Remember the oil bubble?

In the zone and engrossed by a lengthy to-do list, oblivious to gloom,  I walked through the front door  at work today and nearly walked past a client who’s been with our company for 5 years.   After an embarrassing double take that betrayed my inattention, I greeted Jim and learned that he lost his job several months ago.  Three managers were let go on the same day.  He was one of three.  This client is my first intimate contact with the recession.  

Ours is an academic economy, we’ve been telling ourselves.  We’ve enjoyed this mantra.  It’s been with us through many good “closes,” some unforgotten “losses” and most importantly, my own personal discovery of the martini and cabernet sauvignon.  

I lost my mantra today.  I still have my religion, such as it is, but I lost my mantra. 

Let’s talk about the grand summer of 2008 when the price of gas broke the buck.    That’s right a 222% change.  Percent change is change divided by base, right?  True, the price of gas only doubled in 2008.  Well, let’s get this right.  Prices hit three dollars then dropped for the 2006 mid-terms.   They hit four dollars then dropped for the 2008 election.  OK, but gas was $1.35 before we invaded Iraq.  It went above $4.35 in the summer of 2008.  That’s  $3 / 1.35 = 222% increase in five years.   222%

 Why has the media let off the hook those responsible for the price-fixing that defined 2008?  Demand more for your money,  America.  Demand the truth.   Who was responsible for the price fixing?  Yes, Wall Street is guilty of mortgage crimes.  Bankers are guilty.  Consumer borrowers are guilty.   There’s plenty of guilt.   You and I share in the guilt, reader and writer.

How did the 222% increase in gas prices affect the economy?   If this increase was the result of anti-trust violations, we have to hold accountable those who were responsible. 

When  you get filthy rich by breaking the law, there is a price to pay.  No exceptions. 

 

 

http://www.usatoday.com/money/economy/2006-04-27-energy-econ-usat_x.htm

By Barbara Hagenbaugh, USA TODAY

WASHINGTON — The U.S. economy has digested surging energy costs in the past few years with little more than a hiccup.

In a USA TODAY survey of economists taken April 20 to 25, 40% said higher energy prices are the No. 1 risk for the economy. While other risks were cited, such as a decline in the housing market and terrorism, energy was the top concern.

http://www.nytimes.com/2008/06/09/business/09gas.html

Here in the Mississippi Delta, some farm workers are borrowing money from their bosses so they can fill their tanks and get to work. Some are switching jobs for shorter commutes.

People are giving up meat so they can buy fuel. Gasoline theft is rising. And drivers are running out of gas more often, leaving their cars by the side of the road until they can scrape together gas money.

http://www.iht.com/articles/ap/2008/08/04/america/Economy.php

Economists believe the $168 billion stimulus program will continue to lift the economy in the current quarter, but many are worried that the economy could slow significantly in the final three months of this year and early next year as the impact from the one-time checks wears off.

Brian Bethune, senior U.S. economist at Global Insight, a private forecasting firm, said the GDP could post back-to-back declines in those two quarters, meeting the traditional definition of a recession.

“The rebates are not translating into anywhere near the spending impulse that Congress and the administration had hoped for,” he said. “Under these circumstances, the economy remains in very fragile condition.”

In the zone and engrossed by a lengthy to-do list, oblivious to gloom,  I walked through the front door  at work today and nearly walked past a client who’s been with our company for 5 years.   After an embarrassing double take that betrayed my inattention, I greeted Jim and learned that he lost his job several months ago.  Three managers were let go on the same day.  He was one of three.  This client is my first intimate contact with the recession.  

Ours is an academic economy, we’ve been telling ourselves.  We’ve enjoyed this mantra.  It’s been with us through many good “closes,” some unforgotten “losses” and most importantly, my own personal discovery of the martini and cabernet sauvignon.  

I lost my mantra today.  I still have my religion, such as it is, but I lost my mantra. 

Let’s talk about the grand summer of 2008 when the price of gas broke the buck.    That’s right a 222% change.  Percent change is change divided by base, right?  True, the price of gas only doubled in 2008.  Well, let’s get this right.  Prices hit three dollars then dropped for the 2006 mid-terms.   They hit four dollars then dropped for the 2008 election.  OK, but gas was $1.35 before we invaded Iraq.  It went above $4.35 in the summer of 2008.  That’s  $3 / 1.35 = 222% increase in five years.   222%

 Why has the media let off the hook those responsible for the price-fixing that defined 2008?  Demand more for your money,  America.  Demand the truth.   Who was responsible for the price fixing?  Yes, Wall Street is guilty of mortgage crimes.  Bankers are guilty.  Consumer borrowers are guilty.   There’s plenty of guilt.   You and I share in the guilt, reader and writer.

