Finally a Reaganite breaks ranks and speaks about reality.
"If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation’s public debt — if honestly reckoned to include municipal bonds and the $7 trillion of new deficits baked into the cake through 2015 — will soon reach $18 trillion. That’s a Greece-scale 120 percent of gross domestic product, and fairly screams out for austerity and sacrifice. Republicans used to believe that prosperity depended upon the regular balancing of accounts — in government, in international trade, on the ledgers of central banks and in the financial affairs of private households and businesses, too. But the new catechism, as practiced by Republican policymakers for decades now, has amounted to little more than money printing and deficit finance — vulgar Keynesianism robed in the ideological vestments of the prosperous classes. This approach has not simply made a mockery of traditional party ideals. It has also led to the serial financial bubbles and Wall Street depredations that have crippled our economy. More specifically, the new policy doctrines have caused four great deformations of the national economy, and modern Republicans have turned a blind eye to each one.
The first of these started when the Nixon administration defaulted on American obligations under the 1944 Bretton Woods agreement to balance our accounts with the world. Now, since we have lived beyond our means as a nation for nearly 40 years, our cumulative current-account deficit — the combined shortfall on our trade in goods, services and income — has reached nearly $8 trillion. That’s borrowed prosperity on an epic scale. It is also an outcome that Milton Friedman said could never happen when, in 1971, he persuaded President Nixon to unleash on the world paper dollars no longer redeemable in gold or other fixed monetary reserves. Just let the free market set currency exchange rates, he said, and trade deficits will self-correct. It may be true that governments, because they intervene in foreign exchange markets, have never completely allowed their currencies to float freely. But that does not absolve Friedman’s $8 trillion error. Once relieved of the discipline of defending a fixed value for their currencies, politicians the world over were free to cheapen their money and disregard their neighbors. In fact, since chronic current-account deficits result from a nation spending more than it earns, stringent domestic belt-tightening is the only cure. When the dollar was tied to fixed exchange rates, politicians were willing to administer the needed castor oil, because the alternative was to make up for the trade shortfall by paying out reserves, and this would cause immediate economic pain — from high interest rates, for example. But now there is no discipline, only global monetary chaos as foreign central banks run their own printing presses at ever faster speeds to sop up the tidal wave of dollars coming from the Federal Reserve. The second unhappy change in the American economy has been the extraordinary growth of our public debt. In 1970 it was just 40 percent of gross domestic product, or about $425 billion. When it reaches $18 trillion, it will be 40 times greater than in 1970. This debt explosion has resulted not from big spending by the Democrats, but instead the Republican Party’s embrace, about three decades ago, of the insidious doctrine that deficits don’t matter if they result from tax cuts. In 1981, traditional Republicans supported tax cuts, matched by spending cuts, to offset the way inflation was pushing many taxpayers into higher brackets and to spur investment. The Reagan administration’s hastily prepared fiscal blueprint, however, was no match for the primordial forces — the welfare state and the warfare state — that drive the federal spending machine. Soon, the neocons were pushing the military budget skyward. And the Republicans on Capitol Hill who were supposed to cut spending exempted from the knife most of the domestic budget — entitlements, farm subsidies, education, water projects. But in the end it was a new cadre of ideological tax-cutters who killed the Republicans’ fiscal religion. Through the 1984 election, the old guard earnestly tried to control the deficit, rolling back about 40 percent of the original Reagan tax cuts. But when, in the following years, the Federal Reserve chairman, Paul Volcker, finally crushed inflation, enabling a solid economic rebound, the new tax-cutters not only claimed victory for their supply-side strategy but hooked Republicans for good on the delusion that the economy will outgrow the deficit if plied with enough tax cuts. By fiscal year 2009, the tax-cutters had reduced federal revenues to 15 percent of gross domestic product, lower than they had been since the 1940s. Then, after rarely vetoing a budget bill and engaging in two unfinanced foreign military adventures, George W. Bush surrendered on domestic spending cuts, too — signing into law $420 billion in non-defense appropriations, a 65 percent gain from the $260 billion he had inherited eight years earlier. Republicans thus joined the Democrats in a shameless embrace of a free-lunch fiscal policy. The third ominous change in the American economy has been the vast, unproductive expansion of our financial sector. Here, Republicans have been oblivious to the grave danger of flooding financial markets with freely printed money and, at the same time, removing traditional restrictions on leverage and speculation. As a result, the combined assets of conventional banks and the so-called shadow banking system (including investment banks and finance companies) grew from a mere $500 billion in 1970 to $30 trillion by September 2008. But the trillion-dollar conglomerates that inhabit this new financial world are not free enterprises. They are rather wards of the state, extracting billions from the economy with a lot of pointless speculation in stocks, bonds, commodities and derivatives. They could never have survived, much less thrived, if their deposits had not been government-guaranteed and if they hadn’t been able to obtain virtually free money from the Fed’s discount window to cover their bad bets. The day of national reckoning has arrived. We will not have a conventional business recovery now, but rather a long hangover of debt liquidation and downsizing — as suggested by last week’s news that the national economy grew at an anemic annual rate of 2.4 percent in the second quarter. Under these circumstances, it’s a pity that the modern Republican Party offers the American people an irrelevant platform of recycled Keynesianism when the old approach — balanced budgets, sound money and financial discipline — is needed more than ever."
David Stockman, Director of the Office of Management and Budget under U.S. President Ronald Reagan.
