BULLSEYE: GINGRICH HITS THE MARK - TO MARKET

Finally Some Real Solutions

It is so refreshing to turn on the TV and actually hear some rational strategy to help clean up this financial mess. Federalized accounting rules and Clinton era loan programs for the underprivileged fueled the car that hit the Wall Street. Not to say greed didn’t play a major role and the confidence in the US housing markets and the loan portfolios a key to the meltdown, but Mark to Market rules understated much of the value of mortgage portfolios that resided on the balance sheets of our major institutions. This required them to set very low and unrealistic values for mortgage portfolios that cause a major reserve problem, devalue businesses, and broke the back of companies like Merrill Lynch, Lehman Brothers and many banks. This one requirement has caused so much turmoil and forcing banks to lend money to risky home owners under laws passed under Clinton created a large part of our perfect storm.

Was Newt Gingrich correct in his idea to remove the Mark to Market provision? You can bet the farm on that one. With all the problems in our markets and the worst decline on Wall Street in history did the Lawmakers make the right choice by killing a bill, all be it very necessary, to shore up the economy? YES! The bill was laden with such a heavy burden that even the Democrats with their hold on power in the House couldn’t get a huge swath of their own team to pass it. The issue then of course became political as Democrats blamed Republicans for the debacle while the public was outraged and the markets collapsed. The Republicans since the beginning have a much better plan that would have made the bill solid and financially attractive.

Mark to Market reform would alone shore up many banks’ asset positions by valuing those portfolios on the books properly, not at a hugely depressed value, allowing their reserve requirements to be met as their balance sheets would became more healthy. This would free up hundreds of billions of liquidity for banks and other institutions almost overnight. Also, repealing the forced laws on banks to lend to under privileged home owners would also change bank requirements to lend to risky homeowners that was also at the root of the financial meltdown. So what the heck is going on in Washington?

My conclusion is that this Bill will pass but not before some compelling financial strategies are in place. Lending not buying and insuring can relieve a lot of the problem although some portfolios need to be bought. Also, it is critical that this includes removal of the Mark to Market and federal home loan programs that force banks to do risky lending. I believe simply removing mark to Market provisions alone would hugely advantage our institutions and thus bring huge liquidity back into the market. If lawmakers can’t see this as a major piece of the legislation and ongoing reform then we are going to remain in financial jail so to speak held captive by the undervalued assets that the banks and financial institutions hold. Washington better be listening because this one move can turn the economy around despite the meltdown.

I TOLD YOU THERE WAS ANOTHER $7000 BILLION HANGING OUT THERE!

BUT WHERE ARE ALL THE OTHER SHOES THAT WILL DROP!

Do we really think $700 billion will be the end! What about the education loan, credit card, auto relief programs. Even worse what about the holiday season where our credit addicted country and its consumers won’t have access to the dollars to support the other sectors of the economy. Although the FED is urging the political machine to act and act swiftly the world has lost its confidence in the American markets already. And wait there is more. I assure you theBad Asset Trust will buy more loans and have more dollars printed to support the other sectors of the economy. I say $1 trillion plus up to $1.5 trillion. That will put our deficit close to $11 trillion. I wonder if our citizens even realize the magnitude of that rock around our neck.

What if the FED and politicians bantering around and putting all sorts of stipulations in a bill doesn’t work. Financial meltdown! Worse if we lose our world credit rating and counties don’t buy our national debt and interest so we can simply refinance it and lose faith in our dollar what would happen then? Our economic collapse.

Yes we are facing the worst crisis in American history. We a liken it to the Great Depression but it’s much worse because the world markets being connected and the dollars are so much bigger it is staggering. As the FED prints money night and day to support the problems what is happening to the US dollar. Our value is eroding and fast and already world government that hold hoards of currency are looking to alternatives for trade. What if the dollar was no longer the underlying trade currency? Again boom America is cast into a financial free fall that we cannot print money for and try to buy our way out.

