Wednesday night on Jay Leno President Obama avoided the answer to Jay’s direct question about Congress’s taxing a selected group of citizens just because they’re mad at them.
President Obama on Thursday commended the House for passing the measure.
"Today's vote rightly reflects the outrage that so many feel over the lavish bonuses that AIG provided its employees at the expense of the taxpayers who have kept this failed company afloat," he said. "I look forward to receiving a final product that will serve as a strong signal to the executives who run these firms that such compensation will not be tolerated."
http://www.cnn.com/2009/POLITICS/03/20/bonus.bill/index.html
But on Sunday’s 60 Minutes he said:
The president also stressed that his administration won't endorse a House bill that would levy a 90 percent tax on bonuses paid out by companies that receive bailout money.
"As a general proposition, you don't want to be passing laws that are just targeting a handful of individuals," Obama said. "You want to pass laws that have some broad applicability ... you certainly don't want to use the tax code to punish people."
http://www.cnn.com/2009/POLITICS/03/22/obama.60.minutes/index.html
Which is it BARRY? Are we taxing/punishing them or not?
Monday, March 23, 2009
Tuesday, March 17, 2009
AIG Bonuses
AIG paid 73 employees bonuses of $1 million or more; 11 of whom are nolonger there, according to NY Atty. Gen. Cuomo.
http://www.cnn.com/2009/POLITICS/03/17/aig.bonuses/index.html
Brilliant. You’re not supposed to get bonuses after you’ve left. You’re no longer an employee.
AIG is a bad company and should’ve went under. It would’ve been better for the economy if they collapsed. The mortgages would’ve been sold to Wells Fargo and others for 25 cents on the dollar. On a $400,000 house now worth $200,000 they would’ve paid $100,000 for the mortgage and gladly refinanced it to the homeowner for $200,000. This would’ve lowered their payment, kept them in their house and the new mortgage holder would make a profit off a previously bad loan. With a bailout the horrible status quo is maintained and the economy is held up with a false-bottom and still has room to hit rock-bottom. But this time rock bottom includes a government mortgaged future of bailout money we borrowed from whoever. What a mess.
http://www.cnn.com/2009/POLITICS/03/17/aig.bonuses/index.html
Brilliant. You’re not supposed to get bonuses after you’ve left. You’re no longer an employee.
AIG is a bad company and should’ve went under. It would’ve been better for the economy if they collapsed. The mortgages would’ve been sold to Wells Fargo and others for 25 cents on the dollar. On a $400,000 house now worth $200,000 they would’ve paid $100,000 for the mortgage and gladly refinanced it to the homeowner for $200,000. This would’ve lowered their payment, kept them in their house and the new mortgage holder would make a profit off a previously bad loan. With a bailout the horrible status quo is maintained and the economy is held up with a false-bottom and still has room to hit rock-bottom. But this time rock bottom includes a government mortgaged future of bailout money we borrowed from whoever. What a mess.
Monday, March 16, 2009
AIG OUTRAGE
I agree with Obama that the bonuses at AIG are an OUTRAGE!
http://www.cnn.com/2009/POLITICS/03/16/AIG.bonuses/index.html
$165M??? The average household income in the U.S. is about $50,000 a year according to the 2007 census. $165,000,000 would keep 3,300 families afloat for an entire year. Someone at AIG should be behind bars. I know, how about all of those that have the audacity to cash that bonus check.
http://www.cnn.com/2009/POLITICS/03/16/AIG.bonuses/index.html
$165M??? The average household income in the U.S. is about $50,000 a year according to the 2007 census. $165,000,000 would keep 3,300 families afloat for an entire year. Someone at AIG should be behind bars. I know, how about all of those that have the audacity to cash that bonus check.
Sunday, March 1, 2009
Dow Jones History
Please bear with the numbers. This is fascinating.
Prior to the stock market crash in October 1929 the Dow topped out at 381.17 on September 3rd 1929. Prior to what is considered the first crash day it slowly slid to 305.85 on October 23rd 1929. The Dow dropped about 10% on the 24th to 272.32 before rebounding to a close of 299.47 for a 2% drop. It hung in there for a day and ended the week at 301.22. The week began at 322.91 for a 6.7% drop for the week. Then, on black Monday (2nd crash day) it plummeted 13.5% to 260.64. The next day on black Tuesday (3rd crash day) it dropped another 11.7% to 230.07 for a total 2-day drop of 23.6%.
It continued to slide to 198.69 on November 11th 1929 before rebounding for awhile. By April 17th 1930 it had climbed back up to 294.07. It was almost back up to its pre-crash levels. But, it started to slowly slide again and dropped back under 200 on October 9th 1930 at 192.00. It saw 200 again a couple of days later but that was it for awhile. The slide continued and it dropped below 100 for the first time at 99.80 on September 29th 1931. There was some minor rebounding back and forth before it slid again until it hit its all-time low of 41.22 on July 8th 1932. That amounts to a drop of 89.2% from the September 3rd 1929 high to the July 9th 1932 low.
