Fiscal responsibility: Where did we go wrong, President Obama or President Bush?

As I was thinking about what to post today, I went back over the years in posts and found one back on January 13, 2007, which I thought might be appropriate to post again today. I wrote this post much before the Sub Prime problem was even a word in our vocabulary. It was about President Bush and the legacy he was going to leave our country. I know many are disappointed with President Obama right now. They see that we still have massive problems which still remain unresolved and new problems which have finally gotten the attention of the American people this past year. But in reflection, I thought this reminder of where we were, back in January 2007, might be a useful comparison to today. Remember, President Barack Obama had not even declared his run for the Presidency until a full month after this original post on Feb. 13, 2007. So here is a reposting of that post and very timely as we have less than 30 days before we vote.

The title is:
Bush's experience taught him only one thing- How to be a failure and disappointment!

The only thing this President seems to have learned from his past is how to create bankruptcy conditions.

1) He bankrupt his Oil company. From the lessons learned he started in his Presidency to create the same for the Nation by the following:

2) His is bankrupting our Country with debt
3) He has bankrupt our Military - both equipment wise and manpower strength
4) He has bankrupt our Freedoms with such actions as eavesdropping on phone conversations of any American without FISA Court approval, signing statements which defy laws he has signed into law and other Unconstitutional acts.
5) He has bankrupt our Trust in oversight with a Republican led Congress that turned their head away at his choices, while they held their noses from the stench.
6) He has bankrupt our Trust in a fair Judicial system, by appointing Justices that will approve of his antics and rewrite history as far as settled law.
7) He has bankrupt the Vision for millions of people around the world who thought of the USA as a place of Hope and replaced that Vision as a country of arrogance and spite for our friends as well as our enemies.
8) He has bankrupt the use of Diplomacy, as no country believes him nor trusts him anymore. We are mostly alone in the world now. Colin Powell's speech will go down in history as how the US distorted truth for the self interest of a few of its leaders; the President and the Vice President.
9) He has bankrupt our willingness to be eager for the words of our President, when he gives a speech or an address, to the Nation. We are weary of his lies and twisted truth to us.
10) He has bankrupt and shattered the idea of our President being a Statesman because of his intellect and pursuit of noble causes to help the poor of the world and in stopping wars and promoting peace in the world.

Need I go on! Shame, shame, shame Mr. President. We need a “Tough Love” intervention called IMPEACHMENT.

I am told that Donald Trump has disclosed he is considering running for President against President Obama in 2012. I told a close friend of mine this morning, we don't need another President who has experience with Personal Bankruptcy again. We need someone like Mayor Bloomberg of NY who has done quite well for himself and has great business acumen in helping to solve our country's problems. Now there is someone I could really get behind and vote for. He proved his metal to me in this mosque controversy near Ground Zero. He is one class act. Mr. Mayor, are you listening?

Market summary for May 27th

Today started positive in all 3 Indexes, the Dow, the Nasdaq and the S&P 500, but they all ended down today, giving up much of yesterdays gains on about the same, to slightly higher volume. The volume is still low considering the 50 day Moving average Volume. The Nasdaq continues to flirt with trying to staying above the 200 day Moving average, as it has stayed above the 200 Day MA for 4 days in a month. For the past 2 days it has managed to stay above it, which currently crosses the axis at 1,700. Today's close was at 1,748. Tech's have led the Market up for the past 3 months, but seem to have staled out at the 200 day MA the past 2 weeks.

The Dow closed today at 8,300. The 200 day MA crosses the axis now at 8,900. While there still is room for the Dow to climb, it too has stalled the past 12 days in a tight range of between 8,200 and 8,600. The Dow's volume has been below the 50 day MA volume 19 out of the past 23 days. We need to have a breakout either above or below 8,200 and 8,600 to see where the next trend is going to take us. To me this and especially the 200 Day MA line are is going to limit the upside move.

The S&P 500 closed today at 893. The 200 day MA crosses the axis at 930. We reached a climax on this Index on May 8th when the Index closed at 930. Since then we have taken a step down. The range here is from 885 to 913. This 200 day MA is dropping at a rate of about 15 points a week. So if we stay exactly where we are now, the 200 day will be pressing on the Index to go lower in 2 weeks. That should take us past the Unemployment numbers for May as well as the GM bankruptcy to determine the impact on the market.

