April 15th – Obama tax warning day

There is a reason the investor class tends to be more conservative. We understand the markets. We understand how they work. We follow the ups and downs of the markets, and we learn from our mistakes. We understand financial statements and their interrelationships. We understand policies which grow the economy, and we understand policies that impede economic growth. We are concerned about increasing jobs, growing the economy and keeping taxes low. This enhances our net worth and in the process enhances the wealth of the nation.

Today is April 15^th. Everyone is busy paying their taxes. Taxpayers are fuming while they are writing their tax checks to Uncle Sam. The post offices remain open until midnight while everyone makes their last ditch effort to file their taxes. If you are mad at the current amount you pay on your taxes, you should heed the warning what an Obama presidency will bring. Obama has promised to raise taxes, and the programs the democrats want to enact will cost a lot of money requiring an even higher tax burden imaginable. The government wants more power over you by taking more of your money. This will give them more control over you.

At the North Dakota State Democratic convention, Obama said the following to a crowd of 17,000 as he referred to the Republicans:

"You got a problem with health care: tax cuts. You got problem with education: tax cuts. You got a problem with the economy: tax cuts. Poverty: tax cuts. That's not a policy; it's a dogma, a tired and cynical philosophy,"

In one aspect he is right. It is a dogma. The problem is - it works! It worked under Kennedy. It worked under Reagan and it worked under Bush. It even worked for Mayor Guliani in the state of New York. Why the Democrats don't get this is anyone's guess?

Obama fails to understand the importance of low tax rates. He wants to increase corporate tax rates. That is the easiest way to incentivize corporations to move overseas. I thought Obama was the one who rails against jobs going overseas. Obama wants to increase the dividend and capital gains rate to above 25%. Obama wants to reinstate the estate tax because he erroneously concludes that the estate tax only affect ½ of 1% of the wealthiest individuals. I guess the wealthy are the only ones who die.

Obama says he wants to increase taxes on the wealthiest individuals. Capital gains and dividends affect everyone in every income class especially senior citizens.

According to the heritage foundation:

The wealthiest 1% of taxpayers (about 1.3 million in all) already bears a disproportionate share of the tax burden. In 2005, the latest year for which IRS data is available, they earned 21% of all the adjusted gross income. But they paid a whopping 39.4% of all the income taxes. And the 13 million households who earned more than $104,000 (the wealthiest 10%, who would bear the brunt of higher Social Security payroll taxes) accounted for over 70% of Uncle Sam's take

When you hear democrats talk about taxing the wealthy, hold on to your wallets. Those on the lower economic ladder pay no taxes or low taxes.

Next is the expiration of the Bush tax cuts. John F Cogan, and Glen Hubbard in their piece The Coming Tax Bomb explain it this way.

By historical standards, federal revenues relative to GDP, at 18.8% last year, are high. In the past 25 years, this level was only exceeded during the five years from 1996 to 2000. Still, we stand on the verge of a very large tax increase, one that will occur unless the next Congress and president agree to rescind it. Letting the Bush tax cuts expire will drive the personal income tax burden up by 25% – to its highest point relative to GDP in history.

twice as large as President Lyndon Johnson's surcharge to finance the war in Vietnam and the war on poverty. It would be more than twice the combined personal income tax increases under Presidents George H. W. Bush and Bill Clinton. The increase would push total federal government revenues relative to GDP to 20%.

Why this large tax increase? The tax code changes enacted in 2001 and 2003 are scheduled to expire at the end of 2010. If they do, statutory marginal tax rates will rise across the board; ranging from a 13% increase for the highest income households to a 50% increase in tax rates faced by lower-income households. The marriage penalty will be reimposed and the child credit cut by $500 per child. The long-term capital gains tax rate will rise by one-third (to 20% from 15%) and the top tax rate on dividends will nearly triple (to 39.6% from 15%). The estate tax will roar back from extinction at the same time, with a top rate of 55% and an exempt amount of only $600,000. Finally, the Alternative Minimum Tax will reach far deeper into the middle class, ensnaring 25 million tax filers in its web

Continue Reading

Today John McCain made an economic speech that was one of spending restraint and reducing taxes. This was an important speech in continuing to grow the economy. This is not the class warfare, protectionist, tax and spend policies that both Obama and Hillary have been proposing.

