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Outsider Views - by Mike Pouraryan

 
We are living in an ever-changing world which continues to be as fascinating as ever. This is the forum for me to report, to comment and to reflect. Thank you for visiting my forum and your support of this lifelong project. Politics Blog Directory

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What an Interesting Day.....

: Interesting Times....
I just saw reports coming in that Ted Stevens has lost his bid for reelection to the U.S. Senate. This means that the Democrats are two seats closer to the magic 60 mark. Beyond that, the Democrats in the U.S. Senate resolved to keep Joe Lieberman as Chair of the Homeland Security Committee. Joe Lieberman owes his chairmanship to Barack Obama. He knows it too. This means that the Democrats are just two shy of the magic number of 60. I hope that the Democrats use this power wisely and judiciously. The perils are too great and the challenges immense to conduct business as usual.


On a another note, I am also seeing reports that Eric Holder is to be appointed Attorney General. I saw some analysts questioning his appointment. I think Mr. Obama is to be trusted on this one. He was part of the team that vetted the VP pick that resulted in Joe Biden. As for the stuff coming through about Obama "struggling" with lobbbyists, my reaction to that is simply this: whatever!!! From what I have seen so far, he has not missed a beat. All his Senior Staff Appointments are veterans who understand government. The time is now to execute, though. Blood is flowing everywhere with no end in sight.
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Our Economic Tsunami: Citi, The Auto Industry & The Future

: When will this end?
What a way to start a Monday!!! On Monday, Citigroup CEO Vikram Pandit was to have hosted a Citigroup townhall that was preceeded by this memo that went out on Friday:

***************************** ***************************** ***************************** ***********************
Dear Colleagues,

As you know, we are experiencing turbulent times in the financial markets. Given Citi’s role as a counterparty and clearing agent in many markets, we have been deeply involved in a widespread industry effort to ensure an orderly transition. There is a separate press release signed by the CEOs of leading institutions, including Citi, that details the creation of a pool of funding available to help facilitate the transition.


Our people have shown tremendous professionalism, focus, and insight in this process. Over the last year, and in this immediately unfolding chapter of the credit crisis, we at Citi have meaningfully contributed to efforts to maintain confidence in global financial markets. We can all be proud to represent Citi, an extraordinary institution, which has and will continue to play a critical role in global financial markets.

I strongly encourage you to listen to an update from Jamie Forese and Gary Crittenden on what we have seen over the last few days in the capital markets and our pivotal role. That recording is available at: Really Long Link

You will take away from that call at least one thing: over the last year, Citi has managed critical priorities well - our capital and liquidity positions are strong, and we have tremendous capacity to make commitments to our clients.

It is important that we maintain our unrelenting focus on the needs and concerns of our clients and shareholders. They will want our views on the ongoing market dislocation. Please assure them of the entire industry’s commitment to work together through this transition. We are confident about the future despite a very challenging time. Indeed, an enduring hallmark of Citi is its ability to support clients during the tough times, and we are confident we will live up to that legacy in the days, weeks, and years ahead.

Let me remind you, and in turn, you can remind our clients and shareholders:

* Some nine months ago, we acted quickly to strengthen Citi’s balance sheet and established a very strong capital base for Citi’s present and future. We raised $50 billion in the capital markets since November.

* As of the 2nd quarter 2008 earnings release, our Tier 1 capital ratio stood at 8.7%, which is well in excess of the “well-capitalized” regulatory minimums. With continued deleveraging through the sale of our German retail franchise, which closes in the 4th quarter, we expect to add another 60 basis points to our Tier 1 ratio.

* Our financial strength makes us a favored counterparty.

* Our balance sheet was in excess of two trillion dollars and our Stockholders’ Equity at the end of the second quarter stood at $136.6 billion. The company’s cash position is very strong.

* Citigroup continues to boast a strong deposit base that is diversified across products and regions. This diversification, including deep access to international deposits, provides us with an important stable and low-cost source of funding.

Finally, it is clear our industry is in a state of change, but I am confident that this should be an opportunity for Citi, as it has been in our past. I would like to thank all of you for your hard work and dedication. Citi never sleeps.

