The massive Euro TARP program just announced is simply a bailoutof the PIIGS who way over spent and under taxed for all theseyears. In Greece few pay taxes and most who pay do not pay whatthey really owe. All of Europe has social safety nets programs thatkeep the voters happy so long as the string does not break, whichit now has. The willingness of governments to just spend and raisepensions, raise healthcare benefits paid by the government, raiseother benefits, and not pay for them is the root cause of thiscrisis. We were within hours of October 2008 all over again. Themedia and the administration can rant all they want about wall St,but the exact same irresponsible behavior was going on at alllevels all over the world. Greece, California, New York, Spain, andnow the US Congress and administration.
All the EU did this weekend is kick the can down the road again.It is highly unlikely that the austerity programs now being put inplace will last long as the cost to the EU economy will be verypainful and unions and the politicians will likely not endure thispain. At some point soon the Euro has to be devalued in whateverway this plays out. That is the only real solution and then a lotof pain has o be suffered as a result. We are just at the start ofthis phase of the crisis and there is nobody in Europe who is atrue leader like Maggie or Churchill in the moment of need. Merkelshould have stepped in but she completely blew it.
We all need to pay close attention to what is happening. Greeceis California, New York and Illinois. The teachers union here islike the unions in Greece. Give me, give me. Tax the rich. In theUS it is getting like Greece. Only 52% of Americans pay tax. If theDemocrats have their way that number will drop to under 50%. Lessthan half of voters will have any skin in the game so they will notmind higher taxes on those of us who employ the rest and who createthe capital which is the milk of economic growth. The newhealthcare bill subsidizes even the middle class making thesuccessful pay for all. Business owners are now being charged muchhigher taxes and capital gains tax is about to rise. They aretaking away the incentive to create capital and to create jobs.
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Joel Ross
Joel Ross began his career in Wall St as an investment banker in 1965, handling corporate advisory matters for a variety of clients. During the seventies he was CEO of North American operations for a UK based conglomerate, and sat on the parent company board. In 1981, he began his own firm handling leveraged buyouts, investment banking and real estate financing. In 1984 Ross began providing investment banking services and arranging financing for real estate transactions with his own firm, Ross Properties, Inc. In 1993 Ross and a partner, Lexington Mortgage, created the first Wall St hotel CMBS program in conjunction with Nomura. They went on to develop a similar CMBS program for another major Wall St investment bank and for five leading hotel companies. Lexington, in partnership with Mr. Ross established a hotel mortgage bank table funded by an investment bank, and making all CMBS hotel loans on their behalf. In 1999 he formed Citadel Realty Advisors as a successor to Ross Properties Corp., focusing on real estate investment banking in the US, UK and Paris. He has closed over $3.0 billion of financings for office, hotel, retail, land and multifamily projects. Ross is also a founder of Market Street Investors, a brownfield land development company, and has been involved in the acquisition of notes on defaulted loans and various REO assets in conjunction with several major investors. Ross was an adjunct professor in the graduate program at the NYU Hotel School. He is a member of Urban Land Institute and was a member of the leadership of his ULI council. In 1999, he conceived and co-authored with PricewaterhouseCoopers, the Hotel Mortgage Performance Report, a major study of hotel mortgage default rates.