Treasuries rose sharply today as the curve between 2 year and 10 year was the steepest on record on concern surging sales of U.S. debt will overwhelm the Federal Reserve’s efforts to keep borrowing costs low. Ten-year notes have lost 10.3 percent this year, according to Merrill Lynch & Co. indexes, while 30-year bonds have lost 27.5 percent. The unprecedented government borrowing has created concern about a rise in consumer prices. Policy makers have expanded the Fed’s balance sheet to $2.2 trillion while excess reserves at U.S. banks have increased to $896.3 billion.

The VIX closed up and closed at 32.36, while the Put to Call ratio closed at 0.86, up from yesterday's close of 0.72 for the day.

Opponents of Auto Industry bailout are trying to have it both ways and America loses

Opponents of an Auto Industry bailout, who asked for the Banking and Insurance bailout, are scoffing at an Auto Industry bailout, even if preceded by a Bankruptcy filing to reorganize. Just weeks ago, all Americans were in fear that we were going to face a collapse of our system and Free Enterprise. No one who really saw the magnitude of the problem argued with the bailout request by the Republican Bush Administration. Many argued against the bailout by the Republican minority but many signed on after they got some changes within the legislation which was passed in a bipartisan way.

Many still fear the further collapse of the system and see the Auto Industry as a key legacy of the U.S. manufacturing sector. And since it represents about 1 out of every 10 employees in manufacturing. Is it true that the Auto Industry management has failed their workers and the country? Absolutely yes! Has the Congress failed us, especially within the State of Michigan, by going along with the Auto Industry Management in not raising mileage standards? Absolutely yes! Which is why any bailout must have as a requirement that any bailout by preceded by bankruptcy filing, the elimination of the current leadership, a requirement to be a leader in higher gas mileage and alternative energy sources for a Greener environment.

It's time to come together and do what is right for America. We don't have a lot of time to get this right. We voted for a new President and with him, a new direction. The burden of failure here for the Auto Industry will lie with the remaining Republican Congress and Senate, not exclusively with the Auto Industry Management, given their strong opposition to any bailout on any conditions of the Industry.

If it was in America's interest to bail out the Financial system and their Insurance Industry, it makes sense to bailout the Auto Industry conditional on the needed guarantees from that Industry.

To bailout or not to bailout the Auto Industry? UPDATE

I wrote a recent post, Nov. 8th, on the proposed bailout of the Auto Industry (see post below). In summary I had said that while initially I didn't think it was a good idea, when you look into the issue in more detail, a bailout is a good thing as long as it is conditional that first the company had to file for bankruptcy but were required to have all the workers own the business. All non employee shareholders would lose their equity under the new restructuring but the employees would be given some % of the shares of the new company. Their elected Union representatives would be on the Board with an equal vote on where the business was going and had to approve of the plans. What this industry needs is accountability across Labor and Management. They must bury their past grievances and agree to a true partnership. Their Benefits would need to be trimmed significantly in a cost cutting measure, and they would need to equally share the pain. The government would act as the Arbitrator of last resort if issues remained and would have final say over ultimate decisions, as a condition for the billion of dollars given in the bailout.

This morning several experts on the Auto Industry are quoted in this article (worth your time to read fully) on Bloomberg.com that "GM Collapse at $200 Billion Would Exceed Bailout Tab". Quoting further from the article, "A GM collapse would mean 'more aid to specific states like Michigan, Ohio, and Indiana, and more money into unemployment and extended benefits,' Nariman Behravesh, chief economist at IHS Global Insight Inc. in Lexington, Massachusetts, said yesterday in an interview.

Behravesh's projection of $100 billion to $200 billion in costs dwarfs the $25 billion industry bailout plan that will be debated in Congress next week to prop up Detroit-based GM, Ford Motor Co. and Chrysler LLC. The drain on taxpayers from a rescue or a GM failure is a central issue for U.S. lawmakers."

So it seems a no-brainer we must rescue the Auto Industry after any like GM declares bankruptcy or we are cutting our nose to spite our faces. No one wants socialism. We all want Free Enterprise to return. But we are in a world wide crisis of historic and epic proportions which require unusual, once in a lifetime remedies. The article did not include the costs of default Mortgages by Auto industry workers unable t pay for their mortgages. But we have a chance to create an Auto industry that leads us into the future where we do not burn fossil fuels to run our autos. You see even cheap gas is bad, as it does nothing but add to our problem with Global Warming and that has catastrophic consequences for the entire planet.

