Archive for February, 2009

February 22, 2009

County Commissioner Adkins

Mr. Adkins is very confused as to who is the blame for the economic downturn in Hernando County. He uses the word we when indicating who is the blame and I quote “We are all to blame. At the end of the day, we have to deal with the reality of the boom and the bust.” The last time I looked I did not sell any homes or financed them to unqualified borrowers. Why, are the people of Hernando County the blame for the actions of those realtors and mortgage brokers and mortgage companies who perpetrated this injustice and who profited from these transactions in spite of these peoples ability to buy and pay for these homes?

 

Mr. Adkins states that he has enlisted Mr. Ingoglia to assist in the development of this program because who else can help draft the program and help provide a solution to the problem. I quote Mr. Adkins “If we were having an economic crisis in manufacturing, wouldn’t it be wise to enlist a manufacturing expert?” The above analogy Mr. Adkins uses is incorrect for two reasons, first a manufacturing expert attempts to create efficiencies in manufacturing from an observers perspective not as a participant in the operation. Secondly, a manufacturing expert does not provide the resources necessary to create the product.  Mr. Ingoglia is a home builder with inventory and a Mortgage Banker who provides financing.  Mr. Ingoglia’s stated intentions may be admirable but, if that’s not a conflict of interests what is?

 

Finally, the program as outlined is a flipping scheme for investors to turn a profit after 2 years of ownership. The key word in the plan by Mr. Adkins and Mr. Ingoglia is “Second Home”. Our tax dollars can be put to a better use.

February 15, 2009

Republicans should be angered by their lack of representation

Hernando County Republicans should begin to support their Democratic counterparts. It has become apparent that republican politicians don’t care about you. The Stimulus package was passed by 246 Democrats and ZERO out of 183 Republicans in the Congress, you must be proud of your Rep Ginny Brown Waite who voted against creating jobs locally for the construction industry, or educational support to keep teachers in their jobs, increased unemployment compensation, and a 65% subsidy for Cobra Health Insurance, and the beginning of the long awaited energy independence to support alternative energy sources which are part of this bill. Please don’t confuse Brown Waite’s political rhetoric utilizing the term pork, hopefully not referring to her Republican constituents who will be the recipients of this bills intent and who re- elected her, as pork. In the Senate 57 Democrat’s and 3 wise Republicans, 2 from Maine and one from Pennsylvania rose to this bi-partisan occasion without political agendas for the 2010 election year. There were 36 Senate Republicans who voted against this bill including John McCain. Here is a message to registered Republican’s who are currently receiving unemployment, you should not have a short memory in 2010, remember it was Democrats who were looking out for your interest in 2009.

February 6, 2009

Obama-As the Stew Brews-Financial Potpourri

I have been silent lately for one specific reason. I needed to observe and listen to those making comments concerning our financial crisis at all levels of Government and in Corporate America. What I have observed are many of our elected officials and corporate officials displaying their inability to understand much less provide a logical or realistic plan necessary to solve the problems they themselves have created. They are confused as to which course will eventually help solve the plight of those who are in need of assistance and begin to correct the last eight years of mismanagement in Government and Corporate America.

 

Some of the examples of such confusion are as follows: The Hernando County School Board who previously approved raises across the board recently learned that many administrators would not accept a raise for the new budget year. They are now considering freezing all pay raises to save some teaching positions. Communication with administrators could have prevented this. The Congress passes a Stimulus package with pork built in. Millions of people have lost their jobs and business is as usual in the congress. Republicans are making a grandstand approach to the Stimulus yet not offering any real solutions themselves. It is apparent that to get a Republican to think outside the box after eight years of a semi-induced coma would be asking too much. Democrats are chomping at the bit because of their majority and continue to play politics with pork projects. Wall Street and Corporate American have been told that any firm receiving TARP funds in the future must limit executive Compensation to $500,000.00 a year. What an outrage. How could anyone live on $500,000.00 a year? One comment was if this policy does pass Wall Street and Corporate America will loose these top executives to someone else who will pay them the money. I don’t think so. First, who would want to hire these same people who created this financial catastrophe? Why reward them for creating a currently 7.6 % unemployment rate and possibly the collapse of the capitalistic system as we knew it. They probably feel they had nothing to do with the current collapse. I say let them go to the moon.

 

President Obama is attempting to impress the Congress of both Houses that inaction will continue to add to the deterioration of the basic foundations of our economy which are predominantly in the population’s ability to earn a living and spend, and secondly, in the banking systems which provides a means to transact this business.

 

Over the last 20 years we have built an economy on consumer credit, and the non regulation of Wall Streets creation of inflated corporate balance sheets. Through the use off balance sheet unregulated derivatives contracts and accounting methodologies, falsification of values on trading positions were used to provide big bonuses to most corporate executives. These creative products which have no real value except for the paper they are written on and the ability of both parties to meet their cash flow obligation were used to supposedly adjust the underlying balance sheet assets or liabilities cash flows.  The risk associated with these transactions were never really evaluated and considered as offsets to capital of those holding these positions. If they were analyzed and no one said anything about it, this would constitute a crime and those involved should be prosecuted.  The bottom line is that we finally have a leader who is trying to bring together both parties in congress, by attempting to put aside politics but there is one remaining factor that still eats away at progress, that is the special interest influence. Until those members of the congress shed themselves of these influences our progress to recovery will be at a snails pace.

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