Source: NY Times
Showing posts with label george bush. Show all posts
Showing posts with label george bush. Show all posts
Friday, August 27, 2010
Monday, August 16, 2010
The Keynesian Endpoint
The new hot topic appears to be the extension of the Bush tax cuts. "Puppet Palin" is pitching it hard.
"Since Keynesian economics is no longer relevant, some are now arguing that tax cuts will save the day. Two of the academic studies we reviewed suggest that tax relief is a much stronger stimulus to the economy than government spending, and under normal circumstances this is probably true. But we are not in a normal economic environment. Even if the tax cuts implemented by George Bush in 2006 are extended by the next Congress, the US will still face the ‘Keynesian Endpoint’. A Government Accountability Office (GAO) report published in January 2010 states the following: “In our Alternative simulation, which assumes expiring tax provisions are extended through 2020 and revenue is held constant at the 40-year historical average; roughly 93 cents of every dollar of federal revenue will be spent on the major entitlement programs and net interest costs by 2020.”12 Extending tax cuts won’t solve anything."
Eric Sprott & David Franklin, Sprott Asset Management
The entire article:
http://www.sprott.com/Docs/MarketsataGlance/07_10%20Fooled%20by%20Stimulus.pdf
"Since Keynesian economics is no longer relevant, some are now arguing that tax cuts will save the day. Two of the academic studies we reviewed suggest that tax relief is a much stronger stimulus to the economy than government spending, and under normal circumstances this is probably true. But we are not in a normal economic environment. Even if the tax cuts implemented by George Bush in 2006 are extended by the next Congress, the US will still face the ‘Keynesian Endpoint’. A Government Accountability Office (GAO) report published in January 2010 states the following: “In our Alternative simulation, which assumes expiring tax provisions are extended through 2020 and revenue is held constant at the 40-year historical average; roughly 93 cents of every dollar of federal revenue will be spent on the major entitlement programs and net interest costs by 2020.”12 Extending tax cuts won’t solve anything."
Eric Sprott & David Franklin, Sprott Asset Management
The entire article:
http://www.sprott.com/Docs/MarketsataGlance/07_10%20Fooled%20by%20Stimulus.pdf
Sunday, July 11, 2010
4th and 15, Where We Are, Where We've Been
In "The Last Call For Alcohol", I tried to provide a historical perspective via "bar parable" on the Super Size Me Era and the beginning of the contraction that begin in 1999. James Quinn from "The Burning Platform" has assembled an incredibly detailed historical summary from 1980 with much data to support. Some excerpts:
"Americans are slowly coming to the realization that unbridled greed is not the same as capitalism. Excessively low interest rates punish savers and senior citizens, while benefitting borrowers, risk takers and Wall Street. Savings leads to investment, while borrowing leads to impoverishment. The actions taken thus far by politicians, government bureaucrats, and the Federal Reserve are the exact opposite of what was required. The next leg down in this Greater Depression will thoroughly discredit those who have promoted a money culture over those virtues that will benefit society in the long run. The current Crisis will require personal sacrifice, renewed community spirit, public consensus, and truth. Failure could prove fatal for our nation. The best of human nature must win out over greed, ignorance, and love of power. Our future hangs in the balance."
"The United States has experienced a three decade long “expenditure cascade”. An expenditure cascade occurs when the rapid income growth of top earners fuels additional spending by the lower earners. The cascade begins among top earners, which encourages the middle class to spend more which, in turn, encourages the lower class to spend more. Ultimately, these expenditure cascades reduce the amount that each family saves, as there is less money available to save due to extra spending. Expenditure cascades are triggered by consumption. The consumption of the wealthy triggers increased spending in the class directly below them and the chain continues down to the bottom. This is a dangerous reaction for those at the bottom who have little disposable income originally and even less after they attempt to keep up with others spending habits. The personal savings rate was 12% in the early 1980s and declined to negative 1% by 2005. The expenditure cascade couldn’t have occurred without easy access to debt. The question that must be asked is, who benefits from debt and who pays?"
"The delusion of the American populace cannot be underestimated. Their worshipping at the altar of materialism and adoration of Hollywood created pop culture was crucial to the societal delusion. Without the corporate consumerism marketing machine, an unlimited amount of credit provided by bankers, and ultra-low interest rates supplied by the Federal Reserve, the delusions of grandeur could not have been realized."
"We have taken the acquisition of material belongings so seriously that it became what we worked for. Material possessions defined who we are. When we lose these possessions we no longer have the identity that we have blindly created by collecting “things”. My God, what have we done?"
I highly recommend that everyone read this entire article. Long, but full of important details defining where we've been and where we are.
http://theburningplatform.com/blog/2010/06/13/two-decades-of-greed-the-unraveling-featured-article/#comments
"Americans are slowly coming to the realization that unbridled greed is not the same as capitalism. Excessively low interest rates punish savers and senior citizens, while benefitting borrowers, risk takers and Wall Street. Savings leads to investment, while borrowing leads to impoverishment. The actions taken thus far by politicians, government bureaucrats, and the Federal Reserve are the exact opposite of what was required. The next leg down in this Greater Depression will thoroughly discredit those who have promoted a money culture over those virtues that will benefit society in the long run. The current Crisis will require personal sacrifice, renewed community spirit, public consensus, and truth. Failure could prove fatal for our nation. The best of human nature must win out over greed, ignorance, and love of power. Our future hangs in the balance."
