Ask Dr. Christopher "Life After Money: Real Estate and Economics" (page 9 of 12) Part II

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Political Armageddon

Many financial institutions writhed to remove themselves from government control and pay back tarp money in order to avert pay czar Kenneth Feinberg and his Scrooge like impersonations in their dreams. But with the new 2000 page Financial Reform Bill They’re back, and in the persona of, yes Kenneth Feinberg.

We have no idea why when in a day and age the misery index of so many people has rocketed into parabolic reality these persons whether well intentioned or not chose to pay back tarp for the most insane of reasoning: to compensate themselves record bonuses.

We do not believe in centrally controlled economic planning. Marxism is dead although someone should whisper this reality to President Obama.

No amount of Madison Avenue Marketing will change perceptions of the American people regarding those fateful banker paybacks. Do these persons not live among us? If residing behind gated estate communities have they never been to a tractor pull and know that their gates would collapse if tied with any rope to the back of a non descript rusty truck in second gear; their habitual consumption of future garage or art sale inventory becoming community property in about three minutes. We do not advocate civil unrest however we must be ultra sensitive to those around us who have lost everything.

Such imbalances may fuel resentment and open hostility. We are reading the commentary on the Las Vegas Sun message boards; much of it directed at Senate Majority Leader Harry Reid for failed policies in Nevada, The Clark County Commission for running UMC or University Medical Center into the ground on their watch and then wanting to appoint a commission to study conversions, turnarounds, takeovers or takeunders the bloggers suggesting it’s simply a ploy to distance themselves {the commissioners} from their prior malfeasance.

Judges like Donald Mosely and Valorie Vega have come under attack for the perception of wasting taxpayer monies in the execution of their duties. Judge Mosely for his recent reversal by the Nevada Supreme Court of a murder trial when he failed to provide proper jury instructions and inform the impaneled that they could render a guilty verdict to a lesser charge; for this omission of Donald Mosely the Supreme Court awarded the criminal defendant a new trial, meaning mo money please.

Was this the same Judge Mosely who was excoriated by the Los Angeles Times investigative report regarding corruption in the Eight Judicial District or an independent watchdog and forum that rated Clark County Nevada Courts as on of the six worst Judicial Hellholes in the United States? [40]

Prior to the start of evening Mass at the Shrine of the Most Holy Redeemer one Saturday evening we approached our friend Steve Sisolak and congratulated him on winning a seat on the Clark County Commission. We also suggested that with the new economic realities upon us, he would be required to make some excruciatingly painful decisions. The year was 2009

What’s an Attorney General to do?

{Continued from part I Labor Economics}

Kathryn Cortez-Masto the Attorney General of Nevada refused a request by the Governor of Nevada Jim Gibbons to sign on to the Stop Health Plan Lawsuit. She is now caught in a political pincer movement that may end her once high profile career possibly ascending to the Office of Governor, Vice-Presidential candidate and even President.

On one hand she faces the wrath of the Nevada Voters this fall and a once sterling candidate for higher office suddenly looks like an unemployed lawyer. Her loyalty may be repaid but how, with a nomination to the Federal Bench? The line forms to the left.

Her decision to not join the suit may reflect poorly on the future finances of Nevada requiring the state to pony up and pay big to supplement federal cuts through the implementation period of mandatory healthcare forcing an already teetering state into bankruptcy. With the removal of healthcare and employee prescription drug subsidies from the corporate landscape and the previous announcements by Caterpillar taking a $100m charge off and AT&T a $1b charge off what is a state to do? On the other hand Catherine Cortez-Masto must placate party Boss and fossil Harry Reid. Should she break ranks of her lemming and drowning party by gasping for air after the drive over the cliff of the big “D” bus into the deepest fastest current of the murky river.

We can’t emphasize enough to the Katherine Cortez-Masto that although we have great affection for her; when it comes to Obama Care she is on the wrong side of history and will be relegated to oblivion if she doesn’t break ranks with Dirty Harry and support Governor Gibbons in his quest to insulate Nevada from the predatory effects of unfunded mandates insulated in this Marxist garbage masquerading as reform.

We also invite the Attorney General to review her opposition to Yucca Mountain. According to St. Jerome one should not look a gift horse in the mouth.[69] MGM r reported losing $221m {estimate} in Q1 2010 and as the largest employer in Nevada was perilously close {within hours} of filing for bankruptcy on March 30, 2009 for the City Center project. [70]

We watched as the stock prices of MGM and Las Vegas Sands have commenced what may be a final death spiral. Madam Attorney General if gambling is dead or dying and if precious metals like gold roll over what will you do? Many speculators believe gold will decline to $700.00 an ounce as the deflationary cycle matures. It that happens much of the mining activity in Nevada will cease. The people of Nevada always claimed to seek diversity in the economic model but beggars can’t be choosey.

Madam Attorney General, we read your article posted in the Sun: “Time to move past Yucca”. [71] In a few months we may be writing a satirical rebuttal titled: “Time to move past Nevada”

Nevada is the dump state. The question is whether Las Vegas will remain part of a dump state with class and a vibrant economy or just a tumble weed ghost town where tourists arriving in Jeeps tour shuttered casinos the desert sand swirling in drifts atop of inlaid marble and cobblestone brick.