You see we are in a catch 22 thousand. The confluence of so many events that are hitting and roosting here at home means that regardless of the bailout it’s not enough. The Full Faith of the United States Government is waning as Congress is doing the same all over again. The future President will inherit a nightmare and the candidates still haven’t offered a solution like my 10% to clean up the cancer in the American body. Bring in the crash cart for this because it is not over by a long stretch. This will cascade throughout the world and every sector in our economy. We are so far behind the 8 ball with no leadership to fix the issues that I feel compelled to ask every American to oust these politicians in the election and make sure we establish an Office of Economic Defense with a real CEO and team to manage our way out of this over the next decade or our way of life will be halted.

I.O.U.S.A NOT!

USA OWES US!

We have to face the fact that our nation is BANKRUPT! Financially, Spiritually, and Socially! Our cities are crumbling, hopelessness is everywhere, we have created a permanent social underclass, our family values, morals and spiritual compass are being flushed and spinning like our instruments are in the Bermuda Triangle, denigration of our society from within by urban hip hop, Liberal Television, publications and media, fraud, waste and abuse in Washington and an Economic Disaster that we have only seen the beginning of. I want answers and solutions and you should too. Help me get the word out!

The United States Government and its leaders have bankrupted our nation. It is appalling at best but our government and business leaders have gone way too far and I guess we are all supposed to pay and pay and pay for their mistakes, fraud, waste, abuse or power – on and on and on!

IOUSA gave a grave picture of these facts and I believe WE are owed answer and solutions to protect our way of life. We are all shareholders in this nation and must stand up and protect OUR America. If we allow government to do more of the same we will lose international confidence and will be cut off from those nations buying our debt that are keeping the USA from bankruptcy right now. The Freedom guaranteed under the Constitution has been squandered by the Oligarchy that rules our nation as we are more beholden to China, Europe, The Middle East and the world at large.

Don’t you think its time that the people of this nation mobilize and make sure we keep the politicians in check. Why don’t we have an Office of Financial Security with an American CEO to run the country’s finances. I don’t see Congress being able to manage a check book especially not our nation’s. I expect the 10% solution to become a mainstream idea and I hope someone in our government will get the requisite talent and the proper checks and balances in place to get America back on the road to recovery. Unless we help each other rattle the Washington cages the out of control people and special interests will continue to fleece our country. Do you really think we can support the trillions of dollars of guarantees our Government has obligated itself to. NOT and that is not just a nightmare but one we cant wake up from.

I TOLD YOU SO!

BANKS, INVESTMENT BANKS, NOW INSURANCE – AND WAIT MUCH MORE TO COME

I am not a Monday morning quarterback although I have been saying for months this meltdown is going to keep coming and get worse. Of course the insurance industry that re insured many of the mortgage packages sold by banks through brokerage firms like Lehman and Merrill will be hard hit and it’s only just begun with AIG. Everyone is culpable and everyone will get hurt badly and keep getting hurt as I have been saying. I have been a month or two ahead of this curve consistently and not blowing a horn of mine just a trumpet I hope is loud enough to get attention around the issues today and definitely those coming like a train wreck.

But is there more to come? Yes of course! There will be many more bank failures and the imminent horrifying retail season coming up. What will that bring to American businesses? More of the same but worse! The cascade of this meltdown and our national and personal credit addiction is coming home to roost presently. The people out there are limited in their spending power now and this will tighten belts and leave our economy in many sectors dangling on the brink even worse than it is already. We are dependant on consumers to support the various US business by buying services, products and of course Christmas presents. We are also dependant on foreign nations to purchase the paper we issue to run our country backed by the “Full Faith” of our government.

A recession or depression? We are teetering on the brink of not only a Depression but the loss of our credibility as an investment grade nation. What does that mean? Well how can we pay our astronomical debt and interest if the US can’t roll over its interest and issue new debt to pay our creditors? The US is doing exactly what the banks did and for years it has done so. I can’t believe that all involved raiding the American bank didn’t know this was going to come home to hurt our nation. We are extremely vulnerable and the politicians are simply treating each instance but have no plan to cure the cancer our nation suffers from. I put forward the 10% solution again to solve the underlying issue with our economy – the mess that is and is coming is much worse than the daily headlines and can’t be stopped now.

