Archive for November, 2010

“The Next Looming Bank Crisis: De-leveraging!”

This new article has been posted on The Huffington Post today, Wednesday, December 1st. Click on the link to see the article on The Huffington Post.

Big Banks have another major crisis growing beneath the surface!

Banks are again on the verge of a damaging financial crisis and will plead for help from taxpayers despite it being the product of their own greed. Financial institutions are horrible corporate citizens.

As if the Big Banks, after being saved by the taxpayers, The Federal Reserve, and FASB (Financial Accounting Standards Board), didn’t have enough to worry about with the ongoing foreclosure nightmare possibly costing over a hundred billion dollars, another problem is brewing that is not being talked about.

De-leveraging!

Huge banks still have huge problems masked by TARP, The Fed’s quantitative easing, FASB’s change of Mark to Market accounting, and changes as a result of FinReg passed by Congress.

Bank’s problems include: questionable foreclosure procedures, defaulting mortgages, the repurchase of toxic assets, investors demanding recourse for fraudulent securitized instruments, a potential change in FASB rules forcing aggressive markdowns, and exposure to the European crisis.

Each element, on its own, could change the landscape of banking and plunge us into another financial crisis. The convergence of any two, especially with the uncertainty of the foreclosure mess, could destroy the banking system.

Is the banking system really that fragile?

Read the rest of this entry »

Tags: , , , , , , , , , , ,
Posted in Banking, Economy, Finance, HuffPost Articles, Predictions, Too Big to Bail | No Comments »

“The Selfish Rich of the 21st Century”

This article was posted on The Huffington Post on Friday the 26th. click on link to read it on Huffington Post!

*********************

Debate over the Bush Tax Cuts has centered on the Wealthiest Americans!

As the far left and the far right wage battle over the sunsetting Bush Tax Cuts the middle-class is held hostage.

Despite the failure of 10 years of low taxes to produce jobs and stimulate the economy Republicans insist that continued tax breaks for the rich will tinkle down.

The middle-class continues to struggle under the weight of 12 years of Republican policies; policies that transferred wealth from ninety-eight percent (98%) of the American population—hard-working Americans—to the two percent (2%) wealthiest Americans.

In the last 30 years incomes for the wealthiest one percent of Americans rose 281% while middle-class wages have remained flat. Yet Republicans argue that letting the tax breaks for wealthy Americans expire would dramatically slow the economy and prevent job creation.

What the argument should highlight is the dispassionate position of the American rich and their UnPatriotic silence.

Read the rest of this entry »

Tags: , , , , , , , , ,
Posted in Economy, HuffPost Articles, Politics, Taxes | No Comments »

“Skewering the Pig”

This morning The Huffington Post included my newest article under the politics section. Click on the link to go to the posted article and comment on it.

*******************************

Lawmakers are locked in a battle over Pork futures.

Pet projects of lawmakers’ in both halls of Congress, lovingly called pork, have long been derided as government waste. That is only partially true. There’s more to pork than meets the eye.

Over the years more and more earmarks have crept into spending bills and opponents of the practice scream each year about the caustic nature of the wasteful practice.

Tea Party electees have been vocal about eliminating or banning pork as a way to reduce the budget deficit. They’ve embarrassed the Republican establishment into joining them in the ban. In a recent statement, Mitch McConnell, who was against the ban, acquiesced and joined fellow Republicans in supporting a ban on all pork.

Republican leaders, especially those gifted at bringing home the bacon, were reluctant to agree to such a ban. But, unable to properly explain the benefit of earmarks, they bowed to the vociferous Tea Party members.

Earmarks have grown, under Mitch McConnell and the Republicans, from around 700 when they came into office in 1994, to more than 8,000 in 2005. They’ve climbed to $15.9 billion in the last fiscal year.

The truth of the matter is, not all pork is bad.

Read the rest of this entry »

Tags: , , , , , ,
Posted in HuffPost Articles, Politics, Tea Party | No Comments »

“The Fools On the Hill”

The newest article from The Cutting Edge is posted on The Huffington Post was posted on Monday, November 22nd. Click on the link to view the article on Huff Post.

*******************

Many in The House of Representatives are not only fools, but hypocrits!

There are some things that must be passed during this Lame Duck Session and one of them is extending unemployment benefits for the millions of people who can’t find jobs. Many have been out of work for 99 weeks.

The House missed extending unemployment benefits by one vote on Thursday, November 18. Just one compassionate vote would have allowed Tier V benefits to those whose insurance runs out on November 30th.

The number of Americans collecting benefits for six months or more continues at record levels. And with unemployment steady at 9.6% there are five or six people seeking employment for every job that becomes available. This makes it almost impossible to find a job in the current market.

Despite these unprecedented employment dynamics the House was unable to continue assistance for hundreds of thousands frustrated job hunters in this country.

Who would be callous enough to cut-off benefits for over a million families before the holidays?

Read the rest of this entry »

Tags: , , , , , , , , , , , ,
Posted in Call to Action, Congress, Economy, Jobs | 1 Comment »

“Banking Crisis Persists in Georgia”

Two more Georgian banks are closed by the FDIC on Friday.

Georgia lost two more banks last Friday bringing their three year total to 48 during the crisis. Things are not so peachy for the Georgia banking community which has lost 18 banks this year alone.

The third bank lost on Friday was in Arizona, only the fourth bank they’ve lost this year and only the ninth in the three years. The Arizona closure was the 146th bank lost this year.