Madam Attorney General you can’t have it both ways. Americans in many other states were promised that you would accept their rusting spent weapons and power plant fuel. That was part of the deal. They faithfully paid good money every year for the privilege!

The fact that Americans continued to frequent Las Vegas and leave penniless after being plied with booze some even forced to return to defend against bad check marker casino magic money never held in reserve but created out of thin air charges. If Americans believe that the fearless leaders of Nevada will not assist in the advancement of proficient Nuclear development but instead embrace the idiocy that 400 dumps are better than 1, then Nevada will surely suffer a slow agonizing painful death of tourism as Americans awaken to the reality that Nevada is for Nevada first; the country can go pound our desert sand.

The unintended consequences of your rigidity include a callous disregard for our armed forces who will constantly be in peril protecting external sources of energy when our pre-emptive national security priority remains energy self sufficiency, including a nearly completed waste repository with or without titanium shields. Maybe The President was on to something when he encouraged the entire country twice to avoid Las Vegas as a travel destination.

Harry supporters Egg on the opposition

We were watching Andrew Breitbart when he traveled to the tea party event in Searchlight Nevada and documented on camera how some alleged union activists affiliated with the Nevada Democratic Party were waving people down the wrong road diverting them from attending the rally and when a tea party bus rolled by they pelted it with eggs. Nice touch Harry! Will you toilet paper Sharon Angle’s home for your October surprise and coup!

Harry Reid controls the keys to the kingdom in Nevada Democratic Political Circles and as Senate Majority Leader with a huge majority, of democratic allies but flagging constituency. Remember Harry was an early advocate of promoting the current President Barack Obama to run for office; We were somewhat mystified that someone of such magnificence would resort to such sophomoric idiocy. We can imagine the call later that evening when Dirty Harry laughed into the phone and replied “You got em good, did you!”

Americans invested their time, energy and money to ride those buses to Searchlight, Nevada. Diverting activists, visitors and tourists from congregating and vandalizing their carriage dates back to your comments and contempt for the average American during the opening of The Capital Visitor Center, completed four years behind schedule and $350m over budget, where you stated “In the summertime, because of the high humidity, and how hot it gets here you could literally smell the tourists coming into the Capital.” [72]

Harry it wasn’t like they stole the school mascot. They were there to see two of our favorite*- Republicans Sharon Angle and Sarah Palin. Although we don’t agree with Governor Palin’s supporting John McSame we appreciate that the power has shifted to the right and she is just helping out an old mate find his moorings when every six years he offers a head fake to the right to snatch enough votes for another victory celebration. Maybe not this year as the Republican electorate can drop a few incumbents for FREE.

In the meantime we need to know, Harry are you losing your grip? We remain in awe that your approval rating hovers around 8%. How did that happen? If your approval rating exploded like the stock market and you gained 100% by election eve you would eclipse 16%. Harry that’s awesomely awesome!

Y.Morality Play

We have heard that each time a homeowner plays jingle mail by walking on their mortgage the neighborhood absorbs the loss depressing the value of the remaining properties. We experienced this first hand through no fault of our own. Was it wrong for us to reside in a home litigated in bankruptcy where the owner refused our rent payments so we experienced the fullness of life rent free for one full year? Was it immoral to return the home to the bank because it is hopelessly under water and the owner was willing to take the hit on their credit rather than to carry a toxic asset or permanent liability? We believe not!

Roger Lowenstein agrees with us but for other reasons. He blames the banks who “rubber stamped the mortgages for homeowners who clearly could not afford a home”. Furthermore in deference to the argument that a homeowner who folds is causing damage to the property values in his neighborhood, Roger replies that corporations close factories and banks walk away from commercial real estate all the time so why should the homeowner be expected to absorb a loss. Americans' changing attitude about mortgages isn't that shocking, Lowenstein adds, considering how the banking industry became just as short-sighted during the boom, habitually offloading mortgages to other investors by packaging them into complex financial instruments. "It can't be that millions of people (Americans) suddenly turned evil or malevolent," Lowenstein says. "It had to be that something was wrong with the system. If you lend people money, they're going to take it." Lowenstein's new book, The End of Wall Street, in fact chronicles the roots of the mortgage bubble, with sharp profiles of the major players including Dick Fuld, Alan Greenspan and Ben Bernanke. [56]

We trusted our insurance companies, banks and the government to do the right next right thing; an assumption that was taken for granted by generations of Americans. Now we must allow the scales to fall from our eyes and take a closer look at every institution including churches, schools and local representatives making our own personal or “informed conscience” decisions and then voting with our feet by remaining in communities and states who have earned our trust or departing to those with a better track record. We recently read the following:

“I am constantly amused by those people who claim there is some vast "conspiracy" in this country when it comes to banks, balance sheets, and fraudulent lending and accounting. There is no conspiracy. It is, in fact, "in your face" fraud.” Karl Denninger [20]

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