Perspective

Now that healthcare has passed with the President's signature, time to stand back and take a more expansive perspective. There is no doubt that the time has arrived for this country to experience a change. The president and congress symbolize this by passing healthcare in the current form. The positive is that those who have been complacent and letting others rule their lives have been pushed to action. This is what allows democracy to be strong, having its citizens be active participants in the ruling process. As time passes, we will experience what is in this healthcare bill. There is no one person who understands the breadth and scope of its impact. As it unfolds, use the impact to scrutinize your own life to see if you are living in a way that best serves you, your family, your relatives, and this planet. Stand up for what is important to you and your life path. If you don't know what that is, use this legislation as a signpost to point the way.

Again, I commend Google for not participating in China's censoring of its people. I welcome those companies and people who put their integrity before money and profits when there is a conflict between the two.

A new wrinkle to the housing market which has yet to reach bottom is Bank of America taking the lead to reduce the principle amount of mortgages of struggling home owners up to 30 % of the principle of the mortgage. I am sure other banks will follow their lead. Watch the FDIC. They closed 7 banks last Friday; the highest weekly rate of closures this year. Momentum is under way.

Hawaii, Foreclosures, Voting, Healthcare

Last week, I returned from a 2 week trip to Hawaii. Today, I see that an 8.8 magnitude earthquake in Chile has sounded the tsunami sirens in Hawaii. Interesting timing. :)

The foreclosure situation continues to lead the way. With new and existing home sales still spiraling down, I read of a 'new' plan being considered by the Treasury; a proposal banning ALL foreclosures unless the loans have first been screened and rejected by the government's Home Affordable Modification Program. Given the government's performance in how programs are 'managed,' I see only a delay in the inevitable. These reductions in sales are with the government tax credit. This does not bode well, especially after this program ends June 2010.

Fannie Mae needs another $13.5B in government aid because of the $15.2B forth quarter loss; total loans of $75B. There is no one who has his/her arms around this part of the financial system: Housing.

The FDIC problems banks rose to 27% in the last quarter to 702. As I indicated in a previous blog, given the doubling of the employee base in this agency, this is no surprise.

Dianne Feinstein's response to my request that she vote 'no' to reconfirming Bernanke was that she felt he should have 'another chance.' As I have indicated before, I am using what power I have to vote all incumbents out of office; Democrats and Republicans alike. I encourage each of you to use your voting power in whatever way you choose. It is important to vote.

In the past, I have made few comments about 'healthcare.' After seeing excerpts of the summit moderated by the president, I think objectivity is lost. I do not understand why 'tort reform' and allowing private healthcare providers to cross state lines are rejected as part of the plan. As I have indicated by my experiences with Blue Cross when it was the only choice being offered, I know it would be very beneficial in encouraging competition. I continue to write to Ms. Feinstein and Ms. Boxer. So far no response. It's is quite trying to live in the liberal state of California and be ignored on selective subjects.

Welcoming 2010

In other parts of the world, people have already welcomed the new year. I wish each and everyone a great year of learning and manifesting in this material world, seeing through the eyes of your soul. May you see the benefit of each lesson that crosses your path after you experience the emotional turmoil and fallout. It seems to be the human way of learning here. Wisdom comes from struggle and overcoming life's challenges. Dive deeply and know that you will surface when a breath is needed. Use this year to reassess where you are in life and be honest with yourself. Allow this to be a year of conscious change if dissatisfaction seems to be the main focus.

For 2010:

* It will be a great time to buy a home. Prices should reach bottom in the second half of 2010. Now that Freddie and Fannie received blank checks as a Christmas present, mortgages will be accessible.

* Healthcare will pass in some 'form.' Congress has clearly shown their unethical colors in how the elite manipulates and controls to get things passed. We do need a transformation in this industry. The Republicans have been digging in their heels yet they had their turn when they controlled both houses of congress and did not act. I hope that we, the masses, wake up to the fact that we are lead by a plutocracy versus democracy. We need to act in our respective ways to move toward democracy since we have reached critical mass in the disconnect between us and our representatives in congress. As you can see, I am an Independent who wants a government that listens to us and acts from that base.

