The question is posed in a very specific way. Unions are not a free market component, but in America they are a neccesary evil. They protect against corrupt corporate tycoons. They make sure that bonuses are not AS extreme as those of non-union shops. But, are Unions being used by the Obama administration as leverage to get nationalized healthcare. That's a conspiracy theory!
If you say that the auto industry is a cornerstone of the fabric of America then it's a small leap to say that if the auto industry is to survive then the cost of the labor must go down. If the a large of labor cost is health care then it stands to reason that the largest advocates for national health care will be the unions. The large desire to keep the car industry afloat, without the use of bankruptcy courts, and with consessions from unions will require the removal of health care earmarks on the auto industries balance sheets. If national health care is provided at a pivital time when all the "moons are aligned" then there may be chance to see the national health care at the the forefront of the administrations "bailout" campaign. A democratic president, house, congress, plus public momentum, a failing economy, and an industry in distress from foreign labor costs, what more can you ask for? It reminds me of the Patriot Act and 9/11. We could very well see national health care in our life time.
The UAW may be good for the free market. It may cause corporations and the public to increase support for national health care, thus removing large liabilities from corporate ledgers and into the hands of those with a more user check book(the U.S. government). This may lead to a consolidation of government sponsored programs, an increase in oversight and fraud provention, and preventative measures for individuals. What if we tax "Octomom" 14x the standard rate and remove trillions from corporate balance sheets. Unions around the country would have a larger coffer to support retirees. Corporations could grow faster. Labor costs would be reduced. Both sides of the aisle would get to make money.
Monday, March 30, 2009
Thursday, March 19, 2009
Retention Bonus vs. Performance Bonus
Retention Bonuses vs. Performance Bonuses
I think that the current bonus tax is a pile of B.S. I don't think that the people who are asked to stay on while a ship is going down should be punished for their efforts. Did they make people buy homes that were out of their price range, get into mortgages that they could not understand, speculate on multiple homes, No! I don't blame the engineers at Smith & Wesson for the drive-by's in my city. Do we sue McDonald's for making us fat? Oh, silly me, I guess we have been a country that likes to blame everyone else.
Let people keep their hard earned RETENTION BONUSES. Strike down every person who takes a dime of performance money, but don't make martyrs out of these people. I don't want AIG executives to have any sympathy, just let them finish making their beds, so we may put this problem to rest.
If we want to fix the underlying assets that are dragging down the financial industry, we have to refinance, re evaluate our income levels, and be realistic. The real estate market will move up as inventory is reduced. Remember Econ 101...supply and demand....if this seems too simple that because it is! Government is just making it hard.
I think that the current bonus tax is a pile of B.S. I don't think that the people who are asked to stay on while a ship is going down should be punished for their efforts. Did they make people buy homes that were out of their price range, get into mortgages that they could not understand, speculate on multiple homes, No! I don't blame the engineers at Smith & Wesson for the drive-by's in my city. Do we sue McDonald's for making us fat? Oh, silly me, I guess we have been a country that likes to blame everyone else.
Let people keep their hard earned RETENTION BONUSES. Strike down every person who takes a dime of performance money, but don't make martyrs out of these people. I don't want AIG executives to have any sympathy, just let them finish making their beds, so we may put this problem to rest.
If we want to fix the underlying assets that are dragging down the financial industry, we have to refinance, re evaluate our income levels, and be realistic. The real estate market will move up as inventory is reduced. Remember Econ 101...supply and demand....if this seems too simple that because it is! Government is just making it hard.
How are mortgage rates determined?
Most people don't know how mortgage rates are determined.
Take a look at this article.
http://www.cnbc.com/id/29780977/for/cnbc/
Remember; war, unemployment, and a shrinking economic environment cause the fed to lower rates, but for every action there is an equal and opposite reaction. Rising interest rates will come and they will be a polar opposite to the environment we have now. Can you live with an 8% mortgage, no, then make the correct move today.
Take a look at this article.
http://www.cnbc.com/id/29780977/for/cnbc/
Remember; war, unemployment, and a shrinking economic environment cause the fed to lower rates, but for every action there is an equal and opposite reaction. Rising interest rates will come and they will be a polar opposite to the environment we have now. Can you live with an 8% mortgage, no, then make the correct move today.
When is the best time to buy into your nest egg?
Most news reports are so negative these days that it’s hard to see any silver lining. The real question most people have not been asking themselves is how often does a great deal come around? When I was a kid I used to trade baseball cards with my friends. I could always count on trading a "Conseco" card for a "hall of famer" any day of the week. It was the hype! The holy grail of all trades came when I traded all my "Kirk Gibson's" for a second year "Nolan Ryan". This was too good to be true! I have never seen a better trade; sure I have heard of silly "Arod" trades for "Bonds" but never actually seen it. Not a good year, but short of getting a rookie card, a mint “Ryan” card, that was the best opportunity for me in my short baseball card trading years. I have been looking for a better trade ever since!
