Obama’s Economic Address At Georgetown University: Heavy on rhetoric light on solutions

THIS IS HOW LIBERTY DIES, WITH THUNDEROUS APPLAUSE!

Obama's Economic Speech

In the end the crux of his speech centered around one word:  government, Government, GOVERNMENT!  Of course he promised hope for the economic future; investment in our education; getting green jobs; free health care  for everyone; and university tuition relief [which was met with thunderous applause at the university]

The constitution is clearly dead.  Due to the actions the congress has recently taken, Obama assumes in his speech that government should be the ultimate authority for the private sector.   Many times he alluded to the totally assumed fact that government should be the ultimate authority when it comes to determining fair wages, bank lending, lines of credit, investments for renewable resources.  At no point did he ever mention that he would be taking a backseat and applauding the private sector for taking initiative, without government intervention.

- On entitlement: the largest expenditure admittedly in the governmental budgeting, proposes entitlement reform supposedly but then he turned around and pushed for universal health care reform, not real entitlement reform.  In fact he was so dastardly that he said he would push for universal socialized health care reform this year.

- On financial planing: Again he totally assumed that government should oversee retirement.  [ I am not making this up ]

- On military spending: He went off on a tangent about a suggestion made about military overspending.   He then went into rhetoric about how we have spent so much in military spending and are yet “no closer to be safer”.  However, he did not mention removing troops from any foreign soil, the single most largest expenditure in the governmental budget.

Obama's Economic Speech

At one point Obama quotes the scripture of the Wise man that build his house on Rock instead of sand, but then equates it to complete government oversight, trouncing the constitution in the meantime.  He said it only to put forth the idea that the government will NEVER AGAIN allow this crisis to happen.   This completely ignores the business cycle.  In fact most economist has state [who are not kenesian whack jobs] that there never was a crisis.  Corporate bailouts of wall street commercial banks is not a proper indicator of a nationwide economic crisis.  Housing ARM mortgage rate adjustments for individuals who were over leveraged is not a proper indicator of nationwide economic crisis.

The final straw was when he was again stepping all over the constitution and taking the lead from congress recent bill passage which specifically taxed wall street executive who took bailout money at 95% on their bonuses, in direct contravention of the constitution…. I mean he says it right in the constitution “thou shall not pass taxes targeting specific people”.  *sigh*  Obama said “we will implement rules that makes sure you get paid the correct amount for work that you have done” …….. since when did the government dictate salaries?  This congress is out of control and this presidency is not far behind it.  Bush laid the foundation for this debacle.

We’re in a crisis alright.   A crisis of the constitution going under and government taking over all of our civil liberties.  It won’t be long now that the gestapo will be goose stepping down the street demanding to see how much you make and how long you worked.  It won’t be long now that you’ll receive your weekly stipend from the government and the rest will be set aside for retirement and non existant social security and medicare.   It won’t be long now that the government will seize your bank and tell them they are paying their sales people too much in commission checks and that they are outselling their nearest competitor.   It won’t be long now that the police will knock on your door and demand to see your guns and ransack your house for contraband.  [they already do it to poor Black people I know, just kidding]

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Obama's State of the Union Address

Shakaama On Obama: The First 90 Days

Obamessiah ... this is getting out of hand.

I’m not defending Obama today.  However, I’m not so naive that I can’t see what is going on.  Today I will review the first 90 days.

It amazes me that people are so shocked that Obama gets into office and all of a sudden it’s politics as usual.  I am neither saddened by his actions so far, nor am i angered by his policies so far.

I have a political science degree.  So I am very aware of everything that is going on.  And, lets discuss this.

The bailouts

Everyone is so upset by the bailouts.  But, for every 2 people upset about the bailouts there is 1 person that is thankful for them.  You have to understand that the millions of Americans that are talking about “let them fail” do not think about the 30,000, 100,000 or million of employees of these companies that would be out of work.  So when these giant companies come to Washington, this is what Obama is looking at.  It is very easy to sit back and armchair quarterback this mess, but it’s a totally different story when a union 2 million strong comes through the door with the company president and they both beg for help.  It would take a nearly omniscient being to wade through this, and not have millions of people hurt.

He is the one

Is that bad to think about those people?  No.  However, I’m pointing out the difficulties involved in this.  We give away millions upon millions of dollars every year to foreign countries.  JUST GIVE IT AWAY! as “aide”.  People complain about that under their breath, but no one speaks up.  All the American lobbyist who go to Washington for those countries, waddle right up to capitol hill for their clients.  Now the shoe is on the other foot.  However, no one is speaking for the people directly.
What are my hopes?

I would hope that Obama would be so charismatic that He didn’t have to be beholden to all these screaming memes around him.  Can you imagine if he had given 10 trillion dollars directly to us?  That would have boosted the economy.  Inflation would have skyrocketed overnight, but at least it would save our economy.  As it stands now, we don’t see the benefit and we still get the inflation.  Sadly.

President Obama Signs bill Alone

Is Obama doing a good or bad job?  He’s the president.  He’s the wizard behind the curtain.  What can he do?
Ok understand this is politics. It’s not as simple as black and white.

He has to answer to people
He has to gain / call / demand political favors
He has moochers
He has blackmailers [no pun intended]

all of these factors go into every single word he speaks, and every single agreement / document he signs.

