Greene County Daily World

DISGUSTING.

Posted Thursday, September 25, 2008, at 11:24 AM
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It's funny how high-ranking politicians and government officials just conceded this week that we're in a financial mess nationwide. Rewind to the previous week, and they were still telling the American people that everything was fine and our economy was "sound".

Even a young banker from Indiana could see this coming. Not to toot my own horn, but in November 2007, I wrote a blog post entitled, "The State of Our Economy" as seen here: http://gcdailyworld.com/blogs/chriswathe... In May 2008, another post by the name of "Postage, Mom, & Corn-Fed Beef" ( http://gcdailyworld.com/blogs/chriswathe... ) warned about stagflation. A month later, in June 2008, I asked who would be caught holding the bag next in the post called "Musical Chairs. Who Will Be Out Next?" as you can see here: http://gcdailyworld.com/blogs/chriswathe...

It's not something I'm especially proud of, nor did I really ever want to say "I told you so," but it appears to be unfolding just as predicted. I guess you tend to think that these high-ranking officials have special privileges, powers, and information -- something beyond the grasp of the 'average Joe' -- but obviously not. Maybe they just need to read the news with some critical thinking involved like this Midwestern banker does.

If you hold politicians on a pedestal, you're going to be disappointed. When I read that the CEO of Goldman Sachs made $70 million last year ( http://www.nypost.com/seven/12132007/bus... ) I think, no wonder we have the politicians we do! Why would anyone ever want to be a politician when they can run a company into the ground for $70 million, losing over half of shareholders' wealth? Executive compensation has gone out of control. They could have hired any idiot off the street to do the same at many of these companies for much, much less.

But it gets better! Why work for $70 million a year when you can get fired and collect $68 million?! Chuck Prince, former CEO of Citigroup, made just that to get lost and join the unemployment line, as seen here in this CNN article: http://money.cnn.com/2008/03/07/news/new...

You may have read a few months ago, too, that Countrywide Financial CEO Angelo Mozilo inadvertently hit 'reply' instead of 'forward' to an e-mail asking for help, which was sent to him by a customer facing foreclosure. If not, here's a link to the story in the LA Times: http://articles.latimes.com/2008/may/21/...

To comment on Mozillo's compensation package, using a word from his own inadvertent e-mail reply, I'd say, "Disgusting."

Comments
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I think everyone knew it was headed this way, but the higher-ups made the decision to sacrifice us to make the money. Even if we're hit with a depression, they have enough money to live comfortably through it. Hundreds of millions of dollars is still a lot after inflation.

Now on the other hand...

http://en.wikipedia.org/wiki/Hyperinflat...

The only good things about hyperinflation are: A) It's much easier to pay off a $80,000 home loan when a loaf of bread costs $20,000 B) Buy whatever you want, because your money will be even more worthless tomorrow (I've always wanted a 200 million dollar TV)

-- Posted by per moenia urbis on Thu, Sep 25, 2008, at 12:38 PM

Goldman Sachs appears to be a well ran company but I see your point.

Why are we bailing out corporations when if we bailed out consumers they could spend the money needed to make the corporations solvent.

Increasing the customer base and sales numbers would be a good place to start helpnig out companies losing money.

I believe criminal charges should be brought against whomever raised interest rates over the last year prior to this emergency.

cough..cough..alan greenspan....

-- Posted by america on Thu, Sep 25, 2008, at 6:05 PM

Criminal charges need to be brought against unscrupulous mortgage brokers who issued mortgages (backed by Fannie Mae and Freddie Mac) to people who didn't have the means to pay. When you have an excess of people in homes they can't afford, times get rough, and then banks get overloaded with foreclosures they can't sell. All of a sudden,everyone wants out and speculators start short selling. Alan Greenspan is not to blame, as all republicans believing in a free market, did not raise interest rates as he believed it made it good for business to have access to cheap money. Although, Alan Greenspan did say there was some irrational exuberance. In other words, you can't blame Santa Claus for your problems.

-- Posted by Dairyman on Fri, Sep 26, 2008, at 9:06 AM

I received this email yesterday that kind of goes along with the topic!

DON'T KNOW WHO ORIGINATED THIS E MAIL BUT I THINK HE OR SHE WOULD MAKE AN EXCELLENT CANDIDATE FOR SECRETARY OF THE TREASURY

I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bona fide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up..So divide 200 million adults 18+ into $85 billion that

equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend. Of course, it would NOT be tax-free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes.

