The economy is bad all over. Just ask Stephan Baldwin

Hollywood entertainers never get a break. Seriously, we never really feel bad for any of them. They make tons of money (literally), travel across the globe, date and marry people we wish we could (why Janet Jackson picked DeBarge over me I will never understand), and don't really work that hard (as compared to a construction worker for example). So I can understand how generally people never feel bad for them.

Add to this the fact that more than a few entertainers are more of a problem for themselves than anything else. Chris Brown is a coward that beats up on women, Amy Winehouse is the most successful crackhead (reportedly) in history, Michael Vick loves dogfights, virtually every rapper just can't stay away from drug and/or guns, and on and on.

But sometimes we have to recall they are just regular people. And like regular people they have problems like us all. Especially with this economy.

Stephen Baldwin happens to fall into that last bit. He's a fair actor, makes a couple million a film, and generally seems to be a decent person. But all his fame, that of his family, and his career are not enough to overcome the current economy. Just like you and me, he is in financial trouble.

He just declared bankruptcy, to the tune of $2.3 million. Ok so he is not quite like you and me. But the mortgage crisis is still claiming victims. He owes the money on a house that is now valued at $1.1 million. And somehow I don't think he had a sub-prime mortgage.

I'm sure he will be ok. I doubt that he will be homeless. Considering that he let a homeless guy live on one of his properties just to be nice to the guy - who repaid that kindness by selling heroin and getting arrested - I think that the scales of fate will work out in his favor. It doesn't hurt that his family are all pretty secure in the entertainment business too.

Still I suppose this post was just a random rambling about the fact that 1) sometimes we need to remember that entertainers are just like us (with lots more money and the complications it brings) and 2) that the economy is far worse than the Obama Administration has led us to believe.

Not my best post ever, but just something to think about.

Interview with Andrew Cockburn of American Casino - Tribeca Film Festival

The following interview was taken at the Direct TV Tribeca Press Center, on April 27th during the 2009 Tribeca Film Festival.

The interview is with Andrew Cockburn, producer of the independent documentary American Casino. The film is about the mortgage crisis, the people affected, and some of it's causes. The documentary takes place from January 2008 and follows the mortgage crisis through the year. It is a film I have seen and recommend to all my readers. A review of the film is forthcoming.





I hope you enjoy the interview as much as I did speaking with Andrew.

Jon Stewart vs. Jim Cramer: really missing the point

So Jon Stewart took on Jim Cramer tonight. It was a beat down. It was vicious. It was obvious that Stewart had an ax to grind. And it was wrong on many points, yet true to the feelings of many.

As a former stockbroker I have had many discussions with people about the markets. I’ve written many things about the economy. And from time to time I have noted points in agreement and disagreement with Jim Cramer. But to attack him, and/or CNBC, as if they were the cause of the current economic crisis is both a fallacy and an attempt to find a scapegoat.

To be fair CNBC and Cramer failed in their mission to inform the public. Then again, neither ever truly were supposed to do that. Anyone thinking that either was more than an educated high-brow entertainment probably was sniffing glue (or some other like substance) and likely thought they would be made a millionaire by buying internet stocks they never heard of, or knew what they did, during the late 1990’s.

Is the market a fixed game? No. Is there an unfair advantage for large corporations and wealthy individuals? Absolutely. And are the major brokerage firms the biggest crooks in the industry? I’ve always believed so. Yet not one part of this, or what Stewart was railing about, is any different than it was 50 years ago for the most part.

What has changed is the greed and work done by small investors. If there is anyone to be upset with, it has to be that.

Jon Stewart will without doubt gain huge ratings. Jim Cramer may be looked at with harsh eyes in the near future. And CNBC will get the branding of slipshod reporting that they deserve. But it really doesn’t matter.

I don’t care how many regulations are created to prevent another Bernie Maddoff, or Enron, or Tyco, or AIG, and on an on. Given time there will be another scandal. And another ridiculous bubble in some sector of investing, with a crash that has to happen as well. Because the greed of everyone, at each level of the game, necessitates it.

I listened tonight as Stewart and Cramer went back and forth saying ‘You seemed to know’, ‘Did you know’, ‘Why weren’t we told’, ‘I was lied to’, and so on. Its wonderful posturing, but you don’t need to be an economist to have seen what was happening. Without following more than the politics of the day, occasional glances at the Dow Jones Index, and reading bits of news over the internet I foresaw the problems of the mortgage crisis. It was blatant, and there was plenty of time to act before the hammers started falling. And while I’m smart, I’m not so smart as to have been the only one to recognize what was going to happen.

