G-19 The US Stands Alone

By Bill Glynn | Published: June 28, 2010

Greece debt was over 120% of GDP when it hit a brick wall.  The US debt is over 90% of GDP.  While other nations around the world have mountains of debt too the US economy is seen as able to sustain its debt levels and continue to be able to finance more deficit spending.  Well it was clear from the G-19 members that the US stands alone in this assumption.

The administration pushed hard for the rest of the world to continue to borrow and spend to assure the global economic recovery is sustained.  But tongue and cheek the US has signaled through Timothy Geithner that America won’t be able to take on the burden of carrying the rest of the world on our back.  So the world is undergoing tax hikes and spending reduction while we trumpet more stimulus that hasn’t worked already.

The recovery is fragile at best and i do expect a dip coming.  The “double dip” we are already teetering on looms and the plan is to borrow our way out of it and flood the market with more of our currency.  This is a recipe for disaster.  The US Debt Commission is expected to come out with plans in December – and of course after the elections.  Politics is driving this whole mess.  If you don’t think the banking reform they jammed through is going to hurt us very badly then you don’t know what is in the 2000 pages either.

The prediction is that the US taxes will get hiked for sure.  But the problem is that will further hobble private business that is essential to a recovery.  Any tax hikes also take money out of corporate pockets and mainstream too.  70% of our economy is consumption so we will all have less money and the tax cost on the financial institutions and business will certainly get passed along to us.  The fact is we cannot tax our way out of our debt.  Taxing just isn’t enough to pay it back.

HealthCaid, Financial reform and a host of big government programs are crippling us.  This all driven by politics and that is just outright a failure for our leaders to do what is right not right for them to get reelected.  But that is what is going on and if you see any light in the policies or any pull back on borrowing and spending then please do let me know.  Everyone is playing to win the next game come November but i assure you we don’t have our eyes on winning the Super Bowl or World Series.

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We are Stupid, Ignorant Children – At Least That is What The Government Must Think

By Bill Glynn | Published: June 21, 2010

The Political Machines will spend whatever it takes to make us look in the other direction and distract us from the real issues and the ongoing failure of politicians leading up to November as they have for decades.

Obama is on the road calling Republicans political engineers. Frankly, with speeches like this isn’t it obvious the shoe is on the other foot or in someone’s mouth or worse. Democrat and Republican PR machines have geared up for a showdown.  We will see come November if what they think about us is true. We are ignorant and stupid children.  We must be to buy into all this crap!

I am peeved at best to see the political mudslinging already on the rise – Just take a look at South Carolina.  The fact is there are so many problems with America that unless somehow the voters are distracted – and every tool will be used to make sure of it – we would fire them all.

I wonder if Americans are going to tolerate the failures our government has dealt us and the policies they have shoved down our throats like HealthCaid. I know we are all glued to the radio and TV about the oil leak and that making 9 trips to the Gulf all of a sudden is supposed to pull some more wool over our eyes.  It is a total farce that the government has been on top of this since day one.  Anything and everything will be pandered to cover up for jobs, financial collapse, unprecedented borrowing and a BIG one Freddie and Fannie that own more than 160,000 homes already and that could double quickly if housing does not come back very fast.  We the people by the way actually own those houses and we are in for more turmoil believe me.

For example – the gaff by a Republican Senator about the BP shakedown – and believe me it was – and the $20 billion slush fund will be used for political capital – in fact it is already being position as a white horse.  ”You see what I got for the American People”  that will be headlines soon.  All the chaos and much more to come and here we are pandered to – watching mudslinging – getting us to focus on a ridiculous gaff – we must be stupid to allow ourselves to be distracted from the chaos that is not over yet by a long shot.

November is coming and the shovel is full of what we have been getting shoved down our throats for years.  You have a choice – don’t blow it!

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Housing, Oil, Freddie, Fanny & Spain – Add it Up!

By Bill Glynn | Published: June 16, 2010

Does it seem it is getting better?  Here we go again!  Today Freddie Mac and Fannie Mae announced they are delisitng their stock on the NYSE.  Spain is going to be downgraded again and already needs a bailout.  Housing cratered, both new constructions and sales, and everyone should have seen that coming after the tax credit expired.  The economic disaster from the oil spill is going to have a massive impact on the economy, jobs and many livelihoods.  It is sure not to be just the Gulf States and it will be felt at the pumps as the moratorium on drilling further impact the Gulf States and the country.

