So High Above

"It is just outrageous that the American people don't know that Congress doesn't know how much money he (Treasury Secretary Henry Paulson) has given away to anyone,'' the Oklahoma Republican U.S. Sen. Jim Inhofe told the Tulsa World. Here is a Republican Senator that doesn't even understand what has happened, duped by a President and Treasury Secretary from his own party. The Administration went to Congress with a one page bill that authorized the Secretary of Treasury to hand out $700 Billion at his discretion without spelling out what the money would be used for. The Congress haggled for a couple of days, then had a closed door meeting with the Federal Reserve Chairman and the Treasury Secretary and told the American Public that the money was indeed needed to shore up the credit markets otherwise the United States Financial System would collapse. The Congress acquiesced after the private meeting and passed a $700 Billion Bailout package to be issued in increm...

Today the Global Stock markets were beaten down followed by the U.S. Markets. Pundits are still claiming that the sell offs are in response to the liquidity crisis of confidence in the credit markets. After years of rising stock price that were way out of line with Price/Earnings (P/E)ratios could it just be reality setting in? Traditionally a reasonable P/E ratio was 7 times earnings before the stock markets were overrun with MBA's, derivatives and hedge funds. We then entered the age of "investing" wildly in companies that didn't have earnings and had little hope of posting earning in a reasonable time, yet the prices were driven up by speculation and anticipation. Suddenly investing was no longer calculated on trailing P/E rations but on projected (future) P/E ratios. This changed the whole dynamics of investing, stock prices became contingent on the future possibilities of a Company rather than on the current financial health and past performance of the Company. T...

The passage of the $2 TrillionDollar "Bailout/Rescue" plan by the Congress on Friday shows the lack of leadership and foresight that we have in our Federal Government. The Democratic Leadership failed to seize a golden opportunity to present a vision and plan for real change. The Republican Leadership failed to stop the largest welfare check ever written. The Congress was lead into another Iraq by the same Administration that led them into the first one. Again the Congress blindly accepted the lies they were told by the Bush Administration without sitting back and looking at the situation logically. Both Presidential candidates are basing their campaigns on "Change". The "Bailout/Rescue" Legislation is not change, it is a reinforcement of the economic witchcraft preached by the trickle down Reagan crowd. Senator McCain of course sees this legislation as change so there is not any disappointment in his support of the legislation, he would not be expected to...