"The United States has experienced a three decade long “expenditure cascade”. An expenditure cascade occurs when the rapid income growth of top earners fuels additional spending by the lower earners. The cascade begins among top earners, which encourages the middle class to spend more which, in turn, encourages the lower class to spend more. Ultimately, these expenditure cascades reduce the amount that each family saves, as there is less money available to save due to extra spending. Expenditure cascades are triggered by consumption. The consumption of the wealthy triggers increased spending in the class directly below them and the chain continues down to the bottom. This is a dangerous reaction for those at the bottom who have little disposable income originally and even less after they attempt to keep up with others spending habits. The personal savings rate was 12% in the early 1980s and declined to negative 1% by 2005. The expenditure cascade couldn’t have occurred without easy access to debt. The question that must be asked is, who benefits from debt and who pays?"
"The delusion of the American populace cannot be underestimated. Their worshipping at the altar of materialism and adoration of Hollywood created pop culture was crucial to the societal delusion. Without the corporate consumerism marketing machine, an unlimited amount of credit provided by bankers, and ultra-low interest rates supplied by the Federal Reserve, the delusions of grandeur could not have been realized."
"We have taken the acquisition of material belongings so seriously that it became what we worked for. Material possessions defined who we are. When we lose these possessions we no longer have the identity that we have blindly created by collecting “things”. My God, what have we done?"
I highly recommend that everyone read this entire article. Long, but full of important details defining where we've been and where we are.
http://theburningplatform.com/blog/2010/06/13/two-decades-of-greed-the-unraveling-featured-article/#comments
Saturday, June 19, 2010
Same Old Black Gold Story
This week President Obama made a case for focusing on an energy policy. Jon Stewart's research team did an amazing job with this one.
So we leave this video with how much confidence that our fearless leaders will solve the problem. It will take a major crisis much greater than this oil spill to "move this beast".
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| An Energy-Independent Future | ||||
| ||||
So we leave this video with how much confidence that our fearless leaders will solve the problem. It will take a major crisis much greater than this oil spill to "move this beast".
Saturday, May 22, 2010
Cascading Bubbles
For reasons unknown, I've never really liked the term "bubble", but due to a lack of a better term, I'll use it today to illustrate a point. I've always liked the phrase "overshoot and collapse" which is used in the biological realm to explain the rapid growth and subsequent crash in the population of a given species. That's a subject for a later post.
I thought it would be interesting to analyze the impact of the money supply through time on various "bubbles". The chart below illustrates quite beautifully how the money supply (M3-black dash) impacts the rise and fall of all markets. The chart compares 5 asset types: technology, financials, oil, homebuilding, and wheat. These all have experienced drastic "rise and falls" since the mid to late 90's. Many commodities followed the exact pattern, but I used oil and wheat as two examples. Click on the chart for a larger view.
Observations that can be made:
M3 (money supply) rises in the early 80's (Reagan), flattens in late 80's (Bush I), rapidly accelerates in 1995 (Clinton), and keeps rising rapidly after 2000 (Bush II).
Reagan pulls us out of the doldrums not by magical things called "trickle down" or "supply side", but by turning on the "money supply accelerator" in the early 80's. Note the M3 Rate of Change curve on the bottom. A trending up curve indicates a rapidly increasing money supplly while the downtrend is decelerating.
The Great Maestro, Alan Greenspan, pulls off the accelerator in 1988 and Bush I loses re-election.
Note that during the "flat" M3 from 1988-1995, the markets are aligned and flat.
In 1995, Clinton leads the public to believe that he magically makes the deficit disappear and balances the budget. Meanwhile, the money supply starts a significant upward climb. Note the M3 Rate of Change on the bottom of the graph. It rises rapidly.
Subsequent with the rapid rise in M3 in 1995, the markets go into "chaos" mode. The money supply drives the financials and technology through the roof. Note the steepness of the curves after 1995 in all sectors. The end result is the DotCom mania. Now we understand where all of that crazy investment and venture capital money came from!
DotCom crashes only to see the "credit bubble" move into financials, homebuilding, and commodities (oil/wheat). 2001 marks a "new beginning". Same game, but different sectors.
The markets all align in late 2008 subsequent with the steepest rise in M3 Rate of Change. Then they ALL come crashing down. As Robert Prechter with Elliott Wave International has stated, "all the same". Equities and commodities crash together in perfect synchrony.
Money supply has significant impact on the markets. While the Federal Reserve was supposedly created to help "nudge" the market when it needed assistance, the contrary is presented from this 30 year history. After 1995, it looks more like a heroin junky flying up and down.
Sunday, April 18, 2010
Deceitful Mouthpieces And Their Non-Thinking Worshippers
"There were already two fiscal hurricanes churning towards our shores before Obama and his non-critical thinking Democratic minions launched a third storm. No matter how many intellectually deceitful mouthpieces like Paul Krugman, Keith Olbermann, and Sean Hannity ignore the facts, the fiscal foundation of the country is crumbling under the weight of unfunded entitlement promises, out of control government spending and far flung military misadventures. Only someone who is intellectually bankrupt, like Krugman, would declare the National Debt at $8 trillion as a looming disaster when George Bush was President, but declare that a $12 trillion National Debt headed towards $20 trillion isn’t a danger now that Barack Obama is President. Olbermann proclaimed Afghanistan a disastrous misadventure when Bush was President. Now that Obama runs the show, the surge is working and Obama’s brilliant leadership has turned the tide. Hannity never uttered a negative word about a Republican neo-con, the Iraq War or the Afghan strategy between 2001 and 2008. Now he defames Obama on a nightly basis for being weak on Defense, despite that fact that Obama has doubled the troops in Afghanistan and proposed the largest Defense budget in the history of the country. The non-thinking worshippers of these ideologues never question or even reflect upon the facts."