Each case will have a unique impact on the economy that shows sing of a heart beat after the government paddles restarted it.  But heart disease often requires cleaning out arteries and open heart surgery.  The governments around the world served up blood thinners for their economic problems but the heart is not only damaged but barely beating still.  We are a long way from our economic heart attack.

I am not sure if people realize the implications of Freddie and Fanny alone.  Not only do they have their hands out to the government for money they don’t have the public market liquidity to access more capital.  That means both troubled and failed institutions are in huge trouble.  Mark my words this is a huge problem for the economy.  The government backed up these institutions with a $5 trillion commitment to make sure the market remained confident in the institutions.  Trading below a dollar for this long says a lot about investor’s confidence in them.  The government simply cannot let them fail so we will continue to borrow money or use TARP money to throw good money after bad.

What about Europe.  The European Union is the largest economy in the world – measured by GDP – followed by the US.  Production of goods around the word continues to show life but blow out sales of inventory boost retailers and manufacturers stuff the pipeline with products – hence why production is up.  I still don’t know who is going to buy all this stuff.  But as Spain needs a bailout from the European Union, and expect more countries to do the same, many problems are going to continue.  Austerity measures are certain to curtail spending across many nations and whoops that is going to have a major impact on consumption of products, goods and services.  Like consumers world wide governments too have been artificially inflating the world economy through massive debt.  As pull back has happened and will continue to happen we all should expect big issues to come.  This is not just the government scaring the markets, and they should be scared, it is the trickle down to people that are critical to long term economic recovery.

Now we all see the oil disaster and it is a hot topic for certain.  Everyone is focused on the government failure and ongoing oil being spilled into the gulf everyday.  BP for certain will pony up the money to settle law suits that will help stave off massive unemployment.  But the owners will get the majority of that while thousands of their employees will join the ranks of the unemployed.  Carastrohic to the economy.  Not only is the government pandering Cap & Trade type policies it is also forcing the oil companies to put up billions into yet another government slush fund.  What do you think is going happen at the pumps.  Yes – gas prices will go up!

Aggregating the issues that just keep on coming should drown out the pandering and publicity around positive signs for the economy but that would hurt consumer confidence would’t it.  Elections are coming – and the airwaves are going to filled with anything that can be sold and pandered as positive news.  All the talking points will take individual metrics and beat the drums but if we are not aggregating these issues we will never see through the wool over our eyes.

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The United States of Bankruptcy

By Bill Glynn | Published: June 10, 2010

On The Money

The United States of Bankruptcy

“If America was a company the Board of Directors and management would be fired and probably even in jail!

Bill Glynn, 2008

Well I am back on the grid and anticipating the release of my new book the United States of Bankruptcy on July 4th.  I was pleased to hear Sean Hannity agree with one of my one liners that I have been using since 2008.  I heard him at one of his live events this year say something very similar to the quote above.  With November around the corner and the shaky but touted “recovery” being promoted and stuffed down our throats expect more of the same.  Remember this one!

“If they want your opinion they are happy to spend billions to give it to you.”

Suffice to say the America People, what the panderers call us, are fickle and being led by the nose by nothing more than political consumer branding.  This is what elections have been reduced to and supported by billions of dollars to make sure you and I go to the voting booths and chose the brand they want you to buy.  Well consumer product branding is exactly the same.  Companies spend hundreds of millions on television, radio and print media to program you into buying their product.  If it didn’t work to pull you along by the nose not a penny would be spent on commercials and ads.  Well the same holds true for the political machines, special interests, unions and many other influencers aiming their media guns directly at us to make sure we stay chained to the Platonic TV where the political rock stars can give us our opinions. Obama touring the country selling HealthCaid is just a prime example of what we are allowing to happen.

Now if this is true, and believe me it is absolutely, then those with more money to spend have more influence over elections and laws.  Hence why everyone touts how much money they spent on campaigns and who has deeper war chests.  Then America is really an Oligarchy – rule by the few, the rich and the powerful!  Wasn’t the White House upset that unions in Arkansas spent $10 million to influence the outcome of the election?  Why didn’t they take that money and help the unemployed union workers?  How on earth and why on earth are unions and companies giving all this money and spending billions to influence elections?  The simple answer is that the American People are ignorant, and uneducated on most social, political and fiscal happenings.  They are hugely impressionable and their eyes are kept covered with steel wool so they can’t see the mess and their eyes remain scratched out so they can never really focus on our country being torn apart by these people.

