Do You Know What TARP IS?

I didn't really know what TARP meant....until today. Troubled Asset Relief Program. Better known as The Bush and Paulsen Bailout Show. I just learned some interesting facts.

The General Accounting Office (GAO) just issued a report on December 3 concerning how well the bailout program of the financial institutions is working. The answer? No one knows! Approximately $150 billion has been injected as capital into 52 banks. Approximately $200 billion has been given to "other" institutions. One of those is AIG. No word on who the others are.

The GAO expressed concern in this report that no one knows how well the bailout funds are working and there is apparently no oversight in place to keep track of the funds.

Speaker of the House, Nancy Pelosi, issued a statement of concern regarding the lack of oversight of the bailout funds. She also expressed the concern of Congress about the failure of the Bush administration to use any of the funds to implement a foreclose mitigation plan to help Main Street. She also addressed the auto industry problem and the refusal of the Bush administration to use any of the funds for a short-term loan to that industry.

This means that $350 billion of the $750 billion bailout package is out there, circulating, but no one knows if it is helping (which probably means it isn't) and no one really even knows how it is being used. There was a provision in the bailout package that these funds were not to be used for dividend payments to shareholders, golden parachutes to executives, or bonuses to executives. Does anyone know if these conditions have been upheld? No.

What do you think!?

Obama Bonds with Governors

Never before has a President-elect and a Presidential transition team met with the Governors of the 50 states prior to taking office. President-elect Obama and Vice-President-elect Biden met with the Governors of 48 states this week at the National Governor's Association meeting in Philadelphia to hear their concerns, gather their ideas, and reassure them of his commitment to support them.

From all reports, the meeting went very well. First and foremost, the governors were glad to be included in the President-elect's planning process, which was a first. Obama presented his approach of rebuilding the economy from the bottom up through a jobs program. He is asking the governors not only to implement the plan but to help design the plan. Obama's plan involves creating jobs to help repair our infrastructure. The states have projects ready to go that are just waiting on funding so as soon as a plan is approved, shovels will be in the ground.

Most of the governors accepted Obama's plan with enthusiasm. Out of 50 states, 43 of them are facing serious deficits in their states. There were two governors who were actively opposed to Obama's plan. They were Governor Sarah Palin (R-AK) and Governor Mark Sanford (R-SC).

Obama takes another step in building good will and transparency in his administration by involving the governors of the states in not only implementing his plans but being involved in developing his plans.   

It's Official! Recession!

The National Bureau of Economic Research announced yesterday, Monday, December 1, what we all already knew. We're in a recession and have been since December, 2007. A year! So, Happy Birthday Recession of 2008!

Maybe I shouldn't sound quite so excited. After all, it IS a recession. I'm just happy that someone finally admitted it. After all, during the past year, Geroge W. Bush has, many times, stated, "We are not in a recession." Hank Paulsen has stated, "We are not in a recession." Ben Bernacke, the Chair of the Federal Reserve has said, "We are not in a recession." They have all said things like we're in an economic slowdown or we're in a period of diminished economic activity but no one would use the "R" word. Turns out, while they were avoiding the R word, the recession was proceeding right along.

The NBER defines recession as a broad contraction of the economy, not just one or two sectors of the economy. Domestic production and employment are the primary measures of economic activity. The committee relies primarily on monthly and quarterly economic indicators. For example, payroll employment has declined every month since December 2007. Looking at several economic indicators, the committee determined that the slide in real manufacturing and industrial production began in the fourth quarter 2007 and has continued through 2008.

One of President-elect Obama's economic team is currently on the NBER, Christina Romer.

The NBER does not forecast how long recessions might last.

Disturbing Update on Mumbai

It looks like five of the fifteen terrorists that invaded Mumbai are still at large in the city or elsewhere. Nine of the gunmen were killed during the crisis and one was captured alive. The Indian government has confirmed that ten men were involved, but the fishing boat the gunmen hijacked had supplies for fifteen men, including fifteen toothbrushes and fifteen jackets. 