President-Elect Obama will lead us into becoming the leader of Green technology on the planet with jobs that make people feel good about what they are working on, similar to when people like myself worked on the Apollo Moon program under the Kennedy Administration. It was a glorious time and nothing like that has been offered by any President since. There is no option here. We must save the Auto Industry and an additional $25 Billion is a paltry amount compared to not bailing them out.

To bailout or not to bailout the Auto Industry?

A few words are in order regarding the idea of a rescue of the Auto Industry. On the face of it I am opposed to it because it seems we are rewarding an Industry which never really got it this past 20 years and allowed companies like Toyota to capture market share by building cars Americans really wanted which were more energy efficient. Having said that, when I pull the onion layers back a bit, I realize that this problem is not the workers fault, but its leaderships. They build the cars they are told to build. But if we let the likes of GM fail, we will hurt all the auto workers, and they would add to the unemployment lines, as well as increasing Home Foreclosures, just when we are trying to stabilize markets. So it could create an even worse scenario. So what to do is the real question?

I have a solution that many may find appealing. What if the government did agree to bail out the company but as a condition of the agreement, the company had to file for bankruptcy but were required to have all the workers own the business. Non employee shareholders would lose their equity under the new restructuring but the employees would be given some % of the shares of the new company and their elected Union representatives would be on the Board with an equal vote on where the business was going and had to approve of the plans. What this industry needs is accountability across Labor and Management. They must bury their past grievances and agree to a true partnership. Their Benefits would need to be trimmed significantly in a cost cutting measure, and they would need to equally share the pain. The government would act as the Arbitrator of last resort if issues remained and would have final say over ultimate decisions, as a condition for the billion of dollars given in the bailout.

I am open to ideas about this as I am no expert on how to do this effectively. But I do like to see some accountability by everyone and for shareholders to not be bailed out. Share your views and let's begin a discussion. Thanks. And if you like the idea let's pass it around and get it to our Representatives, Senators and especially Obama. We all need to help and think about this as if we were all auto workers. I invite auto workers to add in the comments and please identify the fact in your comment that you are an auto worker.

And by the way, I have just sent this idea to Barack Obama via his web site for the Transition period. We all need to help solve Americas problems and be individually accountable for doing something to make things a little better.

Bush says "Our entire economy is at risk!"

President Bush spoke to the Nation tonight finally, after 10 days have elapsed since the Bear Sterns bailout. This was not something this President wanted to do. The reason is not obvious but it puts the final cap on his tortured legacy. I wrote this post in January 2007 and is prophetic tonight. Here is what I wrote then:

"Title:Bush's experience taught him only one thing- How to be a failure and disappointment!

The only thing this President seems to have learned from his past is how to create bankruptcy conditions.

1) He bankrupt his Oil company. From those painful experiences, unfortunately he started in his Presidency to create the same conditions for the Nation by the following:
2) He is bankrupting our Country with debt
3) He has bankrupt our Military - both equipment wise and manpower strength
4) He has bankrupt our Freedoms with such actions as eavesdropping on phone conversations of any American without FISA Court approval, signing statements which defy laws he has signed into law and other Unconstitutional acts.
5) He has bankrupt our Trust in oversight with a Republican led Congress that turned their head away at his choices, while they held their noses from the stench.
6) He has bankrupt our Trust in a fair Judicial system, by appointing Justices that will approve of his antics and rewrite history as far as settled law.
7) He has bankrupt the Vision for millions of people around the world who thought of the USA as a place of Hope and replaced that Vision as a country of arrogance and spite for our friends as well as our enemies.
8) He has bankrupt the use of Diplomacy, as no country believes him nor trusts him anymore. We are mostly alone in the world now. Colin Powell's speech will go down in history as how the US distorted truth for the self interest of a few of its leaders; the President and the Vice President.
9) He has bankrupt our willingness to be eager for the words of our President, when he gives a speech or an address to the Nation. We are weary of his lies and twisted truth to us.
10) He has bankrupt and shattered the idea of our President being a Statesman. He does not show intellect nor the pursuit of noble causes to help the poor of the world nor in stopping wars and promoting peace in the world.

Need I go on! Shame, shame, shame Mr. President. We need a “Tough Love” intervention called IMPEACHMENT."

