Letter to Larry Kudlow

Larry, I am the guy you have been looking for to tell you, you are right! Since the collapse in September, when I lost most of my portfolio during September '08, I have not only gained back my losses, but doubling my pre-September balance. I have been promoted at work, as has my wife. Another promotion and raise look to be on their way.
As with any financial crisis, most people stop talking about the key component, revenue. I can't remember the last time I heard anyone talk about plain old revenue. The reason the banks are going to make huge profits soon, is because with their massive revenue streams, you can absorb an incredible amount of loss. Now when it turns, every dollar you don't lose is pure profit. This trend can turn quickly and the loss to profit swing can be immediate.
I am betting on old fashion believers in a free market, but get nervous whenever someone from the current administration says anything. The quickest way to economic prosperity would be to cut the government in half. Let me keep my raise and invest it, make myself money, and create opportunity for the innovative....

Jimmy

Realty Check

Over the past few weeks, it seems as though the American people have started to rethink Team Obama. The excitement at the beginning of the year, with the talk of change and progress, has been subsiding and being replaced with skepticism. Just as we found out with the kid who promised more recess and a pool, while running for Student Council, we are finding Obama to be mostly promises with little substance.

The economy is showing signs of recovery and slow growth, even though only about ten percent of the $787 billion stimulus has actually been spent. The money that has been spent, really had nothing to do with job creation and more to do with "pet projects" that otherwise would not have been funded.

health care reform looks to be more of a test of political power than anything to do with the protection of the uninsured. The administration is looking to spend over one trillion dollars, we don't have, to create a bureaucratic nightmare. If you really wanted to lower the cost of health care you would look at limiting lawsuits being filed against doctors. The real reason doctor's order "unnecessary tests" is to cover their asses, not profit generation. This would be tough for the Democrats, however, as it would anger their attorney base.

Talk to any small business owner, who is already dealing with a recession, tougher credit, and increased taxes about the health care reform and they will tell you it is going to shrink their payroll. It doesn't matter how low the cost, it is still an added expense many can't afford.

Lastly, it appears we are all taken aback by the obvious attack on capitalism. The American dream to work hard and be prosperous, is being threatened. The administration is looking to limit profits on financial companies, oil companies, Health Care providers, pharmaceutical companies and the list goes on. Now if you limit how much I can make, then you limit the taxes I pay, thus limiting your own income, which actually needs to increase by the trillions to pay off all the spending. No wonder we are getting skid dish and approval ratings are nose diving. These are our thoughts we look forward to yours...

Country of entitlement

I remember, as a young man, listening to my grandfather telling stories about the days after the War when he and his friends banded together, worked hard and created a successful business. Anyone who has read Tom Brokaw's book, The Greatest Generation, has read many similar stories. My Grandfather and his generation grew up in a country where everyone had the right to try to make a better life for themselves through hard work, ingenuity, and determination. Now we are living in a world of entitlement.
We can see this everywhere, just look at the discussions revolving around health care and employment. Over and over I hear that we need to take care of those who are without and those of us who have need to pay for it. We are penalized for living the "American Dream." Those of us who have made decisions to sacrifice, to work hard, to get an education, to persevere through tough times and live within our means are now being required to take care of those that didn't.
Being born in our country now has the perception of entitlement, you were born here so a better life is yours just for waking up. Does that sound like a society you want to live in? Are we really at the point where we want to scrap the will to be better and where personal accountability doesn't have a role. Where all you have to do is wake up and you will be provided for? If we allow this to happen, then we all owe our grandfathers who fought so bravely and worked so hard a big " I am sorry that we have let you down." We at Answer the White House Phone are not ready to concede and hope you will join us in speaking up and making sure the efforts of the greatest generation do not go for nought. These are our opinions and we look forward to yours.

