We'll pull from both Republicans and Democrats. I'll belong to the party of Bloomberg terminals and Panera bread. Our party's coming out wing ding is upcoming on Dec. 13th.

And Senator Richard Burr's days are numbered.

North Carolina deserves better than Republican Senator Richard Burr.

Senator Richard Burr and Republicans have a boot on the neck of the middle class


The rich grow richer, the middle class have a boot on their neck:
A large income and/or social disparity is a foundational cornerstone of revolution. And even in the face of that issue, our state's Republican Senator wants to continue to hand out tax cuts to the wealthy, while running massive budget deficits. Ireland, here we come. And revolution can't be far behind. Invest accordingly.

North Carolina deserves better than Republican Senator Richard Burr.

Monday, November 22, 2010

Republicans have redefined America

The securities trading industry is being raided today. Some major hedge funds are swarming with FBI agents. Yes, there are a number of hedge fund managers and traders who are crooks. Probably, most of them. But there are also quite a few with a sense of humor. I run across many each and every day while reading and researching. The funniest one I read today? ....

One trader was moaning about how Republicans so destroyed our economy as to totally redefine our nation ....

"America has become a giant bank, with its own military".

Sunday, November 21, 2010

Financial disclosure perplexity

I took a look at Richard Burr's financial disclosures again this evening. It's very perplexing. I've written before about his past disclosures of purchases and sales of stock in many of the financial companies that got our country in so much trouble. When I last reviewed those disclosures, Senator Burr had reported buying and selling companies like Lehman & Bear Stearns. And his disclosures had reflected our Senator as a very active stock trader in 2008. One of the most troubling transactions showed our Senator selling his Bear Stearns stock in 2008 the very day after the government discovered that Bear was going to declare bankruptcy. But when I looked again this evening, those transaction disclosures no longer exist. They've been wiped clean. There's no evidence now of him even owning these securities. What the heck is going on here?

I'm not sure what is going on with Senator Burr's financial disclosures. But if our Senator did own stock in Lehman and Bear Stearns, and he's now covering it up, we need to know. If it was a website error, that's an understandable issue. I just wish I knew why he once was an active trader and investor, and now, there's no indication of much of anything being bought and sold. And transactions that had been reflected in the past are now wiped clean. It's simply perplexing.

Right Wing Republicans are just plain wrong on tax cuts


I'm absolutely bewildered with the debate on extending income tax cuts for the richest Americans. We just can't seem to apply common sense. There is absolutely no way we can close our budget gaps with spending cuts alone. And if we can't raise the income tax rates on the richest among us, who pay taxes at incremental rates significantly below the middle class, then there is no hope that we'll ever solve our nation's financial problems. If tax increases on the rich don't come to pass, then you need to bet the farm that our nation's financial markets are going to crash and burn. It's only a matter of when. And it won't take long to happen either. It'll be at some point within the next 5 years or so.

The most bewildering aspect of this whole issue is just how silly the arguments are from the Republican side. Let's take one good example staring us right in the face. Ireland. Just a few years ago, Ireland was one of the world's hottest economies. They cut their tax rates to the bone. The Right Wing voices, like Larry Kudlow, were shouting at the top of their lungs that the US needed to follow Ireland's lead and apply supply side economics through continued income tax cuts. In an article in 2007, Larry said this "We [United States] better do something. Indeed, a tax-cut war is spreading across Europe, where lower levies on corporate profits in Spain, Germany, France, and the U.K. are aimed at better competing with the U.S. in the global race for capital. The successful supply-side experiment in Ireland has become a Euro-wide model."

Well, we now see where Ireland's drastic income tax cuts took them. That country is now bankrupt. The EU and IMF are having to come in with massive aide to save Ireland. With this crystal clear example staring us in the face, the Right Wing continues to irresponsibly call for further income tax cuts in our country. Why? Our Republican party simply can't learn. It can't apply common sense.

You just can't keep on cutting income taxes, run massive deficits, and expect for the economy to NOT hit the wall at some point. And if the Right Wing nut jobs get their way in our nation, we're going to follow Ireland down the toilet sooner rather than later.

