My New Blog

“Old acquaintances be forgotten and never brought to mind” 2008 would be the year most of us would like to forget. Of all the gifts we could return to Sears, or in this case Uncle Sam, it would be the Economy of 2008. Keep it, we do not want it. 2009, on the other hand, is filled with promise and anticipation . The following are New Year’sEconomic Resolutions for our country to consider:

1. Invisible money should be banned. The “credit default swaps” were developed to insure investors that their investments would be safe with little to no loss if their investments proved unsound. My Uncle Charlie sold me his perfectly sound Ford Pinto but he would not give me my money back when the car refused to perform like he said it would.

2. New Math should be forbidden. Ten dollars plus Ten dollars equal 20 dollars, not 20 billion. After the Enron accounting scandal you would think that the accounting changes would be mandatory. You thought wrong.

3. If you want to lose weight, dressing in black and making people think you are skinny is only temporary. For a permanent change, get it sucked out: Loan modifications do not work unless the principal is reduced.

4. Wolves should not guard the henhouse. Secretary of Treasury, Hank Paulson former CEO of Goldman Sacks, structured a $300,000 billion dollar give away program with no accountability to the same people that orchestrated the current economic carnage.

5. Gambling outside Vegas is prohibited. So should Short Sales since they bet that the price of a stock will decline. It preys on corporate misfortune and should be considered craps.

6. A lot of honey and maybe a little brandy could bring some light and happiness to the minute by minute media’s “sky is falling” mentality (and that means you, talk radio).

2009 is a time to start a new. Let’s hope Uncle Sam does not re-gift.

FYI: Arizona Property taxes will be coming down in 2009! Speaker-elect Kirk Adams, R-Mesa, at a chamber luncheon "guaranteed" the House would make the cut permanent during the 2009 legislative session

by Diane Gerdes

Did you receive an end of the year bonus? Nope, neither did we. But John Thain, the former CEO of the once mighty Merrill Lynch orchestrated a pay-out of 4 billion dollars in bonuses December 29^th , three days before the finalized shotgun marriage with Bank of America. Barely three weeks, into the not-so- civil union, Ken Lewis, CEO of Bank of America was shocked and dismayed at the staggering losses attributed to Merrill Lynch and fired John Thain. What, no prenup? Maybe they should have gotten to know each a little better by using a couple of dollars of the bonus money for an accountant. Bank of America is now running back to Uncle Sam crying for more bail out money after blowing through the 25 billion dollars they received last fall. The brutal truth is that there is no demand for bank stocks or assets and the United States government is the only investor of banks at this time. To stabilize our money system, Uncle Sam’s next action may be to follow India and Sweden by implementing a plan for possible nationalization of our banks. President Obama could be the next President of the Nationalized Banks of America.

FYI: The Fed will meet next week to discuss the economy. The Fed rate is almost to zero, so lowering the Fed rate again is not an option. Rumor has it that they will discuss the possibility of decreasing the 30 year fixed mortgage rates to encourage home purchases.

FYI 2: The Arizona Cardinals have gone from the poster child of NFL losers to Super Bowl contenders in two short years. One of the reasons is that they devised a killer running strategy to complement their strong passing game.

You have to take different actions to get different results.

BY DIANE GERDES

How does the U. S. economy compare to the Arizona Cardinals? Our team, (yes, just like “our country” they are “our team”) is the oldest team in professional American football founded in 1898 and like a lot of snowbirds, their original home was in Chicago.

Less than two years ago the Cardinals were considered one of the most mediocre teams in the NFL, plagued with subpar performances and inner fighting. Maricopa County and the city of Glendale loudly questioned the building of their new stadium. Would there be a return on the taxpayer’s money?

Ken Whisenhunt is our new, unproven head coach known for being a visionary leader with a plan. In his second year he made the unpopular decision to start Kurt Warner as the quarterback deemed by many, including Dan Marino and Terry Bradshaw, too elderly to play effectively. But only 14 years ago when no pro team would sign Kurt, he sacked groceries and played in the arena football league until the St. Louis Rams took notice. He then led the Rams to the 1999 Super Bowl championship.

Ken Whisenhunt has faith in his team and that they will implement his plan to have winning results. The actions of his team have brought the Cardinals further than anyone would have dared to imagine in 2 short years.

As a country we need to have faith in our leadership. Faith in their plan. Faith, that our leaders have chosen the right team to implement different actions so we will have different results. It will not happen overnight. Can we wait two years?

FYI: Bars and Restaurants with T.V.’s are expecting big crowds this weekend. The Fox Sports Grill in Scottsdale usually makes around $5,000 on a typical Sunday. This Sunday they are expecting a cash influx of up to $50,000.

The last championship game the Arizona Cardinals won was in 1947 against the….Philadelphia Eagles. The last championship game the Cardinals played was in 1948 against the….Philadelphia Eagles.

BY DIANE GERDES