It could be a complete dud as an investment, or it could be an amazing buying opportunity!
Investors began selling off shares of National City Bank (NCC), a stock that traded for as high as $27.21 in October 2007, predicting it would be the next bank to fail. Bank officials, however, dispute that they will be the next to fail, citing stronger equity positions than other recently failed banks. Reportedly, the mortgages that this regional bank holds are less concentrated in areas of the country where home prices have fallen the most, such as Florida, southern California, and Nevada.
The current fire sale is up to 93% off the October high, but it's an 'as is' sale, so hopefully the goods aren't broke when you get them home - or fall apart shortly thereafter!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 29, 2008
Thursday, September 25, 2008
DISGUSTING.
It's funny how high-ranking politicians and government officials just conceded this week that we're in a financial mess nationwide. Rewind to the previous week, and they were still telling the American people that everything was fine and our economy was "sound".
Even a young banker from Indiana could see this coming. Not to toot my own horn, but in November 2007, I wrote a blog post entitled, "The State of Our Economy" as seen here: http://gcdailyworld.com/blogs/chriswathen/entry/14766/ In May 2008, another post by the name of "Postage, Mom, & Corn-Fed Beef" ( http://gcdailyworld.com/blogs/chriswathen/entry/18062/ ) warned about stagflation. A month later, in June 2008, I asked who would be caught holding the bag next in the post called "Musical Chairs. Who Will Be Out Next?" as you can see here: http://gcdailyworld.com/blogs/chriswathe...
It's not something I'm especially proud of, nor did I really ever want to say "I told you so," but it appears to be unfolding just as predicted. I guess you tend to think that these high-ranking officials have special privileges, powers, and information -- something beyond the grasp of the 'average Joe' -- but obviously not. Maybe they just need to read the news with some critical thinking involved like this Midwestern banker does.
If you hold politicians on a pedestal, you're going to be disappointed. When I read that the CEO of Goldman Sachs made $70 million last year ( http://www.nypost.com/seven/12132007/business/goldman_ceos_pay_may_be_70m_in_07_56960.htm ) I think, no wonder we have the politicians we do! Why would anyone ever want to be a politician when they can run a company into the ground for $70 million, losing over half of shareholders' wealth? Executive compensation has gone out of control. They could have hired any idiot off the street to do the same at many of these companies for much, much less.
But it gets better! Why work for $70 million a year when you can get fired and collect $68 million?! Chuck Prince, former CEO of Citigroup, made just that to get lost and join the unemployment line, as seen here in this CNN article: http://money.cnn.com/2008/03/07/news/new...
You may have read a few months ago, too, that Countrywide Financial CEO Angelo Mozilo inadvertently hit 'reply' instead of 'forward' to an e-mail asking for help, which was sent to him by a customer facing foreclosure. If not, here's a link to the story in the LA Times: http://articles.latimes.com/2008/may/21/...
To comment on Mozillo's compensation package, using a word from his own inadvertent e-mail reply, I'd say, "Disgusting."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Even a young banker from Indiana could see this coming. Not to toot my own horn, but in November 2007, I wrote a blog post entitled, "The State of Our Economy" as seen here: http://gcdailyworld.com/blogs/chriswathen/entry/14766/ In May 2008, another post by the name of "Postage, Mom, & Corn-Fed Beef" ( http://gcdailyworld.com/blogs/chriswathen/entry/18062/ ) warned about stagflation. A month later, in June 2008, I asked who would be caught holding the bag next in the post called "Musical Chairs. Who Will Be Out Next?" as you can see here: http://gcdailyworld.com/blogs/chriswathe...
It's not something I'm especially proud of, nor did I really ever want to say "I told you so," but it appears to be unfolding just as predicted. I guess you tend to think that these high-ranking officials have special privileges, powers, and information -- something beyond the grasp of the 'average Joe' -- but obviously not. Maybe they just need to read the news with some critical thinking involved like this Midwestern banker does.
If you hold politicians on a pedestal, you're going to be disappointed. When I read that the CEO of Goldman Sachs made $70 million last year ( http://www.nypost.com/seven/12132007/business/goldman_ceos_pay_may_be_70m_in_07_56960.htm ) I think, no wonder we have the politicians we do! Why would anyone ever want to be a politician when they can run a company into the ground for $70 million, losing over half of shareholders' wealth? Executive compensation has gone out of control. They could have hired any idiot off the street to do the same at many of these companies for much, much less.
