Fed Suggests Economy Is Stabilizing

The monetary aggregates have been flat for months, the problem will come when it is time to drain 1.5 trillion in liquidity from the market to return to a normal fed balance sheet and at the same time purchase a little over 1 trillion in mortgage back securities adding an equal amount of money back. One finds it difficult to think removing almost 3 trillion is very practical. A 1 per cent change in a 30 treasury will change the price almost 20 per cent for a retail investor and crush PE multiples when the yield curves shifts up from 0.

Is it our leader or us

All the option have been bandied about except one. Reduce spending. Both democrats and republicans agree on one thing government must be bigger. The difference being the kind of government. Republicans would have a; well I do not know. Not having heard the kind of government suggested by the republicans one can only guess it is not the democrat's idea of government. Leaving the R to be labeled by the smear of the day. In the same vein one must still admit government has become larger under both parties pacing being the difference.
No one republican or democrat has come to the forefront suggesting a reduction in spending; only a reduction in debt, implying a tax increase. No wonder anyone is having a hard time trying to identify with the republican party, it is ethereal. Reaching out to grab the latest news from the GOP finding only a vapor, listening to talk radio for fast breaking news which might stir the conservative base, craning my neck to see if there are other conservatives dissatisfied with the status quo. Old rich men who do not read bills, not senate seats, but senate institutions, institutions who write the senator's questions, write the legislation, read the opposition material only to have prepared questions read like a 10 year old reading college material regurgitated by the titular head of the institution.

Our leaders without or unable to express their own opinions or maybe unable to render an intelligent opinion, spewing drivel pumped out by both parties by fax each morning, no independent thinkers, no creativity, only followers. The leaders picked by the voting population shows how shallow the thought processes employed by the masses in choosing any leader. Names be not mentioned; both parties have pulled together candidates without merit on a state, local, and national level.
People who have painted their own backs and those of their friends, gone on to greener pastures with their new high contacts in government or business. Positions from which net worth can be created. One must ask how a simple person going into an elected position without much net worth can suddenly have over just a few years multiple a good salary and benefits in to tens of millions?
Our leaders, men and women who cannot under any circumstance even think reducing spending might be an option. Where is the outcry? Are we so mired in our own morass we close the eyes to the nation's wealth being flushed down the toilet, to indenture future generations with our own greed?

Howard Fineman is killing me

Both Obama and Palin have had approximately the same experience, one in government, the other in organizing and teaching. Neither posses the abilities of Nixon, no matter the opinion. Fineman why do you not compare Nixon with Obama as to experience. You compare apples and oranges, the article goes to show the truly inept choice America has made in choosing a leaders, neither have the qualities or the ability to lead and organize on a large scale level. Could you not have picked something more stimulating to write about but drivel.

Read the article if you dare!

Health Care Change

Let me explain health care very simply.

The redistribution of available resources across the bell curve. Very young (less than 2 or 3) and those older than 55 will have less of the available resources. Boards will have review over who receives what. Those who have a long life expectancy will reap the most benefits as your statically probability of living declines, so do your available health benefits. There are too many statistics on mortality and morbidity to assume they are inaccurate.

Call it what you will, you cannot enfranchise even 10 million people into a systems overloaded, scarcity will be created.

The largest portion of the US population is over the age of 55. Why should they not be upset?

How will Obama's 4 years end?

Obama is going to be happy with an incremental increase in his agenda. In the video posted on Drudge Obama said it may take 10 or 15 years for a single payer system. Obama thinks long term, he is doing a full court press, there are 4 quarters, and there is still over a fourth of the year to go until the end of the first quarter. You have not seen anything yet!Obama is 48, able and willing to work 20 hours a day for the next 3.25 years in order to establish the progressive/socialist agenda upon which future generations can build. The questions you have to ask - Has Obama tried to ram a huge bite down the throats of Americans too fast? No time to wash it down and here comes another serving. How long until a political crisis upon which the national guard will be called out to quell the protest of those few radicals disturbing the change?Obama will at the end of his term will know all the state secrets, know all the dirty laundry of his opposition, and will have firmly establish his socialist agenda into the fabric of America. Soon we will have a American Socialist Party

Local Fire dept. will lose $1 million in property tax revenue

The recent decrease in tax revenues to local governments has declined due to dropping property values, loss of sales tax, and a decrease in permits fees. Relief from a decrease in property value is sought from the county assessor, the process is slow and a fight in some cases, so even if property values trend up the revenues will lag. Compounding the revenue shortfall the state has now confiscated a significant amount of the revenue which were counted upon by local agencies, fire departments, and schools to name a few. It was not just the fire departments as the link to the article above does not cover, it will affect all locals governments across the board. Having spent a few years in the securities business let me let you in on a little secret.

Municipal bonds have gone underwater! Two examples of bonds issued over the last twenty plus years are below. The areas affected would be home additions built at the top of the real estate market, property values have decreased substantially, and there are numerous vacancies in the area. Was a fire department or other municipal facility built in conjunction with the new home addition? If so and you live in the area or own the bonds you may want to call your broker and check it out!

I've borrowed the definitions from a couple of places to be most exacting, but you need to seek the advice of someone knowledgeable in the area.

The Certificate of Participation is a financial document that is often employed when a municipal government or other government entity creates a bond issue. Rather than paying interest on the bonds or guaranteeing a face value at the end of the project, the investor receives a return based on the lease revenues associated with the offering. Making use of this process can work very well for the municipality, since it will free the issuer from restrictions on the amount of debt that can be incurred during the course of the project. In the unlikely event that the municipality defaults on the arrangement, the terms of a Certificate of Participation provide investors with the ability to assume control of the facility. Once the default is complete and the transfer of title is in the hands of the investors, they are free to do with the assets as they see fit. This includes the ability to either complete the facility and sell it to a private investor, or choose to band together and use the completed structure for purposes of their own.

Mello Roos Community buildings Districts called CFDs increase money through special taxes. They are organized to finance big enhancements and services inside the district which may include schools, roads, libraries, police and fire protection services, or ambulance services. The taxes are secured by a continuing lien and are imposed annually against property inside the district. It is important for CFD property owners to pay their tax bill on time. The CFD has the right (and if bonds are issued, the obligation) to foreclose on property when special taxes are delinquent for more than 90 days. Additionally, any costs of collection and penalties must be paid by the delinquent property owner.

Make the call folks, no one minds the store like the owner!