James Quinn, The Burning Platform
Entire article: http://theburningplatform.com/blog/2010/04/04/sunday-bloody-sunday/
James Quinn, The Burning Platform
Entire article: http://theburningplatform.com/blog/2010/04/04/sunday-bloody-sunday/
Thursday, April 8, 2010
The Boogeyman Strikes Again!
Well, the Boogeyman struck again.
"The Qatari diplomat who caused a midair security scare won't face charges after claiming he was trying to light his shoes on fire when it appears he was simply smoking in the bathroom. Passenger onboard United Airlines flight apparently tried to sneak a smoke. More PhotosFederal officials said Mohammed al Modadi was on official business when he boarded United Airlines Flight 663 from Washington to Denver, giving him diplomatic immunity. A law firm spokesman told The Associated Press that al Modadi has been released and was headed back to Washington."
Source: ABC News
"The Qatari diplomat who caused a midair security scare won't face charges after claiming he was trying to light his shoes on fire when it appears he was simply smoking in the bathroom. Passenger onboard United Airlines flight apparently tried to sneak a smoke. More PhotosFederal officials said Mohammed al Modadi was on official business when he boarded United Airlines Flight 663 from Washington to Denver, giving him diplomatic immunity. A law firm spokesman told The Associated Press that al Modadi has been released and was headed back to Washington."
Source: ABC News
The Uniting Force
I'll continue to rant about the wasted time and energy of politics. The "them vs us" battle hasn't been this emotional in a long time. But, I argue that "behind the scenes", those "in charge" are really united. This might explain why after the financial meltdown, there has been ZERO reform. Hmmmmmmmmmmmm...
IN GOLDMAN SACHS WE TRUST????
Dianna Farrell:
Obama Administration: Deputy Director, National Economic Council
Former Goldman Sachs Title: Financial Analyst
Stephen Friedman:
Obama Administration: Chairman, President’s Foreign Intelligence Advisory Board
Former Goldman Sachs Title: Board Member (Chairman, 1990-94; Director, 2005-)
Gary Gensler:
Obama Administration: Commissioner, Commodity Futures Trading Commission
Former Goldman Sachs Title: Partner and Co-head of Finance
Robert Hormats:
Obama Administration: Undersecretary for Economic, Energy and Agricultural Affairs, State Department
Former Goldman Sachs Title: Vice Chairman, Goldman Sachs Group
Philip Murphy:
Obama Administration: Ambassador to Germany
Former Goldman Sachs Title: Head of Goldman Sachs, Frankfurt
Mark Patterson:
Obama Administration: Chief of Staff to Treasury Secretary, Timothy Geitner
Former Goldman Sachs Title: Lobbyist 2005-2008; Vice President for Government Relations
John Thain:
Obama Administration: Advisor to Treasury Secretary, Timothy Geitner
Former Goldman Sachs Title: President and Chief Operating Officer (1999-2003)
Henry Paulson:
Bush II Administration: Secretary, Treasury 2006 - 2009
Former Goldman Sachs Title: Chairman and CEO (1998-2006)
Neel Kashkari:
Bush II Administration: Assistant Secretary for Financial Stability, Treasury (2008 – 2009)Former Goldman Sachs Title: Vice President, San Francisco; led Information Technology
Security Investment Banking Practice
Reuben Jeffery III:
Bush II Administration: Undersecretary for Economic, Energy and Agricultural Affairs, State Department (2007 –2009)
Former Goldman Sachs Title: Managing Partner Paris until 2002
Security Investment Banking Practice
Robert Steel:
Bush II Administration: Under Secretary for Domestic Finance, Treasury, (2006 – 2008)Former Goldman Sachs Title: Vice Chairman – 2004
Steve Shafran:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Private equity business in Asia until 2000
Edward C. Forst:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Co-head of Goldman’s investment management business
Dan Jester:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Deputy CFO
Kendrick R. Wilson III:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Chairman of Goldman’s financial institutions groups
Joshua Bolten:
Bush II Administration: White House Chief of Staff (2006 – 2009)
Former Goldman Sachs Title: Executive Director, Legal & Government Affairs (1994-99)
Gary Gensler:
Bush II Administration: Undersecretary, Treasury (1999-2001) and Assistant Secretary, Treasury (1997-1999)
Former Goldman Sachs Title: Partner and Co-head of Finance
Robert Rubin:
Bush II Administration: Secretary, Treasury 1995-1999
Former Goldman Sachs Title: Vice Chairman (1987-90)
Robert Zoellick:
Bush II Administration: United States Trade Representative (2001-2005), Deputy Secretary of State (2005-2006), World Bank President (2007 -)
Former Goldman Sachs Title: Vice Chairman, International (2006-07)
William C Dudley:
NY Federal Reserve: Current President/CEO
Former Goldman Sachs Title: Partner and managing director – 2007
Stephen Friedman:
NY Federal Reserve: Former Chairman of the Board – 2009
Former Goldman Sachs Title: Board Member (Chairman, 1990-94; Director, 2005-)
Other Noteworthy Appointees:
Edward Liddy:
Current Title: AIG CEO
Former Goldman Sachs Title: Board Member (Chairman, 1990-94; Director, 2005-)
Duncan Niederauer:
Current Title: Chair/CEO NYSE
Former Goldman Sachs Title: Managing Director – 2007
Malcolm Turnbull:
Current Title: Federal Leader, Liberal Party, Australia
Former Goldman Sachs Title: Partner (1998-2001)
Mark Carney:
Current Title: Governor, Bank of Canada
Former Goldman Sachs Title: Managing Director Goldman Sachs Canada until 2003
David Watson:
Current Title: Monetary Policy Committee, Bank of England
Former Goldman Sachs Title: Chief European economist
Romano Prodi:
Current Title: Prime Minister of Italy (1996-1998 and 2006-2008) and President of the European Commission (1999-2004)
Former Goldman Sachs Title: Paid adviser/consultant 1990
– 1993
Mario Draghi:
Current Title: Governor of the Bank of Italy (2006- )
Former Goldman Sachs Title: European Deputy Chairman/Partner until 2006
Massimo Tononi:
Current Title: Italian Deputy Treasury Chief (2006-2008)
Former Goldman Sachs Title: Partner 2004 - 2006
Source: http://the-classic-liberal.com/white-goldman-sachs-house/
IN GOLDMAN SACHS WE TRUST????