Heed the warning. Barack Obama is the emperor wearing no clothes. An Obama presidency will be a nightmare to all who pay taxes.

 

Stupid quote of the day

Obama explaining the litany of reasons for PA's job losses.

And it's not surprising then they get bitter, they cling to guns or religion or antipathy toward people who aren't like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.

American Idol sings "Shout to the Lord"

I was surprised to hear American Idol singing a favorite Christian hit called "Shout to the Lord". What I didn't realize is the night before on America gives back, the words "My Jesus" were replaced with "My Shephard."

There was a backlash, and the following day on American Idol, the words were changed back to "My Jesus." At least the producers changed it back. This is not public school, they don't have to worry about separation of church and state.

American Idol Wednesday, April 9th America gives back - "My Shepherd"



American Idol Thursday, April 10th changed back to "My Jesus"

Colombia free trade agreement dead

Category: Politics

Do the Democrats care about jobs? No!!! They are beholden to the unions. Pelosis along with Obama, Hillary and the leading Democrats effectively killed the free trade agreement and in the process killing thousands of jobs. The Democrats don't care about the global economy, they do not care about creating jobs. They are protectionists, and their only concern is protecting their political asses beholden to Local 319.

These are the people who are always worried about our relations in the world. The Democrats have effectively strained our relations with Colombia, our ally in Latin America, and neighboor of Venezuela. Do you not think Hugo Chavez will not take advantage of this?

This was just one of a long list of political moves by Pelosi of sticking her middle finger at the middle class she and the other Democrats say they are trying to protect. The wall street journal aptly summarized the agreement this way:

The Democratic Party's protectionist make-over was completed yesterday, when Nancy Pelosi decided to kill the Colombia free trade agreement. Her objections had nothing to do with the evidence and everything to do with politics, but this was an act of particular bad faith. It will damage the economic and security interests of the U.S. while trashing our best ally in Latin America

The Colombia trade pact was signed in 2006 and renegotiated last year to accommodate Democratic demands for tougher labor and environmental standards. Even after more than 250 consultations with Democrats, and further concessions, including promises to spend more on domestic unemployment insurance, the deal remained stalled in Congress. Apparently the problem was that Democrats kept getting their way

. remainder of article
NAFTA is next.

Read other Nancy Pelosi political moves while she sticks her middle finger at the rest of us.

Pelosi visiting Damascus undermining the president article

Pelosi undermining our national security by not extending the wiretaps article

Clinton and Obama know that free trade is good for America yet they fight it every step of the way. Clinton even boasts she disagrees with her husband on it.

McCain has a lot of fodder. I hope he uses it.

Moonbats foiled or let's play "find the torch!"

category: Politics

I usually don't agree much with Mayor Gavin Newsom (that is an understatement) but what he did during the Olympic torch relay was awesome. The Moonbats were dumbfounded and nonplussed.

I was watching the torch relay on television, and the first person with the torch disappeared into a warehouse and wasn't seen for several minutes after that. It was a cat and mouse game. The route was changed so often, the television crew couldn't even find the torch bearer, and of course the Moonbats were left holding their protest signs (probably misspelled.)

Of course, the spectators were also left out in the cold, but that was the price to protect the remaining 79 runners. There were 80, but 1 had dropped out because of security concerns.

The city was expecting hundreds of arrests, but without television crews, what's the point? There were only three arrests.

I would have loved to be there with the map trying to figure out new routes to foil the protesters.

California gone bonkers for global warming.

AB2558 - Hey Los Anglenes are you ready? Now is the time to vote if you believe in this global warming fraud or not? The first of global warming taxes coming to a city near you, yes Los Angeles, that means you!!!!! 9 more cents on gasoline for tax, additional 90 dollars registration for vehicles to fight global warming. It is called the climate change mitigation and adaptation fee coming to a ballot near you.

What the Main Street Press ignores

A true American Hero

Greater love hath no man than this, that a man lay down his life for his friends John 15:13

Petty Officer 2nd Class Michael A. Monsoor sacrificed his life by throwing himself on top of a grenade thrown by Iraqi insurgents in order to save the lives of his fellow Seal comrades. The Seals are indeed true American Heros. President Bush awarded him posthumously "The Medal of Honor." Read my review on the Lone Survivor to see who these Seals are.