It is feared that these five gunmen are still at large and could make a second strike on the city.

The Situation in Mumbai

I have a friend in Mumbai. She and I met when I developed a graduate course in financial markets and she was part of my support team. We worked online together for some months. She was a wonderful support person, a great lady and worked right downtown in the financial district of Mumbai. I've emailed her since the terrorists struck in Mumbai, but I've had no answer. I'm hoping and praying she's OK.

India is not as geared up as the U.S., Britain, or some of the European countries for terrorism attacks. The infrastructure is not there. I've heard that a team of U.S. experts is standing ready to fly to India to help. Why are they standing ready and not in the air? George Bush - get busy and get some help to the Indian people. They are a wonderful, gentle people and a great friend to the U.S. They need help and we should be there to give it to them.

160 people have been killed and 327 wounded. 5 Americans have been killed. The terrorists were targeting Americans, British, and Israelis. There is no proof, yet, that this is an Al-Quiada sponsored attack but all the marks of that group are there. The Indian government is suspicious of Pakistan and are particularly suspicious that the terrrorists have an agenda that includes the India-Pakistani dispute over Kashmir. Right now, there is no way to know.

The terror is ongoing in Mumbai. There are still one or two terrorists in the Taj hotel. The journalists reporting from Mumbai do not have much new information at this point.

More from here when there is news. Keep these people in your thoughts.

The U.S. Political Process

Who can imagine an election that generates much more passion than the presidential election we just had in the U.S.? So many of us were involved and invested in this election in some way. We had strong feelings about one of the Presidential candidates or another. For the first time in American history, we had a racial issue in the Presidential race, an issue that has scarred our country for more than a century.

Not only did we have a racial issue in this election, we had a deep political divide in this election with the American people being polarized at either end of the political spectrum. We became either conservative or liberal without much in between.

We had two candidates we could not have been much different. We had a candidate running on a Democratic platform with his mantra being change. On top of that, he was also the African-American candidate. He had bold, new ideas that would change the face of the U.S. Our other candidate was a tried and true American hero that we all admired, but who was of the same political party as our current President.

The elements of upheaval for the American people were all there. Instead of a celebration in Grant Park in Chicago, there could have been a riot in Grant Park in Chicago similar to the one in 1968 during the Democratic convention. But there wasn't.

We were passionate and polarized -- two elements that could have made for serious upheaval in our society during the campaign and on election night. There were a few disturbing incidents, but nothing like there could have been.

This election made me thankful for the American political process which is like none other in the world. For all of our faults, our democracy is still the best that there is. We are in the process of a very orderly transfer of power between a very different President and President-elect. Who else could do it but America?

Update on the Obama Cabinet!

It looks like both Obama and Senator Hillary Clinton (D-NY) want it to happen. They want her to be in the position of Secretary of State. The problem is Bill Clinton's business dealings regarding his Global Initiative and his library as Obama has promised transparency in his administration. Obama has also interviewed the Governor of New Mexico, Bill Richardson, for the post and it's well known that Senator John Kerry (D-MA) is also interested. Clinton has been endorsed by two Republicans for the job, Henry Kissinger and Arnold Schwarzenegger.

As for other cabinet positions, Robert Gates could very well stay on as Secretary of Defense. Chuck Hagel (R-NE) could come on board as he has been a critic of the Iraq war. Richard Lugar (R-IN) is a colleague and confident of President-elect Obama and is expected to play some part in his administration.

Gregory Craig, a former Clinton administration member, has been appointed as White House Counsel, and, of course, Rahm Emanuel is Chief of Staff. Senator John McCain (R-AZ) will meet with Obama on Monday. They will discuss what role he might play in the Obama administration.

Watch for the appointment of Secretary of Treasury. Given the current U.S. economic crisis, this could very well be the most important appointment the President-elect makes. Also, if Senator Clinton becomes Secretary of State, a burning question is who will become National Security Advisor and will there be a power struggle between Clinton, the NSA, and Vice-President Joe Biden, who has years of foreign policy experience.

