Economy, Catastrophes, Bloggers, Hope

My previous post on the exorcism of evil spirits evolved into releasing these thoughts. The past few days news reports tell of a local bank on the verge of bankruptcy. Rumors suggest a different bank which had been presumed to have been rescued by another institution at the beginning of the financial collapse may not be purchased after all. This leaves me wondering what happens to that bank? California Public Employees Retirement System announced extensive losses, but officials hope its broad investments will enable them to weather a long term down turn. Additional news stories speak of California companies and others across the country laying off employees, going out of business and filings for bankruptcy.

Our state of California has been in dire financial straits for years. A previous governor, Gray Davis, had been recalled because he wanted to take some unpopular financial action toward resolving our problems. I was enraged since the recall forced a special election at considerable public expense when our state already had no money to spare. The new governor, Arnold Schwarzenegger, in office for several years now has yet to rectify the deficits but now wants to institute the very financial action he condemned the recalled governor for wanting to take. Neither governors bear all the blame for our state's poor financial status. Our state legislators and residents have certainly contributed to the mess, too.

Do aspects of that scenario sound familiar? Reminds me of a microcosm of our federal government operations. Our government hopes to resolve some financial issues by manipulating our state lottery. Thank heavens we don't have a federal lottery. Maybe we really do and it's what the U.S. Treasury is doing with our 700 billion loan.

Depending on how these issues all work out I may be more adversely affected than by the limited way I have been so far. I expect my story and/or variations is/are already true, or may gradually become more true for many across this country in their own states. Uncertainty reigns supreme for many, not just Wall Street as I listen to the analysts speculate about the market going up and down, with some saying we've hit bottom. They don't know any more about where bottom is now than when they said the bubble would keep expanding.

They chortled over Alan Greenspan's use of language in his periodic vague reports including his pronouncement years ago about financial world issues of "irrational exuberance." His protecting ordinary people during such times and ensuring enforcement of existing financial rules might have helped but were ignored. Am I supposed to feel compensated now because he says words to the effect, "Oops, I made a mistake"? Financial peddlers and advisors to whom so many listen are easily off the hook with similar simple acknowledgments, "Oh, guess I was wrong this time."

I watch with keen interest the actions of the U.S. Treasury Secretary, Henry Paulson, this current administration and legislators. I expect their accountability as to just how much and to whom they are distributing my money in that 700 billion dollar loan. I have a few debts of my own as you might note in earlier posts about major purchases I've had to make this year. So, I don't have a lot of money to line the pockets of those who got us into this mess, or to pad the pockets of any new greedy types.

I listened to the discussion on Charlie Rose's program (Thurs., 11/13)that in the past twenty years the United States has gone from being the largest creditor in the world to the largest debtor in the world. Preparatory to this weekend's Economic Summit, his guest spoke of countries needing to give up certain financial sovereignty to some international monetary organization to provide regulation and govern the world's economy. This interview can be seen at the Charlie Rose Show's website.

Also, since I began writing this the night of 11/13 our local television news has been replete with heart-breaking fire-filled pictures and verbal narrative describing devastating destruction of homes in the Montecito area, an upscale enclave near Santa Barbara, home to many celebrities. Since then additional fires in Southern California have been engulfing more homes in both Los Angeles and Orange Counties. Miraculously, no known lives have been taken. Injuries have been limited to firemen which is not wanted either though none have been reported to be serious. My heart always goes out to those subjected to catastrophe and those hurt trying to help.

Just before sunset tonight as I drove home my eye caught an awesome view in the southwest sky ahead of me. I saw a gigantic large round fiery red sun that appeared exactly like the link. The sun gradually dropped behind gray streaked clouds before sinking out of sight on the horizon. The sight of the sun was an obscenely spectacular sight when I considered the atmospheric conditions responsible for it's coloring. Resident evacuations are continuing as fires threaten thousands of homes in areas a significant distance south and east of where I live, so I'm not remotely in any danger, nor will I be.

Trying to put all these events, circumstances and many more situations in perspective can be overwhelming. Some more directly affect my life than others. We are all connected to these topics in some way as well as to each other. I am reminded to be grateful for what I currently have. I also know I cannot expend emotional energy over what I cannot control, but determining what I can try to change and what not is not always easy. My life issues seem quite trivial when I consider an overall view of all the issues I've mentioned.

