As a public service announcement to any single Postcards readers contemplating proposing to their sweetie over the holidays, please note that inland-based sites like restaurants and parks work as effectively as beach proposals (and are less hazardous to your health).
You have been warned. That is all.
Thursday, December 4, 2008
American Ingenuity On Display
You may have missed this little gem in NRO's The Corner the other day. A group of community activists (hey, know any of them?) has filed a federal civil rights complaint against two Wall Street ratings firms, Moody’s Investors Service and Fitch Ratings, charging that the firms essentially profited from the stupidity of low income mortgage holders.
OK, maybe that’s not what the complaint actually says…its more like the companies profited by assigning high ratings to bonds backed by mortgages “that were designed to fail” because of “unfair payment terms and insufficient borrower income levels.”
Further, the National Community Reinvestment Coalition (NCRC) charges that Moody’s and Fitch “knew or should have known” the subprime mortgages were being disproportionately marketed to minority consumers. A 2006 study is reported to have shown that an estimated 45% of mortgages extended to Latinos and 55% of African-Americans were subprime – a rate reportedly three to four times higher than non-Hispanic whites.
But isn’t that the point? Isn’t this whole “ownership society” notion that everyone is entitled to own a home, regardless of financial status, part of the equation that led to this current financial mess? Groups like the NCRC (and Obama) were most likely at the forefront of battles with major lending institutions during the 1990’s pressuring them to open the aperture of lending to minorities, knowing full well many if not most of these folks wouldn’t qualify for conventional mortgages. And guess what…they were right!
The story doesn’t directly say on whose behalf the NCRC has filed the complaint; yet I have a feeling it is not the holders of the junk bonds, but rather the constituents comprising the “community” of the NCRC.
I don’t absolve Wall Street of its sins any more than I do the stupidity and shortsightedness of the holders of these subprime mortgages. They have both made their respective bed, but neither party appears accountable enough to lie in it.
OK, maybe that’s not what the complaint actually says…its more like the companies profited by assigning high ratings to bonds backed by mortgages “that were designed to fail” because of “unfair payment terms and insufficient borrower income levels.”
Further, the National Community Reinvestment Coalition (NCRC) charges that Moody’s and Fitch “knew or should have known” the subprime mortgages were being disproportionately marketed to minority consumers. A 2006 study is reported to have shown that an estimated 45% of mortgages extended to Latinos and 55% of African-Americans were subprime – a rate reportedly three to four times higher than non-Hispanic whites.
But isn’t that the point? Isn’t this whole “ownership society” notion that everyone is entitled to own a home, regardless of financial status, part of the equation that led to this current financial mess? Groups like the NCRC (and Obama) were most likely at the forefront of battles with major lending institutions during the 1990’s pressuring them to open the aperture of lending to minorities, knowing full well many if not most of these folks wouldn’t qualify for conventional mortgages. And guess what…they were right!
The story doesn’t directly say on whose behalf the NCRC has filed the complaint; yet I have a feeling it is not the holders of the junk bonds, but rather the constituents comprising the “community” of the NCRC.
I don’t absolve Wall Street of its sins any more than I do the stupidity and shortsightedness of the holders of these subprime mortgages. They have both made their respective bed, but neither party appears accountable enough to lie in it.
Wednesday, December 3, 2008
What A Drag It Is Getting Old...
An ominous sign from Conseco. The insurer has diverted a portion of its long term care policies to an independent trust - a prelude to what I suspect may be a divestiture from this offering altogether. Conseco may be the first domino to fall in a long line of insurers who see where the state of health care is headed and want no part of it.
While Washington falls all over itself doling out goodies in an effort to spend us out of short term financial meltdown, it appears to be paying scant attention to this 800 lb gorilla of the health care continuum waiting in the wings...
And you think you pay too much for health care now? You ain't seen nothin' yet...
While Washington falls all over itself doling out goodies in an effort to spend us out of short term financial meltdown, it appears to be paying scant attention to this 800 lb gorilla of the health care continuum waiting in the wings...
And you think you pay too much for health care now? You ain't seen nothin' yet...
Tuesday, December 2, 2008
Er, About That "Team Of Rivals"...