Don’t believe me? Check out what I wrote back in October 2006

“The economy is better, things have improved. Barring events like 9/11, or Enron, the markets will continue to grow. But hype will never help mom & pop investors. It does help some institutions though, like LEH which was 15.68 around Feb 14, 2000 and continued HIGHER to 78.70 on Oct 16, 2006.

Just keep this stuff in mind as you watch the talking heads spout how great things are in the market. Or you see that ad saying that you should invest on your own.”

or on December 2007

“The fact that the mortgage crisis is far closer to its beginning than end. I expect that there are far more homes in danger than has been seen to date. Even with the highly selective mortgage bailout stated by President Bush, many are going to be at risk. Credit card debt can only float for so long. With the added pressure of oil at or above $100 per barrel, which I expect mid-January as I stated above, more will fail even if rates are lowered (less than 2 points).”

or even January 2008

“Those that are in trouble, or will be, with their mortgages will not be helped by lower rates as that will not cap increased heating and gasoline prices. Small businesses are not going to be able to get new loans as easily even with lower rates as financials scramble to find cash to absorb the losses they are experiencing. Effectively some degree of pain must happen and is not preventable.

I say all this for one reason. So that you my readers can be prepared. If I am correct even in part, then this nation will encounter times we have not seen for quite a while. I doubt that we will see the inflation and unemployment that existed in the 1970’s (when I was a child) but I am sure that we will see levels that those under 30 have never experienced.”

My point is that the current crisis was very visible, if anyone was not bothering to be distracted by hype from the likes of Representative Barney Frank and other Government “watchdogs”, or being entertained by CNBC. All you had to do was read and do the math. Investments are no different than your home, if you don’t keep up with it then don’t be surprised if it falls apart one day.

But there has to be a bad guy. In America we are conditioned to look out for someone in a black hat if something goes wrong. And today that guy gets to be Jim Cramer with Jon Stewart as our hero. Bull.

The bad guy is in equal parts the Government, for creating an environment over a decade ago that was little better than a Ponzi scheme. Then there are the corporations, that jumped in on the game looking to ride the wave for as much short-term profit as possible. Add to this mix speculators who looked for ever faster gains with commensurate risk. Throw in cable networks whose goal is ratings above reporting, and then put in a public that didn’t care as long as the paper investments looked better than the Jones’ 15 minutes ago.

And this complete recipe is virtually exactly what happened with the internet bubble, except this one was bigger and not quite as exhuberant. No one learned then, because no one cared. All that mattered was the immediate gratification being reported on our instantaneous communication devices. But the risk of instant gain is the environment we find ourselves in today.

It will happen again. No matter the regulations – because most of the factors that caused this meltdown were all legal if not bad business decisions which can’t be regulated. No matter the protests of Government – because their lack of understanding (or overall disdain) feeds these kinds of bubbles and crashes. Without regard to who reports what facts in whatever manner – because most don’t care or bother to pay attention to the details anyway. No matter the pain for the public – because everyone wants to be a millionaire tomorrow without doing the work required, and many believe they deserve such rewards just because they breathe air in America.

So the indignation of Jon Stewart amuses me. Yes, Cramer and CNBC could have done a better job of reporting. Yes, Congress could have done a far better job of enacting realistic regulations and understanding how those regulations are affecting the market. And a big YES, the public could have paid attention to the facts at hand and did some math. But none of them did these things. Nor do I believe they ever will, to any large or useful degree.

So I won’t score the big points with the blogosphere with this post. My past comments about the economy and markets went without much fanfare as well. Such is the fate of being right consistently. But let me ask you this…

Do you really want to feel smug and righteous because some comedian beat up on a quasi-entertainer/commentator, while politicians throw your future earnings down a drain and your retirement funds evaporate?

Do you know what the Government is doing with trillions of dollars, and how that will affect investments today and in 5 years – with even a slight bit of educated estimates?

Do you get to save your house, or retire, or pay for whatever any easier because a liberal leaning comdey show host got serious for a minute while you still don’t know how to read a corporate 10Q, understand why a second stimulus plan is already being worked out and how badly that will affect your savings and jobs, and re-elect Congressional leaders that can’t figure out their responsibilities even after 20+ years on the job?