But it gets better! Why work for $70 million a year when you can get fired and collect $68 million?! Chuck Prince, former CEO of Citigroup, made just that to get lost and join the unemployment line, as seen here in this CNN article: http://money.cnn.com/2008/03/07/news/new...
You may have read a few months ago, too, that Countrywide Financial CEO Angelo Mozilo inadvertently hit 'reply' instead of 'forward' to an e-mail asking for help, which was sent to him by a customer facing foreclosure. If not, here's a link to the story in the LA Times: http://articles.latimes.com/2008/may/21/...
To comment on Mozillo's compensation package, using a word from his own inadvertent e-mail reply, I'd say, "Disgusting."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, September 24, 2008
Tween Radio? No Thanks!
I can't stand the thought of having to pay for radio on Sirius or XM, but I was almost to that point. Then I discovered a new radio station.
If you share my frustration with the other "local" stations, and you're tired of having tweens pick the same 10 songs to be played over-and-over again (100.7 MIX-FM), or you're just sick of the non-stop commercials (HI-99), take a listen to a world-class rock station: 92.3 WTTS.
Although I still mourn the loss of 107.5 WZZQ from time-to-time, 92.3 has made up for it!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
If you share my frustration with the other "local" stations, and you're tired of having tweens pick the same 10 songs to be played over-and-over again (100.7 MIX-FM), or you're just sick of the non-stop commercials (HI-99), take a listen to a world-class rock station: 92.3 WTTS.
Although I still mourn the loss of 107.5 WZZQ from time-to-time, 92.3 has made up for it!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, September 23, 2008
Comparing Presidential Candidates Tax Plans
Recently, the Washington Post provided a chart of how the two major contenders for the U.S. Presidential election would stack up against each other with their respective tax plans, as shown here: http://www.washingtonpost.com/wp-dyn/con...
The Washington Post chart has been re-drawn above (click here for larger view:
http://chartjunk.karmanaut.com/images/taxplans.pdf ) and overlaid with U.S. census information on median U.S. household incomes, as well those for the median male & female. It also attributes each area to the percentage of U.S. population that it will affect, which is interesting data to show.
The U.S. Census data puts things in perspective, showing the percentages of the population that the candidates' tax policy will affect. Those that re-drew this chart claim that the uppermost income bracket only contains approximately 1,000 people, while the lower brackets contain millions ergo their reasoning for the re-draw to scale.
As you can see, Obama's plan calls for more tax savings in the lower brackets, but this decrease is mostly offset by increasing taxes in the two highest income brackets. The net effect is almost neutral overall with an average cut of $160.
McCain plans to provide more tax breaks to the upper-end of the income levels. Overall, the tax rates for everyone will go down on an average of $1,195, according to the chart.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
The Washington Post chart has been re-drawn above (click here for larger view:
http://chartjunk.karmanaut.com/images/taxplans.pdf ) and overlaid with U.S. census information on median U.S. household incomes, as well those for the median male & female. It also attributes each area to the percentage of U.S. population that it will affect, which is interesting data to show.
The U.S. Census data puts things in perspective, showing the percentages of the population that the candidates' tax policy will affect. Those that re-drew this chart claim that the uppermost income bracket only contains approximately 1,000 people, while the lower brackets contain millions ergo their reasoning for the re-draw to scale.
As you can see, Obama's plan calls for more tax savings in the lower brackets, but this decrease is mostly offset by increasing taxes in the two highest income brackets. The net effect is almost neutral overall with an average cut of $160.
McCain plans to provide more tax breaks to the upper-end of the income levels. Overall, the tax rates for everyone will go down on an average of $1,195, according to the chart.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, September 18, 2008
High Gas Prices Raise Even the Price of Cocaine
I found this quite interesting in the news today, as times are tough even for criminals:
Several newspapers around the country are including an Associated Press story about a 18-year-old drug dealer in Portage, Indiana, who allegedly has raised his price for cocaine due to the additional costs of delivery to his clientele. Reportedly, the northern Indiana man told a police informant that he's been charging an additional $25 "fuel surcharge" because of high gas prices, but was promising customers discounts in the future.
Perhaps he was going to buy a Prius…
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Several newspapers around the country are including an Associated Press story about a 18-year-old drug dealer in Portage, Indiana, who allegedly has raised his price for cocaine due to the additional costs of delivery to his clientele. Reportedly, the northern Indiana man told a police informant that he's been charging an additional $25 "fuel surcharge" because of high gas prices, but was promising customers discounts in the future.
