Good Old American Ingenuity!

Last week, I wrote about Don Davis, the president of Centrue Bank in St. Louis who picked up his ball and went home after legislation passed the US House of Representatives limiting the salaries of bank executives whose banks were recipients of TARP monies (either willingly or under duress as the FDIC was encouraging banks, even those like Centrue with strong balance sheets to take TARP money to increase their capital). This afternoon Fox News reports that Rick Wagoner, CEO of GM will be stepping down immediately at the request of the Administration.

A White House official told FOX Business that Wagoner was asked by the Administration to step down as a precondition for the company to continue to get help with its restructuring.

The idea that our government can cherry pick the businesses that survive, the salaries that executives can make, and the conditions under which people can continue in their positions is, frankly, frightening! While the two aforementioned individuals also had something to do with government bailouts, it is not a far stretch to imagine that this kind of meddlesome behavior could extend to companies and people who have not been bailed out. They may simply have rubbed someone the wrong way or said the wrong thing to the wrong person. They may have espoused the wrong philosophy. They may have unknowingly made an enemy who is now exacting a twisted revenge. In the case of Wagoner, it may be that he is on the wrong side of the UAW to whom Obama owes a great debt of gratitude for his election and perhaps Wagoner has seen fit to call BS on the UAW and its monstrous pension, legacy healthcare and wasteful pay for no work clauses in the union contracts.

"This does not surprise me... Rick has seen good and bad times and it seems that a fresh face is needed,” said Mike Green, president of United Auto Workers Local 652 in Lansing, Mich. "There are a lot of smart, capable people inside GM and this will not muck up anything moving forward."

Or could it be that Obama is playing good cop, bad cop with the UAW so that by removing Wagoner they can also justify strong arming the UAW into concessions under the same threats.

A source told FOX Business that the Obama Administration is likely to set a hard deadline for GM and Chrysler to meet their restructuring goals, which include getting bondholders and the United Auto Workers union to agree to major concessions. If they don’t meet those goals by the deadline, the source said, the auto makers would likely be allowed to enter into bankruptcy protection.

So it is with some degree of pride that I read in the St. Louis Business Journal on Friday March 27, 2009, that Don Davis is giving the middle finger salute to the Administration and TARP and has already lined up a couple of partners, $10million dollars in capital, and is looking to buy a bank! He and his partners have joined forces and pooled their own money and are looking for a small bank in which they can take an ownership interest and......BEGIN LENDING!!!

"The time is perfect to buy or merge with a small bank," Davis said. "So many good people can't get capital right now. I have capital. We can raise another $5 million easily, and once you get $15 million, you can get $20 million." He said the money he and his partners have raised can be an alternative to government bailout money for a bank in need of capital.

"The advantage to buying a bank, instead of starting one....is that you can get into the business immediately. The regulators are not in the mood to hand out new bank charters. Davis' plan to buy a small bank is smart because small banks are more likely to have fewer problem loans. Dan Hogan, a banking consultant, said Davis and his partners are doing what good capitalists do----they adapt! "If you change the rules of the game, a capitalist will learn the new rules and win the game--unless you keep changing the rules."

Perhaps Rick Wagoner can do the same and like the Phoenix rising from the ashes, rally entrepreneurial individuals to take Saturn back as its own quality brand in the USA while GM goes bankrupt under its own weight and the weight of the UAW. Capitalism and American ingenuity is still alive in spite of the fact that TARP monies have put Chris Dodd and Barney Frank in charge of your bank and a tax cheat in charge of the IRS.

A New Economic Proposal from Common Sense America

Some of the things that circulate around on the internet contain the simplest and most common sense ideas...This is could be one of those....

A NEW ECONOMIC PROPOSAL FOR THE GOVERNMENT

When a company falls on difficult times, one of the things that seems to happen is they reduce their staff and workers. The remaining workers need to find ways to continue to do a good job or risk that their job would be eliminated as well. Wall Street, and the media, normally congratulate the CEO for making this type of "tough decision", and his Board of Directors gives him a big bonus!

Our government should not be immune from similar risks.. Therefore:
Reduce the House of Representatives from the current 435 members to 218, and the Senate from 100 to 50. The support staff for the lost congressional members would also be gone. Also, reduce the remaining support staff by 25%. This would be accomplished over 8 years...2 steps/2 elections, and of course this would require some redistricting.

