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Tuesday, February 09, 2010

BLUE THING #1: TNNW Surveys, Analyses and Findings

TNNW Surveys, Analyses and Findings

TNNW Survey #5 Results : The Economic Recession/Recovery in the U.S.
In its most recent public survey, The National Networker asked readers about the reasons for the U.S. recession, the parties responsible, the effectiveness of the government and the banks in bringing about a positive turnaround, our true current economic status and where our economy is headed. We received in excess of 100 responses. Here are the questions, the responses and the TNNW analysis.
The Survey Questions:

1. Do you believe that the worst is over, and that the US economy is on the road to recovery?

2. What do you think that the true (actual) US unemployment rate is?

3. Do you believe that banks are becoming more aggressive in terms of extending credit to consumers and to businesses?

4. Is your business or practice experiencing an increase in customer or client business at present?

5. Do you believe that the Federal Reserve System, The Treasury Department and the White House are being truthful with respect to the economic situation of the United States?

6. Do you believe that the Federal Reserve System, The Treasury Department and the White House are being responsible and proactive with respect to their handling of the economic situation of the United States?

7. What do you believe that the greatest single cause of the recession was (or is)? [Note: this question, as the others, offered multiple choices for answers, but also included an "open comment" box for readers to elaborate on their beliefs and to add their own individualized insights. Multiple choice questions are easily formatted and easily answered, but they tend to "force" answers in one direction or another (depending upon how they are worded by the survey designer), and do not allow for some very interesting commentary. Our "open comment" box provided an opportunity for our readers to think and respond outside of the box.]

The Survey Responses:

Respondents' Comments In The Open Box (NOTE: These Comments Have Not Been Edited ):



1.


Banks making big, speculative loans.




2.


too much leverage. too much purchasing on credit. too much mortgaging the future for instant gratification.




3.


Excessive greed on the part of governments, overtaxing, waste and unlimited power.




4.


Government and banks are joined at the hip and continue to be...




5.


Bernanke was asleep at the wheel while the crisis grew. Now they want to have him stick around for another term because they're afraid they'll do more damage by traumatizing the economy with a competent person. This is stupid squared.




6.


All of the above really. And, loans being given to those that could not qualify for them via the government insisting on getting into the free market with the housing acts from the 1990s.




7.


Combo of personal greed and corporate greed with media hype. I don't think it's reasonable to expect the government to regulate our enthusiasm for Horatio Alger situations.




8.


A combination of poor regulation, greed by banks, greed by consumers, and a free-for-all mentality by everybody




9.


And greed and financial ignorance on the part of citizen/consumers




10.


We always want to simplufy everything and blame ONE thing for everything that goes wrong. I do believe that the Outsourcing of jobs is a big factor, fueled by the unquenchable GREED of Corporations!




11.


Greed by gonvernement officials allowing greed by special interets.




12.


Stupidity and disregard for the most elementary risk management practices.




13.


Excess greed across the boards, not just the financial institutions. Competitive capitalism fails when greed becomes the focus. Poor ability for the government to control business because we have a bunch of lawyers governing us with little understanding of the business world and they too are driven too much by greed. First, staying in office - they will do what ever it takes. Second, they capitalize on their position to make more money. I'm afraid that this is more poison than the country can bare.




14.


Poor enforcement of existing regulations, and laws enacted by Congress in the Clinton Administration that encouraged mortgage lending to people who should never been able to get a mortgage.




15.


Too much government spending and intervention for the worse




16.


I blame the Federal Reserve Bank and Congress for "playing dice" with mortgage lending institutions like Freddie and Fannie.




17.


the recession was triggered by the collapse of the financial system. This collaspe is/was directly related to the lending practices encouraged, no, demanded by Fannie Mae and Freddie Mac. Also the refusal of Barney Frank in 2005, ( see the C-Span clip) to accept the independent audit of these two institutions warning of their impending collaspe if their lending and appraising practices were not corrected. But since Mr Frank received political campaign contributions from these institutions he refused to look into and change these practices. I put the blame on him, Bill Clinton (who revised the Act that expanded the practice of the requiring of lending money to people who could not qualify for their loans), and Jimmy Carter (who signed into law the act/bill which first allowed/ required these lending practices).




18.


