Fixing the Deficit ??

Only in DC can you reduce a deficit by increasing it. The maddening thing is the very people who were screaming about deficit spending over the last eight years are the same ones digging the hole deeper today.

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And the printing presses run on......

Explosive Video Reich, Obama's Economic Advisor

The Forgotten Man

"They are always under the dominion of the superstition of government, and forgetting that a government produces nothing at all, they leave out of sight the first fact to be remembered in all social discussion -- that the state cannot get a cent for any man without taking it from some other man, and this latter must be a man who has produced and saved it. This latter is the Forgotten Man."

William Graham Sumner - 19th century economist

Ol Fred has it Right

Dear Speaker Nancy Pelosi:

I just wanted to take this time to thank you for everything you have done for me the past two years. With what is going on with Congress I unfortunately will not be able to retire because I have lost thousands of dollars in my retirement fund and had to sell my house for about $80,000 less that what it was worth two years ago.

I know the media and many politicians are quick to blame our current President but here are the facts as I know them...and if I am wrong, please feel free to corrected them.

George Bush has been in office for 7 1/2 years. The first six the economy was fine. A little over one year ago:

Consumer confidence stood at a 2 1/2 year high;

Regular gasoline sold for $2.19 a gallon;

Unemployment rate was 4.5%;

The DOW JONES hit a record high-14,000 +

American's were buying new cars, taking cruises, vacations overseas, living large! But American's wanted CHANGE! So, in 2006 they voted in a Democratic Congress and yes--we got CHANGE all right and you were in charge. In the PAST YEAR:

Consumer confidence has plummeted ;

Gasoline is now over $4 a gallon & climbing;

Unemployment is up to 5.5% (a 10% increase);

Americans have seen their home equity drop by $12 TRILLION DOLLARS and prices still dropping; 1% of American homes are in foreclosure.

As I write, THE DOW is probing another low~$2.5 TRILLION DOLLARS HAS
EVAPORATED FROM THEIR STOCKS, BONDS & MUTUAL FUNDS INVESTMENT
PORTFOLIOS!

YES, IN 2006 AMERICA VOTED FOR CHANGE...AND WE SURE GOT IT!


Everyone keeps blaming the President, but he has absolutely NO CONTROL over any of these issues...only Congress - and you are in charge!!!!

Looking at the record to determine what Congress has done the past two years, you've done NOTHING but destroy the lives of hard working Americans.

You've lied to the public and you are a disgrace to what this Country stands for. I fought for our FREEDOM, spending 34 years in the United States Air Force, and I'm not going to give up that FREEDOM to the idiots in Congress in Washington who think they are "in charge."

Please note that I didn't once mention Democrat or Republican...Conservative or Liberal (until this paragraph)! It doesn't make any difference what party is in charge, Washington is SCREWING the Americans and it has to STOP!!!!!

You'll notice if you go to my website link www.the-rosenthal-group.com my business evolves around waste and recycling. Our goal is to cut back the waste and recycle as much material as possible. Seems to me I could expand our business to include wasteful politicians and recycle them in November.

I've saved businesses millions of dollars with our program...TURNING WASTE GREEN...think it would work in Washington?



Fred J. Rosenthal
Waste & Recycling Consultant

The Real Deal

So who is to blame? There's plenty of blame to go around, and it doesn't fasten only on one party or even mainly on what Washington did or didn't do. As The Economist magazine noted recently, the problem is one of "layered irresponsibility ... with hard-working homeowners and billionaire villains each playing a role." Here's a partial list of those alleged to be at fault:

The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.

The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.

Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.

Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.

Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as
collateral.

The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.

An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic.

Collective delusion, or a belief on the part of all parties that home prices would keep rising
forever, no matter how high or how fast they had already gone up.

The U.S. economy is enormously complicated. Screwing it up takes a great deal of cooperation. Claiming that a single piece of legislation was responsible for (or could have averted) is just political grandstanding. We have no advice to offer on how best to solve the financial crisis. But these sorts of partisan caricatures can only make the task more difficult.

–by Joe Miller and Brooks Jackson

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam

Words of a Right Wing Nutjob

"Those who expect to reap the blessings of freedom must, like men, undergo the fatigue of supporting it."