Vikram
***************************** ***************************** ***************************** ***********************

This is all well and good. But, they came out first thing this morning and annouced that they are laying off 50,000 people. Having been in each of those poor people's shoes, it is as if the bottom has fallen off. I have been party to such "raw raw" pep rallies. I have seen how the CEO has tried to "rally" the troops. But, everyone knows how brutal and lousy things are. If anything destroys morale, this is it. I am sure Mr. Pandit understands that.

I suppose this malaise is a symptom of what is wrong with the economy right now. This is just devastating, though. Citi's stock closed at below $ 9 today. I am sure that folks like Prince Alaweed and others have lost a fortune. For them, it is all paper money and they will make it back. They are also not hurting for money . The bigger question for me is where all the bailout money has gone. If Citi is as great as Pandit says it is, then how come 50,000 people have to be let go. That's almost 18% of the workforce. Almost a million people are going to be affected by this simply because when the purchasing power is gone, it will wreck havoc on the economy.

I am also concerned about the Auto Industry. I launched my business career in the Auto Industry. I have written about how we are suspectible to take our eyes off the ball as the country seems to have a reprieve because of the drop in the price of oil. I saw a statistic that blew me away: There are over 250,000,000 cars in America. There is consesus that the auto industry is a vital part of the economy. But, I see what happened to the UK Auto Industry which seems to have survived after foreign owners took it over. I also see what the Japanese and the Germans have been able to accomplish in America. But, I also think that getting the Auto Industry help is an investment we would need to make. But, the investment will need to come at a very heavy price. It includes a decimation of the government-like bureaucracy that has given us so much grief and a radical shift in focus away from the gazz guzzlers. The Detroit Three say that they are doing it. But, the idiots at Chrysler wasted two years in pushing a three year guarantee on the price on gas. That was their brilliant idea of helping to sell cars. Now, they have ran out of time.

The "urgency of now" demands action by Congress. The inaction over Lehman Brothers began the Tsunami that we are yet to tame. The price of doing nothing is worst. But, as someone once said, if the choice is to do nothing and do something stupid, I would rather do nothing. Based on what happened at Citi today, I view the actions by the Feds so far as simply bone-headed. The markets were not too happy about the G20 anyway. The Dow lost over 200 points.

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The useless fool Karzai's Offer

: It shows how pathetic the man is
I wrote earlier about the useless Karzai offering to meet w/Mullah Omar. I actually tracked down and listened to his entire comment. To paraphase the fool, he said that if the foreign powers did not like his proposal, they can remove him. He just admitted that he is just a simple stooge and has no moral basis to occupy the position. Because of this, I hope the Foreign Powers who have kept him as a nominal figurehead will in fact remove the idiot. All of us have committed our treasure and our blood for Afghanistan. So far, nothing has happened. It broke my heart when walking around the local memorial to the fallen erected at Mission Viejo City Hall in Mission Viejo, California. The men and women who paid the ultimate sacrifice were from all walks of life. They were fathers, brothers, sisters, sons and daugthers who were forever lost to all us. Yet, we have to continue to prop up a useless fool who readily admits that he has lost all crediblity. I do take comfort in Barack Obama having noted that there are problems with the people in charge in Afghanistan. This really proved to me why the Taliban has gained as it has. It is not because NATO has not tried. It is because NATO can't do it alone.

January 20th cannot arrive fast enough so that we can hopefully see some movement. TIme is of the essence. Barack Obama seems to realize that.
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Barack & Michelle Obama's First Interview

: The Challenges Ahead
Barack Obama was on CBS's 60 Minutes giving his first interview. The entire program was devoted to it and Steve Croft was probing as ever. As I listened to Barack Obama's answers, I understood why he got the job. He seemed as disciplined, relaxed and in control as ever. As I have written before, he has aged a bit. But, he seems to be well aware of the challenges before him. I could not help but feel sorry for him because he could not do the normal things that we all take for granted. For instance, the fact that his long-time barber had to give him his haircut at an undisclosed location was sad. But, it comes with the territory. Some interesting thoughts indeed:


Watch CBS Videos Online

As I listened to Barack Obama, I was also glad to see that he is reading up quite a bit on Abraham Linclon. I had a chance to read Doris Kearns Goodwin's Classic, Team of Rivals, over the summer. It was a fascinating account on how a self-taught country lawyer from Illinois rose to the Presidency and was not afraid to have the best and brightest, including William Seward by his side during the most trying time in American history. Linclon's story is a story that has lessons for us all. He underscored his priority in jump-starting the economy. I personally was glad to see that he was not as concerned about the deficit for the first two years simply becuase jobs have to be created and the economy has to be restarted.