How did the 222% increase in gas prices affect the economy?   If this increase was the result of anti-trust violations, we have to hold accountable those who were responsible. 

When  you get filthy rich by breaking the law, there is a price to pay.  No exceptions. 

 

 

http://www.usatoday.com/money/economy/2006-04-27-energy-econ-usat_x.htm

By Barbara Hagenbaugh, USA TODAY

WASHINGTON — The U.S. economy has digested surging energy costs in the past few years with little more than a hiccup.

In a USA TODAY survey of economists taken April 20 to 25, 40% said higher energy prices are the No. 1 risk for the economy. While other risks were cited, such as a decline in the housing market and terrorism, energy was the top concern.

http://www.nytimes.com/2008/06/09/business/09gas.html

Here in the Mississippi Delta, some farm workers are borrowing money from their bosses so they can fill their tanks and get to work. Some are switching jobs for shorter commutes.

People are giving up meat so they can buy fuel. Gasoline theft is rising. And drivers are running out of gas more often, leaving their cars by the side of the road until they can scrape together gas money.

http://www.iht.com/articles/ap/2008/08/04/america/Economy.php

Economists believe the $168 billion stimulus program will continue to lift the economy in the current quarter, but many are worried that the economy could slow significantly in the final three months of this year and early next year as the impact from the one-time checks wears off.

Brian Bethune, senior U.S. economist at Global Insight, a private forecasting firm, said the GDP could post back-to-back declines in those two quarters, meeting the traditional definition of a recession.

“The rebates are not translating into anywhere near the spending impulse that Congress and the administration had hoped for,” he said. “Under these circumstances, the economy remains in very fragile condition.”

 

Seven Pictures of Buddha, Prophet’s on my tongue

Put down your cross America and listen to some Springsteen.

Mary’s Place

The Lies We Trust Cost The Most

The week, no boubt the day before Lehman failed, the Excellence in Broadcasting Network was confidently telling its listeners to ignore the man behind the curtains, this is America, the land of peace, prosperity, wealth. 

If you were listening to the man behind the Golden EIB mike, you believed your investments were secure, your mortgage was in equity, your kids were going to college.

Will those who listen to the EIB network hold accountable those who lied the hardest and the longest.  It’s the lies of those you trust that cost the most.

I lost my mantra today.

I lost my mantra today.   

 

 

In the zone and engrossed by a lengthy to-do list, oblivious to gloom,  I walked through the front door  at work today and nearly walked past a client who’s been with our company for 5 years.   After an embarrassing double take that betrayed my inattention, I greeted Jim and learned that he lost his job several months ago.  Three managers were let go on the same day.  He was one of three.  This client is my first intimate contact with the recession.   

Ours is an academic economy, we’ve been telling ourselves.  We’ve enjoyed this mantra.  It’s been with us through many good “closes,” some unforgotten “losses” and most importantly, my own personal discovery of the martini and cabernet sauvignon.   

I lost my mantra today.  I still have my religion, such as it is, but I lost my mantra. 

Let’s talk about the grand summer of 2008 when the price of gas broke the buck.    That’s right a 222% change.  Percent change is change divided by base, right?  True, the price of gas only doubled in 2008.  Well, let’s get this right.  Prices hit three dollars then dropped for the 2006 mid-terms.   They hit four dollars then dropped for the 2008 election.  OK, but gas was $1.35 before we invaded Iraq.  It went above $4.35 in the summer of 2008.  That’s  $3 / 1.35 = 222% increase in five years.   222%

 Why has the media let off the hook those responsible for the price-fixing that defined 2008?  Demand more for your money,  America.  Demand the truth.   Who was responsible for the price fixing?  Yes, Wall Street is guilty of mortgage crimes.  Bankers are guilty.  Consumer borrowers are guilty.   There’s plenty of guilt.   You and I share in the guilt, reader and writer.

How did the 222% increase in gas prices affect the economy?   If this increase was the result of anti-trust violations, we have to hold accountable those who were responsible. 

When  you get filthy rich by breaking the law, there is a price to pay.  No exceptions. 

 

 

Old headlines, just in case you forgot about gas prices.

http://www.usatoday.com/money/economy/2006-04-27-energy-econ-usat_x.htm

By Barbara Hagenbaugh, USA TODAY

WASHINGTON — The U.S. economy has digested surging energy costs in the past few years with little more than a hiccup.

In a USA TODAY survey of economists taken April 20 to 25, 40% said higher energy prices are the No. 1 risk for the economy. While other risks were cited, such as a decline in the housing market and terrorism, energy was the top concern.

http://www.nytimes.com/2008/06/09/business/09gas.html

Here in the Mississippi Delta, some farm workers are borrowing money from their bosses so they can fill their tanks and get to work. Some are switching jobs for shorter commutes.