You won't hear our Senator Richard Burr apply any common sense on this issue. Senator Burr is a blind follower of the right wing agenda. He'll vote for income tax cuts on the wealthy. And he'll be directly responsible when our nation turns into another Ireland.

North Carolina deserves better than Republican Senator Richard Burr.

Friday, November 19, 2010

Mental Illness

Interesting headline I ran across today:

Nearly 1 in 5 Americans had mental illness in 2009.

I suspect that statistic is 5 out 5 in Washington DC, eh? It's probably 6 out of 5 when just counting Republicans. :--)

Republicans are out to rape America, again

I just love my Republican Party. Here's why:
  • Spencer Bachus wants to keep our banks in the business of gambling. Spencer wants to keep those dangerous CDS and derivative securities in a dark room where they can blow up the world economy. Get ready for your savings to go up in smoke. 11/19/10
  • Darrell Issa's new goal - unless it bleeds Republican red, let's chew up time investigating every damn thing in the past. Screw the need to focus on the future. My prediction - let's see how long Americans tolerate Darrell's clown act. 11/13/10
  • Mitch McConnell is too busy to meet with President Obama on the tax cut extension. What an arrogant ass. Yeah Mitch, it's much better to leave our nation's financial markets in a state of uncertainty over tax cut extensions. 11/17/10
  • Eric Cantor set to allow High Frequency Trading shops to continue to rape your pension plan, 401K, IRA, Roth, 529 and Coverdale. Nice, kick American investors in the teeth Eric. 11/10/10
  • Mitch McConnell, the KKK like Grand Dragon of the US Senate, ripped our President similar to how an old southern plantation owner would have talked about his slaves. The very next day, Mitch talks up working closely with our President. Huh? Its enough to think the man is prone to frequent bouts of PMS. 11/5/10
Don't you just love all the common sense being applied by our Republican politicians?

Republican politicians are 'effing INSANE


I woke up this morning at 4 am and tuned into the business news to hear what was going on in European trading. Ben Bernanke is in Germany, giving an important speech about the need to balance the world economy. Ben came on the tube at 5:30 am. His performance was stellar. The man is brilliant. In a crystal clear manner, Ben explained to the world why it was so very important for emerging market countries like China to stop playing games with their currency. All those idiotic Republican politicians who had been attacking Ben should be crawling under their desks in shame. Unfortunately, that's not the case.

What are the political idiots of our Republican party doing instead? They're in Washington DC right now cooking up ways to KEEP our banks in the business of gambling. They're in Washington DC right now finding ways to block the need to make all those dangerous CDS and other derivative securities from trading on organized exchanges.

Those 'effing derivatives nearly ruined our world economy. Those things came close to having us live in caves and crap in the woods. And our Republican party wants to bring back the gambling and allow those dangerous financial instruments to continue to trade in dark rooms? My Republican party is full of clueless morons.

Republicans politicians in Washington DC are simply INSANE.

Richard Burr? He's a follower. He'll do whatever the party wants him to do. We're screwed.

North Carolina deserves better than Republican Senator Richard Burr.

Thursday, November 18, 2010

WSJ Headline: Bernanke Takes Aim at China

The Wall Street Journal headline this evening: Bernanke takes aim at China.

An excerpt: "The Fed chairman's message, though scholarly in tone, was unusually blunt in laying blame for inflationary pressures in emerging markets and for tensions over currencies on countries like China."

Go get 'em Ben. But unfortunately, you won't be getting any help from our clueless politicians in Washington DC. Clueless clowns like our state's dolt of a Senator, Richard Burr. Those morons couldn't pass Econ 101 if their lives depended on it.

Those 'effing Republican politicians who recently attacked Ben will wind up with egg all over their faces. Ben Bernanke is going to force a world wide economic realignment that will set the world economy back on a path to prosperity. Watch and learn. In the future, we'll look back at this point in time and thank the lord that she sent us a former South of the Border waiter to act as our nation's Chief China knee-capper.