Who would you like to see in these positions?

The Women of the Obama Economy

President-elect Barack Obama rolled out his top-notch economic team today. Two of his top advisors are very impressive women with brilliant minds who will serve close to the President in the White House and be instrumental in developing economic policy during the Obama administration.

Melody Barnes

Melody Barnes will led the Domestic Policy Council in the White House. This agency is in charge of interagency coordination and policy formulation regarding some important issues -- health care, immigration, education -- indeed, all of domestic policy. This position has been virtually invisible in the Bush administration because Bush hasn't dealt with domestic policy, except for tax cuts.

Barnes is an attorney who spent eight years as chief counsel to Senator Ted Kennedy (D-MA) on the Senate Judiciary committee. She has most recently been Executive Vice President at the Center for American Progress. Barnes is smart and is probably a nod to the left of the Democratic party. She is very qualified and dedicated to progressive change for the average American to have access to the American Dream. In her role in the Obama White House, she can have an impact on nearly every economic issue facing the country. Most feel that she is a brilliant choice for this position.

Christina D. Romer 

President-elect Obama has tapped Christina D. Romer to head his Council of Economic Advisors, which provides economic analysis and advice to the President. This is a very important position, that, together with the Domestic Policy Counsel and other members of the Obama economic team, will provide invaluable advice to the President concerning the economy.

Christina Romer is a professor of economics at the University of California, Berkeley. She has done groundbreaking research into the Great Depression and the recovery after the Great Depression as well as tax policy. She received her Ph.D at MIT and taught for awhile at Princeton University before moving to UC.

Romer is much respected by both conservatives and liberals. In addition to her professorship, she is co-director of the monetary economics program and a member of the National Bureau of Economics Research (NBER).

Great Political Movies

Check these out this weekend! These are some of the top movies about Presidential elections. Some are old. Some are real classics. Most are funny. Some are political satire. You’ll love them all!

1.       Dick (1999)

Two teenage girls (Kristen Dunst and Michelle Williams) bring down the White House during the Nixon administration and Watergate scandal. The girls end up influencing everything from G.Gordon LIddy breaking into Democratic headquarters to the Vietnam peace process. They learn of Nixon’s character and spill everything to Bob Woodward, played by Will Ferrell, and Carl Bernstein. A hilarious movie!

2.       Primary Colors (1998)

You gotta love this film. It’s a spoof on Bill Clinton and the sex scandal that happened while he was in office. John Travolta plays a southern governor who became President who keeps on going after the sex scandal with the support of his wife and his staff. Emma Thompson, the hilarious Kathy Bates, and Billy Bob Thornton (and you never know about him) star in this movie that was nominated for two Oscars. It’s a great political satire!

3.       My Fellow Americans (1996)

Two feuding ex-Presidents (Jack Lemmon and James Garner) get together to fight against the current president who is making them scapegoats in a scandal in his own administration. They try to clear their names on a trip across southern America and get involved in hilarious situations including a gay pride parade. Dan Akroyd, Sela Ward, and Lauren Bacall are the supporting cast. The movie was a great hit and comedy.

4.       The President’s Analyst (1967)

My oldie but goodie! For those of you who like old movies and spy films, this one is for you! It’s been preserved on DVD so you should be able to find it with no problem and it’s worth it! This film is a zany spy flick staring James Coburn as the President’s psychiatrist. He eventually quits this job and is then pursued by spy’s who want his knowledge. Lots of retro appeal. You’ll love it!

Take a Look at These Cars!

Nearly 61% of the American people do not want Congress to approve a bailout for the automobile industry. The thing is that the government help that is proposed is not a bailout, it is a low-interest loan. When Chrysler was posed to fail in few decades ago, they were given a low interest loan which they quickly paid back.

I don't know what the answer is. But, I do know that the Big Three already have the technology to build fuel efficient cars. I've posted pictures of some of the electric cars that have already been built by GM, Ford, and Chrysler. The Ford Think has been around since 2002. The Chevy Volt is ready to be rolled out. The Chrysler EcoVoyager is still a concept car but will roll out in 2010. So we know the automakers are working on fuel efficient cars. One of the problems is cost. The batteries for these cars are incredibly expensive and none of them are really affordable, yet, for the consumer.

