It is President's week vacation and while most of the world went back to work today, almost the entire school population is on vacation this week. My husband's company was not off on Monday as it is just as much a regular business day for many private companies though the stock market and the banks are closed.
Today, President Obama signed the $787 stimulus package so it is a go. The Dow went down nearly 300 points when just last week it kept jumping on even a whiff of a bailout package. Today, there is a signed, sealed and delivered package and it drops like a rock. Also, the auto companies are back, hat in hand as we knew they would be, begging for another $39 billion to remain afloat. In addition, the deadline is upon them to submit their corporate sustainability plans. The numbers so far have been dreadful so I don't think much will change for them in the short term though it seems that the UAW has consented to a few concessions which may help the bottom line. How long will it take the Unions to realize that no one is immune from this Recession? Teachers, Government Workers, Carpenters, Electricians, Plumbers and everyone else belonging to similar organizations, you all need to pitch in, to help yourselves and ourselves because there is no good timeline for getting out of this Recession.
As much as the President tries to emphasize that there is no easy fix and a turnaround will not be immediate, we want those 8 years of George Bush to turn around; we certainly do not want to suffer for our excesses too long, right about now or at least upcoming in the Spring there should be a tidy picture of turnarounds; feel good stories about how the stimulus package is helping many families keep their homes. How the money will be apportioned will be of grave importance. How do we structure ourselves for opportunity in the next few years?
What side of the fence will we all be on when we emerge from this Recession? It is hard to look it in the eye, recession. It is hard to accept that it does not seem to be slowing. Everyone is being advised to work as hard as they can and stand out in order to save their job or themselves from layoff. Everyone who has a job is working as hard as they can because they fear losing their job. Those of us who lost their jobs feel like they have to prove productivity while they are home daily clicking resumes into a blank world; an auto-reply notice thanking you for submitting your resume. One time I did hear back that I was not the type of candidate they were seeking - it was a job on Long Island so I was rooting for it a little bit. Now, I am sending resumes to NYC and NJ wryly wondering how in the heck I would swing it; it is hard for both parents to commute to NYC from Suffolk County.
President Obama's plan was supposed to save us and it landed as flatly when the TARP was signed back in the fall. How much more Government spending will be necessary? I think most poeple know that the well has run dry but we are all in denial about that part. 8 whole years of destruction can't be turned around in a month but we want Obama to have fixed it today and we want our lives to be freed from our own monetary sins.
Tuesday, February 17, 2009
Thursday, February 12, 2009
It is Not in Our Nature
Finally, the data has caught up to reality, Americans woke up to the news today that 8 years of wealth gains have been wiped out. Never mind that the Dow Industrials have been hovering at year 2000 levels for almost a year declining almost 50% in value or that the country has been in a recession for a year.
It takes a while for Americans to come to terms with the facts of economic life; though things are bad, none of us is really willing to clamp down completely. We do want to believe that things will get better; who wants to be the doom and gloom person this year, repeating time after time that things will not be getting better this year, which unfortunately is the truth, or try to remain optimistic, a difficult feat.
Americans seemingly have beleaguered expectations. Everyone needs economic assistance, the Government cannot come up with an effective stimulus plan and the stimulus plan will ultimately help those who were the most egregious. The banks have behaved terribly and have received trillions of dollars so that they can survive, the homeowners who overburdened themselves who now loudly claim that the banks recklessness in approving these unsustainable loans assisted their demise, who will be responsible?
What Americans have to accept is that it took almost a decade for the country to wind up in this position; it cannot be solved in a few months or even one year, no matter how much money the government throws at the problem. America does not have much patience; they want it all fixed now. This will be the first time these generations are subjected to hard times and we don't know what it means to sacrifice or anything remotely similar. It is not in our nature.
It takes a while for Americans to come to terms with the facts of economic life; though things are bad, none of us is really willing to clamp down completely. We do want to believe that things will get better; who wants to be the doom and gloom person this year, repeating time after time that things will not be getting better this year, which unfortunately is the truth, or try to remain optimistic, a difficult feat.
