McCain May Privatize Fannie, Freddie; Obama Sees

Another example of slighlty better economic policy from McCain. I get tired of people complaining about Obama's lack of foregin policy. What about economic policy? Strong economic leadership is what this country needs.

John McCain and Barack Obama agree the Treasury needed to step in to rescue Fannie Mae and Freddie Mac. They disagree over how much the U.S. government should be involved in the housing market once the immediate crisis is past.

Republican Senator McCain of Arizona wants the government to take over the two agencies, split them up, and then exit the mortgage-finance business by selling them off. Democratic Senator Obama of Illinois is suggesting a more lasting federal involvement.

http://www.bloomberg.com/apps/news?pid=20601068&sid=a1ujoLiLLz78&refer=home

Song of the Week (9/13/08)

Atmoshpere - Trying to Find a Balance

Bubba is a Genius

When the temp is up and you have been hiking all day without drinking any water and need to get cooled down quick, take a tip from bubba.

Speaking of Guns...

A friend of mine is planning to purchase a gun soon. He knows the government is no tlooking out for him so he is ready to excersize his second ammendment right. That is if anyone recognizes the constitution in this country anymore.

The following story may persuade you to reconsider your vote; as if my banter about the predetermined election has not already. Besides the fact that the election will be rigged, here is another reason you might consider voting for McCain / Palin.

Obama refused to sign the Heller brief, and supports reinstituting the Clinton gun and magazine ban. He also supports Ted Kennedy's bill to ban semi-automatic handguns in the guise of "micro-stamping," and supports banning inexpensive handguns as "junk guns." Sen. McCain's running mate, Alaska Gov. Sarah Palin, is a NRA Life Member and hunter who says, "I support our Constitutional right to bear arms and am a proponent of gun safety programs for Alaska's youth," adding "I have always strongly supported the personal use of fish and game by Alaskans. I grew up hunting and fishing in Alaska, and I am proud to raise my children with this same uniquely Alaskan heritage."

To put it simply, Gov. Sarah Palin would be one of the most pro-gun vice-presidents in American history, and Joe Biden would definitely be the most anti-gun.

http://www.nraila.org/Legislation/Federal/Read.aspx?id=4156

Discounting Costco to Wal-Mart Signals Surge on Sales

It is interesting that their has long been a relationship between Costco and Wal-Mart stock price movement. They are both discount retailers, so it makes sense. With Americans straped for cash and bleeding benjamins at the pump, it may be time to go to Wal-Mart and Costco and take stock in them as well.

If I wasn't buried in debt, I would purchase some Costco stock.

Sept. 3 (Bloomberg) -- Costco Wholesale Corp., the biggest U.S. warehouse club, may have its best holiday-shopping season since going public 23 years ago because most U.S. retailers are preparing to have their worst since 1979.

Over the next 12 months, that will change with the warehouse chain likely to outperform the world's largest retailer [Wal-Mart], gaining 27 percent to $85 a share, according to estimates by Edward Weller, a ThinkPanmure LLC analyst in San Francisco. A surge in the stock would follow an historical relationship between the two chains' shares, based on data compiled by Bloomberg. Costco lagged behind run-ups in Wal-Mart at least four times in the past four years before rallying to surpass it.

Costco's price-to-earnings ratio of 23 is ``low compared to where they've been historically,'' said Patricia Edwards, a portfolio manager at Wentworth Hauser & Violich in Seattle.

http://www.bloomberg.com/apps/news?pid=20601213&sid=a0AFVOR4NeYI&refer=home

Palin Steps Forward to Fill In Blanks as National Candidate

Now I know for sure that she is a weak candidate that will make a lousy VP.

``America will have a strong and principled vice president,'' Bush said in a speech delivered via satellite from the White House.

Then, there are the increasing examples of her questionable actions. Looks like her and McCain will win for sure because no one pays attention to this. All they seem to care about is her gender.

Palin's reputation as an agent of change rests on her record as governor. She says she broke with the ``old-boy network'' by facing down oil and gas companies over energy development and tax rates and canceling a project to build a bridge to an island with 50 full-time residents. That project, dubbed the ``bridge to nowhere,'' was to be funded by a $223 million federal budget earmark that became a symbol of congressional spending excess.
In fact, Palin supported the bridge while running for governor, telling the Anchorage Daily News on Oct. 22, 2006, that she would continue state funding for it.
Veco Money
She also accepted $5,000 in campaign contributions in 2001 from executives of Veco Corp., an Anchorage-based oil-services company, when she was running for lieutenant governor. Veco is at the heart of a federal investigation of alleged political corruption; two executives pleaded guilty last year to bribing state politicians.

http://bloomberg.com/apps/news?pid=20601087&sid=aXRFPlbM7wuM&refer=home

Credit Card Bond Spreads Reach Record Over Benchmarks

Silly Americans, you cannot prosper while drowning in debt. Oh wait... there is always bankruptcy. Go ahead, spend away and let the investor eat the loss. They can spin it as write down and charge new borrowers a higher interest rate. Besides, you don't need good credit if everyone defaults at the same time. You credit score will still be relatively good.

I was taken back slightly as I read the following lines. Consumer debt is $2.59 trillion. That is about 1/3 of the national deficit. Without doing the calculation, I estimate that is roughly $10,ooo in debt for every man woman and child in this country. It would be interesting to find the per capita income and then derive the percentage of income paid out in interests each year. It kind of seems like share cropping all over again. History repeats itself in mysterious ways.


U.S. consumers borrowed more than twice as much as economists forecast in June. Consumer credit rose by $14.3 billion, the most since November, to $2.59 trillion, according to the Federal Reserve.

http://bloomberg.com/apps/news?pid=20601087&sid=a2qvrELyaqmA&refer=home