A combination of the government turning a "blind eye" to corporate greed for the past 20-25 years (not just banking and financial institutions, although they have certainly played a major part in this), outsourcing of jobs and production to other countries so that the United States is no longer the manufacturing power that it once was, and gutting the middle class, rising oil and gasoline prices (again, with absolutely NO regulation by the Federal government), continued underfunding of the educational system in the United States.




19.


All th above




20.


Poor regulation
Excessive greed
Social engineering gone amuck




21.


Our economy, helped along by inept government oversight, financial market greed (everyone) and a declining base of real economic value (manufacturering) put us on a path of over valuing both property, secutiries and currency. It was bound to burst. Unfortunately, the solutions so far have been directed at all the wrong areas.




22.


Monetary policy which kept rates too low, and created a housing and credit bubble, especially fueled by GSE's like Fannie and Freddie




23.


Question 6 should have an option that permits proactive but ineffective action.




24.


USA needs a balance of regulation, training of people to be more independent and less dependent on jobs. at the same time to learn to work on teams, in collaboration, cooperative entrepreneurship, reduce irresponsible use on non-secured debt




25.


Manufacturing creates wealth. Government re-distributes wealth, but does not create. The USA has forgotten this. USA negotiates trade poorly; other country's protect their industries; we treat them as political pawns to buy democratic friends and lose our jobs. Read "Factory Man" by Jim Harbour.




26.


All of the above




27.


Combination of government requiring banks to make bad loans and penalizing them if they did not do those loans.




28.


Outsourcing and high interest rates on credit cards and criminal level greed.




29.


There is hardly any manufacturing and a little of service industry left in USA to absorb millions of unemployed persons in US. Most of new jobs are being created outside US. This is the time to call it a Depression and not a recession. The only solution to US Economy is to stop or restrict imports and start building manufacturing in USA.




30.


Federal government which has not provided proper oversight to the banking and financial instiutions, new ambitious social welfare programs which increase taxes (further hurting job creation). Foreign wars and aid which spends dollars we don't have and overall failure to recognize the global economy and its impact to the US




31.


Unsound spending habit of people. Lack of education and degree to gain white collar jobs.
In banking sectors, people been offered positions not on education, skills or experience but due to contacts and networks- who care if the company goes burst- I fill my pocket kind of thinking.




32.


Federal Reserves artificially low interest rates/loose credit and other policies are the creator of boom and bust cycles. Which leaves the to "big to fail" companies being protected by the government and everyone else paying the bill for their failed policies.




33.


Perfect storm - Asset bubbles caused by inadequate oversight and deregulation in many industries (most notably the recission of Glass-Steagal), worker surplus created by technology, sell off in the past 30 years of America's natural resources, manufacturing base, real estate, and now human capital, and lastly - Greed and wastefulness by all - unions, corporations, and consumers. We pay more in America for in many cases - subpar service, goods, & healthcare - and delude ourselves into thinking things are great.




34.


These and a lack of true statistical knowledge of the real financial picture, which includes over 21 million IRS reported non-employer businesses, and as many as 150 million or more earning income on the side from home using credit.

No statistics or mention of the doubling of credit card payment minimums that caused millions of household budgets to go into the red, lowered disposable income, raised credit fees and interest, and contributed to mortgage defaults. Falls under the category of greed, but should be better publicized to correct the problem now and prevent it from happening in the future.




35.


Poor regulation and excessive greed as stated above




36.


I think it was a combination of the first three.




37.


All of the Above including corruption. The seeds planted grew into unfruitful trees. I believe we are on the right track now instituting compassion into the economy as well as creative capitalism and humanitarian entrepreneurship. Time and collaborative innovation with diversity will fix the past.




38.


Not outsourcing or rising oil prices, but the housing/financial crisis, caused by years of mismanagement and unbridled greed, as well as lack of government oversight.




39.


Cheney/Bush
Large corporations
World Elite clique




40.


All of the above and ownership of the media which was constant persuasion to consumers convincing people they could afford loans they couldn't, resources being overused and funds misspent on wrong priorities, no controls in place and those watching the controls guilty of shirking the responsibility of being the one to blow the whistle instead choosing to pocket the gains within financial institutions and government, mortgage and loan originators taking advantage of ill informed consumers, greed overall, lack of financial knowlege universally, the seeming belief by all that whatever went wrong could be hidden in the big government and not come back to them, the same for the majority of the US population, we didn't listen to our gut, trusted the powers that were to do their duty and ran the hampster wheel thinking it would go on forever and somehow all work out.




41.


