Daily Archives: November 14, 2010

Pete the Banker: The Fiscally Irresponsible Enchantment of Political Demagogues

The threat posed by the state fiscal crisis in the U. S. is vastly underestimated and under-appreciated”,“Bond subsidies and transfers have allowed States to avoid making tough decisions.  It won’t last”

Meredith Whitney, CEO of Meredith Whitney Advisory Group LLC.

And the Economist’s Manhattan Buttonwood Conference panel observed that state bailouts have already begun, “Over 20 percent of California’s debt issuance during 2009 and over 30 percent of its debt issuance in 2010 to date has been subsidized by the federal government in a program known as Build America Bonds.  Under the program, the U.S. Treasury covers 35 percent of the interest paid by the bonds.”  Further they pointed out that, “California is not alone: Over 30 percent of Illinois’s debt and over 40 percent of Nevada’s debt issued since 2009 has also been subsidized with these bonds.”  [Here]

In addition to these Federal debt subsidies for the States, general federal government transfers to states are now at the highest levels on record.  More than 28 percent of state funding now comes from federal government transfers. Only two States started 2010 without budget deficits. [Here] Blue, or Democrat-leaning states tend to run far higher per capita deficits [Here]  
And this Administration is culpable in subsidizing the States’ fiscal irresponsibility. And as a result they are also subsidizing the return of irresponsible politicians to office. These politicians are nothing more than modern day succubi, whispering melodic tones of sweet surrender to life without responsibility and issuing soothing utterances of fiscal excess with no consequences.
And what is the consequence for the California, Illinois, Nevada and ultimately American voters if they fail to plug their ears to such enchanting political demagoguery? Nothing more than the awaiting certainty of fiscal shipwreck under growing cacophony of aggregate state budget deficits’, running $200 Billion for the second straight year, when they collide with reality.
Pete the Banker 

Tell ’em where you saw it. Http://www.victoriataft.com

Is This Real?

I was looking to see if the lamestreams had picked up on the illegal alien angle on the Gert Boyle story. [Answers: no] While looking I discovered this disgusting blog. I’ve never seen it before and wonder if it’s a ‘plant’ blog by the left. The racist name calling, twisting of facts of this case and other over-the-top aspects of this blog look like it’s right out of the left’s inaccurate depiction of the right on the issue of illegal alien issues. Can any technie look this up?

Tell ’em where you saw it. Http://www.victoriataft.com

Pete the Banker:Administration Promises No Bailouts, Bank of America Bailout 2.0 in the Near Future?

Here’s something to ‘look forward to:’ “It was only last April that Bank of America Corp. was making fools out of the doomsayers who had called for its nationalization a year earlier. Taxpayers had gotten their bailout cash back. ….Now the bank may be on the verge of trouble again. Its stock has fallen 41 percent since April 15. Mortgage-bond investors are demanding untold billions of dollars in refunds. The foreclosure fiasco is metastasizing. A member of the Troubled Asset Relief Program’s oversight panel, AFL-CIO attorney Damon Silvers, openly worried at a hearing last week about the risk that Bank of America might need another bailout.
A few more months like the last one, and we may be wishing Bank of America had never returned its $45 billion of TARP money.” 
That happy thought comes from none other than Bloomberg’s Jonathan Weill (here).
President Obama is on record of saying the new Financial Reform Bill would mean “no more taxpayer-funded bailouts, period. ” Here.  Geithner likewise is on record (here) , Crucially, if a major firm does mismanage itself into failure, the Senate bill gives the government the authority to wind down the firm with no exposure to the taxpayer. No more bailouts. 
Conservatives railed against the Financial Reform Bill maintaining that it simply codified and institutionalized too Big To Fail and Federal Government Bailouts.  And now with Bank of America facing formidable challenges just months after its contrived and highly publicized  return of TARP funds, one would one expect he Administration to avoid the appearance of coddling big Financial Institutions, firms the President claims are so abhorrent?
Will the Administration live up to its promise to the taxpayer of no more public bailouts for major financial firms, or will he simply pass along another targeted stimulus bailing out Bank of America and Ken Lewis once again?  One suggests holding onto your wallet!! 
Pete the Banker

Tell ’em where you saw it. Http://www.victoriataft.com

Pete the Banker: The Fiscally Irresponsible Enchantment of Political Demagogues

The threat posed by the state fiscal crisis in the U. S. is vastly underestimated and under-appreciated”,“Bond subsidies and transfers have allowed States to avoid making tough decisions.  It won’t last”

Meredith Whitney, CEO of Meredith Whitney Advisory Group LLC.