North Carolina deserves better than Republican Senator Richard Burr.

Republicans misread the "Fed problem"

Here's an interesting article. Republican political leaders are fighting the Fed tooth and nail. Why? According to the article, they are doing this solely because "They’re sensing that the Fed and Bernanke are not very popular right now."

Wow. What a classic case of misreading the problem and doing something really stupid as a result. Our Republican leaders are in dire need of a mental reset on this issue.

Are people really mad at the Fed? Or, are they mad as hell at what the Fed and our Federal Government are doing in order to rescue our nation's economy? I think it's the latter. And instead of fighting the Fed, Republicans should address the angst.

Here's why Americans are really pissed off:
  • We had to use massive tax dollars to save Wall Street. But name me a big group of Wall Street Bankers who got punished and now sit in jail?
  • We had to use massive tax dollars to rescue the housing market. But tell me why neighbors who overpaid for their house are getting mortgage reductions, are able to walk away without penalty, or just sit in their homes without paying anything, while the responsible among us aren't getting a fair shake.
  • Most Americans haven't seen their incomes rise in over a decade. But Wall Street and corporate executives continue to collect egregious pay and bonuses.
Instead of attacking the Fed, why don't our Republican leaders:
  • Bring the hammer down on the SEC. Force them to bring a massive number of criminal actions against the CEOs and Board of Directors who led the companies that brought our economy to its knees.
  • Penalize the people who walk away from mortgages and stop using our tax dollars to reward their greed and incompetence.
  • Focus on increasing the incomes of the middle class and pressure down the massive salaries on Wall Street and in the executive suites of Corporate America.
If Republicans would go after three issues, they'd wind up being allies with the Fed. The American people would be appeased. And our Fed would be more easily able to take the necessary actions that will allow our economy to recover.

But our state's US Senator, Richard Burr, he's a clueless dolt. The man hasn't spent a second thinking through why Americans are really pissed off. He's just blindly follows Mitch McConnell's lead. And right now, the blind are leading the blind in our Republican Party.

North Carolina deserves better than Republican Senator Richard Burr.

Republicans stand with China, against Ben


China has a Big Mac problem. A Big Mac hamburger only costs $2.17 in China. But it costs $3.71 in the United States. If you don't understand Economics, you don't have a clue why this single point is probably THE most critical issue that needs attention in our world economy.

Economists like to use the Big Mac index as a quick look at the relative value of currencies across the world. In theory, if currency exchange rates were freely trading, then the value of a Big Mac, expressed in US Dollars, would be the same in every country in the world. If they're not the same, then one currency is under or over valued relative to another. China's currency is vastly undervalued relative to the US Dollar. There are a myriad, and a very complex set of reasons why currencies would differ in value. But, in China's case, it's clearly evident. China manipulates their currency.

China's blatant and continual currency manipulation is causing massive problems across the world. It enables China's products to be cheaper relative to every other product in the world. China winds up exporting up the wazoo. As a country, they make huge export profits. To recycle these profits and keep their currency cheap, it is necessary for them to use the profits and buy foreign assets. In the case of the United States, China buys our nation's debt (Treasury Securities) in order to keep this scheme going strong. If this cycle isn't broken soon, then China will wind up owning just about every asset in the world, and everyone else will be poor.

Ask Senator Burr if he's aware of China's Big Mac problem. I suspect you'll be met with a blank stare. Our Senator is clueless when it comes to basic economics. Clueless people do stupid things. And right now, the damn dumbest thing coming out of Washington DC is that Republicans are standing with China in fighting Ben Bernanke, our Federal Reserve Chairman. Ben is the only American who is trying to fight China and solve the China Big Mac problem. But, if the ignorant Republican politicians in Washington DC had their way, China would own the world.

North Carolina deserves better than Republican Senator Richard Burr.

Wednesday, November 17, 2010

When's Senator Richard Burr going to report his 2009 financials?