As Barack Obama gears up to take the oath of office, I am sure that the Republicans will probably have something to say about some of the deficit spending at hand. The problem is that their crediblity is so down the tubes that they do not have anything to stand on. There are many stars out there in Republican Land that can pick up the mantle. But, they still have to prove their muster. Sarah Palin thinks she can do it and should not be counted out. But, so can Bobby Jindhal, and even Newt Gingrich. The one that I would keep my eye on is Haley Barbour, the Governor of Missisipi though. I regard him as the true "grown-up" of the bunch.

We are indeed living in interesting times. I know for a fact that the Republicans will rise again.
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California is On Fire

: Scary scenes indeed.....
For the second time is as many months, California is up in flames yet again. All the major "mainstream" online media and local television has had nonstop coverage of the fires in Southern California. One of my friends sent a few of the images from the frontlines late on Saturday:
scary
What should we do?

scary
Geese!!!

There has been hardly any rain or snow. We seem to have no relief in sight. The fires will eventually be put out, people will overcome and rebuild their lives. Yet, the fundemental problems of our environment remains. What scares me is that the focus on the environment will simply not be there because of the economic Tsunami we are dealing with.
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The Need For Hope and Faith

: We Must Not Give Up!!!
I have been thinking and writing about what the average, ordinary person on the street is thinking. The fear is there, but there is also hope. I know when things are tough when I see Nokia seeing a decline in sales. As we are going through this experience, I see many possiblities. One thing for sure is that we will have to learn to live within our means. We will have to learn not to want the latest and greatest gadget. We will learn to not be sold by the latest fad that is out there. This Tsunami is the start of all of us being deprogrammed.

I realize it will take a long while. I happened to be talking to the local Pizza Hut General Manager. I asked him a simple question: How has the economy impacted you? He said that his business was down 2%. But, he took comfort in the fact that out of the 8 restaurants in his region, his performance was the best of the bunch. He was resigned to the fact that it will get worst before it gets better. He was another example of staying focused on doing the best he could despite all the challenge. Hope is a beautiful thing!!! But, fear is an all-encompassing sentiment that feeds on itself. How that is overcome is the story that is yet to be written


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The Economic Tsunami Before Us: Cont'd.....

: What can we do now?
I was out today talking to folks about the Tsunami we're faced with. One friend noted how his sister's company was forced into bankrupcy and liquidation. Right now, projects selling for 7-8 million dollars are being sold at 10 cents on the dollar. He also related a conversation he had with his banker. All the monies given by the Feds were just hoarded by the Banks. Apparently, there was no guidance given on how to spend the money. So, they spent it as they pleased. The stories about monies going for bonuses and banks buying other banks was true!!! No one should be shocked by it.

I am amazed that somehow everyone seems to be optimistic despite it all. I was glad to see reports that President Bush announced a special inspector for the bailout. I am sorry that it is too little, too late. Congress should have done it a month ago before all the monies went out. As I am hearing the stories and getting increasingly worried, I wonder how President-Elect Obama is going to pull it off. He reminded the country and the world of his committment during his weekly address


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The Economic Tsunami Before Us

: Will it in fact happen?
The Tsunami is in full force. I was at a FedEx Office location talking to an old friend of mine. He was telling me about how things had truly changed. He told me that he walked into the office this morning and did not even have a single FedEx Ground box. As I was talking to him, the shipments ready to be processed were basically non-existent. This is When people cut back, they stop shipping. Why is this signifcant? It is signifcant simply because it shows how truly terrible things are.

