Obama now the Trekkie-in-Chief?

He sees himself as Spock according to this.

We may never know if the commander in chief himself agrees with these assessments and views the pointy-eared science officer as a sort of intergalactic role model, but adding to the intrigue is The New York Times, which today asked the real Spock — Leonard Nimoy — for comment:

Q: "President Obama has drawn not-infrequent comparisons to the Spock character. Do you see any similarities there?"

A: "I've met him twice. The first time was a couple years ago, very early on when he had just announced his candidacy. He was in Los Angeles, speaking at a luncheon we were invited to. ... We were standing on the back patio, waiting for him. And he came through the house, saw me and immediately put his hand up in the Vulcan gesture."

Too bad the Trekkie-and-Chief meme falls just short of the mark:

"That's an interesting belt buckle," he said to Michelle, mischievously. She feigned offense and said, "I am interesting, next to you. Surprise, surprise, a blue suit, a white shirt and a tie." Obama grinned and bent down until he was almost at eye level with her waist. He jabbed a playful finger toward her belt buckle, and let loose his inner nerd. "The lithium crystals! Beam me up, Scotty!" Obama squeaked, laughing at his own lame joke as Michelle rolled her eyes.

*In my best Comic Book Shop guy voice* They are called Dilithium crystals not lithium crystals. I'll just chalk it up to"Bush-speak" like when he talked about Profit and Earnings ratios a few months ago.

White House Cuts Loose the New York Flyover culprit

It seems that the incompetent Obama people and the incompetent Bush people (your doing a great job Brownie) are pretty much the same.

Caldera said he didn't know Air Force One would fly at 1,000 feet during the April 27 photo promotion, according to the investigation findings. He also failed to read an e-mail message describing the operation and seemed unaware of the potential for public fear, the findings said.

Yup the guy was out of touch and not reading his email. I wonder if he was involved with giving the Queen of England an IPod or Gordon Brown region specific DVDs?

The Chrysler Bailout Dinner: Funny Stuff.

This is exactly what I was talking about when Obama takes the Al Capone role when it comes to the Chrysler's bankruptcy deal. All TARP fund holders need to look at these two pictures to know what they have in store from the US government:



Followed by:

Why the Chrysler Bailout is only a Union Bailout

I have to agree with the Atlantic when they say that the only reason Chrysler is still allowed to exist is so the UAW can keep their members from losing their jobs.

This question was asked recently by a seasoned political reporter of my acquaintance. Frankly, I hadn't realized that anyone else seriously believed there was any other reason to bail out Chrysler. But let's go through a couple of the other stated rationales, to see why I find them so implausible:

Her rationals are spot on especially if you look over the bankruptcy deal and find that the UAW suddenly owns a controlling share of the company. I have never seen a company delivered to its union in such a way.

You can also see that the secured debt holders, Cerberus, and the American tax payer might eat a 100% loss on the deal as well. In return we get an Italian company trying to sell retooled Fiats to Americans who frankly won't buy them unless gas prices are at $5 a gallon. Even when that happens Toyota will still eat them for lunch and Nissan will lick the plate.

Is GOP Marketing the Problem? I Agree 100%

I have to agree with this post by Leigh Scott saying that the GOP needs a new marketing machine like the Dems had in the last 2 elections.

Did the Democrats put nationalizing the banks, firing corporate CEOs, and practically making out with Hugo Chavez in their trailer? Did their poster include Obama’s embarrassing world apology tour? I think not.

Yeah, most people didn't think Hope and Change meant "I Hope Hugo loves me" and all our kids will be left with is $1.27 in Change after the US defaults on its debt. They need to fix the marketing machine and fast.

I think the main problem with the GOP is letting their critics define them instead of defining their critics. Whenever the left calls any tax cut "a tax cut for the rich" the GOP needs to come back with "The Dems are calling anyone in the lowest tax bracket the rich. Our plan cuts your taxes but the Dems don't want you to have your own money. You earned it and you are hurting. Your kids need that money more then the UAW."

