Archive for September 9, 2008
I hope this does not offend any people. My personal opinion of Code Pink is that they go too overboard in their protesting the Bush Administration.
On Redstate, I found a post on Code Pink people dressed up in crazy outfit and trying to get ordinary American’s attention that Sarah Palin is for prolonging the Iraq War and supports oil companies.
The problem is most people are turned off by their tactics even though their message might be the truth. This is a group that might have the right message but use bad tactics to try communicate to the American their cause. When people like me labels them as crazy, that shows a lot of people find their tactics to be tasteless.
Code Pink needs to refocus how they market their message to the American public. Yelling during congressional hearings and wearing crazy outfits is not going to turn Joe Blow in Kansas towards your cause.
If they truly want to be effective, they need to repackage their message and their tactics for promoting their message to the American people. They do not need to change the content of their message only the way it is packaged and how it promoted to the American people.
What is going on with Freddie Mac and Fanny Mae is scary? Yesterday, I heard a frightening piece on Beneath of the Surface (KPFK’s drive-time public affair show) and I was very worried. The thing that I stated to myself, “Thank you Lord! I do not own a house”
Today, I was walking talk to a manager that works at NASA this morning and he was stating how low home price were getting. I said “Yeah, I will think about buying”. But then, my mind flashed back to the Freddie Mac and Fanny Mae piece that I heard on Beneath the Surface last night. Then, I start to rethink what I do.
During my launch, I started to read some pieces from Forbes and it downright was scary. Here some clips from it
“sucker’s rally–that’s the pungent opinion of New York University economist Nouriel Roubini about the dramatic rally in stock prices in the wake of the Treasury bailout of Fannie Mae and Freddie Mac.
It’s a trap, warns Roubini, because investors face a severe recession well into 2009, and both consumers and financial institutions are still massively leveraged.
Roubini is a purist about attacking the bailout for giving current investors an equity stake while supporting the gargantuan debt of Fannie Mae (nyse: FNM – news - people ) and Freddie Mac (nyse: FRE – news - people ) so as not to trigger troublesome losses for the foreign central banks and institutions that own vast amounts of Fannie and Freddie debt. What particularly agitates Roubini is the Treasury supporting bonds that yield even more than its own debt even though Freddie and Fannie instruments are riskier
Foreigners own 39% of all asset-backed securities in the U.S. and would bear 39% of any mark-to-market write-downs associated with those securities. That’s 39% of $5 trillion, or $2 trillion–double the losses forecast for all financial institutions. This makes the savings and loan bailout and the 1990 recession look like a minor irritation to the financial system and economy in comparison”
Yowsers! I say. The price on the US Treasury! Huge I say. Here is exercept that discusses that
The realistic-pessimistic Roubini is predicting the need for another even more expensive bailout by Uncle Sam. This will be a multiple of the $29 billion for Bear Stearns in March and the $200 billion for Freddie and Fannie, he believes. This will be caused by the need to bail out the overload of debt held by “shopped-out, saving-less and debt-burdened U.S. consumers.”:
We must do this or we will have next Great Depression
Take it off the consumer’s balance sheet or from the banks’ balance sheet and place it in a new federal vehicle such as those that existed during the 1930s. This major and controversial public policy step will deal with the crisis of solvency of institutions as well as individuals. By reducing their debts, Uncle Sam will stabilize their solvency.
“Investors believe this is a liquidity crisis, when it’s really a solvency crisis,” says Roubini, who offers a dire outlook as a consequence of inaction. “If we don’t do this, the nation could face another period like the Depression of the 1930s.”"
After reading this article, I think will rethink about the idea getting the condo and just keep on living with my folks.