When I see the retail numbers tanking and the markets imploding, I am not sure where the bottom will hit. I also am concerned when I see the front page of the New York Times for Friday noting that the Auto Industry Bailout Plan seems to be a non-starter. Furthermore, the fact that the economic stimulus package President Elect Obama talked about at his first news conference is also running into trouble concerns me greatly. Whatever monies paid out by the U.S. Treasury's TARP program has apparently been hoarded by the banks and used to buy up rivals, pay dividends and rewards management. There is nothing for Main Street, yet. I wonder if the hotshots in Washington know that Main Street is in fact suffering when Citi annouced a 10,000 job cut and Sun Microsystems annouced a job cut of 6,000 workers. I don't think they really do. I sure know the Republicans don't


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Senator Clinton Being Secretary of State?

: Why all the fuss?
Senator Clinton "supposedly" saw President-Elect Obama in Chicago. The mainstream blogs Politico & Huffington Post are saying that Mr. Obama has offered her the job. I don't know if it is true or not. To me, it is speculation. Everyone is trying to be "first". I do wish that he puts together a true "Team of Rivals" that will rival what Abraham Linclon's Cabinet in 1860. The work by Doris Kearns Goodwin, to me, is a great blueprint for Senator Obama. I think Senator Clinton will have a major role. I am sure that Mr. Obama will make the right choice. To me, the choice of Joe Biden and Rahm Emmanuel have been right on. I would imagine that the Cabinet selections will also be just as onpointe. I wish the "mainstream" media would have just focused on the future and stop this speculation. It is probably wishful thinking.

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Louis Farrakhan Talks to Ritz Khan on Al Jazeera

: What a Fascinating Character....
I have been fascinated by Louis Farakhan. The Nation of Islam Leader sure has had his share of controversy over the years. I briefly commented on his sermon to his congregation this past Sunday. I found him to be reasoned and reminding his congregation of the need to make sure that African Americans do their part to overcome. He was not angry. He also was not angry when he talked to Ritz Khan. Maybe his bout with cancer changed him. Maybe, the election of Barack Obama changed him. Maybe he wants to leave a legacy that overcomes all the misconceptions he has had. Here is the interview (courtesy of Al Jazeera):


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The Useless Karzai Talks to the BBC

: Why is the world wasting its' time?
The so-called President of Afghanistan is in London. I was just listening to him on the BBC. He wants resources for the Afghan Government to do its' job to overcome drugs, the taliban threat and everything else. The question I have for the idiot is this: what do you think the world has done over the past seven years? The world has paid a heavy price. Yet the useless fool keeps asking for more. Until the fool is no more, Afghanistan will not change. As for the Taliban, they now seem to understand how to play the publicity game. There was a spokesman actually talking to the BBC. The Taliban are stronger while the world figures out what to do. At least Barack Obama is thinking about a bit more than just throwing more soldiers at the problem.
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"Failure is Not an Option"

: Alternatives are quite scary
I wrote earlier on the post-mortem on Hank Paulson's comments on the shift in focus that the bailout was going to take. Paulson will not take on the "toxic assets" and create a Resoution Trust Corporation-Type bailout. To me, this is the second lousy decision he has made in as many months. He is the same guy that decided to let Lehman Die and look what it got us!!!

The reports I have seen note that the Government has burnt through about 400 Billion with frankly nothing to show for it. I am starting to now truly believe that Main Street seems to have been forgotten in it all. The markets have been truly brutal. After the Dow bloodbath, markets around the world are in a free-fall. So, Mr. Paulson, wake up and smell the roses. I continue to believe that something had to be done. But, so far, nothing seems to be working. I thought about Apollo 13 and the leadership shown by the Flight Director. We need that kind of bold, frank-talking leadership now. Maybe Mr. Paulson should watch this and learn something


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I hope the Bush Adminstration Just Doesn't Waste Time!!

: let's focus on the future...
Although I think Keith Oberdman of MSNBC's Countdown sometimes goes a bit overboard at times, I found this he had quite interesting. It seems to me that the Bush Adminstration should simply just focus on holding the fort and get the new Adminstration ready for a smooth handover. The Congressional Review Act of 1996, which Jonathan Turley talks about in this segment, is another "great" check on the excesses of Executive Power. The Bushies are trying to push a lot of things through. The worst one is the Presidential Signing Statements which is the worst atrocity of it all.