I’m sure that many of my long-time readers do get all these things. Perhaps even more than a few of my first-time readers will. But for those that don’t, ignore the hype this one program will raise and start paying attention. Your money will depend on it.

I will now go back to the entertainment news Black Entertainment USA is normally dedicated to.

List of 25 thoughts on 2008 in review

In a year where the general mantra was change, 2008 lived up to the hype. Yes it's time to look back at the year and reflect on what surprised us, amazed us, disappointed, and angered. Here are some of the best and worst that I have noted about the year.

1. Senator Obama wins the Presidency - After facing rampant rumors and internet smear emails about his race, religion and plans for the nation, not to mention direct insults and racial attacks from the campaign of his now proposed Secretary of State, Senator Obama defied all the pundits and pollsters. With almost 10% of the nation admitting they would never vote for a Presidential candidate that was not White, and a mere 40 years after the Civil Rights Movement, Senator Obama broke through one of the highest and hardest glass ceilings in the nation. Many never expected to see the day a Black man became President. Nothing else could take first place in this year.

2. Amy Winehouse - She is still alive. I am incredibly amazed. She has been in more rehab and hospitals than Britney Spears, and that says a lot this year. I am sure there were odds in Vegas running almost 50/50 on her dying this year. It is merely the miracle of the human body in youth that seems to keep her going, not that she isn't pushing the limits.

3. The mortgage crisis - It started the year depressing the financial industry, raising up gold and commodities, and took out Bear Stearns. This of course gave us the quick action of Treasury Secretary Paulson, Barney Frank, and Fed chairman Bernanke. Thus it got much worse. As oil peaked at $160/barrel, gold topped $1100, mortgage foreclosures hit all-time highs, and home prices dropped across the nation the overseers just mentioned promised more action and the security of our institutions. Then Freddie Mac and Fannie Mac failed on cue. And as the scramble to fix the fix became more important it became an election issue. But not before we were told the sky was about to fall; it didn't but the stock market did. This then became...

4. The credit crisis - Money for everyone got scarce. New home purchases bogged down as banks said no to even highly qualified borrowers. Big businesses couldn't get loans, including Mc Donald's. The stock market continued down in a crash not seen in 2 generations. Banks failed at an unprecedented rate, brokerages became banks to get in on a bailout that HAD to happen. And the Government scooped up positions in private business, for our good, as they poured a trillion dollars into the economy. Which still has not stopped the overall downturn in the economy.

5. Heath Ledger, Bernie Mac, Isaac Hayes, Buddy Dial, Jerry Groom, Janet Kagan, John Bliss, Julian Rathbone, Mike Smith, William F. Buckley, Jr., David Edwards, Buddy Miles, Genoa Keawe, Larry Norman, Richard Baer, Eagle Day, Dennis Letts, Stephen Marlowe, Steve Whitaker, Ben Chapman, Robin Moore, Bobby Lee Trammell, Jim Jones, Benigno G. Tabora, Jerry Karl, Bobby Lord, Johnny Weaver, Thurlow Cooper, Perry Lopez, Lionel Mark Smith, Roger Voisin, John Brunious, Preston Hanson, Freddie Bell, Steve Gerber, Roy Scheider, Robert DoQui, John Alvin, John Grimsley, Schoolboy Cleve, Kenny Konz, Winston Walls, Ken Hunt, Christopher Allport, Lance Clemons, Suzanne Pleshette, Bobby Fischer, Ernie Holmes, Allan Melvin, Brad Renfro, Johnny Grant, Brandi Borr, O.G. Style, Sean Levert, Heath Benedict, Chalmers Alford, Richard Widmark, Al Hofmann, Wayne Davis, G. David Low, Martin Fierro, Rafael Tufiño, Chuck Day, Gary Gygax, Ivan Caesar, Will Robinson, Paul Davis, Al Wilson, Orish Grinstead, VL Mike, John Marzano, Danny Federici, Sean Costello, Stanley Kamel, James Barrier, Gib Shanley, Charlton Heston, Ray Poole, Harvey Korman, Sydney Pollack, Tom McHale, Mitch Mullany, Camu Tao, Dick Martin, Michelle Meldrum, Zelma Henderson, Lloyd Moore, John Phillip Law, Heather Stohler, Dick Sutcliffe, Curtis Whitley, Eddy Arnold, Mildred Loving, Jim Hager, Don S. Davis, Dave Carpenter, Charles Dryden, John Furlong, George Carlin, Scott Kalitta, Mel Agee, Johnathan Goddard, Stan Winston, Mitch Frerotte, Jim McKay, Robert J. Anderson, Bo Diddley, Mel Ferrer, Luther Davis, Bruce Adler, Michael J. Daly, Joe Beck, Estelle Getty, Anastasia Blue, Paul Sorensen, Sherman Maxwell, Luke Kruytbosch, Bobby Murcer, Terrence Kiel, Larry Harmon, Phil Hill, Ed Vega, Kevin Duckworth, Steve Foley, Frank Cornish, Jeff MacKay, Jerry Finn, Julius Carry, LeRoi Moore, Pervis Jackson, Jack Kamen, Gary Mooney, Fujio Akatsuka, Paul Newman, Nappy Brown, Norman Whitfield, Joan Winston, Joey Giardello, Bill Meléndez, John Ripley, Estelle Reiner, Merl Saunders, Richard Blackwell, Dave McKenna, Chris Mims, Kevin Foster, Gidget Gein, DeWayne McKinney, Johnny "J", Robert Arthur, Doris Dungey, Derek Scott, MC Breed, Abraham Woods, Michael Crichton, Chris Thurston, Nathaniel Mayer, Tiffany Sloan, Shakir Stewart, Paul Benedict, Donna Stewart-Hardaway, Steve Bradley, Jimmy Anderson.

