the collapse

The blog is back after a short late Summer, early Fall Cape Cod get-away. We play tourists and visit many wonderful towns...Hyannis, Falmouth, Dennis, Chatham and Provincetown. Always a great time. And now to the blog desk.......



Many articles have been written about our current economic mess. Let's go back to November 12, 1999 when President Bill Clinton repealed the Glass-Steagll act of 1933.
The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation (FDIC) and included banking reforms, some of which were designed to control speculation.(Recall the recent term "speculators?" Some provisions such as Regulation Q that allowed the Federal Reserve to regulate interest rates in savings accounts were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999 by the Gramm-Leach-Bliley Act signed by President Bill Clinton. the Glass-Steagall Act, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.

The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. An example of this was when Citibank merged with the Travelers Group and in 1998 formed the conglomerate Citigroup, a corporation combining banking and insurance underwriting services. Other major mergers in the financial sector had already taken place such as the Smith-Barney, Shearson, Primerica and Travelers Insurance Corporation combination in the mid-1990s. This combination, announced in 1993 and finalized in 1994, would have violated the Glass-Steagall Act and the Bank Holding Acts by combining insurance and securities companies, if not for a temporary waiver process. The law was passed to legalize these mergers on a permanent basis. Historically, the combined industry has been known as the financial services industry.

Many of the largest banks, brokerages, and insurance companies lusted after this Act at the time. Their reasoning was that most folks usually put more money into investments when the economy is doing well, but they put most of their money into savings accounts when the economy turns bad. With the new Act, they would be able to do both 'savings' and 'investment' at the same financial institution, which would be able to do well in both good and bad economic times.

Prior to the Act, most financial services companies were already offering both saving and investment opportunities to their customers. On the retail/consumer side, a bank called Norwest led the charge in offering all types of financial services products in 1986. American Express attempted to own almost every field of financial business. Things culminated in 1998 when Travelers, a financial services company with everything but a retail/commercial bank, bought out Citibank, creating the largest and the most profitable company in the world. The move was technically illegal and provided impetus for the passage of the Gramm-Leach-Bliley Act.

Also prior to the passage of the Act, there were many relaxations to the Glass-Steagall Act. For example, a few years earlier, commercial Banks were allowed to get into investment banking, and before that banks were also allowed to get into stock and insurance brokerage. Insurance underwriting was the only main operation they weren't allowed to do, something rarely done by banks even after the passage of the Act.

Much consolidation occurred in the financial services industry since, but not at the scale some had expected. Retail banks, for example, do not tend to buy insurance underwriters, as they seek to engage in a more profitable business of insurance brokerage by selling products of other insurance companies. Other retail banks were slow to market investments and insurance products and package those products in a convincing way. Brokerage companies had a hard time getting into banking, because they do not have a large branch and backshop footprint. Banks have recently tended to buy other banks, such as the recent Bank of America and Fleet Boston merger, yet they have had less success integrating with investment and insurance companies. Many banks have expanded into investment banking, but have found it hard to package it with their banking services, without resorting to questionable tie-ins which caused scandals at Smith Barney.

Senator Phil Gramm led the Senate Banking Committee which sponsored the Act; he later joined UBS Warburg, at the time the investment banking arm of the largest Swiss bank.

We have never in memory had a situation where at any one time we have a combination of bad challenges, bad politicians and bad policies.

This past Summer the government tried to straighten out our energy mess, get federal spending under control and try to manage our nation's health system.

The feuding, fighting and posturing remain as I file this report on an early Friday morning. It is hoped that by Noon today, there would of been some mutually acceptable agreement. And.....most important, provide restrictions on what can and cannot be done with guidelines. I applaud the Republican's who are cautious.
I would also hope that any changes made in this problem can me amended and changed while in process. I would love to now see a steel cage match between Neil Cavuto and John Bradshaw Layfiend of the WWE. A stockbroker match.
So what if a friend I know lost $459,000 last week. No biggie at all. Nah............
HumanEvents.com have some wonderful articles posted about this. Please take a look.

a pic tells the tale...

from a Denver Post blog.....

