Gary Secondino: Financial

New Blog and Tools

Sun, 03 Jan 2010 18:36:26 GMT

After more than 10 years of good Blogging use from Radio Userland 8 I've moved on to MarsEdit, NetNewsWire, and WordPress. Follow this link to my next blog, webstir.com/opmlblog/.

AIG and Insanity

Mon, 16 Mar 2009 12:58:14 GMT

AIG-Bailout = Insanity
insanity
noun
1 mental illness, madness, dementia; lunacy, instability; mania, psychosis; informal craziness.
2 it would be insanity to make this loan FOLLY, foolishness, madness, idiocy, stupidity, lunacy, silliness; informal craziness.
3 Def. Repeatedly doing the same action and expecting a different result.
In my view AIG and the lying thieving bastards therein need to be put down, hard. Cooler minds with a larger vocabulary speak to AIG at TPM:

Few exchanges have so captured the disconnect that makes this situation so politically explosive. We're collectively taking our country's future in our hands, spending vast sums of money to keep these companies from suffering the consequences of their own folly and (in many cases) criminality. And in return we're receiving cavalier dictates about pay-outs and bonuses from executives who by any reasonable measure work for us -- dictates we promptly accede to. There's a beggars can't be choosers problem there. And the disconnect is so mighty that it fuels the impression that the whole enterprise is not what it seems, not what we've been told, that in addition to picking up the tab we're being played for fools. --Josh Marshall

Obama Hosts Republican Party of Fiscal Irresponsibility

Tue, 24 Feb 2009 13:19:59 GMT

To the displeasure of many on both sides of aisle, President Obama on Monday will host the so-called Fiscal Responsibility Summit at the White House. While some Democrats question the timing of Obama's expenditure of political capital on Social Security, Medicare and other entitlement reform, obstructionist Republicans are ridiculing the event even as they hype the myth of Republican fiscal discipline. And a myth it surely is. Far from the deficit hawks of Republican legend, the modern Republican Party from Reagan forward devastated the U.S. treasury, leaving mounting debt and hemorrhaging red ink for as far as the eye can see. As the history of the past 30 years shows, those people "willing to point out the problem" are called Republicans. The ones doing something about it are called Democrats.

The Truth About US Unemployment Numbers

Sat, 10 Jan 2009 18:54:01 GMT

The BLS U-3 chart is the official unemployment rate. Shown as a percentage of the civilian labor force. But over the past twenty years the American civilian workforce has undergone significant changes. John Robb outlines the situation. The BLS U-6 chart attempts to include workers who are unemployed and underemployed. Table A-12 Alternative measures of labor under-utilization. The BLS U-6 number for December 2008 is 13.5%.

When Economists Disagree

Mon, 05 Jan 2009 17:36:04 GMT

An average guy (me) tries to get a sense of the correct path to take during this financial crisis by reading economists who disagree. Paul Krugman wants quick massive government spending ($800B) to prevent a US depression (Fighting Off Depression). I think that on the surface it sounds good. I like the idea of shortening the pain, turning things around and getting on with doing good works. But, then I think about the management of that huge sum of money, hmmm. The unintended consequences to the US boggle the mind. I am unconvinced. Then at nakedcapitalism.com a post titled Willem Buiter Calls for Less US Stimulus, Expects Collapse in Price of Dollar Assets. Where Willem Buiter wants much less government spending ($300B) and places the US in context of the world economy. His point being that the US is near it's financial ceiling and thanks to Bush there is little to no trust or good will among the nations of the world toward the US. Therefor the US has to pay "the going rate" for international monetary support which in turn will lead to in 2 to 5 years a worldwide collapse of dollar backed assets, a sharply devalued dollar and corresponding US inflation. Buiter does not address jobs and employment during this time frame as I suspect it does not fit easily into his world view. Then Krugman responds with Faith-based macroeconomics. Krugman asks a good question:

But on the stimulus point: even if you're deeply concerned about America's future solvency, will going for, say, a $300 billion stimulus rather than an $800 billion stimulus do anything significant to help?

Today I read that President-elect Obama is proposing a ($300B) tax cut as part of the stimulus package. This I think is right and important.

The largest piece of tax relief in the new plan would involve cuts for people who pay income taxes or who claim the earned-income credit, a refund designed to lessen the impact of payroll taxes on low- and moderate-income workers. This component would serve as a down payment on the "Making Work Pay" proposal Mr. Obama outlined during his election campaign, giving a credit of $500 per individual or $1,000 per family.

This will get money into the hands of people who can use it. The next part I want to hear about is getting people working at a livable wage and then health care for everyone. At this point I think President-elect Obama has a better vision than the Economists.

Somebody Has To Respond

Sun, 14 Dec 2008 15:10:08 GMT

A good story of response to the big banks that are destroying jobs, and damaging America. I strongly identify with this perspective. The other side of the coin: And then on Dec. 10 there is the despicable "Republican Action Alert". When I first read this Action Alert my first thought was, my god these people are actively working against the best interests of the United States. That's not politics, that's freaking treason! Continuing Back Thom Hartman has a timeline perspective that lays out the source of America's prosperity and the reasons when it began to unravel.