Some yearly monetary gains would include:
$44,108,400 for elimination of base pay for legislators (267 members x 165,200)
$97,175,000 for elimination of their legislative staff (estimate $1.3 M in staff per each member of the House, and $3 M in staff per each member of the Senate) per year.
$240,294 for the 25% reduction in the remaining staff.
$7,500,000,000 reduction in pork barrel earmarks each year. (Those members whose jobs are gone.) Current estimates for total government pork barrel spending is at $15B per year.

The remaining legislators would need to work smarter and would need to improve efficiencies. We may also expect that smaller committees might lead to a more efficient resolution of issues as well. It might be even easier to keep track of what your representatives are doing. Congress has more tools available to do their jobs than it had back in 1911 when the current number of representatives was established. It might even be in their best interests to work together for the good of our country!

Congress did not hesitate to head home for their holiday, when the nation needed a real fix to the economic problems. Also, we have 3 senators (McCain, Clinton and Obama) that have not been doing their jobs for the past 18+ months (on the campaign trail) and still they all have been accepting full pay. This alone supports a reduction in senators and congress.

Summary of opportunity:
$44,108,400 reduction of Congress members.
$282,100,000 for elimination of the reduced house member staff.
$150,000,000 for elimination of the reduced senate staff.
$56,675,000 for 25% reduction of remaining house member staff.
$37,500,000 for 25% reduction of remaining senate staff.
$7,500,000,000 reduction in pork added to bills by the reduction of congress members.

$8,073,383,400 per year, estimated total savings.....just to start!

Big business makes these types of cuts all the time.

If Congress were required to serve 20,25 or 30 years (like all of us at our jobs) in order to collect retirement benefits, there is no telling how much we would save. Now they can get full retirement benefits after serving only ONE term.

If you are happy with how Congress spends our taxes, you just need to sit back and let the good times roll, HOWEVER, if you are NOT happy, then you know what to do......

IT'S COMING!!! RUN FOR YOUR LIFE!!

It creeps, it lumbers, it expands and it is going to engulf us all! It's the massive Porkulus package and all of its appendages such as TARP II and TARP the Sequel!!! Brought to you by Olympia Snowe, Arlen Specter and Susan Collins!! Please be sure to thank them.

The way has been set for the massive and growing Porkulus bill to wind its way back into the reconciliation process where it is likely that the little that has been trimmed in the Senate will be added back with more. Then the Treasury Secretary, Tim Geithner, who cheats on his taxes and crafted the useless TARP I, rolled out more of the same today to the sound of the Dow falling like a rock. Obviously the trust our financial institutions have in Porkulus , TARP II and TARP the Sequel is not well placed.

Kill Bill ---Time to drop the F-Bomb

Gird your loins---it is time to Kill the Bill with the F-bomb. It is time for the ordinary Joe and Jane to step up to the plate and become more vocal than ever in contacting all of the Senators and asking them to STOP the Spend-U-Lose bill in any form it morphs into. The fate of the Spend-U-Lose package rests with that august legislative body of our country known as the Senate. With the $820 Billion (really $1 Trillion plus if you count the interest on this "loan" from you and me) House version being touted as "simply a bad bill," but passed against the votes of 11 dissenting Democrat representatives as well as ALL of the Republicans, the Senate has the responsibility to "make it work," or fix it so that the legislature can go home for a President's day holiday (they work so hard!!!). So, rising to the occasion, the past few days have resulted in a laundry list of amendments to the house version of the bill, each pompously "debated" by senators on both sides of the aisle and then voted up when they are sponsored by Democrats and down when they are offered by the Republicans (not unexpectedly).

If you have never watched your legislature in action brought you you by the cameras of C-span, it is something you should do. You will see the pomposity, arrogance and stupidity of the people YOU have sent to Washington to represent you and spend your money. From committee hearings to floor debate it will both amaze and apall you! Since our legislature usually works banker's hours and makes sure that they never miss meals, I rarely get a chance to watch this circus played out...(I have a job that makes sure that I am in early, out late and I usually eat at my desk while I work)...but when I do, it never fails to amaze and reinforce the fact that the majority of our elected officials are worthless uses of skin.

