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CIT Stiffs Government AND Taxpayers And Gets Little Front Page Coverage...What A Crock Of CIT

Perhaps bank failures are so common place with 100+ banks (another 32 last month?) that who would notice one more?  CIT is a little different.  When running the difference between their assets and liabilities from numbers posted in the New York Times, CIT seems to have a billion more in assets left when it's all said and done.  

Now here is where it gets stickier.  So, after a long battle to keep CIT from filing bankruptcy, it does a turnkey program with Goldman Sachs agreeing to hold paper, bond holders getting 30-60 cents on the dollar, stock holders such as I getting squat, and, oh yeah, they get to eliminate the entire balance of their TARP bail out.  

Perhaps it's from watching the likes of Bank of America, Goldman Sachs or even General Motors (Remember, GM's bankruptcy cleared all obligation to its retirees and yet their crap cars still go for 30K) and realizing that in a slight of hand they can clear their debt, keep executive bonuses and join the fraternity of prosperity.

Its time the government put its foot down.  There should be no exception to bail out money repayment.  None!  Ask the multitude of college graduates still struggling to pay their student loans.  

As the market closed Friday with stocks on the decline, CIT following suit filed for bankruptcy Sunday.  Sunday???  Can anyone say insider trade?  Yeah, let's wrap this one up before the market opens Monday.by already having dumped ours at 3:30 Friday.  We sure have a lot of swiss cheese here.  Is the SEC letting this one slide as it did Madoff?  The news should be clammering about this turn of events.  They got billions in TARP.  Accountability?  Our Treasury Secretary has some answering to the American people.  Too many people are walking, way too many.  And its time for it to stop.

Health Insurance To Be Stripped Of Its Protected Business Practices... It's About Time!

If any other industry fixed prices or coordinated limited access to trade it would be slammed into submission by the FTC.  In the 90's with the Clinton proto plan in full swing in Florida, I watched as middle level management swallowed up money for patient care in the merger and acquisition games of Wall Street.  

I decided to do a pro se attack on major players just to make my little statement.  I was informed then that insurance companies were exempt form Anti-Trust law.  Hmmmm, just who lobbyied for that special privilege?   

In an era where one could fed ex their bills to carriers such as Allstate insurance, track the delivery, and call the insurer only to be told that they "never received my bills" it became apparent that they had just a little too much damn control and were remiss in their fiduciary obligation to their clients and providers of care for such clients.

Today, it was announced on CNN that Congress was considering removing the exemption to level the playing field.  It's about damn time.  

Fl Senator Bill Nelson Replies To Information/Comment Request...

In a prior post I expressed concern over the additional tax Americans may face by tapping their 401K early to live day to day...  Senator Nelson was kind enough to reply in depth, and his comment is posted here for all to review and comment...

Dear Dr. Fellabaum:

Thank you for contacting me regarding the taxes on early withdrawals from retirement savings accounts. 

Many Americans find it necessary to pull funds from their 401Ks or IRAs in order to keep their homes. Early withdrawals from a retirement account are subject to an additional tax of 10% if the distribution is made before the age of 59 and 6 months. This tax penalty is a hard toll on taxpayers already struggling in a weak economy and labor market. 

Last year, I sponsored an amendment to the Housing and Economic Recovery Act of 2008 that would allow for penalty-free use of up to $25,000 from retirement savings accounts for the purpose of foreclosure recovery relief on a principal residence. However, that amendment was not included in the final bill. I will continue to push Congress to enact measures that offer real relief for homeowners.

I recently introduced a bill (S. 1657) that would allow public safety employees who retire before the age of 55, like firefighters and paramedics, to make withdrawals from their retirement accounts without paying a tax penalty. Many public safety agencies require retirement before the age of 55. We must ensure that our first-responders have access to their retirement savings when they retire.

I appreciate hearing from you on this important issue. Please don't hesitate to contact me in the future.

Sincerely,
Senator Bill Nelson

P.S. From time to time, I compile electronic news briefs highlighting key issues and hot topics of particular importance to Floridians. If you'd like to receive these e-briefs, visit my Web site and sign up for them at http://billnelson.senate.gov/news/ebriefs.cfm

If You Put Everyone Out Of Business You Eventually Have To Feed Them For Free...

WGCU, the SW Fl NPR station's fund raiser has Walmart matching 10% of the contributions with food going to the Harry Chapin Food Bank. If Walmart would pay employees more, manufacture and buy American, perhaps this wouldn't be needed...

Home-Buyer Credit: Well If You Really Wanted To Help A Brother Out...

If you are a first time home buyer or have not owned a home in over 2 or 3 years, you may qualify for a tax credit that can help you get into a home.  There is discussion to take it out of unspent stimulus funds.  The states better move and use up that budgetary allowance.

