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The best line so far about the government bailout for the auto industry – “Bringing Fannie and Freddie Style Accountability to the Auto Industry” by Newt Gingrich, who went on to say:
One of the reasons was House Financial Services Committee Chairman Barney Frank (D-Mass.). Frank fought tenaciously against the regulation that would have held Fannie and Freddie executives accountable and might have averted the financial crisis.
Now Chairman Frank wants to bring his particular style of crony capitalism to the auto industry.
On “Face the Nation” this Sunday, Chairman Frank announced that not only would he push for a taxpayer bailout of the Detroit Three during the special session of Congress this week, but he would also create a government oversight board for the three companies — in effect, a board of directors made up of predatory politicians.
I believe that it would be a mistake for the taxpayers to be forced to bail out Detroit. Companies at which union workers make $71 an hour in wages and benefits — compared to just $47 an hour at Toyota’s U.S. plants — are not going to be saved by a $25 billion government check.
So the people who brought you the Fannie/Freddie mess want to do for the auto industry what they did for the mortgage and banking industry. That guarantees bailout 2.0, 3.0, 4.0 and so on. Barney Frank not only can’t admit he failed spectacularly with Fannie and Freddie (saying they were fiscally sound right until they collapsed), he brazenly wants to do bring his failed Fannie/Freddie strategy to the auto industry. How many trillions will your failed oversight cost taxpayers, Mr. Frank?
But in January, there’s a new sheriff in town — Mr. hope-n-change rides in. Will Obama support actual change, or go along with the Democratic congress for more of the failed policies which got us into this mess in the first place? We hope Obama really does work for change, and tells Congress NO! That would take guts, and go against his own party, but we’ll quickly find out if we elected hope-n-change, or more-of-the-same. We’ve already had two years of Democratic-controlled policies, how well is that working out for you?
President-elect Obama won an historic victory two weeks ago on the promise of delivering change to the American people. Bailing out the Detroit auto dinosaurs is not change. It is crony capitalism in service of a failed status quo.
President-elect Obama should stand up to congressional Democrats and say “no” — “no” to saddling future generations of Americans with the bill for today’s crony capitalism.
That would be change we could believe in.
The classic bailout bait-and-switch. Remember how it was sold to the public (and Congress) with the idea to buy up troubled mortgage assets? Now, after the bill was signed, Secretary Paulson says he’s going to ignore what the bill said and spend the $700 billion however he wants.
This is just one problem with the bailout — it gives the Treasury Secretary unlimited power to spend $700 billion of our money any way he wants with no accountability whatsoever (can you say Freddie meltdown 2.0?). Should we thus be surprised when he decides to ignore the bill’s intentions?
This bailout disaster will end up with more corruption, payoffs, and back-room deals making the Fannie/Freddie meltdown look like childs play. And Team RePO (Reid/Pelosi/Obama) wants more bailout? Grab your walllet.
Treasury Secretary Henry Paulson said Wednesday that original plan to purchase distressed mortgage assets from Wall Street firms is not the best use of the $700 billion financial rescue package, and officials will now focus on direct capital injections into the struggling financial firms.
This comes after Paulson said buying troubled assets — the plan originally advertised to the public — would take too much time in a financial crisis that continues to test the patience of investors, government and the public.
So Paulson decides a handout (oops, “direct capital injection”) is best, and doesn’t even want to buy any assets. It’s pure handouts, and completely contradictory to what the public and Congress was told. Is it any wonder more companies and states are lining up at the federal trough for this pork-fest?
Neither party wants to investigate the financial meltdown they caused. Democrats look to take advantage of their financial creation to pass more socialist programs, while Republicans don’t want to touch it as it might uncover their shady business ties. Both parties don’t want the public to know the truth — it’s Congress’ fault (for the last two years Democratic controlled) for this mess. Simply put, Democrats forced banks to make home loans they knew would end up in default (via the Community Reinvestment Act), and Republicans saw a chance to make a buck by passing off the stinking festering pile of goo off to other (federal) banks so they could keep the profits.
The Crap Sandwich bailout — brought to you by the Democratic Congress overseeing Fannie Mae and Freddie Mac (and told you how financially sound they were right up until they collapsed) — and that worked out so well, let’s do bailout 2.0! How many trillions have already been spent by Democratic-controlled Congress without any results? And their solution — spend more!
Have no fear, citizens, Team RePO is on the job! (Hopefully, Obama won’t go along with Reid/Pelosi on more crappy bailout as he’s supposed to be for the little guy, but this remains to be seen)
This is so bizarre, reckless, and bad for regular people we can’t make this up if we wanted to:
Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.
House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.
“system of guaranteed retirement accounts to which all workers would be obliged to contribute. “
Gee, that sounds like … wait for it … Social Security! And we all know how well that worked out — it’s bankrupt in 2017 and will require either massive tax increases, or massive cuts in benefits (or both). And just like the Fannie and Freddie collapse, the politicians tell us the system is fine and won’t be bankrupt (of course, what happens in 2017 when taxes taken in can’t pay benefits they don’t want to talk about) — and just like Fannie/Freddie all those same politicians will say “we never saw this coming…”, and it will be deja vu, all over again. How many trillions will the next bailout cost?
And those guys want to start a new retirement plan? We can see the ads now “The new Secure Community Retirement Wealth Distribution (SCReWeD for short) — brought to you by the same people who brought you subprime mortgages, Social Security insolvency, trillion dollar bailouts, and the Fannie and Freddie collapse”. Something tells us there won’t exactly be truth when they try and sell this mess to voters.
Whether this new scam (oops, plan) replaces social security (unlikely) or be a new tax on top of social security (probably) isn’t clear, but combine the House Democrats with a Senate majority and a friendly Obama administration signing any stinking pile of festering goo they send him, do you really want to find out? How high can your taxes go? How fast can your retirement be raided? (Gingrich was correct recently calling them “Team RePO” for Reid/Pelosi/Obama)
But it gets worse when you see how the plan actually works:
Under Ghilarducci’s [Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York] plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.
So they kill your 401k, force you to pay a tax (oops, contribution) of 5% more of your salary to the government, and only offer investments in government IOU’s (oops, bonds) paying 3% per year (unless they change the rate later). Yeah, that’s a safe investment — I’ll take the stock market and it’s long-term returns, thank you very much — even with the current downturn.
“I want to spend our nation’s dollar for retirement security better. Everybody would now be covered” if the plan were adopted, Ghilarducci said.
She has been in contact with Miller and McDermott about her plan, and they are interested in pursuing it, she said.
Just like Obama told Joe the plumber he wanted to “spread the wealth around” (not exactly true, Obama didn’t mean spread the wealth around, but spread Joe’s wealth around), only this time not only raise your taxes and spread your income around, raid your retirement savings and spread that around as well. More specifically, make sure everyone is beholden to the government for retirement, and remove choice. Aren’t the Democrats supposed to be pro-choice? Only if it involves abortion and throwing babies in the trash if they’re born alive (oops, “survived a medical procedure”).
When it comes to your retirement, no choice allowed, and instead of making your own decisions you’ll only get what the government chooses you should get — and they can change it anytime they like, as often as they wish, as you don’t really own anything, just a bag of IOU’s.
“I have altered our agreement, pray I don’t alter it further.” — Darth Vader
Even worse, Obama with a Democrat controlled Congress passes legislation at will like insane proposals like this — only which have a majority Democratic leadership and President behind them (Team RePO at work).
For more, just Google for “George Miller Jim McDermott 401k” for lots more; it really is as bad as it looks.