Americans seemingly have beleaguered expectations. Everyone needs economic assistance, the Government cannot come up with an effective stimulus plan and the stimulus plan will ultimately help those who were the most egregious. The banks have behaved terribly and have received trillions of dollars so that they can survive, the homeowners who overburdened themselves who now loudly claim that the banks recklessness in approving these unsustainable loans assisted their demise, who will be responsible?
What Americans have to accept is that it took almost a decade for the country to wind up in this position; it cannot be solved in a few months or even one year, no matter how much money the government throws at the problem. America does not have much patience; they want it all fixed now. This will be the first time these generations are subjected to hard times and we don't know what it means to sacrifice or anything remotely similar. It is not in our nature.
Wednesday, February 11, 2009
Recession Means Everybody...Including Sports
Despite the financial turmoil befalling us, salaries for sports players are stratospheric. Are they really worth this much money? I understand the sports franchises are extremely profitable and that the players should benefit from profit-sharing. However, I am surprised that there is more profit to be made from sports even though expenditure on every other item considered disposal income is shrinking. I think they are wrong about sports this time around.
During the depression, sports kept the country's morale afloat but there was little to choose from for entertainment. There are too many things competing with sports franchises starting with 700+ channels of available entertainment. Also, video games and other electronic devices vying for our attention not to mention the internet, instant messaging and texting.
If we were worried about the species communicating, we can put any discontent to rest. More than ever, people must be yapping to someone even while they are ordering food at the fast food restaurant. Then, they get angry when the server gets their order wrong. Sports is wonderful and I've had my share of it. I grew up with 3 brothers so I had no chance at the TV. It was sports as much as it was on. I think this is a dying breed, the sports-fan. I know a fan when I see one, my brothers are a bit extreme, I might add. Nevertheless, they lament that sports has gotten way too expensive. As the entertainment of the common man, the ticket prices are not common at all.
Sports will price itself out. $250 for a show will soon be way out of reach for most of us.
During the depression, sports kept the country's morale afloat but there was little to choose from for entertainment. There are too many things competing with sports franchises starting with 700+ channels of available entertainment. Also, video games and other electronic devices vying for our attention not to mention the internet, instant messaging and texting.
If we were worried about the species communicating, we can put any discontent to rest. More than ever, people must be yapping to someone even while they are ordering food at the fast food restaurant. Then, they get angry when the server gets their order wrong. Sports is wonderful and I've had my share of it. I grew up with 3 brothers so I had no chance at the TV. It was sports as much as it was on. I think this is a dying breed, the sports-fan. I know a fan when I see one, my brothers are a bit extreme, I might add. Nevertheless, they lament that sports has gotten way too expensive. As the entertainment of the common man, the ticket prices are not common at all.
Sports will price itself out. $250 for a show will soon be way out of reach for most of us.
Tuesday, February 10, 2009
The Dow Plunges Nearly 400 Points as Street Rejects Geithner's Plan
I am still trying to figure out why the market tanked so hard today. I thought Wall Street was waiting with baited breath for the stimulus package to be passed which it was. Last week the market rallied on its supposed passing but did not drastically tank when it did not, it was ultimately sent back for more tweaking. Granted the tweaking was ridiculous since the Senate and House Bills were only a few billion dollars off and in a bill worth over $800 billion, the supposed tweaks were muscle flexing without any true consequence.
Anyhow, Wall Street must have been disgruntled with the new Treasury Secretary's proposal for the remaining TARP funds. I am understanding that the market went down nearly 400 points because it is possible that Investors did not like the fact that additional funds would be needed - everyone knows that the proposals are not nearly what is required but we are too far in debt to provide the truly costly package that is needed, they did not like the public-private investment partnership that was proposed - well the financial institutions have soaked up the first round of TARP funds plus the trillions from the Treasury and the Federal Reserve and still have not freed up the credit markets opting to keep the money to shore up their balance sheets and underwrite their bonus packages, and lastly they did not like that there were not anymore specifics on the remainder of the TARP funds because he mentioned that banks would be held more accountable and their balance sheets would now be "stress-tested" for market viability before they received more funds.
Apparently there is confusion in the plan, it did not explain the whole "bad-bank" proposal that would now buy up bad assets, Paulson's original plan that was never implemented, and it seemed to indicate that banks receiving bailout funds must adhere to more stringent rules where they would be required to lend but mostly the Street is unhappy because Treasury Secretary Geithner did not provide enough specifics of the whole plan. Too Bad.