How do you feel about the proposed loan to the Big Three automakers?

Senior Senator from Alaska Warns Palin Not to Run

Sarah Palin has been warned. The senior senator from Alaska, Republican Lisa Murkowski, has warned Palin to keep her hands off her Senate seat when the 2010 election rolls around. Murkowski, who has been in the Senate since 2002, fears that Palin is going to try a Senate run in order to increase her stock by running for the Senate before the 2012 Presidential election.

Murkowski has won some seniority in the Senate and some of the perks that go with it. She has risen to the top Republican spot on the Energy and Natural Resources Committee. She feels that Alaskans appreciate her seniority and would not look favorably on Palin trying to horn in on that. It particularly bothers Murkowski that Palin would probably begin a Presidential campaign for 2012 as soon as she took her place in the Senate (if she won the race) in 2010.

There is some interesting history here. Sarah Palin defeated Lisa Murkowski's father for the governorship of Alaska in 2006.

There is little doubt that Sarah Palin wants to hold a national office. Will she run for the Senate seat in 2010? Or will she wait and enter the Presidential race in 2012? What do you think?

A Coalition Government?

President-elect Barack Obama announced his choices for his national security team yesterday, Monday, December 1. Even conservatives are praising his choice of a "team of rivals," which it certainly is. One could go so far as to call it a coalition government. Whatever the case, he made some brave choices reflecting his own confidence in his ability to govern.

Senator Hilliary Clinton (D-NY) has been named as Secretary of State. Everyone knows this story. She was his often contentious rival in the Democratic Presidential primary and there have been worries about whether she could or would run Obama's agenda or her own.

Retired General Jim Jones will serve as National Security Advisor. Jones, a McCain supporter, is a widely respected, former military man and a member of the Joint Chiefs in 2002. He was a voice of caution in the runup to the Iraq war.

Current Defense Secretary Robert Gates, who is a registered Independent, will stay on for one year, in order to provide continuity as we try to wind up the Iraq war. Even though Gates and Obama differ on key issues regarding the Iraq war, Obama trusts him to give his best effort toward ending the Iraq war in a timely manner.

Arizona Governor, Janet Napolitano, has been named Security of Homeloand Security. Napolitano is tough on immigration as a Governor of a state with little sympathy for illegal immigrants. Her appointment drew high praise from Democrats and Republicans alike, including John McCain.

Eric Holder has been named as Attorney General in the Obama Administration. He's brilliant with wonderful credentials. The only problem is that he was an assistant attorney general in the Clinton administration and approved a questionable pardon which may cause him a problem in confirmation hearings.

Susan Rice has been named as United Nations Ambassador which has been elevated to a Cabinet level position. Susan Rice has extremely impressive credentials including serving as an assistant Secretary of State. Many were hoping she would be named as Secretary of State.

The Obama picks say a number of things about the President-elect. His national security team shows that he values diverse opinions and debate. He's willing to take big risks and is turning out to be a realist, not an ideologue. A good thing. 

What do you think about Obama's appointees to his national security team?

Obama Won't Govern in Isolation

When gas at the pump went to $4/gallon, George Bush didn't even know it until some time later when one of his advisors told him. Shocking? Yep. Bush has been known to be one of the most isolated Presidents in history. Isolated from the press corp. Certainly isolated from the people. As the years passed, Bush's White House developed a bunker mentality where everyone hunkered down as if every day was a crisis. Hey - what a thought! Maybe it was and we didn't even know it.

President-elect Obama is a different kind of man. He's gone from state senator to President in four short years. He's not from a family that is a political dynasty like the Bushes or the Kennedy's. He's not used to guarding his privacy and his family. The transition from private citizen to President of the United States is going to be shocking.

Obama is already experiencing some of that as things are pretty nailed down around his home in Chicago. He can't go to the barber anymore - the barber comes to him. One of the things he particularly misses is that he can't take a private walk with his wife. 

