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Posts Tagged ‘Bush’

President Bush Successful

Posted by Reed on Tuesday, October 7, 2008

President Bush has been successful in:

  • doubling the national debt;
  • leaving our country with a projected 1/2 Trillion dollar annual debt for next fiscal year;
  • giving top 1% of taxpayers a $1000 per week tax break;
  • permitting credit market businesses unrestrained risk taking that resulted a $700 Billion bailout;
  • creating a bailout situation so large there is no money remaining: to repair our health insurance crisis; to initiate energy infrastructure improvements via science and technology; to upgrade and repair our physical infrastructures (highways and bridges and dams; air traffic control…); or to improve and maintain our education infrastructure;
  • leaving us at precipice of severe recession (maybe depression) so awful economists and financial analysts are reluctant to discuss it because they do not want to create fear.

Yes, President Bush has successfully emasculated the financial health of United States for years to come. What President has done more to do a worse job at leadership and executive oversight while not keeping fundamental economy strong – while not keeping the middle-class strong?  No one. Bush is in a league of his own.

Yes, President Bush, we will remember your poor leadership and management.

Posted in Economics, Economy, Politics | Tagged: , , , , , , , , , , , | Leave a Comment »

Financial Market Worry Continues

Posted by Reed on Wednesday, September 24, 2008

Around the world financial markets are worried USA financial system is overextended. AIG bailout was a good move. Now international investment banks are doubting the accuracy of accounting and reporting of financial conditions by any USA based financial institution.

European Union, England, USA, and some Far East central banks are each injecting a total of 180(?) billion dollars to try to mitigate financial markets worries. It is apparent, due to this injection, international liquidity trap and credit crunch crises are simultaneously occurring. This is confirmed by announcement that reason for injection of huge amounts of cash into financial systems around world: To convince banks to lend money! Unfortunately for USA, both for credit crunch and liquidity crisis this is pushing a rope. FTC, SEC, FBI nor Justice Department have not warned of any of these difficulties in any business in any financial sector. This debacle has been ongoing for over a year and no clear explanatory information has been offered.

Silence here is an indicator of a deep, broad problem of serious nature and and an unwillingness to do anything to correct it. Situations like this are an opportunity to consolidate wealth into a smaller number of people. Only most wealthy will have opportunity to buy all or large portion of these bankrupt companies. Oh, how this fits the Bush persona!

Freddie and Fannie regulator gave each a clean bill of health two weeks before taking them over! This is prima facie information that public is being told falsehoods and vital information is being kept from general public. In eight years the regulators under Bush administration control did not figure out managers of Freddie and Fannie were lying about financial condition of our GSE. Are we to believe regulators are stupid and foolish, or just lazy? Or are they emasculated by President Bush’s executive orders and bullying?

Executive leadership of our Federal government (President Bush) is completely responsible for managerial action of our government. Bush directly controls FTC and Justice Department and FBI and he can certainly apply political leverage to motivate SEC to investigate. Instead he does nothing and expects taxpayer to bailout the businesses. In the end what Bush wants is for a few businesses and their managers to make big bucks and taxpayers to pay for it for next 30 years.

Posted in Economics, Politics | Tagged: , , , , , , , , , , , , , | Leave a Comment »

Stupidity Plus Lemmings

Posted by Reed on Wednesday, September 24, 2008

…arguably the greatest casualty of yesterday’s debacle is the notion that bankers actually know what they are doing. For all the advanced degrees, flickering Bloomberg screens and chest-pounding that went on, it is apparent that many of those on Wall Street fatally misunderstood the risks inherent in the products they sold to investors.

They were not just unlucky to be caught in an external hurricane of events–they were not as smart as they thought.

For what, after all, is a credit crunch but the sudden realization by investors that many of the valuations they have been applying to assets are wrong? The risks were miscalculated, the rewards exaggerated, the probabilities of default hopelessly out. Valuation lies at the heart of finance, and, for many years, Wall Street forgot how to do it.

Ref: http://www.forbes.com/opinions/2008/09/16/bankers-schumpeter-capitalism-oped-cx_pb_0916.html

Federal finances have been deteriorating ever since George W. Bush became president. Bill Clinton bequeathed him a budget surplus equal to 2.4% of the gross domestic product (GDP). This fell to 1.3% in 2001, turned into a deficit of 1.5% in 2002, 3.5% in 2003, and 3.6% in 2004.

Since 2004, deficits have declined as a percentage of GDP, falling to 2.6% in 2005, 1.9% in 2006 and 1.2% in 2007. However, the latest projections from the Congressional Budget Office (CBO) show the deficit rising to 2.9% of GDP in fiscal year 2008, which ends on Sept. 30. The deficit will remain in this range through at least 2010.

Ref: http://www.forbes.com/opinions/2008/09/16/debt-taxes-bush-oped-cx_bb_0916bartlett.html

Posted in Economics, Politics | Tagged: , , , | Leave a Comment »