Perhaps he was going to buy a Prius…
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 15, 2008
Things Are Looking Bad, Really Bad
A financial powerhouse that was founded in 1850 became the latest firm to fall in the midst of the subprime mortgage crisis. Lehman Brothers, filing for Chapter 11 bankruptcy protection earlier today, demonstrates once again that "the bigger they are, the harder they fall." Along with Lehman, in related banking and financial news today, Merrill Lynch was sold to Bank of America for $50 billion in BOA stock, while AIG is reportedly asking the Fed for $40 billion in emergency funding a la Bear Stearns earlier this year.
In a sea of red ink within the financial industry right now, will the Fed cut rates tomorrow?
Given these financial problems, the only good news may be that crude oil hit a seven-month low of $94.13 on word of all of this other bad news; however, Hurricane Ike is making sure the lower crude oil prices aren't necessarily translated to lower 'at the pump' prices. As I drove though Linton this morning, $4-plus gasoline seemed to be the norm.
As Americans' standard of living continues to erode, something has to break at some point. After all, to borrow Ronald Reagan's now-famous line from his 1980 debate with Jimmy Carter, "Are you better off than you were four years ago?" Of course, an old adage, which was popularized by former President Reagan, too, says "A recession is when your neighbor loses his job. A depression is when you lose yours."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
In a sea of red ink within the financial industry right now, will the Fed cut rates tomorrow?
Given these financial problems, the only good news may be that crude oil hit a seven-month low of $94.13 on word of all of this other bad news; however, Hurricane Ike is making sure the lower crude oil prices aren't necessarily translated to lower 'at the pump' prices. As I drove though Linton this morning, $4-plus gasoline seemed to be the norm.
As Americans' standard of living continues to erode, something has to break at some point. After all, to borrow Ronald Reagan's now-famous line from his 1980 debate with Jimmy Carter, "Are you better off than you were four years ago?" Of course, an old adage, which was popularized by former President Reagan, too, says "A recession is when your neighbor loses his job. A depression is when you lose yours."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Friday, September 12, 2008
Lowering Sales Tax Rate & Eliminating Property Tax?
Lawmakers in Indiana are discussing lowering the sales tax rate and eliminating property taxes. Here's the catch though:
They would apply sales tax to services too. By doing so, more tax money could be created, which could actually lower the sales tax rate overall and supplement enough additional monies to eliminate property taxes. So, you could be paying sales tax on everything from your tax preparation invoice to attorney's consultation to doctor's bill for a minor surgery.
It's been said that if the legislature says, "We have a tax deal for you!" that you better run away as quickly as you can. Listening to the sirens can pull you in and make your tax situation worse in the end; however, it would make the tax system more of a "consumption tax" rather than a property tax system. As I've posted before (click here: http://www.magiccoalcity.blogspot.com/), if you think you own property just skip a few property tax payments and see what happens.
Taxing services (along with goods as is the case now) with an overall lower sales tax rate and potentially eliminating property taxes: good or bad? What do you think? Would a consumption tax be more appealing?
And what other ramifications will come with it? For example, it seems even more accountants will be needed to keep track of the service-based businesses that have never had to track sales tax before. Given the demand for accountants is already very high since accounting standards have been increased in the wake of the WorldCom & Enron scandals, combined with the fact that the education requirements for CPAs have increased in the last 8 years or so, will that drive accountant scarcity to new highs?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
They would apply sales tax to services too. By doing so, more tax money could be created, which could actually lower the sales tax rate overall and supplement enough additional monies to eliminate property taxes. So, you could be paying sales tax on everything from your tax preparation invoice to attorney's consultation to doctor's bill for a minor surgery.
It's been said that if the legislature says, "We have a tax deal for you!" that you better run away as quickly as you can. Listening to the sirens can pull you in and make your tax situation worse in the end; however, it would make the tax system more of a "consumption tax" rather than a property tax system. As I've posted before (click here: http://www.magiccoalcity.blogspot.com/), if you think you own property just skip a few property tax payments and see what happens.
Taxing services (along with goods as is the case now) with an overall lower sales tax rate and potentially eliminating property taxes: good or bad? What do you think? Would a consumption tax be more appealing?