I looked around but didn't see Richard Burr's financial disclosures for 2009. When's the man going to report? I suspected he'd be too chicken to report before the election. Poor Richard is clueless when in comes to finances. Bet you our Senator lost his tail in the stock market in 2009. It should be a hoot to find out.

Wall Street knows Republicans are full of shit


I tripped across an interesting read from a bond market trader:

"If we follow the Greek tragedy's storyline: a) Market realizes public finance are a complete joke b) a fiscal resolution is attempted c) the fiscal solution fails as the slowing economy choked by austerity lowers revenues and offsets benefits of entitlement cuts. Note that b) and c) should occur in several iterations until entitlement cuts are no longer tolerated and the country is forced to resort to default. We haven't even tried one yet, so pace yourself, and remember that higher yields in Fixed Income creates risk averse sell-offs in other asset classes which in turn create demand for US bonds as money seeks a safe heaven. That status of safe heaven is not just yet abandoned, even though it will be eventually."

The bottom line of his point - Republicans are full of shit. They will embark on a path of fiscal austerity. Sure, they'll reduce government expenditures. But the resulting revenue loss (more people out of work, higher social services costs, less income tax revenue collected, et al) will overcome the savings from the austerity. The net result will be a sinking economy. There will be an iterative effect that takes place over a long period. We cut, our economy sinks, scared investors move their money into Treasuries, repeat. At some point in the iteration cycle of cuts and sinking economy, investors will lose faith and flee American debt. Our economy will crash and burn.

This trader is in essence suggesting you have to be nimble. Stay with your investments initially into this process, but be prepared to get out. Then, bet big against America once its evident that investors are losing faith in the Republican austerity bullshit that will wind up sinking us into a hell hole.

Anyone else out there but me think that Wall Street bond traders wanted Republicans to take control for nefarious reasons? There is significantly more money to be made betting on the huge crash and burn, than in riding out the moribund fixed income markets that prosperity delivers.

Wall Street bond traders want the idiot Republicans calling budget shots so the traders can make a killing betting on failure. Welcome to America.

Warren Buffett speaks. Republicans close their ears.

Warren Buffett is being interviewed on CNBC right now about an op-ed piece he wrote in the NY Times today. The really interesting part of this conversation is what he's pointing out about our income tax structure. The problem we have in our country right now is that we're spending about 24-25% of our GDP in government expenditures. But, we're only collecting about 17 - 18% in taxes. We can't afford this gap.

Warren is pointing out that the IRS released tax data recently for 2008. He looked at the income reported by the top 400 income earners in our country. They averaged over $358 Million in income each. Counting both payroll and federal income taxes, these 400 highly paid people paid income taxes at a rate of about 16 - 17%. Mr. Buffett says he looked at his own tax situation for 2008 as well. He has no fancy tax shelters, and his total payroll and income tax bill came to about 16 - 17% too. But when he did this same math on every other person in his office, the average was over 30%. Warren makes the case that the very wealthy in our country need to be paying more taxes.

Why in the living hell can't we get a clue in our country? To the one, Republicans insist that the Bush tax cuts be extended for everyone. The rich wind up paying 16 - 17%. Middle class America pays over 30% (when payroll taxes get rolled in). How in the world is this fair? How in the world does this make common sense?

Yet, our Republican politicians like Richard Burr will stand there and insist that everyone gets an extension to their current income tax rates.

And we wonder why it is that our nation's finances are in a shambles? We're screwed because we put Republicans in office. Republicans who lack common sense when it comes to applying the tax code to the very wealthy among us. Republicans like Richard Burr.

North Carolina deserves better than Republican Senator Richard Burr.

Oh boy, more Republican CDS bullcrap coming down the pike

Here we go again. The Republican, Wall Street CDS casino is about to ramp back up and destroy the world economy. This time it won't be CDS bets on US sub-prime housing debt that sends shock waves reverberating through the world markets. It's going to be bets on Irish, Spanish, and Greek bank debt.