So how does this play into “On the Money?”  The panderers are gearing up to sell everything they can – even the kitchen sink – and spending billions to make sure you will buy any good news they can leverage to make you believe we are out of the woods. Not by a long shot.  But we sit glued to political entertainment while every law of the land being passed and proposed is tainted, influenced, molded and stuffed full of “spending” for things a bankrupt nation can’t afford.  Congress divides itself across party lines and then promotes the hell out of their positions – and even squeezes the other side to act or have “political fallout”.  This is horrifying – I just don’t know what else to call it that would more strongly state the case.  The media is the most powerful weapon of the 21st Century but it has been so corrupted by the political machines and used to promote economic recovery, legislation and bitter divides in our country no wonder why this whole place is in the sewer.  If you don’t believe that every talking point, commercial, article and press conference won’t be covering up for the HealthCaid disaster, bailouts, employment and the economy as a whole then all the incumbents should give you your opinion, try to convince us that Consumer Confidence is looking good, the economy is recovering and the debt loaded world, especially America will be ok if we just let the very people that have bankrupted our nation keep their jobs and assure our downfall.

“Every kingdom divided against itself is brought to desolation”

Jesus of Nazareth

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The United States of Bankruptcy will be released July 4th, 2010

By Bill Glynn | Published: June 9, 2010

The United States of Bankruptcy will be available where all books are sold and for ease you may purchase a copy at www.Billyg.net

The sovereignty of the United States is now in the hands of foreign nations that hold our debt. America is socially, morally, politically and financially bankrupt. The United States of Bankruptcy offers 20 solutions to help save the American way of life. It is a scathing verdict on how the American Oligarchy and business leaders have squandered the finances of our nation and have dismantled the American Dream.

”Those who know money, capital and creative genius as well as Billy Glynn know that our nation has come to a perilous crossroads. In ‘The United States of Bankruptcy,’ he pours out his heart–while giving us a piece of his mind–to lay out a path that will restore this nation’s fiscal and spiritual health. Few people care as much about where we’re headed; fewer still make such lucid points with such utter clarity. A don’t-miss read for a dangerous time.”

— Lou Carlozo, creator of AOL’s “Money College” blog, author of “Tap Your Passion: The Art and Heart of Reporting and Writing”

“I can tell you for a fact that Bill Glynn has been predicting what we see as current economic events.  That tells me he was on target then and must be on target with his proposed solutions to our immediate economic crisis.”

—- Doug Kellett…25 year Talk Radio veteran and known today as “America’s fill-in host” on great stations like  WOAI/San Antonio, KTRH/Houston, WLAC/Nashville and WBT/Charlotte.

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Unemployed and Out of Luck

By Bill Glynn | Published: October 5, 2009

Numbers Don’t Lie

Anyone can stand up and say “you Lie”.  The truth is the numbers speak for themselves.  We have all watched the housing depression and wealth being wiped out.  We all know and knew unemployment would continue to rise and have a dramatic impact on the economy ongoing.  The new 200,000+ unemployed just adds to the pain.  The second wave is coming.

Inflation will take a lead role in agitating the economy.  Gas prices are high and approaching $3 a gallon again.  While food and other products remain relatively stable the basics are even getting out of reach for many.  It’s a vicious cycle.  The more people that tighten their belts or are losing weight quickly the less they can purchase.  The cash for clunkers is over and Chrysler may not even make it a year.   Although politics and international affairs have overshadowed or even distracted the economic news I feel it is time again to put attention back on America’s internal affairs.

Healthcare looms.  Our portfolio of equity and debt continues to be in jeopardy and the FED pulling back from buying IOUs is a pile on.  The storm hasn’t gone away.  Like a rubber band stretched to a limit everyone is trying to keep it from breaking and persist in using media to boost consumer confidence so it won’t.  Confidence is not the issue it is disposable income and there isn’t enough to go around.  So what’s coming.

The market will go up and down like a yo yo and it isn’t going to replace the hundreds of billions wiped out.  Housing won’t be back for years and the credit crunch and lending is constraint at best.  Inflation is coming and the FED is boxed in and can’t make any mistakes.  Gloom and doom but is there a glimmer of hope?