Republican Recycling
by David Harsanyi on September 6, 2008


This morning, Republicans tell me that a worker at Invesco Field in Denver saved thousands of unused flags from the Democratic National Convention that were headed for the garbage. Guerrilla campaigning. They will use these flags at their own event today in Colorado Springs with John McCain and Sarah Palin.

Before McCain speaks today, veterans will haul these garbage bags filled with flags out onto the stage — with dramatic effect, no doubt — and tell the story.

“What you see in the picture I sent you is less than half of total flags,” a Republican official emailed. “We estimate the total number to be around 12,000 small flags and one full size 3×5 flag.”

I’m not sure what the DNC was supposed to do with unused hand-flags, frankly. But the Republicans are obviously questioning someone’s patriotism here.

debates

Here is the schedule for the debates.

September 26, 2008: Presidential debate with domestic policy focus, University of Mississippi, Oxford, MS

October 2, 2008: Vice Presidential debate, Washington University, St. Louis, MO

October 7, 2008: Presidential debate in a town hall format, Belmont University, Nashville, TN

October 15, 2008:Presidential debate with foreign policy focus, Hofstra University, Hempstead, NY

Bristol and Labor (Day)

So we get news that daughter Bristol is pregnant...Is this the bump McCain wanted from the convention?

Happy Labor Day. Otherwise known as Union Extortion Day...

Sarah and Gustav

What a surprise! A homerun too! McCain sure caught everyone, especially "The Big O" off guard. After the "The One's" grand speech Thursday night, McCain sure took over the headlines. So that gives "The One" only 12 hours of headlines when the D&C show should of taken them through to the Sunday TV talk shows.

I don't recall a pending Republican convention with such energy since Reagan in 1976. From what I have read about Sarah, it sure sounds a lot like what Truman went through.

Now with Hurricane Gustav approaching and the cancellation of most of the events of the first day of the Elephant convention, especially not having Bush/Cheney show up, it is a bonus! The association of Bush with McCain and the alleged third Bush term won't be able to be contrasted live.

Let's hope the Hurricane does not hit with such impact. As of this writing, it is still estimated to hit as a Cat. 3. Still bad enough though.

Now to have Sarah show up for her acceptance speech with an M-16 with Arnold introducing her as the new Terminator.

Sarah Palin?

Alaska Governor Sarah Palin was seen leaving Alaska in a private plane. Is she the McCain choice for VP?

a speech to the delegates

August 29, 2008
Op-Ed Columnist
A Speech to the Delegates
By DAVID BROOKS

DENVER

My fellow Americans, it is an honor to address the Democratic National Convention at this defining moment in history. We stand at a crossroads at a pivot point, near a fork in the road on the edge of a precipice in the midst of the most consequential election since last year’s “American Idol.”

One path before us leads to the past, and the extinction of the human race. The other path leads to the future, when we will all be dead. We must choose wisely.

We must close the book on the bleeding wounds of the old politics of division and sail our ship up a mountain of hope and plant our flag on the sunrise of a thousand tomorrows with an American promise that will never die! For this election isn’t about the past or the present, or even the pluperfect conditional. It’s about the future, and Barack Obama loves the future because that’s where all his accomplishments are.

We meet today to pass the torch to a new generation of Americans, a generation that came of age amidst iced chais and mocha strawberry Frappuccinos®, a generation with a historical memory that doesn’t extend back past Coke Zero.

We meet today to heal the divisions that have torn this country. For we are all one country and one American family, whether we are caring and thoughtful Democrats or hate-filled and war-crazed Republicans. We must bring together left and right, marinara and carbonara, John and Elizabeth Edwards. On United we stand, on US Airways, there’s a 25-minute delay.

Ladies and gentleman, I never expected to be speaking before you today. Like so many of our speakers at this convention, I come from a hard-working, middle-class family. I was leading a miserable little life, but, nevertheless, overcame great odds to live the American Dream. My great-grandfather fought in Patton’s Army, along with Barack Obama’s great-grand uncles’ fourth cousin once removed.

As a child, I was abandoned by my parents and lived with a colony of ants. We didn’t have much in the way of material possession, but we did have each other and the ability to carry far more than our own body weights. When I was young, I was temporarily paralyzed in a horrible anteater accident, but I never gave up my dream: the dream of speaking at a national political convention so my speech could be talked over by Wolf Blitzer and a gang of pundits.

