Wall Street to Main Street: News, Views and Commentary: June 8, 2006

It's Thursday June 8, 2006, and the downward trend continues, as we are over the hump of the trading week and the Dow and Nasdaq are still seeing red. But before we head into the world of stocks lets stop on the political front.

President Bush said on Wednesday that all immigrants must learn English, this is a new proposal that he is pushing and looks to gain passage during this midterm election year, but he will have a long road ahead of him as he not only has to win over the Democrats but also members of his own party.

There was a surprise guest on Capitol Hill and that was the founder of Google (NASDAQ: GOOG) Sergey Brin. This trip was an important one as for the first time the company has admitted to compromising their principles when they agreed to censor the Chinese version of Google. He stated that they reluctantly agreed to the censorship once the Chinese Government blocked Google's Chinese version site.

As we are in the heat of midterm elections the topic of gay marriage has popped up again, but is it just at the wrong time. The Senate rejected a gay marriage ban stating that both President Bush and the GOP's lobbying for this passage was out of line. But because this is midterm election time you can expect this to topic to come back to life next month with more fuel on the fire than before.

Now, I'm going to say it again, as an investor you should not, better yet cannot get emotional. Stocks trade up, stocks trade down, and that is the nature of the stock market. It's your job to do the homework that will put you on the right side of the movement. We will continue to lay out some ideas and our outlook, we'll give you some insight into the company and its current situation but you still need to do your homework to insure that it is right for you. We want our readers/listeners to be well informed so that you can make informed decisions and not foolish trading mistakes.

So do not trade with emotion, use your head and focus on the game plan, now lets move on to some stocks that you will want to keep an eye on.

The NAMC Newswire's "Wall Street to Main Street" segment in its entirety is only available to subscribers. Don't miss out and Keep in mind that all subscriptions are free and will remain that way. All that you need to do is go to http://www.namcnewswire.com and add your email address to receive the full segments. We value your privacy and all email addresses are only used for NAMC related items and not shared with any third parties. Your subscription allows you to participate in the newly added investor commentary; this is where we will be giving the floor to investors each day.

Remember that investor commentary segment is wide open, so send us your emails using our contact form on http://www.namcnewswire.com and give us a call toll free at 888-463-9237 between the hours of 6:30pm and 12am EST weekdays to get involved. Make sure to include your name and state in the email or in the audio. We want to hear from you so make "Wall Street to Main Street" work for you.

Be sure to spread the word about "Wall Street to Main Street" as we continue to grow both the daily segment and the radio show, so do your part to help us expand our reach.

Remember that you can always listen to the NAMC Radio on Streetiq.com, the leader in financial podcast. http://www.streetiq.com and is also available on iTunes.

Movers and Shakers

Some major movers in yesterdays trading session include Intuitive Surgical (NASDAQ: ISRG) which was knocked down from $116.35 to $107.70 on Tuesday but regained those loses to trade up $4.95 to close at $113.01 on Wednesday. This is the exact reason why it is crucial that you seek out companies that are being dragged down by the market , those companies that have not changed fundamentally.

U.S. Xpress Enterprises (NASDAQ: XPRSA), one of our "Furious Five" features, traded up $1.34 to close at $23.34. As we mentioned recently trucking, rail and transport in general will continue to grow, especially those companies that transport construction material. We mentioned TMM SPA (NYSE: TMM) a Mexico play yesterday and U.S. Xpress is one that will benefit here in the USA.

Target (NYSE: TGT) made some noise on Wednesday after an upgrade by Lazard Capital Markets. The company expects high gross margins in 2006 and basically the quality retail companies are beginning to shine, just look at Sears Holdings (NASDAQ: SHLD).

Other stocks that made moves on the upside include L-3 Communications (NYSE: LLL) which traded up $3.44 to close at $76.93, Apollo Group (NASDAQ: APOL) which traded up $2.55 to close at $55.47, DSW, Inc (NYSE: DSW) traded up $2.50 to close at $31.65, Life Time Fitness (NYSE: LTM) traded up $2.39 to close at $44.38, Four Seasons Hotels (NYSE: FS) traded up $1.46 to close at $62.58, Las Vegas Sands, (NYSE: LVS) traded up $1.37 to close at $68.00 and Harley Davidson (NYSE: HDI) which traded up $1.34 to close at $49.30.

