I'm back! Here's my take on the Debt Ceiling crisis

I've been away on vacation for about 10 days so I apologize for not posting during that time, but you know that there are some remote places where there is no internet access. But I'm back now and ready to comment on this debt ceiling crisis.

I think there is now a 50% chance that both Parties in the Congress and the President will not come to an agreement to raise the Debt ceiling by Aug. 2nd. You know how this will affect the country in a negative way so I won't waste your time with those details. It seems obvious to me that President Obama has boxed himself into a corner as have both Republicans and Democrats over this issue. It seems to me the only thing left is for this President to make the unprecedented move to raise the Debt Ceiling using the 14th Amendment of the Constitution as the reason for this. This is what the 14th Amendment says:

""The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned." Many read this to say the President has the authority to guarantee payment since the Treasury of the United States reports to the President and is a Cabinet position.

I think that this President needs to consider the possibility that this may be the only way to guarantee the debt ceiling is raised in time. Politically he most likely would not want to make this choice, but he might just have to because it is clear to even the most casual observer that the House Republicans are demanding things that can't pass the Senate and the Senate are demanding what the House Republicans won't pass. So we have an impasse. This issue has held government hostage unnecessarily and never before in history have we ever come to this point. If you are into the blame game, you can either blame or praise the Tea party Republicans for where we find ourselves today. Those praising their stance on this, I hope you still feel this good when government spending is significantly reduced at a time where spending is required to keep this economy from relapsing into a Great Recession of worst, Unemployment rises, the cost of borrowing increases significantly and causes the housing crisis to get worse. This Republican Party with its Tea party activists will more than own the economic problems and crisis going forward, because in their zeal to ensure President Obama is a one term President, as Sen. Mitch McConnell has repeatedly said. God help us all.

Senate and Congress on Financial reforms: They sold out!

First the headlines and the subscript: New financial rules might not prevent next crisis! The most sweeping changes to financial rules since the Great Depression might not prevent another crisis.

The article was written by AP Business Writers Daniel Wagner and Stevenson Jacobs and posted on Yahoo.com. It lays out in very concise language the problem, the solution and why the solution might not work. For example, remember the Financial reform Bill passed by the Senate and the Congress was supposed to solve Too-big-to-fail institutions. Here's the excerpt on that particular topic:

The problem:
After bad bets on housing and other risky investments caused the collapse of Lehman Brothers, the government pumped billions into the largest banks to keep the system afloat.

The solution: The overhaul would let regulators close banks whose collapse could threaten the system.

Why it might not work:

The Senate bill lets regulators decide whether to protect the creditors of failed banks. Creditors might take a too-rosy view of a banks' finances if they feel they have nothing to lose in a failure. They might still lend to weak banks and raise the cost of eventually closing them down.
The bill does little to prevent big banks from getting bigger, meaning taxpayers might have to intervene again. A Democratic amendment to limit the size of banks was rejected amid opposition from banks such as Goldman Sachs.

The Bill passed by the Senate last week must be reconciled with the House version of th Bill. Interested persons should call their Congressmen and tell them to fix these gaps and close those loopholes!

To read the full article (and it is worth reading), click here.

The last word on the Senate Healthcare Legislation and the affect it has had on theirstock prices

Well the data is now complete with today's action. As you can see from the 2 charts above, the Senate Bill has been a good thing for the Health Insurance companies and their shareholders and not so good for average Americans. I don't know where these two stocks go from here but I will track them until a Final Bill is passed by both the House and Senate and ready for the President's signature. I will not post any more on these two companies or the topic until then. I will return to writing about the stock market, politics and news items of personal interest but for now that's it on this topic.

I want to wish all my readers a Merry Christmas as we are only a few days away. Whatever your faith, it is a time to enjoy loved ones and try to forget about other pressing matters. Remember to be generous to those in need more than just for Christmas as many need help. Local Food Banks are a good place to give as are local Shelters for the homeless.

545 People

This was sent to me this morning via email and I thought so much about the message I had to post it here. Please read it all the way to the end. Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.

545 PEOPLE
By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.

Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?

You and I don't propose a federal budget. The president does.

You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does.

You and I don't write the tax code, Congress does.

You and I don't set fiscal policy, Congress does.