I've understood I must find my own way to maintain joy, pleasure and happiness in my daily life. I learned I have choices as to how I perceive and interpret my experiences even during the most difficult of circumstances. Like many people, I personally have relished finding humor in some of the most bleak situations I've encountered in life as a way of remaining in good spirits.

I think many of the bloggers I've encountered have survived life's extreme offerings in much the same way. Perhaps it is this underlying attitude toward living that permeates most of our writing that not only links us, but provides support enabling each of us to view the future with hope.

Financial Meltdown & Trust

Bailout/Rescue Plan Doesn't Seem to be Helping

Is Meaningful Regulation Missing ?

Financial Return On Our Investment Necessary

Is this a bailout of those on Wall St. who created the financial crisis or is it a rescue plan for Main Street America? The answer depends upon personal perspective based on information we each gather, process and interpret to reach an ultimate conclusion independently. The fact there have been so many financial experts offering conflicting views as to what action is best has not clarified the issues. The pundits state the problem, potential solutions, and possible consequences have not been explained well. Even more critical in creating uncertainty among all of us is the experts general agreement the results of implementing this plan are unknown. What is proving to be the case so far is that the plan has not resulted in a desired positive effect on the financial markets in the U.S. and the world.

I've read news reports, and listened to more than a few knowledgeable financial authorities of differing ideological persuasions explain their point of view. I've engaged in thoughtful debate with friends of varying socio-economic status who have been equally anxious to consider all the angles as best we were capable. I am familiar with young people attempting to sustain a new successful several year old business, raise young children, and maintain their home's mortgage. My own family consists of members a next generation older than that couple who are also striving to prepare for their futures. I have personal knowledge of couples entered into their first medicare-elgibilty retirement years whose financial well-being is paramount now that they're no longer in the work force. Especially vulnerable are some other couple friends and singles already in their retirement years whose financial security is most eminent. Will some of the older people need to return to work and might they encounter that unlawful but still covertly practiced age discrimination?

My Representative, Republican David Dreier, coincidentally the night before the second bailout/rescue vote offered me an opportunity to participate in another of his periodic phone conferences. I have yet, however, to be selected to ask questions and speak directly with him. His votes have not often reflected my point of view, but I value hearing his perspective. I sometimes let his office aides know by phone, letter or email my own opinion that I expect him to seriously consider whether contrary to or supportive of his position.

During his exchange with constituents in this phone conference I informally judged 80% to 90% of those who spoke had the same reaction I did of outrage – outrage that we were being asked to underwrite the excesses of Wall Street, the failure of government to regulate the violators of sound business practices and provide carte blanche authority to one government official for dispersing 700 billion dollars. He said he agreed with our concerns, but was convinced there was too much at stake for each of us, our country and the world financial markets, so he "held his nose" and voted for the first bill. Before this conference call I had reached that same conclusion as he had stated when it came to a vote on that bill. My Democratic Senators, Diane Feinstein and Barbara Boxer also voted for the bill.

The other night Warren Buffett appeared on The Charlie Rose Show on PBS-TV making a similar case for a "yes" vote on this revised bill. I do respect Buffett, but I realize he has his own business perspective and agenda though it does seem to be one supportive of Main Street Americans. I did conclude, nevertheless, that everything considered I was not willing to gamble the financial condition of this country against the unknown of what might be our future if this revised bill did not pass. I left a message for Rep. Dreier that I hoped he would vote "yes" on this revised bill, too, as he did. Expectedly my Senators Feinstein and Boxer would again vote their support.

I continue to feel a crisis of trust toward current governing figures but now even far greater than any I've ever felt before in my lifetime toward any other administration. Congressional persons and those occupying the executive branch of our government from both of our major political parties have not only failed to serve the American people well as they pledged to do, but they have betrayed us for too many years.

Whose opinion on how to act do we trust to resolve the financial debacle our country is experiencing? Originally I thought U. S. Treasury Secretary Henry Paulson was that person by default but then I was quite repelled by the original bailout plan he proposed. What a power grab to rival that of what the current executive branch has been doing these past years. The constant admonitions by officials urging fast action to endorse this plan had me questioning whether or not this tactic might just be rushing us to action saying time was of the essence in classic sales closing pressure tactics. I also knew that approach almost always raises a red flag of caution to not get stampeded into what might likely be a questionable investment. Common sense suggested to me that both the original plan and the revised bailout/rescue plan saddling 700 billion dollars of debt risk on to all citizens was tantamount to rape of the American people. Despite all that, right or wrong, I over-rode my hesitations and was willing to accept that revised bailout/rescue plan.