Under Ten

Now lets take a look at movers in the market under ten bucks, Home Solutions America (AMEX: HOM) traded up $1.14 to close at $7.94 after a rough day on Tuesday but the pressure will still be on the stock in today's trading session.

Peru Copper (AMEX: CUP), this was a pick by our very own Larry Oakley from Wall Street Corner a few weeks back when it was in the low $4 range, so this was a good call, the stock traded up 56 cents to close at $6.72 but it gets better it was halted with news pending at 2.37pm yesterday. Well after the close Peru Copper stated that they requested the trading halt on both the Toronto and AMEX due to a "frivolous" bid that it received from Southern Copper (NYSE: PCU). They were concerned about the stocks unusually trading activity and wanted to stop this in its tracks, but you know what they say where there is smoke there is fire, so keep your eyes on Peru Copper.

American Italian Pasta Company (NYSE: PLB) , if the name doesn't give it away let me tell you , they are a producer and marketer of dry pasta in North America, some brands include Mueller's, Mrs. Grass, Pennsylvania Dutch and Anthony's pasta . Everything from linguini to rigatoni, they do it all, some of their competitors include Barilla Holdings, which is by far the largest pasta maker in the world, yes surpassing the Ronzoni brand.

This has weighed on the company for some time. At one point this was a $51 stock and went as low as $3, it closed down in the $8 range yesterday, so for all intents and purposes this one fell out of bed. They currently have a 52 week low of $3 and a 52 week high of $23.64. Now I need to let you know that they company is losing money, they just reported that revenues dropped 7% in 2005, this is the first time in 12 months that they have given full disclosure of sales figures. But the stock had movement on Wednesday as it traded up 43 cents to close at $8.44, go figure.

Other stocks under ten bucks that made nice moves yesterday include Nitromed (NASDAQ: NTMD) which traded up 40 cents to close at $4.64, Cardica (NASDAQ: CRDC) traded up 37 cents to close at $7.26, DUSA Pharmaceuticals (NASDAQ: DUSA) traded up 36 cents to close at $4.90 and Lattice Semiconductor (NASDAQ: LSCC) which traded up 32 cents to close at $6.05.

Downers

Some Downers in yesterdays trading session include USG Corp (NYSE: USG) , they are being dragged down with the building materials sector as the stock traded down $8.09 to close at $76.20 on heavy volume.

Veritas DGC (NYSE: VTS) traded down $6.25 to close at $45.37, this is a company that is involved in the information end of the oil business as they supply integrated geophysical information and services to the petroleum industry. Now the stock ran up during the final week of May from $44.81 to close as high as $51.62 on Tuesday. So this pullback could be attributed to market conditions as nothing has really changed with the company. Actually it should be in better shape now as increased drilling in the U.S. is about to ramp up. So use this downturn as an opportunity to find a good entry point.

Diamond Offshore Drilling (NYSE: DO) traded down $4.09 to close at $78.16. Now nothing dramatic has happened with the stock, it is being dragged down by market conditions just like Veritas. Now the stock broke the $79.23 mark and could slip to high $75 to the low $76 range, but you need to keep an eye on the trading on this as it could drop to the mid $77 range and pop back up. Now keep in mind that the stock traded as high as $95.65 in May 2006, so the potential is there. Keep this one on your stock watch.

Other stocks that traded down but shouldn't be down there include U.S. Steel (NYSE: X) which traded down $3.30 to close at $60.61, Schlumberger Ltd (NYSE: SLB) traded down $3.45 to close at $60.51,

Steel Dynamics (NASDAQ: STLD), which traded down $3.26 to close at $53.74, Petroleo Brasileiro (NYSE: PBR) traded down $3.53 to close at $81.80 and Occidental Petroleum (NYSE: OXY) which traded down $3.07 to close at $94.72.

Now some stocks under ten bucks that received the royal smack down on Wednesday include International coal Group (NYSE: ICO) which traded down $1.40 to close at $7.10 on heavy volume, Polyone Corp (NYSE: POL) traded down 54 cents to close at $9.09, Movie Gallery (NASDAQ: MOVI) the stock that shot up on rumors traded down 49 cents to close at $7.01 on over 5.3 million shares traded, Input/Output Inc (NYSE: IO) traded down 46 cents to close at $8.74 on heavy volume and Grey Wolf (AMEX: GW) which traded down 40 cents to close at $7.28 on over 3 million shares traded.