-Thomas Paine: The American Crisis, No. 4, 1777

Socialism 101

Today Obama visited Wall Street and basically cussed them out for being capitalist and Hillary launched her newest vision of Hillarycare. Two fine examples of why we don't need either one of them as President.

The problem is that their comments sound feasible and they play to those that can't differentiate between socialism and capitalism. The liberals have done a bang up job portraying capitalism as a system designed to make the rich richer and keep the poor poor. Quaint notion but it couldn't be farther from the truth. Capitalism is a system designed to give everyone the ability to be financially successful... if they are willing to do the work.

And there lies the problem. Work isn't fun. Sitting back and letting the government hand you entitlements is easy. I am not saying the government shouldn't provide help to those who need it, I am saying they should provide help "only" to those who need it.

This notion that the government should provide as services paid for by taxation is simply socialism. Ask the USSR how well that worked. It doesn't, socialism retards economic growth and Robin Hood entitlement programs do the same thing. Increasing taxes upon the business and the rich hurts our economic growth it doesn't help it.

If you remove tax cut incentives and replace it with huge tax increases on the rich what happens? Do you think that when a board of directors is forced to pay more taxation they will absorb that increase themselves? No they will not, they will still live in their million dollar homes and have their corporate jets. The increase will just be passed on. In the form of price increases and less capital investment in their business. Both of which don't hurt the rich, but the middle and lower class.

Supply side economics 101 you do not make poor people rich by making rich people poor. In fact the notion that overtaxing the rich will help the poor is pure foolishness. In fact when you look at the taxation reforms Democrats propose its nothing more than income redistribution, that is socialism.... period.

Self Inflicted Economic Pressure

The old adage is if you repeat something enough its bound to come true. That seems to be exactly what is happening with our economy. Even though all the indicators point to good economic growth the pessimists are out in full battle regalia over the housing market. Is it just me or does anyone else remember 18% mortgage rates?

The sub prime market is the root of this nonsense, a market that is small compared to millions of mortgage customers in America, but large because of the money financial institutions have in it. Because greed won out during the housing boom of the last few years, we now face problems because banks loaned money to individuals they should not have. Additionally, marketeers and individuals seeking to make a quick buck by flipping real estate now find themselves unable to cover their margins. It all amounts to a mess, but not the end of the world.

Even though democrat pundits would have us believe the bottom is dropping out, the Dow remains solid, volatile, but solid. We aren't seeing a spill over into other sectors of the market and the banks are still loaning money. Albeit they have tightened up their lending standards, which isn't necessarily a bad thing. The market is doing as the market does, It is correcting itself.

Even so the MSM is giddy with story after story of how the "crunch" is going to ruin us all. For the nearly 40 years I've been making money I have heard the same thing numerous times, yet never once have I been directly impacted or has it cost me my life savings. It all comes down to being smart with your finances, which unfortunately a wide margin of we Americans aren't.

Its almost hypocritical to damn Congress for spending like a drunken sailor when the majority of Americans are doing the same thing. We as a nation constantly rack up billions of dollars in unneeded personal debt each year. Many times using credit to buy things we can't really afford. And when the first payment comes due, whine because we can't afford to live.

I have no sympathy for anyone who lives in a $2000.00 trailer so that they can barely afford the payments on a $45000.00 vehicle. Or someone who buys a new HDTV when they should be putting that money aside for the future, then scream when the future gets here and they have no money.

The bottom line is Americans need to get smarter financially from top to bottom. We need to apply conservative financial principles and stop spending ourselves into oblivion. If we did we wouldn't have to worry about half of things we do right now. There are always going to be those that through misfortune, not necessarily of their own, who will need help. But the vast majority of problems we face are created by own lack of vision and unwillingness to make the hard choices.

If we were more intelligent with our money then perhaps we wouldn't think we need socialized medicine, or welfare. If we applied conservatism properly these needs could be met without trillion dollar entitlement programs. Work = Money, Money * Financial Prudence = Peace of Mind.

Just like the overall market if we tell ourselves the situation is bad, then bad is all we will see. It applies to our own finances also. No matter how difficult we find the situation we still have choices. We can either make a bad one or a good. We are fortunate enough to live in country that not only allows it, but is founded upon it.