Say Goodbye to Those Big Banks

Wescom Credit Union has been making me nervous for at least a year.  It’s a large organization based in Pasadena, California. The have had 43 branches in Southern California from Santa Maria to San Diego and inland to Temecula.  They have been rated poorly, are losing millions of dollars and now will close 12 branches.  They got in trouble lending to those who could not afford to repay their loans.  Just like Citi Bank, Wachovia, and all the rest.   

Arianna Huffington has been running a campaign to encourage people to move their savings to good quality community banks.  Arianna writes “The idea is simple: If enough people who have money in one of the Big Six banks (the four we mentioned earlier, plus Goldman Sachs and Morgan Stanley) move it into smaller, more local, more traditional community banks, then collectively we, the people, will have taken a big step toward re-rigging the financial system so it becomes again the productive, stable engine for growth it’s meant to be.”

It’s hard to find the link but here it is at http://moveyourmoney.info/. Just enter you ZIP Code to find the good banks in your area.

This Isn’t Funny, It is Outrageous

Al-Qaeda’s leaders must have been laughing as they watched CNN and ABC news.  After all it looked like the Keystone Cops as the United States tried to get its footing on the “war on terror.”  Wait may be this is all the work of Inspector Clouseau.

Here are the scenes:

>A father tells the CIA that his son has become a terrorist and no one stops that young Nigerian from flying to Detroit.

>Seven CIA operatives are killed by an Al-Qaeda double agent. This is definitely Not funny!

>A man walks the wrong way through a Newark, New Jersey air terminal but the guard left his post a moment before and no one stops the intruder.  The security cameras are on but the recording device has not worked in many days.  Passengers must be re-screened and while they are waiting a traveling guitarist has everyone singing.

>Meanwhile the head of homeland security tells everyone on all the Sunday morning talk shows that “the system worked.”

>Where is the President of the United States?   Oh, he’s vacationing in Hawaii.  When he finally does arrive in Washington D.C. he tells us the “system failed.”  Really?

What part of this stupidity do I have wrong?

Investing is all About Risk

Smart people sold their S&P 500 Index accounts, other equity mutual funds, and many of their stock holdings when they saw the market had dropped 10% to 15% from its peak.  Were you asleep or what?  The S&P 500 Index peaked at 1576.09 on October 11, 2007.  Don’t tell me you didn’t notice the market was going down.

As you read the various articles about the change in our wealth over the past decade you come to the conclusion that all your savings and high earning investments in the stock market were for naught.  On average you would have been better off putting your money in bank CDs because you would have at least earned some return.  This simplistic view assumes that no one looks at their investments.  Those writers think that most people just follow the broker’s advice and never question anything.

I contend that most people are not that lazy.  After all, almost every news broadcast includes stock index averages.  We all know their names.  Dow Jones Industrial Average, Nasdaq, and S&P 500.  Most of us looked at our investments.  Each of us made decisions about those investments.  I do not accept Ali Velshi’s assumption that most of us were dunderheads who simply followed broker advice without question.  I am sure some people did blindly follow the “buy and hold” pitch given by the brokers.

Initially I did accept the notion that all of us blindly followed broker advice.  Wait!  We all did do some analysis.  Most of us did read the newspapers.  Many did make mistakes but some of us did the right thing and earned large amounts of money.

When the DJIA hit 666 last March I was skeptical that the bottom was there.  I promised myself that after the average had grown by 20% I would reinvest.  Then I looked at my earnings in GNMA and decided the market was too volatile.  My decision.  I made a mistake.  I could have grown some of my money by about 63 %.  My decision.

We read, we listen and we decide.  There is still money to be made but we all take a chance.  The poorest among investors simply can’t afford too much risk.

An American Murdered in Mexico

An assistant principal and school board member from the community of El Monte in the Los Angeles area was visiting his wife’s hometown.  While out to dinner with friends he, along with five others, was kidnapped and murdered.  The full story below was reported by the Los Angeles Times.

MEXICO UNDER SIEGE 

Wife of slain El Monte civic leader tells how night out with friends morphed into horror

‘You never think this kind of thing can happen . . . to innocent people,’ Betzy Salcedo says.