What am I talking about? Back in the late 90s, Republican Phil Gramm created a monster mechanism that allows anyone to place a bet on any debt instrument. Worse, anyone can underwrite that bet. There's no capital requirement. There are few regulations. There is no oversight. There is no exchange on which these CDS bets are traded. No one in the world has a clue who owns and who underwrote these bets. You could even wind up with unlimited bets against a small amount of debt. The debt going bad might be an insignificant financial event, but the bets going bad could cause financial armageddon. It's one hell of a forked up situation, brought to us by Republicans who believe in free markets. Republicans like North Carolina Senator Richard Burr.

These CDS bets brought us a $180 Billion taxpayer funded rescue of AIG. The morons at AIG went around the world underwriting bets on sub-prime housing loans. Although only $2 Trillion of these loans were outstanding, companies like AIG underwrote $25+ Trillion in bets against this $2 Trillion. AIG didn't have to put up any capital. They just went out there and underwrote the bets and collected the premiums. And when those bets blew up, AIG lacked the money to pay off. So, in walked the US Taxpayer. Yep, it's one forked up situation.

The worst part of this mess? Since there's no formal exchange and no formal capital requirements, not a single person in our world has a clue who is at risk on either side of these bets. So, when something being bet on has a likelihood of coming to fruition for payoff, there's no telling who is at risk of going out of business. In other words, your mother may have underwritten $6 Trillion in bets against Greek Bank Debt. She may have collected $500 million in premiums. That would explain her spending spree recently, eh? But when that Greek Bank debt goes bad, she'll be on the hook for $6 Trillion. You knew about that, right?

Here's the problem. Ireland is in financial trouble. The debt of Irish banks and the country of Ireland is about to go bad if someone doesn't step in and help. The European Banks are on the hook for $650 Billion in Irish debt. But no one has a friggin clue how much of this debt they have protected from loss by buying CDS "bets" against the Irish debt. And even worse, we don't have a clue who underwrote the CDS "bets" that the European Banks own. You might call a plumber tomorrow to fix your toilet, but find out he's out of business because he sold CDS protection to a European Bank, and now he's bankrupt.

This CRAP has to stop. The theory behind this financial instrument was that it would spread risk around the world. Instead, it spreads massive uncertainty when its evident that these bets will pay off in size. No one has a clue who winds up taking a financial hit. Every investor in every company even remotely connected to these bets winds up running for an exit. The cascading selling causes financial panic around the world. Our pension funds, IRAs, 401 Ks, 529s, Coverdales, and just plain savings wind up taking a hit. Confidence in our financial markets erodes. Confidence in our world economy erodes. Consumers pull in their horns. Recessions persist.

Republicans created this damn, POS financial instrument. It almost brought down the world economy when it got AIG in trouble, more than 3 years ago. And here we sit today and we're no closer to getting a resolution to this POS problem. Just WTF are our elected representatives doing in Washington DC about this crap?
  • Stop the casino.
  • Get rid of the betting parlor.
  • Put a complete halt to CDS instruments.
Or ....
  • Absolutely require that they ALL be traded on an exchange, and be backed by significant, tangible capital.
  • Require that all public companies owning or selling these instruments make full and complete disclosure of their CDS risks.
This issue is one of the most important among all that needs to be addressed. But no one in Washington is talking about it. Little is being done. And what little action is being taken is progressing at a snail's pace. But what should we expect? We elected a lawnmower salesman and sent him to represent us in Washington DC. Republican Senator Richard Burr is out of his league when it comes to critical issues like this CDS problem. The man is clueless. And he's getting nothing done.

When your savings go up in smoke, and you're reading about chaos in the world financial markets brought to us by CDS on Irish, Greek, and Spanish bank debt .... well, you have only yourself to blame. You sent a landscaper to Washington to protect us. He doesn't even know how to use a shovel.

North Carolina deserves better than Republican Senator Richard Burr.

Tuesday, November 16, 2010

QE2 Jackass Congressmen

The business shows this evening are full of Congressional idiots taking turns blaming Ben Bernanke and QE2 for what's ailing our economy. Never in my life have I witnessed a string of jackasses like I'm seeing this evening. I wonder, will these idiots come back on Investment TEE-VEE and apologize for being wrong when it turns out that our economy recovers, jobs are created, and inflation is at a reasonable level? That's the problem with jackass Congressmen. They never admit it when they're wrong.