Not much has changed has it. Except since I wrote this we are now in peril of economic failure as a Country. In 45 days we get to replace him and his policies, or not. It depends if people have the courage to vote for and elect Barack Obama

Why are we in this mess with Freddie Mac and Fannie Mae? Deregulation by the Republicans and pushed by Bush!

Given the impending bailout and takeover of Freddie Mac and Fannie Mae, I thought it was appropriate to repost something about President Bush and bankruptcy. Remember it was John McCain's current economic advisor, former Sen. Phil Gramm, who pushed the deregulation bill in the middle of the night when the Republicans were in charge in Congress and there was a threat of shutting own the government unless the bill was passed.

I wrote this first in 2007 and then again in Jan. 2008.

A year has passed since I wrote a post on President Bush that seems to best fit the day today, given the stock market crashes around the world. However, Bush has taken his experience with personal bankruptcy to a whole new level. He now has figured out how to bankrupt the entire world. Here is what I wrote one year ago on January 13th, 2007:

“The only thing this President seems to have learned from his past is how to create bankruptcy conditions.

1) He bankrupt his Oil company. From the lessons learned he started in his Presidency to create the same for the Nation by the following:

2) His is bankrupting our Country with debt

3) He has bankrupt our Military - both equipment wise and manpower strength

4) He has bankrupt our Freedoms with such actions as eavesdropping on phone conversations of any American without FISA Court approval, signing statements which defy laws he has signed into law and other Unconstitutional acts.

5) He has bankrupt our Trust in oversight with a Republican led Congress that turned their head away at his choices, while they held their noses from the stench.

6) He has bankrupt our Trust in a fair Judicial system, by appointing Justices that will approve of his antics and rewrite history as far as settled law.

7) He has bankrupt the Vision for millions of people around the world who thought of the USA as a place of Hope and replaced that Vision as a country of arrogance and spite for our friends as well as our enemies.

8) He has bankrupt the use of Diplomacy, as no country believes him nor trusts him anymore. We are mostly alone in the world now. Colin Powell's speech will go down in history as how the US distorted truth for the self interest of a few of its leaders; the President and the Vice President.

9) He has bankrupt our willingness to be eager for the words of our President, when he gives a speech or an address, to the Nation. We are weary of his lies and twisted truth to us.

10) He has bankrupt and shattered the idea of our President being a Statesman because of his intellect and pursuit of noble causes to help the poor of the world and in stopping wars and promoting peace in the world.

Today, January 22, 2008, I add this. He has now started the biggest stock market crash in world history in his quest to bankrupt every living thing and government.

Well, unfortunately, I was right. Have you seen the latest stock market numbers? Wait till the full effects of the bailout of Freddie Mac and Fannie Mae over the months of September and October.

Need I go on about Bush? Shame, shame, shame Mr. President. We should have had the courage as a country for a “Tough Love” intervention called IMPEACHMENT, but no one had the courage. Still want to vote for Republicans this time? I think not!

Bush's incompetence and arrogance the root cause of our economic problems

Given the collapse of Bear Stearns over the weekend, the concerns of Lehman doing the same thing, the Federal Reserve bailing out Bear Stearns and the Amercian people holding the financial bag on this debt, I thought I would resurrect a post I made in January. This problem has been brought to you by President Bush and Vice President Cheney and an Administration of incompetence. Here's what I wrote in January and remember Bush has an MBA supposedly.

The only thing this President seems to have learned from his past is how to create bankruptcy conditions.

1) He bankrupt his Oil company. From the lessons learned he started in his Presidency to create the same for the Nation by the following:

2) His is bankrupting our Country with debt
3) He has bankrupt our Military - both equipment wise and manpower strength
4) He has bankrupt our Freedoms with such actions as eavesdropping on phone conversations of any American without FISA Court approval, signing statements which defy laws he has signed into law and other Unconstitutional acts.
5) He has bankrupt our Trust in oversight with a Republican led Congress that turned their head away at his choices, while they held their noses from the stench.
6) He has bankrupt our Trust in a fair Judicial system, by appointing Justices that will approve of his antics and rewrite history as far as settled law.
7) He has bankrupt the Vision for millions of people around the world who thought of the USA as a place of Hope and replaced that Vision as a country of arrogance and spite for our friends as well as our enemies.
8) He has bankrupt the use of Diplomacy, as no country believes him nor trusts him anymore. We are mostly alone in the world now. Colin Powell's speech will go down in history as how the US distorted truth for the self interest of a few of its leaders; the President and the Vice President.
9) He has bankrupt our willingness to be eager for the words of our President, when he gives a speech or an address, to the Nation. We are weary of his lies and twisted truth to us.
10) He has bankrupt and shattered the idea of our President being a Statesman because of his lack of intellect and lack of pursuit of noble causes to help the poor of the world and in stopping wars and promoting peace in the world. Instead he promotes wars and helsp Corporations.