The market certainly went hopping and ga-ga over Paulson's original 3 page bailout proposal to Congress but now that the Treasury Secretary states that the financial crisis is still bad and there is still lots of risk, the Street is choking. It seems to me that Investors are plain old mad that the Government is not promising to do all the spending itself; it expects Investors to help out. All the Investors want is a full-fledged Government Guarantee of funds. They did not get it today. Good. Let's start playing by some rules. Wall Street can't continue to reap bonuses without some skin in the game.
Anyhow, Wall Street must have been disgruntled with the new Treasury Secretary's proposal for the remaining TARP funds. I am understanding that the market went down nearly 400 points because it is possible that Investors did not like the fact that additional funds would be needed - everyone knows that the proposals are not nearly what is required but we are too far in debt to provide the truly costly package that is needed, they did not like the public-private investment partnership that was proposed - well the financial institutions have soaked up the first round of TARP funds plus the trillions from the Treasury and the Federal Reserve and still have not freed up the credit markets opting to keep the money to shore up their balance sheets and underwrite their bonus packages, and lastly they did not like that there were not anymore specifics on the remainder of the TARP funds because he mentioned that banks would be held more accountable and their balance sheets would now be "stress-tested" for market viability before they received more funds.
Apparently there is confusion in the plan, it did not explain the whole "bad-bank" proposal that would now buy up bad assets, Paulson's original plan that was never implemented, and it seemed to indicate that banks receiving bailout funds must adhere to more stringent rules where they would be required to lend but mostly the Street is unhappy because Treasury Secretary Geithner did not provide enough specifics of the whole plan. Too Bad.
The market certainly went hopping and ga-ga over Paulson's original 3 page bailout proposal to Congress but now that the Treasury Secretary states that the financial crisis is still bad and there is still lots of risk, the Street is choking. It seems to me that Investors are plain old mad that the Government is not promising to do all the spending itself; it expects Investors to help out. All the Investors want is a full-fledged Government Guarantee of funds. They did not get it today. Good. Let's start playing by some rules. Wall Street can't continue to reap bonuses without some skin in the game.
Monday, February 9, 2009
Obama Whatevers
I am back from my vacation and it was just the right break at the right moment. It was money well spent and enough to get us through the next few years until we travel again. Now, I have to turn my mind back to the developments at large, another desperate plea for stimulus funds and the same sky is falling mentality that Bush shepherded us through during the Paulson-Bernanke days. And, oh yes, President Obama's first primetime press conference.
The Press is following every soundbite of the President Obama making the rounds at Congress to rally for the stimlus package worth $827,000,000,000. How do we know that this set wil not hoard the funds and wait it out with government funds padding the bottom line?
If you ask the portion of the population that put all their efforts into getting Obama elected, whatever plan he presents is "fine", they are still coasting on the election results, excited to see Obama being hailed as Mr. President and to cheer whatever ceremony continues the celebration of Obama's election. Noone is crossing the President yet, not the Press with its soft-ball questions and analysis. Mr. Obama is the President now but the reality has not sunk in, we are all simply happy to see him there. Whatever grievances are just noise.
It is nice to see a President responding eloquently on a wide range of topics to the point where the pundits were all commenting on his verbosity. But, we really should be paying attention, politics is still politics, Obama or no Obama, but we'll follow everything he says, for now...Whatever.
The Press is following every soundbite of the President Obama making the rounds at Congress to rally for the stimlus package worth $827,000,000,000. How do we know that this set wil not hoard the funds and wait it out with government funds padding the bottom line?
If you ask the portion of the population that put all their efforts into getting Obama elected, whatever plan he presents is "fine", they are still coasting on the election results, excited to see Obama being hailed as Mr. President and to cheer whatever ceremony continues the celebration of Obama's election. Noone is crossing the President yet, not the Press with its soft-ball questions and analysis. Mr. Obama is the President now but the reality has not sunk in, we are all simply happy to see him there. Whatever grievances are just noise.