Sex Scandals and the Constitution

I hope everyone had a happy and healthy Fourth of July celebrations. Among the parades, barbecues and fireworks, we all celebrated the freedom we enjoy on the birthday of our nation.
Over the past week I have had many conversations with friends, family and colleagues about the state of our great country. One thing that is very apparent is that we seem to have moved from a country lead by independent minded go getters to a country lead by enablers. We look to judge our leaders more on their personal lives than on the merits of their work. This is very evident in the latest round of scandals within the Republican Party.
Looking back at our first leaders, each of them had relations with women outside of wed lock, they each had their vices of tobacco, marijuana and alcohol, each of these behaviors would preclude them from consideration for public office today.
Look at our first President, who was pro hemp, pro tobacco, pro alcohol, and pro personal accountability. He was teamed up with Thomas Jefferson, Andrew Hamilton, Mr. Let's help everyone as long as you don't touch what is mine, and Benjamin Franklin, one of the great womanizers of all time. Without these men our country would not be what it is today. We may not even be independent of the British Monarchy.
Fortunately for us, back two hundred years ago, we as a society were more interested in what a person could accomplish than we were what they were doing behind closed doors. As we move forward we have to refocus ourselves on accomplishment rather than gossip and sensationalism, or else it will be soon safe to say that anyone that attends college will no longer be able to run for office. These are our thoughts and we look forward to hearing yours...

Stimulus 101

It is the month of August, on the shores of the  Black Sea  . It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.

Suddenly, a rich tourist comes to town.

He enters the only hotel, lays a 100 Euro note on the reception counter, and goes to
inspect the rooms upstairs in order to choose one.

The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher.

The butcher takes the 100 Euro note, and runs to pay his debt to the pig grower.

The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his
feed and fuel.

The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the 
town's prostitute that in these hard times, gave her "services" on credit.

The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

The hotel proprietor then lays the 100 Euro note back on the counter so that the 
rich tourist will not suspect anything.

At that moment, the tourist comes down after inspecting the rooms, and takes his 
100 Euro note, after saying that he did not like any of the rooms, and leaves town.

No one earned anything.  However, the whole town is now without debt, 
and looks to the future with a lot of optimism.

And that, ladies and gentlemen, is how the United States Government under President
Obama and the State of  California  under Governor Arnold are doing business today!

When I got this in my email I had to laugh, as it is so true. We look forward to your opinion... 

New Energy Bill Passes the House

The passing of the new energy bill through the House, again demonstrates the hypocrisy of our current leaders. New regulations are to cut carbon emissions seventeen percent by 2020. Looking at the travel of our President and the forms of transportation of our congress members, you really have to laugh.
If you are keeping track at home you will remember our President burned over 9000 gallons of carbon fuel on Earth Day, used Air Force One, the Presidential Helicopter and a motorcade to take Michelle on date night. These are only two examples, but looking at the cost and the carbon emissions, do you really think he believes what he is selling?
If you have a chance, a little time on your hands, take a look at the modes of transportation your representatives are using. We are sure that you will be surprised when you learn how many are driving SUVs, flying back and forth, here and there. You will also be surprised at how few actual drive a hybrid, or smart car.
As we look forward to creating a better environment and leaving a nicer, cleaner place for our children, we believe the best way is still one person at a time. Recycle when you can, car pool when able and limit unnecessary travel, unless it is by foot, bike or smart car. These are a few of our thoughts and we look forward to yours....

Regulation, Regulation, Regulation

If anyone was in denial about the real agenda of the Obama administration, yesterday should have been a wake up call. The proposed increased regulation on the Financial Industry, if passed as is, would have tremendous negative effects on our economy. The proposal is being sold as a way to make our system safer, less risky. This in theory will prevent another sub prime meltdown.
The issue here is that with the reduction in risk, the cost of financial products will increase. The opportunities for consumers to secure low cost financing will no longer be available. Consumers will also be forced to live a less leveraged life, which will reduce spending of future dollars and force people to pay with their own cash. Standard of living will decrease.
What will have an even greater impact on our economy will be the hindering of the entrepreneurial spirit. Without leverage how will people take a chance on themselves? If the cost of funds goes higher, less and less people will be able to chase their dream of innovation and being their own boss.
The good news is that there will most likely be years of negotiating and by then maybe a little reason will enter into the conversation and we can get on with the American way of life....