Right now we are in the midst of the best trade I have seen in a long time. Mortgage rates! I have not seen rates and home prices this good "EVER....NEVER". I know how banks make money; I know that the economy is bad; I know that the news says the financial sector is in Armageddon, but rates at 4.7% that is just awesome! When do you start investing in your largest nest egg (your home), when? People were buying houses when they were double the prices and the rates were 40% higher just a handful of years ago, remember that? I guess they have to start giving them away before people get out of their own funk. If I just had an extra $100K lying around, I could make $$$$
http://www.zillow.com/Mortgage_Rates/
I'll check under my seats, but if anyone else has an idea, let me know!
Right now we are in the midst of the best trade I have seen in a long time. Mortgage rates! I have not seen rates and home prices this good "EVER....NEVER". I know how banks make money; I know that the economy is bad; I know that the news says the financial sector is in Armageddon, but rates at 4.7% that is just awesome! When do you start investing in your largest nest egg (your home), when? People were buying houses when they were double the prices and the rates were 40% higher just a handful of years ago, remember that? I guess they have to start giving them away before people get out of their own funk. If I just had an extra $100K lying around, I could make $$$$
http://www.zillow.com/Mortgage_Rates/
I'll check under my seats, but if anyone else has an idea, let me know!
National Health care: Yeah or Nay?
I'm a capitalist (I know it's obvious.), a fiscal conservative and a bit of a government hater, but this concept of "Nationalized health care" is growing on me. I have had family members suffer and die from various forms of cancer and others that made it through the ordeal of chemotherapy. I have seen homes sold to cover medical bills, people give up their homes to the state to qualify for Medicare or Medicaid (i don't know the difference), and others just give up on life just to speed up the dying process in order to "lessen" the burden on their families. Is this patriotism? Is this what we are asking or our fellow Americans? When your sick just lay down and die so we don't have to be burdened with your uselessness! When did sick people become enemy?
Isn't that nationalized health care already? People giving up on life, the pursuit of happiness, falling out of the productive machine which is America, and letting the government take care of the bill. People who don't have the means to support the recovery process of a serious illness become the responsibility of the government and in turn our responsibility. Our tax dollars are going to health care anyway. They're going to the medicare/medical system, the disability checks that could have been avoided, government aid given to family members who stay home and help there sick relatives, and all the other results of broken spirit.
Our country needs more working, able bodied, tax payers. How else are we going to pay for the deficit? We don't have enough IPODS/levi's/starbucks to sell to the world. Wouldn't national health care reduce gaps in the system that allow those who don't deserve the help and those that need it most? Kaiser and other HMO's are pitching preventative services to "get your money's worth", and if it works for profitable companies why can't it work for the country. Instead of thinking of profits as dollars earned we can change the paradigm to reflect the trillions of dollars that we can save. The profit of making otherwise damaged workers with short life spans into repaired, inspired, productive workers who can use their earnings to support other useful purposes i.e. retirement, social security, education.
I'm just saying!
Isn't that nationalized health care already? People giving up on life, the pursuit of happiness, falling out of the productive machine which is America, and letting the government take care of the bill. People who don't have the means to support the recovery process of a serious illness become the responsibility of the government and in turn our responsibility. Our tax dollars are going to health care anyway. They're going to the medicare/medical system, the disability checks that could have been avoided, government aid given to family members who stay home and help there sick relatives, and all the other results of broken spirit.
Our country needs more working, able bodied, tax payers. How else are we going to pay for the deficit? We don't have enough IPODS/levi's/starbucks to sell to the world. Wouldn't national health care reduce gaps in the system that allow those who don't deserve the help and those that need it most? Kaiser and other HMO's are pitching preventative services to "get your money's worth", and if it works for profitable companies why can't it work for the country. Instead of thinking of profits as dollars earned we can change the paradigm to reflect the trillions of dollars that we can save. The profit of making otherwise damaged workers with short life spans into repaired, inspired, productive workers who can use their earnings to support other useful purposes i.e. retirement, social security, education.
I'm just saying!
Monday, March 9, 2009
Is old as good as gold?
Is it better to invest in old companies? With the markets in turmoil is it best to invest in old established companies with track records of 10-20 years? Some would argue that companies of this age have been going out of business in the past 12 months, I on the other hand, would counter that aside from the banking industry, this area lends itself to the best opportunities in the market. Companies like Coca-Cola, General Electric, Hartford, Exxon, Lockheed-Martin, Intel, etc. are great companies to harbor your investment funds for the long term. Old is Gold.
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