All of the above




42.


excessive greed on the part of the American people!




43.


Poor and over- regulation by the government; excessive greed on the part of the federal government and some financial institutions. It's disingenius of our Congressional members to point fingers at banks for falling apart after forcing banks to make loans to people who don't qualify. The bailouts just ran up the national debt to mind numbing numbers. If any citizen printed money like the government is doing - the citizen would be in jail for printing counterfeit (and worthless) bills. I fail to see the difference.




44.


Combination of all the above




45.


The regulations that were in place were not followed or even checked in some cases. The practices of Banks was wrong and irresponsible which took advantage of the less capable to understand complicated financial instruments.




46.


Wild spending by Bush with unjustified tax cuts and no attempt to rein in Wall St speculators.




47.


Employers are not paying a decent wage any longer. My husband has been unemployed and has many years of experience. One company offered him $28,000.00 (salary). They told him, and I quote: "We can pay as little as possible because the market is glutted with people looking for work. Why should we pay more if we don't have to?"
Now that is a very sad story! Hard to support a family today on $13.50 per hour if you are a professional.




48.


A combination of the first two answers.




49.


I believe part was greed. The other part is that we have strayed from the principles this country was founded on and became too comfortable during our time of prosperity as a country. We did not pay closer attention to what our government was doing, the people we elected to represent us and the effect of special interest groups. As businesses are reponsible for the bottom line so to must our government.




50.


Lack of prudent financial management on the part of all concerned: excessive debt, unrealistic financial projections, lack of understanding of competition, etc.



Analysis and Commentary:

The statistics (as percentages) speak for themselves. The "open box" responses above (randomly selected out of 94 total responses), speak largely of recklessness, greed, lawlessness, straying from the American Work Ethic (i.e., work hard, save your money, and buy what you can afford), irresponsibility and immorality on the part of many parties. No one is completely blameless, but the government, banks and large corporations were constantly mentioned and repeatedly villified. It is interesting to note that given the opportunity to freely fix blame, fewer than 10% of our respondents chose to put the blame on a particular political party or one one specific political administration.

Our thanks go out to all of the wonderful folks who chose to respond, to speak their minds, and to educate us.

The unspoken question (but we shall speak it anyway), is...What do we, as individuals and as a society, do now?

Faithfully,

Douglas Castle

*Coming Soon! TNNW Survey #6 -- We promise to make it exciting, controversial and thought-provoking.


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Monday, February 08, 2010

THE POINT: “Anyone can buy a truck.” No, Mr. President, they can’t.

The Point with Brenda Krueger Huffman


When I saw the television evening news clip of President Obama at the Boston rally urging voters to vote for Martha Coakley on January 17 with his statement “Anyone can buy a truck.”, my first reaction was “No, Mr. President, they can’t.” My first thoughts were: Not only can many not buy a truck right now, but many are having a hard time for the first time in their lives just paying for food and their house payment. Many can’t believe they are facing car repossession, a foreclosure, or even a personal bankruptcy due to a prolonged unemployment rate of officially 10% to a reality rate of 17%; or they can’t believe their business revenue has been down 30% or more for over a year.

Many have seen a doubling and tripling of their credit card interest rate and minimum payments (with little notice) levied by the same banks bailed out by taxpayers even though they have been good customers. And we watched Congress congratulate itself for “credit card reform” legislation enacted last year with enough time before implementation in the legislation for banks to drive up rates and increase payment amounts prior to enactment. We are all seeing a general economic job growth checkmate brought on by uncertain business costs (taxes, health care cost, energy costs) and a government viewed by wary investors as unfriendly to business and profit.

I felt this truck talking point, that was no doubt thought of as clever in the intent of mocking the populous appeal of Scott Brown by the speech writers that wrote it, actually revealed a not so clever absence of being relatable to one or more out of every five Americans struggling and wishing they were in a stable enough financial position to buy a truck. In fact, even those with jobs or a surviving small business would have a hard time buying a truck right now, because bank loans are hard to come by for those without a 700+ FICO score or for those who have any other debt. And given the credit card interest and payment acceleration games going on the last several months, many are now behind on payments or have given up which has ruined their once excellent credit score.

