RIP David Kellermann, CFO Freddie Mac

A rather sad post today. David Kellermann, age 41, CFO for Freddie Mac was found dead today at his home in Fairfax, Va. (a suburb of Washington DC). The police are reporting it as an apparent suicide without any explanation why. The police are still conducting a homicide investigation at his home. Mr Kellermann worked at Freddie Mac for 16 years. He became CFO when Freddie Mac was placed in conservatorship in September 2008.

This is the second loss of a senior executive for Freddie Mac in as many months. On March 1, 2009, David Moffett, CEO of Freddie Mac since it was put in conversatorship, announced his intention to resign as CEO and Board member by March 13 at the latest.

My condolences to the Kellermann family and everyone at Freddie Mac. You lost a good man way too soon.

How to kill 2 birds with no stones

During the recent Maersk Alabama piracy incident, I had a real brain storm. Since the US Government (AKA American taxpayers) is a major funder of the various and sundry plans to bail out/stimulate the economy, let's save them some money. Rather than set up this elaborate public private investment plan, let's cut out a few of the middle men/women and a few layers of regulatory bureaucracy all at once. Just take the absolute worst of the Legacy loans & securities (FKA toxic assets) & sell them off to the pirates (or their ransom victims) for ransom. The Somali pirates consider themselves voluntary coast guard to protect Somali waters from foreign fishing trawlers and toxic waste dumpers. Selling them legacy assets is not much of a reach beyond volunteer coast guardsmen. Remember, the pirates seized the Maersk Alabama, a loaded container ship which is not easily mistaken for a fishing trawler. The fact that the Maersk Alabama was carrying tons of food aid for Kenya, Mozambique and Somalia really makes the volunteer coast guard defense really indefensible. The millions of dollars received as ransom for seized ships speaks for itself.

President Obama should consider putting Bernie Madoff on a work release program to promote the idea to the Somalis. The possibilities are endless. Since the worst of these legacy assets are only suitable for extreme speculative investing or wrapping fish, the Somalis should get better use out of the assets than most nations or investors.

Big Brother or Waxman the wimp??

On Thursday, April 2, 2009 the US House of Representatives passed H. R. 1256, the Waxman Family Smoking Prevention and Tobacco Control Act by a vote of 298-112. (Italics mine) This act gives the FDA authority to regulate tobacco products by such means as larger warning statements, disclosure of ingredients, limits on flavoring additives and control of marketing efforts, especially when children are targeted. (italics mine again) If you are interested in the details and want a better return on your tax dollars, visit this site http://thomas.loc.gov/ . Do not read this in front of your computer workstation. It is such a great antidote for insomnia you will end up with your head on your keyboard which could initiate a large bill for membership to very obscure websites you didn't know existed.

Rep. Waxman proclaimed his so-called triumph over the evil tobacco industry with this press announcement:

"This is truly a historic day in the fight against tobacco, and I am proud that we have taken such decisive action," said Energy and Commerce Committee Chairman Henry Waxman, D-Calif., the bill's sponsor. "Today we have moved to place the regulation of tobacco under FDA in order to protect the public health, and now we all can breathe a little easier."

If this proclamation does not win the lamest, worst excuse of a pun award, there shouldn't be one!!

Also, please note that there are more regulations and restrictions in this bill than the earlier tobacco settlement. (AKA government sponsored extortion) Our fearless leaders in Congress justify this in the name of dramatic improvements in public health. It seems they have discovered what the American public has known for decades. Tobacco use can be bad for your health. Another noteworthy item, all of these draconian "Big Brother" regulations are the result of Congress' supposed altruistic concern for public health. If they are so concerned about their beloved taxpayers, why doesn't this proposed law ban the sale of tobacco products, rather than create more laws and bureaucracy?? The answer is banned products cannot be taxed. In other words, Mr. Waxman and conspirators do not wish to kill the cash cow, just cut back on how much pasture they can access. More on this to come.

And one more thing. Isn't the FDA the same government agency whose diligent efforts maintain our food safety and security from such diseases as Escherichia coli (E. coli), salmonella and Bovine Spongiform Encephalopathy(aka Mad Cow Disease)??? More on this to come as well.