Month: February 2009

And You Had Thought You Had Heard It All

Think again!  I recall many years ago about an optometrists that had women take off their shirts while having an eye examine……and then there was the doctor that no matter what you symptoms were wanted your to disrobe….but really this is really rich stuff…..

The attorney for a Woodland dentist told jurors that his client massaged women’s chests as part of a medical treatment.

Defense attorney Michael Rothschild told the six-man, six-woman Yolo County jury that Mark Anderson was treating his female clients for temporomandibular disorder, or TMD. The attorney says the condition affects the muscles of the upper body.

Anderson faces 19 felony charges for skin-to-skin contact and one misdemeanor for touching a patient’s breasts over her clothing. The incidents occurred between February 2005 and his arrest in August 2007 and brought complaints from 14 women.

Ever notice that we seldom hear about a gynecologist doing stuff like this?  I wonder why?  (that is a rhetorical question, btw)

The Internet made him do it!

Geithner’s Bank “Stress Test”

On Feb. 25 regulators laid out details on how they will run the “stress tests” that Treasury Secretary Timothy F. Geithner has promised on the biggest banks. Now those tests, designed to judge whether the banks have the capital to keep lending and absorb losses in a severe recession, face an exam of their own.

Much of the credibility of Geithner’s struggling bank bailout program hinges on what Treasury does with the test results. Many investors believe the banking system is drastically undercapitalized. While no one expects regulators to declare the money center banks insolvent, they are watching to see whether Geithner will allow the weakest of the examined banks to fail. “If everyone passes the test, it won’t provide [investors] any comfort,” says Andy Laperriere, a Washington-based policy analyst with the research firm International Strategy & Investment Group.

Regulators say they plan on more rigorous, more forward-looking versions of the computer simulations that the banks themselves have conducted to project how their capital would hold up through a variety of worst-case scenarios. While the banks’ own tests often focused narrowly on issues such as interest rates, inspectors will consider two other prospects. First, they’ll see what would happen to loan defaults and bank revenues if GDP falls by 2% this year and grows 2.1% in 2010, which is the consensus forecast. Then they’ll look at what would happen should things get dire: if GDP falls 3.3% in 2009, say, and remains flat after that. The feds are projecting home prices will slide 14% this year, and will look at the impact of unemployment at 8% or even 10%. Regulators may also be more skeptical than the banks about the impact of a prolonged recession on the values of mortgage-backed securities, derivatives, and other assets.

But it looks like flunking out is not in the cards. Speaking before Congress on Feb. 24, Fed Chairman Ben Bernanke said “the outcome of the stress test is not going to be pass or fail.” A senior Administration official adds, “There is no explicit cap on the amount of capital we will provide.” Investors are worried. “It’s like a test you get to do again if you didn’t do well,” says Donald J. Rismiller, chief economist of institutional broker Strategas Research Partners. Adds Petrou of Federal Financial Analytics: “The fear is that the tests will simply set the price tag for how much more taxpayers have to put in.”

If you are a regular reader then you know what I am going to say on this point……The Treasury is trying to create liquidity……but what good will that do when there is no demand?

Do you realize that with all the cash that we are pumping into banks……if it had been given to Main Street and mortgages had been paid off……This whole recession thing would not been hurting as badly as it is know…..Washington is still chasing the Wall Street biggies for the hand game…..Main Street keeps getting deeper and deeper into a hole of the government’s making.

My Response To The GOP Response

First of all, I want to say that Obama gave a masterful speech before the joint seesions of the US Congress.  He seemed to be truthful, yet hopeful, something all analysts have said he needs to do.  Well Irene, they got their wish.  All in all a helluva speech.

The GOP chose Gov Bobby Jindal of Louisiana to give the “rebuttal”, if you will.  What can I say?

He began his speech with a story, but he told it like he was talking to 6 year olds.  That immediately made me critical.  Then he went on to giving the talking points that all Repubs are using about the stim plan…you know…it spends it does stimulate…or a speed rail linking Disneyland with Las Vegas….the typical equine fecal matter….you know…LIES.  Then he went on to tell of the success of the Katrina programs…..that got a couple of holy craps!  And as predictable Gov. Jindal told us all about the Gop’s plan of tax cuts which would put more money in hands of the American people.