Obama is used to being able to interact and communicate with friends and colleagues. We all know the story of his Blackberry - and the fact he's a bit of a Blackberry addict. He'll probably lose his Blackberry and cell phone after Inaugeration Day. But, the President-elect is concerned - concerned that he'll have no way to listen to the people that elected him.

Recently, it was reported that Obama is working with his staff, White House lawyers, and the Secret Service to find a solution to the isolation that affects every President, no matter how available they strive to be to the public. If he loses his Blackberry, then he wants some backup form of communication. Who can blame him? i even admire him. A huge grassroots campaign elected him. He wants to keep in touch with them. He says that he wants to hear what's going on in the minds of the American people from those other than the 10 or 12 people who will have access to the Oval Office. I WANT him to have access to the voices of the American people. Don't you? Any solutions out there?

Let's End Black Friday

Even though I'm a political writer on PNN, I feel compelled to talk about what happened at a Wal-Mart today (Black Friday) in New York. It makes no sense to me that a crowd of American people trampled to death a Wal-Mart worker trying to get into the store when it opened.

WHAT? This is America. American people, civilized people, don't do things like that. Aren't we civilized anymore? What has happened to us that we would trample a worker at a store in order to get to the cheapest merchandise first? Does that make sense to any of you? This man, a temporary seasonal worker for Wal-Mart, DIED.

The pictures I've seen of Black Friday shopping have always bothered me. People pushing and shoving and snatching merchandise out of other people's hands. It sounds more like animals than people.

As the difficult environment in which we live completely drained the humanity out of us? Is our civilization breaking down to the point where human life is no longer valuable or not as valuable as some cheap item we can buy?

I am putting out a call for Wal-Mart and other stores to STOP Black Friday beginning next year. No more early morning store openings, no more deep discounts just on that day, no more Black Friday. Not until we recover our humanity.

It's Always an Emergency

One more weekend. One more middle of the night bailout. This time it's Citigroup. Two things are disturbing to me. First, why are the meetings on these bailouts always held in secrecy on the weekends or at night? What's the secret?

Second, what is really the emergency? Hank Paulsen and George W. Bush convinced Congress that they must pass the emergency $850 million financial bailout package weeks ago. That it was an emergency. That the sky would fall on our heads immediately if that package didn't pass and if it wasn't implemented immediately.

Last I heard, most of the money still hasn't been spent though I guess Citicorp is the proud recipient of some of it today. Has the sky fallen since the huge bailout passed? No. Paulsen and Bush promised that the funds would unfreeze the credit markets. Has that happened? No. The banks still aren't lending money. Whether they have no money to lend or they are using it for other things or they are hoarding it, no one seems to know.....including Bush & Co.

My question is who is the bailout money going to exactly. Yes, we know it is going to particular banks and financial institutions like AIG (that is another story for another time). However, WHO is the money going to at those companies? Is this all a big scam to bail out  Hank Paulsen's Wall Street buddies so they can get out of Dodge before they are indicted for fraud....or before they lose their severence packages or golden parachutes? We know Paulsen has already changed the game and is not buying up "toxic" assets (read: bad mortgages) but is, instead, "infusing capital" into these financial institutions. Ah, infusing capital. Propping up the banks.

I read an article this morning that talked about how poor Citicorp was in such bad shape because it had been involved in lending in the subprime market. All together now...............AHHHHHHHHHHHH. The management of Citicorp was smart enough to know that was risky. Why are we feeling sorry for them? Why don't they take their punishment along with the small banks that are failing that no one is doing anything for? Two more small, community banks failed this weekend. Did they get bailout money? NO.

WHERE IS THE OVERSIGHT? I think the American people should start demanding to see a breakdown of where and how THEIR money is being spent. I repeat........WHERE IS THE OVERSIGHT?

It's time to write your Congressman. This is YOUR money they are playing with. Ask one simple question and demand an answer.

WHERE IS THE OVERSIGHT?