I see more ads for Ditech mortgages (from GMAC) and GMAC Bank than I see for GM cars. So GM is now earning more from the financial sector than from manufacturing?
We owe ever more to China and India, and the petro-dollars we send to the Gulf of Arabia are now being used by Gulf countries' sovereign wealth funds to shore up our banks!!
The Economist magazine, hardly a left-wing publication, stated "The financial-services industry's share of total American corporate profits rose from 10% in the early 1980's to 40% at its peak last year. By one calculation, profits in the past decade amounted to $1.2 trillion more than you would have expected." And this was from the Sept. 20, 2008 edition, before the meltdown Monday, Sept. 29!!!!
Tie these items together and it's easy to see why the US is well down the road to being a second class power. Financial engineering has replaced real engineering. Anybody else think this picture needs adjusting??
On a more hopeful note, Captain 'Roid has been following with interest the saga of the freighter that the Somalian pirates captured. Seems there's about $40 million worth of old Soviet tanks and artillery aboard. It was headed for Kenya. The Somalis want a $20 million ransom for it. Our captain would love a share of that money to help her parents retire, but the gleam really comes to her eye when she thinks about her and the rest of the Pirate Dogs sailing that ship up the Potomac, taking over Washington, and helping all of us........................
Tuesday, September 30, 2008
Sunday, September 28, 2008
Christian Nation
I received a very unwelcome email a couple of days ago about how Muslims can't be Americans. It was ignorant , racist, and repugnant. See cz's blog for some of the quotes and details. I feel the need to comment on this entire email/blogging/propaganda campaign that this election cycle has degenerated into. I really am disgusted by the ignorance and the absolutely unChristian behavior of the purveyors of this trash. Allow me to present a few facts:
First, Islam, also known as Mohammedanism, is one of the THREE great mono-theistic (for those of you who send garbage emails, that means belief in ONE GOD) religions. The other two are Judaism and Christianity. I hope all of you readers are familiar with those, at least. Abraham and Jesus are both revered as prophets in Islam. There isn't any Arabian desert moon-god.
Second, if Barack Hussein Obama is a Muslim, then why is there a big scandal about the relationship with the Christian minister Jeremiah Wright??? You can't have it both ways.
Perhaps it is time to decide if in fact we are a Christian nation. There's an awful lot of people professing to follow the teaching of Christ who seem more like followers of the Pharisees. Remember in the New Testament when Jesus said he was the new order, that the greatest commandment was to love God and also to love thy neighbor as thyself? Or when he instructed that he who was without sin should throw the first stone at the adulterous woman? He also replied with the parable of the good Samaritan when queried as to whom one's neighbor was. Wasn't His Crucifixion the ultimate turning of the other cheek? The attacks on homosexuals, the needless war in Iraq, the torture of people of Middle Eastern descent in places like CIA rendition centers, Abu Ghraib, or Guantanamo--- are these acts those of a nation purporting to follow the teaching of Jesus Christ?
Please don't misunderstand me. I have contempt for the people who flew those planes on 9/11. I believe our nation should do all in its power to bring the planners to justice. But to villify a race, to use "Islamic terrorism" as an excuse to put aside the excercise of our Christian principles, to use false attacks on a candidate because he is different, these are the tactics of the Sanhedrin. And I hope all the God-fearing " Christians" remember whom they had killed. Or do some of them even know????
First, Islam, also known as Mohammedanism, is one of the THREE great mono-theistic (for those of you who send garbage emails, that means belief in ONE GOD) religions. The other two are Judaism and Christianity. I hope all of you readers are familiar with those, at least. Abraham and Jesus are both revered as prophets in Islam. There isn't any Arabian desert moon-god.
Second, if Barack Hussein Obama is a Muslim, then why is there a big scandal about the relationship with the Christian minister Jeremiah Wright??? You can't have it both ways.
Perhaps it is time to decide if in fact we are a Christian nation. There's an awful lot of people professing to follow the teaching of Christ who seem more like followers of the Pharisees. Remember in the New Testament when Jesus said he was the new order, that the greatest commandment was to love God and also to love thy neighbor as thyself? Or when he instructed that he who was without sin should throw the first stone at the adulterous woman? He also replied with the parable of the good Samaritan when queried as to whom one's neighbor was. Wasn't His Crucifixion the ultimate turning of the other cheek? The attacks on homosexuals, the needless war in Iraq, the torture of people of Middle Eastern descent in places like CIA rendition centers, Abu Ghraib, or Guantanamo--- are these acts those of a nation purporting to follow the teaching of Jesus Christ?