We are at WAR. The day is upon this nation that is unavoidable and we can not continue to do business as usual. Unless our markets and debt is addressed massively, urgently and with massive force the rattling of the banks, insurance companies and soon retail will be the beginning. The end will come when we get cut off or our borrowing rates get so out of control that the US itself gets caught in its own death spiral.

Economy bonds like war bonds! 10% of asset allocations in the pensions, 401k’s etc.. to buy back all US debt? Is this too simple to make it to Washington or am I missing something? Incremental solutions and fixes can no longer hold off the Visigoths – we have a Clear and Present danger to our nation and on TV all I see is pandering and sales pitches that cant possibly be the solution. I hope listeners can really hear the facts and solutions before it’s too late.

AMERICA'S DRUNK DRIVERS FINALLY WRECKED THE CAR!

POLITICIANS AND THE FED HIT A HUGE WALL STREET AND USING BAND AIDS TO TREAT THE WOUNDS!

Lehman Brothers, another sacred American institution, is in collapse. Freddie and Fannie have little hope of being saved. And America is throwing band Aids one by one on issues and avoiding radical treatment to save our economy. What are our leaders doing and why at this grave time is it politics as usual?

A Bridge to Nowhere! Who cares. Lies and accusations are being tossed around the emergency room. The car wreck already happened and the American body is traumatized. Where are the surgeons that can fix this thing because I don’t see anything coming across the tube that makes me feel like politicians actually get it and are in touch. The banter continues and the brand lifts are being ridden on top of the big tidal wave crashing into Wall Street and still we bury our heads only to emerge each time a crisis hits. The meltdowns will continue to hit the market and keep coming. Even worse just wait until the retail season is upon us then we will be in really big trouble as the trickle down of the banking collapse hits home worse than ever and will inflict damage on every industry here. America has reached its breaking point. The FED has to keep wheeling the crash cart in just to keep the heart beating but that’s not going to keep us alive.

Our Government cannot support the banking meltdown. Our institutions could rally with an outcry of American resilience but I don’t see anyone mobilizing the leaders of all of our industries together to solve our own problems and we have them all over. Auto, Airline, Energy, Financial, Services, Retail are all getting pounded and we are allowing foreign governments entry into our system to take over. So what of McCain and Palin, Barrack and Biden! Someone, somewhere needs to do something and not just simple triage and some stitches – this is open heart surgery and BRAIN TRAUMA.

I say brain trauma because we have had to of lost our minds to let our economy keep melting and our politicians keep shoveling the same crap down our throats over the TV. This is clearly insane and by any measure the people driving that car that wrecked must have been drunk as Bush said and politicians were riding shotgun. We are hooked up to life lines from across the world and our government just hopes if it keeps on “GUARANTEEING” more and more debt that it will all be ok! Well it’s not.

I offered 2 simple solutions:

1. The 10 percent plan to use already invested capital from large institutions to pool enough money together to eliminate our debt and put massive liquidity into the markets. They have to invest 100% of the money so why not invest our economic liberation. The markets would for certain go through the roof – EVERYONE WINS! Especially you and me.

2. Economy bonds for Americans to become a savings nations! Bonds can be issues for some tax paid into the government whereby the government still gets the money and our citizens begin to take stock in our nation again. We sold WAR bonds when our freedom was jeopardized why not Economy Bonds.

This is WAR after all – Economic War! Our national security is certainly at risk and the heart of America which is our economy is sputtering. Regardless of how many times we can jump start it the trauma will still be there unless someone fixes our broken body. I am pleading with everyone to just take a simple look above and realize the power we can place back in our hands and how we can step up and let America take control of its destiny and rise above the political banter to attack the most serious of issues.

WHY THE GOVERNMENT HAS TO TAKE OVER FREDDIE AND FANNIE AND MCCAIN HAS TO BE ELECTED

Freddie, Fannie, many more and it is not over. Wall Street has to have McCain!

Can the government actually afford to take over and support Freddie and Fannie. Answer! absolutely not! There is just way too much money and too many mortgages to shore up. But despite the fact that necessary steps had to be taken and unfortunately incrementally only reinforces the fact that our market is losing luster and the world’s confidence is waning in light of the meltdown.