By Tracy Wilkinson, January 3, 2010, Reporting from Gomez Palacio, Mexico –   They were aware of the dangers. Agustin Roberto “Bobby” Salcedo and his wife, Betzy, knew that this town, like much of Mexico, was no longer the tranquil spot it had been.

“I’ve been coming regularly,” Salcedo’s widow said Saturday of her hometown. “We knew how bad it had become.”

And yet, the Salcedos ventured out for a few beers the night before New Year’s Eve.

“We were just going out with a group of friends,” Betzy Salcedo said, speaking slowly and casting her eyes downward. “You are careful, you look around, but you never think this kind of thing can happen . . . to innocent people. We were having a good time. Then we were in the mouth of the wolf.”

Hours later, Bobby Salcedo was dead, hauled away from the bar with five other men, their bodies dumped in a dried-grass field on the outskirts of town.

Arrangements were being made Saturday to repatriate Salcedo’s body. The 33-year-old, who was born and raised in the Los Angeles area, was an assistant principal and school board member in El Monte.

His slaying underscores the random volatility of the violence in Mexico and the ease with which the pain it causes can seep past the country’s borders.

The Salcedos might also have been lulled into a false sense of security by outdated memories and the comfort of old friends.

Betzy Salcedo cited an old Mexican saying: He who doesn’t owe anything has nothing to fear. She always figured that people who had nothing to do with drug trafficking would not be targets in the country they loved.

One can follow the gruesome news out of Mexico, much of it involving the government’s ongoing war against powerful drug cartels, yet still feel a sense of immunity — that “it can’t happen to me,” that the dangers are remote. It is a common thought among many Mexicans, a defense mechanism, perhaps.

But now Betzy Salcedo and her family are bitter. Mexico has become a poison to them.

The Salcedos and their companions had ended up at the Iguanas Ranas bar on Miguel Aleman Boulevard in Gomez Palacio on Wednesday night.

By day and to the uninitiated, the strip may seem harmless enough. There are dives with names like Mens Club-Boomerang, but also taco stands and convenience stores. The Iguanas Ranas is painted almost whimsically with, as its name suggests, bright yellow and green frogs and iguanas.

At night, however, the environment shifts. “We don’t even go out at night anymore. We are exposed to everything,” said Gerardo Gonzalez, the bar’s accountant.

Routinely, he said, gunmen commandeer cars from passing motorists, demand bribes, enter bars to lord over the patrons. “We are living in times of terrible, daily crime,” said the lifelong Gomez Palacio resident, whose nephew was kidnapped and shot to death on Christmas Eve.

It didn’t used to be like this. Until about two years ago, the Iguanas Ranas admitted families — parents with their children. But then the violence started. About that time, several men were kidnapped from the place and killed.

This year the bar has endured a bomb threat, an extortion threat and robbery. Things have gotten so rough that the owner is considering shutting it down, Gonzalez said.

Betzy Salcedo, 26, remembers the days of her youth, when she and friends could go out at any time of day or night without thinking twice. “That’s all completely gone,” she said.

Bobby Salcedo’s brother Juan, a banker in the Los Angeles area, added: “I’ve read all the stories. Sixteen bodies found here, bodies there. But I always thought it was [happening to] bad people. You mind your own business and you’ll be fine.”

Gomez Palacio is an industrial city in the northern part of Durango, one of the deadliest states in Mexico last year as two drug gangs battled for territory. That battle is part of the nationwide fight involving drug traffickers and the government that has claimed more than 15,000 lives in three years.

In December federal police intercepted a shipment of more than 400 pounds of crystal meth, a few days after intercepting a similar amount of cocaine, both being transported through Gomez Palacio toward the U.S. border.

Police stations in Durango state came under grenade attack Dec. 14. The former mayor of Gomez Palacio was kidnapped Dec. 6 (and eventually released) and the local police chief, Roberto de Jesus Torres, was gunned down the evening of Dec. 2 as he left his home.

On New Year’s Eve, a few hours after Salcedo’s body was found, two detectives were kidnapped in the middle of the day. Their bodies were left in the bed of a pickup on a major highway on the outskirts of Gomez Palacio.