* Our freedoms will continue to be diminished, especially with terrorism knocking on our door and finding pin lights of entry. The latest is the full body scan before entering an airplane. I am okay with that as long as we don't have to physically disrobe. I think it's quite symbolic that they will be looking at the inner.

HAPPY NEW YEAR!!! :) :) :)

Unreal World, The Beat Goes On

The markets buoyancy is amazing to me.

* Foreclosures hit a record high for the 9th straight month with 4 million homeowners either 3 months behind in payments or in foreclosure. The government backs more than 50% of the $10 trillion in mortgages through FRE and FNM. Also it backs VA and FHA loans; covering 99% of the mortgages. I think the housing market is in jeopard of recovering in 2010. I see the price of homes continuing to fall. And 20% of the economy is comprised of housing and related business.

* The government sponsored Pension Benefit Guarantee Corporation could need up to $202B. It covers 44 million of private sector workers. The demand for federal financial help is expanding in many areas they control. The numbers change frequently.

Also, California is projecting a $20.7 billion budget gap for 2010, and it could continue at a pace of $20 billion a year through 2015 if the state does not fix this by living within their means. Where are the realistic forward thinkers who look beyond the end of their noses when putting these budgets together?

I believe that given all the disruption that is occurring from changing the recommendations on when to have mammograms, trying the terrorists in New York versus a military court, and the myriad of actions that are reinforcing us as a debtor nation, is for our benefit, individually and collectively, to become less complacent and more self-reliant. This president appears to be planning on a one term only given his words and actions. His intention is to make as many changes as possible. The louder the resistance, the more the resolute he is on implementing his beliefs and agendas. Change is good and the human reaction is to resist change. Yet the changes I see happening to do not encourage us to be independent and resourceful. Change takes time, determined by the perceived magnitude of it. For example, the healthcare change that is needed cannot be shoved through congress, unread by those who vote on it, and expect it to be a change that benefits the highest good. Given that it accounts for close to 20% of the economy, we need to go through the process of taking the time to read it, discuss it, and compromise or collaborate on the disagreements. Many inputs are better than a only a few who look at it one way. We need all inputs to round out the view to see it the 'best' way. We can't afford not to, especially now with the magnitude of our debt. We are diminishing our ability to print money and keep interest rates at zero if there is another financial earthquake of our making.

Given my background in accounting and economics, you can see I am conservative when it comes to the financial arena. I have always disagreed with the way our government spends beyond its means. I voted for Perot in protest. I'm looking forward to seeing a qualified 'independent' decides to run for president in 2012. I am taking action in whatever way makes sense to me to move the energy of this country toward being fiscally responsible. It looks impossible, yet I believe anything is possible. :)

Justice Prevails

I'm breaking a record with two posts in one day. :) I just saw the news that Judge Rakoff ruled against the $33M settlement agreement between the SEC and B of A regarding accelerating $3.6B in executive bonuses before closing the deal to acquire Merrill Lynch. B of A paid these bonuses despite a record $27.6B loss and being a recipient of one of the largest federal bailout funds. The judge said, "the proposed settlement suggests a rather cynical relationship between the parties: the SEC gets to claim that it is exposing wrongdoing on the part of B of A in a high profile merger, the bank's management get to claim that they have been coerced into an onerous settlement by overzealous regulators. And all this is done at the expense, not only of the shareholders, but also of the truth." He said it will go to trial on February 1, 2009.

I am so elated to hear this ruling. May the jury set a standard that will make banks and regulators think more than twice before trying to sweep something this large under the rug for such a small amount. The word 'truth' stands out and once it has cut a path in the darkness with the help of this judge, this one individual, it naturally lights the way to expose that which does not want to be seen.

Now I'm waiting for justice to prevail in the case of the Treasury Department trying to prevent us from seeing how the money was divided up between the banks. It will be interesting to see what the judge rules after seeing their appeal.

On the healthcare subject, when I heard that the President had the backing of the pharmaceutical industry, I saw that as a huge red flag of politicking and rubbing shoulders behind the scenes versus an honest agreement that puts the citizen first. That industry is very profit motivated and whatever transpires between the two continues their profit goals.

