I don’t know, but I doubt even the most exuberant Hopey-Mc-Changey acolyte really understands what’s going to happen in 2009 with the Democrats in charge of everything.

Gov. Jim Doyle joined four other Democratic governors Friday in calling for a $1 trillion federal economic stimulus package that would include $250 billion for education.

Doyle and the others - Massachusetts Gov. Deval Patrick, New Jersey Gov. Jon Corzine, New York Gov. David Paterson and Ohio Gov. Ted Strickland - said in a conference call with reporters that federal assistance for education is essential to avoid deep cuts in cash-strapped states.

So they want to “give” the middle class a $150 billion tax cut (gosh, that’s so nice of them), but will spend the other $850 billion. Yep, such a great trade off.

The amount of regulation we currently have did not stop this from happening, so what’s to say MORE regulation will prevent it from happening again?

About the only thing that could prevent anothe Bernie Madoff is the fear of trying it again, not the SEC or some idiot from Congress pontificating from his committee chair.

The same people who argue we need more oversight of the free market or that we need to police economic matters seem to get a free pass. Where’s the damn oversight of the Democrat led Congress? Where’s the oversight of the state governments that don’t seem to understand spending more than you have?

Why do hypocrites like George Soros, who make their BILLIONS of money from capitalism, turn around and insist what they did need to get regulated if not restricted? I know when I was trading, I never made the bets that Soros made against currencies like the British Pound, but I’m not of the opinion that people can’t make their own choices when it comes to trading or investing that Soros seems to advocate these days.

The small conspiracy side (and by small I mean ranting at NFL refs who seem to call plays against my team sort of small) almost feels like Madoff did this knowing full well he’d affect major businesses, who then inturn would turn the Uncle Sugar Daddy to get bailed out. A BIG stretch for sure, but how to explain all these “smart” people giving money over to a ponzi scheme?

The other part of me just says we have too many stupid people being churned out by our high schools and universities that are in control of the engines of capitalism.

But Rand had this entire scenario pegged all the way back in 1957 with “Atlas Shrugged.”

It’s to a point where we’re going to be nationalizing this and nationalizing that. Bailout for the boot-licking “mainstream” media? Why not!?

Government creeping in on industry and wanting to establish overseers, no doubt based on the bang-up job they’ve been doing for decades in Washington? Why not!?

One of the biggest free market thinkers suddenly recanting and saying there’s a “flaw” in the free market, yet doesn’t look in the mirror to see the flaw. Why the hell not.

This is indeed the time of the looters and the moochers. I work with people who bought into the whole “Hope and Change” garbage and yet, they’ll probably never realize any change from the incoming administration. And too many people are now sideling up to get theirs from Uncle Sam and don’t care a whim about the destruction they may cause if Washington steps in to control vast industries in this country.

I’ve said it before and I’ll keep saying it. What has Washington D.C. ever done to merit having this much power over this economy?

And I’m supposed to honestly buy what Conde Nast Portfolio is shoveling out to people? Barney Frank a person who’s part of the reorganization of the economy? Conde Nast…are you shitting me? The man who denied that there was anything wrong with Freddie and Fannie? That guy!?

“These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

Good lord. At least you got Paulson and Cramer right.

So the President-elect has a plan…a bold fresh plan.

I have already directed my economic team to come up with an Economic Recovery Plan that will mean 2.5 million more jobs by January of 2011 - a plan big enough to meet the challenges we face that I intend to sign soon after taking office. We’ll be working out the details in the weeks ahead, but it will be a two-year, nationwide effort to jumpstart job creation in America and lay the foundation for a strong and growing economy. We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels; fuel-efficient cars and the alternative energy technologies that can free us from our dependence on foreign oil and keep our economy competitive in the years ahead.

Sounds great, but really, where does the money for all this blue-collar work come from? Is this the future of America? Returning to the Civilian Conservation Corps?

I’m still waiting to hear about the greed of speculators and Wall Street. Oh wait, that came from the opposition.

Being in my mid-thirties, I’ve only been through a handful of major economic downturns.

In the early 1990’s, following 9/11 and our current downturn. I call it a downturn because unlike past true recessions, I really don’t personally see the tumult and apocalypse the media would have me believe.

Then there’s the other group of people. They’re the ones who’ve never really lived through anything. They were sheltered because they were going to school or were living at home when any of these downturns were happening. For all intensive purposes, what they’re experiencing now IS the worst thing in their lives…so far.

I know it’s easy to shrug a lot of this off, but if people under 30 can’t handle what’s happening now, what in the world are they going to do when things might just get worse? Commit suicide?

