Information Update # 3: Notes, Quotes and Thoughts for a Rainy Monday

# 003 March 16, 2009

Notes, Quotes and Thoughts for a Rainy Monday

The actor Alec Baldwin, well noted for his liberal stands behind anything that increases taxes has come out against doing away with tax breaks in New York for the movie industry. “I’m telling you right now, if these tax breaks are not reinstated into the budget, film production in this town is going to collapse, and television is going to collapse, and it’s all going to go to California.” So, I guess taxes do matter, Mr. Baldwin! I’m really impressed by the change of heart.

This clip is from my sister who works for a major worldwide banking organization and is very concerned about the status and position of the bankers of the world. To quote her, “this is a warm, touching effort of someone reaching out and trying to help the beleaguered investment banking community”.

http://www.hulu.com/watch/60902/late-night-with-jimmy-fallon-save-the-bankers

I say; kudos to those who try enough to care… I mean care enough to try.
The Saturday (3/14/09) Wall Street Journal has an article titled: “MGM Mirage Facing Breakup”. MGM needs to raise more than $1 Billion to fund its “future”. It seems the Las Vegas casino owners went on a borrowing and spending spree in the days of the easy money bubble… now with attendance and revenue down, the loans are being called due… am I the only one that notes a parallel to the USG and their spending policies? The difference is that with the Vegas casinos we pay, we play and we might win, and if we don’t we can go home and lick our wounds. With the USG’s tax and spend policies we pay, we don’t play, we never win, and they follow us to our homes to take more and more money. We don’t even get the [perceived] satisfaction of winning every now and then! Ouch.

The newest survey from the Spectrum Group showed that the number of U.S. millionaires fell 27% last year. Thursday’s Federal Reserve flow of funds report shows that the wealth of American families has plunged nearly 18%. The population of U.S. millionaires is now at the 2003-2004 level, which means that the current economic situation has erased the millionaire boom of the past five years. Ouch.

The U.S. and International stock markets ended last week (on Friday the 13th nonetheless) with a strong upward movement, ignoring sales, employment and income date. I say thank you to the hardy investment houses and big institutional stock buyers for buying and pushing the prices back up… as President Obama and his administration has told us, we must spend our way out of this downturn. I say thank you to the big institutional funds for putting on a happy face and spending. Even if they are using tax payer bailout funds to buy… HEY… at least the're trying!

The Dollar is flat, and the Franc fell, but it’s ok… President Obama’s press secretary Robert Gibbs assured China that, “There’s no safer investment I the world than the United States…” Hey… didn’t I say that last week (see Voice Cafe Information Update #002 March 9, 2009)? Wow, I am impressed that the Obama administration is reading my blog. I’m flattered. Now if I can only get them to reference their sources in the press conferences…

Did any of you catch the head of the Federal Reserve, Ben Bernanke on 60 minutes? He predicted that the current economic crisis is likely to flatten out in time for Christmas. “We’ll see the recession coming to an end, probably this year. We’ll see recovery beginning next year.” Of course, he did caution, “we won’t be back to full employment… But we will, I hope, see the end of these declines that have been so strong in the last couple of quarters.”

I’m not so certain the American people are in agreement with Mr. Bernanke, as evidenced by the AP report out today that states there is “double digit growth in the number of home gardeners this year and mail order companies report such a tremendous demand that some have run out of basic vegetables such as onions, tomatoes and peppers.” I know I’ve started my garden, but thanks to Mr. Bernanke’s up lifting words I know I won’t have to worry about planting a garden next year… everything will be fine! Here’s the link to the entire article.

http://www.google.com/hostednews/ap/article/ALeqM5jWETfHOZg1EZckn2mKqmlhK69kowD96UJF001

According to Friday’s Wall Street Journal, overall grain prices are lower, but farmers are not responding by cutting prices, they are responding by cutting production… not a good sign for those of us out here that still have that nasty habit of eating. Farmers are actually expected to plant the fewest acres since 1983. With the ethanol industry getting more and more subsidies from our friends in Washington, that can only mean higher corn and soybean prices. Ouch.

Things will get better… I mean, Madoff is in jail, the USG is going to do all they can to keep AIG employees from getting their bonuses… and sales of Ayn Rand's, “Atlas Shrugged” are at an all time high.

I will close with a great quote from President Abraham Lincoln, President Obama’s hero and historical mentor (and since we’ve already established that the Obama administration is reviewing our blog for pertinent information, perhaps they will take this quote to heart!):

“You cannot bring about prosperity by discouraging thrift. You cannot keep out of financial trouble by spending more than you earn. You cannot strengthen the weak by weakening the strong. You cannot help the wage earner by pulling down the wage payer. You cannot further the brotherhood of man by encouraging class hatred. You cannot help the poor by destroying the rich. You cannot build character and courage by taking away initiative and independence."
Abraham Lincoln


I thought you might just want to know!

With regards,
Allen

Information contained herein is deemed reliable but not guaranteed.
http://voicecafe.blogspot.com/