THE PRESIDENT:

Good afternoon, and welcome.

The Medal of Honor is America’s highest decoration for military valor. Over the years, many who have received the medal have given their lives in the action that earned it. The name of Petty Officer Michael Anthony Monsoor will now be among them.

In September 2006, Michael laid down his life for his brothers in arms. Today, we remember the life of this faithful Navy SEAL. And on behalf of a grateful nation, we will present Michael Monsoor’s family with the Medal of Honor that he earned.

I welcome the Vice President. Secretary of Defense Gates, thank you for coming. Secretary of Veterans Affairs Peake; Secretary Don Winter of the Navy; Admiral Mike Mullen, Chairman of the Joint Chiefs, and wife, Deborah; General James Conway, Commandant of the Marine Corps, and Annette; Admiral Gary Roughead, Chief of Naval Operations, and wife, Ellen; Senator John McCain; Congressman Ed Royce; Congresswoman Loretta Sanchez.

Previous Medal of Honor recipients, thank you for joining us.

I appreciate Chaplain Burt; Navy SEALS — the finest warriors on the face of the Earth; the Monsoor family, and everybody else.

The Medal of Honor is awarded for an act of such courage that no one could rightly be expected to undertake it. Yet those who knew Michael Monsoor were not surprised when he did. This son of Orange County, California, grew up in a family where helping others was a way of life. Mike’s father was a Marine; his mother a social worker. Together, they raised their four children to understand the meaning of service and sacrifice.

From a very early age, Mike showed the strength of his own convictions. Apparently going to kindergarten wasn’t one of them. Mike had no complaints after the first week of school — until someone broke the news to him that he had to go back the next week. (Laughter.) Many mornings, Mike refused to put on the nice clothes for school. Instead, he insisted on wearing mismatched outfits. Mike’s mother soon discovered there was no stopping the determined young boy from mixing plaids and stripes. And years later, there would be no stopping an even more determined young man from donning a uniform of Navy Blue.

In some ways, Mike was an unlikely candidate for the Navy. He suffered from terrible asthma as a child. On some nights, his coughing fits would land him in the hospital. But Mike would not lie low for long. He strengthened his lungs by racing his siblings in the swimming pool. He worked to wean himself off his inhaler. He built himself into a superb athlete — excelling from sports like football to snowboarding.

After enlisting in the Navy, he began preparing for the ultimate test of physical endurance: SEAL training. Less than a third of those who begin this training become SEALs. But Mike would not be denied a spot. In September 2004, he earned the right to wear the Navy SEAL trident.

The newly minted frogman became a beloved member of the SEAL team community. His teammates liked to laugh about the way his shiny Corvette would leave everybody in the dust. But deep down, they always knew Mike would never leave anybody behind when it counted. He earned their confidence with his attention to detail and quiet work ethic. One of Mike’s officers remembers an instructor once asking after an intense training session, “What’s the deal with the Monsoor guy? He just says, ‘Roger that,’ to everything.”

When Mike deployed with his team to Ramadi in the spring of 2006, he brought that attitude with him. Because he served as both a heavy machine gunner and a communications operator, he often had a double load of equipment — sometimes more than a hundred pounds worth. But under the glare of the hot desert sun, he never lost his cool.

At the time, Ramadi was in the clutches of al Qaeda terrorists and insurgents. Together, the SEALs and the Army 1st Battalion of the 506 Infantry Regiment took the offense against the enemy. The SEALs carried out a broad range of special operations — including providing sniper cover in tough urban conditions, and conducting raids against terrorists and insurgents. Overall, Mike’s platoon came under enemy attack during 75% of their missions. And in most of these engagements, Mike was out front defending his brothers.

In May 2006, Mike and another SEAL ran into the line of fire to save a wounded teammate. With bullets flying all around them, Mike returned fire with one hand while helping pull the injured man to safety with the other. In a dream about the incident months later, the wounded SEAL envisioned Mike coming to the rescue with wings on his shoulders.

On Saint Michael’s Day — September 29, 2006 — Michael Monsoor would make the ultimate sacrifice. Mike and two teammates had taken position on the outcropping of a rooftop when an insurgent grenade bounced off Mike’s chest and landed on the roof. Mike had a clear chance to escape, but he realized that the other two SEALs did not. In that terrible moment, he had two options — to save himself, or to save his friends. For Mike, this was no choice at all. He threw himself onto the grenade, and absorbed the blast with his body. One of the survivors puts it this way: “Mikey looked death in the face that day and said, ‘You cannot take my brothers. I will go in their stead.’”