That is one good thing I can say about our Senator Richard Burr though. He never appears on TV. He's too busy sleeping in his office and getting nothing accomplished. At least he's not making a jackass out of himself like so many other US Senators. Hey, don't say I never gave our Senator a compliment.

North Carolina deserves better than Republican Senator Richard Burr.

Don't let Washington get in the way of educational choice ... WTF?

I'm tired of all these bullshit commercials that private educational institutions are running on TV right now, asking us to contact Congress and direct them to stay out of choice in private education. These asswipes put the hard sell on naive people to borrow massive amounts of money to attend their institutions. For the very few who eventually graduate, they mostly find their degrees worth next to nothing. A large number of these graduates never obtain jobs that enable them to pay back their student loans. Our federal government guarantees most of this debt. It goes bad at an alarming rate. The American taxpayer gets stuck with the bill. And worse, the executives running these private institutions are sucking out billions in compensation.

My god, who's the fool here? Not me. These private education institutions can kiss my ass. If my Congressional representatives don't crack down HARD on the bullshit that goes on here, I'm going on a war path. We're already paying billions for sub-prime housing debt gone bad. Now we want to get stuck with billions more in bad education loans? I don't think so.

Watch and learn. Our idiot Senator Richard Burr will vote to support keeping government out of choice in private education. But our idiot Senator will continue to guarantee the debt that winds up paying 90% of the money going into the pockets of these POS, fraudulent degree printing shops. And the taxpayer will remain on the hook for a monster number of these loans that wind up going bad.

Stay out of choice in education? Well, OK. Stay out of guaranteeing loans too. But I don't expect our US Senator to apply this level of common sense. He's an idiot.

North Carolina deserves better than Republican Senator Richard Burr.

World economy gone awry

We have some pretty big problems happening right now in the world economy. There are 3 primary engines, and all three are sputtering. This post is just about one economic engine - China. More on the other two, later.

The primary sputtering engine is China. Their problem is inflation. China just reported annual inflation running at over 4%, and climbing rapidly. The worse part of it is food inflation. There are hundreds of millions of people in China who live in poverty. These poor folks simply can't afford climbing prices, especially for food. The fear is that inflation will lead to social unrest, and a massive mess will ensue. Can you imagine hundreds of millions of people marching on China's capital to overthrow their government? The leaders in China live with this potential nightmare. Its in the forefront of their mind, always.

If China was acting in the best interest of the entire world economy, they would focus on their inflation by adjusting the exchange rate of the Yuan. If they allowed the Yuan to strengthen, that would choke off some export activity, allow for more slack in their economy, and relieve the pressures causing the rising prices. That tactic would help the rest of the world too. All the rest of us would stop choking on cheap Chinese products. And we'd be able to sell more goods into China. But, the Chinese leaders are stubborn. Instead, they are raising their interest rates. Normally, that would enable their currency to also strengthen. But, since capital flows into their country are restrictive, their currency will likely not budge. Not much good will come of their efforts.

It gets even worse. Not only are the Chinese not operating in a manner that would enlarge the economic pie for the entire world, they are trying to blame Ben Bernanke and our Federal Reserve Board's quantitative easing actions for causing their problems. Well, duh. Ben is doing what needs to be done. America needs to force China to act in the best interests of the entire world. We need to force China to allow their Yuan to strengthen. And Ben knows that forcing inflation into the Chinese economy will eventually break their backs and force action on the Yuan. He won't admit it. But he knows it. And he knows his actions may well lead to actions on the Yuan. No one else has been successful in jawboning China into taking action on the Yuan. And Ben is our final and best hope on this front.