Both Georgia banks are being acquired by Ameris Bank in Moultrie, Georgia and will cost the DIF approximately $160 million. Adding the cost of the Arizona bank the Fund will take a $200 million hit this weekend. An interesting element of the Georgia take-overs is the $560 million loss-share agreement between the FDIC and Ameris Bank.

Bank foreclosures have been relatively mild for the last four months but with 829 banks on the ‘problem list’ it feels like a storm is brewing.

Is this just the calm before the storm?

Tags: , , , , , ,
Posted in FDIC Foreclosures | No Comments »

“Making All the Wrong Moves!”

Posted on The Huffington Post on Monday morning under politics. Click on the link to go to the article on The Huff Post.

Hoops should have taught the President about making the right moves!

When Barack Obama was elected our 44th President it was a great day for America.

He was educated, articulate, analytical, and compassionate—all qualities absent in our previous president. He appeared to be the embodiment of Lincoln, Kennedy, and both Roosevelts. Someone who understood our challenges and had plans to fix them. Someone who would make all the right moves.

But appearances can be deceiving. He still possesses those qualities, but something’s missing.

Read the rest of this entry »

Tags: , , , , , , , , , , , ,
Posted in HuffPost Articles, Obama, Politics | No Comments »

“George Bush’s Memnoir: An American Tragedy!”

This article has been posted on The Huffington Post this morning. Click on the link to go right to the posted article.

*****************************

It was a dark time in our history. A black pall that befell our great nation.

George Bush fooled me once, shame on me. I won’t be fooled again!

The former President’s new book, “Decision Point,” was released this past Tuesday to moderate funfare as he made the rounds of the talk circuit to promote it.

We, ‘the people,’ had to suffer through eight years of adversity and possibly the worst administration in U.S. history; one of the darkest most damaging times in recollection. The tribulations of his time in office could be felt for two or three more decades.

His self-aggrandizing vignette should have been titled “Derision Point” as he made such a mockery of the presidency. Or it could have been called, “Division Point,” for his “you’re either with us or against us” statement which was indicative of his false bravado.

So why “Decision Point?”

Read the rest of this entry »

Tags: , , , , , , , , ,
Posted in HuffPost Articles, Politics | No Comments »

“Bank Failures Surpass 2009 Foreclosures!”

Chart of Banking Crisis

Bank Failures During the Banking Crisis

The FDIC shutters four more banks on Friday passing 2009 total.

No banks were foreclosed by the FDIC on the final Friday in October which was good news. But the four closed last Friday brought the 2010 total to 143, three more than all of last year.

The total number of banks that have failed since the crisis began in 2008 has now climbed to 308.

California, which had escaped foreclosures for over two months, lost two banks in southern California, including the first Vietnamese American bank to fail. They were the 11th and 12th California banks taken over by the FDIC this year and the 32nd and 33rd since 2008.

The week was moderate for the DIF, costing the Fund approximately $250 million for the four foreclosures.

There are still six weeks till the end of the year. At the current rate only 12 to 15 banks will fail bringing the total around 160 for the year and in the vicinity of 320 for the three years since the crisis began.

A spike in bank foreclosures, given the huge number on the ‘problem banks’ list, would be bad for the FDIC and for the economy.

Tags: , , , , , ,
Posted in FDIC Foreclosures | No Comments »

“Welcome Back To the Future!”

This article has just been posted, Monday evening. To read it on The Huffington Post web site click on the link here.

What the Hell have Tea Partiers done to our once great country?

A few days ago, despite its many flaws, the country had a chance; a chance at economic recovery. A chance to survive!

Instead, the restless, almost bi-polar electorate handed part of the Federal Government back to those who caused most of our current problems. And we’re lucky they didn’t give it all back.

But our chance to move ahead was disrupted and the days forward no longer look so rosy. One mid-term election reduced our possibilities of an economic recovery.

Why are Americans so negative? Is it an unconsummated desire for change? Is it the smart ideas of the Tea Party and their incredible spate of candidates? If our problems weren’t so damn serious it would be laughable.

Tuesday was serious. It was devastating for the Democrats and gave new life to the Republicans; and a spattering of Tea Party candidates that don’t necessarily think and act like the Republican elite would like.

Republican’s took 60 plus seats back in the House and, though unable to take the Senate, reduced the Dems power to a small majority.

A recipe for success? More like a recipe for disaster!

Read the rest of this entry »

Tags: , , , , , , , , , , , , , ,
Posted in Election 2010, HuffPost Articles, Politics, Tea Party | No Comments »

“Is the Chamber of Commerce a Subversive Organization?”

This new article was posted this morning on The Huffington Post and addresses the problems our democracy now faces after the horrendous ruling of the Supreme Court in the Citizens United case.

**************************

The U.S. Chamber of Commerce campaigns against democracy and America!

With elections only days away this headline should run everyday in newspapers, magazines, on television and cable and shouted on the radio, accompanied by articles and segments naming the corporations like Dow Chemical, Prudential Insurance, Chevron Texaco, Goldman Sachs, and Aegon, exposing the millions of dollars they’ve given to the Chamber which has been converted to partisan ads, many of them dishonestly negative.

Recent actions of the Chamber of Commerce risk causing irreversible damage to our economy and our precious democracy!

Thanks to the Citizens United ruling by the Supreme Court eight months ago the Chamber of Commerce is pumping millions of dollars into mid-term campaigns—dollars meant to  influence close races throughout the country—without having to name the donors.

Their actions are negatively affecting the very democracy they claim to embrace and instead of helping small businesses the candidates they’re supporting could destroy them.

Read the rest of this entry »

Tags: , , , , , , , ,
Posted in Election 2010, HuffPost Articles, Politics, UnAmerican | 1 Comment »