Friday night 10/10/08 I listened to George Soros interviewed extensively on Bill Moyers Journal PBS television program. Soros basically said this rescue plan was already too late to be effective, so I wonder what are we doing? We can't rescind this plan now, but I believe we need to keep up the pressure on our Representatives and Senators to see that items I mentioned in my previous post are adopted in new bills if need be to ensure their implementation. I'm especially concerned that regulations are strengthened, if need be, but definitely strongly enforced in the financial world, including banking. Also, the Securities Exchange Commission purportedly has long fought off regulation to their and our detriment it seems. Specific approval and accountability beyond "oversight" needs to be required for the distribution of my portion of the $700 billion tax dollars and I'm just not sure that will effectively be done.

I want those same 700 billion tax dollars and any new amounts appropriated rewarded with earnings repaid at an interest rate that any such high risk investment would generate. The principle, of course, must also be reimbursed to our U. S. Treasury. Perhaps we should even charge the financial market the same usury rates they've forced us to pay for many years which our state and federal government officials have permitted. All the financial groups who benefit from loans, cash infusions and/or purchases of their bad debts are monetarily, morally and ethically indebted to all U. S. citizens.

The very least the financial markets and banks can do is to dedicate themselves to making our investment in them profitable for all of us.

Taxpayers Loan Financiers -- Update

As I watch what Congress is doing or not doing regarding this rescue plan some of what I wrote before the first vote was ever taken raises even more questions in my mind such as some of the add ons tacked on to this plan. We seem to have a bunch of Neros in Congress fiddling while Rome burns.

Most importantly, a critical vote is scheduled later today, and I, for one, continue to believe this rescue plan needs to be passed in the House. I'm appalled it wasn't passed on the first vote. We should get the names of all those who voted against passage and make a concerted effort to see this is their last term in office.

Fri., 10/03/08 12:13 A.M.

700 Billion Dollar Bailout Loan -- Rescue Plan

(Just added note: with this post Blogger has repeatedly not allowed me to publish which they describe as some sort of HTML code problem. Since I don't even type in any such code nor do I have any links on this post, I don't know what the problem is. If this post publishes it will be a minor miracle as I've been up all night with this, a feat I do not intend to repeat in the future just to publish to my blog.)

A mind-boggling series of political and financial events affecting our country as well as the world have transpired in these United States in the weeks since my last post. Regrettably, ongoing computer Internet connectivity problems I've noted earlier have hampered the ease and frequency of my blogging activity during this time period and continue to do so.

Also, on a personal level an active working younger colleague and friend startlingly learned within this same month-or-less time period she had a serious medical problem. Symptoms she had periodically experienced since the first of the year had repeatedly been undiagnosed. Finally, when the diagnosis was made, but only after frustratingly (to put it mildly,) extenuating circumstances, she was presented with few life choices. At best she could begin treatments maybe extending her life for an unknown short duration, or forego that medical intervention. Ultimately she chose hospice palliative care, but then hastened her own demise by voluntarily restricting food and liquid intake. All of us who cared about her could not quite believe the suddenness of her medical condition, or accept the reality that she left this world eight days later after making that decision and returning home.

During this time I've been able to stay fairly abreast of Presidential campaign activities using the whole media approach by availing myself of print, broadcast and Internet sources as I was able. My stated opinion beginning with my writing here about the Primary election campaign has been that I believe the candidates should restrict their discussion, speeches and debates to their stance on issues such as the economy, social security, health care, foreign affairs and the Iraq/Afghanistan war, though this is not a conclusive or hierarchal list.

I have been aware during this time of some political party introductions of what I consider to be extraneous matters. I believe they should be excluded as major campaign topics. Such topics are often the subject of negative campaign advertisements, and info news exploitation. These include distracting moral issues that should not be election political fodder to be used for fomenting division among voters, nor should they be government dictated legislative mandates.

I strongly believe introduction of emotionally loaded moral issues serve to be distracting. I think such actions are intentionally done to not only seduce a specific voter block group but to foment division within the country – the divide and conquer strategy. Such moral issues are not appropriately the subject of legislation or government dictates and yet some keep trying to make them so. In addition to these issues serving as a tactic to distract voters as was deliberately done in the previous two elections, they prove to be destructive to a forthright, honest, open election process and our democracy. I deliberately do not name these destructive issues here less the mere act of doing so promotes them more and distracts from the point of these thoughts.