And today we Democrats meet in Denver, a suburb of Boulder, a city whose motto is, “A Taxi? You Must be Dreaming.”

And in Denver, we Democrats showed America that we have cute daughters who will someday provide us with prestigious car-window stickers. We heard Hillary Clinton’s ringing endorsement of “the weak-looking thin guy who’s bound to lose.”

We heard from Joe Biden, whose 643 years in the Senate make him uniquely qualified to talk to the middle class, whose family has been riding the Acela and before that the Metroliner for generations, who has been given a lifetime ban from the quiet car and who is himself a verbal train wreck waiting to happen.

We got to know Barack and Michelle Obama, two tall, thin, rich, beautiful people who don’t perspire, but who nonetheless feel compassion for their squatter and smellier fellow citizens. We know that Barack could have gone to a prestigious law firm, like his big donors in the luxury boxes, but he chose to put his ego aside to become a professional politician, president of the United States and redeemer of the human race. We heard about his time as a community organizer, the three most fulfilling months of his life.

We were thrilled by his speech in front of the Greek columns, which were conscientiously recycled from the concert, “Yanni, Live at the Acropolis.” We were honored by his pledge, that if elected president, he will serve at least four months before running for higher office. We were moved by his campaign slogan, “Vote Obama: He’s better than you’ll ever be.” We were inspired by dozens of Democratic senators who declared their lifelong love of John McCain before denouncing him as a reactionary opportunist who would destroy the country.

No, this country cannot afford to elect John Bushmccain. Under Republican rule, locusts have stripped the land, adults wear crocs in public and M&M’s have lost their flavor. We must instead ride to the uplands of hope!

For as Barack Obama suggested Thursday night, wherever there is a president who needs to tap our natural-gas reserves, I’ll be there. Wherever there is a need for a capital-gains readjustment for targeted small businesses, I’ll be there. Wherever there is a president committed to direct diplomacy with nuclear proliferators, I’ll be there, too! God bless the Democrats, and God Bless America!



Copyright 2008 The New York Times Company

behold.........

Obama of Assisi

Obama has arisen!

[


Well he has arisen in Denver of all places. Mile high city and mile high dreams. Last night we heard from the original master bs'er (William Jefferson "I am Impeached" Clinton), now we hear from his protegee. Barack Hussein Obama is truly a remarkable speaker. One of the best. He is a true master in delivering from the political pulpit. But when it comes to one on one debative formats, he tends to sputter and back peddle, as evidenced in the recent Saddleback Church appearances of both the "Big O" and "Juan McAmnesty" who showed a sharp witted performance. It seemed that McCain truly out did Obama at the Saddleback event.
Tonight Obama hit a line drive into the heavens at the stadium. Did the ball go over the wall for a homerun? I think a fan may of intercepted the ball from going out and maybe gave him a ground rule double. The Big O's spending plans will hit a brick wall due to the current budget deficits. The tax proposals he outlines would reduce the tax revenue by $2.95 trillion. (this figure provided by The Tax Policy Center) His windfall profits taxes on the big oil companies, which he proposes, is doomed to fail due to the timetable it would take to enact and the debate as to whether it would even get through Congress. If memory serves me, we actually had such a tax in the 80's, which resulted in the reliance of our use of foreign oil imports to increase. Lord Obama's $150 billion clean energy fund is dependent on uncertain financing. The Tax Policy Center has critiqued his health care plan as it leaves the number of estimated uninsured by 18 million in 2009, down from the current 45 million....but leaves millions still without health care. Better than nothing you say? Still not a universal plan per se. (Again based on data from the Tax Policy Center, a non-partisan group.) The "Big O" promises to end the Iraq war. Wonderful. But rushing the Iraqi forces before they are ready to assume a greater role of responsibility gives the insurgents in Iraq a clear timetable to sit out and wait to go back into Iraq full force.
The education plan sounded great too. (So does extra cheese on my cheeseburger.) There is only just so much money available with the budget he is proposing being onion skin thick. He claims to want to give the U.S. a fresh coat of makeup and repair our image overseas. But the U.S. has already changed many of their prior policies that has seen us chat with Iran and North Korea. Plus there is the Pakistan factor. With the prior President overthrown and forced to resign, the Big O would face certain resistance from the Pakistani authorities and likely cause us to pay a hefty price for violating their sovereignty. The Big O mentions curbing Russian aggression by using "tough, direct diplomacy." This does not offer any great chance of success. And as we have seen, all the promises by Russia...talk is cheap. Did the D&C convention accomplish anything? I think they did and had the party come a tad bit closer, even though both sides (political inlaws) don't love to hug each other in the receiving line. As for Obama's speech...while historic, fell flat in the sense that it promised and preached more than can be delivered, no matter how much you fill the preverbial offering plate. In Obama's case, the offering plate may of sprung a slight leak. Now we hear from that "gray haired dude..." Paris are you ready and on cue? The R&C Convention is next week, sponsored by Cialis and Budweiser.

