I turned on the TV this morning and there is somebody from the Whitehouse discussing how things are under control. I’m wondering, "My god, what happened now." After a few minutes I figured out that they were talking about, Swine Flu. It seems like it is one crisis after another, those guys are running around with their rectal muscles in knots. Do you get the feeling that they are already in panic mode? A Presidential address day after day is getting incredulous let alone ridiculous. I wish someone would tell the guy to let up, he won the election. If you are busy talking to me, you can’t be working solving the nations problems, unless you’re trying to sell me something --- Hmmmm.
Bank of America CEO Ken Lewis is in hot water. Paulson told him to keep quiet about the Merrill Lynch deal if he knew what was good for him. Now the guy is being hung out to dry by the share holders for keeping his mouth shut. He can already claim that he doesn’t have a Porsche to piss in (he sold it to his CFO). This could be a real feeding frenzy for his lawyers; it could take years, before they spend his last nickel.
At first the banks needed a trillion dollars in TARP money and now they want to pay it back? It seems like no one wants to work for Uncle Sam. Maybe if the banks pay back the TARP, then they will get their bonuses and then they can send the Fed’s some jingle mail. There is nothing like telling people how much they can earn a year.
The bank stress test was a success. Everyone passed, what that means is anybody’s guess. They may have been checking for TARP money stashed at home.
The suicide of the CFO at Freddie Mac was kind of like touching off a nuclear bomb in the back yard, the neighbors, or what’s left of them are real quiet.
It appears that the focus of this administration is to fix everything at once, right now. They are going to stop Swine Flu, protect our borders, solve the banking mess, fix health care and lower taxes. This blather sounds more like an answer to a beauty pageant question. Where is the money, to do all of this, coming from? If we take a page from FDR, the fastest way to raise taxes like he did, was to promise Social Security benefits to the worker. This time, it will be free (socialized) health care.
Just for a joke, look at your tax forms that you just filled out and sent in. We paid $6,000 in Federal taxes, $1,500 in state taxes, $6,000 in Social Security taxes (your employer matches it) and $1,500 in Medicare (your employer matches it). Contrary to the way it is stated the employer doesn’t pay into Social Security and Medicare. It’s figured as part of the wage your employer offered to you, so you pay it all. My wife and I, paid $7,500 in Federal and State taxes and we also paid $15,000 in Social Security and Medicare.
So, when Obama says we’re not out of the woods yet, it means they need additional revenue (spending money). Figure they need a half trillion more in funds to run the government each year, the fastest way to get it on the books is as a health insurance benefit (AKA tax). The employee pays half and the employer pays half (yea right). Figure $2,500 for the employee and $2,500 from the employer. At the same time they can drop your income taxes $500 and fulfill an election promise.
So look for a new government benefit called health care. It will be run like our public rest rooms. Our government is desperate for cash. Remember this quote from long ago, “What’s good for General Motors is good for the country?” It kind of has a scary prophecy to it now. I'm reminded of a ditty from 1929, "Mellon pulled the whistle. Hoover rang the bell. Wall Street gave the signal. And the country went to hell." Looks like the ride has started, hold on!