You and I don't control monetary policy, the Federal Reserve Bank does.

One hundred senators, 435 congressmen, one president, and nine Supreme
Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.

I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.

I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a president to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes..

Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party. What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The president can only propose a budget.. He cannot force the Congress to accept it.

The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? Nancy Pelosi. She is the leader of the majority party. She and fellow House members, not the president, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to..

It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility. I can't think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

If the tax code is unfair, it's because they want it unfair.

If the budget is in the red, it's because they want it in the red.

If the Army & Marines are in IRAQ , it's because they want them in IRAQ

If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.

There are no insoluble government problems.

Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like "the economy," "inflation," or "politics" that prevent them from doing what they take an oath to do.

Those 545 people, and they alone, are responsible.

They, and they alone, have the power.

They, and they alone, should be held accountable by the people who are their bosses.

Provided the voters have the gumption to manage their own employees.

We should vote all of them out of office and clean up their mess!

What you do with this article now that you have read it.......... Is up to you.

This might be funny if it weren't so darned true. Be sure to read all the way to the end:

Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.


Tax his work,
Tax his pay,
He works for peanuts
Anyway!
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to
think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him
till
He's good and sore.
Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

Put these words
Upon his tomb,
Taxes drove me
to my doom...'

When he's gone,
Do not relax,
It’s time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75
cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges/IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage
Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility
Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax

STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the
world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.


What in the hell happened? Can you spell 'politicians?' And I still have to 'press 1' for English!?

I hope this goes around THE USA at least 100 times!!! YOU can help it get there!!!

GO AHEAD - - - BE AN AMERICAN!!!
Attack life! It's going to kill you anyway.

"It's Your World, Pay Attention"

Market Outlook for week of Feb. 9th: Up & Down in a tight range until the Stimulus is passed.

Yes, we are doomed to uncertainty for the day today and possibly the next few days as the Stimulus package is in its final stages before the approval of Congress and the signature of the President. When the market closed on Friday we thought we might have a deal Friday night in the Senate and a vote, but we didn't. In anticipation the market rose Friday about 200 points. Now we know there has been posturing again over the weekend and only 3 Republican Senators look like they will sign it. Sen. Susan Collins Republican of Maine looked frustrated with her Republican colleagues on Friday night for not joining her other two colleagues, Sen. Arlan Spector and Sen. Olympia Snow, also of Maine, in joining their bipartisan move and be willing to add their endorsement.

Pre-market reflects this dichotomy, as the Dow is down about 50 points. This evening President Obama is taking his message directly to the American people in hopes of having them flood the Congress and Senate with their voices by emailing or calling them to get support for his bill. I don't think the strategy will work as most of the Republicans are still in Republican strongholds and their seats are safe with their constituents. But President Obama feels he must try and so he will. It should be interesting as the Oval office does not allow him the live audience to give a stirring speech as he would live with 10's of thousands of people in his proximity. He will get the Bill passed so their is no doubt about that. So when all is said and done the market will rise when it does.

I forgot to mention on Friday, but I bought back into MGM, as the price was irresistible at $6.20/share. I expect this stock to go back to $10/share on a strong Bear market rally coming to a neighborhood near you soon. I will not try to buy TZA in these small moves down and try to time the market. It would be foolish to do this during this week. I will keep my TNA and SSO and will not sell them although, depending on any pullback, I would add to the shares I own with additional purchases. I currently have about 6,000 shares of TNA and 3000 shares of SSO.

Market outlook for Feb 5th and 6th: Update 2

Took a good look at the charts for the past 3 weeks for the Dow and the S&P 500. Looks to me we formed that "W" pattern but the second leg of the "W" pattern is lower than the first leg. It suggests to me the markets most likely will go down now the next several days. How low we go depends on the results of the Jobs report tomorrow. If they are bad showing at least as bad as last month, we will drop and possibly retest the previous lows on the Dow of 7,392 and 750 on the S&P 500. If the results are better than expected we will have a short rally up. However the news that will determine where we are going is the Stimulus Bill and how it gets through the Senate. It is how the process is perceived and how the President manages the news about this and how he uses the Bully pulpit. Time will tell, but we should know by a week from now.