my guess on McCain's choice for VP

Timothy James Pawlenty (born November 27, 1960) is the 39th and current
Governor of Minnesota. In the Minnesota election in 2002 he was the Republican nominee. He was re-elected in 2006.

perhaps Obama should use these ads?

"The One" seems worried.....

Yes folks, after Hilliary's first 2012 campaign speech on Tuesday night, after Biden bit the bullet and praised the glories of "the One", despite his incredible change of mind on the qualifications of Barack Hussein Obama to be his presidential political busboy, there is continued reason for "the One." Is this campaign ready to implode like one of former tank commander Mike Dukakis? One political columnist, Jon Keller sums it up this way. "But every speech I’ve heard or read so far has one thing in common – they offer virtual baby talk on the major issues of the day. What is the right thing to do about soaring energy costs, in the short and long term? With the lone exception of Montana Gov. Brian Schweitzer, who alluded to something called coal gasification, I haven’t heard a specific fresh idea yet. What is the right way forward on affordable housing? All I’ve heard are vows to make sure every American can own a home to go with the chicken in their pot, even though we’ve just learned the painful lesson that not every American can afford to finance a home. How do we break the stranglehold of reform-averse unions over failing public schools? Apparently, there isn’t a major Democrat in the building willing to risk angering the union delegates by talking about charter schools and choice. It’s pathetic and sad. All we get are self-aggrandizing personal stories designed to show us what saints these power-seekers are, vague, insulting promises of the land of milk and honey that awaits a partisan victory, cheap trash-talking of the opposition. "

Days 2 and 3 of the D&C

The new generation of B.S. artists admiring the old school B.S. artists.









While waiting for the Obama Greek temple is finished being built for the "One" to speak tomorrow night....some thoughts...






As the curtain closes on "the Big C"...or does it? I think we saw the beginning of the "Hil 2012 campaign. It was indeed touching and nauseating to see the Academy Award winning performance of Bill mouthing the "I love you, I love you forever and ever". How many lady friends do you think he has told that line to in the past few years? I did like how she didn't wear the same blue dress that someone named Monica wore.


The expert shoe sales men, formerly known as, Bill "I did not have sexual relations with that woman...Miss.Lewinsky, could not make the case for "the One." He threw some nice change up pitches at the crowd but certainly never got past first base on the kiss up speech.

Now we wait for Mile High Stadium show. Do you think there will be harps?

Day One of the D&C

Mrs. O's speech fell flat. She used the same old Democratic blue print and it was boring. While her passion for her family was touching, it just does not deliver the goods. Chris Wallace from Fox said that it was a "wasted night." James Carville of CNN had this to say....
"Well if this party has a message it has done a hell of a job of hiding it tonight I promise you that," Carville said. He went on to say "...George W. Bush, you haven't heard any of this," said Carville. "I mean we are a country that's borderline recession, 85% 80% wrong track country, people, health care, energy, I haven't heard anything about gas prices, I mean maybe we are going to look better Tuesday, Wednesday and Thursday but right now like I say we are playing hide the message pretty good." Anderson Cooper chimed in, "David Gergen said this a short time ago, that in the first two hours what is the message?"
Carville repiled, "And you know what? David didn't get to where he was in life because he's stupid. He was exactly right. I look at this and I am about to jump out of my chair...There's no message coming out of here, there is no sense that the party has a sense of urgency, and we've only got four nights this is 25% of the whole thing."