Talk about a walking target. This guy, unlike GHW and GW, is a newcomer and has to climb the ladder before throwing his weight.

Note i’m not defending Obama or anyone. Just want everyone to realize this is politics.  Yes we Americans want something, but capitol hill is a rat race unlike any other on the planet.   It’s sad, but true. Listen to Peter Schiff and rely on yourselves.  I’m proud of Obama as a black man. I’m sad about and for Obama as a Political scientist. But as a political scientist I understand the wizard behind the curtain.

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What Planet is Warren Buffet On?

The Oracle of Omana Warren Buffet

Recently Warren Buffet has been appearing on the national scene, moreso than before.  He is now the darling of both the press and Washington.

He figured prominently during the bailout talks when he invested $5 billion in Goldman Sachs.  There was a proverbial gasp heard

The Warren Buffet Way Click Here

round the investing nation at the time because everyone knew the financials were in trouble, in general, banking in specific.  But, let’s look at his deal.  At the time the stock seemed like a steal.  In fact, many thought he was taking advantage of the venerable bank.  For Berkshire Hathaway, it bought a US$5 billion equity stake in the dominant player  of the industry, and for its money receives a guaranteed dividend of 10 per cent a year on its perpetual preferred shares.  On top of that Goldman’s gave Berkshire 5 year warrants which give Berkshire the right to buy 43.5 million common shares of Goldman Sachs at a strike price of US$115 at any time before 2013.  However, banking stocks tanked, the crisis deepened, Goldman shares hit a low of US$47.41 on November 21st. After writing an op-ed piece for the New York Times on why he buys America, Mr. Buffet came in for criticism.

However, we are talking about Warren Buffet.  I’m often reminded of the movie “Wall Street” when i think of him.  Anything he purchases will sooner or later gather stragglers, who mistrust their own investment skills.  Goldman shares have doubled since November, closing at $111.93 last Monday.

“The Investment bank has had to change its business model, and reduce the amount of leverage it carries on its balance sheet, but some business areas are positively on fire with flow or client driven trading benefiting from wide spreads being charged and really bringing in the moolah.” [what a shocker, that actually works]

Benjamin Graham Click Here

For every silver lining however there is a cloud.  The GE deal Berkshire got, with those same warrants, don’t look so delicious.  The warrants were for an aggregate cost of $3 billion @ $22.25 per share.  Ge closed at $10.43.  Yeah, not so much.

Warren Buffet Click Here

Which brings me to the next point.  Disciples of the value strategy, like Berkshire Hathaway’s Warren Buffett, focus on the long-term intrinsic value of a company, hoping to buy shares in good companies at reasonable prices.  For financial stocks—some of which haven’t or won’t survive the crisis—it’s nearly impossible to identify the long-term value, whether through profits, cash flow, or other measures.

But what are companies worth these days?  What is the value of a company that accepts TARP money?  Hard isn’t the proper word for what investors are up against when trying to figure this out, impossible is more like it.  And these atrocious bailouts and stimulus packages flowing out of Washington and the Federal Reserve [secretly, psssst hey AIG, come here in the alley i got some more money for ya] are only hurting the situation.  In the mean time Buffet is seen publicly on T.V. talking about he praises Obama for his efforts and he’s optimistic for the long term.  Was that on a Hallmark card Warren?  “Get Well Soon America” from your buddy Warren.

Bull Moves by Peter Schiff Click Here

He’s lost it.  In fact if you go back and look at Berkshire Hathaway’s performance versus the dow over the past 20 years, it has underperformed. GASP!!! Not the sage of Omaha!!!  Oh brother.  Yes he’s lost it.  Hell, he got lucky in the first place.  He never “had” it.  A study was done once, some university economists [this is no joke, this is serious research here] wallpapered their class with the Wall Street Journal [yay free plug WSJ] blind folded several students, gave them darts and had them throw them.  They picked the stocks they landed on and invested.  [don't try this at home kids, these guys have PhDs]  Every single student’s stocks out performed the DOW.  GASP!!! [and i would have gotten away with it if it weren't for you meddling kids]  Apparently they did this study for years.  They concluded that the big performer investors are simply lucky and actually have no “magical skills” to predict good stocks.  [ha what do those snotty nosed professors of economics know]

So Warren [we're on a first name basis] says he’s optimistic for the economy and Obama’s the bee’s knees.  Wellllllllll Peter Schiff, Ron Paul, Lou

Crash Proof by Peter Schiff Click Here

Rockwell, Judge Napolitano, Glen Beck [I had to mention him so people who Google his name read this blog teehee], all say the exact opposite.  And, I agree with them [but who listens to me *sigh* I need a hug].  Can vultures pick up the pieces Warren Buffet leaves behind?  Sure, mull over the carcasses of the straggler investors who follow him blindly.  But, be wary and trust your own learning.  Read Adam Smith.  Be an “Austrian” school of economics disciple.  These Keynesian economist are the darlings of Washington right now, since they chant spend, spend, spend.

Jim Rogers

For the rest of us, invest in gold.  Buy dividend paying stocks OVERSEAS.  Stay away from cash and the dollar.  When this hyper-inflation hits, [oooooh boy don't you dare argue with me there] and it will hit, all of your cash is going to go up in smoke.

How many billionaires…. were removed off the Forbes Billionaire list.

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