Please don't misunderstand me. I have contempt for the people who flew those planes on 9/11. I believe our nation should do all in its power to bring the planners to justice. But to villify a race, to use "Islamic terrorism" as an excuse to put aside the excercise of our Christian principles, to use false attacks on a candidate because he is different, these are the tactics of the Sanhedrin. And I hope all the God-fearing " Christians" remember whom they had killed. Or do some of them even know????
Thursday, September 25, 2008
Pirate Dog-onomics
So first the meltdown, then the deal, then the no-deal, then more negotiations ad nauseam while my retirement funds shrink and shrink and shrink.........
The Pirate Dogs just don't get it. For them, economics is simple and transparent. Their favorite treat, home made bone turks, are kept in a CLEAR GLASS jar. 'Bout as transparent as it gets, right? When they want a treat, they let us know either by barking, pointing, or doing something obnoxious to get our attention, then repairing to the kitchen and staring at the jar. Simple supply and demand. They demand bone turks, we supply them. No derivatives or CDOs here. Just basic macroeconomics at work.
Maybe we should send the three of them to Washington DC???
The Pirate Dogs just don't get it. For them, economics is simple and transparent. Their favorite treat, home made bone turks, are kept in a CLEAR GLASS jar. 'Bout as transparent as it gets, right? When they want a treat, they let us know either by barking, pointing, or doing something obnoxious to get our attention, then repairing to the kitchen and staring at the jar. Simple supply and demand. They demand bone turks, we supply them. No derivatives or CDOs here. Just basic macroeconomics at work.
Maybe we should send the three of them to Washington DC???
Wednesday, September 24, 2008
The Commodore
Ah the Pirate Dogs were in a frenzy this morning. Their beloved CPS Nargle had become unwelcoming. It was the arrival of the Commodore.
Readers are aware of the Pirate Dogs, Skippy Kee, and Androme-Clee . But there is another denizen of this domicile: Commodore Cody. And this morning he took command of the Nargle :
Readers are aware of the Pirate Dogs, Skippy Kee, and Androme-Clee . But there is another denizen of this domicile: Commodore Cody. And this morning he took command of the Nargle :
Now Cocklatine Cody is a geriatric male Siamese cat---over 10 years old. He takes no guff from any other resident of the house including the humans. His claws are sharper than sabers and he can flash them quicker than an épée maestro. The Pirate Dogs have nothing but respect for this fellow, hence the moniker Commodore. He truly is their Master and Commander, in the spirit of
Richard Bolitho, Horatio Hornblower, and Jack Aubrey. So his appearance on board caused them consternation and confusion. As I write this much later in the evening, the pirates are huddled in the living room and the Commodore is still ensconced upon the poop deck.
Monday, September 22, 2008
Bubble-licious
So the financial bubble is bursting. The housing bubble has supposedly already burst. But these are so intertwined that there is probably more pain coming. How did we get to this point?
As I understand it, the housing bubble was inflated, at least in part, by low interest rates and easy credit terms. Remember the days, not so long ago, when a buyer was required to have 20% of the purchase price for a down-payment on a house. The principle and interest on the mortgage loan could not exceed 25% of their gross monthly income and the buyer's total monthly payments had to be less than 33% of that income. Remember when real interest rates were positive numbers? Thanks to central banks, many interest rates today are less than the rate of inflation. That makes borrowed money cheaper than the money earned by trade or work. Add new "mortgage products" like interest-only mortgages and adjustable rate mortgages to a loosening of lending standards, i.e., the ability to repay the loan, and people can obtain more house than they can afford to pay for in actual terms. Good for low income and young buyers until the rates adjust and their payments increase faster than their wages which is the scenario over the last seven or eight years.