This was one pic that didn't make the video tribute to the felon, Ted Kennedy. I give him credit for showing up at the convention. I guess poor ole Ted read about the cat fights between the Obama and Clinton parties and thought an ole cougar could calm the waters. But from what I read and hear the backroom is quite chilly.

appearing tonight at the D&C convention

Highlighting the D&C convention speaker list tonight is Ted "Chivas Regal" Kennedy and Michelle "like my fro" Obama.

Party united?

They say a picture tells a thousand words.
Now..where is Bill?

some interesting quotes from Biden's book....

"How do you take your coffee?"






I ran across some interesting quotes from Biden's 2007 book, "Promises to Keep"...actually an autobiography.

page 130... "In 1976, I became the first elected official outside George to endorse Jimmy Carter for President."

page 133 "Jimmy Carter was a man of decency and a man of principle, but it wasn't enough. That's the first time I realized that on-the-job training for a president can be a dangerous thing."

Your honor, the prosecution rests......(for now)

comments and thoughts over O-Biden, or is he "Biden" time?

Possible McCain choice for VP?

















Is this Obama's foreign policy plan? (before Biden)

When introducing his running mate, Obama said, "So let me introduce to you the next president - the next vice president of the US of America, Joe Biden."

In many ways...Biden is a new Dick Cheney...brings experience and has a mouth that runs....and runs and runs...yes he talks too much...

An interesting statistic....
The majority of the white Catholic vote always goes with the Presidential winner. As of today, McCain is beating Obama among White Catholics by stunning double digits, 12%.

Only half of the Hilliary Clinton (who?) voters support "The One." One in five of those supporters have stated outright that they will vote for McCain. (Wouldn't it be a hoot if Obama hired Rove.) If these numbers remain even slightly the same, Obama cannot win.

As the Electoral Map sits today - observing both versions on CNN and FOX (MSNBC does not even figure in anything as professional wrestling gets higher ratings than MessNBC) and is most likely to remain the same - if McCain wins Michigan he wins the election. (A good reason to select Romney as he is a shoe-in for Michigan.) More than any candidate in either party, and Michigan Democrats have already admitted this...Romney is in a very strong position to deliver Michigan for McCain.

One columnist made a very startling statement: "In forty years, no Dem has emerged from their national party convention with less than a 16 (and as high as 30) point bounce."

Some headlines that caught my eye...

Sunday Boston Globe Page 1 Headline: "Foreign Policy got Biden VP nod"

Sunday New York Times Page 1 Headline: "Obama Selects Biden, Adding Foreign Policy Expertise"

I interpret that as saying that Obama has no foreign policy experience and is unqualified to be President and Commander-in-Chief, especially in this time of war and international strife. Obama's choice of Biden both proves and admits what many have been saying for months...that Obama needs to hire a "consultant" for the defense of the United States.

National Public Radio, (National Propoganda Radio) Saturday, Aug 23, 4:00pm "Barack Obama picked Sen Joe Biden to provide foreign policy experience some say Obama lacks." Really?

A great quote from a Boston radio talk show host, Jay Severin...

"Obama's foreign policy experience being entirely limited to twice having breakfasted in an International House of Pancakes, not SOME but ALL rational persons know this; and they do not SAY it but OBSERVE the FACT Obama has NO FOREIGN POLICY EXPERIENCE."

"Will Hillary drop some bomb on Yo-Bomba in Denver?" asks Michelle Malkin. Imagine Hilliary trying to destroy Obama's chances in November and make herself the leading Democrat candidate in 2012. Many say she has been plotting her strategy for weeks and maybe even months. (read my prior post on the disasterous Hiliary Rodham-Clinton-Lewinsky campaign.) Imagine Hiliary endorsing McCain on the convention floor!