AIG Wants to Add $4 Million to Cash Awards

Wed, 10 Dec 2008 11:46:50 GMT

Hugh Son of bloomberg.net reports that AIG continues to push forward more bonus payments (under another name) to an additional 38 "executives" of as much as $4 million. These "executives" earn salaries between $160,000 and $1million. On Nov. 26, Hugh Son of bloomburg.com reported that AIG will pay 130 managers "cash awards" to stay with the firm, including $3 million to retirement services chief Jay Wintrob. This insider corporate culture of rewarding people for failure has to stop. Does Edward Liddy need to get jail time to think about how WRONG this is? He is responsible for AIG losing $25 BILLION last quarter. I'm certain that this pressure to get the AIG bonus distributed before the next AIG quarterly financial report goes public is because the losses will be astoundingly high. AND REMEMBER, THAT'S OUR MONEY AIG IS SPENDING.

Organizations Cancel Holiday Party

Mon, 01 Dec 2008 18:45:23 GMT

I recently watched a news interview of a small company CEO who canceled the annual $30 thousand holiday party citing the tough times. In a stroke of real response to reality he then donated one-half of the party money to a local charity. BRAVO SIR! UBS has also done similar. Other companies with canceled holiday party BUT NO DONATION TO THE NEEDY Hearst Viacom Marc Jacobs Morgan Stanley The Pentagon

AIG Bonus renamed Retention pay

Sun, 30 Nov 2008 15:57:44 GMT

Just in case you missed it on Nov. 14, Carol Leonnig of washingtonpost.com reported that a two-sentence paragraph buried inside a quarterly financial report filed with the Securities and Exchange Commission revealed AIG's plans to open its deferred compensation bank for bonus payments for more than 6,000 employees to the tune of... $503 million!

There came push back from watchdog New York Attorney General Andrew Cuomo who demanded AIG disclose the company compensation plans. No further news on that request. A forum on politicalgroove.com expressed no-holds-barred thoughts about the AIG bonus.

Then on Nov. 26, Hugh Son of bloomburg.com reported that AIG will still pay 130 managers "cash awards" to stay with the firm, including $3 million to retirement services chief Jay Wintrob.

Personally, I don't care how AIG spins and renames their BONUS, DEFERRED COMPENSATION, RETENTION PAY after a quarterly loss of $25 BILLION and then a restructured US government BAILOUT of $152.5 BILLION it is plainly WRONG every way you look at it. I suggest that to save AIG the company must slash spending to the absolute minimum necessary to conduct business. Pay to keep the doors open, lights on and employees employed. Involve the employees in rebuilding AIG. If some employees leave, good riddance. Hire new people who want to make AIG into a new and better company. This is a history making opportunity to DO THE RIGHT THING.

Resources for this post:

money.cnn.com

blownmortgage.com

boston.com

UPDATE:

Unknown to me when I wrote my post on Nov. 30, Jonathan Tasini on Nov 28, posted a similar post titled AIG Pulls Fast One -- Cash Awards Going To Managers on huffingtonpost.com. Another voice pointing out the hypocrisy of AIG and also the collusion of the big news media in not reporting the story.

Don't Be Fooled

Mon, 17 Nov 2008 14:30:56 GMT

I just received a very official looking domain name extension email for a TLD (.us) that I have nothing to do with. When it's about domain names please read all your email and paper mail carefully. Call a friend or your web hosting provider if you have any questions. Here's an easy tip: I pay $7.95 for a one year domain name rental the email I received wanted $75.95 for one year! Expect to see many more of these scams during a down economy. Be careful.

President Elect Obama's Saturday message

Sat, 15 Nov 2008 15:36:57 GMT

A.I.G. STILL DOESN'T GET IT!

Sun, 19 Oct 2008 14:36:37 GMT

These A.I.G. "executives" have an unrealistic sense of entitlement like W's Mayberry Machiavelli's. They all need to pay back their wild spending and punished for their bad actions. Support Integrity!

Four top AIG executives flipped U.S. taxpayers the bird by spending $86,000 on a partridge hunt at an English country manor as the feds gave their struggling firm billions to stay afloat.

American International Group agreed Thursday to help the New York State attorney general's office recover tens of millions of dollars in improper expenditures, including compensation given to two former top executives.

Learn the TRUTH

Wed, 15 Oct 2008 14:35:07 GMT

John McCain's Health Care Plan: 1. Taxes your employer provided health care benefits as income. 2. Gives a $5000 check to your health insurance company. 3. Leave families on their own to figure out how to cover the balance of the $12,000 family plan premium. 4. Remove consumer protections by letting health insurance companies sell across state lines. 5.Forces 20 million citizens out of employer provided health insurance which makes them vulnerable to not being able to get coverage at all in the individual market because of pre-existing conditions. DOES THAT SOUND GOOD TO YOU?