All in all, Jindal was a dud!  If this is the face of the new GOP then they are in sad shape.  But then after some thought, his infantile story telling would appeal to those of the mentality that thinks the conservative ways are the only ways.

The GOP is gonna have to do better, because if their huge gamble does not pay off then they are totally boned.

Stating The Obvious Does Not Help

We need answers, not obvious diatribes from those who are running our economny.

Federal Reserve Chairman Ben Bernanke told Congress Tuesday the economy is suffering through a “severe contraction” and pledged to use all available tools to lift the country out of the recession that already has cost millions of Americans their jobs.

In testimony prepared for the Senate Banking Committee, Bernanke said the economy is likely to keep shrinking in the first six months of this year. Housing, credit and financial crises — the worst since the 1930s — plunged the economy into its worst downhill slide in a quarter-century at the end of last year.

Bernanke hoped that the current recession, now in its second year, will end this year.

But he said there were significant risks to that forecast and any economic turnaround would hinge on the success of the Fed and the Obama administration in getting credit and financial markets to operate more normally again.

Another concern is that the Fed and other Washington policymakers won’t be able to break a vicious cycle where disappearing jobs, tanking home values and shrinking nest eggs are forcing consumers to cut back sharply, worsening the economy’s tailspin. In turn, battered companies lay off more people and cut back in other ways.

In addition, Treasury Secretary Timothy Geithner has revamped a controversial $700 billion bank bailout program to include steps to partner with the private sector to buy rotten assets held by banks as well as expand government ownership stakes in them — all with the hopes of freeing up lending. The Obama administration also will spend $75 billion to stem home foreclosures.

Radical actions taken by the government since last fall when the financial crisis intensified have relieved some credit and financial strains, Bernanke said.

Although Bernanke didn’t mention any such financial institutions by name, Citigroup Inc. — the industry’s troubled titan — is apparently in line for additional government help.

All the negative forces have battered consumers and businesses.

“The economy is undergoing a severe contraction,” Bernanke said.

The nation’s unemployment rate is now at 7.6 percent, the highest in more than 16 years. And it will climb higher — even in the best-case scenario that an economic recovery happens next year.

The Fed expects the jobless rate to rise to close to 9 percent this year, and probably remain above normal levels of around 5 percent into 2011.

Now with that speech did you learn anything new?  If you did then you have not been paying attention or your waist size and IQ are about the same.

What Is The Real Truth Of The Crisis?

I have asked this on many occassions.  People hear lots of fact and fiction in the news and it is all too confusing.  So, what is the real reason of the tanking economy.

I have said it all before…over and over……the consumer is the answer…both good and bad.

The February consumer confidence index fell to 25 from a downwardly revised 37.4 in January. Economists surveyed by MarketWatch had expected a February reading of 35.

Consumers’ view of current conditions fell, with the proportion of respondents saying that jobs are “hard to get” rising to 47.8% in February from 41.1% in January, and those saying that business conditions are “bad” rising to 51.1% from 47.9%.

The reading on consumers’ expectations fell to a record low, with those anticipating there to be fewer jobs in coming months rising to 47.3% from 36.9%. Those expecting “worse” business conditions also increased, hitting 40.5% from 31.1%, and those expecting more income fell to 7.6% from 10.3%

Those with plans to purchase cars within six months fell to 4.7% from 5.3%. Those with plans to buy homes also dropped, to 2.3% from 2.5%, while those with plans to make purchases of major appliances rose to 24.5% from, 23.6%.
Consumers’ 12-month inflation expectations rose to 5.9% from 5.6%.

Also on the data front Tuesday, the Case-Shiller home price index published by Standard & Poor’s showed that home prices in 20 major cities dropped by 2.5% in December from the prior month and by a record 18.5% from the final month of 2007.

I wrote back in November of 08…Demand must be found if the economy is to recovery.  So far all the best laid plans of mice and politicians have not helped create demand….and the crisis goes on….and on….and……

Why Not Lower The Corporate Tax Rate?

