Welcome Back - Happy 4th of July

The So High Above Political Blog has been on hiatus because the current the Bush Depression has also affected this writer's personal income, so time had to be dedicated to working more to stave off foreclosure and bankruptcy just as millions of other Americans.

First Happy 4th of July, a day to commemorate the founding of a new ideal in governance. A day that should remind us of the Revolutionary values of this Nation. many of the Founding Fathers warned in their writings that in order for this experiment to succeed the People must always be willing to engage in Revolutionary Change to protect Freedom and Liberty.

So High Above will no longer be published on a daily basis but on an as warranted basis, which may mean once a week or even twice a day as the situation warrants. Over the coming weeks So High Above will catch up on the Obama accomplishments and failures, the Democrats inaction, Governor Sanford, the Republicans in hiding, where did the money go, Senator Al Fraken, Governor Palin and the lack of a Stimulus for the American People.

Have a safe, healthy and happy 4th of July.

Returning July 4, 2009

So High Above will return on July 4, 2009

Poverty Class

The United States Department of Health and Human Services released the 2009 Poverty Guidelines. For a single person the Department considers $10,830 as the poverty level. Taking this figure in context that means that the United States Department of Health and Human Services believes that a person can live on $10,831 and not be in poverty. That would mean that the person would be able to maintain shelter, food and clothing for under $30 a day.

Since August of 2008, the American Citizen has seen the United States Treasury Bailout multinational corporations where their executives are making in excess of of $5 Million Dollars a year. So the Treasury Department sees the Federal Government as an insurance for the continuation of income for Executives who are earning more than $13,000 per day, while the Department of Health and Human Services believes that a person can live on less than $11,000 per year.

The United States Government does not have an obligation to secure the lifestyles of those that have prospered in good economic times and now find themselves in a position of losing their wealth and status. If the Government believe that a person can live on less than $11,000 a year then there is no justification for any Bailout of any Corporation. The Executives of these Corporations are far from the Poverty Levels as posted by the United States Government.

During the last eight years the debate over income equity all but disappeared. Again we arrive at the question is the best way to build an Economy from the top down or from the bottom up? The answer is obvious but the facts have been distorted by the so called "Conservative Agenda". An agenda that despise minimum living wage requirements but believes in rescuing Financial Institutions who through their own greed and excessive compensation of their Executives have landed in financial trouble. The average citizen does not even need a Bailout, they just need laws that protect them, such as limiting interest rates, late fees and other excessive charges that the Congress allowed in the Bankruptcy Bill of 2007. The most immediate thing that Congress can do to help the American Citizen is to revamp the punitive laws encased in the last Bankruptcy Bill.

Help Desperately Needed

Congressional and Governmental help is desperately needed by the American People to regulate the loan sharking activies of the Credit Card Industry. Thanks to the revamped Bankruptcy Bill that was passed during the Bush Administration's Republican controlled Congress Credit Card Companies were given free reign to charge loan sharking rates on credit cards. Credit Card Rates charged by the credit card industry were always excessive but thanks to the revamped Bankruptcy Bill they now have the legal blessings of the Federal Government to set punitive interest rates that will keep Americans repressed throughout their lives.

The revamped Bankruptcy Bill allows credit card companies to randomly raise rates after a card holder borrows the money. If a card holder made a purchase at 3.99% interest and has been paying that bill in a timely manner, a late payment to another company gives the credit card company the right to raise the interest rate on the debt top them which is being paid on time. This was accomplished by the Banking and Financial Lobbyists who control ALL members of Congress, Republican and Democrat.

It is long past time that the United States Congress stop this insane system and return America to a Nation that is for the benefit of her Citizens and not the multinational corporation. Usury Laws MUST be re-enacted now, and the Credit Card Industry must abide by the law and have strict regulatory oversight.

The right Wing Radio Hosts like Sean Hannity are perpetrating this phony tea party protest throughout the US, what they should be protesting is the punitive interest rates that the financial lobby has been able to achieve by greasing the political treasure chests of Republicans and Democrats. The extreme interest rates charged by Credit Card Companies are more detrimental to the US economy than the tax rate.

Obama Administration fails to Inspire

As The Obama Administration approaches 100 days in office, there is a lack of an inspirational message to those suffering through the worst Economic Crisis of a lifetime. The Obama Administration was definitely handed a bad situation by the Bush Administration ans as they try to unravel it it appears worse each day. The problem is that the Obama Administration is failing to lead in an inspirational way, instead they are mimicking a lot of the Republican Policies.

The Obama Administration continues to be fixated on rescuing the Banking and Financial Institutions that created the problem using the same argument as the Republican Bush Administration, that these multinational corporations are too big to fail. An inspirational approach would be to rescue the middle and working class families from the depths of despair and as they are able to purchase goods and services the economy will recover from the ground up, as it should be. To continue the failed approach of trickle down economics championed by the Republican Party since the days of Reagan is not only wrong, it is immoral.