The majority of these same now financially unstable people were quite stable even one or two years ago and generally through most of their lives up until now. These people are not looking for a government bailout – they want an appropriate job again, an end to usury credit card interest rates, an end to unfair credit and insurance practices, and a government that sees uplifting the down economy as priority one. They don’t want deficient spending that will impact the next 50 years in stifling higher tax rates for all – including the middle class - no matter what is promised now. They want the American Dream again for themselves and for their children and grandchildren.

As we all know, the Republican Scott Brown won the Massachusetts senate seat by a 5 point margin – shocking in the bluest of blue Democrat rule states. Actually, I don’t think President Obama’s truck comment or his stump appearance in general lost the race for Coakley. I don’t even think it was completely the health care debate in Washington that changed the seat to the Republican. Simply put, the Independent voters were the deciding factor in both the Scott Brown win in 2010 and the Barack Obama win in 2008. Many voters, even those that are registered Republican or Democrat, are actually more Independent voters in reality. In other words, the more partisan the politics have become in Washington, the more voters have been turned off to being affiliated with either major party. Voters will vote for the candidates they believe hear them and will be a vote in Congress that reflects their voice.

I am currently a registered Republican, but my views are more in line with being an Independent voter. It would benefit politicians wanting to keep their jobs this November and in 2012 to get to know the positions of the true Independent voters again. For example, I am more fiscally responsible than any true liberal. I am more socially tolerant than any true conservative. I can agree to disagree with someone on my political beliefs without name calling or personally demonizing them or their political party. I don’t like it when our elected politicians can not. I don’t expect every citizen or every politician I vote for to agree with me 100% to consider them a good person. I feel I exemplify the Independent voter.

I think it was voters of all parties that were tired of those in Washington not understanding and caring that their political antics and statements are affecting the economy that put Scott Brown in the Senate. Job growth is affected by Washington’s actions when the confidence of investors and banks to provide capital for job growth creation is lowered. When confidence is lowered, business owners are hesitant to increase any cost, especially their largest operating cost, which is usually adding new employees and thus their salaries and benefits. Voters realize that those in Washington are not personally and financially being affected by a hard economy as many of them, the voters, are. Voters resent that government is the largest growth sector especially in Washington D.C. itself. This fact is not a plus for Americans who know all government costs are paid for by taxes, and that all spending by Congress is increasing the national deficit.

It’s obvious to a majority of voters the $787 billion economic stimulus bill has not helped the economy and therefore them personally. It has not created real jobs, stopped lay-offs or slowed corporate or small business closings. It has not made the everyday lives of most Americans more financially stable. They can not simply go and buy that truck as the majority in Washington can, and those in Washington sadly don’t even realize the average American can’t. Voters are frustrated with those in Washington playing games with the language and real results of the stimulus spending “actually” creating permanent and real job growth.

Politicians play word games and political spin games while the unemployed continue to look for real jobs that have not been created. Voters wonder where billions of stimulus dollars were actually spent and for what. Voters raise their eyebrows when they hear each $45,000 per year job cost 8 to 10 times $45,000 to create it. Voters shake their heads when they hear seasonal jobs, part-time jobs, existing jobs, and a salary raise in an existing job are used in the figures to calculate the sum of new jobs created.

Voters can’t continue to borrow more money when loaded with debt. They can’t vote themselves a debt ceiling increase or avoid the consequence of personal pain for being in debt. Voters have personal consequences for not being able to pay their current bills that affect them today. And these consequences may continue to personally affect them for years to come. They get fired if they don’t do a good job. They don’t do one thing and say another and then casually spin it away in front of media cameras. They don’t meet behind closed doors and then say how transparent they are. They don’t consider raising taxes in a struggling business climate as a solution to the rising debt problem. They don’t ignore excessive spending as a root cause of rising debt.

I am not a “right-wing pro-greed, pro-war, corporate loving Republican conservative” or a “left-wing big government is the answer to everything, redistribution, nanny-state Democrat liberal”. I am not an evil, greedy capitalist at all costs. I am not an “everyone deserves the same outcome no matter the output” non-capitalist either. Like most Independent voters, I am sick of extremes. I do not like labels being placed on people or political parties. I am an independent thinker, and I do not think “party” when voting. I have voted for both Democrats and Republicans throughout my life. I vote for the candidate I like and for who has the best ideas for solutions to our country’s challenges.

I respect our founding fathers and our constitution. I am proud of America. I understand America is not perfect. I acknowledge mistakes have been made at times. (I was furious with President Bush and his administration for the failure to act effectively in the wake of the Katrina disaster.) But I also know America is the first country to give aid globally, and Americans are the most generous people in the world. I know “freedom” is not just a word to Americans. Freedom and national security are the first elements in our ability to pursue happiness.