Dianna Farrell:
Obama Administration: Deputy Director, National Economic Council
Former Goldman Sachs Title: Financial Analyst
Stephen Friedman:
Obama Administration: Chairman, President’s Foreign Intelligence Advisory Board
Former Goldman Sachs Title: Board Member (Chairman, 1990-94; Director, 2005-)
Gary Gensler:
Obama Administration: Commissioner, Commodity Futures Trading Commission
Former Goldman Sachs Title: Partner and Co-head of Finance
Robert Hormats:
Obama Administration: Undersecretary for Economic, Energy and Agricultural Affairs, State Department
Former Goldman Sachs Title: Vice Chairman, Goldman Sachs Group
Philip Murphy:
Obama Administration: Ambassador to Germany
Former Goldman Sachs Title: Head of Goldman Sachs, Frankfurt
Mark Patterson:
Obama Administration: Chief of Staff to Treasury Secretary, Timothy Geitner
Former Goldman Sachs Title: Lobbyist 2005-2008; Vice President for Government Relations
John Thain:
Obama Administration: Advisor to Treasury Secretary, Timothy Geitner
Former Goldman Sachs Title: President and Chief Operating Officer (1999-2003)
Henry Paulson:
Bush II Administration: Secretary, Treasury 2006 - 2009
Former Goldman Sachs Title: Chairman and CEO (1998-2006)
Neel Kashkari:
Bush II Administration: Assistant Secretary for Financial Stability, Treasury (2008 – 2009)Former Goldman Sachs Title: Vice President, San Francisco; led Information Technology
Security Investment Banking Practice
Reuben Jeffery III:
Bush II Administration: Undersecretary for Economic, Energy and Agricultural Affairs, State Department (2007 –2009)
Former Goldman Sachs Title: Managing Partner Paris until 2002
Security Investment Banking Practice
Robert Steel:
Bush II Administration: Under Secretary for Domestic Finance, Treasury, (2006 – 2008)Former Goldman Sachs Title: Vice Chairman – 2004
Steve Shafran:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Private equity business in Asia until 2000
Edward C. Forst:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Co-head of Goldman’s investment management business
Dan Jester:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Deputy CFO
Kendrick R. Wilson III:
Bush II Administration: Advisor on setting up TARP to Treasury Secretary, Henry Paulson 2008
Former Goldman Sachs Title: Chairman of Goldman’s financial institutions groups
Joshua Bolten:
Bush II Administration: White House Chief of Staff (2006 – 2009)
Former Goldman Sachs Title: Executive Director, Legal & Government Affairs (1994-99)
Gary Gensler:
Bush II Administration: Undersecretary, Treasury (1999-2001) and Assistant Secretary, Treasury (1997-1999)
Former Goldman Sachs Title: Partner and Co-head of Finance
Robert Rubin:
Bush II Administration: Secretary, Treasury 1995-1999
Former Goldman Sachs Title: Vice Chairman (1987-90)
Robert Zoellick:
Bush II Administration: United States Trade Representative (2001-2005), Deputy Secretary of State (2005-2006), World Bank President (2007 -)
Former Goldman Sachs Title: Vice Chairman, International (2006-07)
William C Dudley:
NY Federal Reserve: Current President/CEO
Former Goldman Sachs Title: Partner and managing director – 2007
Stephen Friedman:
NY Federal Reserve: Former Chairman of the Board – 2009
Former Goldman Sachs Title: Board Member (Chairman, 1990-94; Director, 2005-)
Other Noteworthy Appointees:
Edward Liddy:
Current Title: AIG CEO
Former Goldman Sachs Title: Board Member (Chairman, 1990-94; Director, 2005-)
Duncan Niederauer:
Current Title: Chair/CEO NYSE
Former Goldman Sachs Title: Managing Director – 2007
Malcolm Turnbull:
Current Title: Federal Leader, Liberal Party, Australia
Former Goldman Sachs Title: Partner (1998-2001)
Mark Carney:
Current Title: Governor, Bank of Canada
Former Goldman Sachs Title: Managing Director Goldman Sachs Canada until 2003
David Watson:
Current Title: Monetary Policy Committee, Bank of England
Former Goldman Sachs Title: Chief European economist
Romano Prodi:
Current Title: Prime Minister of Italy (1996-1998 and 2006-2008) and President of the European Commission (1999-2004)
Former Goldman Sachs Title: Paid adviser/consultant 1990
– 1993
Mario Draghi:
Current Title: Governor of the Bank of Italy (2006- )
Former Goldman Sachs Title: European Deputy Chairman/Partner until 2006
Massimo Tononi:
Current Title: Italian Deputy Treasury Chief (2006-2008)
Former Goldman Sachs Title: Partner 2004 - 2006
Source: http://the-classic-liberal.com/white-goldman-sachs-house/
Friday, March 26, 2010
Eating Ice Cream In The Forest
Boy, the angry mob just got more angry this week. "Obamacare" set off the latest fireworks. As our VP said, "This is a big f**king deal!". Way to go Joe.