Political hindsight apparently has astigmatism - just ask Vice President-elect Joe Biden. Speaking to reporters about his (then) rival and new boss, Barack Obama: "I think he can be ready but right now, I don’t believe he is. The presidency is not something that lends itself to on-the-job training."
And this foot-in-mouth disease does not appear to be contained to the lower echelons of the Executive Office. Commenting on then-candidate Hillary Clinton's foreign policy experience during last Spring's debate, candidate Obama remarked of his new Secretary of State, "What exactly is this foreign policy expertise? Was she negotiating treaties? Was she handling crises? The answer is no."
Adding to the lovefest, incoming Chief Counsel Greg Craig said this about Clinton last March: "There’s no evidence that she participated or asserted herself in any of the crises that took place during the eight years of the Clinton presidency. White House records show that she was consistently absent when critical decisions were being made and that her trips abroad were largely ceremonial."
And last, but certainly not least, Obama's choice for UN Ambassador Susan Rice weighs in on the new Secretary back during the primaries: "There is no crisis to be dealt with or managed when you are First Lady. You don't get that kind of experience by being married to a commander-in-chief.
That's quite a team Barack's assembled.
Remember kids, in Washington there is no "I" in "Team"- but there is "Eat Me".
And this foot-in-mouth disease does not appear to be contained to the lower echelons of the Executive Office. Commenting on then-candidate Hillary Clinton's foreign policy experience during last Spring's debate, candidate Obama remarked of his new Secretary of State, "What exactly is this foreign policy expertise? Was she negotiating treaties? Was she handling crises? The answer is no."
Adding to the lovefest, incoming Chief Counsel Greg Craig said this about Clinton last March: "There’s no evidence that she participated or asserted herself in any of the crises that took place during the eight years of the Clinton presidency. White House records show that she was consistently absent when critical decisions were being made and that her trips abroad were largely ceremonial."
And last, but certainly not least, Obama's choice for UN Ambassador Susan Rice weighs in on the new Secretary back during the primaries: "There is no crisis to be dealt with or managed when you are First Lady. You don't get that kind of experience by being married to a commander-in-chief.
That's quite a team Barack's assembled.
Remember kids, in Washington there is no "I" in "Team"- but there is "Eat Me".
Monday, December 1, 2008
Wheeeeeeeeeeee!!!!!!!
The Dow continued its rollercoaster ride in Economic Loony Land, closing down almost 680 points this afternoon. What served as the catalyst for the plunge? Those who follow such things point to the National Bureau of Economic Research’s contention that the US has been in recession since December 2007.
Congratulations, we’ve been living in the greatest depression since the Depression for almost a year now. I’m sorry, but I fail to see how the NBER’s conclusion somehow sent the markets into such a panic. US Treasury Secretary Hank Paulson also said today that he’s working to expand the availability of TARP funds for foreclosure relief. First, he uses the $700B to buy toxic assets, then he doesn’t – then, he uses $350B to inject capital into failing financial institutions, and then walks away. Now, he wants to use billions to help homeowners. See any correlation here?
I’m more inclined to side with those who see a connection between the politicization of the markets and its current manic-depressive volatility.
Congratulations, we’ve been living in the greatest depression since the Depression for almost a year now. I’m sorry, but I fail to see how the NBER’s conclusion somehow sent the markets into such a panic. US Treasury Secretary Hank Paulson also said today that he’s working to expand the availability of TARP funds for foreclosure relief. First, he uses the $700B to buy toxic assets, then he doesn’t – then, he uses $350B to inject capital into failing financial institutions, and then walks away. Now, he wants to use billions to help homeowners. See any correlation here?
I’m more inclined to side with those who see a connection between the politicization of the markets and its current manic-depressive volatility.
Change I Can Certainly Believe In...
Preliminary crowd estimates for Obama's January 20th inauguration are topping over one million people and counting. Add to that hotel space at overcapacity and you have a recipe for good old fashioned capitalism.
I know a certain blogger (rhymes with Conservative Yahoo) with a splash pad in the Crystal City area in a position to make quite a nice bit of cabbage...
I know a certain blogger (rhymes with Conservative Yahoo) with a splash pad in the Crystal City area in a position to make quite a nice bit of cabbage...
On Coming Home...