I know government has a given role in America. But, I also know government can be a deterrent to its citizens and their prosperity when it exceeds its given role. Like most Independent voters, I believe in the free-market, yet I don’t believe insurance companies should be allowed to set their own profit agendas that include the practices of denying policy availability to those that have ever been sick or cutting off benefits to those policy holders that do get sick. I believe there is a need for health insurance reform, but I don’t want the government to take over health care or to mandate its purchase. I believe tort reform and interstate competition should be a part of any health care reform discussion as well as honesty to the American taxpayers in the true cost of the proposed reform. I don’t want the cost to break the backs of businesses leading to more unemployment and to taxpayers leading to more personal pain consequences.

I have never been about color or ethnicity. I celebrate the diversity that makes America interesting and strong. I don’t believe any business or company is too big to fail. I don’t believe the government should pick winners and losers in our economy. I don’t believe the government should use the tax code or exemptions to favor one group of citizens over another. I believe in a helping hand safety net to help lift someone to more stable ground, but I don’t believe in the deliberate use of government programs and policies for a redistribution political philosophy. You don’t lift some up by pulling others down. You also don’t ignore those that need a helping hand. But, you don’t offer that helping hand by having government take over a free market segment – any free market segment.

Independent voters are tired of the arrogance of both the Republicans and Democrats in the House and Senate. They are tired of the political rhetoric regarding the struggling middle class without job creation being the number one priority of Congress. They are tired of discussions on health care, cap and trade, and card check even being considered before working to stabilize the economy and affect real job creation which can only be accomplished by free market understanding and expansion. It can not be affected by government expansion which is in reality only taxpayer cost and risk expansion. It can only be affected by creating an economic environment in which confidence in private growth reward outweighs private growth risk. I am not an economist or in the financial industry, but I do have some sense of what has worked historically and what has not. I see what has worked in other countries and what has not.

I feel I have what many regular voters have, which is common sense. What I do know is you stop spending when you have no more money. What I do know is you don’t openly insult, talk down to, or ignore those you represent and their concerns and wishes. I believe this is why Scott Brown won the senate seat. He tapped into what the independent and common sense voters know, and he gave them confidence that he would represent their concerns and wishes in Washington.

He was smart to present himself as his own man and not a party man. He connected well with the independent thinkers and voters no matter the party affiliation they had if any. He drove a truck and didn’t give up when he was 30 points down in the polls a month before the election. He spoke with his voters - not at them or down to them. He listened to voters. He asked for their vote, and he made the voters feel like he deserved it. He assured them he wanted to go to Washington to get things done for them, and not to become a part of any political machine at their peril.

I realized the “truck” Obama used in his comment was really a symbol to me - a symbol of all that is the “American Dream” to many. That’s what Americans want – to be financially stable and to have the opportunity to provide for their families with dignity and pride. They want to be able to afford health care for their family and not have to fight with an insurance company for continued coverage if they get sick. But, they don’t want health care reform laden with excessive government intervention and new taxes. They don’t want new taxes levied on everyone except for those that are politically favored because of campaign contributions and lobbyist. They don’t want any bill completely being written behind closed doors and being rubber stamped by party affiliation without being read by Congress. They want to work hard and to pay their fair share of taxes, but they do not want to be penalized by business-killing tax rates and demonizing rhetoric by their own government for being successful through hard work. The majority of successful American business owners and workers are honest and fair - they want this acknowledged. They want those that aren’t to be appropriately prosecuted and companies that aren’t to be allowed to fail.

Both the Republicans and Democrats in government at all levels need to relearn who they work for and reintroduce themselves to the needs and desires of their “people” as represented in “of the people, by the people, and for the people”. Members of Congress also need to reacquaint themselves with who they were meant to be in the American “people” equation.

It would be smart for members of Congress to hold town hall meetings with the goals of listening and learning. (Voters do not want town hall meetings to simply be another opportunity for political spin.) This would allow meaningful representation of their constituents and ensure that members of Congress understand voters are now more independent thinking than partisan. Voters are intelligent. They are more informed and engaged than ever. And, it wouldn’t hurt to give up the limousine and drive to those town hall meetings to meet the voters in a truck.


For more information, please visit Brenda's TNNW Bio.


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