On March 3rd 1933 the market closed at 53.84 just a day before FDR’s first inauguration. By July 3rd 1933 it was back over 100 at 103.77. That’s a 92.7% increase in the day. Still far below the 381.17 peak just four years prior. The Dow then flirted with 100 bouncing back and forth until March 27th 1935 when it closed at 100.35 and stayed over 100 for almost 2 years. It peaked out at 194.40 before dropping below 100 again at 99.53 on March 31st 1942. For almost nine years it barely budged. On May 27th 1942 it finally got over 100 (101.09) and stayed forevermore.
On April 12th 1945, the day FDR died, the market closed at 158.48. That’s a 194.4% increase over 16 years from his first inauguration day but still 58.4% below the September 1929 peak.
The market finally saw 200 again on January 11th 1946. It didn’t stick though. It didn’t pass 200 and stay there until July 18th 1950 (about 4.5 years later). The Dow finally reached the September 1929 peak level again on November 23rd 1954 at 382.74. It took over 25 years to fully recover from the 1929 crash. It’s been mostly UP from there. The market, thus far, has never dropped below 382.74 again.
If you practiced the popular “buy-and-hold” stock strategy made popular by Warren Buffett (which works well in good times); in theory, the stocks you bought on September 3rd 1929 would finally be worth the same price you paid for them on November 23rd 1954. It would’ve taken you 25 years to break even.
How long will it take for us to break even this time? On September 3rd 2008 (79 years from the 1929 peak) the Dow closed at 11,532.88. As of February 25th 2009 it closed at 7,270.89. That’s a 37% drop in just over five months. It’ll take a 58.6% increase just to break even. To put that size of an increase into perspective we were at 7,290.69 on May 21st 1997. It took until January 12th 2000 to get to 11,551.10. That’s almost three years and during a time of economic prosperity to make that increase. Also, post 9/11, we fell to 7,286.27 by October 9th 2002. We got back up to 11,577.74 on May 5th 2006. It took nearly 3.5 years to recover during the post 9/11 collapse.
Prior to the stock market crash in October 1929 the Dow topped out at 381.17 on September 3rd 1929. Prior to what is considered the first crash day it slowly slid to 305.85 on October 23rd 1929. The Dow dropped about 10% on the 24th to 272.32 before rebounding to a close of 299.47 for a 2% drop. It hung in there for a day and ended the week at 301.22. The week began at 322.91 for a 6.7% drop for the week. Then, on black Monday (2nd crash day) it plummeted 13.5% to 260.64. The next day on black Tuesday (3rd crash day) it dropped another 11.7% to 230.07 for a total 2-day drop of 23.6%.
It continued to slide to 198.69 on November 11th 1929 before rebounding for awhile. By April 17th 1930 it had climbed back up to 294.07. It was almost back up to its pre-crash levels. But, it started to slowly slide again and dropped back under 200 on October 9th 1930 at 192.00. It saw 200 again a couple of days later but that was it for awhile. The slide continued and it dropped below 100 for the first time at 99.80 on September 29th 1931. There was some minor rebounding back and forth before it slid again until it hit its all-time low of 41.22 on July 8th 1932. That amounts to a drop of 89.2% from the September 3rd 1929 high to the July 9th 1932 low.
On March 3rd 1933 the market closed at 53.84 just a day before FDR’s first inauguration. By July 3rd 1933 it was back over 100 at 103.77. That’s a 92.7% increase in the day. Still far below the 381.17 peak just four years prior. The Dow then flirted with 100 bouncing back and forth until March 27th 1935 when it closed at 100.35 and stayed over 100 for almost 2 years. It peaked out at 194.40 before dropping below 100 again at 99.53 on March 31st 1942. For almost nine years it barely budged. On May 27th 1942 it finally got over 100 (101.09) and stayed forevermore.
On April 12th 1945, the day FDR died, the market closed at 158.48. That’s a 194.4% increase over 16 years from his first inauguration day but still 58.4% below the September 1929 peak.
The market finally saw 200 again on January 11th 1946. It didn’t stick though. It didn’t pass 200 and stay there until July 18th 1950 (about 4.5 years later). The Dow finally reached the September 1929 peak level again on November 23rd 1954 at 382.74. It took over 25 years to fully recover from the 1929 crash. It’s been mostly UP from there. The market, thus far, has never dropped below 382.74 again.
If you practiced the popular “buy-and-hold” stock strategy made popular by Warren Buffett (which works well in good times); in theory, the stocks you bought on September 3rd 1929 would finally be worth the same price you paid for them on November 23rd 1954. It would’ve taken you 25 years to break even.
How long will it take for us to break even this time? On September 3rd 2008 (79 years from the 1929 peak) the Dow closed at 11,532.88. As of February 25th 2009 it closed at 7,270.89. That’s a 37% drop in just over five months. It’ll take a 58.6% increase just to break even. To put that size of an increase into perspective we were at 7,290.69 on May 21st 1997. It took until January 12th 2000 to get to 11,551.10. That’s almost three years and during a time of economic prosperity to make that increase. Also, post 9/11, we fell to 7,286.27 by October 9th 2002. We got back up to 11,577.74 on May 5th 2006. It took nearly 3.5 years to recover during the post 9/11 collapse.
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