Perhaps the greatest tribute to Mike’s life is the way different service members all across the world responded to his death. Army soldiers in Ramadi hosted a memorial service for the valiant man who had fought beside them. Iraqi Army scouts — whom Mike helped train — lowered their flag, and sent it to his parents. Nearly every SEAL on the West Coast turned out for Mike’s funeral in California. As the SEALs filed past the casket, they removed their golden tridents from their uniforms, pressed them onto the walls of the coffin. The procession went on nearly half an hour. And when it was all over, the simple wooden coffin had become a gold-plated memorial to a hero who will never be forgotten.

For his valor, Michael Monsoor becomes the fourth Medal of Honor recipient in the war on terror. Like the three men who came before him, Mike left us far too early. But time will not diminish his legacy. We see his legacy in the SEALs whose lives he saved. We see his legacy in the city of Ramadi, which has gone from one of the most dangerous places in Iraq to one of the most safest. We see his legacy in the family that stands before us filled with grief, but also with everlasting pride.

Mr. and Mrs. Monsoor: America owes you a debt that can never be repaid. This nation will always cherish the memory of your son. We will not let his life go in vain. And this nation will always honor the sacrifice he made. May God comfort you. May God bless America.

Come on up. And now George and Sally Monsoor will be here — a Military Aide will read the citation.

The citation is read:

The President of the United States, in the name of the Congress, takes pride in presenting the Medal of Honor, posthumously, to Master At Arms Second Class, Sea, Air and Land, Michael A. Monsoor, United States Navy. For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty while serving as Automatic Weapons Gunner for Naval Special Warfare Task Group Arabian Peninsula, in support of Operation IRAQI FREEDOM on 29 September 2006.

As a member of a combined SEAL and Iraqi Army sniper overwatch element, tasked with providing early warning and stand-off protection from a rooftop in an insurgent-held sector of Ar Ramadi, Iraq, Petty Officer Monsoor distinguished himself by his exceptional bravery in the face of grave danger. In the early morning, insurgents prepared to execute a coordinated attack by reconnoitering the area around the element’s position. Element snipers thwarted the enemy’s initial attempt by eliminating two insurgents. The enemy continued to assault the element, engaging them with a rocket-propelled grenade and small arms fire. As enemy activity increased, Petty Officer Monsoor took position with his machine gun between two teammates on an outcropping of the roof. While the SEALs vigilantly watched for enemy activity, an insurgent threw a hand grenade from an unseen location, which bounced off Petty Officer Monsoor’s chest and landed in front of him. Although only he could have escaped the blast, Petty Officer Monsoor chose instead to protect his teammates. Instantly and without regard for his own safety, he threw himself onto the grenade to absorb the force of the explosion with his body, saving the lives of his two teammates. By his undaunted courage, fighting spirit, and unwavering devotion to duty in the face of certain death, Petty Officer Monsoor gallantly gave his life for his country, thereby reflecting great credit upon himself and upholding the highest traditions of the United States Naval Service.

Read Debbie Schlussel's commentary.

Obama's tax plan and his view of the economy

"I wish I were a victim. Then people would give me things, and government would take care of me" The heritage foundation

Bob Brinker, national financial talk show host, over the weekend discusses Obama's tax plan. John McCain at least admits he does not understand the economy so he appoints Carly Fiorina, former CEO of Hewlitt Packard, and Lew Eisenberg, a former partner at Goldman Sachs to be his advisors. A very good move indeed.

Obama plans to raise taxes in the most reckless way possible. He has no clue about how the economy works or how to create jobs. The sad part is most of those who will be voting for him don't understand either. If they did, why whould they vote for him?


