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When Are We Going to Pay Off the National Debt?

With all the talk of the nation's deficit, the federal budget, and a potential government shutdown, I would like to throw a question into the debate: When are we going to pay off the national debt?

We have been borrowing more and more money, and the amount that we have borrowed has grown significantly compared to the total goods and services we make in this country.

I recall a few years ago talking to people who were buying and selling homes. I asked them how they could afford such big, expensive houses. I thought maybe they had rich uncles. But they were just taking out interest-only mortgages and the banks were lending them 95% of the value of the houses or more.

Continue reading When Are We Going to Pay Off the National Debt?

Chasing Value: Is Congress Indirectly Helping International Paper?

International Paper logoForgive me but I am still fuming about what is going on in Washington with our money. Money that is disappearing faster and faster. No matter how much our representatives cut taxes and extend benefits, it is meaningless. What is the good of having twice as much money when it is worth only half.

Welcome to Washington D.C. -- home of the Great Pretenders.

We just think that our Capitol sits atop solid ground. I think if you swept away the top soil you would find a giant cardboard box because our leaders are certainly playing the biggest game of three-card Monte of all time.

Continue reading Chasing Value: Is Congress Indirectly Helping International Paper?

Serious Money: Washington Compromise Stinks, but Here Are Some Stocks to Look At

Leave it to our representatives in Washington to make a compromise that ignores most of their previously stated beliefs -- of only a few days ago. This just reinforces again the old joke "How do you know when a politician is lying?..."

Monday the Obama administration and congressional Republicans came to an agreement to extend both unemployment benefits by 13 months, and the Bush-era tax cuts for all by two years. What happened to the Republican and Democratic noise about fiscal responsibility and reducing the debt?

A few days ago Republicans were not going to vote for an extension of the unemployment funding if there was not an associated revenue offset to pay for it. That's gone, so the deficit is going up. The Democrats claimed they would not back an extension of the tax cuts for people that earned over $200,000 for individuals and $250,000 for joint returns claiming this would add $900 billion toward debt reduction. That's gone so the deficit is going up.

Continue reading Serious Money: Washington Compromise Stinks, but Here Are Some Stocks to Look At

GOP's Gain Could Be First Solar's Loss, Warns JPMorgan

First Solar (FSLR)Now that Republicans have taken control of the House of Representatives, analysts at JPMorgan are taking a look at the election's potential impact on the stock market. In a research note this morning, JPMorgan cited alternative energy issue First Solar (FSLR) as one equity that could be damaged by the GOP's Congressional gains.

"Most of the downside is accounted for by the possibility of fiscally conservative measures, such as budget cuts and the reduction/elimination of certain subsidies," wrote JPMorgan in a note to clients.

Continue reading GOP's Gain Could Be First Solar's Loss, Warns JPMorgan

Senate May Vote This Week on $30 Billion Community Bank Capital Bill

The only question is -- how soon can the Congress get this deal done?

The potential 'deal' being $30 billion in new capital for community banks, who would then use it as a base to increase lending to small-sized/medium-sized businesses by up to $300 billion -- credit that's urgently needed and may prove to be a pivotal factor concerning the U.S. economic expansion's sustainability.

"If we can help the big banks, then we should certainly be able to help small-business lending," President Barack Obama said June 30, Bloomberg News reported. The Senate may consider the bill as early as this week; the program, called the Small Business Lending Fund, passed the U.S. House last month

Continue reading Senate May Vote This Week on $30 Billion Community Bank Capital Bill

Big Oil's $1 Billion Rapid Response Venture: Too Little, Too Late

The new joint-venture formed by Exxon-Mobil (XOM), Chevron (CVX), ConocoPhilips (COP) and Royal Dutch Shell (RDS.A) as a rapid response system to the Gulf of Mexico oil spill is best characterized as too little, too late.

The companies have initially committed a measly $1 billion to the force. A fund with a starting point of $20 billion-$30 billion would have been more appropriate and practical. The enormity and complexity of the BP's (BP) Deepwater Horizon oil spill demonstrates how quickly a contain-and-cap operation can shoot over $1 billion. Oil fell 56 cents to $78.74 per barrel in Friday morning trading.

Continue reading Big Oil's $1 Billion Rapid Response Venture: Too Little, Too Late

Exxon Mobil and Chevron Executives Say BP Spill Unlikely to Repeat

oil execs before CongressIn the wake of the environmental disaster stemming from the BP (BP) oil spill in the Gulf of Mexico, Congress summoned oil officials to testify over the safety of their offshore drilling.