The AIG hysteria should have been framed as people getting death threats for accepting bonuses that the Obama administration and Dodd knew about for months. Why didn't these people block these bonuses or renegotiate these contracts way back when? Who in the administration knew what and when? Make the Obama people the villain and not the AIG employee trying to unwind the mess that other people created.

This Chrysler mess needs to be portrayed as a Union bailout and not "saving a car company." The Obama people instead bullied hedge funds who have legal obligations to pension plans and investors to recover as much money as they can from a bankrupt company. An American company was basically sold off to a workers union, an Italian car company, and the Canadian Government while the tax payer is on the hook for billions in losses. The GOP should be calling for the Car Czar's head to roll instead of soul searching and navel gazing.

Amazon's New Kindle the Newspaper Savior?

Hmm, it sure makes some serious sense that the new "Big Kindle" aka the Kindle DX might be able to save millions of dollars for the newspaper industry.

"Newspapers have been an absolute bestseller on Kindle," Bezos said. "People love waking up in the morning to find that their New York Times, their Washington Post, their Wall Street Journal have been 'automagically' delivered overnight. They like the fact that when they travel their subscription follows them around."

The idea of the Wall Street Journal delivered to a mobile device instead of having to be printed on a piece of paper does sound like a game changer. Suddenly the newspaper company can close all of their massive printing presses, get rid of their trucks, and a lay off all their newsboys. You can just pay for a Kindle subscription and cut out all of the middle man.

The newspaper industry might even be able to buff up their staff because content will be the great differentiator and not manufacturing costs. They might even be similar to software companies with their fat margins since most of the newspaper companys' expensive overhead can be stripped away.

Of course Amazon might be able to get a cut of each paper downloaded as well as selling the device. The only thing they need to do is drop the price to something a bit more reasonable. I think $500 for an e-reader is just too much but $200 sounds just about right. In any case I think Amazon might be on the cusp of a truly Apple-like spurt of growth as the Kindle gets more and more ubiquitous.

Is Obama Now the Tax Raider-in-Chief?

Another day another bungled plan that will do more harm then good.

In promoting its new global tax raid, the White House fingered the Netherlands, which it lumped with Ireland and Bermuda as "small, low-tax countries" that supposedly account for an outsize share of reported foreign profits of U.S. firms. The Dutch corporate tax rate is 25.5% -- which isn't even all that low by current European standards. And the U.S. is the largest foreign investor in that "small, low-tax country," according to the Dutch Embassy. Perhaps reducing American investment there and slamming the Netherlands as a tax haven is Mr. Obama's way of reaching out to friends and allies.

But the Netherlands won't be the only country hurt. The explicit goal of this plan is to reduce the incentive for U.S. companies to invest abroad, which Mr. Obama derisively calls "shipping jobs overseas." Foreign companies may relish the loss of U.S. corporate competitiveness that his proposal will bring in the short term. But in the long term, reducing U.S. investment globally will hurt everyone. And that investment is a two-way street -- the Netherlands is also the fourth-largest foreign investor in the U.S.

Ending the foreign tax deferral plan in place is a dagger aimed at the heart of US tech companies. Some of these companies make more then half of their revenues outside of the US. So if they were taxed on that outrageous US tax rate of 39% then suddenly Ireland and their 12% tax rate looks like a great place to move to.

So you might just see quite a few Silicon Valley jobs move right out of the US. So this plan is basically antigrowth, will destroy jobs and, might not even get as money in taxes as they expect.

But even as a revenue raiser, this is likely to fail. Fewer companies will keep their headquarters in the U.S., especially small or mid-sized firms that can slip away without becoming a political target. Those companies that can't flee will sooner or later demand relief from Congress, which will be happy to create even more loopholes.

