2/10/11…getting tired


Global equity markets are off today over inflationary fears…or so they say. Meanwhile in Egypt the Opposition Party resigned en masse to protest a plan to have the militiary do more to preserve the peace…i.e. silence the demonstrators. So what is happening in the markets? The dollar is slightly better albeit from an incredibly weak level; yet Gold is off nearly $10, and Crude is weak…still trading in the high $86’s; Bonds too are weak with the two year at 0.82%…just 0.60% a week ago, 10’s 3.69% (hello…what has this done to mortgage rates and applications? Caused them to plunge again!); 30 yer at 4.74%!!! But the big loser, down 1-1/8 is the long TIP…now if you are concerned about inflation why is this the worst perfoming of the bonds? 2.21% from 2% a little more than a week ago. Stocks? Dow futures -46, SPX -7.20, NDQ -20 – just before the U.S. open!

…getting tired of things to say…or is it just amazed that people cannot see what is happening before their very eyes?

A friend sent an article that stated that the GOP is as bad as the Dems at spending and cited the history since Reagan (yes, the great orator but not the great cost-cutter that he has been proclaimed to be). How many times has TB said the same only taken it one step further: NEITHER party is serving the interests of the American people! Only their own and their big donors interests. Yet, people stalwartly defend ‘their party’ in its fight against the opposition.

While both sides distort the truth, with the help of their cable networks, the Rovian GOP has taken it to new levels of half-truths that when caught on snopes.com or factcheck.org, they ignore. When was the last time (or first) that you saw a retraction…remember when the newspapers used to correct errors in reporting…how often do you see even that?

Campaigns are run on ‘he said, she said’, not facts or what the candidate is going to do for you but what will happen if their unworthy opponent gets the post. Billions are spent nationally on these campaigns and what do we get for them? Same old…same old. Meanwhile those running the campaigns get jobs in government…be it Karl Rove or David Axelrod, they are spinmeisters, nothing more yet they are routinely on the Sunday talk shows talking about policy. How can you question someone whose sole responsibility is to preserve the status quo?

On the subject of regulation brought up yesterday. Two issues TB has been discussing and hearing about lately:

1. Loan modification. Did you know that to apply for this, you must have missed at least one payment, probably, BUT once you file for it you are PROHIBITED from making any more payments until a decision is made! Then, as is in most cases, it is denied, the entire amount is billed to you…often $20,000 or more, and if they see fit may be postponed by tacking it on to the principal.

What happens if someone really needs help. When the payments are suspended they will spend it on necessities (real or perceived), so to deny them the ability to make payments only worsens the situation. Then of course, there are unscrupulous lawyers who will ‘help’ you with the process often for $6,000 or more and if you are turned down – which often occurs because THEY don’t do their job – they will assist you in filing for bankruptcy…for another $10,000 or more. This is sick…yet has this even been addressed by your friendly GOP controlled Congress who wants to cut education, social services, and healthcare??? Since when do you cut these costs, without increasing taxes even for the wealthiest 2% of Americans when more than 14 million are out of work or underutilized and receiving no benefit?

2. 1099’s. In order to make the healthcare bill more palatable, the Dems inserted a provision whereby every small business must now complete 1099 anytime it spends more than $600 in a tax year…even if it is to a publicly held company! Why, because the geniuses calculated that billions of revenue were being lost by not reporting income. Now let’s get this straight, Costco or Walmart are not going to report the money received to skimp on taxes. This is the worst flawed math TB can imagine. Some republicans last year tried to change it yet it was the Dems who protested…because it would make the plan appear to cost more when it reality it made no difference. Supposedly it is on the table when the healthcare bill is reviewed but TB’s question is why was it even included in the original bill…it creates more work and expense for small businesses and big ones, and does not produce one iota of additional revenue.

Hope this was ‘fair and balanced’ enough for you…we have the best government money can buy…and it did – lock, stock, and barrel.

Have a nice day!




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