Wake Up Gov. Moonbeam! Have You Learned Nothing?

My Dearest Governor Brown. I would have thought after countless decades in politics and elective office you might have learned a bit about economics. I find you to be a not unreasonable man and I know you have the brain power to follow through on positive policies.

Yet I have been watching you since you took over our wonderful State yet again and it leaves me dismayed. I know you know better. What is the problem? Is your party so beholden to various special interest groups that you simply can not do the right thing for the good of the State? You must bow to their respective altars? You must pay them back if you will? You must kiss their rings? So as to not appear to be seeking out only you Mr. Governor let me add in this little caveat..the other side does the same thing! As a business person however I find the other side hurts us all a little less in who they worship.

I bring this up as you recently stated that tax hikes are the only way out of this mess. As you yourself plainly stated the deficit is double your original plan. You wonder why? The so called rich have been leaving the state and with them their respective businesses.

This is nothing new and I have to believe you personally know it. Although the State Senate is full of incompetents who do not, I know you know different. Recently the Senate sent a delegation to Texas to see what they did vs. what California does and why they thrive and we stagnate. I could have saved them the time and explained it to them but a junket is a junket. Simply put Texas has a simple regulatory climate and a great tax system. A natural magnet for business.Yet upon their return from this junket our leaders concluded they had learned nothing. All the pity to those suffering which voted for these clowns.

It reminds me of a classic song you will likely remember by the group Ten Years After. “Tax the rich, feed the poor, till there are rich no more”. Sound like our State? It definitely is happening as has happened in New York and New Jersey. The two other States that tax the bejesus out of its citizens.

According to CNS News reports New York has had the largest migration the past ten years with New Jersey and California not far behind. As reported it has cost these states close to $100 billion in revenue during this exodus. Again common sense tells us this yet all I hear from the leaders of these states is raise taxes every year. The classic definition of insanity and without a doubt a large group of morons and excuse my coarseness but what other explanation can there be.

I assure you many of the low tax states are very happy and of the top 10 lowest taxed states their average unemployment rates are less than1/2 the nations average. As economist like to say “money flows to where it is best treated”.

This is also applicable to the nation as a whole. Not just you Governor. If you decide to open your widget factory where would you go? To California where it would take months and countless thousands for fees and permits or to Hong Kong where for $75 you get a same day permit to conduct business.

I don’t fault the business person. He must do the best he can for his investors and family. I fault the politicians who watch the exodus and learning nothing from it. And continue to spout the same anti business rhetoric and class warfare and continue the same policies that make matters worse. All for their own benefit not that of the general welfare of the people. I find these Pols most repugnant to say the least.

So Governor Brown and all you other Pols, learn from past mistakes. Learn from what we have taught many nations in the world who are stealing, no that is not fair but winning our business. Stop chasing away the golden goose. I know you all know better.

Article first published as <a href=’http://technorati.com/politics/article/wake-up-gov-moonbeam-have-you/’>Wake Up Gov. Moonbeam! Have You Learned Nothing?</a> on Technorati.

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” Hope And Change” This!

I should think by now that all but the most ideologically inclined are no longer buying what our President is hustling to them. Listen as I tell you this, he has no new plan, he never did and it will not work. As stated before he is following the Euro-Soviet model and we all know where they stand.

When will these eggheads ever learn. Emotions must be left at the door and actual real life experience and historical precedence is the path we must follow. Heck even I have policies that I am certain can work if implemented. I will go so far as to say Obama does as well. He just can’t bring himself to promote any.

He is indeed the consummate insider and schooled at the Chicago Academy of Machines. How else to explain the silly economic policies he constantly parades in front of us. I mean if he has now gone three straight years without garnering a single Senator to vote for any of his budget proposals what does this tell you. I mean really zero Senators and his party controls the Senate. Pathetic.

Hope and Change. Tell that to all the young college kids who worshiped him as a God. 53% of them now have degrees yet they have no employment. They do have student loans however. I bet they no longer faint in his presence in fact they are mostly absent when he arrives. Funny how things change.