So, what does our Congress think about all this? Those idiots, including our US Senator Richard Burr, stand with the Chinese. They are all attacking Ben. They are all standing around and blaming Ben for everything going awry right now. Give it time. Ben will be right. Congress will be choking on crow. The bottom line though, our US Senator is an idiot. Our Congress is full of idiots. Elect an idiot, and you get an idiotic economy. But Ben is going to rescue us from the idiots.

North Carolina deserves better than Republican Senator Richard Burr.

Congress to the rescue

Today we're seeing Congressmen tripping all over each other. They're coming out of the woodwork to introduce legislation to end the Fed's dual mandate of keeping inflation in check and also maximizing employment. Congress doesn't like the maximizing employment part of that mandate. So my dumb question is this ... if we don't want the Fed in charge of trying to steer our economy so that Americans have jobs, who's going to be responsible for maximizing employment? Congress?

Watch out. Here comes a 20% unemployment rate.

The Ben Bernank

Can't say I agree with it, but this is the funniest video I've ever seen. You need an understanding of finance, trading and economics to get the humor in this clip.

Saturday, November 13, 2010

F*ck President Barack Obama. The man is worthless.

I am a Republican. But I supported Barack Obama in the last election. And also supported him since he was elected, until yesterday.

F*ck President Obama. He's a failure. And it irritates the crap out of me.

It's the financial issues that have me so irritated at our President. Wall Street Bankers almost brought down our entire economy. But did any of them get punished? Did any of them have to pay back the egregious compensation they collected while wrecking their companies and almost destroying our economy? Hell no. And it's President Obama's fault. He sits on his ass and does nothing about bringing to justice those who screwed our nation.

And how are we going about repairing the damage done to our economy? We're executing on a strategy of holding down interest rates, egregiously enriching the very bankers who delivered this mess to our doorsteps. They borrow from the Fed at next to nothing and invest all day long in risk free US Treasury securities, collecting big profits and massive bonuses. All the while, these low interest rates are punishing the responsible among us who try to save. We're paid next to nothing on our savings, while bankers grow rich. And when we need to borrow, we have to turn to the very Bankers who screwed us. They lend to us at outrageous rates relative to the rates our tax payer supported institutions lend money to them. It's just insane. The irresponsible get rewarded. Hard working, responsible Americans continue to have a boot on their neck.

And now, we've got quantitative easing headed our way. Paper assets and commodities are being bid up across the board. The rich grow richer, while middle class America, with their wealth primarily parked in depreciating homes, suffer mightily.

And the gap between rich and poor continues to grow by the day. Shareholders still don't have the power to put a stop to egregious corporate pay. The rich in our country continue to pay 15% income taxes on their vast investment wealth while the working stiff, making significantly less, pay taxes at significantly higher rates. Stock options act as a continual erosion of our pension wealth. High frequency traders pick away too, with equal consistency. And the SEC continues to sit on its lazy asses and accomplish absolutely nothing to put a halt to all this theft perpetrated on middle class America. The game is rigged. And our President has not lifted a finger to address one damn thing to level the playing field. And now, we're learning our weak President intends to cave and allow tax cuts to also be extended to the wealthiest among us. We're simply saddled with a loser for a President.

So, why did it take until yesterday to get me irritated enough to turn my back on this loser? Our President is weak. He went to the G-20 meeting and had his head handed to him. He stood there and allowed the world to laugh in his face. His pathetic attempts at getting China to stop pegging the Yuan to the dollar were the straws that broke the camel's back. I am just damn tired of waiting for our President to grow a backbone and get aggressive about solving problems and punishing those who created this mess in the first place. Enough. I've simply had enough.

I'm with Charles Ferguson, President Barack Obama is nothing more than a Republican in sheep's clothes. F*ck him. I can't wait until the next election. I'm looking forward to participating in the effort to kick his sorry tail out of the White House.

My attitude toward Republican Senator Richard Burr has not been altered though. Not a bit. Our Senator delivered this economic mess to our nation. He's a worthless, POS, mental midget.

North Carolina deserves better than Republican Senator Richard Burr.

Friday, November 12, 2010

What needs to happen to save the world?

Our world economy is headed into the sewer. It may not look that way to you now. But it will, soon.