My choices are going to be these. First, if the market drops down to retest the lows, I will purchase additional shares of the ETF's TNA and SSO. I will add shares of Ford, symbol F, and also Apple, symbol AAPL, continuing to add shares. I will not try to gain a little on the drop by buying TZA nor SDS as we are at the low of the range for these Indexes and I can't time the next leg up.

UPDATE: 5:30am PST

Jobs data out shows an increase of 41,000 jobs lost last week bringing weekly claims to 626,000 jobs lost. Productivity is up 3.2% and Continuing Claims have now reached 4.78 Million jobs.

UPDATE #2 8:08am PST

I purchased additional shares of Ford at $1.90/share, more shares of TNA for $24.90/share and more shares of Apple at $93.99/share

Term Limits are needed for Senators

Want to stop the bickering in the Senate and the partisan shenanigans? I suggest we have Term Limits for Senators and maybe then we won't have the Filibustering that takes place constantly on almost any mater before the Senate. The Senate has become dysfunctional and a remedy is needed. Some of these feuds between Senators have gone on for a decade and it needs to stop because we are all losers. The Country is not as divided as the Senate is. Senators should be allowed to serve only 2 terms but of course they would never pass that legislation. And we know they would filibuster that Bill for sure.

Top 10 reasons why Hillary can't stop running for President

10. She thinks she can still win.
9. She needs the money she hopes to still raise
8. She still wants all the votes counted and recounted
7. She's gotten use to campaigning
6. She hates being in the Senate
5. She needs the Frequent Flyer miles
4. She likes being talked about, even when it's bad.
3. She's still hoping to be a regular on Saturday Night Live
2. She's trying be a good role model for Chelsea so that at least one parent is

And the number 1 reason she can't stop running for President
1. Bill

Iraq, War & Politics: I'm tired! Are you?

I guess after General Petraeus's report to Congress today along with one from Ambassador Ryan Crocker, I am a bit exhausted. It was 6 plus hours of testimony where the outcome had been decided in advance by both sides of the debate. It wasn't even covered by major networks. I had to watch it on C-Span. Both men were articulate, although not as informative as many wanted. To be honest, we are in this war past the 2008 election, as nothing will take place to get us out. I don't like it, but I am going to live with it.

Why you ask? I'll give you the best reasons I can. First of all, I'm tired of the whole thing. I have been disappointed by this President, VP and entire Administration for the continued subversion of the Constitution. I am tired that only one or two Republican leaders like Sen. Chuck Hagel, Sen. John Warner and Rep. Ron Paul, haven't put their party ahead of the country and the Constitution. And I am tired of the impotent Democrats who removed their saber tooth after getting a majority in the last election and must have checked it, along with their spines, at the door of Congress and the Senate.

I'm tired of trying to convince the public through my writings here to mobilize and get involved while they are too busy with taking their kids to school, shopping at Wal-Mart, working at their jobs relentlessly each week. I'm tired of trying to convince others that they can make a difference because they truly don't care.

So here's where I'm coming out of this. If the Military families, who bear the greatest sacrifice for the consequences of this war, aren't protesting in the streets in significant numbers, and we don't have an Army that is going AWOL in mass, then I say keep at it this war and let's focus instead on Britany Spears or some good entertainment like the new Fall schedule of shows. Then we'll be close to Christmas shopping, which always starts before Thanksgiving. Before you know it we will be enjoying the next summer. Wake me up on November 3rd, 2008 so I can vote on November 4th, 2008. I feel better now, almost rested. But then, there’s tomorrow.

Gonzales gone & Rove gone. Was there a quid pro quo?

The timing of both Karl Rove leaving the White House and now today, Roberto Gonzales announcing his "resignation" is suspicious to me.

I bring forward another suspicious event which happened just 2-3 weeks ago and cause me to wonder what was going on. The evening before the summer recess was to start for Congress, the Senate was embroiled in late night voting on a number of issues. One which passed surprisingly, was the bill that gave the President more, rather than less, authority to expand the wiretapping and surveillance program which Senate Democrats had proclaimed is unConstitutional. Many on the Left have wondered how this could have happened.

My question is this. Was there a Quid Pro Quo with the President and the Administration which was agreed to that if they promised to get rid of Rove and Gonzales, the Democratic controlled Senate would pass the bill?