That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads. Put away money for college - it'll be there Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back.

And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is being proposed by one of our candidates for President.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it. Sell off its parts. Let American General go back to being American

General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can 'never

work.'

But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC. And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

A Creative Guy & Citizen of the Republic.

-- Posted by incognito on Fri, Sep 26, 2008, at 10:31 AM

That is what our country gets for voting for government representation that wants to deregulation and/or give most of our government business to the private sector. Don't think that the roads turned over by Governor Daniels won't meet the same fate.

Don't just blame these companies for their greed...Blame ourselves for allowing the government to pass laws that do not make companies accountable for their actions.

Face it...you can say all you want about free markets...NO company, sector, industry, etc...will ever be free from greed without some monitoring from the government. It is the price we pay for being more concerned for ourselves than for our country.

-- Posted by buck on Fri, Sep 26, 2008, at 1:39 PM

After reading the article, Chris, I have to say that only John McCain was saying the economy was sound.

-- Posted by buck on Fri, Sep 26, 2008, at 1:40 PM

Chris, I'll have to admit that you don't appear to be your typical Wall Street banker asking for a government bailout. The $700B Paulsen plan is doomed for failure and you apparently know it. Is that why it's now called "cash for trash"?

-- Posted by Dairyman on Fri, Sep 26, 2008, at 7:56 PM

I really all for the plan to bail out all U.S. citizens instead of just the poorly managed corporations. If we had more people like this in Washington D.C. we wouldn't be having the financial problems we have now. I would much rather have a $425,000 stimulus package than a $1000.

I don't know who this person in but his math makes a lot of sense.

I'm quite sure that this would resolve all of my financial problems and probably my whole communities too!

-- Posted by #1LakerFan on Sat, Sep 27, 2008, at 7:32 AM

incognito...I realize you did not create that email however according to my calculations 85 billion divided by 200 million would give each U.S. citizen $425 not $425,000.

-- Posted by ajames7 on Sat, Sep 27, 2008, at 9:01 AM

I don't know who wrote this but thought you would get a kick out of it if you hadn't seen it before.

I'm against the $85,000,000,000.00 bailout of AIG. Instead, I'm in favor of giving $85,000,000,000 to America in a "We Deserve It Dividend". To make the math simple, let's assume there are 200,000,000 legal U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up. Divide 200 million adults 18+ into $85 billon...that equals $425,000.00. My plan is to give $425,000 to every person 18+ as a "We Deserve It Dividend". Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family? Pay off your mortgage - housing crisis solved. Repay college loans - what a great boost to new grads Put away money for college - it'll be there Save in a bank - create money to loan to entrepreneurs. Buy a new car - create jobs Invest in the market - capital drives growth Pay for your parent's medical insurance - health care improves Enable deadbeat Dads to come clean - or else Remember this is for every legal adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back.And of course, for those serving in our Armed Forces. If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that isbeing proposed by one of our candidates for President. If we're going to do an $85 billion bailout, let's bail out every legaladult U S Citizen 18+! As for AIG - liquidate it. Sell off its parts. Let American General go back to being American General. Sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Here's my rationale. We deserve it and AIG doesn't. Sure it's a crazy idea that can "never work." But can you imagine the Coast-To-Coast Block Party! How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in WashingtonDC. And remember, The plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam. Ahhh...I feel so much better getting that off my chest.

-- Posted by Longtimelintonlady on Sun, Sep 28, 2008, at 2:37 PM

The current status of the economy is really bad. With a bail out it may hold, get better or crash.

The current status of the Constitution is really bad. With this bail out it will only get worse. This will be the largest trampling of the Constitution since FDR and the new deal.

"People willing to trade their freedom for temporary security deserve neither and will lose both."

-Benjamin Franklin-

-- Posted by hilljak on Sun, Sep 28, 2008, at 9:16 PM

now it is a 700 billion dollar plan...

These companies sold those loans to people: lots of times when the customer could have gotten a fixed rate on a lower dollar amount.

Unemployment is up due to corporations sending jobs overseas.

Inflation is out the roof due to fuel prices.

Main street needs the help.

only because congress has already been in wallstreets back pocket for years.

I am for free markets but, we do not have them now, and did not have them yesterday.

we need a new deal!

One that is best for the entire country, not just the wealthiest.