Brinker says from (honeysbobbrinkerbeehivebuzz2.blogspot.com)

Bob Brinker -

Cactus John has been very honest about the economy. He recently stated that he doesn’t know much about the economy. I want to give John McCain all the credit I can give him for being honest with the voters………
.
Over on the other side, the most likely nominee based on the current polls, subject to change, is Barack Obama………Barack Obama stands firmly on raising the marginal tax rate on entrepreneurs to levels not seen since John F. Kennedy………..he’s talking about a potential marginal tax rate of about 60 to 63%........Now I think with a marginal rate of 60 to 63%, I think that a lot of entrepreneurs will take a page out the old Johnny Paycheck Songbook, ‘Take This Job and Shove It, I Don’t Work Here Anymore.’ That line made the late, great Johnny Paycheck famous and it may make Barack Obama famous too, to a lot of entrepreneurs who may take up golf. Because the bottom line is if you are confiscating 60% or more of somebody’s compensation, in a lot of cases, they’re just going to find something else to do with their time.

This is the plan where, right now you have the $102,000 cap on the Social Security tax. This is the 6.2 plus 6.2, which is 12.4 to the entrepreneur and business owner…….everything above that not subject. Well, he has this donut hole idea, where you create maybe a $100,000 up to $200,000………. where you don’t do anything right now………where you don’t make any changes. Then he sinks the battleship when the donut hole is finished. Because above $200,000, the Junior Senator from Illinois, in his naïve notion of how jobs are created and economics works, is talking about lifting the cap on Social Security……..So we have the 39.6 and we have the 12.4, so all of a sudden we’re up to 52%. And the 2.9, the cap is already lifted on Medicare…….now we are up to 55%. How many entrepreneurs do you think live in places that charge high state taxes………now you are up to 62%, depending on the state you choose. A 62% marginal tax rate on entrepreneurs. This is the policy that Barack Obama is talking about

Brinker believes that if Obama doesn’t change his “donut hole” policy, then he is running a “dreadful, dreadful” presidential campaign -- because he will be attacking the “core growth engine for new jobs in America.”

The last of the greats

The last of the great cinematic icon dies at age 84.

I still can remember when "Planet of the Apes" came out in 1968. I went to the local hometown theater in Los Gatos, California. I remember sitting for several moments after the end of the movie just thinking as Heston approached on horseback the Statue of Liberty buried in the sand. This was the height of the cold war. It made you think of what would happen after a nuclear holocaust.

Heston was a conservative married to one wife. He was truly one of the greats.

The Coming Economic Tsunami

This is the one analysis I hope I am wrong.

I am part of the investor class. I have 32% of my portfolio invested in equities. The last time I was invested this low in equities was right before the dot-com crash. In the near future, money market funds will be yielding a scant 1%-2%, but I have decided to take a cautious approach in preserving capital rather than trying to risk principle because I foresee treacherous waters ahead. There are several reasons why I have decided to reduce my exposure in equities. I enumerate these below.

1. 
   The uncertainty in the elections – If the economy continues to deteriorate, the Democrats could take the white house and gain even more control of both the house and the senate. This is the Democrat's election to lose, and so far, they are doing their best to try and lose it. But, this will probably be the highest turnout ever in an election season, and that does not bode well for Republicans. Moreover, even with the schism among the ranks of the Democrats, Democrats still have the fire in the belly to win back the white house. That fire does not exist among much of the Republican base. Should Republicans lose the White House, I predict Obama, not Hillary will win. This is troublesome to say the least. Obama is further left than Hillary if that is possible. Read my post here Obama Revealed. Obama has promised to raise taxes on virtually everyone. Capital gains, dividends, wages for anyone earning more than 75,000 dollars a year are all fair game. His socialized health care is just the tip of the iceberg with Obama. An Obama presidency will mirror that of another inept president, Jimmy Carter. A perusal of Barack Obama's book Dreams From My Father shows how clueless Barack is on the economy. In this current election cycle, Obama wants to increase our taxes at a time our economy is teetering on the brink.
   

   
    

2. The energy crisis and the so-called alternative energies – At the beginning of the Bush presidency, a gallon of gas was under $2.00 a gallon, it is now approaching $4.00 with no end in sight. Can you see gasoline going to 10.00 dollars a gallon? I can. We are held hostage by OPEC and the other oil producing nations, and our government is complicit in our dependence on foreign oil. We refuse to drill in Anwar because of lobbyists like the Sierra club and other environmental groups. The Bakken formation in Western North Dakota may hold up to 400 billion to 500 billion barrels of oil. The arctic refuge, a pin-prick of a waste land, is estimated to have 16 billion barrels of oil. Imagine how many jobs drilling for this oil would create, and imagine how all this would help us become energy independent. Our politicians would rather sit on their hands while they think of new ways to screw the American public.
   