So now the chickens have come home to roost. These ill-conceived and improperly vetted loans have gone into default, there's a glut of over-priced McMansions on the market. Real estate prices are plummeting, probably searching for a sustainable level based on real economic data about wages, output, and productivity. And the geniuses of financial engineering have packaged all these toxic loans into "financial instruments" so devious that experts like bond and credit ratings agencies, as well as the bankers and financial traders, can't assign the risk to those to whom it belongs. So taxpayers will pay for all this with a government bail-out so the system doesn't totally stop functioning. It would be much worse if the credit markets tighten for small businesses and companies that need some credit to keep the doors open.
But let's also address the real causes of these bubbles. The lack of transparency in many "financial instruments" needs to be addressed. And the entity charged with this regulation is the federal government. The public does not need to own Fannie Mae, Freddie Mac, or AIG. These companies, as well as the others still operating in the financial sector, need to perform their function under their charters in the market according to the regulations governing what is acceptable in the markets---investing, not gambling. Proper vetting of applicants for loans. Transparency in investment solicitations.
Congress should not pass the bail out without asserting its responsibility for economic oversight and without guarantees that it will indemnify the taxpayers against a further melt-down.
As I understand it, the housing bubble was inflated, at least in part, by low interest rates and easy credit terms. Remember the days, not so long ago, when a buyer was required to have 20% of the purchase price for a down-payment on a house. The principle and interest on the mortgage loan could not exceed 25% of their gross monthly income and the buyer's total monthly payments had to be less than 33% of that income. Remember when real interest rates were positive numbers? Thanks to central banks, many interest rates today are less than the rate of inflation. That makes borrowed money cheaper than the money earned by trade or work. Add new "mortgage products" like interest-only mortgages and adjustable rate mortgages to a loosening of lending standards, i.e., the ability to repay the loan, and people can obtain more house than they can afford to pay for in actual terms. Good for low income and young buyers until the rates adjust and their payments increase faster than their wages which is the scenario over the last seven or eight years.
So now the chickens have come home to roost. These ill-conceived and improperly vetted loans have gone into default, there's a glut of over-priced McMansions on the market. Real estate prices are plummeting, probably searching for a sustainable level based on real economic data about wages, output, and productivity. And the geniuses of financial engineering have packaged all these toxic loans into "financial instruments" so devious that experts like bond and credit ratings agencies, as well as the bankers and financial traders, can't assign the risk to those to whom it belongs. So taxpayers will pay for all this with a government bail-out so the system doesn't totally stop functioning. It would be much worse if the credit markets tighten for small businesses and companies that need some credit to keep the doors open.
But let's also address the real causes of these bubbles. The lack of transparency in many "financial instruments" needs to be addressed. And the entity charged with this regulation is the federal government. The public does not need to own Fannie Mae, Freddie Mac, or AIG. These companies, as well as the others still operating in the financial sector, need to perform their function under their charters in the market according to the regulations governing what is acceptable in the markets---investing, not gambling. Proper vetting of applicants for loans. Transparency in investment solicitations.
Congress should not pass the bail out without asserting its responsibility for economic oversight and without guarantees that it will indemnify the taxpayers against a further melt-down.
Sunday, September 21, 2008
TWTW
This is the week that was. Just phenomenal. From the campaign gaffes to the Wall Street melt-down.
As today's New York Times says---the sound of the bubble bursting. http://www.nytimes.com/2008/09/21/weekinreview/21leonhardt.html?_r=1&ref=todayspaper&oref=slogin
I've long subscribed to the theory that when a country/economic entity begins to make money by making money, i.e., letting the financial sector become dominant over the manufacturing or other sectors of the economy, decline results. The dotcom correction, the housing bubble, the trade deficit, and now the latest financial snafus illustrate this. I wonder how many people with money in various funds, saving for their retirement, can define financial derivatives, cdo's, tranches, hedge funds, or the myriad other "financial products" they are involved with, wittingly or not. Let alone understand them. And now the government is going to spend something like $700BILLION to $1TRILLION to buy these tarnished "investment instruments". That's OUR money!!!!! If the Federal Government can raise this money for the purpose of rescuing financiers-turned-gamblers it can certainly raise this sum to fully fund the Social Security endowment and Medicare so poor working people don't have to trust their retirement savings to those same gamblers, which is what the privatization of Social Security is. I believe the money would be better spent in this way and in reimbursing small investors for their losses thanks to the financial mismanagement of their investments by these same gamblers. John McCain has voted to privatise Social Security. He still believes in this. I'm sure Sarahcuda has some canned response along the same lines.