Need I go on! Shame, shame, shame Mr. President. We need a “Tough Love” intervention called IMPEACHMENT.

And now we are close to the Federal Reserve being bankrupt, as half of their $800 Billion in reserves is now committed to bailing out these failures.

Bush and bankruptcy are a familiar couple. Now the world knows!

A year has passed since I wrote a post on President Bush that seems to best fit the day today, given the stock market crashes around the world. However, Bush has taken his experience with personal bankruptcy to a whole new level. He now has figured out how to bankrupt the entire world. Here is what I wrote one year ago on January 13th, 2007:

“The only thing this President seems to have learned from his past is how to create bankruptcy conditions.

1) He bankrupt his Oil company. From the lessons learned he started in his Presidency to create the same for the Nation by the following:

2) His is bankrupting our Country with debt
3) He has bankrupt our Military - both equipment wise and manpower strength
4) He has bankrupt our Freedoms with such actions as eavesdropping on phone conversations of any American without FISA Court approval, signing statements which defy laws he has signed into law and other Unconstitutional acts.
5) He has bankrupt our Trust in oversight with a Republican led Congress that turned their head away at his choices, while they held their noses from the stench.
6) He has bankrupt our Trust in a fair Judicial system, by appointing Justices that will approve of his antics and rewrite history as far as settled law.
7) He has bankrupt the Vision for millions of people around the world who thought of the USA as a place of Hope and replaced that Vision as a country of arrogance and spite for our friends as well as our enemies.
8) He has bankrupt the use of Diplomacy, as no country believes him nor trusts him anymore. We are mostly alone in the world now. Colin Powell's speech will go down in history as how the US distorted truth for the self interest of a few of its leaders; the President and the Vice President.
9) He has bankrupt our willingness to be eager for the words of our President, when he gives a speech or an address, to the Nation. We are weary of his lies and twisted truth to us.
10) He has bankrupt and shattered the idea of our President being a Statesman because of his intellect and pursuit of noble causes to help the poor of the world and in stopping wars and promoting peace in the world.”

Today, January 22, 2008, I add this. He has now started the biggest stock market crash in world history in his quest to bankrupt every living thing and government.

Need I go on! Shame, shame, shame Mr. President. We need a “Tough Love” intervention called IMPEACHMENT

Bush's experience taught him only one thing- How to be a failure and disappointment!

The only thing this President seems to have learned from his past is how to create bankruptcy conditions.

1) He bankrupt his Oil company. From the lessons learned he started in his Presidency to create the same for the Nation by the following:

2) His is bankrupting our Country with debt
3) He has bankrupt our Military - both equipment wise and manpower strength
4) He has bankrupt our Freedoms with such actions as eavesdropping on phone conversations of any American without FISA Court approval, signing statements which defy laws he has signed into law and other Unconstitutional acts.
5) He has bankrupt our Trust in oversight with a Republican led Congress that turned their head away at his choices, while they held their noses from the stench.
6) He has bankrupt our Trust in a fair Judicial system, by appointing Justices that will approve of his antics and rewrite history as far as settled law.
7) He has bankrupt the Vision for millions of people around the world who thought of the USA as a place of Hope and replaced that Vision as a country of arrogance and spite for our friends as well as our enemies.
8) He has bankrupt the use of Diplomacy, as no country believes him nor trusts him anymore. We are mostly alone in the world now. Colin Powell's speech will go down in history as how the US distorted truth for the self interest of a few of its leaders; the President and the Vice President.
9) He has bankrupt our willingness to be eager for the words of our President, when he gives a speech or an address, to the Nation. We are weary of his lies and twisted truth to us.
10) He has bankrupt and shattered the idea of our President being a Statesman because of his intellect and pursuit of noble causes to help the poor of the world and in stopping wars and promoting peace in the world.

Need I go on! Shame, shame, shame Mr. President. We need a “Tough Love” intervention called IMPEACHMENT.