And the Economist’s Manhattan Buttonwood Conference panel observed that state bailouts have already begun, “Over 20 percent of California’s debt issuance during 2009 and over 30 percent of its debt issuance in 2010 to date has been subsidized by the federal government in a program known as Build America Bonds.  Under the program, the U.S. Treasury covers 35 percent of the interest paid by the bonds.”  Further they pointed out that, “California is not alone: Over 30 percent of Illinois’s debt and over 40 percent of Nevada’s debt issued since 2009 has also been subsidized with these bonds.”  [Here]

In addition to these Federal debt subsidies for the States, general federal government transfers to states are now at the highest levels on record.  More than 28 percent of state funding now comes from federal government transfers. Only two States started 2010 without budget deficits. [Here] Blue, or Democrat-leaning states tend to run far higher per capita deficits [Here]  
And this Administration is culpable in subsidizing the States’ fiscal irresponsibility. And as a result they are also subsidizing the return of irresponsible politicians to office. These politicians are nothing more than modern day succubi, whispering melodic tones of sweet surrender to life without responsibility and issuing soothing utterances of fiscal excess with no consequences.
And what is the consequence for the California, Illinois, Nevada and ultimately American voters if they fail to plug their ears to such enchanting political demagoguery? Nothing more than the awaiting certainty of fiscal shipwreck under growing cacophony of aggregate state budget deficits’, running $200 Billion for the second straight year, when they collide with reality.
Pete the Banker 

Tell ’em where you saw it. Http://www.victoriataft.com

Is This Real?

I was looking to see if the lamestreams had picked up on the illegal alien angle on the Gert Boyle story. [Answers: no] While looking I discovered this disgusting blog. I’ve never seen it before and wonder if it’s a ‘plant’ blog by the left. The racist name calling, twisting of facts of this case and other over-the-top aspects of this blog look like it’s right out of the left’s inaccurate depiction of the right on the issue of illegal alien issues. Can any technie look this up?

Tell ’em where you saw it. Http://www.victoriataft.com

Pete the Banker:Administration Promises No Bailouts, Bank of America Bailout 2.0 in the Near Future?

Here’s something to ‘look forward to:’ “It was only last April that Bank of America Corp. was making fools out of the doomsayers who had called for its nationalization a year earlier. Taxpayers had gotten their bailout cash back. ….Now the bank may be on the verge of trouble again. Its stock has fallen 41 percent since April 15. Mortgage-bond investors are demanding untold billions of dollars in refunds. The foreclosure fiasco is metastasizing. A member of the Troubled Asset Relief Program’s oversight panel, AFL-CIO attorney Damon Silvers, openly worried at a hearing last week about the risk that Bank of America might need another bailout.
A few more months like the last one, and we may be wishing Bank of America had never returned its $45 billion of TARP money.” 
That happy thought comes from none other than Bloomberg’s Jonathan Weill (here).
President Obama is on record of saying the new Financial Reform Bill would mean “no more taxpayer-funded bailouts, period. ” Here.  Geithner likewise is on record (here) , Crucially, if a major firm does mismanage itself into failure, the Senate bill gives the government the authority to wind down the firm with no exposure to the taxpayer. No more bailouts. 
Conservatives railed against the Financial Reform Bill maintaining that it simply codified and institutionalized too Big To Fail and Federal Government Bailouts.  And now with Bank of America facing formidable challenges just months after its contrived and highly publicized  return of TARP funds, one would one expect he Administration to avoid the appearance of coddling big Financial Institutions, firms the President claims are so abhorrent?
Will the Administration live up to its promise to the taxpayer of no more public bailouts for major financial firms, or will he simply pass along another targeted stimulus bailing out Bank of America and Ken Lewis once again?  One suggests holding onto your wallet!! 
Pete the Banker

Tell ’em where you saw it. Http://www.victoriataft.com