Sometimes you read something and wish it was you who had printed it - this Saturday blog will be link sent to my by Vladimir Pajkovski .......from: Mike "Mish" Shedlock http://www.globaleconomicanalysis.blogspot.com/
Dear Mr. President, With All Due Respect ....
Dear Mr. President,
I read your New Era $3.6 Trillion Budget Proposal. I also listened to your speech Tuesday night. You made a great campaign speech. However, the campaign is over. You won. And the reason you won is you offered hope as well as a promise of change.
With all due respect Mr. President, Tim Geithner and Ben Bernanke are offering the same policies as President Bush and Secretary Paulson. Those policies are to bail out banks regardless of cost to taxpayers. Mr. President, it's hard enough to overlook Geithner's tax indiscretions. Mr. President, it is harder still. if not impossible, to ignore the fact that neither Geithner nor Bernanke saw this coming. Yet amazingly they are both cock sure of the solution. Even more amazing is the fact that solution changes every day.
With all due respect Mr. President, Geithner and Bernanke are a huge part of the problem, and no part of the solution and the sooner you realize that the better off this nation will be.
With all due respect Mr. President, your budget proposal is the same big government spending as we saw under President Bush. The only difference is you promised more spending and bigger government, while President Bush promised less government and less spending and failed to deliver on either count.
With all due respect Mr. President, it is impossible to spend one's way out of a problem, when the problem is reckless spending.
With all due respect Mr. President, you and Congress want to force banks to lend when banks (by not lending) are acting responsibly for the first time in a decade. Mr, President can you please tell us who banks are supposed to lend to? Do we need any more Home Depots? Pizza Huts? Strip malls? Nail salons? Auto dealerships? What Mr. President? What? And why should banks be lending when unemployment is rising and lending risks right along with it?
With all due respect Mr. President, we were hoping your administration would not carry on the war mongering policies of your predecessor. Instead we see amazingly that you Seek $75.5 Billion More for Wars in 2009. Mr. President, do we really need another $75 billion for wars? Was there nothing in the military budget that could be cut?
With all due respect Mr. President, The United States spends more on its military budget than the next 45 highest spending countries in the world combined; The United States accounts for 48 percent of the world's total military spending; The United States spends on its military 5.8 times more than China, 10.2 times more than Russia, and 98.6 times more than Iran. Isn't that enough Mr. President?
With all due respect Mr. President, the downfall of every great nation in history has been unsustainable military expansion. Mr. President, the US can no longer afford to be the world's policeman. You act as if we can. Mr. President, can you please tell us how we can afford this spending?
With all due respect Mr. President, Fannie Mae Reported A Fourth Quarter Loss Of $25.2 Billion. Can you please tell us where you draw the line on taxpayer bailouts of Fannie Mae? Freddie Mac? AIG? Mr. President is there a line anywhere, on anything? If there is, we would appreciate knowing where it is.
With all due respect Mr. President, how can you talk about reducing the budget deficit while proposing the biggest budget in history?
With all due respect Mr. President, how is it possible to talk about reducing health care costs while proposing to increase the health care budget?
With all due respect Mr. President, you have talked about "hard choices". Can you please tell us what hard choices you have made other than to throw money at every problem? Sure a few programs have changed but Bush orchestrated the biggest Medicaid/Medicare package in history and you upped it. You upped military spending. You criticized McCain for cutting programs that amount to peanuts, and all you can find to cut out of the budget is peanuts.
With all due respect Mr. President, your "Era of New Responsibility" is nothing more than a continuation of the Bush administration Era of Irresponsibility. Mr. President, we hoped for more and deserved more. Yet, behind the charade of campaign messages of hope and change, we essentially see the same fiscal irresponsibility and misguided policies as before.
Oh sure Mr. President, your budget priorities have shifted a bit, sadly the irresponsible spending did not.
Mike "Mish" Shedlockhttp://globaleconomicanalysis.blogspot.comClick Here To Scroll Thru My Recent Post List
Absolutely NO CHANGE in plans - still cash/fixed income (75%) - and still VERY NEGATIVE on the 25% invested.
It was excellent week for the portfolio - even the contrarian view on Gold worked well - I remain EXTREMELY sceptical on the rally in gold which more and more reminds me of the crude spike-and-burn story of 2008......
Short EURUSD (it is only matter of time before we trade sub 1.2000 -and probably 1.1000 / short S&P, short Stoxx50, long USD/CEER, long bunds (yes.. tought one).....long options on more downside in stock market.
Target minimum on stocks remains 690 with 625 being perfect target - the panic is getting closer.
Monday AIG will be facing break-up and the implications of AIG break-up from legal and market performance point of view is SUBSTANTIAL BIGGER than the mess LEHMAN left behind...
Mark my words!
This will be critical week - and I am starting my new job on this very Monday by going to London and doing the "Analyze that" fund manager interview with Bloomberg.....ouch...
Otherwise - cheer up, there has never been better deals to be had... if..and that's if you have been conservative in the last two years.......it is now time to load up on: debt facilitation, bridge-financing, selective real estate deals, yes this chronic BEAR is getting ready for the blood in the street - and moving at least the PA money into new deals - too early ? Could be, but as J.P Morgan once answered being asked how he became so rich: "I take my profit too early" .....http://www.geocities.com/bstateob/jpmorgan.jpg
Finally, may I kindly ask you to listen to Barry Schwartz: The real crisis? We stopped being wise, this could be best positive minutes you have spent in a long, long time: http://www.ted.com/talks/barry_schwartz_on_our_loss_of_wisdom.html
Run for the hills! Its Record High Household Borrowing (again) - The Imaginary Debt Crisis Is Here to Stay Household borrowing has reached new records. Big deal. Personal income has grown much more. Bloomberg, August 1...
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