"What about Obama?"
Posted by: fred simon on 28 August 2008
"What about Obama?"
That's what my friend said to me in Spring 2004 when he asked who I was supporting in that year's senatorial primary race. Ironically, at that time my brother-in-law worked for a woman who had thrown her hat in the ring as a contender for the Democratic candidacy for senator. She seemed OK to me, not extraordinary, but fine. So I mentioned her name in answer to my friend's question. His reply: "What about Obama?"
Indeed. When he gave his outstanding key note address at that summer's Democratic National Convention, I thought "That's the person who should be president of the USA. I was deeply moved and inspired, and at that moment I felt like he was my president.
Of course, that was long before he announced his own presidential candidacy, but not that long before others were urging it. Here was someone with a bright and progressive world view, with a history of serving others, especially the neediest among us, and a legacy of bringing disparate viewpoints together to reach common ground. Extremely intelligent, self-aware and self-examining, well-educated, charismatic, a natural leader.
Tonight he will address 75,000 people (and millions more watching on TV) in an open air stadium, moved from the official indoor convention venue as a symbolic gesture, and it promises to be the speech of his life so far. His senior campaign strategist said that "Obama will lay out a case for sweeping political change and illustrate the choice voters face between his candidacy and that of Republican John McCain ... His goal is to talk to the American people about the challenges we face and what we need to do to solve them, and the stakes of continuing to do what we are doing."
Much has been made of his oratory, which is magnificent. But some complain that "it's only words." Well, there are words, and then there are words. Words mean something, words are important, words are the vehicle with which we carry intent, character, emotion, ideas, and vision. Without a doubt, deeds must follow words, and if Obama becomes president it remains to be seen what his deeds will be. But based on his past deeds, based on the character and content of his words, it's a good bet that good deeds will follow his good words.
Finally, the official nomination of an African-American as the candidate of a major political party for the presidency of the United States of America is nothing short of a sea change, a monumental leap forward in human consciousness. In my relatively short life time, African-Americans did not even have the legal right to vote, and now an African-American may become president. If that's not enough to instill hope in anyone, then nothing will.
I've never been prouder to be an American than at this moment.
Fred
Posted on: 28 November 2008 by gary1 (US)
Absolutely Barrie.
I doubt anyone will go after the fat cats who caused the debacle, as it seems that nothing "illegal" was done, just pure unadulterated stupidity. Remember though the banking committee and the Fed knew what was going on and didn't stop it. The excuse was "we'd thought they'd be more responsible to their shareholders." Problem is that the high priced executives own relatively little/none of the company if you look at their shares relative to market capitalization. Much of their "executive compensation" is guaranteed money from insurance policies, deferred compensation, golden parachutes, etc... and not tied to performance so what do they give a s--- about the shareholders. But, the problem is that the Fed and Congress stood by and let them do it and approved everything.
In response to DMC, my comments are not at odds with my reading of the overall situation. You have to remember that certain things such as judges decisions in appellate courts, etc... are ideologically based and cannot be "thrown out" and are foistered on the public. If you read Fred Simon's comments above I agree it is a complex interplay of factors, however, at some point people have to wake up and realize what they are doing.
Posted on: 28 November 2008 by u5227470736789454
Hi Gary,
A great example of what you allude to is happening with the Big 3 automakers - make a massive loss, still walk away with 22 Million annual salary, when the CEO's were asked by the Senate Comittee if they would potentially consider working for 1 dollar salary for next year as part of securing their 25 Billion Dollar bail-out ( sorry credit-line

) one of them who will remain nameless ( 22 Million last year ) replied
" no, I am OK where I am "
which I thought sort of illustrated the situation perfectly
Posted on: 28 November 2008 by KenM
No Mick,
The credit crisis was not brought about solely by US banks. How about Barclays, RBS, Halifax-HBOS and most of all, Northern Rock? All these were heavily involved in the risky lending of "liberalised" financial services.
This liberalisation, and the conversion of banks and building societies into "financial services providers" was heavily promoted in Europe by Gordon Brown, cheered on by the Conservatives. The only warnings in Parliament were given by Vince Cable for the Liberals.
It is significant that the only healthy financial institutions in the UK are those building societies which remained mutual (so no Directors bonuses) and subsidiaries of the Spanish bank, Santander. Fortunately, the Spanish government dragged its heels over removing controls over banks, despite much criticism from the UK.
Our country was as much to blame as anyone for the present mess.
Regards,
Ken
Posted on: 28 November 2008 by gary1 (US)
quote:
Originally posted by baz100:
Hi Gary,
A great example of what you allude to is happening with the Big 3 automakers - make a massive loss, still walk away with 22 Million annual salary, when the CEO's were asked by the Senate Comittee if they would potentially consider working for 1 dollar salary for next year as part of securing their 25 Billion Dollar bail-out ( sorry credit-line

) one of them who will remain nameless ( 22 Million last year ) replied
" no, I am OK where I am "
which I thought sort of illustrated the situation perfectly
And they flew in individually from the same locations (Detroit) on separate private jets.
The big 3 need to declare bankruptcy to get rid of their union contracts and restructure, modernize. The only reason they want a bailout and to keep going is to protect that Union contract, pensions, etc... That is only going to postpone the inevitable. It is only in the concept of bankruptcy first, restructuring could I conceive of giving them anything as they really do have a great effect on many other companies, industries.What about tax credits, not deductions, but credits for those who buy american to increase sales. Don't know if you are aware, but it takes 12 workers at a Honda facility to make a car and 40 at a GM plant.