No he is now the ultimate Crony Capitalist. He dines with Private Equity elites and raises millions while he rewards them with perks we can only dream of. Then he rails against Gov. Romney for working in the same industry he daily trashes. Can you spell HYPOCRITE. All those greedy Wall Streeters do his bidding and he theirs. And they split the booty amongst themselves at our expense and the 1% thrive like never before.
He hits oil and gas firms but the tech firms who earn even more ie. Apple, Google get a pass for some reason. Wonder why? Easy they support him. So they like GE pay almost zero tax on their countless billions. This makes no sense but then it is not about sense its about political advantage.

My apologies to the honest Democrats and the many I know personally who feel they have been betrayed. I knew what we were getting. They held out for the hope. It all seemed to contrived to me and I did smell several rats.

As to the 99%er’s, this guy is definitely not for you. How do I know. He proves it daily by his actions which is my requirement. I will not blindly accept a word from any politician and this man has only helped the rich at the expense of the poor and it is a sad thing to witness.

He is pure political machine born and bred. I have to wonder and would love an honest chat with him off the record.I would love to know what is truly inside this man. If for no other reason then for my insatiable curiosity. For all the hyperbole about bringing this nation together I have never seen us so divided. An unfortunate dynamic we are forced to work through. Yet he parties on as if everything is alright with the world. From lavish Hollywood types to Rock Stars. Nice gig Mr. President. Don’t take your eye off our problems just yet however. People are hurting. As one of your predecessors stated he “felt our pain”. I get the impression you do not. Maybe I am wrong and maybe you are in the middle of a learning curve but who after all knows.

But as always I am optimistic in the integrity and ingenuity of our fellow countrymen. No matter what they do to burden us, we find a way to get around these hurdles and we will be back. Mr. President stop trying to divide us and do your best to leave us alone if you can. I am not sure if you will win and does it really matter? After all you have taken care of the unions and Wall Street Elite. Will Mr. Romney do anything different? I hope someone does.

Article first published as <a href=’http://technorati.com/politics/article/hope-and-change-this/’>&#8221; Hope And Change” This!</a> on Technorati.

How To Free Up The Home Mortgage Market ?

For those of you who have attempted and hopefully succeeded in financing a home I bid you congratulations. Home ownership has long been a cornerstone of the “American Dream” and is very prominent within the U.S. tax code to assist in its implementation. All things considered it is a good thing to own a piece of the earth and more importantly to put a roof over your families heads.

Of course for those economically concerned, the home market has been the key driving force which fuels our GDP as the tentacles from each house spread out geometrically to virtually all sectors of the economy. A boon no doubt and needless to say the reason we are in the quagmire is due to a lack of home sales and diminishing ownership.

You ask how can this be with historically low interest rates and all. It is really very simple that. We have been inundated with new rules and regulations and a fee structure which continues to rise almost daily. If that were not enough the investors who purchase the mortgages are literally afraid of their own shadows. Of course these serve only to slow progress not enhance it. Take it from one in the industry, I kid you not I have not seen the likes of this ever in my 30 years and that includes the S&L debacle. On the contrary that worked out quite well but as I have stated before we had adults in charge when that event occurred and was quickly resolved. Today we could not be further from same as this correction has been horribly mishandled across the board.

We are literally freezing the market with endless paperwork and hurdles for even the best of the best and I see no one gaining from this whatsoever. I do see us all losing however. This must change and quickly friends.

What a paradox, nay conundrum we have. I for one wish there where less Washington involved for starters. They truly are an impediment to freeing this market and acceleration in GDP. But as mentioned before they have no business expertise so what should I expect to the contrary? More brain dead policies?

As a long term veteran in the industry I see no reason to not continue the good old fashioned way utilizing common sense underwriting when reviewing a loan. We know we did this from the 50’s to 2001 or so and through that time FNMA quality product averaged a default rate of 1%. Pretty damn good if you ask me. Then the funny money craze hit and defaults range in the 15%+ range. I could be wrong but 50 years of good experience sounds better to me than what I live with daily today.

And please to naysayer I am most definitely not advocating a return to subprime style lending as I personally never touched one as it was pure dynamite waiting to explode. I am still surprised that genius Dr. Greenspan promoted them but that is for another day.

So I submit we go back to a simpler time and use our logic and common sense. We must free up the roadblock that is modern lending post subprime. Only then will the markets absorb the excess capacity and job growth will most definitely return.