Obama's team is already on the case, though. With Obama's view of the Constitution and having served as a Constitutional Law Professor, there should be no issues with getting this right. I have no doubt


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Hank Paulson: What a Tragic Figure

: Can the Incoming Adminstration Do Anything About it?
I was anxious to hear Hank Paulson today. I was not there to ask questions, but was frankly surprised that he noted that the bailout was working. The questions, in my view, was softball big time. As I listened to him, I wondered what he or anyone for that matter could do. Right now, banks are not lending. Cars are not being bought. Retail sales are pretty much stagnant. So, the fact that Hank Paulson noted that the recovery plan is working was shocking to me. The markets did speak, though: The Dow lost over 4% today. I am not sure if the incoming Obama Adminstration can truly do anything about it.
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Presidential Signing Statements

: Will This Go Away?
I have been concerned and totally taken aback at one of the most outrageous acts of the Bush Adminstration has undertaken: Presidential Signing Statements. What is it and why is it such a big deal? In simple terms, It is basically the President telling the world that he will not follow certain sections of a law passed by Congress. It is not a veto, but pretty close to it. President Bush has done over a thousand of these.

I have done some brief reading on Presidential signing statements. From what I have briefly researched, other Presidents have also done it. But President Bush has done over one thousand of them. As the peaceful transition of power continues, I hope that President-Elect Obama puts a stop to this. The restoration of the true of balance of power between the Three Branches of Government is absolutely paramount for America to continue to flourish to form "the More Perfect Union". I will be quite anxious to see how this rather crucial yet overlooked facit of political life over the past 8 years works to resolve itself


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Mr. Obama Goes to Washington

: An Ordinary Man's Perspective
Just like "ordinary folks", I was out on committments for the day. Although I don't every think that those of us who think and take the time to write about our world are necessarily ordinary. But, I wanted to once again be witness to history. So, I popped into a place where I could watch CNN as I worked on some paperwork and happened to call in to a conference call I needed to be in. It was just another ordinary day for an "ordinary guy".

Today was the day Mr. Obama went to Washington. As I watched this on CNN, I again was in awe as to the peaceful and seamless transfer of power that has begun in the United States. There was a new poll that came out about how unpopular President Bush is. As I heard that, my reaction was "so what". I see the role of the President right now is one thing: to insure a smooth, seamless transfer of power. There is one President, that's for sure. But, let's focus on the future while being mindful of the world around us. I am gratified and frankly proud to be an observer as this transfer is going on. The signifcance of a man of color visiting a house built by Slaves shows how far America has come. I caught this image as CNN was showing the two men walking down the corridor to the Oval Office


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Obama: A Symbol of Hope

: Quite a Burden
The world is becoming ever more hopeful about Barack Obama. I know I am. I got a kick out of this song inspired by the election. Enjoy:


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President-Elect Obama's First Press Conference

: Quite a Performance
Mr. Obama had his first Press Conference yesterday. I did not actually see it, but actually caught it on Radio. The pundits have been at it. Of the analysis I have seen, the only one I agree with is CNN's Gloria Borger when she noted how tired President-Elect Obama was. But, I did find him to be direct and to the point without giving the house away. The man has obviously been giving a lot of thought to the day after. The plan is in place and wide consultations have begun. The President-Elect's Website (http://www.change.gov) is also up. I am willing to be patient and give the President-Elect time to figure it out. The economic transition team is a team of All Stars. We need to give them time!!

On the foreign policy, I commend President-Elect Obama on his response to the congratulatory note from idiotnejad (Oh I meant Ahmadinejad, Sorry), the clerk-President of Iran. Iran subsequently blasted President-Elect Obama on the fact that Mr. Obama reminded the world that Iran will not be allowed to acquire a nuclear weapon


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Silvio The Clown, Sarah The Diva & Other Political Tidbits

: Infotainment at its' best
Silvio the clown (aka the Prime Minister of Italy) was in Russia. According to a report in the Times of London, the clown said that, ".... Russia and America can do business together.." He went on to say that, "...I will try to help relations between Russia and the United States, where a new generation has come to power. I don't see problems for Medvedev in establishing good relations with Obama, who is also handsome, young and suntanned".
According to the report, he said that he had intended the remark as a compliment and those who failed to understand this were "imbeciles". The clown is the imbecile. He is the idiot. I am sorry that President-Elect Obama has to deal wi