Robert Oak's blog

Obama vs. McCain vs. America on the Economy

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Right now the entire country seems to believe that Democrats will save the day on the economy and we're looking at a super majority for Democrats to gain complete control of the United States Government in this year's election results.

But, is this really true? Between the corporate lobbyists of the left and the corporate lobbyists on the right, will either party truly represent the national interest or working America's interests?

I have a premise that the only way to get the United States moving economically is to start producing, saving, exporting and raising up the middle class. I am not alone in this conclusion:

The Bipolar Economy

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The past two weeks have shown shocking stock market moves of 500 points or more, both directions.

dow jones 5 day

Panic selling, panic buying, who knows just how much was lost in the volatility, changing of the rules daily and turmoil.

So, while all of the focus is about propping up a semi-insolvent financial system, what about the actual people?

Murder, Suicides and desperate acts are on the rise. (please people, it's only money).

After falling 3 1/2 years behind in payments, the Taunton, Mass., housewife had been intercepting letters from the mortgage company and shredding them before her husband saw them. She tried to refinance but was declined.

The Barrage and Not Enough Time to Know What it Means

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The Barrage of news is pouring in and I am trying to get my business taxes done before the deadline.

So forgive me if this post is a little weak.

It's being reported now we will have the worse recession in 25 years, if we are lucky.

''It's certainly going to be the worst since the 1980s,'' says Bradford DeLong, an economics professor at the University of California at Berkeley who worked at the U.S. Treasury Department from 1993 to 1995. ``The hope is that it won't become the worst unemployment business cycle since the Great Depression

There goes the Royal Bank of Scotland

Friday Movie Night - What To Do Edition

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It's Friday Night! Party Time!   Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!

This week we're focusing in on various economists' interviews on what is going on and what really needs to happen. Included are Bill Moyer's George Soros interview, Roubini, Jim Rogers and Bill Issac.

What is Behind the Curtain - Lehman CDS Auction Gives a Hint

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Wizard of Oz Behind the Curtain

 

The Final Price for Lehman Brothers CDS auction is 8.625. That's 8.625% on the dollar and is much less than what was expected, 9.75.

 

That means CDS Lehman sellers have to pony up 91.375 cents on the dollar. That's the Biggest Payout Ever and will assuredly result in further write downs and losses for these sellers.

Plan 9 From Outer Space is Plan B

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plan 9 from outer space
Now that the bail out and throwing money to Wall Street for bad debt isn't doing much, today we had a coordinated rate cut from central banks across the globe.

More money is proposed so Americans can go shopping instead of producing and AIG gets another $38 Billion.

Considering the magnitude of imminent Economic Armageddon, in last night's debate what do we get?  Spend, Spin, Platitudes and our favorite distraction, tax cuts. I often think we would be better with static and noise emanating from the idiot box than this absurd, vague drivel or deflection through attack to avoid the specifics on what will they do.

Volcker Stands on Twin Peaks - New Report on Market Regulation

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Former Fed Chairman Paul Volcker and Jacob A. Frenkel (Group of 30) released a new report,

The Structure of Financial Supervison: Approaches and Challenges in a Global Marketplace

The attached paper recommends a restructuring on financial market supervision called Twin Peaks.

twin peaks red room dream sequence

Both Presidential campaigns have mentioned major structural and regulatory reforms of the financial systems. Volcker is advising Obama and please note, the other paper authors, many are from surviving financial institutions and yes, yet once again, Goldman Sachs is represented.

Here Comes The Show - Congressional Hearings, Debt and Conjecture

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Multiple Screens! 360 Panavision! Let the shouting begin! The Committee on Oversight and Government Reform will hold hearings the next two days. Committee Chair Representative Waxman:

Lax oversight and reckless investments on Wall Street are causing massive disruption throughout our economy. Our hearings will examine what went wrong and who should be held to account.

Up on the executive chopping block are:

DAY 1: Causes and Effects of the Lehman Brothers Bankruptcy

  • Dr. Luigi Zingales, Professor of Finance, University of Chicago
  • Dr. Robert F. Wescott, President, Keybridge Research LLC
  • Nell Minow, Chairman of the Board and Editor, The Corporate Library
  • Gregory W. Smith, General Counsel, Colorado Public Employees’ Retirement Association

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