To state once again, being non-partisan, one can analyze a situation with a non-biased and unemotional perspective. The emotions are riding high these days. My email box is "on fire" the past few days with emails about Hitler, the collapsing US empire, and some cute little tales about kids running for office by promising ice cream.
So my question is, "does anyone think for themselves anymore?". All I hear from friends, associates, strangers, and the yahoos on TV is regurgitated political garbage. Does anyone actually research anything and form their own opinion? I can tell you exactly what a Republican or Democrat will say today. I'm not sure if "sheeple" or "zombies" is the best analogy.
As predicted on election day, President Obama will be the fall guy. A 28 year cycle has come to an end and someone has to hold the "hot potato". The fear is just amazing. Can you imagine if Obama passed the Patriot Act??? Wow. The Hitler emails would be ten fold.
Dubya was smart. He created the great "boogeyman" to scare the sheeple before he passed the Patriot Act and invaded the richest oil region in the world. Herding mammals "come together" when in fear. Once tightly together, selling these initiatives was easy. Most don't even know what the Patriot Act is or allows because they were hiding from the boogeyman when it quickly passed through our governing bodies.
Why didn't anyone protest that Dubya created the least jobs per year than any president in the last 11 presidents?
http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/tab/article/
Over Bush's two terms, the Dow Jones Industrial Average dropped 28%! Over eight years, you not only didn't grow your retirement account, but you lost over a quarter of it. So, again I ask, "where was the tea party?".
When Bush left office, the US had $55,000,000,000,000 of unfunded liabilities! That's 55 trillion! He left us with record debt. Where was the tea party? You might want to make the 32.5 minute investment again:
http://randomroving.blogspot.com/2009/02/325-minute-investment.html
Passing legislation for healthcare is a little more challenging. How do you create a "healthcare boogeyman". The "haves" already have coverage, so they risk losing something. Obama didn't take my advice to complete some short passes first!
Where is the Wall Street boogeyman? There has not been one change in the SEC rules since the meltdown. Amazing isn't it? Where are the teaparty protestors? I guess that they were not Madoff or Stanford victims. Why doesn't Sean, Ann, Glenn, and Bill throw a tea party asking for changes in the SEC? You don't want to know the answer to that one.
Well folks, stay calm and realize that there's more to come. Keep "the cycle model" in mind when you watch the news at night. If you know the "hurricane is coming", you won't be surprised and panic. It's time to distinguish the "forest from the trees".
To state once again, being non-partisan, one can analyze a situation with a non-biased and unemotional perspective. The emotions are riding high these days. My email box is "on fire" the past few days with emails about Hitler, the collapsing US empire, and some cute little tales about kids running for office by promising ice cream.
So my question is, "does anyone think for themselves anymore?". All I hear from friends, associates, strangers, and the yahoos on TV is regurgitated political garbage. Does anyone actually research anything and form their own opinion? I can tell you exactly what a Republican or Democrat will say today. I'm not sure if "sheeple" or "zombies" is the best analogy.
As predicted on election day, President Obama will be the fall guy. A 28 year cycle has come to an end and someone has to hold the "hot potato". The fear is just amazing. Can you imagine if Obama passed the Patriot Act??? Wow. The Hitler emails would be ten fold.
Dubya was smart. He created the great "boogeyman" to scare the sheeple before he passed the Patriot Act and invaded the richest oil region in the world. Herding mammals "come together" when in fear. Once tightly together, selling these initiatives was easy. Most don't even know what the Patriot Act is or allows because they were hiding from the boogeyman when it quickly passed through our governing bodies.
Why didn't anyone protest that Dubya created the least jobs per year than any president in the last 11 presidents?
http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/tab/article/
Over Bush's two terms, the Dow Jones Industrial Average dropped 28%! Over eight years, you not only didn't grow your retirement account, but you lost over a quarter of it. So, again I ask, "where was the tea party?".
When Bush left office, the US had $55,000,000,000,000 of unfunded liabilities! That's 55 trillion! He left us with record debt. Where was the tea party? You might want to make the 32.5 minute investment again:
http://randomroving.blogspot.com/2009/02/325-minute-investment.html
Passing legislation for healthcare is a little more challenging. How do you create a "healthcare boogeyman". The "haves" already have coverage, so they risk losing something. Obama didn't take my advice to complete some short passes first!
Where is the Wall Street boogeyman? There has not been one change in the SEC rules since the meltdown. Amazing isn't it? Where are the teaparty protestors? I guess that they were not Madoff or Stanford victims. Why doesn't Sean, Ann, Glenn, and Bill throw a tea party asking for changes in the SEC? You don't want to know the answer to that one.
Well folks, stay calm and realize that there's more to come. Keep "the cycle model" in mind when you watch the news at night. If you know the "hurricane is coming", you won't be surprised and panic. It's time to distinguish the "forest from the trees".
Thursday, October 29, 2009
Last Call For Alcohol
After taking a roadtrip this past weekend to LSU with my kids, it brought back a lot of great college memories. Something about the smell of bourbon in Tiger Stadium triggered some flashbacks.
I compare our current economic times with a massive hangover. If there's one thing I learned after my 4.5 years at LSU, it is that a great party is always followed by a bad hangover. I would surmize that the "fun" and the "hangover" have a linear relationship. You can't just have the fun without the pain to follow. That's "natural law" of alcohol consumption.
