From Lipstick on A Pig, to The Economy Is Basically Sound - But at Least, We're Back on The Issues

The love affair with the McCain/Palin has diminished with a rather horrible financial week. So, the pundits jumped on McCain for saying "the fundamentals of our economy are strong", on the same day the Dow dropped over 500 points. So exactly, how is McCain truly connecting with the common person, and our lives in general?

---

In the past, emotional appeals really worked - ads targeted regarding anger, fear, pride, and patriotism, were VERY effective at clouding the issues. These tactics also forebode of hidden agendas, the protectionism of the White House, and general non-accountability to the public the president was elected to serve.

And putting Sarah Palin out as a substitute for Hillary Clinton, will tend to go on the back burner when Wall Street decides to crash. However, riding on last weeks pump from the Convention via his VP nominee, McCain keeps that UPBEAT feel in his campaign, positive track for country, but Maverick for Change (trying to pull that limelight off of Barrack's original message). However, its STILL the same track that Bush took in 2004.

Later, when pounced on his phrasing by the opposition, McCain backpedals to "Well, it's obviously true that the workers of America are the fundamentals of our economy", implying he meant the American Workers are making the Economy Sound. Of course, the Obama campaign was all over this, and pundits had jokes in the Media (wonder what Bill Maher will be bringing up this week.)

---

Well, alright then, let me weigh in. We've got financial institutions dropping like flies swatted on the proverbial Wall. And workers, what workers? Last night I spoke with Customer Service for Vonage due to an inquiry, I was speaking to the Philippines. Symantec Support? India, where the Rep confirmed that College Education is free (and our country competes with this how?) And of course, I seriously believe this had to do with WaMu's demise - the all new Customer Support in the Philippines that spoke worse English than Vonage, and didn't understand a THING about American Financial Matters (i.e. IRS, Loans, etc).

And I am pleading with others to take the emotionalism out of whom they chose for President. I'm not looking for who can humiliate who better, and I'm not afraid of Iran dropping a bomb on my living room. Yes, I'm angry at the Current Administration, that with the Majority caused the deterioration of this Country, and when the Dems became the Majority, first took the Most Veto Action that I have ever seen. Unfortunately, I see McCain as continuing the Veto affair with Congress, since the Dems will remain in power (which is WHY such a hard push for the presidency, the Republicans don't want to LOSE EVERYTHING!!)

And yes, I feel I am an American - because there is no United States of the Republicans, there is no United States of the Democrats, there is Simply the United States of America. And finally, I'm no longer asking What I Can Do For My Country (since My Country Isn't Working), I am NOW asking What My Country can do for me. After all, these folks are our elected servants, meant to REPRESENT US. Since we come as a variety, the need to meet Commonly across both aisles, turning down the Partisan Politics (think Drilling for Oil Here), and lay off the friggin Veto Pen, are all at the forefront of mine and others choice for President.

---

Copyright © 2008 (FIH) FutureInsights All Rights Reserved

Please feel free to Talk Back!!

Jump to: Cats Rule - The Sister Site

The Credit Scandal - Lehman goes Poop - WaMu Reassures (not me though)

Let's just say I and WAMU had a falling out over SEVERAL ways they messed with my disability direct deposits, how it was posted, and the way they calculated overdrafts for PURCHASES FOR THE SAME DAY.

Whew, long sentence. I have since moved on to a Local Credit Union. NO overdraft protection, and I can use my Savings Account for Overdraft if need be - something WamU would NEVER LET ME SET UP.

But enough with the ranting. Awhile back - MarketWatch told a story of not if, but when WaMu would fail. Along comes the mortgage crisis (hasn't it been here for awhile anyways?). They were part of it. They benefited from it. And now - they may sink because of it.

Late Thursday the nation's largest savings and loan institution releases 3rd quarter guidance and says it remains sufficiently capitalized as it returns to profitability. (via CNN - the following are excerpts)

After its stock price dropped 46% earlier this week, Washington Mutual sought to reassure the market by saying it has sufficient liquidity and capital to see it through these tough times.

The bank "continues to be confident that it has sufficient liquidity and capital to support its operations while it returns to profitability," it said Thursday in a statement revealing part of its third-quarter performance.