The world reaction to the crisis has left countries and economies hobbled with debt.  Financial reform is held up here in states right now.  But there is a lot of money sitting on the sidelines.  We need that money to inspire the stock market and it will jump in at the right time.  Also, companies selling internationally are performing well but domestic businesses especially small business continues to contract.  As long as something isn’t done directly for the consumer and small business here and the US debt has a repayment plan in place the lights will go out again.

It’s a razor’s edge.  We are cut, bleeding and trying not to fall on our sword.  I fear that mistakes are being made and going to be made and we can’t afford a mistake right now.  Unemployment and its continued rise is a real indicator of a fundamental problem.  Remember I have been harping on underemployment as well and any recovery there will be a political win but the disposable income won’t be around anytime soon.  Hate to say but the wood are long, dark and deep and we are still stumbling around.  I hope this isn’t a Blair Witch project but I would bet we are still lost.

Go to www.billyg.net to learn more about the author
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Government Capitalism

By Bill Glynn | Published: September 14, 2009

K Street to Look Over the Back of Wall Street

Government Capitalism – more like socialism – is still trying to take a larger and larger administrative role in how Wall Street operates. Wall Street just isn’t going to go along with it. Yes Wall Street was largely to blame for the economic implosion. Now the government wants to step in and regulate how the firms operate and how they pay people. That isn’t the government’s job. They can create legislation empowering the SEC and the Treasury/Fed with powers to force regulations and standards upon Wall Street like the Sarbanes-Oxley act of 2002 but they cannot and will never be able to control the price people are willing to pay for talent. This at the core of Capitalism.

All eyes are focused again on the high pay of executives on Wall Street. Obama will speak today about this very subject and to a lesser amount about the actual regulatory specifics that need to change. Oh by the way – this needs to happen globally too – where the US has no power at all. I know regulations and more power being held by the SEC will happen and a lot of that good to reign in pandemic possibilities and rogue practices but talent is a fluid resource that will go where the money is – and hence take the business and clients with them.

Frankly, if Goldman Sachs didn’t pay out huge bonuses – the people would go to the Bank of Hong Kong for example that would and use their talents there. Why? Because they pay better. 99% of all Americans can’t stomach the hundreds of millions of bonus payments and perks on Wall Street but they would also leave their job in a second if their pay would go up by 50% or even 500% I assure you. The same holds true here although the people just make a lot more money.

Now my opinion is that executives in America in the C suite should all get paid a very modest sum of money. If the team makes money the money goes into a pool. They are all aligned. If they make money for shareholders great they get paid more. If they lose money or the stock plummets under their watch then they don’t get a penny. This should be a free market principal. Shareholders like you and me I think would back companies with this type of profile as opposed to others that don’t adhere to pay programs that create up front pay packages that don’t penalize poor performance.

But despite the free market principles that America was built on K Street just can’t keep their hands off the Golden Goose. Right now financial firms more than ever are pumping hundreds of millions in to campaign coffers, lobbyists and hiring senior political people to help them. Why would DC ever give up that attention now. The wouldn’t – and Won’t. This new direct DC relationship with Wall Street should be entirely arms length but legislation is for sale in America. Expect pay packages and incentives to remain under the capitalist watch while government tries to curb it. Our government and those around the world should be working internally without outside influence to put standards and practices legislation in place – with the rest of the world in total agreement – to make sure the systems and the risky practices are monitored tightly and regulated – that is the only role government should be playing – and not politicizing the whole thing.

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Healthcare Continues to Overshadow The Real Problem

By Bill Glynn | Published: September 10, 2009

The media is the most powerful weapon of the 21st century.

I guess diversion is the best political tool. We are all glued to the political entertainment channel like last night hearing a marketing and advertising speech for healthcare. What the heck is wrong with us. America is broke and here we are selling, pandering a better word, a new system that we all know will be a honey pot for wild politicians to raid. In addition, fiscally it is the worst time in history to get this done.

Without borrowing more money from the world we cannot do this. It is clear the only ideas DC can come up with is to borrow more money to throw at broken systems and further put our way of life at risk. Who is watching the hen house. Rome is burning and healthcare is more kerosene. When a trillion dollars is batted around without a blink of the eye we have to shiver in utter fear and disgust. But the debate hasn’t focused on the program details and moreover the astronomical cost.