My guess is that California liberals will fight this measure tooth-and-nail on behalf of their tech constituencies like Google, HP, Amazon, and Dell. There is absolutely 0% chance that this will even get out of committee let alone be put up to vote.

Obama Proposes Budget Cut of One Half of One Percent

It seems that Obama wants to be knows as some kind of budget cutter by proposing to slash a whopping $17 billion from the $3.6 trillion budget.

Compared with the total $3.6 trillion spending plan for 2010, the proposed trims amount to one-half of 1%. Half the cuts would come from defense, especially Pentagon weapons programs already spelled out by Defense Secretary Robert Gates, such as trimming back the fleet of advanced F-22 fighter planes. The other half would come from programs that have strong support among progressive activists who cheered Mr. Obama's election. Programs targeted for elimination or consolidation include education and housing programs that Democratic aides said will have fierce advocates among traditionally Democratic constituencies.

It should have been $170 billion worth of cuts instead of only $17 billion. As it is now this amounts to just a pittance that allows him to pay lip service to cutting his own budget. Maybe he can cut out some of those placeholders and down payments from that budget so he can make some real headway.

Cisco Beats on Revenue and Earnings

I think the drop off in computer spending is not as bad as some analysts feared. At least routers and switches still seem kind of popular. Also Cisco was able to cut costs to $3.6 billion from $4.1 billion which means they are cutting some of the fat of previous years.

The computer networking giant said it earned 30 cents a share in its fiscal third quarter, compared with a per-share profit of 38 cents a share in the same period last year.

Analsyts polled by Thomson Reuters predicted that Cisco would earn 25 cents a share in the last quarter on sales of $8.072 billion, on average.

Revenue in the most recent quarter reached $8.16 billion for Cisco, against $9.791 billion last year.

Obama went "Al Capone" on Chrysler's Senior Debtholders?"

The reports are coming in fast and furious of Obama attempting to strong-arm the senior creditors in the Chrysler deal.

Although the focus has so been on allegations that the White House threatened Perella Weinberg, sources familiar with the matter say that other firms felt they were threatened as well. None of the sources would agree to speak except on the condition of anonymity, citing fear of political repercussions.

Now this part should scare anyone dealing with the White House in the future.

One participant in negotiations said that the administration's tactic was to present what one described as a "madman theory of the presidency" in which the President is someone to be feared because he was willing to do anything to get his way. The person said this threat was taken very seriously by his firm.

I guess that is the Chicago way to either act like an organized crime figure or a 5 year old kid. Forget upholding the constitution or the rule of law that secured creditors get their money back before any unsecured creditors. Barack "the Godfather" Obama gets what he wants or he will destroy you!

I can just picture Obama dressed in a white suit with dark glasses and a big stogie like Al Capone in the Untouchables. I guess Perella Weinberg gets to be that guy that gets hit in the head with a baseball bat. This also sets a terrible precedent for any future dealing with the White House:

Imagine telling your bank that you’ve decided to pay off your mortgage in full, but you’re only going to give them 35 cents on the dollar, take it or leave it. Then when they protest, you lose patience, walk out of the room, and go on national television to say that your bank is a bad actor, they’ve exhausted your patience, and now they’ll have to settle for a big fat zero. And by the way, maybe the White House press corps will start spreading nasty rumors about them.

The bad part is the hedge funds would have taken 50 cents on the dollar if Obama didn't go all Capone on them and storm out of the room. This should tell you in no uncertain terms that any company that has TARP funds is now subject to a Bully Pulpit that will actually bully you.

If You Are a Lawyer Do Not Consult with the Government

It seems that the lawyers that okayed the harsh interrogation orders are going to be made the scapegoats according to the Justice Department.

Officials conducting the internal Justice Department inquiry into the lawyers who wrote those memos have recommended referring two of the three lawyers — John Yoo and Jay Bybee — to state bar associations for possible disciplinary action, according to a person familiar with the inquiry. The person, who spoke on condition of anonymity, was not authorized to discuss the inquiry.

