I'll keep this one short. The potential Auto Bail Out is the biggest bunch of bunch of crap I've heard in a long time.
Point 1
The bail out is not the American thing to do, it is the stupid thing to do. As an American (company, businessman, entrepreneur, or otherwise), you can not go on year after year making a product that your American consumers are buying less and less of. That's not American, it's foolish. America is an innovation powerhouse; (businesses) get on that train or get left behind.
Point 2
Honda, Toyota, and BMW (at the least) have manufacturing plants here in the USA, with Americans building those cars. I do not see them lining up for a government hand out, and I would bet the farm that sales are down.Point 3
The economy is down, and it's hit my business too. People are spending less, paying invoices slower, and everything in between. Should I line up and ask the government for money? No! You, me and anyone else with a business has to adapt, not whine off crying to mommy government saying give me money, or jobs will be lost.
Economy or not, if you aren't making product people want to buy, your business will decline; it is as simple as that. All this lining up for the bail out buffet is absurd.
What ever it is, 70 billion, or 700 billion... the bail out of the financial industry will have positive and negative impacts. Positive, because they've basically put a giant band aid on a giant whale.... But the root of what caused the injury still exists. So regardless of how much money the government decides to appropriate to the bail out... it's just a temporary fix. So for positive's sake, it's a quick fix, and might avoid the panicking recession that is at hand.
The negative side for me is the lesson of responsibility. If I tank my company from personal greed and/or stupid decision making, no one is coming to my rescue. I believe at the heart of the credit crisis, mortgage write downs, and other financial collapses is personal greed. And I'm not really hypothesizing here either. There are several cases of a new CEO coming into leadership with a company and in just a year or two they wreck the company having created such a golden parachute in year 1, that the fines and firing that will take place in year two are simply a quick way out, where they can wash their hands of it all. And after all of it, they still have gobs of compensation they created and approved for themselves in year 1. So in those circumstances, there is no accountability.
There is one positive I see with the ridiculous rescue plan. Individual investors like myself can take heart of a certain stability of the markets. I can now throw my money into 10 baskets of good companies, and feel assured that if I picked industry leaders, my money is safe with a higher probability of positive return. With the example of the bail out, if things get bad enough, the government will step in and inject cash to fix the potential recession times. So my fear of my investments tanking, is much less. Sure it's now more of a fixed game, but we are forced to play the game with the rules at hand. It's not just supply and demand anymore. The market won't simply correct itself anymore. The market will correct its speed bumps, but if there's a road crater, it's government to the rescue. The big picture is kind of crappy, but we the individual investors can play this game with the new rules.
And here's a side note on the mortgage crisis. Everyone has been playing a ruthless game of blame for sometime now, and that's really a rope that has no end. There are so many people at fault, you can't just say it's the crooked CEO's, or the predatory lenders, or the dumb people who didn't read their contract and signed mortgages that are way over their pay grade. You can't say it's the real estate investors that spiked up a market so full of hot air that it was bound to deflate. Again, greed is at the forefront of the fault.
Greedy home buyers wanted to get in huge houses with little down, and then bet the farm that their over sized house would appreciate and make them gobs of money. How many millions of people want(ed) to make their millions off real estate? When board games are sold in stores about the industry, that's a sign of a bubble I would say. Lesson learned, the housing market doesn't always go up. But then again, no market does.
Then you have the mortgage industry. In this industry there are zillions and zillions of bees swarming around fishing out the next origination fee. They place a loan, and at minimum they get a point. We'll call it a point, because it sounds a lot better than saying you're going to finance an extra $1000 over the next 30 years so I can put that $1000 (1% of the loan) in my pocket right now, for placing your loan. And that's only on a $100,000 home. The national average is around 200K per home, which makes that one point yield a quick bee bonus of $2,000. Do you think any of these bees might present a not so good situation as great if they are a signature away from a quick $2,000? Many of these bees cared not about honest, ethical, situation appropriate loans. They would just push and fix and sell (which is the industry word) things until they could get their "point" on your loan. And because of this behavior, most of these people aren't working anymore. The days of those points getting passed out like bubble gum are over.
The end result, definitely not laissez-faire. I don't even know if there is a French economic term to describe our current economic state. Some are saying it's the United States of France; not from an ownership point of view, just from an economic governance point of view. That phrase certainly sounds strange, so even if it is accurate, I can't really buy into it. Never the less... and for now... long live the mostly free markets.
Here are a couple links for those who want to confirm their suspicions regarding the age of the Chinese gymnasts in the Olympics.
http://www.socialmedia.biz/2008/08/google-cache-on.html
http://www.iht.com/articles/2008/07/27/sports/OLY.php
Now if I could only find some credible sources to explain the idiocy of the judge’s inconsistent method of scoring and the new gymnastic scoring system.
Up until now, I've been fine with the Bob Costas commentary coming from the Olympics broadcasted by NBC. My favorable opinion of Costas was strongly reversed, almost instantaneously, at the close of his interview with President Bush.
I expected somewhat of a liberal based question drilling of the President to happen, given that Costas is with NBC and they almost exclusively drink the liberal Kool-Aid anytime it's served. But I personally think that Bobby showed very little respect for the President. Like him (Bush) or not, he deserves respect. Bob's questions were long, leading, carried a sour attitude, and were worded in a spoon fed liberal fashion; anything but balanced and unbiased.
But to cap it off, Bob's final remarks in the short interview directed to President Bush were, "You are dismissed." Did I really hear that? A reporter telling the President, "You are dismissed?"
I think, "Thank you for coming" (to the interview) might have been an appropriate final remark. Or how about, "It was an honor having you." Maybe, "Thank you for your time." But no, it was, "You are dismissed". It was extremely pompous.
I wish someone with cue cards, or working a camera could have quietly reminded Costas, "Hey... remember you are a news reporter, and you're talking to the President... just remember that in case you have the urge to feel more important then you actually are."
For those I rub shoulders with, it's no secret that I've snubbed my nose at faintest idea of an iPhone for over a year now. I've even blogged my snubbing remarks here and here.
So let's just say the tables have turned. I bought an iPhone 3G on opening weekend. News outlets will tell you that they sold a million units in the first 3 days, while it took them 74 days to reach the same milestone on iPhone v.1. So very literally, I'm one in a million now. But the question is, should you believe the hype?
Apple says it's twice as fast. Coming off of my well featured Treo (which had email, touch screen web browsing, etc), I would say the 3G unit is far more than twice as fast. As far as mobile data speeds are concerned, this thing is way faster. The phone imported all 7 email accounts from my Outlook (Win XP), and it checks all the accounts at lightning's pace.
The web browsing is just insane. Though the 3G unit's network is the fastest cellular network out there, it will pick up any available WiFi networks in reach. Being honest here, I only sense a mild speed difference between fully connected WiFi networks and the 3G network from ATT. The multi touch zoom in/out and drag while browsing is without doubt the most efficient mobile web browsing available.
Not even being an avid iTunes user, I easily synced the phone to my XP Pro running Dell, and threw a couple music and photo albums on the phone. Continuing to play around, I downloaded Bloomberg's free application for financial markets news and quotes. It also comes with a Google Maps app complete with pin point GPS location. So if you're lost in the car or otherwise, help is right in the palm of your hand. Bottom line, It was all a snap. A dumber than average monkey could work this thing like a pro.
Final remarks. I was once an iPhone doubting skeptic, but now I'm not only drinking the Koolade, I'm ready to serve it up to others. It is by far the best smart phone device out there.
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