ABC's George Stephanopoulos had John McCain's houses issue on his agenda today when his real estate holdings were discussed with every guest. What Stephanopoulos may not have expected was Time's Mark Halperin claiming that "this is going to end up being one of the worst moments in the entire campaign for one of the candidates, but it's Barack Obama."
Adding insult to injury, much to Democrat strategist Donna Brazile's dismay, Halperin saw the Obama campaign's attack on McCain not knowing how many houses he owns as opening the door for the Arizona senator to bring up the Illinois senator's connections to Tony Rezko, Reverend Wright, and William Ayers. (I like my steak medium rare.)

"Now that Barack Obama has chosen Joe Biden to be his running mate, it will be interesting to see how some journalists will distance themselves from their own scathing opinions of Biden in the past. One such case is that of Jonathan Chait, The New Republic editor, who was very downbeat on Biden in a Los Angeles Times article published on February 4, 2007. Of course, back then it was "safe" to be honest about Joe Biden since it looked like his presidential bid was going nowhere. The very title of Chait's article, "Joe Biden’s just a barrel of gaffes," explains the problems the Obama campaign is going to have with the new vice-presidential pick. Back then Chait was very blunt about Biden's problems as a candidate:
...Biden’s charming cluelessness was on display in a recent ABC news interview. The famously verbose senator was asked to state in 25 words or less why Democrats should nominate him. His response was 45 words. I suppose that, by Biden’s standards, coming in at just under twice his allotted length counts as a victory of sorts. "

Let the Games begin....and to think I get to do it all over again with the McCain convention...

lobbyists....

Now that Obama has chosen Biden, they can now round up the 35,000 lobbyists that "the big O" has campaigned that he would get rid of in Washington D&C. So, I have reserved Pods under the Obama campaign name.

Think that will be enough?

so its O-Biden.....(some of my favorite Biden quotes)

OK so it is Biden. I had thought after the harsh comments he made to "the Great One" in a few debates, that it would be Bayh. I would of loved that ticket... O-Bayh. (oh bye....ok forget it.)
Anyway, now let me share with you some of my favorite Biden quotes of late...


"I've had a great relationship [with Indian Americans]," Biden said. "In Delaware, the largest growth in population is Indian-Americans moving from India. You cannot go to a 7-Eleven or a Dunkin' Donuts unless you have a slight Indian accent. I'm not joking."

Biden calling Obama "articulate and bright and clean and a nice-looking guy"

Biden dropped out of the Democratic Presidential race September 1988 after admitting that he had used speeches by Neil Kinnock, Britain's Labor Party leader and other politicians without attribution, and after published reports that he had plagiarized while in law school.

Biden, who met Mr. Kinnock at the House of Commons, said the Welsh politician ''did not give me any more ideas for speeches, nor I him.''

Biden, a member of the Senate Foreign Relations Committee, was on a two-day visit of Britain as part of a tour to consult allies on the treaty between the United States and the Soviet Union banning intermediate-range nuclear missiles.

One of the most overlooked episodes during the 1987 collapse of Biden's campaign was footage taken by C-Span in which Biden, in response to a question about where he went to law school and what sort of grades he received, delivered this classic line: "I think I have a much higher IQ than you do."

During the 2006 confirmation hearings for Supreme Court Justice Samuel Alito, the Washington Post's Dana Milbank wrote this of his performance:

"Sen. Joseph R. Biden Jr., in his first 12 minutes of questioning the nominee, managed to get off only one question. Instead, during his 30-minute round of questioning, Biden spoke about his own Irish American roots, his "Grandfather Finnegan," his son's application to Princeton (he attended the University of Pennsylvania instead, Biden said), a speech the senator gave on the Princeton campus, the fact that Biden is "not a Princeton fan," and his views on the eyeglasses of Sen. Dianne Feinstein (D-Calif.)."

In one of the best moments in an unending series of Democratic debates, Biden was asked by moderator Brian Williams whether he possessed the "discipline" to be the leader of the free world. Biden's simple response -- "yes"

John McCain has now released a new commercial about good 'ole Joe Biden.

Please pay particular attention to the "Big O's" facial expressions when Biden makes his comments. Watch the Obama chin raise 4 degrees, ok maybe 10 degrees North to Heaven...

www.youtube.com/watch?v=RDVUPqoowf8

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