Investigators reported no new developments in the Salcedo case Saturday. They repeated that they were looking into whether any of the people killed with Salcedo had criminal ties, but had found none.

Betzy Salcedo said none of her group was involved in drug trafficking; the victims included one of her oldest friends, Luis Fernando Santillan Hernandez, 27, a lawyer, and his two younger brothers. Another victim, Javier Gerardo Garcia Camargo, 28, was married to her best friend.

Gunmen armed with rifles burst into the bar about 2 a.m. Thursday; there were conflicting accounts of what they were looking for, investigators said Saturday. Some witnesses said the men asked for the owner of a truck parked outside. Others said they demanded to know who was a cop.

The patrons were forced to the floor and ordered not to look as the gunmen hauled off Salcedo and the five others, who had been crowded around a pool table. They were shot to death and the bodies dumped along a canal in a poor neighborhood called September 11.

Although there were calls in the Los Angeles area to solve Salcedo’s killing and bring the guilty to justice, the norm in Mexico is impunity. Most crimes go unresolved.

Manuel Acosta, the lead investigator with the state prosecutor’s office, vowed in an interview Saturday to get to the bottom of the Salcedo slaying. Sometime next week, he said, investigators will begin pulling together testimony from various witnesses.

Betzy Salcedo said she hoped some good would come out of “all these horrors” — that a serious investigation would be launched and “this will not keep happening to innocent people.”

wilkinson@latimes.com

//

Copyright © 2010, The Los Angeles Times

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January 5, 2010

A Leisure Guy comments about Mexico being the failed state on our border.  He says “We know how to stop this: legalize the drugs and institute a broad array of treatment programs (which would cost much less than the hopeless ‘War on Drugs.’ “  I couldn’t agree more.  Unfortunately there are too many people in the U.S. who will block these kinds of needed changes.

Enough to Quiet Holocaust Deniers

It is now more than 60 years since the end of the Second World War in Europe.  This blog entry is in memory of the six million Jews, 20 million Russians, 10 million Christians and 1,900 Catholic priests who were murdered, massacred, raped, burned, starved and humiliated while the German and Russia peoples were looking the other way! Now, more than ever, with Iran among others, claiming the Holocaust to be “a myth,” it is imperative to make sure the world never forgets.

This linked story  was originally aired  on Sunday, June 24, 2007 on “60 MINUTES” about a long-secret German archive that houses a treasure trove of information on 17.5 million victims of the Holocaust. The archive, located in the German town of Bad Arolsen, is massive (there are 16 miles of shelving containing 50 million pages of documents) and until recently, was off-limits to the public. But after the German government agreed earlier this year to open the archives, CBS News’ Scott Pelley traveled there with three Jewish survivors who were able to see their own Holocaust records. It’s an incredibly moving piece, all the more poignant in the wake of this week’s meeting of Holocaust deniers in Iran.

Hitler’s  Secret Archive

CLICK on This Link–   

http://www.cbsnews.com/video/watch/?id=2274705n

Israeli Airport Security

At Ben Gurion airport in Tel Aviv, screening is done in 30 minutes. The key? Look passengers in the eye!

After eight years of incompetent security at our airports (that’s eight years since 9-11-2001) the United States is finally getting serious. Or are they?  This is a summary of a report appearing in the Toronto Star this past December 31.

While North America’s airports groan under the weight of another sea-change in security protocols, one word keeps popping out of the mouths of experts: Israelification.

“Israelis, unlike Canadians and Americans, don’t take s— from anybody. When the security agency in Israel (the ISA) started to tighten security and we had to wait in line for – not for hours – but 30 or 40 minutes, all hell broke loose here. We said, `We’re not going to do this. You’re going to find a way that will take care of security without touching the efficiency of the airport.'”

The first layer of actual security that greets travellers at Ben Gurion is a roadside check. All drivers are stopped and asked two questions: How are you? Where are you coming from?  The questions aren’t important. The way people act when they answer them is.

…they’re not looking for liquids, they’re not looking at your shoes. They’re not looking for everything they look for in North America. They just look at you.