And finally please stop turning to Washington for help. After all they started this mess, they certainly have no answer for it.

Article first published as <a href=’http://technorati.com/business/finance/article/how-to-free-up-the-home/’>How To Free Up The Home Mortgage Market? </a> on Technorati.

Countless Trillions Spent (Wasted) Yet Stagnation Continues

It should come as no surprise to the average citizen that our economy is struggling at this point in our post recession growth phase. Historically speaking at this point we should be achieving GDP growth levels of the 4%+ range yet we are barely at 2%. I suppose it did not surprise many when Gallup released a poll last week reflecting 83% of our citizens feel we are in a severe recession.

How could this be? $1,000,000,000,000.00 in stimulus was spent by our President and of course we all know the major Banks were infused with somewhere between $2-4 trillion depending on whom you believe. We also know that corporate coffers hold another $2 trillion or so and the bulk of it is held offshore to escape onerous taxation. And many of our fellow citizens cumulatively hold roughly $4 trillion on deposit with various institutions.

Having stated these facts, why won’t people spend and why won’t jobs be created and why does business not expand over and above the status quo?

I submit it is massive over regulation at work here. New rules either forbid Banks from lending so as to raise their capital base or the regulators have them so scared that it is easier to sit on the cash. In the mean time they must hire some people to figure out these new rules and regs and to comply. All in all not very productive. And I am not here advocating to let them run wild and do as they please with these secured deposits. Just some common sense and being in the lending business I can assure you there is a great lack of this being utilized today.

The tax code is another problem. GE pays a 0 rate, Apple pays a 9% rate and the peanuts I earn pays a 20% rate. If I could afford accountants like GE I too would likely pay zero yet alas I can’t. And I can’t fault Apple for parking money in Ireland and neither should you. The problem is the tax code which forces them to do so. Before you shout “tax the rich” let me tell you it will hurt us all in the end. Solution to this problem is as simple as the constitution. We are all to be treated equally in the eyes of the law so we should all pay the same tax rate of say 15%+-. Oh and by the way it should be in the form of a sales tax as this would save the $300 billion we spend in compliance every year not to mention the man hours wasted which equal the man hours used to build every moving vehicle in this country every year. What is better, building vehicles by workers or filling out forms instead of being at the movies with your family. And of course the underground economy is estimated to yield $500 billion to the treasury under this proposed system as it currently escapes taxation today. Great idea. Yet the pols won’t have it as their power would evaporate as well as the campaign dough and perks.

If you have not yet suffered enough, why not try to open a business. Talk about red tape and burdens. Most countries issue permits on the same day. The US will likely take you many months and require many permits at great cost. And it is all non productive.

In other words it is about the power of the elites in D.C. and the State level. “Let them eat cake” you can just hear them say. Next time I hear how GM was saved I will gag. Of course it was saved when the heavy hand forced $100 billion in bonds to go away and never be repaid. I wish my King would grant me that wish, but alas I am not a favored one.

Just wait until Obamacare kicks in next year. You will see more red tape than Dodd-Frank which is crushing the banking/lending field. Believe me folks this is not conducive to job creation and 5% GDP growth. I wish I were wrong but numbers are numbers and hurdles are hindrances and I have seen these before and the outcome is pretty likely to remain a constant.

The solution is to free the economy and by proxy the people ie. us to do what we know how to do. We don’t need these know it alls telling us how to conduct business. After all nary a one of them ever has run a lemonade stand let alone a viable business yet we allow them such a big hand in the US economy. Never ceases to amaze me how people fall for these hustlers. Look in the mirror for your answers and you will not be disappointed. As stated previously, they only help their friends and donors. A pity indeed. We must turn from this anti business bunch as quickly as possible to cure our ills. We will.

At the end of the day they enrich themselves and their friends while proclaiming to be our mommy and daddy and wanting to help us. Your kind of help is not needed thank you very much. Your cure proves to be worse than our disease.

Article first published as <a href=’http://technorati.com/politics/article/countless-trillions-spent-wasted-yet-stagnation/’>Countless Trillions Spent (Wasted) Yet Stagnation Continues</a> on Technorati.