I'm not sure why the third lawyer is exempt from the witch hunt but I guess he didn't play such an important role. In any case if this should tell all lawyers that if the Justice Department wants you to draft up some legal memos then you better say "well I'm pretty swamped, I just can't do it." After all it could get your disbarred by a future administration looking to take a few heads.

Pakistan Enters a Critical Phase: Will Now Battle the Taliban

Well, the Taliban is now on the move because fhe truce has broken down between themselves and the government.

The collapse of a 3-month-old truce with the Taliban means Pakistan will now have to fight to regain control of the Swat Valley, testing the ability of its stretched military and the resolve of civilian leaders who until recently were insisting the insurgents could be partners in peace. The government feared the refugee exodus could reach 500,000.

Now we will see if the Pakistan's government will hold up or not. My money is on a military coup d'état in the next few weeks unless they are able to smash the Taliban quickly. If they run into any heavy resistance there will be a vote of no confidence followed by marital law. The part I fear though is that the Taliban will seize missile silos in the confusion. That will end any land battle in one fell swoop.

Did Obama Violate the Constitution in His Chrysler bankruptcy Bid?

It seems he might have run afoul of the 5th Amendment and Thomas Lauria is going to take him to task on behalf of the hedge funds.

Thomas Lauria, who accused the White House of threatening the creditors withn humiliation at the hands of the White House press corps, has filed a motion to halt the administration’s machinations on behalf of the UAW in the Chrysler bankruptcy. Lauria and his allies claim that the Obama administration has violated the Constitution in their bid to devalue the senior creditors’ holdings on behalf of junior creditors, and have some precedent to support the allegation.

The go on to site the case of Louisville Joint Stock Land Bank v. Radford, 295 U.S. 555, 594 (1935) in their bid against the Treasury. Also, we get another charge of death threats over not agreeing with Obama. It's AIG all over again where the White House bullies people out of contractual obligations through the use of "naming names."

Chinese Stimulus Plan Actually Creating More Jobs then Ours?

It sure seems so according to this article.

I'd rather see money going to programs like the Chinese government's stimulus plan which, in part, gave $2.9 billion for a 13 percent purchase price subsidy on Liquid Crystal Display (LCD) TVs for its rural citizens -- which as I discussed on MarketPlace this week -- boosted demand enough to force Corning (GLW) to hire back 100 of the North Carolina LCD plant workers it had laid off.

We should have just gave the Chinese that $787 billion and had them think up ways of creating more jobs for Americans. The more I look at things the more I think that China is the new America. While the Red Dragon rises in the East the Socialist Eagle set in the west.

Obama Attempts to Close Tax Loopholes

I think there may be quite a bit of pushback on this issue from business groups.

The president said he wants to prevent U.S. companies from deferring tax payments by keeping profits in foreign countries rather than recording them at home and called for more transparency in bank accounts that Americans hold in notorious tax havens like the Cayman Islands.

I think this will be yet another thing that makes more US companies re-domicile in Switzerland or wherever. The more you tax these companies the better the cost-benefit analysis of moving your company headquarters looks. Too bad for the states that used to house these corporations because they will eventually need a bailout from all those lost state taxes.

Why China Does Not Want to See Pakistan Fail

The thing I love about the Internet is that there is potential for learning something new everyday. Like many Americans I am not a foreign policy newbie so this came as kind of a surprise to know that the Red Chinese have real stake in preventing a failed Pakistan.

China has invested heavily in the strategically important deep sea port of Gwadar in the Pakistani province of Baluchistan, which borders Afghanistan's unstable southeast. The port lies some 400 kilometres east of the Strait of Hormuz, through which 60 per cent of China's oil imports travel. It also provides China with a forward operating base from which to better project its naval power and ensure the safe passage of its seaborne energy shipments. A new rail line linking the Aynak copper mine with Gwadar is being considered, as is another linking Gwadar with China's western line in Xinjiang province.