So on the stump again the political machine just churns out rhetoric and advertising for the program. I think it diverts society away from the core issue – COST. We all know it will cost more than $1 trillion – I bet $1.5 – $1.75 trillion if it passes. I know I have put out 10 ideas that are rapid and don’t cost money. Every idea I have put forth doesn’t cost money to do. But the honey pot is just too mouth watering for politicians to keep the foxes hands out of. Now the screeching republican “you lie” statement will take over the news an everyone will tune in. Again another diversion for us to look the other way while the political machine cuts back room deals and rams unwanted legislation down our throat.

Every diversion keeps American glued to the TV. Given media is the most power weapon of the 21st century it is used to sell us and also divert attention away from key issues like how will America survive fiscally. I see no way we can right now with or without healthcare reform. This is the real issue. It isn’t healthcare, the newest product for sale, it is the whole capitalist system. Survival and longevity are all stated clearly for Americans but our survival also depends on America’s ability to stay afloat. Bolt trillions of dollars on the system followed by over $6 trillion of new borrowing and it will be over for all of soon anyway. Borrow all this money for healthcare but I don’t hear anything about replacing the social security money that has been stolen from us. But diversion works and the issues facing our society are just never brought up. Where have you heard a plan to fiscally overhaul America before we die. NEVER.

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Good Money After Bad

By Bill Glynn | Published: September 9, 2009

$60+ Billion for Automakers Down The Tubes

As I have been mentioning the “investments”, really loans from the world to the US to loan and “invest” in the automotive giants, is very unlikely to ever get paid back. Note that GM alone with $50 billion would require a historic increase in their stock value. This is very unlikely to occur as is the case in many of the loans and stock positions the government has taken in big businesses. Although it appears the banking sector is recovering and not reaching out for a lot of new bailouts it is still a challenge at best for the US to recover those positions either. Then there is TARP and that is made up of toxic loans and portfolios so that is also in jeopardy.

It is not like we all haven’t been talking about this for over year and common sense already led us to this point. So now we see the headlines already talking about the probability of the ROI (return on investment) of all the money put into the auto companies alone. Although these bailouts may have been necessary to save companies and entire industries our new stock broker appears to have made some bad choices. The government has been very aggressive in their ownership stakes in the businesses and I like that component because it may juice returns. However, a lot of zero is still zero. We are all hoping the money across all these companies will have gains and losses so in the end the portfolio comes out ahead or at least recover the money but we all know the government has never been able to do things like this.

There you have it. I expect to see more headlines around the assets we now own as shareholders. I know you and I would never make investment like this unless you were a venture capitalist like me. The whole program is hugely risky and I hope the managers of the portfolio are really great. In my opinion I would have or would incentivize large buyout companies, turn around executives and other best of breed people to manage these portfolios for optimum return. The fear I have is that politicians and career academics are managing these things. If money was to be made by making these portfolios really produce returns I suspect the best and brightest people in the world would sign up to help. I certainly would for certain.

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Will the SEC be Sued

By Bill Glynn | Published: September 4, 2009

 

Madoff Negligence Sets up SEC for Madoff Investors

I am certain the Billionaire’s Boys club is using every tool, social, political and economic to wrangle the SEC into a position to help them recover their pilfered monies from the Madoff scam. The recent announcements of negligence and incompetence in uncovering the Madoff ponzi scheme leaves the door wide open for a shareholder class action suit against the SEC for certain.

It already appears to me the powers to be are at work. Having the SEC spit up words like incompetence is a strong indication that behind the scenes pressure has begun to soften the government for another bailout. Powerful people lost huge amounts of money and so did the little guy. The little guy is in good company. I am certain if mom and pop who also lost millions stood up, and they have, to cry foul they words would go largely unnoticed. That is one thing. If a billionaire stands up and cries foul that is an entirely different dynamic.

Money and power go hand in hand. Lucky for all the investors the big boys are playing hard ball and for certain pressure on the political machine that they have probably paid millions into has their head in a vice to do something. It is not some revelation that the SEC missed all this but it is a revelation to see them set themselves up for a fall. It is really unheard of. I strongly believe this has been brought about at least in part from tremendous pressure worldwide to position a recovery of the monies lost. Heck you would be shot in the streets these days for a pair of sneakers. In this case the fall guys are being lined up against the wall in front of firing squad and I bet we will see the SEC in court and forced to cut a deal to pay the investors back.

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