Monday, November 24, 2008

Where's the Money??

Last week I wrote about the possible bailout of the automakers, but now it is Citi! According to reuters.com, "The Treasury Department will get $24 billion of preferred shares and the FDIC $3 billion. Of the combined amount, $7 billion constitutes a fee for the government guarantees. The government will also receive warrants to buy $2.7 billion of common stock, comprising about 254 million shares at $10.61 each." Remember what I said about the government going to buy company stock? That means our government will be able to vote on company issues since they are now a shareholder. Bye bye free market! The article says it is only temporary... Ummm sure...


Because of the bad investment decisions and bad management, Citi has made its own bed. One thing I don't quite understand how does the government pick and choose who they want to help? Wamu didn't cut it, IndyMac didn't cut it, but AIG did and so did Citi. I would love to see the list of qualifications.

I don't see how people can think that throwing money at the problem will fix it! Obama and fellow democrats are suggesting a stimilus package that could exceed the $700 billion bailout. According to FT.com, "Chuck Schumer, a leading Democratic senator, predicted it could be as much as $500bn-$700bn. “It’s a little like having a new New Deal, but you have to do it before the Depression. Not after." Wait... can you believe it... I am not done. According to Bloomberg.com, our government is prepared to lend up to $7.4 trillion, that's $7,400,000,000,000 (if you didn't catch that), to rescue the financial markets!

President-elect Obama has said that he is considering a 2 year delay in any new taxes! On the service that seems like a noble thing, until you focus on the two words, "new taxes." Here is one of the significant differences between being a democrat and true republican (not a RINO, which stands for Republican In Name Only). When our economy slips, as it has, Democrats want to raise taxes or keep taxes how they are. Then a true conservative Republican's response is, "We need to cut taxes, all of them" just as Republicans in Congress have said.

The president-elect also has said that he would create 2.5 million jobs in investment in infrastructure, public service, and green technology. All of those jobs are government jobs. Who pays for all of those jobs? You and I, the taxpayer. Our government bureaucracy will be even bigger! I think John Boehner, House minority leader said it best,“I don’t think we want to empower government here and keep bureaucrats employed."

More spending, bigger government isn't the answer. We are hearing the comparisons to the Great Depression and how the government needs to respond. Just last month, two UCLA economists did a study that showed that FDR's actions caused the Great Depression to last 7 years longer than it had to. That is just something to think about.

Friday, November 21, 2008

Citizen Soldier

There is this one movie theatre that we occasionally go to. Before each movie, they play this one music video by 3 Doors Down. The song is called Citizen Soldier. The video is used for a recruiting advertisement for the National Guard, but the message that is portrayed is incredible! Our nation is blessed with the men and women who represent this country and put themselves in harms way whether it is in foreign or domestic lands. When you pray, don't forget to say a quick prayer for our soldiers as well. If you run into someone who has served or is serving right now, don't shy away from giving them a smile and shaking their hand and just saying thank you.



Lyrics
Beyond the boundaries of your city's lights.
Stand the heroes waiting for your cries.
So many times you did not bring this on yourself.
When the moment finally comes, I'll be there to help.

And on that day, when you need your brothers and sisters to care.
I'll be right here.

[[Chorus]]
Citizen soldiers.
Holding the light for the ones that we guide from the dark of despair.
Standing on guard for the ones that we've sheltered.
We'll always be ready because we will always be there.

When there're people crying in the streets.
When they're starving for a meal to eat.
When they simply need a place to make their beds.
Right here underneath my wing, you can rest your head.

On that day, when you need your brothers and sisters to care.
I'll be right here.

[[Chorus]]

Hope and pray, that you never need me.
The rest assured I will not let you down.
I walk beside you, but you may not see me.
The strongest among you may not wear a crown.

On the day when you need your brothers and sisters to care.
I'll be right here.
On that day when you don't have strength for the burden you bear.
I'll be right here.

[[Chorus]]

Tuesday, November 18, 2008

Another Bailout?

Another bailout...Really? The government has really opened Pandora's box on this one! Now you have cities asking for a bailout, states, and even private companies! The really big one that has hit the news recently is the "request" by the big three auto makers to get an emergency loan.