People are giving up meat so they can buy fuel. Gasoline theft is rising. And drivers are running out of gas more often, leaving their cars by the side of the road until they can scrape together gas money.

http://www.iht.com/articles/ap/2008/08/04/america/Economy.php

Economists believe the $168 billion stimulus program will continue to lift the economy in the current quarter, but many are worried that the economy could slow significantly in the final three months of this year and early next year as the impact from the one-time checks wears off.

Brian Bethune, senior U.S. economist at Global Insight, a private forecasting firm, said the GDP could post back-to-back declines in those two quarters, meeting the traditional definition of a recession.

“The rebates are not translating into anywhere near the spending impulse that Congress and the administration had hoped for,” he said. “Under these circumstances, the economy remains in very fragile condition.”

Republicans may not abstain from participation!

Thousands of bloggers will hold you accountable

Republicans will not be allowed to sit out

You’ve admitted this is your strategy

It is not acceptable

No congressional abstinence, period

A little less passive aggressive, A little less spending, Mr. President

A little less passive aggressive

A little less spending, Mr. President

Your Support with Independents is sketchy

Thousands of bloggers intend to hold you accountable

Your Support is Tenuous Mr. President with Independents!

Rush, sit down and shut up.  If you will stop demanding a personal tax cut, the President will be able to hear me say NO NEW SPENDING.   OK, fix health care.  Outside of that, NO NEW SPENDING. Not even on banks unless you’re covering FDIC’s shortfall, nothing.  NO NEW SPENDING.   See Rush, he’s already hearing me.  And he knows that I was a Republican before I was an Independent and that my support is tenuous.  So sit down Rush.  Shut up.

Where was Ayn Rand?

This post has been edited, improved and reposted.  

Click here for the coffee enhanced version.

Toe-curling stupor

The President has demonstrated enormous patience and wisdom in transitioning our behemoth bureaucracy away from the knee-jerk mismanagement of federal policy that has for nearly a decade spoiled wall street into a toe-curling stupor.

Will Tax Cuts Really Help?

On Limbaugh’s Demands for Additional Tax Cuts

• The Bush administration spent trillions of dollars we didn’t have on things we didn’t need as well as things that did us harm like an unprovoked war in Iraq. Sooner or later this debt must be paid down. Later is almost here.

 • During the boom days of the past decade (that were created by wistful real estate buying and obstruction of mortgage regulations by the executive branch of the federal government) the Bush tax cuts (for the old fashioned investor classes) failed to generate sustainable economic growth across class lines as required for trickle-down economics to work effectively. In other words, new jobs, new businesses, new money were not created at levels that could generate the tax revenue required to manage the eight Bush budgets. Bottom line: trickle-down, Reaganomics, tax-cut stimulation failed in the 2000s to keep up with government spending just like it failed to keep up with government spending in the 1980s. These facts pre-date the onset of the banking crisis which became publicly visible in August of 2007. Our government was outspending itself in the good times.

• Rush Limbaugh presently spends his days demanding more tax cuts based on his presumption that we have not yet figured out that the Bush tax cuts didn’t work. The boom of the 2000s was a speculative housing bubble. Period. Nothing more. The Bush tax cuts did not generate sustainable economic growth. The tax cuts Limbaugh now so crudely demands will perform the task of righting the economy no more effectively than they performed under Bush.

• I am challenging loyal Rush listeners to call the show this week and start asking the hard questions that Rush doesn’t want to hear. Mr. Limbaugh, isn’t “insanity doing the same things over and over and expecting to get different results? If so, why should I support the policies of the Bush administration that created the budget deficits that plague our country today? It didn’t work during the Bush boom, why will it work during the Bush crash?”

• I’ve read Limbaugh’s holy-grail, by the way, Atlas Shrugged.  I probably read it before Rush read it.  It is the reason I am a fiscal conservative and not a liberal. It is an exceptional book with truly prescient insights into the chaos that surrounds us today. The author understood that it is the captains of industry who make opportunity and that they must be rewarded with a fair and reasonable tax code. I am not in favor of Obama deficits any more than I was in favor of Bush deficits. All this said, there are elements of the Obama budget that we must accept as necessary medicine. This is the subject of a future post. For now we have to stay on task. Limbaugh is demanding more of the bad medicine that created the economic collapse keeping Americans awake at night.

• Post disagreements, agreements, questions and challenges of any kind on this blog.  Get a dialogue going. It’s time for all of us to roll up our sleeves and get into the heart of the questions at hand like:  more tax or less tax for those earning over $250,000 per year?