   
    

   The entire world laughs at us because we refuse to drill for our own oil. In the same vein, global warming alarmists led by its high priest Al Gore fly around in private jets screaming we are all going to die. At the same time, they refuse to build any nuclear plants, the cleanest form of nuclear power. Instead we continue to build coal plants the chief contributor of CO2, and the single biggest air polluter in the U.S... There are 600 coal plants in the U.S. and more are continuously being constructed. France is more than 85% run on nuclear power. The two biggest myths of nuclear power are that it is dangerous and it produces copious amounts of nuclear waste we do not know what to do with. Click here for more about the myths on nuclear power.
   

   
    

   Natural gas is currently the most viable source of alternative energy we have, and the infrastructure is already in place, but because of our reticence in building nuclear plants, we use this natural gas to heat our homes, etc. If nuclear power were to become the new source of energy, natural gas could be diverted into alternative fuel for vehicles. It is viable, inexpensive, and clean.
   

   If I haven't convinced you yet that this country is run by morons or if you are still under the illusion the environmental movement is a good thing, consider the energy and security act of 2007. You should have noticed the effects of this act by now if you do any type of grocery shopping. Have you noticed the price of eggs? meat? grain? The stated purpose of this act is to to move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes. This bill was passed by both the house and senate and signed by president Bush and could have been easily something done by our enemies to further impede our economic growth. It mandates the use of biofuels including corn ethanol. Large subsidies of course are given to producers of ethanol. Imagine the corn lobbyists involved here. This has raised the price of grain, beef, poultry, eggs or any other dairy products. Anything that uses corn oil or by-products of corn will increase in price. Ethanol from corn is a hoax.
   

   Corn ethanol contains water, which can cause damage to one's automobile. Ethanol is 30% less efficient than gasoline. Ethanol subsidies are about $1.05 to $1.38 a gallon. There is a 54 cent a gallon tariff on the much more efficient ethanol made from sugar cane produced by Brazil. How is that for protectionism?
   

   The ethanol hoax is the biggest corruption scandal by both the politicians and the ethanol lobbyists in decades. Guess what is coming next? Global warming cap and trade schemes, and any other form of global warming scheme that will increase the cost of living on the promise of removing C02 from the atmosphere, a so-called pollutant responsible for the soon to come demise of the human race. It seems that Al Gore might be capable of causing more economic damage to the world's economy than he could have done as president.
   

   Maybe we as humans should walk around with a muzzle around our face since we breathe out C02. We could all look like trained pit-bulls.
   

   According to the pro-corn-ethanol US Dept. of Agriculture, 2006 ethanol production was enough for 1.5% oil independence, and by 2017, we will max out at 3.7%.
   This energy bill did not even mention nuclear power. Below is an estimated cost of one gallon of corn ethanol.
   

Cost For A Gallon Of Corn Ethanol
Corn Ethanol Futures Market quote for January 2007 Delivery	$2.49
Add cost of transporting, storing and blending corn ethanol	$0.28
Added cost of making gasoline that can be blended with corn ethanol	$0.09
Add cost of subsidies paid to blender	$0.51
Total Direct Costs per Gallon	$3.37
Added cost from waste	$0.40
Added cost from damage to infrastructure and user's engine	$0.06
Total Indirect Costs per Gallon	$0.46
Added cost of lost energy	$1.27
Added cost of food (American family of four)	$1.79
Total Social Costs	$3.06
Total Cost of Corn Ethanol @ 85% Blend	$6.89 source: Ronald R Cook, the cultural economist

Since you need 30% more ethanol than gas, the cost of ethanol would approach nearly ten dollars.

  3.

The subprime crisis – I do not believe we have seen the end of the subprime debacle. In fact we may only be half way through the process. We have seen how the impact of this subprime debacle has started to trickle into other areas of the economy. Democrat pundits have tried to put the blame on Bush, but that is a bit stretching it. The blame should be directed towards greedy buyers who could not afford the payments, (buyers hoped the increase in equity in real estate would bail them out) and greedy lenders who would lend money to any "Dead Man Walking." We were headed on a collision course. Banks would lend money, securitize these loans and off load them to the nearest buyer. One of my strategies in buying stocks is to buy good stocks when everyone is fleeing from them. This is how value funds work. I bought several bank stocks after the initial subprime shock to the markets. I think I was premature. They are all under water and may be for some time. Live and learn. Bear Sterns may only be the tip of the iceberg.