We have to go back to 1982 to really understand when and how this party really started. Bartender Ronnie known by most bar patrons as "The Gipper" kicked the party off with a nice happy hour. Drinks were 2 for 1 and the party quickly kicked into high gear. Bar owner at the time, Mr. Volcker, loved the happy hour concept. Getting the patrons drunk early led to great revenues later in the evening.
When Ronnie announced that his time was up, the bar patrons asked for a bartender just like him. In steps George I who had all intentions of continuing the party. Unfortunately, the bar was sold just prior to Bush I starting his shift. Early in the bar ownership, Mr. Greenspan was more cautious with his drink specials. In 1987, a patron drove home drunk, crashed, and sued the bar.
Due to George's limitations, the bar patrons asked for a new bartender. In steps Bubba. He knew what the patrons liked. He restarted the cheap drinks and threw in a few dancing girls and free cigars. The party went into overdrive. Everyone was intoxicated and the drinks kept pouring and pouring. The law only allowed bartenders to serve for so many hours, so in steps new bartender George II.
At first, the patrons were cautious, but after seeing him beat up some unruly patrons, everyone got on board and the party continued. Bar fights started to breakout more often during George II's shift, but the alcohol kept flowing so the crowd continued to dance the night away. The bar ownership had changed one more time, but the new owner, Mr. Bernanke, promised that they were going to "party like it was 1999!". To deal with the fighting thugs, he just hired a bunch of massive bouncers to keep the crowd in line.
Some wise patrons decided that they had consumed enough for one night and they departed for home. The bar just didn't feel the same to them anymore. While they missed out on the wildest part of the night, they travelled home safely and quickly relaxed in the comfort of their home. George II, like Bubba, had to end his shift, but the remaining patrons were about to kick it up one more notch.
The new bartender, Barack, shows up and announces "tequila shots are 2 for 1 for the rest of the night!". Many hours into the partying, the patrons are so intoxicated they don't know right from left. Tequila is pouring everywhere and the bar is in high gear. Dancing and singing, the patrons don't want the night to end. Barry was so cool of a bartender, that he even drank beer with the patrons.
Without warning, the lights come on, and someone announces on the PA system, "last call for alcohol". There's a frenzy as everyone races to the bar to get one final round of tequila from Barack. Due to the limited time left, there is a lot of pushing and shoving. Everyone knows that all won't be able to sip one final round of tequila, salt, and lime. One patron yells, "one more body shot please!". The bar finally closes. Being daily savings time night, it was able to stay open one extra hour. One extra hour of tequila seemed like a great gift at 2 a.m.
At 3 a.m. the real partiers headed for their cars and the drunken ride home. Two were killed as they crashed head-on into a tree. Most were blessed to arrive home safely despite their inebriated condition. Sleep came and lasted well into the next morning.
As the bar patrons awoke, their head throbbed, and their muscles ached. Their mouths were so dry, they hardly could speak. They quickly questioned the decisions from the night before. One yelled "Why did we do those tequila shooters?". The other yelled back "Why did we do four rounds of those tequila shooters?". The third yelled "because it tasted good my friends!".
As the day wore on and the hangover continued, some started to get angry at the bartenders from the night prior. "They knew we were drunk. Why would they keep serving us?". Another stated "That last dude Barack should have never sold tequila shots 2 for 1. How could we pass on that?". "Yes, it's his fault one said to another. He just wanted to make the bar more money. He took advantage of us.".
Amazing to all, the same crew ventured into the same bar the next night. They didn't seek out the tequila, but they quickly shifted back into party mode. The weekend consisted of two nights, and they wanted to get their share.
THE END
So I ask, when will we hear "last call for alcohol!". Be proactive and head home from "the bar" early. Take some tylenol before bedtime and drink a lot of water! The party was fun and we all took part. Blaming the last bartender is cowardly and irresponsible. If you want to blame any, you have to blame them all. Remember, it all started at 2 for 1 happy hour. Don't blame the bartenders for your own decisions.
I compare our current economic times with a massive hangover. If there's one thing I learned after my 4.5 years at LSU, it is that a great party is always followed by a bad hangover. I would surmize that the "fun" and the "hangover" have a linear relationship. You can't just have the fun without the pain to follow. That's "natural law" of alcohol consumption.
We have to go back to 1982 to really understand when and how this party really started. Bartender Ronnie known by most bar patrons as "The Gipper" kicked the party off with a nice happy hour. Drinks were 2 for 1 and the party quickly kicked into high gear. Bar owner at the time, Mr. Volcker, loved the happy hour concept. Getting the patrons drunk early led to great revenues later in the evening.
When Ronnie announced that his time was up, the bar patrons asked for a bartender just like him. In steps George I who had all intentions of continuing the party. Unfortunately, the bar was sold just prior to Bush I starting his shift. Early in the bar ownership, Mr. Greenspan was more cautious with his drink specials. In 1987, a patron drove home drunk, crashed, and sued the bar.Due to George's limitations, the bar patrons asked for a new bartender. In steps Bubba. He knew what the patrons liked. He restarted the cheap drinks and threw in a few dancing girls and free cigars. The party went into overdrive. Everyone was intoxicated and the drinks kept pouring and pouring. The law only allowed bartenders to serve for so many hours, so in steps new bartender George II.