Senate discusses Pell Grant increase

The Pell Grant program to assist students with financial aid so that they can go to college, is being discussed by Senators. The Bill is sponsored by Sen. Ted Kennedy and others and has the support of most Democrats. However, corporate America and its lobbyists don't want to increase student aid. They prefer to bring immigrants into this country from countries such as India, China and other countries so they can pay cheaper wages. Watch who supports this Bill and who doesn't to see who is on the side of the Middle Class and poorer amongst us. The Bill proposed isn't some huge increase either. They are just trying to get it to the level it was back in the 1970's to help the burden ease somewhat and that so no child is left behind from going to College because they don't have the money.

Court rules again against Bush's detention of U.S. resident

First a summary of the story: AP Writer Zinie Sampson writes, "The Bush administration cannot legally detain a U.S. resident it believes is an al-Qaeda sleeper agent without charging him, a divided federal appeals court ruled Monday. The court said sanctioning the indefinite detention of civilians would have 'disastrous consequences for the constitution — and the country.'

In the 2-1 decision, the 4th U.S. Circuit Court of Appeals panel found that the federal Military Commissions Act doesn't strip Ali al-Marri, a legal U.S. resident, of his constitutional rights to challenge his accusers in court.

It ruled the government must allow al-Marri to be released from military detention.

Al-Marri has been held in solitary confinement in the Navy brig in Charleston, S.C., since June 2003. The Qatar native has been detained since his December 2001 arrest at his home in Peoria, Ill., where he moved with his wife and five children a day before the Sept. 11, 2001, terrorist attacks to study for a master's degree.

'To sanction such presidential authority to order the military to seize and indefinitely detain civilians, even if the President calls them 'enemy combatants,' would have disastrous consequences for the constitution — and the country,' the court panel said."

For the rest of the story click here.

Once again the Court has ruled based upon the Constitution as this President and his minions, defy the Constitution and the Rule of Law. This is from the same President who put his hand on their Bible and swore to God and us. In a sense he has profaned his God and us all by using his name in vain. Go back and read your Bible. What you have done is hypocritical. My guess is you will try to appeal this decision too to the Supreme Court and delay the inevitable, the verdict that you were wrong again. Shame, shame, shame on you, sir.

Now let's make this a fine day by having the Senate pass a vote of no-confidence of former General Counsel and current Attorney General, Alberto Gonzales. Any Senator that doesn't vote in favor of this vote of no-confidence should be replaced, as they are endorsing un-Constitutional actions by this Administration.

U.S. Fatalities in Iraq: An overview

Above is a chart (double click on it for easier viewing) of all US Fatalities in Iraq and Afghanistan from June 2003 to May month to date, 2007. As you can see the chart is not flat nor heading down but instead is going up significantly. Many say you can't tell on a monthly basis whether things are getting better for our military in Iraq. But I think the data is clear from taking a longer view of 4 years. This is the real "surge" not mentioned by President Bush.

I post this today because the Senate is poised to pass the War Funding bill without any date for ending the hostilities and bringing our troops home. The Bill, if passed, will be funding more of our soldiers dying. As we approach Memorial Day weekend, let's have the courage as a country to make the tough decision to bring the troops home. If it were your son or daughter there, wouldn't you want someone to vote to bring them home?

Supporting the troops - Dare we?

I have never been in battle, nor do I wish to be. But many brave young men and women have freely made that choice. They now serve our country in Iraq and Afghanistan and many other places around the world. They don't complain, they serve honorably because they want to defend all of us and keep our country strong. They rightfully allow us the freedom to have the debate about the war, whether we disagree with it being chosen as a course of action by our President, or whether we support the action taken. I have pondered the question as to what does it mean to truly support our troops who are in harms way.

Many worry that the funding of our troops before Congress will hamstring this President and the General's ability to conduct the war. Other's worry that the war is lost and the best thing that can be done is to stand up and refuse the funding, as a means to stopping the war. In the meantime, our troops are there, many on several tours of duty, not able to get home to see their families as was expected because we don't have enough troop replacements. Many argue that the Military is either broken or in serious condition and on its way to be broken. I have a client Executive who had served in the military and was there during the initial invasion of Iraq. He thought he would be home for another year with his wife and very young children, but he received orders he must go back in the next month or two, cutting short his tour home by a year.