Banks and other Financial Institutions that can recover from the mess that they created by servicing a thriving Middle and Working Class are the ones that are worthy of survival, the rest should be placed into receivership, their remaining assets sold and the money repaid to the United States Treasury. It is long past the time to take the burden of the economic crisis off of the backs of the American Citizen and place it back on the multinational corporations that have caused the problem with their excessive greed, phony financial instruments, exurbanite salaries and conspicuous consumptive habits. The rescue that should be in place is the rescue of the American Citizen from the failed policies of the last eight years. If all the money that has been siphoned to the multinational corporations had been sent to the American Citizen, the economy would be on the verge of a boom instead of balancing on the edge of a bust.

Congress on Vacation

The United States Congress is on a two week vacation. This is disgusting being that they have failed to accomplish much of anything at a time when the Nation is suffering the poorest economic downturn since the Great Depression and maybe the worst economic downturn of the entire history of the Nation.

Since this Congress has been in session they have failed to address the pilferage of the American Consumer by the Credit Card Industry that is charging loan sharking rates on consumer debt. The Congress has made sure that the most wealthiest Corporations in America received enough federal Bailout money to maintain the conspicuous consumption standard of living that they have become accosted to and they they have enough money in their Treasuries to continue political contributions even at the expenses of emptying the United States Treasury.

There has not even been one piece of legislation proposed by any Congress person or Senator to apply Usury Laws to loan sharking credit card companies, or to demand that banks and other financial institutions remove their back office centers from India, Pakistan, and the Philippines even after they accepted Federal Bailout Money.

The current scenario goes like this, Congress bails out the financial institutions that caused the mess, they continue to receive their unwarranted salaries, continue contributing to campaigns, Congress takes no action for the thousands of small businesses that are closing in record numbers, no help for the consumer paying loan sharking rates to the credit card companies. Congress then takes a two week vacation after voting themselves a raise while the rest of the citizens are losing income on a daily basis.

When Will Congress Work?

The classic view of an empire in distress has always been summed up by the phrase, Nero fiddled while Rome burned". A new phrase can be added to the lexicon, "Congress played games while the People lost their Future". This Congress under the leadership of Speaker Pelosi and Senator Reid seems to wander aimlessly from one fund raising event to the next without taking a proactive step in the direction of helping the American People. While they continue to appropriate Bailout Money for every multi-national corporate entity on earth not one piece of legislation has been proposed or enacted to stop these corporations from prying on the People.

We have a Nation where Credit Card Companies are worse than a neighborhood loan shark, where interest rates with late fees and over limit fees added to the interest costs of borrowing exceeds 50% in a lot of cases. Even with the best of credit worthiness interest rates are commonly exceeding 15% even though these companies are borrowing Federal Tax Payer Money at .5% from the Federal Reserve. There is a serious problem when the regulating body of a Country allows private corporations unlimited leeway in the way they do business. The Federal Government of the United States is charged with protecting Commerce across State Lines, yet they fail to stop the wholesale robbery of constituents assets by the floundering credit card industry that is a division of the banking industry that the Government continues to throw money at day after day.

The maleficence of the Financial Industry has basically Bankrupt our Nation, yet they are rewarded with Bailout Money from the Congress to continue the same practices that caused the demise of the Financial Structure of the Nation. While they spend excess amounts of times soliciting contributions to their political aspirations from the same corporations that they are charged with regulating, the Congressional Representatives do nothing about the loan sharking practices of the Credit Card Companies.

The Credit Card Companies are desperately trying to stave off the same fate as their Banking Parents by charging more and excessive fees and higher rates to the Citizenry at large with the blessings and deregulation of the Congressional Representatives who should be representing the people not the multi-national conglomerate. The reasons that they refuse to intiate any hearings or propose any legislation to regulate the the unsavory practices of the Credit Card Industry is because it is an industry that never says no to a Politician with their hand out.

Proposed Legislation should read, no entity in doing business under the laws of the United States may charge interest or fees exceeding 5% above the cost of Fed Funds, no entity engaged in the business of finance may contribute to the campaign funds, or Political Action Committees or pay for lobbyists to petition any member of Congress. Of course this will never be done as long as the Congressional Representatives continue to be fed by the Industries that they are suppose to regulate to protect the American Citizen. The failure of this Congress to act against the thievery that is occurring by the Credit Card Industry should be spotlighted in every media outlet so that they will be shamed into acting.

The Congress did not fail to vote themselves a pay raise, but they have failed to protect the buying power of the citizens wages. This Congress is a failure at a time of National Emergency, without a vision and a direction that will enable the Nation to have a strong and sustainable recovery.