The latest Rasmussen poll done this week reported that ONLY 37% of the population supports this messy, bloated Spend-U-Lose package. The more we the people see about this bill, the more it stinks to high heaven. Even the Democrats know that this thing stinks, because they have resorted to the used car salesman hard sell rhetoric..."This will only last for the next 2 hours, or if you don't buy this cream puff (read lemon) now, it probably won't be here tomorrow.." and if we fall for it, we do not have a buyer's remorse clause in the contract. The Dems have even have put out a call for poor Ted Kennedy, who was last seen having a seizure on Inauguration Day, to come back to cast a vote for this piece of crap.

So last night with the prediction of a Compromise bill coming down the pike and a Senate forced to "work" through the evening, I curled up to watch an episode of "Your Dollars At Work" brought to you by Harry Reid and the cast of 100! Just moments after I tuned in, the announcement was made by Sir Harry, with ruffles and flourishes, that a wonderful compromise had been crafted by a bipartisan group of sincere and gracious Senators with only the most lofty intentions in mind. This group of Heroes with supernatural powers had risen above the flotsam and jetsam of the legislative pollution to bring you this compromise bill that is $7 BILLION DOLLARS BIGGER THAN THE ORIGINAL HOUSE VERSION!!!! These wonderful ladies and gentlemen were:

• Susan Collins (R) Maine
  
• Arlen Specter (R) Pennsylvania
• Ben Nelson (D) Nebraska
• Joe Lieberman (I) Connecticut
  

Olympia Snowe (R) Maine is also expected to go along with the Compromise bill.

While the details of this bill were not there for discussion last evening, each of the crafters got some time to talk about their part in and support of this bill, and it didn't sound very different from the stinky bill that we already have come to know and hate. Details may be forthcoming over the weekend because the Senators will have to work today (WAHHHHH, WAHHH, WAHHH) and "debate" this some more.

Rebuttals against the compromise were given by selected loyal opposition with the lead off coming from Mitch McConnell (R) Kentucky as the Minority Leader. John McCain (R) Arizona gave an empassioned speech that, had he given in October and also stood against the first TARP bill, might have given him the election. John Thune (R) South Dakota gave a thoughtful and reasoned speech that fleshed out some of the points that McCain made. The most striking of the points made by these speakers is that this was NOT a Bipartisan effort when only 2 (maybe 3) turncoat Republicans will support the compromise.

Then the Senate went back to work and added a bunch of amendments to the original Spend-U-Lose package and voted against some very good amendments that would remove parts of the bill and relegate them to appropriations procedures in the future. The most laughable of these was an amendment sponsored by Senator David Vitter (R) Louisiana which would remove the $40 Billion in this package that would go to ACORN. Senator Vitter cited the role of ACORN in the sub-prime mortgage debacle that started this ball rolling and the role of ACORN in election fraud through the years. Senator Richard Durbin (D) Illinois rose and delivered the most pompous, arrogant and transparent response. He turned toward Senator Vitter and ceremoniously railed against this amendment calling on the old chestnut of Hurricane Katrina and making it seem that ACORN had single handedly saved New Orleans. How anyone can stand there and say such stupid things is WAY beyond my ability to comprehend. Then the amendment was voted down, so ACORN is still alive and well in the SPEND-U-LOSE bill.

While all of this was being played out in Washington, Joe Biden, the gaffe machine, was at a Democrat retreat where he told the attendees that there is a 30% chance that this Spend-U-Lose package WILL NOT WORK. He also warned that if it doesn't work, those who support it will be nailed as responsible in the next round of national elections. So, if this is a huge gamble for the political futures of the Democrats and squishy Republicans (not to mention WE THE PEOPLE), what's the rush? Why not step back and work this out in a way that will be best for those who provide ONGOING jobs as opposed to one time jobs that, when done, disappear? Why not strip ALL of the fat from this bill and look at the presentation of SIGNIFICANT tax cuts for small business and ordinary people who are the ones that create jobs and are being hurt by the current economic climate. Why not think about something very novel that will put money into the hands of working men and women instead of the arts, ACORN and STD testing? This is a high stakes game that is being played with unprecedented amounts of OUR money and to hear this should make EVERYONE say WHOA!!! Is this the "gird your loins" challenge that he warned of???????