There is little talk in the Congress or in the Administration of shared sacrifice. many of us go on our daily routines without even thinking about the war except when we see the news or hear from a neighbor that a relative was wounded, lost a limb or was killed in Iraq or Afghanistan. We hear a lot about the benefits of an all volunteer military and that they wouldn't want it any other way. Well I think it is time to truly consider what it means to support the troops and their families and the country. The time may have come to reconsider instituting a DRAFT or National Service required of all Americans between the ages of 18 and 28 for a minimum period of 2 years and a maximum of 4 years. Many of my age group joined the Peace Corps. They gave the world a better impression of America than any wars could create.

None of the politicians, with the exception of Rep. Charlie Rangle D-NY, has even given the topic serious consideration. Rangel argues that until there is shared sacrifice, we will not be in alignment as to what we should do as a country. He has a good point. There are fewer that 10% of the Congress and Senate members son's and daughters serving in the military. Neither the President, nor the Vice President, ever really served in battle, and yet they took us into war. It seems that Presidents who have not served in battle, are the ones always staring wars. Maybe it's time we have another General run for President. Those Senators currently running for President or who had considered running for President have strong opinions about the war. Senator McCain has called for many more troops in Iraq in the past several years than anyone else. Senator Kerry (D) wants the troops to come home as does Senator Chuck Hagel (R). Both served their country in Vietnam. Maybe there is something to picking a President who at least has served in wartime and in battle. If I remember correctly, even General Wesley Clark, who ran for President in 2004, was against this war.

I think it's time to debate the need for a DRAFT. It isn't as though we have people standing in line to volunteer to join the military. many feel it is political suicide to even discuss the topic. That is why we non-politicians must raise our voices on this topic and that time is now. Adding more troops to the military is truly SUPPORTING THE TROOPS.

This is not the first time I have written on this topic and you can read what I previously wrote by clicking here, but at this time of the "surge", it is worth serious discussion again.

I add this below as it reminds us of the human costs to this war. This was published in January 2007:

"Divorce rates among Army officers dropped a whopping 61 percent last year following a 2004 spike that sent shudders through the service. In 2004, 3,325 Army officers divorced, but that number dropped to 1,292 in 2005, Army officials said. Divorces also were down slightly among enlisted members, from 7,152 in 2004 to 7,075 last year.

Army spokesman Martha Rudd said percentages tell the story more clearly, particularly in the officer corps. In 2004, 6 percent of married officers divorced. In 2005, the figure dropped by more than half: 2.3 percent of married officers divorced.

Army Chaplain (Lt. Col.) Pete Frederich, family ministries officer for the Army Chief of Chaplains, said there's no concrete explanation for why divorce rates climbed in 2004 or why they dropped last year. "There are many, many anecdotal reasons," he said, noting that every marriage and every divorce is different. But most likely, the stress of multiple deployments and an increased operational tempo throughout the Army played their part in the 2004 increase, Frederich acknowledged."

End game for the Democrats in defeating Bush on the Iraq war.

Every news media anchor person is saying that no one knows where this latest confrontation is headed with the President over funding of the war in Iraq, because the Democrats don't have the votes to stop Bush. This is absolutely a false statement. The Democrats don't need 60 votes to override the veto of the president. It is the President that needs the Democrats to approve spending. If the Senate stays in gridlock, the funding will not be approved and the troops will have to come home. Ultimately the President knows this and will either come with hat in hand, looking for some compromise, or will try to blame the Iraq war aftermath on the Democrats. None will believe the Democrats created this mess no matter how Karl Rove tries his best. This was, is and will be Bush's war and his legacy, period! Democrats and courageous Republicans like Hagel need to hang tough. You are doing your best service to your country by bringing the troops home sooner rather than later. You will be saving our soldier's lives.

Senate rolls back authority of Attorney General on U.S. Attorney appointments

Today was a day where the Senate reasserted its authority of its oversight role. It has been 6 plus years where no oversight had been done. The vote today was bipartisan with a 94-2 vote. This is an historic day. There will be more investigations into the political pressure on U.S Attorney's by this Administration but today the Senate spoke with a clear and loud voice.