So who cares? Everyone! That’s why the election is also crucial and why the people may love Barrack, even in Europe, but the fact is he will crater the economy if elected. The Wall Street crowd and many overseas will just puke if his tax plans are implemented. It may help the middle class by redistribution of wealth but the economy is only supported by their spending not kept afloat in a volatile and dangerous world economy.

If confidence is lost in American markets just think of the catastrophic issues it would cause. In the early 90’s Japan hinted at selling some government securities and our markets cratered. Today, only one of the major debt holders in the world would need to balk and either raise the interest demanded on US securities or just not buy new issues. It is appalling to think how fragile our economy is and that’s why the government must intervene. The government must keep the markets afloat long enough to the see this through and to keep all the panicked investors here and abroad under control so they don’t write America off.

We all know the plans and tactics both parties want to use to shore up the economy. America needs to get away from the $200 million brand war for office – eating it all up on TV as its served – and realize that if Barack Obama is elected the markets would immediately react very negatively. McCain on the other hand plans to reduce the corporate tax rate now 2nd highest in the world. He plans to deliver more relief to small business and yes even to US shareholders – you and me. After all we are a capitalist nation and we need a real CEO in place to help bring America back from the brink.

I hate to say it but I have been on air for months telling markets that Freddie and Fannie and hundreds of financial institutions were melting down and the government needed to step in to shore things up. I am disappointed that it is being done incrementally. We need a massive intervention and we need stewardship beyond that will loosen up Wall Street not make the investors skittish because that alone will leave America out dangling in the wind.

PALIN IS THE RIGHT'S RIGHT CHOICE - RIGHT?

Palin is the Right’s Right Choice – Right?

The Historic female VP nomination can and will energize voters in the country. Although McCain didn’t get Tom Ridge or Senator Lieberman he did get a strong and values based partner that has the much needed momentum to compete with a brand like Obama that I call a box of Tide. Palin is getting smeared across the news and yes the vetting process wasn’t thorough enough but frankly I don’t think anyone should throw stones. Look at Obama, born Muslim and being hailed in Europe as the first Muslim born President of the US. He was a Muslim for a long time as was his family and the Koran clearly states leaving Islam and following a different faith is punishable by death. Does anyone see how that can be used by our enemies and how this alone can fuel hatred by radicals against the United States.

There are so many rocks that will be tossed during the election that only obscure track records, experience and visions. IT IS SIMPLY VILE! With so many issues facing our nation the television viewers only see a bunch of dirt being slung and using hundreds of millions of dollars to brand a person properly. In the case of Palin she did have a DWI, 22 years ago! Obama was getting high on dope back then wasn’t he? Palin’s daughter is pregnant at 17. So I guess that’s now Palin’s fault. This is so ridiculous I don’t even want to turn on the TV to hear about it anymore. She fired a government employee and is now under ethics review. So let’s investigate her not the other guy. Do you see how the Democrats are working hard to discredit and smear her before the American public. The Republicans will bash Obama and Biden too but who is getting to the issues.

McCain has bullet proof credentials, patriotism and courage many of us would wish for. Just the Vietnam experience alone is an amazing testimony and of course tongue and cheek being attacked by Democrats. Palin, a dedicated mother with tremendous courage to bear a child they knew was handicapped, is a leader that also comes from a state with 20% of our oil reserves and has the necessary relationships to make sure drilling is economic, safe and can solve some of our energy crisis. But this too will be skewed and attacked.

Why don’t we build a web site that just list credentials and a resume. The business plan of the candidates for this country and the background checks for them. Rick Warren’s platform was the best I have ever seen. Just questions and answers and facts. No BS.

Anyway anything that can be said about McCain and Palin can be said just as bad about Obama and Joe Biden. Its back to the political crap we all see every election year. The debates don’t even do a good job of getting the critical information out it is a platform for stumping to the American people. I see all these headlines about Palin and it seems to me to yet another smoke screen to hide the lack of experience of Obama and the fact that Joe Biden is really the guy that will have the substance. Since we aren’t voting for a VP why do we even let these hate mongers rip into Palin in the first place.

It is sickening!