All passed away in 2008. Only Heath Ledger has been spoken about in any lasting and referential way.

6. The Shield ended is run on cable television. And so has The Riches in a move of network television cowardice (in my opinion). Leaving a serious void of realistic and/or quality programming.

7. American Idol continues to be on television. Creating a lasting void in the minds of viewers.

8. Top movies of the year starts with Batman: The Dark Knight. Which proves that hype and bad writing can make money. This is followed by Iron Man (a massively better movie), Indiana Jones 4, Hancock, Wall-E, Kung Fu Panda, Madagascar 2, Horton Hears a Who, Sex in the City, and Quantum of Solace.

Considering the top 10 grossing films, you would think the nation loves kid films that are animated or movies based on long-running comic book characters. The exception being sluts and a guy with an accent and lots of violence. And you would be right.

9. The continuous flood of television shows that were successful (and better) on the BBC, that have now been Americanized and appear on U.S. channels (notably NBC). Generally these converted shows fail within a few episodes.

10. The massive blogosphere controversy over Ben Stiller's film Tropic Thunder failed to ignite onto the streets when the film came out in theaters. This is likely due to the failure of the film as anything watchable. But the controversy continues to this day.

11. The massive number of films that are 'revisioned' copies of comic books, television shows, and books astounds the mind. 70 % of the top 10 movies are either a sequel, comic book conversion, television show and/or a combination of these. The sheer number of copies for the entire year is to high to count, especially if you add in video game conversions to the mix. Witting in Hollywood seems to be completely dead.

12. The absolute joy of the media and many White Americans at the thought, and then celebration of the OJ Simpson Las Vegas trial and conviction. Never mind the dubious nature of how the crime was setup, nor the quirky way the trial went. It could only be justice if OJ went to jail for a long time, which was a given the day he was arrested. Not to mention the guy where justice just evaporated and the media just passed it over.

13. The unmitigated bias and propaganda of the news media in promoting President-elect Obama throughout the election cycle. Never before has the media so blatantly given up its obligation to provide the truth without bias to the public. It wasn't yellow journalism, but it wasn't beneficial either.

14. The amazement of how the media continues to depict video games as inciting violence in children, while playing down events like the collapse of a boy because his father could not bother to check in on him for 20 hours. It's not the games any more than it's music or movies or cartoons. It's the lack of parents doing their jobs.

15. The belief of some that racism has ended because President-elect Obama won. This flies in the face of police actions this year, stereotypes in the media, events in the nation, and long-held views that were reflected in polls. Or did we forget Lindsey Lohan already (which is understandable).

16. Guns n' Roses Chinese Democracy finally made it out to fans. Considering it took well over a decade to get done you might have expected it to be a masterpiece - it isn't. Still it did get it's share of media attention mostly due to Dr. Pepper.