And what other ramifications will come with it? For example, it seems even more accountants will be needed to keep track of the service-based businesses that have never had to track sales tax before. Given the demand for accountants is already very high since accounting standards have been increased in the wake of the WorldCom & Enron scandals, combined with the fact that the education requirements for CPAs have increased in the last 8 years or so, will that drive accountant scarcity to new highs?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 8, 2008
Community Fundraising Jonah Fish Fry
Once again, the local Knights of Columbus is sponsoring their annual Community Fundraising Jonah Fish Fry on Friday, September 19, from 4:00 p.m. to 7:00 p.m. at their clubhouse located across from St. Peter Church at 4th & "E" Streets NE in Linton.
Tickets are $7.00 for adults and $4.00 for children. All of the proceeds go to your choice of organizations listed on the back of the tickets (just circle which one), including any of these:
* St. Peter Youth Group
* Linton National Guard Family Readiness Group
* Linton Junior Class (Prom)
* Cub Scout Pack 499
* Pregnancy Choices
* Greene County Crime Stoppers
* Bloomfield Holy Name Youth Group
* Linton Community Food Pantry
* Boy Scout Troop 407 Lyons
Contact anyone of these groups for tickets, or you should be able to purchase them at the door too.
Linton will play Springs Valley that night with the football game beginning at 7PM, so this is a great pre-game meal, which helps a number of local groups too!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tickets are $7.00 for adults and $4.00 for children. All of the proceeds go to your choice of organizations listed on the back of the tickets (just circle which one), including any of these:
* St. Peter Youth Group
* Linton National Guard Family Readiness Group
* Linton Junior Class (Prom)
* Cub Scout Pack 499
* Pregnancy Choices
* Greene County Crime Stoppers
* Bloomfield Holy Name Youth Group
* Linton Community Food Pantry
* Boy Scout Troop 407 Lyons
Contact anyone of these groups for tickets, or you should be able to purchase them at the door too.
Linton will play Springs Valley that night with the football game beginning at 7PM, so this is a great pre-game meal, which helps a number of local groups too!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, September 4, 2008
5 Years of High School Under Long Thompson?
Jill Long Thompson and Dennie Oxley, the Democratic candidates for governor and lieutenant governor, respectively, are proposing high school for some Hoosier students go into a fifth year for those who need more time to graduate, saying the plan would improve Indiana's graduation rate.
Yes, it would change the percentages, but I whole-heartedly DISAGREE with this because translated it says we would just be 'lowering the bar' to get more students to pass.
If students are so unmotivated in the first place, how is an extra year going to help? Perhaps they've not found their calling in life yet -- and most high school students haven't -- but what I'm saying is that there be alternative paths to help identify what exactly piques their interests and finds their passion. (Identify & treat the disease, not the symptoms.) After all, schools seem to train students to be good employees, who are all college-bound. That's not always the case.
Some will want to work for themselves. Others will take a vocational route in life, or they will pursue a particular unionized trade. I'm wondering if a poll was taken in the high schools today, could students identify what an electrical, pipefitter, laborer, or iron worker really does? Would they know those unions even exist?
In a related topic, would a poll reveal that they truly understand that geography, work weeks, and willingness to move, live in a big city vs. small town, and work odd hours will directly dictate your happiness in a particular field?
For example, a student wanting to be home every night with their family but has expectations of a long-haul trucking salary may be disappointed later in life. Or, what about an EMT who wants to work 9-5 Monday through Friday? It's probably not going to happen -- at least around small town America. What about a young person, who wants to open and own his or her own restaurant, but has expectations of working only 40 hours a week? Want to be a marine biologist and work in Greene County? Maybe Crane has something available, but I'm guessing that would be limited. It would probably be your only choice of employer too.
Somehow students need more exposure to a variety of jobs and fields, while instructors satisfy the exhaustive curriculum that is required. I'm not sure of the answers here, but a fifth year doesn't appear to be one of them.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Yes, it would change the percentages, but I whole-heartedly DISAGREE with this because translated it says we would just be 'lowering the bar' to get more students to pass.
If students are so unmotivated in the first place, how is an extra year going to help? Perhaps they've not found their calling in life yet -- and most high school students haven't -- but what I'm saying is that there be alternative paths to help identify what exactly piques their interests and finds their passion. (Identify & treat the disease, not the symptoms.) After all, schools seem to train students to be good employees, who are all college-bound. That's not always the case.