I live in a region of the country where "NOBAMA08" bumper stickers significantly outnumber the ones that read "IF YOU ARE NOT OUTRAGED YOU ARE NOT PAYING ATTENTION." Perhaps this week will get more of these people to pay attention.
As today's New York Times says---the sound of the bubble bursting. http://www.nytimes.com/2008/09/21/weekinreview/21leonhardt.html?_r=1&ref=todayspaper&oref=slogin
I've long subscribed to the theory that when a country/economic entity begins to make money by making money, i.e., letting the financial sector become dominant over the manufacturing or other sectors of the economy, decline results. The dotcom correction, the housing bubble, the trade deficit, and now the latest financial snafus illustrate this. I wonder how many people with money in various funds, saving for their retirement, can define financial derivatives, cdo's, tranches, hedge funds, or the myriad other "financial products" they are involved with, wittingly or not. Let alone understand them. And now the government is going to spend something like $700BILLION to $1TRILLION to buy these tarnished "investment instruments". That's OUR money!!!!! If the Federal Government can raise this money for the purpose of rescuing financiers-turned-gamblers it can certainly raise this sum to fully fund the Social Security endowment and Medicare so poor working people don't have to trust their retirement savings to those same gamblers, which is what the privatization of Social Security is. I believe the money would be better spent in this way and in reimbursing small investors for their losses thanks to the financial mismanagement of their investments by these same gamblers. John McCain has voted to privatise Social Security. He still believes in this. I'm sure Sarahcuda has some canned response along the same lines.
I live in a region of the country where "NOBAMA08" bumper stickers significantly outnumber the ones that read "IF YOU ARE NOT OUTRAGED YOU ARE NOT PAYING ATTENTION." Perhaps this week will get more of these people to pay attention.
Saturday, September 20, 2008
The Captain's Latest Plan
What a week!!!! Financial melt downs, bail outs, campaign peccadilloes, yuck!!! But the Pirate Dogs have a new plan for us------ Monday we were watching The Rachel Maddow Show on MSNBC. Usually the crew pays attention when dogs appear on screen but that insipid Purina One commercial with that overly compliant and obviously dim-witted Retriever-type dog makes them ignore the tv. But the story that followed the ad, that's another story. Captain Roid perked right up as Rachel related Google's plan to green itself up by moving some, if not all, of its computer centers to barges in the ocean. The reasons she cited for this action were reduced costs (hence more profit) in real estate taxes and upkeep and using water to cool the computers which should enhance the company's greening up image. But what drew the attention of the Captain was one of the possible downsides of the plan. Ms. Maddow talked about weather disasters such as hurricanes being a hazard to the barges. She also mentioned pirates as a potential hazard. The Captain then proceeded to the Nargle and came up with her plan---taking over Google!!Imagine----you or your child searches for information on computer chips. Normally you would find a picture like this:
But instead, since the Pirate dogs now control "The Google", you get their interpretation of your search parameters---Chip Turks (otherwise known as rawhide flips), of which they have a treasure chest full:
But instead, since the Pirate dogs now control "The Google", you get their interpretation of your search parameters---Chip Turks (otherwise known as rawhide flips), of which they have a treasure chest full:
Going to the doctor, or searching a site like WebMD for information on your skeletal malfunctions normally would lead to something like this--
But our crew of buccaneers has taken over and their image is of their favorite treat: BONE-turks:
Finally, your fourth grader needs to do research for a civics paper, the topic is agriculture, and she googles wheat. When the servers were land based, she'd probably have gotten an image like this:
But our crew of buccaneers has taken over and their image is of their favorite treat: BONE-turks: Finally, your fourth grader needs to do research for a civics paper, the topic is agriculture, and she googles wheat. When the servers were land based, she'd probably have gotten an image like this: 
But after the takeover the monitor displays a portrait of Crow's Nest Weetzie!!!!!
So good luck to Google and all its users if they go ahead with their offshore plan. And happy (belated) talk-like-a-pirate day from Capt. Roid, First-mate Leny, and Crow's Nest Weetzie!!!