The Aynak copper mine in Afghanistan is the largest untapped copper mine in the world and the Chinese have a claim on it. As most people know the Chinese are the biggest user of copper in the world so a stable Afghanistan is now very important to their interests.

Also a stable Pakistan would allow the Chinese to build that railroad that links Gwadar and China unmolested by militants nutjobs or failing governments. This railroad would save the Chinese billions in shipping costs because it would be so easy to move that Middle Eastern oil out to Gwadar and then stick it on a train destined for south west China instead of going all the way around.

Also the idea that the Chinese would have a blue water port right near the Persian Gulf should be an important strategic consideration as well. The Chinese could probably get a naval port out of any long term Pakistan/China military pact.

The Chinese could then use this port to watch their shipping and project their power into this volatile region to check American dominance there. They could even put military pressure on Iran if they threatened to close the Strait of Hormuz for whatever reason. I really marvel at how well the Red Chinese play the Great Game.

The 50 Tools You Should Own

This is an interesting list of different tools you should own if you want to be a DIYer.

Man is “weak in himself, and of small stature,” wrote 19th-century essayist Thomas Carlyle. Yet, with tools, “the granite mountain melts into light dust before him, seas are his smooth highway, winds and fire his un­wearying steeds.” And this from a guy who never felt a 5800-rpm circular saw scream to life in his hand.

While much has changed since Carlyle’s day, one thing hasn’t: We need tools to build, repair and maintain the mechanical world in which we live. With these 50 tools, you’ll be ready for just about any project—whether it’s melting mountains or swapping out the kitchen sink.

Obama Is Not FDR but Ulysses S. Grant?

At least US News and World Report thinks so.

If anything, the financiers are more solidly in charge now than they were during George W. Bush's presidency, when the New York Times declared that "Government Sachs" was a reality. Today, such figures as Timothy Geithner, Lawrence Summers, and Steven Rattner are accelerating the Bush era's finance-favorable policies, piling bailout on top of bailout. Even nonfinancial policies are being drafted to serve Wall Street; the "cap-and-trade" greenhouse gas proposal, for example, would do more to boost the bottom line of neo-Enronesque pollution mongers than to reduce carbon dioxide.

Auto Sales at 30 Year Low

I guess people just like to drive their old cars rather then have to buy a new one.

Japan's Toyota Motor Corp posted the largest sales drop at 42 percent among major automakers in the U.S. market, followed by Nissan Motor Co Ltd at 38 percent.

Sales at U.S. automaker Ford Motor Co slid almost 32 percent last month, while sales General Motors Corp, which like Chrysler has been operating under federal supervision, fell 34 percent.

Honda Motor Co's sales were off 25 percent.

I think this may be a case of Japanese cars running too well. It is much easier to keep a Honda or a Toyota running for years then it is an American car. They break down less so it is easier to stretch them out for years instead of buying a new one. Plus I have to say there isn't very much difference between a 2003 Toyota Corolla and a 2009 Toyota Corolla.

Obama's Tax Credit Might Have to be Returned by Retirees and Families

Obama giveth but the IRS taketh away. It seems the "making work pay" tax cut for 95% of Americans might have to be returned by quite of those Americans.

It will come as a shock to two income families, some federal workers, retirees, and young people with more than one low paying job that they will be expected to give back some portion of that “extra” money that Obama claimed he was giving them come April 15, 2010.

So the people hit will be two income families where both spouses work. Which makes up just about 55% of all married couples. Also if you have two low paying jobs or are a teenager that is claimed on your parents taxes then you have to pay. So that hits most of the people that would actually benefit the most from an extra $400. It also hits about 20 million retirees as well:

Retirees who have federal income taxes withheld from pension benefits also are getting an income boost as a result of the new withholding tables. However, pension benefits are not earned income, so they don’t qualify for the tax credit. That money will have to paid back next year when tax returns are filed.