Goals or Resolutions for 2010

Most of us know that New Year’s resolutions are usually forgotten by the end of January.  It’s just in our nature to make promises to ourselves and then forget them as quickly as we made them.

However, there is one thing we all need to consider as we start the new year.  Prepare a list of goals.  You do not have to do this on January 1.  You may not have a really good vision of goals on this New Year weekend.  It isn’t necessary to have a list.  It might be just one goal.

The idea is to do some introspection to establish something you really want to achieve.  It is one or more things that are achievable at some distant time that will require your investment in time and perhaps money.

What is the point of this exercise?  To make something of your life better than it is now.  It could even be losing weight but that might seem like a resolution.

Where do you want to be on December 31, 2010?  Here is a resolution.  Resolve to set at least one goal that will improve your life.  Even the richest of us can make our lives better than today. 

OK, maybe Bernie Madoff can’t make things better for himself.

It is Time for “Big Drama Obama”

It is time the president went from “no drama Obama” to “one big drama Obama.”  He needs to pound the table and demand that the agencies protecting this nation start communicating with each other.  He needs to fire those responsible for allowing a terrorist onto an American plane.  He needs to say to Janet Napolitano, Robert Mueller, the head of the FBI, and Leon Peneta, the head of the CIA, “I don’t give a damn about your personal problems and your need to know crap.  All of you make this system work NOW. Not next week. It starts working today.”

There are people in this world who want to bring harm to all of America.  The want to kill, maim, and destroy the United States.  The president must put every possible action into play that will protect this country.  That does not mean running around like Chicken Little.  It does mean using every means at our disposal to find and destroy America’s enemies.

All of Islam does not hate America.  Some Muslims do hate America.  We need smart people to find and kill them before they kill us.  I do not care if they were born in the United States or another nation.  The Department of Homeland Security has its work cut out.  No excuse is acceptable.

I am not alone in my view.  This is not a “liberal” versus “conservative” political debate.  Maureen Dowd, a supporter of Obama, agrees that the President needs to become emotionally involved.

The Lucky Passengers on Flight 253

Janet Napolitano should never have appeared on the Sunday Morning interview shows because she was utterly unprepared.  Her answers to questions from Jake Tapper, hosting This Week on ABC and David Gregory on Meet the Press were utterly stupid or perhaps the words to describe her response should be beyond logic. She said “the system worked” on both of those shows.  Her statements that systems were under review were not reassuring at all.  Her words were not believable.

Screening systems did not work.  Terrorist watch lists did not work.  What actually worked were passengers on the plane subduing the Nigerian terrorist.

Today she concedes that the aviation security system failed.  Representative Peter King of New York was correct when he said Airport security “failed in every respect.”

Those crying about increased security at airports and on planes are in the same category as Ms. Napolitano.  The systems will protect us. Ri-ight.

We Need Real Healthcare Reform

I tried reading the Senate bill on health care.  It is not understandable.  It is reminiscent of the stimulus bill in that there is too much reference to U.S.C. (United States Code).  It requires a lawyer familiar with legal writing to understand.  The health care law passed by the Senate (H.R. 3590) is over 2000 pages long.  Few if any senators actually did read this law.  They apparently relied upon summaries provided by the leadership.

Watching the Sunday talk shows it is apparent that many commentators are unhappy with this law because they too do not understand the document.  This was most obvious on Meet the Press.  Even Duvall Patrick, Governor of Massachusetts, expressed his dismay with this law.  The reason is that little attention is given to regulations that will actually reduce the cost of medical care.  The focus is on providing medical care for the uninsured.  Where will the money come from to pay this cost?  Does anyone reading this article believe that Medicare and Medicaid savings will amount to $500 Billion?  Are taxes on high-priced medical plans a fair way to pay for this new law?

The Senate had to negotiate special deals and make a variety of compromises to obtain the required 60 votes.  How many more give aways and compromises will be necessary to reconcile the House and Senate bills?

Drug manufacturers and insurance companies couldn’t be happier.  They will be earning ever more money.

Now is the time to call your representative and senators.  Tell them that this is bad legislation that we cannot afford.

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Click Health Care under Categories for my other comments on this important subject.