A lot of Americans are short term minded and are only concerned about the here and the now. How far are we, as a country, willing to go to make sure that we get through the economic downturn by bailing out companies both privately and publicly owned. Thanks to Wikipedia the definition of Capitalism is the economic system in which the means of production are owned and controlled privately, for profit, rather than by a state. Companies are built daily across the nation with the business owners knowingly taking the risk that there is a chance that their company might fail or that it might succeed! When Henry Ford started the Ford Motor Company, do you think the government would have bailed him out back then if he was on the verge of shutting down? I don't think so, because at that point, the company didn't employ that many people.

The point is that companies rise and fall, and they should be allowed to do just that! I was against the $700 billion bailout and I am also against any additional bailouts. I know what you might be thinking, "Oh wait, Justin, so many people could lose their jobs if the auto industry isn't bailed out." I understand that families will suffer if there are layoffs or if you get a pay cut if you keep your job. This is coming from someone who is directly affected by the current economic situation. If the companies are on the verge of collapsing, then they ought to be allowed to collapse. The opposite is true as well, if they are thriving, don't tax them more!

America used to pride itself with the fact that it had a "free" market society. With constant intervention and constant talks of even more regulation, our free market is not so free anymore. Throwing money at the problem won't fix the problem. Today, Harry Reid said, "All it would take is one stroke of a pen and that problem would be solved. We are seeing a potential meltdown in the auto industry, with consequences that could directly impact millions of American workers and cause further devastation to our economy."

Sorry Harry, writing a check won't solve anything long term. Sure it might be a band-aid, but you aren't cleaning the wound and sewing it up to ensure that it heals properly. Any kind of sudden movements or any kind of scratching at the wound could tear the band-aid right off and the bleeding starts all over again.

We all want to be considered a patriot. When you think of our soldiers going off to Iraq or any place else, you think of patriotism. When our country united together after 9/11, you think of patriotism. Patriotism is showing the love and devotion to one's country. Soldiers that are being shipped off to Iraq are thinking of only their country! They are leaving their family and friends behind because of their patriotism. Biden said that paying more taxes was patriotism... I don't agree with that at all. However, I consider myself a patriot because I am devoted to this country and I love it! I want it to succeed how the founders wanted it to! So why am I against the bailout of the banking and auto industries? Why am I against bailing out private and public companies? Because of the love for my country!

I would much rather suffer through these next few months knowing that the future of this nation remained intact, rather than see the government take our tax paying money and pick and choose which companies they think should succeed or fail or take our money and buy stocks in lower performing companies. Don't you see that because of this, the government would have part ownership in these public companies? Say goodbye to free markets. These politicians are thinking only in the short term (2-3 years). They are doing what they can to fix the immediate problem. Notice how these recessions are getting closer and closer together in years? Until they actual sew up the wound and allow it to heal, we are going to continue to see this cycle. Sure we won't have layoffs in 2009 or 2010, but what will happen in 2011? Even though we might see massive layoffs, if companies were allowed to fail, it would be better for our country in the long run and benefit us more in the long run if we allowed companies to rebuild themselves.

We will be better and stronger for it!

Sunday, November 16, 2008

A Change of Scenery

Welcome to the new blog of Justin Steiner! I will still keep my old blog jpsteiner40.blogspot.com up and running, but I won't be making any new posts there, at least not in the near future. One of my friends put a link to my blog on his and the title was, "Big Guy - Bigger Opinions." So that is where I get the name of my blog from. Just a little insight for you!

My wife does such a phenomenal job keeping everyone updated about the happenings of our life and family, I decided to change up my blog... just a little. Everyone thinks that their opinions are important right? I definitely think so! So here, at Big Guy - Bigger Opinions, you will find insights for you... you name it, politics, economics, business, movies, religion, heck, I will even venture into conspiracy theories! (no... don't think I am a conspiracy theorist, because I am far from that) If you are curious as to what I think about something, drop me a comment and I will be happy to think about it and give my opinion.

Just to give a quick explanation to who I am... I am a Christian, family man, conservative republican (there is a difference), businessman, pro-lifer, support our troops guy, reader, movie watcher, sports watcher, political junkie, and a proud self-proclaimed nerd (I didn't used to be this way).

I value the friends I have and never hold grudges against those who don't believe the same beliefs that I do. I think it is important to debate ideas (friendly debate of course) so that you can grow stronger in your beliefs. So if you don't agree with me, I would love to learn why! Who knows, maybe I will be swayed. =)