Two things need to happen to prevent the pending return to the dark ages:

1. China needs to drop its peg to the dollar and allow its currency to float.
2. The Euro needs to bite the dust.

Both China and Germany are screwing the world economy. Republicans, especially the nut case Tea baggers, may be raising hell about it, but our Federal Reserve Board is taking the best action possible to pressure China and Germany to act in the best interests of the world. There isn't a Republican politician out there who has a clue about what's happening on this front. If Republicans were in control, they'd be ignorantly hastening the coming crash.

Our Senator Richard Burr? He's just trying to catch a couple hours of nap time before his next run to the ATM Machine. Then, before he goes back to sleep, he'll blame Democrats again for cutting $500 Million out of the Medicare program. God knows, we don't want to do anything to balance our budgets, eh Senator Burr? But economic issues that threaten our world? Senator Burr has no time for such burdensome issues.

North Carolina deserves better than Republican Senator Richard Burr.

Republican plan to bankrupt the middle class now well underway

Welcome to the new economy. If you're wealthy, you'll thrive. If you're middle class, you're screwed.

This is the new Republican economy:

Food prices - through the roof
Energy prices - through the roof
Clothing costs - through the roof
Medical costs - through the roof
State and local taxes - through the roof
College tuition - through the roof
Value of paper assets owned by the wealthy - through the roof
Take home pay of the middle class - stuck in the mud

Thank Republicans. In anticipation of the Republican takeover in Congress, our nation's financial traders knew that fiscal policy would go nowhere. The only avenue left to help our economy would be monetary policy as executed by the Federal Reserve Board. The Fed is flooding the markets with liquidity. Traders anticipating that rush of liquidity are pushing up prices everywhere. The winners are the wealthy. They own the assets.

So, if you're middle class and living hand to mouth, or about the only asset you own is your home, well, you can thank the election of Republicans for your financial pain. And if you're middle class and voted Republican, you have nowhere to look but in the mirror. You are to blame. If you want to complain, find the nearest mirror.

North Carolina deserves better than Republican Senator Richard Burr.

One dire outlook on the economic front

If this unfolds, our society will go up in smoke.

If it happens, it will be pinned on President Obama and the Democrats. In reality, it was the Bush Republicans who caused this crap. They cut taxes with reckless abandon, used their "ownership society" theme to push idiots into home ownership, failed to provide adult oversight of the lending industry, waged unfunded wars, and spent money like there was no tomorrow. Republicans are too blame for our economic mess.

The vast majority of America are clueless as to who delivered this pain to our doorstep. It was Republicans. It was Richard Burr. Republican Senator Richard Burr played a huge roll, voting with George 94% of the time. Our mental midget of a US Senator helped create this mess. Richard Burr contributed mightily to our nation's pain.

North Carolina deserves better than Republican Senator Richard Burr.

Thursday, November 11, 2010

Prepare yourself, here comes the violence


Do you see the protests in the UK yesterday? The UK government took an axe to their budget. They are firing a massive number of public employees and hiking fees and taxes across the board. One of the outcomes was an almost tripling in university tuition. It went from something like $5 K a year, all the way up to $14 K. Stunned students got violent.

Prepare yourself. That violence will be commonplace in the United States within the next couple of years. It's one thing to want austerity, walk into the voting booth, and pull the Republican lever. It's another to find out your social security is getting chopped, your medicare capped, your tax bill dramatically hiked. But its coming. And you're going to be shocked at how sever your pocketbook will get hit. You'll get mad. And you'll hit the streets in protest. It will get out of hand. Rocks will fly. Windows will break. Cars will overturn. And we'll be well on our way to another revolution in our country.

Watch. Learn. It's going to happen.

You'll have no one to blame but yourself, and our Republican Senator Richard Burr. The Republican philosophy of nothing but tax cuts, tax cuts, and more tax cuts brought us to this point. And you were dumb enough to drink the kool-aide and egg on our Republican Party in acting irresponsibly.

North Carolina deserves better than Republican Senator Richard Burr.