Before these weeks we began to experience a deep rumble within the depths of our countries banking system. We became fearful realizing all was not well when a major Federal Reserve takeover of a bank occurred. Some other banks began seeking stronger financial partners. Many banks are still considered potential candidates to become insolvent, thus requiring assistance. We have yet to experience the full impact of this banking and thrift situation. Housing prices decline and decreasing loan availability to purchase a house continues to indicate a weakening market, also.

Simmering much like a volcano's molten lava deep within the much larger U.S. and financial world has been a declaration severe financial difficulties exist that threaten to destabilize International economies everywhere. Suddenly this volcano has exploded with the searing heat of overwhelming debt signaling the virtual collapse of major Wall Street financial firms. Their steaming rocks rain down on frightened investors large and small crushing stock values, financial houses, threatening tidal wave effects within our own nation and around the world.

Our government financial authorities have quickly come to our rescue devising a plan to avert the potential financial disaster but with one caveat. The plan must be adopted immediately, or financially we will all be sucked into a black moneyless hole. This admonition familiarly panders fear as a means to gain our immediate acquiescence to accepting this plan.

Our distress and anxiety levels over this matter are still very high as the days have passed. Still we know the plan has come from an administration known for deliberately, repeatedly lying, while nakedly stealing power and control for the executive branch, upsetting the governing balance our constitution intended to exist between the three branches – Executive, Legislative, Judicial. Why do I mistrust this latest threatening fear tactic?

As I write this, meetings have been in place with efforts to reach an agreement on exactly how this bailout loan for the financial sector will be written. That financial world has long been resistant to the thought they needed regulation and believe they should not be under any sort of meaningful enforceable government control. This same view has long been highly touted by the current administration and Republican Party. The current candidate of that political party seems now to realize financial regulation and enforcement might be needed.

But now their desperate presidential candidate has acted in such an impulsive way as to try and capitalize and politicize this serious financial issue by injecting himself into the process, no doubt to somehow try to somehow take credit for any final plan. Will his President be complicit in trying to facilitate this impression to aid in his election?

I am much more impressed with the thoughtful measured approach of the Democratic Party candidate. I also believe these two candidates should concentrate on debating each other on this and other issues in the remaining five campaign weeks. They'll each have their opportunity to vote on the final agreed upon plan when it comes before the Senate.

Days have passed since that first foreboding warning we must accept the plan first presented within that same day or the next. I don't presume to be a financial expert. Like so many I must depend on minds wiser than mine on this complex financial matter and yet there do seem to be common sense elements about the situation. I hope they keep my best interests in mind and do not squander my tax dollars on the undeserving. I can't avoid thinking that the financial entities wanting my tax money can likely make their admonitions become self-fulfilling prophecies. Would they be so vindictive and greedy for the almighty dollar, they would be willing to sell out our nation, despite what might be in the best interests of our country?

I am pleased some Congresspersons recognize they must stand firm and demand a few basic guarantees the loan plan adopted is not a bailout of these financial entities and individuals who have contributed so much to creating this financial fiasco:

• I don't think it's too much to ask that if I as a taxpayer provide my share of the 700 billion dollars bailout that I should expect to receive financial benefits paid in dollars against this loan as reimbursement for the use of my tax dollars. I think an interest rate similar to what these financiers have charged Main Street American customers such as myself all these years on loans, stock purchases, credit cards, bank fees, etc., would be appropriate.

• I want strict requirements and supervision over the equitable distribution of these loan funds both now and if additional future loan funds are extended.

• I want to see these companies roll back mortgage interest rates and take other specific measures designed to help Main Street Americans avoid foreclosure. The millionaires and billionaires with equally expensive homes do not qualify for this assistance. They likely have plenty of other funds at their disposal, not to mention all the tax rate benefits they've received in recent years the rest of us have not.

• I want to see executives of all the companies who borrow my tax dollars have cap limitations on the monies they receive in salary. Certainly bonuses are not warranted.

• One man alone should not be given the decision-making power of declaring who does and doesn't receive any of this money or even how much. I want language in the loan agreement preventing this blatant stealing of power however well intended.

• I want regulations required and enforced with more than just a statement "oversight" is being provided. I want limitations put in place on how these financial institutions function now and in future years. An overseeing committee convened after the fact of actions taken is not adequate insurance any of these companies will conduct business in an ethical or morally honest manner in the future, given their past history.
  

These items alone are the minimum provisions to which those who want to use my tax monies should have to agree before receiving even one of my hard-earned dollars, or a single one of my pennies either, for that matter.