Camarillo Airport a Parking Lot For Surplus Vehicles

What are we really going to do with all the cars that have being piled up? I say sell them at wholesale price. And make as much money back that you can. This message goes out to all the dealers in Ventura County.

If you read the story on Tuesdays paper about the storing of new cars in Camarillo, Oxnard, and Ventura then you know what I am talking about. Cars are piling up at Camarillo Airport, Cars 101 in Oxnard, and the Ventura RV Center. Brands in the pile up include Kia, Hyundais, and BMWs. The cars are stacking up because consumers spending is down. Well the best way to spark spending is by chopping prices.

My solution to reducing the size of stored cars is reduce the prices. It is better than having them sit around with no where to go. And who wouldn't like to go to a big lot and pick out their own car. Look at the pictures, you even get to unwrap the car.

Wednesday was full of goodies. Two in particular. Both concerning the financial industry.

In the morning, Bernie Madoff "pled guilty to eleven counts, including fraud, perjury and money laundering[Bloomberg]." He is going away for a long time. Reports have stated that he might get 150 years. After the plea, Madoff was sent directly to jail. Just in case you forgot, Madoff is the guy who ran a ponzi scheme in which he duped investors out of $65 billion.

A wee bit later Jim Cramer of Mad Money(financial show on CNBC) went on The Daily Show with Jon Stewart. It turned out to be a one sided interview in which Jon Stewart railed and lashed on Cramer. Stewarts biggest complaint seemed to be that Cramer did not do his job as a financial analyst. It seems Stewart felt Cramer could have and should have been doing the same thing Stewart did to the Bush administration. But what does Stewart really expect, he was a wall street guy who was given a show. Cramer was definetly not a journalist.

Raise your hand if you have a problem with nationalization of banks?

I don't.

The first bank that needs to be taken care of is Citi Group. Earlier this week the Obama administration awarded them another $25 billion. That means the government now owns 36 % of the bank. Might as well own the whole thing since a lot of analysts say that this weeks actions will not be the last. More money down the line is going to be needed to keep propping up Citi Group.

Apparently, the government must continue to support Citi Group because it is so intertwined with all the other banks. So if Citi Group falls, then the rest fall. Compare it to an egg shell thats cracking all over, yet we keep adding tape, glue, cement, whatever we can find to keep it together. Or better yet, your buddy who is getting beat up in a fight, bloodied and bruised, yet you, the friend, keeps picking him up and throwing him back to fight more, time after time. Might as well let Citi Group fall, have the rest follow, and we the people will pick up the mess like we always do. As strong Americans, with the will to survive, we will contiue to grow, and this can just be another historic moment in our lives as a country.

So my recomendation to the Obama administration is to take control of Citi Group, and give it a controlled free fall to the bottom. Then we can let the egg shell crack but contained and with the government support.

Splashed across the front page of most newspapers today is the feds new plan to cut rates to practically zero and print more money, lots of it.

Fed Cuts It Rate To Zero-And It's Not Done Yet [LA TIMES]

U.S. Stocks Rally, Led by Banks, as Fed Cuts Rate to Record Low [Bloomberg]
 

I like the second option best, print more money. Growing up though, I was told that if you printed too much money, it would be worthless. And after the announcement, the dollar dropped against the euro to $1 = 0.7155 E. 

The first part about cutting the rate is a bit more confusing. Anyone want to help explain to all of us what cutting the rate to nearly zero will do?

Oh and to top it all off, since we are printing more money, I'll take ten million.

"Things are going to get worse before they get better"

- Barack Obama on Meet the Press: December 7 2008                                  

In String of Bad News, Omens of a Long Recession [New York Times]

Over the weekend, financial members of G7 met in Washington. They discussed the current worldwide economic downturn and possible ways to fix it. What ever they did it worked and on Monday the markets bounced back.

Asian Stocks Soar After US Rally [Associated Press]

Financial crisis: Will The G7 Action Plan Work? [Telegraph-UK]

And also, several weeks back pirates took over a tanker that was carrying Russian tanks to Africa. The pirates took over the ship and upon discovering the tanks, demanded a $20 million dollar ransom. Well two weeks later, the pirates have stated that if the ransom is not paid, they will sink the ship.

Somali Pirates Say They'll Sink Ukraine Ship If Ransom Not Paid  [Bloomberg]

Somalia Enjoys the Spoils of Piracy [The Australian]

Now there is a lot of bad talk that goes on about residents of this country, who came here illegally, maybe by crossing through a desert, coming across hidden in a truck or a ship, or maybe they floated across in a buoy. Whichever way they came across they are ridiculed.

So I am pleased to announce that there is something that you can thank them for. Paying their mortgage. The Times wrote a piece that spoke about illegal immigrants paying being good homeowners and paying their mortgage. It is all because they are held to higher standards when applying for mortgages. This was because lenders applied ""stricter requirments, including larger down payments, pre-purchase counseling and fixed mortgage rates"

Now if these standards could have just been used across the board. Many of these practices should have been standard with mortgage firms all across America. Hopefully the subprime meltdown will teach firms to be wiser with lending practices. To be fair, the buyers are somewhat responsible as well. They should have known what they could, or could not have, afforded. Lenders got greedy though. Lenders began giving out loans like they were hotcakes. It was hunting season for the predatory lenders and they reaped some benefit. Now though, they've partially spoiled our economy, both the State and Federal.

What is there to do? Nothing really, just ride out the storm.

Illegal Residents but Responsible Homeowners [ LA Times]

Senate Passes $700B Rescue; House Votes Lured [Yahoo News]

Tonight the Senate passed the "Economic Stabilization Act, more commonly known as the bailout. Not the same bailout bill that was 103 pages in the House last week. Todays was 451 pages, chocked full of good stuff. As the bailout has grown I'm guess that there has to be something hidden in there. Oh yeah, probably those large salaries the executives are used to getting paid.

So is Senator Reid a better politician Rep. Nancy Pelosi, since he could get the Senate to pass the bailout but she couldn't get the House to pass it?

Guess those golden parachutes for the CEO's are not going to be deployed after all. Today, in the House of Congress, the bailout plan that was going to save our economy failed. The plan had a total vote of 228 against to the 205 in favor of. Republicans led the charge on the bill with 133 votes against the bill, accompanied with another 95 votes from Democrats.

First, homeowners have to pay their mortgage. Then, their taxes are going to bail out those companies (Fannie & Freddie, Lehman, etc). This is not okay. Especially when the CEO's of these companies are receiving lavish yearly salaries and most likely live a luxurious lifestyle, while the average American works 40 hours a week to pay their mortgage and in a round about way, the CEO's salary. So now homeowners can pay those CEO salaries two ways, through monthly mortgage payments and the $700 BILLION bailout.

Good job corporate America! Way to stick it to Americans.

Well CNN did a survey and they found that most Americans are against having the taxpayer bail out these big shots. And I agree. They were the ones who were fiscally irresponsible when conducting their business matters. When I get in the hole financially, where's Uncle Sam to come and bail me out.