Moment of Truth

Fri, 10 Oct 2008 14:05:18 GMT

HAH! We haven't had a Moment of Truth from the Bush administration in eight years. Everything is played to make the Repugs look better and to hide their self-enrichment schemes from US citizens. The Bush administration consists of party first political appointees who, in my observations, are at best incompetent at their jobs, at worst, liars, thieves, and when caught felons. Henry Paulson's inept response to the financial crisis is another Katrina moment for the Bush administration. The US financial system is in deflation and the tax payers have bail out the bad players. It appears that this US real estate bubble will now depress the worlds financial markets. Heck of a job Brownie! Bush, Paulson, The Fed, were asleep at the wheel or worse, indifferent to the facts staring them in the face. Same response as Katrina only worse. In fact this crisis did not have to happen at all if the people in the Banking and Finance markets conducted their transaction in a truthful, transparent, and open manner. So there you have deregulation and the ability of markets to manage themselves. Not a moment of truth to be seen anywhere. Personally, I'm pissed off and I want the liars and thieves to be expelled and punished. NY Times columnist Paul Krugman named his column "Moment of Truth" which set me off writing the above paragraphs. PK's column is a good perspective. Click the title to read it.

Deficits

Sat, 09 Aug 2008 14:58:59 GMT

Editorial cartoonist Steve Greenburg targets another BIG republican lie.

The Fed. Out of Answers On Failed U.S. Economy

Sun, 06 Jul 2008 16:53:21 GMT

The U.S. lost 62,000 jobs in June. That's SIX consecutive months of job losses. Just because the government refuses to call it a recession does not mean it is not a recession. I'll say it, WE ARE IN ECONOMIC RECESSION. Now get busy and deal with it!

What you don't see

Thu, 20 Mar 2008 10:18:33 GMT

So how does the credit crisis in the financial markets you? This report by the BBC ( that's right, the British Broadcasting Company) is just the immediate effect. There will be more and worse in 2009. Why isn't this being covered by United States news organizations? Think about it, you know why.

Foreign investors veto Fed rescue

Tue, 18 Mar 2008 13:13:44 GMT

The U.S. financial crisis (A.K.A.; shit) has hit the proverbial fan. And it appears that it is only being reported by news organizations outside the United States. I hate to say it but I predicted the Bush administration was attempting to destroy our democratic government when I heard about the KBR/Halliburton detention centers. I think now we should prepare for the Federal martial law that will be invoked to handle the Financial Riots of 2009.

Your Government at work

Tue, 19 Jun 2007 13:43:31 GMT

Of all the items listed below, the price of only one item has gone way down since Bush took office. Everything else has become much more expensive.

Can you guess what that one thing is?

Dozen eggs
Gallon of Gasoline
Health Care
Gallon of Milk
Ear of Corn
8-ball of Cocaine
College Tuition
Loaf of Bread

When Will Media Deeply Probe Corruption in Iraq Contracts?

Thu, 08 Feb 2007 18:19:58 GMT

Joe Galloway asks the question. My answer is most likely never. If the public can't be outraged over Bush sending $12 Billion american dollars in cash into Iraq with no controls, not even a reciept then I have no idea what will motivate them. Our country is being ruined by liars and thieves in the Bush administration and it seems that the general public is going along for the ride down.

My New Years Message

Tue, 02 Jan 2007 13:44:38 GMT

Tomorrow Never Knows: Lyrics, AMG, Wikipedia Whithin You Without You: Lyrics, AMG, Wikipedia

The USA is Bankrupt

Fri, 15 Dec 2006 15:04:16 GMT

We are Sooo screwed! The number don't lie but Bush does. A report scheduled to be released by the Treasury Department on Friday is expected to show the true deficit in the Bush administration's 2006 federal budget to be an astounding $3.5 trillion in the red, not $248.2 billion as previously reported. The U.S. is bankrupt thanks to the Republicans. The republicans have cooked the books and put our nation 3.5 TRILLION in debt! Read the article at worldnetdaily.com. Detailed information is at John Williams' Shadow Government Statistics The Heritage Fundation has produced a Book of Charts on Federal Revenue and Spending The Budget Analyst lists resources for Federal Agency Money Matters. You can download the pdf report from this page.

Sigh...

Thu, 14 Dec 2006 14:54:22 GMT

Baby Boom, Retiree Bust. One-fourth of boomers may labor an extra two years before retirement. [The Motley Fool]

World of Wealth

Thu, 07 Dec 2006 12:57:28 GMT

Richest 10 per cent of adults accounted for 85 per cent of assets The richest 2 per cent of adults own more than half the world's wealth, according to the most comprehensive study of personal assets. Among the largest economies, Britain boasted the third-highest average wealth of $126,832 (£64,172) per adult, after the United States and Japan, a United Nations development research institute found. Those with assets of $500,000 could consider themselves to be among the richest 1 per cent in the world. Those with net assets of $2,200 per adult were in the top half of the wealth distribution. Although global income was distributed unequally, the spread of wealth was more skewed, according to the study by the World Institute for Development Economics Research of the UN University.

Smart Move

Mon, 04 Dec 2006 17:17:42 GMT

Democrats who want to align their investment dollars with their politics can can now invest with the first "No Republicans" socially-responsible mutual fund, named appropriately The Blue Fund.