Investors fled WaMu earlier this week, fearing the bank might need a new capital infusion beyond the $7 billion it received from TPG, a private equity firm, in April. The share price dropped from $4.27 at Friday's close to $2.32 at the end of Wednesday, before recovering somewhat Thursday to finish at $2.83.

Retail deposit balances at the end of August stood at $143 billion, essentially unchanged from the end of 2007. The bank has been offering high interest rates in hopes of attracting more money.

Note: the Federal Reserve releases money to banks to enable deposit accounts. This portion is not related to the investment/corporate interest of the bank. Assets important to investors include capitol from Freddie and Fannie holdings, along with other investments held by the bank.


After Thursday's announcement, Fitch Ratings downgraded the company to BBB-, with a negative outlook, citing concerns about its ability to maintain its capital levels. "WaMu's most significant operating constraint in the intermediate term is maintenance of capital levels at sufficiently high levels to be considered well-capitalized by its regulators," the ratings agency said. "Fitch believes WaMu's ability to keep capital ratios at acceptable levels will largely hinge on how well it executes on previously announced expense saves and modest balance sheet reduction initiatives."

WaMu also holds preferred shares in Fannie and Freddie, The preferred stock was valued at $282 million on June 30th, 08.

WaMu announced it had entered into a memorandum of understanding with the Office of Thrift Supervision, which was concerned about its risk management and compliance functions. The bank will now have to provide regulators with a multi-year business plan and forecast for its earnings, asset quality, capital and business unit performance.

BIG NOTE: Now is the time to rethink your priorities folks!!

SAN FRANCISCO (MarketWatch) -- Lehman Brothers is for sale as Wall Street and financial regulators rush to salvage a once-thriving brokerage firm that's threatened by a potential exodus of clients and trading partners.

The Treasury Department and the Federal Reserve are helping with the sale, the Washington Post reported, citing sources familiar with the matter. Nothing is finalized and there are several potential outcomes, but a deal is expected to be unveiled this weekend before Asian markets open Monday morning, the newspaper added.

Lehman shares slumped 42% to $4.22 on concern any sale of the firm will be at a knock-down price similar to the Bear Stearns bailout, which was brokered by the Treasury and the Fed in March. Lehman stock slumped another 18% to $3.45 in after-hours action.

The Treasury Department, Securities and Exchange Commission Chairman Christopher Cox and senior SEC staff are monitoring markets and are in contact regularly with market participants, a spokeswoman and spokesman said. They declined to comment specifically on Lehman. A Federal Reserve Bank of New York spokesman declined to comment.

---

Another failure from the Mortgage Crisis? Or is this because the Stock Market is basically unsound on Principle?

Well, lets take a closer look here - re both WaMu and Lehman. Both are Corporate Entities, relying on profits to return to investors. Now - with a slumping economy, someone's bottom line has to go. But why these folks? Well, it doesn't really matter.

Once upon a time, we had a fixed standard of cash. But with a growing population, that would not be very prosperous (think of the booming 50's here). So the Feds deregulated money (especially during the Nixon era), and walla - we create money to fulfill the needs of deposit accounts.

Over the long term - this leads to excess cash. And, as it so happens, the top 1% have more cash than the bottom 15% of the population. However, to keep that top 1%, they need the rest of the population to FEED them (i.e., consume goods and services in some way). However, the gas prices soared (heaping the profits of otherwise top Corporations into the Oil Companies), and the dollar continued to devalue (since you can print it endlessly - this is bound to happen).

So we can't afford to feed them so much (i.e. the Mortgage Crisis - folks can't afford the homes, prices go down in the market, China and Russia pull their money out - the risk of using foreign countries/companies to hold your debt, and we have a self-perpetuating perfect credit storm).

As this progresses, other investors will pull out of different Markets (snarky comment - Walmart may be the last to go). Hank Paulson may try his best, but CHANGE is coming - I hope they can adjust as much as they wanted the general population to adjust to their investors' needs.

---

---

Copyright © 2008 (FIH) FutureInsights All Rights Reserved

Please feel free to Talk Back!!

Jump to: Cats Rule - The Sister Site