It is nice to see a President responding eloquently on a wide range of topics to the point where the pundits were all commenting on his verbosity. But, we really should be paying attention, politics is still politics, Obama or no Obama, but we'll follow everything he says, for now...Whatever.
Wednesday, February 4, 2009
Vacation
Reflections on the Gulf Coast from my very happy children in the form of unsolicited handwritten poetry...priceless
It is nice and warm in Florida
We went to the pool because it is so warm.
Florida is an extremely nice place to be
The warm weather invites you in
While the delicious seafood captivates your taste buds.
Through the eyes of babes, that is where we will reap the most joy from our decisions; showing up just when we forget to look. They are happy and so am I. My husband still needs another day to overcome the expense. Ah, nothing is perfect.
It is nice and warm in Florida
We went to the pool because it is so warm.
Florida is an extremely nice place to be
The warm weather invites you in
While the delicious seafood captivates your taste buds.
Through the eyes of babes, that is where we will reap the most joy from our decisions; showing up just when we forget to look. They are happy and so am I. My husband still needs another day to overcome the expense. Ah, nothing is perfect.
Monday, February 2, 2009
I'm Leaving on a Jet Plane
It is true, my vacation is a reality; we're leaving tomorrow for the Florida gulf coast where it will be a little warmer than here and there will be some history to discover. I am still apologizing for the expense since I'm making a decision against the grain; and certainly not conserving enough or the money could be gladly appropriated to debt service. Anyway, I'm not sure if I will write since I won't want to stay up so late to write especially if I want to get the most of out of each day including a good night's sleep. Unfortunately, unlike the song, I will be back again to pick up my world; and attack my world with renewed vigor. I am looking forward to that part, I'll have plenty of gratitude to show myself for taking this trip and I want to be deserving of my own largesse.
Its Groundhog day but the shadows disagreed; this weather has been too crazy to predict anyway, the bad economic news showers us like naked rain and you need the power to go on. How did it get this bad so quickly and is any of us really behaving rationally? My job search has dried up completely; it has taken me by surprise. How swiftly most of the job prospects have vanished. I have always found a job when I needed a job and I am willing to work hard. I enjoy doing a good job and I'm not afraid of work so I'll shift my paradigm and move on - I will find something, I am certain. 85% of Americans are working if you double the unemployment statistics which is probably closer to the true number and I'm sure I have enough skills to make it through with the majority.
February has raced in all too quickly; the last of the winter is upon us and there is more bad weather to come. The last three winters have been fairly mild out here in Suffolk County, our lake did not freeze. It froze the first year we were here and now in year five. I went out on my almost new skates, the ones I bought in year 2 never for the lake to freeze again, and took a few rounds, it was very nice. I am trying to embrace winter sports but I don't really like being cold so that doesn't help. I generally try not to complain when it is hot outside, this is the side I have picked and what sends me running down South for some warmer weather. According to the weather forcast, my first few days will be unseasonably cool then the temp goes back into the high 70s the day I leave, oh well. My luck will come around.
Its Groundhog day but the shadows disagreed; this weather has been too crazy to predict anyway, the bad economic news showers us like naked rain and you need the power to go on. How did it get this bad so quickly and is any of us really behaving rationally? My job search has dried up completely; it has taken me by surprise. How swiftly most of the job prospects have vanished. I have always found a job when I needed a job and I am willing to work hard. I enjoy doing a good job and I'm not afraid of work so I'll shift my paradigm and move on - I will find something, I am certain. 85% of Americans are working if you double the unemployment statistics which is probably closer to the true number and I'm sure I have enough skills to make it through with the majority.
February has raced in all too quickly; the last of the winter is upon us and there is more bad weather to come. The last three winters have been fairly mild out here in Suffolk County, our lake did not freeze. It froze the first year we were here and now in year five. I went out on my almost new skates, the ones I bought in year 2 never for the lake to freeze again, and took a few rounds, it was very nice. I am trying to embrace winter sports but I don't really like being cold so that doesn't help. I generally try not to complain when it is hot outside, this is the side I have picked and what sends me running down South for some warmer weather. According to the weather forcast, my first few days will be unseasonably cool then the temp goes back into the high 70s the day I leave, oh well. My luck will come around.
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