Posted on: 28 November 2008 by u5227470736789454
One of the reasons UK finance institutions etc got into trouble because they invested large large amounts of money in the US sub-prime (the hints in the title, guys) market in the US, and blow me down didn't it just live up to it's name.
According to the BBC World service Italy wasn't hit too badly as they still have a large number of very local banks who tend not to invest abroad.
Maybe there is something in this anti-globalisation stuff after all.
Posted on: 28 November 2008 by Mick P
Chaps
The facts of sub prime are undisputed.
1. Hundreds of clever salesman sells thousands of sub prime mortgages to morons who should not be allowed to walk the streets without being accompanied by an adult. The mortgages were more than what the house was worth, had escalating interest rates built in and had prohibitive penalaties in the event of non payment. The most common excuse was .... hey man, I didnt read the contract. Like I said bloody morons.
2. Salesman is happy he has made a fortune with commission. He is not stupid, he is very clever.
3. American bank is happy, they have sold duff mortgages to brain dead losers. They are also clever.
4. Then comes the naughty bit, American banks package the loans, mixing up with safer loans and bonds and sell them for a knock down price on the global markets.
5. Trusting (very foolish I agree) European and other American banks buy the loan for investing into pension funds etc. They should have checked, but they didnt because they trusted the American banks based on previous good history.
6. Some clever American bankers are now made for life. The foolish ones are shitting themselves with worry.
7. European banks suddendly have thousands of defaults from the american morons who cant keep up payments. The properties are worth less than the loan. European banks are now in the shit.
8. No banks have money to lend, so system grinds to a halt and triggers a recession.
The recession was going to happen anyway but this has made it much worse.
So Mr America, please do not give mortgages to morons who cannot even work out that a loan should be less than the value of the house and please teach them to read so as they can see what penalty clauses there are.
Those morons are the cause of this, pure and simple and we should be suing the ass off them but that is hardly practical.
Have a happy 2009 assuming you still have a job.
Regards
Mick
Posted on: 28 November 2008 by u5227470736789454
quote:
they really do have a great effect on many other companies, industries
They do, but it is worth considering that if the big 3 dissappeared tomorrow, the market for cars themselves would not. The demand would still be there and would still need to be satisfied, but hopefully with more efficient product offers. This means the surviving business' would need to build more thereby needing to increase their workforces/factories and would purchase extra parts for car production from the ( existing?) outside suppliers (there is a lot of component sharing between car manufacturers )so I am not sure how bad the overall effect would actually be, given the alternative of the time/cost/ energy of retaining the Big 3 as they exist today.
I think a lot of this is scaremongering by the Big 3 to get the Government under pressure from the populist press to give them the money.
But we will see next week when the circus comes to town
Barrie
Posted on: 28 November 2008 by gary1 (US)
Agree Barrie, but how quickly would the shift occur and how many jobs would be lost in the interim? I don't know. Certainly declaring bankruptcy would allow the big 3 to shake off alot of expense just for starters. Unfortunately, they also make cars that most people don't want to buy and they haven't chnaged in the 30 years when Nissan and others came ashore.
Posted on: 28 November 2008 by Exiled Highlander
Mick
Thank God you aren't in charge of the The UK Treasury...your simplistic view of the world financial situation is scary....
Is all this ire cause by the fact that US immigration treated you in way that was disrespectful when you tried to enter the US? Is your grudge that deep?
Jim
Posted on: 28 November 2008 by BigH47
Glad there are no morons on this side of the pond.
Posted on: 28 November 2008 by Wolf2
I was watching an interesting show on the crisis. Turns out someone had the bright idea of gathering LOTS of BBB rated loans (low interest ARMs sold to poor people who can't afford a home, but enticed, and getting in over their head), putting them thru some math formula and magically labeling them as top A rated and selling them off. No one could figure this out. Other top brass thought it was great, made a lot of money and did more of it, selling them to other US banks and many European banks, thought they were "safe" investments and were taken in the scam.
2 men that were analysts in the same company were interviewed and a floor apart. First one calls to the math guy and says "give me your best rating". Math guy can't figure it out and says "It doesn't add up", First one says "well do your best guess". Math guy says "I don't guess" and saves the smoking gun Email and a year later under pressure to pass it all on, says "NO", and quits job around 2006. Lesser employee passes it on. First man quits a year later at high market and is now writing a book about the whole "SYSTEM" of corruption (trying to look innocent).
It's just disgusting. But analyst has the hot Email still and is public about it. Good for him. I don't remember if they worked for Goldman Sacks or Bear Stearns, sorry my memory is bad and I'm not a political or economic wizard, but the show was on PBS.
I heard and read so many stories of people buying improving and flipping and going up, spending it all and now the house of cards has ruined everyone. Stories of buying at $300,000, spending $50,000 and selling at $650,000 in 2-3 years time or less.
When I moved to LA in 96 there were low end houses for $100 - $150,000, 2 Br 1 bath shacks. 5 years later they were $500K, DAYAM half a million for an old 2 Br?
Thankfully I kept my rent control apartment and pay little. But my stock portfolio which soared has "adjusted" itself just like the housing market.
Posted on: 28 November 2008 by John M
quote:
Originally posted by BigH47:
Glad there are no morons on this side of the pond.