"ARRRGH!"
Tuesday, September 9, 2008
Equal Time
First, a word about comments. I moderate the comments on this blog. I try to be fair and reasonable and I hope that readers who honor this blog with comments do so in the spirit of the blog--open discussion, expanding the mind, and a little fun. So I don't allow comments from "Anonymous" to appear. I've had a couple from this moniker and they were personal attacks like you're an eastern liberal and why don't you move back there. I welcome and encourage comments on any post but please keep them in the spirit of the blog. Even if you don't agree with something that appears, present your arguments. I pledge to try to be fair and as impartial as I can be when moderating comments. And the Pirate Dogs promise too.....
About the Republican convention--I found I was glad I had a mute button. Sarah Palin was impressive in front of the microphones. But I got sort of bored by the rest of the speakers. From Mitt complaining about "liberal Washington"(!!!!?!!!?!!) to Rudy's almost-imitation of a hockey mom (pitbull, no lipstick) to the endless paeans to John McCain's bravery and maverick credentials--my father was a hero in WWII and he was not qualified to run for president. There was so much about patriotism, strength under the duress of torture, and maverick tendencies that I almost thought they weren't going to nominate McCain but had switched to Mel Gibson, who played all those roles (lead character in The Patriot, tortured in Braveheart, and the inimitable "the name is Brett" Maverick). Then I remembered he was born in Australia, so they must have been talking about McCain.
I have always respected John McCain, his service in the Navy and the Senate. I think I even wrote in his name on my ballot in 2000. But he wasn't a ship captain or exec, he was a fighter pilot. This plays well with his maverick identity but not his leadership as an officer. That experience was negligible in that he didn't have command responsibilities like Ike or JFK. His votes over the last year against the environment, against the prohibition of torture, against the new GI Bill, and for the misguided efforts in Iraq have eroded this respect and, for me, raised doubts about the very independence he so promotes. As for Sarahcuda, I hope I soon hear what she thinks rather than the same canned sound bites from the convention she has so far uttered at every whistle stop. And I don't think it's sexist to want answers to her feelings on God and government, or the internet rumor that her son only joined the army because the other option was jail on a vandalism charge. It's out there and should be addressed. After all, it's as least as relevant as Obama's having attended madrassas. "Sauce for the goose, Saavik." (Leonard "Spock" Nimoy to Kirstie "Lt Saavik" Alley in Star Trek II: The Wrath of Khan)
About the Republican convention--I found I was glad I had a mute button. Sarah Palin was impressive in front of the microphones. But I got sort of bored by the rest of the speakers. From Mitt complaining about "liberal Washington"(!!!!?!!!?!!) to Rudy's almost-imitation of a hockey mom (pitbull, no lipstick) to the endless paeans to John McCain's bravery and maverick credentials--my father was a hero in WWII and he was not qualified to run for president. There was so much about patriotism, strength under the duress of torture, and maverick tendencies that I almost thought they weren't going to nominate McCain but had switched to Mel Gibson, who played all those roles (lead character in The Patriot, tortured in Braveheart, and the inimitable "the name is Brett" Maverick). Then I remembered he was born in Australia, so they must have been talking about McCain.
I have always respected John McCain, his service in the Navy and the Senate. I think I even wrote in his name on my ballot in 2000. But he wasn't a ship captain or exec, he was a fighter pilot. This plays well with his maverick identity but not his leadership as an officer. That experience was negligible in that he didn't have command responsibilities like Ike or JFK. His votes over the last year against the environment, against the prohibition of torture, against the new GI Bill, and for the misguided efforts in Iraq have eroded this respect and, for me, raised doubts about the very independence he so promotes. As for Sarahcuda, I hope I soon hear what she thinks rather than the same canned sound bites from the convention she has so far uttered at every whistle stop. And I don't think it's sexist to want answers to her feelings on God and government, or the internet rumor that her son only joined the army because the other option was jail on a vandalism charge. It's out there and should be addressed. After all, it's as least as relevant as Obama's having attended madrassas. "Sauce for the goose, Saavik." (Leonard "Spock" Nimoy to Kirstie "Lt Saavik" Alley in Star Trek II: The Wrath of Khan)
Subscribe to:
Posts (Atom)