Whitney Tilson, head of Tilson Funds says this:
 

We've been very bearish on housing for a number of years, but after all of the recent terrible news, we had thought that we might be in the 6^th or 7^th inning of this unfolding debacle and perhaps it might be time to start buying some of the stocks that have been obliterated, in anticipation of a bottom and then recovery. But then we were introduced recently to the CEO of Amherst Securities Group L.P. www.asglp.com, Sean Dobson, who has collected extensive data on every mortgage that was securitized in the United States this decade. He was kind enough to share some of his data with us, which shows that we are still in the early innings of the bursting of the housing bubble. Believe it or not, as bad as things have been to date, we have only seen the tip of the iceberg: an enormous wave of defaults, foreclosures and auctions is about the hit the United States. We believe it will get so bad that large-scale federal government intervention is likely

Of course, why stop there? Car delinquencies will be the next frontier. Beyond that there may be additional companies besides Bear Sterns waiting on the sidelines with distressed debt ready to go into forclosure. The Economist warns of a pending Armageddon with the rise of corporate bankruptcies.

 4.

The devaluation of the dollar – We currently face a conundrum. How do we continue to say we are a world power when our dollar is the laughing stock of the world? Our dollar continues to devalue on a daily basis. I have heard pundits say that a devalued dollar is good for the economy because it makes our exports cheaper. If devaluing our dollar were a good thing, then Argentina would be a rich country. The Swiss franc is currently 1 to 1. In the 1970s, it was 4 to 1. The Canadian dollar is now below the U.S. dollar, first time in history. The U.S. dollar is weakening our credibility abroad, and it will ultimately end in our downfall.

The reason for this devaluation is twofold. The current administration is spending us into oblivion. In the first six years of Bush's administration, not a single bill was vetoed. There has never been a president in history that has spent so freely especially during wartime. The Iraq war is only 3%-4% of current GDP. This is small relative to the overall budget and past wars. The Medicare prescription drug plan was a huge expenditure that we could ill-afford. But, it became law anyway. Secondly, the government sees no problem in printing money we cannot back. Lowering interest rates is the equivalent of printing money. Lowering the interest rate is achieved by increasing the money supply, (i.e.: printing money) and selling it cheaply to financial institutions. This is no different than the third world printing money it cannot back. Raising and decreasing rates can be a way to manage the economy, control inflation, etc. but there comes a point of diminishing returns. Our dollar becomes worth less, and countries look elsewhere to invest, and hyperinflation (just like in third world countries) ensues. Where are we headed?

Conclusion – The economy cannot take much more. When Bush first became president, he saved the country from going into recession by lowering taxes. But Bush continued to spend. In addition, his prosecution of the Iraq war remained suspect. Bush is responsible for the loss of both houses of congress, and if Republicans lose the election, he will be responsible for that too. Half of the US population seems to be an electorate bordering on the delusional. This half of the electorate looks to two radical leftists to lead this country out of our economic woes and out of Iraq. The populist policies of both Obama and Hillary are "cut and run" from Iraq, cut defense, raise taxes, and socialize health care all of which will doom this economy and weaken our security even further. John McCain has climbed onto the global warming band wagon too, but at least he will cut taxes. If there is one person who we can believe will control spending, John McCain is the man.

McCain also recognizes we are still at war with Islamic terrorism while Obama wants to play kumbaya.

We are currently in a state of economic paralysis. Osama Bin Laden doesn't need to take down our economy when our politicians, Democrats and Republicans alike seem to be doing a great job by themselves.

We need a president with probity who believes in a free market system, low taxes and the willingness to enact policies that encourage businesses to thrive. We need a president who will stand for building nuclear power plants and drilling for oil instead of any run-of-the-mill politician who succumbs to the environmental and biofuel lobbies.

I hope I am wrong with my analysis, but I see we are led by inept politicians who seem bent on destroying this economy by plunging us into a black hole of green nonsense with unparalleled recklessness. I hope this nation survives, but one has to wonder.