The Unsinkable brian cork™

Brian Patrick Cork is living the Authentic Life

General Motors ON

November16

It’s no secret that General Motors (“GM”) has it’s Initial Public Offering (“IPO”) this week.

What might be a secret to the masses, however, is it’s truest underlying purpose.

The government lent money to GM. There is some thinking that the government could own as much as sixty-one percent (61%) of GM. And, the big auto-maker, as leading and cutting-edge as it’s vehicles have become, will struggle for decades to pay our thinly stretched United States Treasury back – and, it does not have a prayer of meeting it’s pension obligations.

So, they, that insidious “they” (no doubt led by the pipe-smoking-black-dog), mind you, are going to foist the problem on the American Citizens the very best of the good old fashioned way, certainly time-honored… By manipulating the stock market.

Seriously.

Here is how this particular effort will play-out. You simply need to make the decision if you are going to benefit, or keep getting your collective asses kicked.

The IPO will likely open up around $28.00 a share. Insiders (by many a definition) will pay less. For example, the United States Treasury is going to own shares as will friends of the big brokerage houses. JP Morgan is the syndicate lead and they are making all manner of new friends on Capital Hill with this play. This is not widely publicized for obvious reasons.  In any event, based on the aforementioned loan details, the Treasury will break even when the stock hits approximately $44.00.

So, it’s a good bet the stock will do just that, and then some.

I’m guessing there will likely be close to a $6m billion over subscription of the stock leading up to the IPO. My experience tells me we’ll see about $1 billion in roiling. Then that “over-hang” of back-orders will kick the stock up. After that, it’s all about “management”.

This is not evil. This is simply the way things work. You, why not you, can argue it’s part of the American dream.

I have to say something. It’s one of the many reasons you read this Blog. And, it’s something a Prudent and Optimistic Gentleman finds, required.

Good luck. But, there is little of that actually involved. Fortuna, perhaps, eh Dr. Pappas?

UPDATE 11/17/2010 @ 1pm: VOILA! – GM Confirms Expanding IPO by 31 percent

Peace be to my Brothers and Sisters

Brian Patrick Cork

the thomas jefferson health care plan

February23

Allow me to begin this post with an important qualifier: I’m not a Republican. I am a Jeffersonian. And, a patriot. Most of this colored by my views as a heterodox. So, I read between the lines for the truth. I use historical precedent for my clear-eyed perspective.

There is a good amount of sophomoric chatter permeating the internet these days around an election year being a great opportunity to influence policy-makers.

However, I think the truth is more likely found in the harsh light of reality when you understand that lobbyists for behemoth interests such as banking and health care prefer status quo. Billions of dollars have been spent pinning down incumbent members of the House and Senate to steer legislation in favor of bigger business.

In other words, incumbents are going to focus more on filling their campaign war chests with lobby money so they can stay in office (and, keep their own platinum benefits and pay checks) than focus on the mundane needs of ordinary citizens.

Here is something of an example:

There are grandstanding headlines the last 48 hours around Barack Obama bravely fighting an uphill battle for a last-ditch effort Health care reform Bill.

Making a last-ditch effort to save his health care overhaul, President Barack Obama on Monday put forward a nearly $1 trillion, ten year compromise that would allow the government to deny or roll back egregious insurance premium increases that infuriate consumers.

The White House immediately demanded an up-or-down vote in Congress on the plan, or something close to it. But it’s highly uncertain that such sweeping legislation can pass. Republicans are virtually unanimous in opposing it, and some Democrats who previously supported a health care remake are having second thoughts in an election year. After a year in pursuit, Obama may have to settle for a modest fallback version of what once was his top domestic priority.

“Last ditch effort”?

That’s it? After all the talk and the promised change? The most amazing thing, in terms of “change” and speed has been poor Obama’s unique ability to use Martin Luther King, Jr.’s Dream as a door mat.

Mind you… It’s not actually Obama’s fault though. He was set up, and never really had a fair chance.