Ironically enough, most people I know experiencing this current downturn are all Obama supporters and as such, seem more apt to blame capitalism/Republicans/free markets et al for what’s happening right now. And then that leads to what they perceive to be the solution and what they’re to do or let happen.

This is where the danger lies for everyone right now. Too many people right now are trading in their freedom for the cloak of security. They believe the government can do things better…but why? What does the government do better that a free marketplace cannot? I may be preaching to a choir in some places, but what has the government ever done to warrant being able to have so much power of the economy or our lives? What’s their track record? Read the rest of this entry »

If Japan can come to this country and prosper with the same people making their cars, why can’t Detroit? Why should they be propped up any more?

When has the answer to anything ever been “Getting more union jobs”? That’s the rub. That’s the problem with the U.S. auto industry. Union car-makers who believe they should be treated like kings while the entire industry in this country burns to the ground. Do they deserve good wage? Of course, but the Japanese car makers pay their U.S. employees around $40/hour ($48 with benefits). Would anyone sneeze at $40 per hour? Seriously?

Now while Toyota, Honda and Nissan pass General Motors, Ford and Chrysler by, the “Big Three” see themselves getting shellacked. And for that…they should be bailed out?

Say you had media company or just had billions of cash laying around. I know, I know, if you just had that money lying around, you’d be a evil greedy Republican who doesn’t want to let the chocolate people touch his money. But, tired cliches aside, if you did have the money to do so, would you buy the Gray Old Lady at $9.55 a share? If you had the ability to do so, would you become the major shareholder and bust old Arthur Sulzberger and Bill Keller out of there?

Would you keep the editorial board the same or would you revamp it?

Would you as the publisher demand that stories from either party be front and center and not bury a particular one based on the political party it affects?

It is the biggest newspaper in the country, particularly from the influential standpoint, but is that waning? If, as a greedy Republican, would you even want to waste your money on buying such a money-pit even if you think owning it would give your side some psychological edge in Big Media?

Imagine if you had enough money to save Jeff Immelt’s butt and buy NBC Universal though. Wouldn’t that be fun.

Today was a good day to get back into the stock market…as usual.

Without going into the data, it seems like the sell-off recently were the panicky public prevaricating over the doomsday news coming from the media regarding their 401K’s. Money that shouldn’t be in the game, got out and those on the sidelines came in made a huge impact on the Dow today…a 936 point impact.

If Congress weren’t busy playing political games regarding the economy, in some vain attempt to help out Senator Obama it looks like, we wouldn’t have banks having to be bailed out by the government. If we didn’t social engineer, banks wouldn’t have felt the need to take on risky loans in the first place. Now, not to let them off the hook, but everytime a pundit brings up the mortgage crisis, they blame one of two things: the “greedy” banks and the free market. Yet, they never mention two other possibilities: the meddling government and the people who took out the loans without enough money down or enough of a good income. You don’t hear about the people, the “folks” as they’re called, who lied about their income to mortgage lenders or the affirmative action component of the good intentions that lead us to hell.

Why is that?

Where have we heard this before?

The free market must be reigned in! More government regulation! The government must step in!

Why we’ve seen this dog and pony show before, back in 1932:

“President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services,” said Cole, also a UCLA professor of economics. “So he came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies.”

Of course, competition is to blame, just as the free markets are getting blamed for ALL the ills of the world. Yet today, like years gone by, the very same people who wonder what’s happened should look in the mirror. If they’re some government bureaucrat of course and are trying to pin the mortgage crisis on the “free market”.

Hat-tip to Instapundit.

Back in the go-go Clinton 90’s, I was wrapped up in real estate. Truth be told, I made more money trading futures (no cattle futures, actually made money on sugar and cotton) and basically read about real estate investing. Maybe because the old Carleton Sheets method of investing didn’t seem that sound to me or maybe it was the sheer volume of shysters who made more money pumping their programs rather than actually making money IN real estate.

Now along the way, I’ve picked up e-books, books, courses of all sizes and shapes. One book talked about making money investing in foreclosures without cash or credit. Interesting. Sounds like something that’s happening now.

Published in 2003, this book has a section for “long term wealth”. One of their strategies is called Sell with “Owner Financing”. Basically, you own a home as an investor and find a potential buyer who gives you a down payment and you wraparound the remaining mortage over a certain type period. Or you rent a property to someone and then as part of your agreement, they agree to take over the mortgage (being qualified of course) and you as the property owner get to walk away with cash and helping out a new homeowner. Win-Win…you think.

Read the rest of this entry »