That is the question that conservatives have been asking year after year after…….

The massive Obama stimulus is already finding its opponents to include former Republican presidential candidate John McCain, who like his Republican colleagues wants more tax cuts in the plan.  And of course, that will include the standard lower of the US corporate tax rate.  Let’s look at their argument.

Unfortunately, according to the CBO, cutting the corporate rate “is not a particularly cost-effective method of stimulating business spending” and “does not create an incentive for them to spend more on labor or to produce more.” In other words, it doesn’t create jobs.  The Repubs used the CBO to criticize the stim plan but somehow overlooked the report on their tired old mantra of cutting corporate tax.  Cherry picking facts to make a point..,.,a typical political tactic from both sides…personally I want the truth…the whole truth…and nothing but the facts…all the facts.

US business just plain sucks!  Corporations fail, people lose jobs and banks make money.  I have heard some conservs say the way to stop this erosion of American business is to lower the high corporate tax.

Better yet, WHY lower the tax rate?  I wish that they would please stop using this tired piece of garbage as a way for the US to regain its rightful place as a world leading manufacturer.  It will not help, just as the whole “free trade agreements” have not helped.  (This subject to be covered at a later date).

For years I have listen to conservatives bitch and moan about the fact that US corporations are taxed the 2nd highest in the world.  And that it must be lowered to make them more competitive in the world economy.  And now with the onset of the current economic crisis, I hear the argument yet again.  Believe it or not people are buying this whole barrel of BS.

And when these people start the lower corporate tax tango I have heard NO mainstream economist dispute the fecal they spread.  Why is that?  Mainstream economist are the high priests and priestesses of the corporate world.  Just look to the first corporate bailout of Wall Street.

Let us look at one fact that craps on the conservative concerns.  Since corporations in the US get special preferences on taxes and with all their tax incentives that Washington grants, the US collects the fourth lowest corporate taxes in the industrialized world.

A corporate tax structure that closes loopholes and requires all companies to pay their fair share would both enhance America’s global competitiveness and allow government to pay for the public programs that benefit all Americans and, in doing so, foster a healthier business climate.

Now my question is, when the conservatives start their pro-corporate tap dance, why does not someone call them on the crap?  Instead they allow the morons to continue spreading LIES and misinformation.  The American people trust their conservative reps, why I dunno, call it lack of truth or just plain stupidity, but they allow these guys to keep helping the wealthy and ignoring the workers.

Time for that to change!

Copyright:  CHUQ/Info Ink

There Goes Another TARP

Jesus Christ!  Just how much more will we waste throwing at banks?  I mean it is somewhere in the multi-trillions now.  Just where is there an end to this?

Officials will begin so-called stress tests of about 20 of the nation’s largest banks tomorrow with the aim of ensuring they have sufficient capital to withstand the toughest of economic times. Institutions that cannot privately raise the added capital they need will get taxpayer money, regulators said yesterday.

“What we need to clean out the system is for investors to know that there are not more crises to come,” said Raghuram Rajan, a former chief economist at the International Monetary Fund who’s now a professor at the University of Chicago. “The stress tests, if they are followed by action, can help do that.”

The administration’s strategy is not without its risks. By shining a light on banks’ potential problems, it may end up fanning investor fears, rather than quelling them. It may also highlight how little firepower the government has left for fixing the banks’ problems after spending more than half of the $700 billion bank bailout fund authorized by Congress last year.

Policy makers are struggling with that issue as they try to decide how much more help they can provide Citigroup Inc. without diluting the value of shares held by investors too much, a person familiar with their deliberations said.

The initial reaction yesterday showed some relief that shareholders won’t be wiped out by full nationalization of some lenders. Citigroup gained 10 percent to $2.14 after losing more than 40 percent of its value last week. The Standard & Poor’s 500 Banks Index advanced 2.1 percent to 59.41 even as the broader S&P 500 Stock Index tumbled 3.5 percent.

The Treasury, Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and Office of Thrift Supervision vowed to preserve “the viability of systemically important financial institutions” and stated their “strong presumption” banks should remain in private hands and not be nationalized.