Also, regarding justice, I firmly believe that tort reform is necessary when it comes to suing doctors and hospitals. I don't see it in the current plan that is in writing. Perhaps that is in the plan that is still in the ethers being discussed.

Healthcare, Importance of Experience, Personal Responsibility

On my July 27, 2009 blog, I shared what my personal experiences have been with medical insurance and also my opinion regarding what the current administration is attempting to do along with what I think would be prudent steps. As a country, we need to change our perspective as to how the individual is perceived. Instead of encouraging the victim energy with the 'government will take of you scenario', we need to be helping others learn how to be more resourceful and how to live within their means. This is a conservative viewpoint, yet I see that the continuation of our democracy and capitalism depends on this magnitude of a change. All the actions from the government should stem from this way of looking at us collectively. I am concerned that we are headed down the primrose path, but it is an exciting time and shows the importance of the individual standing firm in his/her integrity. The government at all levels does not know what is best for us. We have to influence them in a way that they listen and act accordingly, not just give us lip service and then act from what they think is right.

I see signs of our inexperience in our government showing up in the last few days. For example, we put a 35% tariff on the tires coming from China. They are in great consternation which tells me that there was no greasing of the wheels before acting. I wonder if anyone thought this whole process through, given the leverage that China holds because of their ownership of our debt to a tune of close to a trillion. Imagine the interest rate increase on this debt if they decided to protest against this tariff by dumping some of it.

There is great eloquence of self-expression coming from Washington D.C., but the actions are not matching what is being said. They have lost touch with the people. I am giving them credit that they had some connection in the past. An example is my personal experience with my two senators and representative, especially from their response around the TARP. They were receiving 95+% against, as was my vote, and still thought they knew better. They don't realize that their strength comes from us who see differently, more at the ground level, from living our own life experiences. A democracy has to include the people because the President's office, Senate, and House of Representatives are individuals mainly with law backgrounds who are affluent. It's easy for them to abuse their power, taking care of their needs/wants first as is reflected in their health care program. We as citizens are responsible for keeping them in check. Your power of influence is greater than you would believe. Don't hesitate to make your own words known when you know that others are not operating with integrity or ethics, or are just plain ignorant.

China, Healthcare, Fed Chairman, Housing Sales

A formal summit between China and us started today. They are concerned about the devaluation of the dollar given the amount of our debt they hold. The Treasury Secretary reassures them that the U.S. is committed to a higher savings and lower deficit. These words sound good, but I have yet to see action taken that reflect it. We are still spending like there is no tomorrow, and I have concerns about the 'healthcare' push. Too much haste means much more waste that we cannot afford. I am for everyone having access to care. In 2006, I signed up with Blue Cross as an individual and had to pay $300 a month for a $5000 deductible plan. I was in the 'healthy' group. After a year was up, they sent me a notice raising the monthly premium although I had not used their insurance. Their response was to cover their costs. I cancelled my policy and continued uninsured as I had for the 10 years previous. During that time when I needed medical assistance, I told the doctor I was a self-payer and negotiated a smaller fee by paying cash. I think one step that would help our system is having more competition amongst the insurance providers. Second, as has been acknowledge, keeping people out of the emergency room when it is used for what a clinic or doctor's office could handle would create immense savings. Setting up a government program will not do that because the government does not have to make a profit and these are for profit companies. Also, history shows that the government collectively does not have a business mind and therefore the waste is immense with no one there to cut it away as a private or public company is forced to do.

The words of Fed Chairman Bernanke seem to be carrying less weight now. He said he is for a stronger dollar policy yet the dollar keeps falling overall. And he continues to justify his behavior in rescuing the banks because he did not want to be in his position with a 'second Great Depression'. I think that concern colored his lens on doing what would have helped this country in the long run. It seems time to replace him.

June new home sales are up 11%. That is good news yet remember the price of homes continue to decline. Based on this statistic, it seems that the lower housing prices are reaching the level where buyers are beginning to see it as a good deal. When the number of foreclosures start to turn around, then the bottom will be reached.