USA Auto, Inc.

The conclusion of the months of examining the Auto Industry by the Auto Committee appointed by the Obama Administration is that they are better off dead. After propping up the Auto Industry and letting them continue to burn cash, the Administration has basically decided that the Auto Industry would best be restructured in Bankruptcy.

The conclusion that the Bankruptcy Code is the best route for a streamlined Auto Industry is most likely the correct choice. The questions that arise from this conclusion are; Why did the USA waste Billions of Dollars waiting to come to this conclusion, and why is Bankruptcy not the correct choice for the Financial Industry.

The Financial Industry and the Auto Industry are both in trouble for similar reasons, bad management, greed, excessive loans, and no plan for the future. The Financial Industry continued to sell unregulated leveraged derivatives based on the premise that growth would continue indefinitely, every student of economics knows that this is not a true premise, yet, the Financial Industry in their quest for bigger and bigger commissions, profits and bonuses ignored the simple lessons of economics 101, growth is cyclical. The Auto Industry continued to build large SUV's because they were unregulated by CAFE standards, they made larger profits from them, and senior management paid themselves bigger bonuses based on sales. The Auto Industry had the opportunity and the technology available to build vehicles for the future, but instead put money into instant profit vehicles. When management and government have no vision for the future what we end up with is scavengers who are ready, willing and able to pilferage the future by taking advantage of the present.

The Auto Industry should have begun their road to alternative fuel vehicles in the 1970's, but through lobbying and keeping Politicians and Political Parties flush with cash they were able to have the regulations and laws adjusted to benefit their immediate needs instead of the future. Now that the future is here, the Auto Industry finds itself living in the past and unable to catch the future.

As the Auto Industry becomes part of the US Government, it is the responsibility of the Government to insure that a re birthing of the Auto Industry is midwifed through to a new vision and new vehicles that will benefit the society as a whole and not just the well heeled who amass profits from the advantages of the present. US Auto must recognize that the era of fossil fuel is dead and must be buried. US Auto must lead the way in alternative energy vehicles that will remove the needle of oil addiction from transportation. An Auto Industry must survive in this Nation least we become dependent on foreign vehicles for military needs, but it does not have to survive in its current form.

The Bull Market Lie

After months of dire predictions from the various Financial Network Anchors, reporters and editors, these same people are telling us that the worst is over and we have seen the bottom of the economic crisis. Their reasoning is that the stock market has been rallying. However, a look at history will show that even in the depths of the most vicious Bear Markets there are rallies that often times brings the indexes up by as much as twenty percent before they reverse give it all back an tack on another 5 % on the downside just for good measure.

The important events in March that caused this rally are not the Treasury Plan, or the announcements by banks that they are doing better. Stock market rallies in the middle of a prolonged Bear Markets are usually caused by a beast know as short covering. This is when sellers of stock that they do not own begin to buy the stock to cover their position in order to lock in a profit. As they begin to buy stock to cover their short position it causes a short squeeze, wherein the volume of the stock being bought forces up the price causing other short sellers to buy creating more demand and even higher prices. When the short squeeze subsidies the Market price will again be dictated by the true valuations of the underlying corporate entity.

March is important because it is the last month of the first quarter and in order for money managers hedge fund operators and mutual fund managers to pretend that they were on the right side of things during the quarter they will buy the stocks that have done relatively well and report them as part of their holdings at the close of the quarter. This illusion makes their customers think that these managers know what they are doing because they owned all the right equities during the quarter. They just don't inform their shareholders that they only bought those equities in the waning hours of the quarter.

April is sure to bring surprises, it is the beginning of earnings reporting by the corporations for the quarter. With consumer confidence at historical lows and unemployment creeping up at record proportions earnings season is sure to disappoint the investors who will see that the economy did not have enough time nor stimulation to even begin to recover from the Ponzi Schemes of the Financial Institutions such as AIG, Citi Group and the like.

With the Government failing to help the average people of the Nation wade through the economic catastrophe caused by the unregulated trading of the Financial Corporations, consumers are at the end of their buying ability. Credit Card Companies left unregulated have forced thousands into bankruptcy on a monthly basis, and tens of thousands to just stop paying. Credit Card Companies will be the next industry crying that they can't make money even after charging people upwards of 43.99% interest over the last eight years of Republican deregulation shepherded by the Bush Administration. The other shoe that will drop will be the bankrupting of Commercial Real Estate Companies who are faced with their highest vacancy rates ever, this will force them to walk away from mortgages and loans that will again put a dent in the fragile balance sheets of banks.

When the TV Market Man tells you, "Buy Stocks Now", we are in a Bull Market, do not believe the hype. At most we are in a Bull Rally in the middle of a Bear Market where all of the bad news and depressed earnings have not even been revealed yet.