At first, the patrons were cautious, but after seeing him beat up some unruly patrons, everyone got on board and the party continued. Bar fights started to breakout more often during George II's shift, but the alcohol kept flowing so the crowd continued to dance the night away. The bar ownership had changed one more time, but the new owner, Mr. Bernanke, promised that they were going to "party like it was 1999!". To deal with the fighting thugs, he just hired a bunch of massive bouncers to keep the crowd in line.
Some wise patrons decided that they had consumed enough for one night and they departed for home. The bar just didn't feel the same to them anymore. While they missed out on the wildest part of the night, they travelled home safely and quickly relaxed in the comfort of their home. George II, like Bubba, had to end his shift, but the remaining patrons were about to kick it up one more notch.
The new bartender, Barack, shows up and announces "tequila shots are 2 for 1 for the rest of the night!". Many hours into the partying, the patrons are so intoxicated they don't know right from left. Tequila is pouring everywhere and the bar is in high gear. Dancing and singing, the patrons don't want the night to end. Barry was so cool of a bartender, that he even drank beer with the patrons.Without warning, the lights come on, and someone announces on the PA system, "last call for alcohol". There's a frenzy as everyone races to the bar to get one final round of tequila from Barack. Due to the limited time left, there is a lot of pushing and shoving. Everyone knows that all won't be able to sip one final round of tequila, salt, and lime. One patron yells, "one more body shot please!". The bar finally closes. Being daily savings time night, it was able to stay open one extra hour. One extra hour of tequila seemed like a great gift at 2 a.m.
At 3 a.m. the real partiers headed for their cars and the drunken ride home. Two were killed as they crashed head-on into a tree. Most were blessed to arrive home safely despite their inebriated condition. Sleep came and lasted well into the next morning.
As the bar patrons awoke, their head throbbed, and their muscles ached. Their mouths were so dry, they hardly could speak. They quickly questioned the decisions from the night before. One yelled "Why did we do those tequila shooters?". The other yelled back "Why did we do four rounds of those tequila shooters?". The third yelled "because it tasted good my friends!".
As the day wore on and the hangover continued, some started to get angry at the bartenders from the night prior. "They knew we were drunk. Why would they keep serving us?". Another stated "That last dude Barack should have never sold tequila shots 2 for 1. How could we pass on that?". "Yes, it's his fault one said to another. He just wanted to make the bar more money. He took advantage of us.".Amazing to all, the same crew ventured into the same bar the next night. They didn't seek out the tequila, but they quickly shifted back into party mode. The weekend consisted of two nights, and they wanted to get their share.
THE END
So I ask, when will we hear "last call for alcohol!". Be proactive and head home from "the bar" early. Take some tylenol before bedtime and drink a lot of water! The party was fun and we all took part. Blaming the last bartender is cowardly and irresponsible. If you want to blame any, you have to blame them all. Remember, it all started at 2 for 1 happy hour. Don't blame the bartenders for your own decisions.
Wednesday, October 28, 2009
So Sane That It Seems Insane
"The neo-cons who dominated the administration of George W. Bush seized the 9/11 terrorist attack as a once in a lifetime opportunity to change the world. In doing so, they have used fear, visions of mushroom clouds, and promises of protection and safety to convince the American people to give up their few remaining civil liberties. The Patriot Act was rammed down our throats in the months following 9/11. Anyone who would vote against such a bill was branded un-patriotic. It passed the Senate by a vote of 98 to 1. It passed the House by 357 to 66. Only 3 Republicans voted against The Patriot Act. Three Republicans had the courage to stand up for the Constitution. Ron Paul, from Texas, was one of them. His belief cannot be any clearer: 'Everything we have done in response to the 9-11 attacks, from the Patriot Act to the war in Iraq, has reduced freedom in America.' The role of government is to protect American citizens’ privacy, not violate it. Since 9/11 all American citizens are considered suspect until proven otherwise by some bureaucratic thug in the Department of Homeland Security. The Eye (think Mordor) of the U.S. government is focused inwards towards its own citizens under the guise of protecting us from unknown bogeymen terrorists. We are no safer, with less freedom, and buried under more debt. Mr. Paul’s reasoning and adherence to the Constitution of the United States is so sane that it seems insane to the criminals running our asylum (aka government) today. We live in a bizzaro world where doing the opposite of what we should be doing is considered the right thing to do. Liberty is not some antiquated concept in the ether of history."
James Quinn
James Quinn
Thursday, October 1, 2009
Tremors Abound
Today the Associated Press reports:
"The Secret Service has determined that a juvenile was behind the online survey that asked whether people thought President Barack Obama should be assassinated, an agency spokesman said Thursday. No criminal charges will be filed against the juvenile or the juvenile's parents, spokesman Edwin Donovan said. Donovan would not identify the names of the child or parents or say where they are from. The poll, posted Saturday on Facebook, was taken off the popular social networking site quickly after company officials were alerted to its existence. But, like any threat against the president, Secret Service agents took no chances. The poll asked respondents "Should Obama be killed?" The choices: No, Maybe, Yes, and Yes if he cuts my health care."
"Obama has a bright future. I hope for his sake that he loses, because he will be the “fall guy” and historically during “inflection points” those presidents have been the recipients of bullets (Lincoln, McKinley, Kennedy, Reagan). The 'mob' has emerged and they’re seeking someone to lynch (ask Martha Stewart, George Bush, Jeff Emmelt, Ben Bernanke, and Brittany Spears)." Random Roving - June 30, 2008
Article source:
http://www.google.com/hostednews/ap/article/ALeqM5iSHdC8oUo_rn0oPC-cZ9oVqaFIGgD9B2B5000
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