The oil spill that started back on April 20 when one of BP's offshore drilling platforms exploded continues to leak into the ocean, and could take up to another two months to stop. Following the accident, President Obama imposed a six-month moratorium on deep-water drilling and Congress is now trying to determine the likelihood of another disaster taking place.

Continue reading Exxon Mobil and Chevron Executives Say BP Spill Unlikely to Repeat

Congress, SEC and Goldman Sachs Failures

Goldman Sachs GS logoThe more I think about the issue of Goldman Sachs (GS) being charged by the SEC for questionable business practices, and hauled in front of Congress for a big show, the more I think it is Congress that is at fault for the whole financial mess and should be answering questions.

It is not that Wall Street had no hand in the entire debacle, but it started with Congress and they magnified the damage by failing to correct their critical mistakes. I will get back to this later, but first I want to discuss the recent hearings and the fact that Goldman Sachs management was actually too easy on Congress.

Continue reading Congress, SEC and Goldman Sachs Failures

Comfort Zone Investing: Is Goldman Sachs the Drexel Burnham of Today?

Goldman Sachs the Drexel Burnham of Today?Goldman Sachs (GS) made a huge mistake: it earned too much money when too many others lost large amounts. While the economic circumstances were somewhat different, this is very reminiscent of when Drexel Burnham Lambert made the error of profiting from deals no one else could have done, and then had the audacity to pay the genius behind the deals, Mike Milken, a great deal of money. Those howls of moral righteousness that brought down Drexel and Milken are echoing in the halls of Goldman Sachs.

Continue reading Comfort Zone Investing: Is Goldman Sachs the Drexel Burnham of Today?

Is It Time for Congress to Work Monday-thru-Friday?

True, placing the words Congress and productivity next to one another can seem like a contradiction in terms.

Well, scholar Norman Ornstein of the American Enterprise Institute think tank, and as good as it gets regarding the workings of Congress and the public policy process, has an idea that just may make Congress more productive: a five-day work week.

Continue reading Is It Time for Congress to Work Monday-thru-Friday?

Should the U.S. Congress Cut Its Pay?

Put this one under the category of 'I'll believe it when I see it.' U.S. Rep. Ann Kirkpatrick, D-Arizona, has introduced a bill that would not only halt automatic pay increases lawmakers receive, but would also cut their pay by 5% next year, or by $8,700.

The bill would apply to all Representatives and Senators and take effect on January 1, 2011. If the measure is passed, it would be the first time Congressional lawmakers' salaries will have been cut since 1933, during the depths of the Great Depression.

Continue reading Should the U.S. Congress Cut Its Pay?

Health Care Summit Reveals Democratic U.S., Republican U.S.

The low-down regarding Thursday's health care summit? No change to the status quo.

President Barack Obama did a good job moderating the event, and Republican and Democratic leaders engaged in, for the most part, civil discussions, with only a few exchanges degenerating into talking-points rhetoric, but the net result was that little common ground was achieved.

Continue reading Health Care Summit Reveals Democratic U.S., Republican U.S.

Toyota Accused of Withholding Test Data

toyota recall crisisToyota Motor Company (TM) continues to find itself in arguably the biggest crisis in the auto maker's history, and today more accusations were made against the company. The company is back in the news today with accusations that Toyota tried to hide data in lawsuits filed by Toyota drivers injured in crashes.

The accusation came from New York Democrat, Edolphus Towns. Towns stated that the company deliberately shielded some of its design and testing data, and in many instances settled lawsuits in order to avoid turning over the information.

Continue reading Toyota Accused of Withholding Test Data

It Won't Be Easy to Get the Money Out of U.S. Politics

An unease in the nation appears to growing -- particularly among typical Americans -- regarding the influence of money in politics, and among U.S. Representatives and Senators, in particular.

This phenomenon has occurred cyclically in the U.S., and it is unclear whether this firestorm will differ from the rest. Historically, the displeasure runs hot for about a year or so, then the fire dies out.

Further, even less certain is whether these Americans will seek to reconcile the contradiction between the American economic system and the political system (democracy), or even whether most of these Americans will recognize it.

Continue reading It Won't Be Easy to Get the Money Out of U.S. Politics

Are You Ready for More U.S. Debt?

Last month Congress increased the debt limit to $12.4 million and with the U.S. debt clock showing the debt at 12.3 million Congress is going to need to act soon and now the Senate wants to raise the limit $14.3 trillion.

Lets break down the numbers:
14.3 trillion proposed debt limit ($14,300,000,000,000)
308.5 million estimated U.S. population (308,500,000)
$46,353 proposed limit per person
$185,413 per family of four

Continue reading Are You Ready for More U.S. Debt?

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Last updated: February 11, 2012: 07:09 AM

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