However, maybe it is about time mortgages were outlawed as being one of the largest rip offs and corporate lies to the American consumer.  If you don't know, a mortgage is structured that you pay the interest up front in the first five years.  Traditionally, with a simple loan, your payment decreases both principal due and interest charges as the interest is based on the amount still remaining on the loan.  So after 5 years of paying $1,200 a month, you could still owe 95% of the loan.  Do the math.  Take your house payment, multiply it by 12 then by thirty and subtract the amount you bought the house for.  Better yet divide the purchase price into the above number and you will see that you pay about 3 times the purchase price.  Lenders structure the loan you owe (after adding on junk fees) and after a few years sell your loan after the cream is siphoned off.  During the bubble, they sold them quicker because they were jamming the junk fees down your throat and were making more money faster by feeing you to death.  

Now, for the first time in a long time in this country, people are not rushing out to buy the latest big screen TV.  They are saving.  Something that a consumerism economy frowns upon.  What? You want to keep your money!  If our government outlawed the current form of lending, you would pay principal and interest in such a way with a simple interest loan that you would pay your home off in 12 years.  Yep, 12.  Time to write your legislators.  In the mean time, if you pay half of your monthly payment early, you can achieve the same effect.  And the "effective interest rate" you pay is more like 4%, even if you have a 8% loan.    As Americans you can take control of your country back by first taking control of your money back.  Saving money makes you rich, spending makes the rich richer.

Citizens are the livestock of government...

They can be sent to slaughter as in war,

They can be used for breeding to increase the herd,

They can be put out to pasture as in retirement, and

They can serve as collateral for loans from the world bank.

But through all this do you think Congress feels any need to cover our vet bills?

U.S. states suffer "unbelievable" revenue shortages:

U.S. states suffer "unbelievable" revenue shortages:

 

"It's crazy. It's really just unbelievable," said Scott Pattison, executive director of the National Association of State Budget Officers, and called the states' revenue situations "close to unprecedented."
http://news.yahoo.com/s/nm/20091009/pl_nm/us_usa_state_budgets

See My Prior Writing On Subject

Reccurent Cycles In The Stock Market: When Years Collide...

n a general overview of stock downturns, recessions, depressions and recurrent overlying bear markets, I have assembled the following chart showing the patterns as follows...

 Downturns occur every 10 years in years ending in 3, 20 years in years ending in 9 and 30 years in years ending in 3.  All three sequences occurring sequentially happens every 60 years and the duration is for 7 years.   Also, there also appears to be the tendency to have a bear market every 7 years.  Sometimes the bear market strikes on the above mentioned years, other times in between which I have referred to as black bear markets.  Here is the chart... have fun and let's see if the patterns have merit.  Oh, this current recession is not slated for a continuation into 2013 but this is also a year slated for a bear market in the same downturn year ending in 9.  I have my limit orders in at 50% of the current market for additional purchases.

Taxes: One Way Or Another They're The Only Way To Pay For Health Care!

If A Federal Health Plan Fails To Pass, Will Florida Look To A State Income Tax To Pay The Bills?

On average, state tax revenues are currently down 17% from the second quarter and the biggest drop was in state income taxes which are down 28% from a year ago.  Sales tax revenues are also down 9% according to the Wall Street Journal, September 30, 2009.  Eventually, a state income tax may be the tax of last resort.

A call placed last week to Rep. Burt Saunders office last week was not returned, but a staffer at Dave Aronberg's relayed a message via email that current Republican control will not move on a state income tax in Florida. 

There is a growing demand for social programs for working couples and business owners with  Medicaid covering more and more workers following suit of the food stamp program.. 

Whether a federal health plan passes or not, we will still pay for the hospital stays of illegals; you can thank the state hospital lobbyist for that.  At least, if a federal plan passes, then Americans will have their care paid for too. 

Tapping Your 401 K To Live May Find You Tapped Out By The IRS Next Spring

Many Americans struggling to get by have been tapping their 401 K to survive.  Many below the minimum age 59 1/2 are taking some or all of their available funds to pay the mortgage and put food on the table during troubled times.  There is one drawback in these times of bank bail outs: Most people are not getting bailed out.  And the problem may have just gotten worse. According to a broker at Scottrade in Ft. Myers, FL, both 401 K and IRA funds distributed prematurely are subject to a 10% penalty.  That's 10% off the total cash plus the required federal payroll taxes due.  Your employer contributed their part at a pre-tax position so they are not required to pay that part on your withdrawl. A co-worker completely drained his 401 K to scratch enough money to buy a Fannie Mae home. He was surprised that in this economy they kept coming back asking for more. I called U. S. Senator Bill Nelson's office in Ft. Myers as to whether any emergency tax relief legislation was being planned to help those that have hit hard times but using their own retirement resources to survive.  At the time of this post, I have not received an information if such plans are in the works. CPA Bob Bean, a financial strategist with the Strickland Financial Group in Ft. Myers and a former IRS tax agent also says that "All is taxable subject to penalty unless you're over 59 1/2."  In March with the market so crapped out I used some knowledge gained in the Strickland workshops and converted my 401 K to a Roth.  I had tax taken out in advance but considering how far down the market was, it was a wise move.  Remember, taxes can only go up and with a 401 K you can not leave the money in there at age 70.  You have to take distributions.  With all the bail out going on, taxes by the time I turn 70 will be astronomical and I will not have much in the way of deductions.  At least I can pass the Roth along to my daughter.