So back to the task at hand. A grassroots plan has been proposed that would infuse tons of money into the hands of taxpayers right away. You want responsible, targeted, timely and transparent, this grassroots plan is exactly that. EVERY resonsible moderate Democrat and EVERY Republican should stand against the current and compromise crappy plans that are lumbering through the legislature. It is time for the F-bomb...stop this Spend-U-Lose bill with a filibuster. Voters are watching their every move and will not forget who put us in this uncomfortable position. There is still time to bombard the Senate phone lines, emails and Fax lines to let them know that Biden was right...We WILL hold them ALL responsible for CONTINUED irresponsible spending and use of our tax dollars at the voting booth in 2010 and beyond. And when they get this wrong, Biden and Obama will be at the top of the S***list as the leaders of the pack.

Debate on the Compromise will start at noon EST and you can watch it live on C-Span or stream it live on http://www.c-span.com. Then, when your head is about to explode and blood is shooting out of your eyes (should take less than 30 minutes), pick up your phone, Fax, email or pitchfork and storm the Senate with your outrage and indignation!! If you behaved as irresponsibly at YOUR job, you would get fired. Well, ladies and gentlemen, in case you forgot, WE ARE THEIR BOSS!!

If I have to spoon feed you, Senate Contact information can be found here:
http://www.senate.gov/general/contact_information/senators_cfm.cfm

Keeping the List!!

Tonight, the US House of Representatives passed HR 1, the Obama Pigs at the Trough Reinvestment Act. AKA American Reinvestment and Recovery Act or simply the Stimulus Package. The vote was 244 YEA and 188 NAY votes.

We all knew that the Democrats had enough votes to push this bill through, but thanks to a groundswell of populist clamor from a variety of netroots organizations including TCOT's Operation Melt the Phones. The 188 NAY votes were composed of ALL of the Republican representatives and 11 defecting Democrats. To see how YOUR representative voted, look here.

Please THANK your representative for upholding conservative principles of smaller government and fiscal responsibility. If your representative was a defecting Democrat, magnify your thanks 10-fold for their courage to buck the system.

And don't forget.....the Senate will be voting on this Obamanation of a bill next week, so keep those phone lines burning hot!! If we could do the same in the Senate, we could scuttle this bill---Maybe miracles really do happen. Call your Senator early and often, tell your friends to do the same, Twitter your senator, email them, pray---whatever it takes.

And don't forget to write your Thank you notes like your mom taught you.

The New "New Deal"

With only days remaining until BHO, becomes the Supreme Leader of the "Free" world, he has unveiled his own version of a stimulus package designed to spend our way out of trouble. In a major economic speech at George Mason University on Thursday, he made it clear government is the only white knight out there to save the day.

But at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the cycle that is crippling our economy...

The more than $775 Billion package will be loaded with options including tax cuts to appease the Republicans, green jobs that would have 75% of federal buildings and 2 million American homes (where will John Q public get the money to bring his home into compliance????) magically retrofitted or rebuilt to be environmentally friendly (remember ETHANOL?) , and "shovel ready" infrastructure projects that have mayors and governors getting in line with their hands out for money for museums, water parks and sporting venues (PORK).

This stimulus package will likely only be the FIRST of the Democratic Bailouts, and the cost that has been touted publicly is at the lower end of the estimate to allow it to G--R--O--W as it passes through the legislative process (or leave room for future salvos "if at first you don't suceed...."). This is drawing flack from Obama's own party. Tom Harken has voiced the need for more spending and less tax cuts. Harry Reid has said that he "doesn't work for Barack Obama" (RIIIIIGHT!) Outcries have also been heard from the likes of Barney Frank (king of the subprime mortgages), Carl Levin (socialist) and John Kerry (self-aggrandizing snob who has to weigh in on everything lest he lapse into deserved obscurity). Don't be fooled, however, this flack is needed to give the public perception of disharmony so that when a package is finally formulated, it will be looked at as a truly bipartisan package in a true Kumbaya moment with all credit to the Messiah.

