This sums the banking issue well.
“Is anyone even paying attention to these Wing Nut AGW people? With 1/2 of America worried about having to eat cat food during their retirement, global warming is the last thing on their mind.”
From “Jeff” in comments
On a side note has anyone written (say Ross Mckitrick for instance) an expose on the cost of the current “non energy” energy policy?
In the US we refuse to drill, to build processing plants, to develope nuclear, etc; and similar inaction around the world has led to oil being at least $40 to $60 dollars per barrel more then it would be.
At around seven billion barrels to the US, this means a $280 billion drain per year. Our economy was beginning a nose dive before this financial collapse. Added to the oil cost is the rapid rise in natural gas, electric rates, as well as virtually everything else that makes up the GDP. Add carbon cap market costs. Add tax payer funded AGW research. Add the jobs lost because we have other (often unfriendly and unclean) markets develope our energy needs. What has the entire AGW scare cost?? I would love to see a real paper on this, and appreciate in advance any reference to one.
The best plan (after an emergency funding of the capitol markets)is to develope nuclear energy, clean coal, as well as drilling for oil, building refineries, etc. How many people would this employ??
Some of this revenue could then be used to continue developing other non fossil fuel energy.
Any thoughts on this?
Notice that the Dow recovered almost 500 of yesterday’s 777 point loss – in one day.
The “bailout” may have had its 15 minutes of fame, and some companies will just have to face old-fashioned bankruptcy.
We may find out by the end of the week.
My 13:53 comment is actually not a side note. The connection between our econemy going down and the cost of energy will be made. I am looking for SOLUTIONS. Many say it was world war II that really pulled us out of the depression.
I am not however in the mood for WW III. Perhaps instead a war for energy independance.
Anyone as ill-informed as Joel Shore should watch the following
It is unfortunate that even some of the people who were shouting financial warnings from the rooftops have been sucked in to the AGW alamists
But I thought it was Lehmans that started this all off..
You know the bank advised by Al and Jim.
I assumed Bush’s reference to let some go bankrupt was to the AGW carbon trading (scams) schemes that the “investment” bank as advised by Al and Jim so pushed.
No one seems to be mentioning this, so am I wrong,
or will “it” continue to go under the radar,
infront of our eyes..
David Segesta (11:12:48) :
What is your suggestion for ridding ourselves of Algore and the UN?
calasmith (14:06:10)
here is another one:
And:
” How many people out there can remember Hank Paulson’s rants less than a year ago of how this is the strongest economy he has ever seen or how the US economy is the envy of the world? There is something that should be overwhelmingly obvious at this point with his desperate pleas to allow the very same financial powers that got us into this mess to be issued a blank check from the US people that will go directly and only to bailing out his fat cat buddies and their failing firms. ….
….The average citizen is starting to see that all of this bailout money will not nearly benefit themselves even a fraction of what it will benefit the banks with all the bad debts from malinvestments and incompetent business decisions. Make no mistake… the banks will not start lending again with this package; they will be back for another $700 billion in a matter of months at the most. They will say they need even more now because we delayed too long. The bad debt and derivatives mess is far too big to bailout at any amount…..
David (14:02:06) :
“My 13:53 comment is actually not a side note. The connection between our econemy going down and the cost of energy will be made. I am looking for SOLUTIONS. ”
Energy is the next crisis because though there will be attempts to promote drilling for oil and gas on shore, off shore, and Alaska, and building refineries the extreme environmentalists will legally intervene to delay these projects. The best way to avoid these interventions is to declare a national energy emergency (like declaring war) with provisions to prevent these extremists from creating more delays and chaos. These environmental extremists along with their enabling Congressional cohorts are basically economic terrorists as their actions have increased the cost of living substantially as we have seen from the recent cost of fuel that results in an increase in cost of everything that is moved.
read of one representative who got lots of phone calls and emails how to vote:
50/50:
50 % “NO”
50 % “Hell, NO”
Re edcon (15:07:48) :
I agree, as I stated here, “At around seven billion barrels to the US, this means a $280 to $420 billion$ drain per year. Our economy was beginning a nose dive before this financial collapse. Added to the oil cost is the rapid rise in natural gas, electric rates, as well as virtually everything else that makes up the GDP. Add carbon cap market costs. Add tax payer funded AGW research. Add the jobs lost because we have other (often unfriendly and unclean) markets develope our energy needs. What has the entire AGW scare cost?? I would love to see a real paper on this, and appreciate in advance any reference to one.
Add these costs to the world market; What has the AGW scare cost the world???
We do indeed need a war for energy independence. Nothing else can save the global economy.
Anthony; please talk to Ross Mckitrick and see if he would do a paper on this.
Indur Goklany would be a better choice.
Most of the world is spending $40 to $60 per barrel more then is necessary.
Add in the other factors mentioned. In addition consider the social stress that could easily cause wars.
To support what the AGW scare is doing to the world is mindboggling brash considering how truly little science knows about the climate senstivity to a 2X CO2. As Spencer said, ” We had a consesus before we did the research.”
Joel Shore (12:08:28) :
“One could make the argument that many of the people who brought you the anti-government-regulation extremism that is to blame for the current problems in the financial markets are the ones who are arguing against any government intervention in the markets in the case of climate change!”