Batman has the Batcave; Superman, his Fortress of Solitude. For me, I have found that the cure for my various stresses over the years to be an extended visit home. Of course, I get curious looks from some, who question the appeal of slogging down I-95 through holiday traffic to a place where the newest subdivision is named after a Prohibition-era moonshine runner. You see, my parents retired to rural North Carolina over ten years ago, so my family’s semi-annual pilgrimage is not to the place of my childhood. And life in Clayton, NC moves a tic slower than it does in Philadelphia, PA. Much slower.
But that’s the selling point for me. When I’m “home”, it’s as if time freezes, if just for a few days. Every beautiful processed food item I enjoyed as a child and currently verboten in the Goldwater household is on prominent display – the toughest decision I make during a typical day revolves around what I’ll have for breakfast – Cap’n Crunch, Cocoa Puffs or Apple Jacks. I don’t worry about deadlines, sales quotas or mortgages, they’ll still be there when I get back. And with me through all of this is Mrs. Goldwater, who indulges me on my little time travel adventures; who herself has managed to develop a good relationship with her in-laws, including my sister and sister-in-law, who live in the area as well.
Adding to the allure for me is the fact that my son and daughter are around the same ages as my sister’s two boys, and the four of them get along famously. It is a joy watching them develop a foundation upon which I hope will become a life-long friendship.
Yet visits these days are becoming all too bittersweet. With every trip, I see my parents age before my eyes. But although my mom and dad may have lost a step or two with time, their hospitality and generosity have never ebbed. Their pride in their children and love of their grandchildren provides them an almost boundless source of energy.
But it is through this lens that I also see they have more days behind them then ahead, forcing me to grudgingly acknowledge and accept my own aging (as if the gray hair at 20 wasn’t a giveaway), as well as that of my brothers and sister. My siblings and I are no longer children living under the same roof under the benevolent dictatorship of Mom and Dad - each of us has become a responsible adult, each with our own families, values, opinions and set of adult-like problems.
We arrived home last Saturday evening after spending eight hours in a minivan. No sooner was my eight year-old son in the front door did he burst into tears. This wasn’t the inconsolable outburst of an impudent child who didn’t get what he wanted, but rather the heartfelt sadness of a young man who is beginning to understand that life isn’t permanent, that nothing lasts forever and even life’s most mundane moments are ones to be savored.
I wish I could tell him it gets easier.
But that’s the selling point for me. When I’m “home”, it’s as if time freezes, if just for a few days. Every beautiful processed food item I enjoyed as a child and currently verboten in the Goldwater household is on prominent display – the toughest decision I make during a typical day revolves around what I’ll have for breakfast – Cap’n Crunch, Cocoa Puffs or Apple Jacks. I don’t worry about deadlines, sales quotas or mortgages, they’ll still be there when I get back. And with me through all of this is Mrs. Goldwater, who indulges me on my little time travel adventures; who herself has managed to develop a good relationship with her in-laws, including my sister and sister-in-law, who live in the area as well.
Adding to the allure for me is the fact that my son and daughter are around the same ages as my sister’s two boys, and the four of them get along famously. It is a joy watching them develop a foundation upon which I hope will become a life-long friendship.
Yet visits these days are becoming all too bittersweet. With every trip, I see my parents age before my eyes. But although my mom and dad may have lost a step or two with time, their hospitality and generosity have never ebbed. Their pride in their children and love of their grandchildren provides them an almost boundless source of energy.
But it is through this lens that I also see they have more days behind them then ahead, forcing me to grudgingly acknowledge and accept my own aging (as if the gray hair at 20 wasn’t a giveaway), as well as that of my brothers and sister. My siblings and I are no longer children living under the same roof under the benevolent dictatorship of Mom and Dad - each of us has become a responsible adult, each with our own families, values, opinions and set of adult-like problems.
We arrived home last Saturday evening after spending eight hours in a minivan. No sooner was my eight year-old son in the front door did he burst into tears. This wasn’t the inconsolable outburst of an impudent child who didn’t get what he wanted, but rather the heartfelt sadness of a young man who is beginning to understand that life isn’t permanent, that nothing lasts forever and even life’s most mundane moments are ones to be savored.
I wish I could tell him it gets easier.
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