Read the next few paragraphs carefully. I’m putting it this way because this is where truth sheds it’s glaring light…

Release of the plan on the White House Web site comes just four days before Obama’s one-of-a-kind, televised health care summit with Democrats and Republicans. The White House said the plan would provide coverage to more than thirty one million Americans now uninsured without adding to the federal deficit.

…without adding to the federal deficit. Those are key words.

On Capitol Hill, Democrats cautiously welcomed the proposal, while Republicans gave a thumbs down.

House Speaker Nancy Pelosi, D-Calif., said in a statement she looks forward to reviewing the plan and discussing it at the summit. She told me: “We must pass comprehensive, affordable health insurance reform, and I am hopeful that Thursday’s meeting will help us achieve this goal”.

House Republican Leader John Boehner of Ohio dismissed the proposal, saying, “…the president has crippled the credibility of this week’s summit by proposing the same massive government takeover of health care based on a partisan bill the American people have already rejected.”

Senate Republican Leader Mitch McConnell of Kentucky said it was “disappointing that Democrats in Washington either aren’t listening, or are completely ignoring what Americans across the country have been saying.”

It takes some real effort, but you can read the eleven page plan in advance. It likely represents Obama’s most detailed proposal since he took up the health care overhaul effort a year ago. At the time, he sought to avoid the problems former President Bill Clinton encountered when he issued Congress a detailed prescription in the 1990s – a plan that was driven by Hilary, as you recall, and ultimately failed and contributed to the Democrats catastrophic loss of Congress in 1994.

Now, ironically, Obama is being criticized for having been too deferential to lawmakers.

White House spokesman Dan Pfeiffer said the plan is an: “opening bid” going into Thursday’s summit. It would cover more Americans – but also includes a new tax on investment income that Republicans object to.

So… That’s the hidden scam. This has been naught but a set up. A sleight of hand for the Democrats to tax the crap out of everyone else that actually works for a living. They will take fat government jobs and then bring in friends and family and pillage entrepreneurs.

I repeat my opening statement for this post: I’m not a Republican mind you. I am a Jeffersonian. And, a patriot. Most of this colored by my views as a heterodox. So, I read between the lines for the truth. I use historical precedent for my clear-eyed perspective.

“The president is coming into the meeting with an open mind,” said Pfeiffer. “If the Republicans do, too, our hope is that we can find some areas of agreement. If the Republicans bring good ideas to the table we will find ways – look for ways to incorporate those into our proposals.”

In summary, health care reform, fashioned under a plan to benefit the majority of Americans will be scuttled because heightened taxes are the only way we can pay for it. However, I believe what most of the people on Capital Hill don’t want you to understand is that the banking industry is actually, and inadvertently, undermining those efforts. Banks are taking away Lines-of-credit and unhinging small business. This makes big business maintain a market-share advantage. This makes stocks go up. That makes Wall Street Barrons powerful (with inside trading that Capital Hill pretends to take umbrage over and then quietly bury change legislation). They fund lobbyists – who don’t want change. So, we are going to pay a lot more taxes while getting reduced benefits. Along the way, corporate America will continue to get tax benefits to subsidize their efforts to outsource jobs to India. The banks will take your house in foreclosure and then make up the difference with other subsidies financed under The TARP plan.

Feel free to prove me wrong. …but, I’d rather you helped me start rallying thought leadership around reducing an incumbents sustained influence on Capital Hill. If they only have two years to make a difference, they won’t care about simply trying to stay there. Our Founding Fathers, led by Thomas Jefferson, meant for citizens to take a short break from their personal lives and business and serve briefly in government to drive change and progress. We need that type of person back in office.

Then you can keep your house, pay less taxes, and live a happy balanced life.

That’s what Jefferson built the Constitution around.

Peace be to my Brothers and Sisters.

Brian Patrick Cork

when congress can't Read

October5

My brother Greg is the CEO of Washington Scholarship Fund.

I’ll stand as a supporter for this program because Greg is part of it, Thomas Jefferson would have approved of it, and kids in tough economic situations need and will benefit by it.

I’ll always be annoyed by it because, well, because we need it. And, we shouldn’t have to. And Congressmen like Richard Durbin, as profiled below, know it, and should be more keen to resolve the related issues.

Read on. Do it!