The more important flack issue, to me, is the lack of flack from the Republican legislators. The likes of Leader Boehner ("I am excited to see the tax cuts" OMG you are falling for it from the outset!), Mitch McConnell and Tom Coburn (Obama has been "straight up" with them). I recall a Department Chairman that I once worked under who was notorious for having consensus building meetings with his faculty, allowing everyone to vent their feelings. He listened intently and then did whatever he wanted to do in the first place. When called to account for what he did, he always said, "You can't say that I didn't ask you." I fear that this is how Obama will govern....Beware the smooth wordsmithing and cool demeanor.

From February 2008 until February 2009 when Obama hopes to have crafted his own Bailout package we have been throwing money at the economy with reckless abandon and blame that falls on both sides of the aisle. Since February, 2008 we have spent $168B on the Bush stimulus package, $200B on the Freddie Mac and Fannie Mae bailout, $122.8 B for AIG (poor babies), $700B for the TARP mortgage and banking bailout (with $17.4B carved out for the auto industry and by extension the autoworkers union) and not to be undone, the biggest effort to date......>$775B in the yet to be drafted Obama plan for a GRAND TOTAL of >$1.9TRILLION (sorry there are too many zeroes to reckon with!) that will have been spent on bailing out varied and sundry things. With more pigs lining up at the trough in hope of catching some of the money to be thrown around.

Nancy Pelosi has proposed a deadline of President's day in February for getting this package crafted, drafted and sent to the new President for signature and enactment. She has also boldly stated that if there is no package by this time there will be NO RECESS!! I guess she has no Spring book tour this year....or did she learn her lesson from the #dontgo whipping she took in August 2008?????

Today on Meet the Depressed, David Gregory had a relatively one-sided round table discussion on the bailout. There were some very telling comments coming from former House Majority Whip Rep. David Bonoir who is a member of the Obama economic transition team. When asked about how to deal with the Bush tax cuts, he totally avoided that question. He did, however, say that we

"have to get hold of this inequality in wages and economy." He went on to say that in the past 20 years the top 10% of the wage earners took 90% of the income gains and this is "skewed the wrong way."

When asked where we need to end up, Bonoir indicated that we

"need to give people the opportunity to bargain collectively at the table. At 7% unionization in this country, you are not going to get the dispersion you need." He added, "We were successful in this country after the Second World War. The most profitable time for this country were the three decades after World War II because unionization was at 35%......The Employee Freedom of Choice Act ( think Card Check) is an important part of legislation supported by President-Elect Obama and Biden, Congress and 60% of the American people...This will help to share in the benefits and bounties of the country."

Later in the show, Bonoir predicted that the Stimulus package will pass and it would probably pass even without Republican support.

Come on Republicans, grow a pair and stand up for what WE believe in. Get vocal and EXPLAIN why the government can't fix this.

I close with a quote that many of you will agree with, but the source may be surprising.

We live in a time of transition, an uneasy era which is likely to endure.....During the period we may be tempted to abandon some of the time-honored principles and commitments which have been proven during the difficult times of past generations. We must never yield to this temptation. Our American values are not luxuries, but necessities - not the salt in our bread, but the bread itself.

Jimmy Carter, in his farewell address.

Fuzzy Math Courtesy of the NEA

We keep a coin jar for loose change and from time to time I roll the coins and change them into paper money to use for a treat---dinner out, a movie, whatever. I have been eying the jar for the past couple of weeks and considering that a harvest was in order. Last night I got the coin sorter and the paper rolls out and started sorting and rolling. When I was finished I had $67 in rolled coins. I counted it at least 4 times to be sure--3 rolls of quarters, 5 rolls of dimes, 4 rolls of nickels and 8 rolls of pennies---$67 every time. We decided that we would add it to the Christmas fund. My husband and I are not exchanging gifts this year, but rather are giving to underprivileged families, and we would add this to the pot.

This morning I carried my heavy sack of coins into the bank to change it into folding money. The teller was a woman of about 35, no more than that. I told her of my mission and arranged the coin rolls into like groups so that her job would be easier. She began to count the money--"3 rolls of quarters, $30, 5 rolls of dimes, $25, that's $55 and.....uh... 4 rolls of nickels at $2 each, that's $8 and ...oh gosh, I can't add... uh that's $62 and 8 rolls of pennies at 50 cents each is $4 and the total is $66."