Some will want to work for themselves. Others will take a vocational route in life, or they will pursue a particular unionized trade. I'm wondering if a poll was taken in the high schools today, could students identify what an electrical, pipefitter, laborer, or iron worker really does? Would they know those unions even exist?
In a related topic, would a poll reveal that they truly understand that geography, work weeks, and willingness to move, live in a big city vs. small town, and work odd hours will directly dictate your happiness in a particular field?
For example, a student wanting to be home every night with their family but has expectations of a long-haul trucking salary may be disappointed later in life. Or, what about an EMT who wants to work 9-5 Monday through Friday? It's probably not going to happen -- at least around small town America. What about a young person, who wants to open and own his or her own restaurant, but has expectations of working only 40 hours a week? Want to be a marine biologist and work in Greene County? Maybe Crane has something available, but I'm guessing that would be limited. It would probably be your only choice of employer too.
Somehow students need more exposure to a variety of jobs and fields, while instructors satisfy the exhaustive curriculum that is required. I'm not sure of the answers here, but a fifth year doesn't appear to be one of them.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, September 2, 2008
6th ANNUAL GCEDC GOLF TOURNAMENT
Announcing the...
6TH ANNUAL GREENE COUNTY ECONOMIC DEVELOPMENT GOLF TOURNAMENT
FRIDAY, SEPTEMBER 19TH, 2008 - 10:00 A.M. SHOTGUN START
$50.00 per person Entry Fee includes:
*Green Fees
*Carts
*Lunch
($35.00 per person for Phil Harris Members)
Skill Prizes: longest drive, closest to the pin, longest putt, etc.!
For questions & further info, contact Brianne Perigo @ 847.4500 or admin@gcedc.us
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
6TH ANNUAL GREENE COUNTY ECONOMIC DEVELOPMENT GOLF TOURNAMENT
FRIDAY, SEPTEMBER 19TH, 2008 - 10:00 A.M. SHOTGUN START
$50.00 per person Entry Fee includes:
*Green Fees
*Carts
*Lunch
($35.00 per person for Phil Harris Members)
Skill Prizes: longest drive, closest to the pin, longest putt, etc.!
For questions & further info, contact Brianne Perigo @ 847.4500 or admin@gcedc.us
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 1, 2008
It's a Wonderful Day in History!
Friday, August 29th, 2008. It's a day on which many great things have occurred:
In 1756, Frederick the Great attacked Saxony, which began the Seven Years' War, and electromagnetic induction was discovered by Michael Faraday less than 80 years later on this day. Famous people, such as English philosopher John Locke was born on 08/29/32 -- 1632, that is. While television host Robin Leach was born this very day in 1941. Pope Pius VI died in 1799, while Swedish actress Ingrid Bergman was born into the world & died on the same day but several years apart in the years 1915 and 1982, respectively.
It's even the first day of Troth, which is the first day of the Egyptian calendar.
Of course, I bring this date up for none of these events, but only to pat myself on the back. (Yes, I know: don't break my arm.)
On this day one year ago, I posted my first blog post to the Greene County Daily World website, as one of the first "community bloggers" to join. After 112 posts -- and 1 deleted one -- later, I'm still here blogging away.
I hope you've enjoyed them over the past year.
So, Happy 1st Anniversary to me!
PS -- I must confess I knew none of the history shown above, but cheated by looking up the date at http://www.wikipedia.org/ Don't tell anyone though.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
In 1756, Frederick the Great attacked Saxony, which began the Seven Years' War, and electromagnetic induction was discovered by Michael Faraday less than 80 years later on this day. Famous people, such as English philosopher John Locke was born on 08/29/32 -- 1632, that is. While television host Robin Leach was born this very day in 1941. Pope Pius VI died in 1799, while Swedish actress Ingrid Bergman was born into the world & died on the same day but several years apart in the years 1915 and 1982, respectively.
It's even the first day of Troth, which is the first day of the Egyptian calendar.
Of course, I bring this date up for none of these events, but only to pat myself on the back. (Yes, I know: don't break my arm.)
On this day one year ago, I posted my first blog post to the Greene County Daily World website, as one of the first "community bloggers" to join. After 112 posts -- and 1 deleted one -- later, I'm still here blogging away.
I hope you've enjoyed them over the past year.
So, Happy 1st Anniversary to me!
PS -- I must confess I knew none of the history shown above, but cheated by looking up the date at http://www.wikipedia.org/ Don't tell anyone though.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
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