One could make the argument, but the same ideologic group of people who are anti-government regulation extremism are also for government intervention in the case of climate change, visibly represented by a former vice-president.
“Perhaps the lesson from this is that, although the market system works well when used carefully as a tool, it cannot just be left unregulated as a matter of religious faith in “free markets” as many of the libertarians and conservatives seem to want.”
Perhaps government interference in the mortage business with Congress’ insistence upon “affordable housing,” a euphemism for NINJA (No Income, No Job, No Assets) loans, caused the financial crisis by supporting an anything goes policy at the Fannie and Freddie Congressional piggy-banks.
Please everyone. Stop and get your breath. The financial crisis is not as severe as the media and politicians want you to think. This financial crisis is a lot of hype driven by media hysteria. A lot like global warming. In October 1987, the stock market dropped 35% in one day, and we recovered. Yesterday, the correction was only 7%. Today, the stock market recovered most of yesterday’s lost. Let the free market cleanse the Wall Street greed. If you really want to know what caused this, watch this youtube video.
This problem is just like global warming. Throw government money at anything, and you will get hysteria and panic. Government caused this crisis. Give the market time. Do not jump into a financial bailout. That will only prolong the pain. This is not 1929.
To lessen the pain, Congress only has to increase FDIC from $100,000 to $200,000 and repeal Sarbanes-Oxley (Mark-to-Market Accounting). This is mostly a crisis caused by sub-prime lending and accounting practices.
Jeff Wiita CPA
To lessen the pain, Congress only has to increase FDIC from $100,000 to $200,000 and repeal Sarbanes-Oxley (Mark-to-Market Accounting). This is mostly a crisis caused by sub-prime lending and accounting practices.
How else are you going to value securities like these currently under the microscope? There’s so much subjectivity built into these instruments that it’s a wonder some of the valuation methods ever passed an audit.
SOX will never be repealed. I know we accountants don’t care for the unintended consequences of it, but it’s not going anywhere. Anyone who even proposed it on the Hill would be committing political suicide.
How would repealing “Mark to Market” engender confidence? Would not other banks say, hey wait a minute, under the old rules these assets are only worth this lower amount, and I think that lower amount reflects the real value. Just a question, not a staement.
The reference to cat food reminds me of a Weird Al song.
How would repealing “Mark to Market” engender confidence?
I don’t think it would. End users certainly wouldn’t gain any confidence if they can’t trust the numbers they’re looking at.
As far as I knew, FASB forced this on banks late last year. I never knew SOX had anything to do with it.
“Ed Scott (14:58:59) :
David Segesta (11:12:48) :
What is your suggestion for ridding ourselves of Algore and the UN?”
Most of the American people are asleep at the switch. As long as that is the case no solution is possible. However, given enough time Al Gore and the UN will succeed in shutting down the country. When that happens people may wake up… maybe.
Until then don’t vote for the Rs or the Ds.
“Paul (12:16:11) :
David Segesta Said:
This is from a British paper. Its making it much easier to understand why our founders kicked the Brits out of our country.
Any room for a Brit who’s a little tired of Brittain over there? :)”
That would be fine by me. 🙂
derivatives – There are two sides of a trade. Somebody made a boatload of money.
Lehman Bros. got passed over for bailout – No body wanted Lehman Bros – They were on the wrong side of the market (maybe the carbon market) and didn’t have the capital to make good their gamble.
BTW Their computer model told them they couldn’t LOOSE.
Bailout: Main Street’s message to Wall Street & Washington…
We don’t believe you.
Not a single word you say.
Why?
Do the words “read my lips – no new taxes” ring a bell?
We didn’t believe you when you said – “the credit crisis is well contained.”
We didn’t believe you when you said – “the worst is now behind us.”
We didn’t believe you when you told us the bill would be – “$150 billion.”
We didn’t believe you then and we don’t believe you now.
How dare you trot out a bumbling, stumbling, stuttering, slickster like the former CEO of Goldman Sachs who personally profited to the tune of a $700 Million Dollar personal fortune by sending our jobs to China so some fat cat Wall Street CEO could double the value of his stock options, grab some lobbyist created tax credits, and drop .09 cents to his bottom line.
Not to mention that he, his former firm, and his ilk, were the ones who created and profited from dumping all this toxic Wall Street paper on Main Street in the first place!
Any coincidence that Paulson tried to “bum rush” us into a bailout, right after Goldman Sachs started to collapse?
Bear Stearns – no problem.
Fannie & Freddie – no problem.
Lehman Brothers – no problem.
Merrill Lynch – no problem.
WAMU – no problem.
Goldman? – problem.
We all know there are no coincidences on Wall Street.
And now you want to keep your $40 million dollar apartment in Manhattan, your $10 million dollar vacation home in the Hampton’s, and the windfall profits you sucked out of America, just before you collapse it?
You want us to bail you out of bankruptcy, right before you send us (and America) into it?
You want bankruptcy reform for you – after you locked us into serfdom with the bankruptcy reform act of 2005 – right at the peak of the credit, and housing bubble?
You want a bailout – AFTER you locked us, our children, and America into debtors prison?
Relief, reform, and a bailout for you… and the bill & debtors prison for us?
You must really think we’re a bunch of chumps.
Well guess what Wall Street & Washington, while “this sucka may go down” this time YOU’RE going down with us.
Sincerely,
Main Street