The Washington Post – Open to Vouchers?

Sen. Durbin is asking the tough questions that could lead to reauthorization.

Sunday, October 4, 2009

SEN. RICHARD J. Durbin (D-Ill.), never a big fan of the federally funded vouchers that allow disadvantaged D.C. children to go to private schools, was downright brutal as he questioned one of the program’s operators at a recent oversight hearing. We were glad, though, to hear Mr. Durbin ask why some schools aren’t accredited, rail about teacher qualifications and wonder about testing. Instead of talking about doing away with vouchers, this influential Democrat seemed focused on ways to improve the program — and that’s a good sign for parents wanting to get a better education for their children.

Mr. Durbin, chairman of the Senate Appropriations subcommittee on financial services and general government, signaled he might be willing to continue the program. “I have to work with my colleagues if this is going to be reauthorized, which it might be,” Mr. Durbin said. It was a notable statement coming from the key architect of language that made future appropriations to the D.C. Opportunity Scholarship Program dependent upon new congressional authorization. Voucher opponents, notably teachers unions, hoped that would be the end of the five-year-old program. Indeed, it seemed that they were getting their wish when the administration rescinded scholarships promised to students this fall.

It’s encouraging, then, that Mr. Durbin seems to be taking a closer look at the program. He has visited schools that participate in it, meeting with the low-income parents and children who now receive up to $7,500 to go to a private school of their choice. No doubt Mr. Durbin has been affected by D.C. Schools Chancellor Michelle A. Rhee’s support for vouchers as part of a three-prong (along with public school reform and charter schools) approach to improving education in the nation’s capital. Ms. Rhee testified at an earlier hearing that she could not in good conscience tell a parent today to put his or her child in a traditional public school. She estimates that it will take her five years to fix the schools, and, until then, parents must have choices.

It was clear from Mr. Durbin’s grilling of Gregory M. Cork, head of the fund that administers the program, that some changes will be needed if he is to back efforts by a bipartisan group of senators, led by Sen. Joseph I. Lieberman (I-Conn.), to reauthorize the program and accept new students. His concerns — legitimate in our mind — about oversight and the quality of some schools clearly rattled the scholarship operators. No doubt they are right to be suspicious of changes that could hurt the program. But we would like to think that if Mr. Durbin were intent on killing the program, he wouldn’t be spending so much time talking about how to make it better.?

[…]

Policies for the (other) People

September15

As some of you probably know, there’s an ongoing debate on Capital Hill (that’s Washington, DC) about whether to help homeowners facing mortgage default. On one hand, politicians generally hate people. On the other hand, people vote.

Tough call.

Speaking of people… Americans without health insurance has hit an all-time high. So… I think I get it. This theoretical sub-prime mortgage crisis is just a brilliant way to make the uninsured seem insignificant compared to the defaulted. What’s worse; untreated cancer, or eviction from a home you couldn’t afford (NOTE: this might be a trick question)?

Tough call.

Speaking of not-rich people… Thank goodness we’ve restricted personal bankruptcy so that all these sub-prime mortgage defaults can generate a robust system of economic slavery. People had felt in control of their lives for far too long.

Fortunately these folks have “Desperate House Wives” to take their minds off of their poor decision making, and feel better by glorifying adultry. What’s worse; losing your home that you could never actually afford, or the trophy wife you moved into that house after you dropped the wife that put you through medical school?

Peace to my Brothers and Sisters.

Brian Patrick Cork

What’s All This About?

"What am I looking at?", you might wonder.

Lots of stuff.

Meanwhile, here, I discuss events, people and things in our world - and, my (hardly simplistic, albeit inarticulate) views around them.

You'll also learn things about, well, things, like people you need to know about, and information about companies you can't find anywhere else.

So, while I harangue the public in my not so gentle way, you will discover that I am fascinated by all things arcane, curious about those whom appear religious, love music, dabble in politics, loathe the media, value education, still think I am an athlete, and might offer a recipe.

All the while, striving mightily, and daily, to remain a prudent and optimistic gentleman - and, authentic.

brian cork by John Campbell





photos by John Campbell

 

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