17. Hanoi Jane Fonda announced she is again trying to forget what she did in the past.

18. Even amid all the economic chaos many continued to make charitable donations. Some from the most unexpected sources. And sometimes the media just wants to throw garbage at such actions. Still giving is a great thing and especially in these difficult times.

19. Internet scams continue to be on the internet, and many are gaining steam. From fake IRS stimulus checks to going after the grandparents little is left to chance. Considering the information on the net you would expect these frauds to fail completely. Yet they are still out their. And more than a few are snake oil salesmen that do to well with incredible claims that only harm those they claim to help.

20. We all continue to remember Sept 11, 2001. And I hope we never forget or diminish what happened that day. Or how we came together as a nation in the weeks afterward.

21. The Olympics were a time of great unity in the world. And at the same time some nation chose this moment to show how backwards they can still be in the 21st century.

22. And the media continued to seek out ways to portray African Americans as poorly as possible. While at the same time ignoring the obvious racially motivated actions of institutions against Blacks.

23. Several black celebrities were able to get some extra media this year though. Some were for accidents that occurred (and the media sought to mine controversy out of tragedy). Some were for their rising stars as they continued to gain acclaim they deserved. And a few were just selling out just a bit more before their media inspired hype ends.

24. We had a moment where the Government almost did something important. But instead settled for something notable and that went unreported. Because how important could an apology for slavery really be? Besides important enough that no one wanted their names on it, yea or nea.

25. There were many cotroversies throughout the year. Some for silly items and some were quite serious.

26. And along the way some learned a few new things about this nation that they never knew before.

These are just some of the things in the year that I noticed. I am sure I missed a few things, or had an interpertation some disagreed with. There were events I didn't mention, or didn't convey in this list. And I really haven't mentioned one thing that I find personally quite important.

One of the most important things in 2008 was the continued and growing attention you my visitors have provided to my blogs and sites. Without the attention and input from all your voices in over 125 nations each month, I would be working in vain. And for that I want to thank you.

I continue my promise to let you know my thoughts on issues and events that I believe are important, and sometimes just silly, that catch my eye. I will work hard to respond to each comment and email that comes from you. I will endeavour to provide the quality of writing and attention to detail you have come to expect.

2008 has been a good year for the growth of my blogs and sites, but I realize that it only happens because of you.

So I end this review of 2008 with this thought. No matter the economic environment, the events of the day, we all can achieve success if we work hard and maintain a high level of quality. You have proven that for me, and if I can do it I am sure you my readers can do even more.

Which is right - keep campaigning or fixing the economy?

This is a repost from my political blog, VASS, but I think it's an important question.

So the news has now been reported that Senator Obama does not plan to accept Senator McCain’s offer to go back to D.C. and work on the bailout.

Senator Obama believes that he can both work out the problems with the bailout and step before the nation for a debate on Friday. He believes that he can focus on both issues equally.

Senator McCain has already stated that he believes that the political debate can wait until the financial future of America is resolved.

I feel that Obama is placing politics above the nation, and his constituents that elected him to office. Both of these men are Senators, as is Joe Biden. They have a responsibility to the voters that put them in office up until they are elected by voters for a different office.

The polispeak will fly today. Some will laud one or the other Presidential candidate. I can clearly see the benefit to the nation of the actions of McCain, I do not see that benefit from Senator Obama. Obama is choosing to hold a speech about how great he will be for the economy once he is elected, while McCain will be speaking with Democrats, Republicans, and the President about keeping the economy going up to and through the election. Which makes more sense.

How well will Senator Obama be able to review documents on the bailout, and shake hands with undecided voters? How well will he be able to speak with Congress, while he is kissing babies and approving attack ads? How well will he be able to confer with economic experts while he is practicing his debate points.

Yes a President must do more than one thing at a time. But if Warren Buffett is correct, and this is the financial equivalent of Pearl Harbor, Senator Obama is saying he would rather go overseas for a meeting than deal directly with the situation.

Was the fear of following McCain’s lead on this potentially devastating financial fiasco so great as to refuse to do his job. Is his desire to be President so great that he would rather lead America in a depression, with millions unemployed and/or homeless than serve as the Senator he has been elected to be in relative economic stability?

Perhaps this, more than the debates themselves, will be the turning point in the election. And I have to wonder what most Americans will prefer. I for one agree that the debates for the election (which can be rescheduled for another day out of the 41 remaining) are not as important as my work, and as a consequence my house.