Thoughts from the Republican and Democratic Conventions

Here are some random observations after watching portions of the Republican and Democratic conventions.

• John McCain’s selection of Alaska Governor Sarah Palin was stroke of genius. It fired up his base, added interest and intrigue to his campaign and demonstrated his willingness to follow his gut and gamble. We will wait to see if it pays off.
• Unfortunately, that willingness to gamble is not a trait I admire in my president. Relying on gut instincts to make decisions is okay at times but when it occurs too often it is a sign of an individual who believes too much in his own counsel. .
• Sarah Palin could be the first female president of the United States. If she ran against Hillary Clinton, she will win. She will get the working class voters Clinton stole from Barack Obama and will get a good portion of the female vote which might not normally vote for a Republican but will vote against Hillary.
• The vicious attacks against Palin’s daughter once her pregnancy was announced were vicious and unnecessary. Obama deserves much credit for immediately denouncing them. Hopefully, this will shed light on the need to more aggressively address this issue.
• I also hope this will put to rest any notion that a poor family with a pregnant teenage daughter is a reflection of the parent’s unfitness. Oftentimes media types and “experts” are quick to attack minority parents for the actions of their children. This illustrates it can happen in any family, regardless of race, income and social standing.
• McCain’s speech was dull except for those poignant points about this captivity but he did nothing to dispel the notion this is Palin’s Republican Party not his.
• Giuliani’s sarcastic denunciation of Obama’s community organizing experience reminded me of the disdain Republicans tend to have for efforts to help poor people gain services and become fully vested into society. They were cheap shots directed at thousands of unsung heroes who help make this country respond to the needs of the disenfranchised.
• Palin’s experience makes questions about Obama’s experience moot regardless of position on ticket. When you conduct a job interview you look both at whether the applicant has met the criteria of the position and the potential that person offers. Obama has met the basic criteria to be president: US citizen and at least 35 years old. Until more detailed criteria are developed the question of experience is moot. Experience can mean different things to different people. Just listen to the conservatives extol Palin’s executive experience. All that matters is who voting public believes can lead us over the next four years.
• Republicans will keep Palin away from the press as long as possible to prevent exposure of her shortcomings. Once they have her properly prepared they will likely be selective about what programs she participates in. That is why they are attacking the “elite” media.
• Obama should win but it will be close.
• Hopefully the Palin selection will create better environments and equal pay for equal work for working women.
• Obama delivered a great speech in Denver but now must do the retail “press the flesh” stuff to win.
• Neither Obama nor McCain have an economic policy which will help get the country out of this mess.
• Biden gave a good measured speech and will be good on the road for Obama.
• Both Clinton’s did a great job in delivering their speeches.
• Looking at the mostly white crowd at the convention it reminded me of how far we still have to go before any racial harmony can be achieved.

Housing Crisis Affecting Wealth Retention

The housing crisis caused a loss in family wealth which will result in more families with greater dependence on the Social Security and Medicaid programs to live in retirement. This is the finding of a report, The Impact on the Housing Crash on Family Wealth released by the Center for Economic and Policy Research.

The report’s finding is based on data derived from the 2004 Survey of Consumer Finance. The data indicated the sharpest decline in family wealth occurred in younger families in the 35-44 year old age range. Their wealth declined by 63.2 percent from 2004. Those in the 45-54 year old age range saw their wealth decline by 34.6 percent since 2004 while those in the 55-64 age range saw their wealth decline by 43.1 percent.

For most Americans, their wealth is attached to the value of their homes. Any housing crisis will have an immediate and significant impact on a family’s wealth. According to the report, the decline in housing process has resulted in more than $4 trillion in real housing wealth which is an average of $50,000 per homeowner.

Older workers nearing retirement are likely to have inadequate retirement savings creating a greater dependence on Social Security and Medicaid. The report also calls for the Federal Reserve Board to be more aggressive in reacting to bubbles in the housing market.

Interesting Reads

Housing

Loan Giant Overstated the Size of Its Capital Base
By Gretchen Morgenson and Chalres Duhigg
The New York Times

Mortgage Giants Agreeable to Rescue Plan, but Its Cost Is Unknown
By Edmund L. Andrews and Stephen Labaton
The New York Times

U.S. Announces Takeover of Fannie Mae, Freddie Mac
Embattled Mortgage Firms in 'Conservatorship'; Treasury Plans Securities Buyback
By Neil Irwin and Zachery A. Goldfarb
Washington Post Staff Writers

Mortgage mess puts more banks at risk
Deposit insurance fund, depleted by failures, looks to rebuild capital
By John W. Schoen, Senior Producer, MSNBC

The Credit Crunch Cuts Deeper and Wider
Despite lofty commodity prices and signs of inflation, tight credit continues to torment investors and economists. Can U.S. exports save the day?
By Ben Steverman, Businessweek

Home Prices Continued to Decline in June
By Michael M. Grynbaum, New York Times

Home prices drop by a record amount
But slowdown in price decline seen as possible silver lining
Associated Press

Reinventing the Mobile Home in a Changing Market
By Sandhya Somashekhar, Washington Post

International

British mortgage approvals plunge by 65%
By Miles Costello, Times of London

Campaign 2008

Opinion
What 'culture war'?
At the conventions, they'll try to stir up red-blue divisions. But most Americans hold un-partisan views.
By Dick Meyer, Los Angeles Times

Obama Signaled Early That He Was Unlikely To Choose Ex-Rival
By Anne E. Komblut, Washington Post Staff Writer

The Racism Excuse
The Wall Street Journal Editorial