"No," I said, "That should be $67 because $55 + $8 is $63 not $62 and then the $4 in pennies makes $67." She looked confused, so I counted it out for her and showed her, again, that it came to $67. After the second counting, she agreed that I was right and sheepishly turned to her cash drawer and counted out my money...3 $20's and 2 $1's for a total of $62. She held the money out and I didn't take it. She stared at me with a "What's wrong, now??!" look and I said, "I'm sorry but the total was $67."

She mumbled something under her breath about needing coffee and retrieved a $5 to add to the pile and counted it out again. This is a bank teller who can't add and subtract simple sums in her head and make change! This is a bank teller with responsibility for complicated transactions. This is someone who has a cash drawer with large sums of money in it that must balance at the end of the day. This was an easy transaction, just count the money and then give me the same amount of folding money in exchange. God forbid that I had taken a large check that needed to be divided among three accounts and then had some cash back, too (something that I do regularly).

My bank is a well respected bank in this state that has been around for 40+ years under its present name and existed for many years before that. I might have to consider taking my money out now, before the run on the banks so that I can be sure that I actually get all of it!

Gloomy Days

Ever have one of those days when you wanted to curl up in a ball and retire from the human race??? Well, this week had several of them. Watching Wall Street move like a car on the Screaming Eagle made me alternately want to cheer and vomit. Then at the end of the week, came the incredible salvage of "everything imaginable" and I am not sure that I can wrap my head around the implications of it.

A year ago I had someone go over my financial plan for my retirement and they said that they would not change anything, that I had charted a fiscally sound plan for my future and to keep up the good work. I have no credit card debt and had chuckled at the nest egg and "my number" ads on TV as I thought that I was among them with a retirement plan at work and a couple of other side investment accounts that I opened when there was a bit of spare change lying around. I had always pretty much known that I could not rely on Social Security for my retirement (most probably because it would not be there for me) and I felt so proud (and even patriotic, Joe Biden) that I was doing what I needed to do to provide for myself for the future so that I would not be a societal burden.

Now I am not so sure and am wondering what effect this week on Wall Street will do to my "best laid plans". I am now thinking that it would have been better if I had stuffed my mattress with the investment contributions that I made and bought gold bars.

I found this quote earlier this week when I was trying to put what was happening before my eyes into some perspective. "The gloom hanging over Main Street America stems largely from rising price levels, high interest rates, failure of new plant and equipment expenditures to stimulate a new wave of production, failure of housing construction to pick up and the failure of Congress and the President to make much headway on development of an energy policy tax revision program, private capital program, international economic plan and on the establishment of an inflation reduction effort.........Given the unbalanced conditions of international relations and vital resource use patterns however, the possibility of a serious recession in the United States...cannot be entirely discounted........Nevertheless such things as OPEC decrees on the price of oil because of its uneven distribution in the world and the use patterns of industrialized nations will cause the rate of inflation to rise...A determined effort to cut the federal budget deficit will fall short of significant favorable price consequences. Thus price rises will be steadily reinforced during the year ahead." Does this sound familiar?? Well, this is a quote from an article in the Columbia Missourian by Robert Paterson, Professor of economics and public administration in the College of Business and Public Administration at the University of Missouri. The date of the article.....January 7, 1979.

In 1979 I did not know/realize that things were so bad. I did not have the 24-hour media telling me at every turn that the sky was falling. I had not yet had my first child. I did not yet have a 401k because I was still finishing my education. I had student loans to pay and was already in my second new home. My bills were paid and I was able to save a bit each month, so how was I to know that the sky was falling? Is this just more of the same today only with a constant barrage of nay sayers beating it into my head 24-7? Or have we really fallen over the cliff this time and it is no longer "crying wolf"?

On one hand I want to remain optimistic and weather the rough times as I have done several times in the past, but on the other hand, as I get older and know that my retirement SHOULD be getting closer, I feel that I will no longer be prepared or that all my hard work and preparations will disappear overnight. I have listened to the different talking heads this week and I know several things for sure:
1. There is no agreement about what should be done.
2. There is no guarantee that this will work out.
3. I am on the hook for the liability of the past week's activities in some way or another, though I don't exactly know or understand what form this liability will take.
4. This has been a long time coming and my government has sold me out.
5. I am ready to clean out the money lenders from the temple and I DO NOT want to replace them with more entitlements, hand outs, bail outs and nationalization schemes to put a hand in my back pocket and give away what I have earned fair and square!