I have been bitching about the bailout of banks and Wall Street for months…please make them stop!  Main Street is crashing and burning and the best they can do is offer limited help to limited people….but banks….all help all the time…please MAKE them stop.

2009 Anal-Ocity

You know…I just cannot make this stuff up…no matter how I try…these people just make it way to damn easy.  With this guy you get two anal statements for the price of one…count them…two with one fell swoop…this guy is good…after all he is a Repub….go figure!

Former Pennsylvania Senator Rick Santorum said while addressing students on the Middle East:

……..Santorum said he supported the war when it was unpopular because he thinks not fighting could destroy western civilization. He said he believes that Muslims are America’s enemy because they read their religion literally and apply it to real life, instead of in historical context…..

The lecture continued when Santorum pointed out what he thought were the main differences between Christians and Muslims. Santorum said Christians, who believe in Jesus Christ, never governed or conquered anyone, but Mohammed was a warrior and killed people.

Santorum said he believes Muslims’ religious views cannot be changed or altered, so Middle Easterners reject American, democratic ideals.

“A democracy could not exist because Mohammed already made the perfect law,” Santorum said. “The Quran is perfect just the way it is, that’s why it is only written in Islamic.”…………

What more can I say?  This is a guy that had the decision making process of the country in his hands and this is how he was thinking…..scares me…how about you?

My Problem With The New Stimulus Plan

I hate the fact that I am in a sort of agreement with the Repubs, for that I will wash my mouth out with soap, but not for the same reasons that they shout about.

There is the undeniable fact that very little in the so-called stimulus bill actually “stimulates” job creation. Much of the spending is for what would have been called, in the terminology of the New Deal, emergency relief—that is, money payments to the unemployed, extensions of healthcare benefits, expansion of Food Stamps.

The Republican opposition to these provisions only demonstrates the let-them-eat-cake mentality of the most predatory sections of the US financial aristocracy. But these measures were devised by the Obama administration to buy time, to avoid an immediate collapse in consumer spending that would have irreparable effects, on both the functioning of the profit system and the political stability of the United States. They do not constitute a serious program for reviving the US economy.

Obama closed his Denver speech with populist demagogy directed at his predecessor. He declared, “unlike the tax cuts that we’ve seen in recent years, the vast majority of these tax benefits will go not to the wealthiest Americans, but to the middle class, with those workers who make the least benefiting the most.”

This rhetoric ignores two facts: the actual amount of the tax cut for working people, $400 per individual and $800 per family, is derisory. It is not enough to make a single mortgage or rent payment for most households. And the new administration has apparently already abandoned its pledge to eliminate the Bush tax cuts for the super-rich, preferring to allow the tax cut to expire as scheduled under current law at the end of 2010, giving the wealthy two additional years of a bonanza at the expense of the Treasury, at a time when resources are desperately needed for working people.

In the short term, Obama’s promise of the “beginning of the end” may deceive some of the people. In the longer term, however, it will be utilized by his ultra-right critics in an effort rebuild their shattered political credibility. Thus Republican National Committee chairman Michael Steele declared that the stimulus package might provide a “slight bump” in the economy, but no lasting benefits. “There will be a slight uptick, it will flat-line, and it will continue to go down,” he said.

Sad to say that I agree that this may not be the savior that we all hope it will be.

A Dysfunctional Institution

Professor, what the hell are you talking about?  Why the US Senate of course.

At one time it was called the most exclusive club in America now it is just called a comedy of errors.  These people spend more time back stabbing, back biting, partisan tap dancing and insuring that congressional gridlock is the rule of the day, than they do actually accomplishing anything.

Why do you think so many senators cannot wait to get out of there?  They jump at the chance to run of president or become a cabinet member or return home to run for governor.

What makes it such a dysfunctional family?  well to begin with the whole idea of seniority is just stupid.  Those that are best suited for the leadership are not those old farts that have been around since Christ was a corporal.  Just because someone is old and fat does not give them a corner on expertise,  just shows they play a mean political game.

Maybe the Senate should take a page from the House and find a fresh face to put out there for the public to focus on….you know someone in the same mold as Cantor…..the Senate’s front men now are old and tired and are pretty ineffective at carrying a message.