Analyst Upgrades/Downgrades

Recent Analyst upgrades include American Woodmark (NASDAQ: AMWD) which was upgraded to a Buy from a Neutral by Sidoti & Co, Aeroflex Inc (NASDAQ: ARXX) was upgraded to an Above Average from an Average by Caris & Co, Broadcom Corp (NASDAQ: BRCM), a company that we just spoke about on Wall Street to Main Street, was upgraded to a Buy from an Above Average by Caris & Co, Boeing (NYSE: BA) was upgraded to a Buy from a Neutral by Banc of America and Target Corp (NYSE: TGT) was upgraded to a Buy from a Hold by Lazard Capital Markets.

Recent Analyst downgrades include Prosperity Bancshares (NASDAQ: PRSP) which was downgraded to a Hold from a Buy by Sanders, Morris and Harris, Lamar Advertising (NASDAQ: LAMR) was downgraded to an Inline by Goldman Sachs, Herley Industries (NASDAQ: HRLY) was downgraded to an Underperform from a Market Perform by Raymond James, Northrop Grumman (NYSE: NOC) was downgraded to a Neutral from a Buy by Banc of America and Johnson Controls (NYSE: JCI) was downgraded to a Neutral from an Outperform by Robert W. Baird.

Recent analyst coverage initiations include Regis Corp (NYSE: RGS) which was initiated with a Peer Perform by Bear Stearns, Ethan Allen Interiors (NYSE: ETH) was initiated with an Outperform by Raymond James, Bancshares Florida (NASDAQ: BOFL) was initiated with an Outperform ratings and a $26 price target by Raymond James, RCN Corp (NASDAQ: RCNI), which by the way I've been seeing a lot of those RCN Vans in New York City lately, but the company was initiated with a Hold rating by Morgan, Joseph & Co, and Ingersoll-Rand (NYSE: IR) was initiated with a Neutral rating and a price target of $45 by Banc of America Securities.

Investors Commentary

And the Readers/Listeners Speak:

Don from New Jersey said: "I've just started to listening to Wall Street to Main Street" and was surprised on how informative it was. A friend of mine turned me on to it and I think that its great, keep up the good work."

Don, thanks for the kind words, its always good to hear that our listeners and readers are finding "Wall Street to Main Street" beneficial. Word of mouth advertising is the best way to go and hopefully all of our listeners and readers will follow your lead and spread the WSMS word.

Daisy from New York asked: "I know that the metals have been coming down lately including copper, do you think that it's a good time to start looking at Southern Copper (NYSE: PCU) as a potential rebound stock?"

Daisy, Southern Copper in 2006 went from a low of $69.36 and closed as high as $105.85 on May 10, 2006. The stock traded down $3.03 on Wednesday to close at $80.72, I'd like to see if it breaks $78 on the downside because at that point it could freefall to the low $70 range before it bounces back. Their mining and smelting activities are primarily in Peru and Mexico, so as you watch this trade you may want to consider Peru Copper (AMEX: CUP).

Andy in Maine said: " I caught your show while I was looking for financial shows on Monday for my iPod and I have to say that I'm glad that I found it, is this show going on national radio and how about television?, hey I'll help produce it"

Andy, I'm glad that you found us, so we welcome you to the growing "Wall Street to Main Street" family, as far as national radio syndication, we're working on that and any assistance that we can get on that end from our listeners is appreciated. As far as a TV show, well that is something that is being kicked around, if we need production help we'll shoot you out an email.

Marie in North Dakota asked: "I came across a new issue by the name of Luna Innovations, and I wanted to know if you thought it was a good play or not."

Marie, Luna Innovations (NASDAQ: LUNA) is a new IPO that went public on June 2, 2006. The stock is relatively new and came public at a time that Vonage (NYSE: VG) created a massive IPO debacle, but Luna stood strong at $6 where they went public. The company researches, develops and commercializes innovative technologies in molecular technology and sensing solutions. I haven't had the time to get my hands dirty and research it, and I am not going to give you an on the fly outlook on whether you should buy the stock or not, it would not be fair to you. So what I'm going to do is try to get the CEO of Luna Innovations on "Wall Street to Main Street" so they can tell you exactly what the company is about and then we can evaluate its value to you.

Thanks for the emails and keep them coming, this is the interactivity that we need to really make "Wall Street to Main Street" work for you.

FURIOUS FIVE

The latest addition to our "Furious Five" companies that we see excelling in their industry in 2006 is Omega Healthcare (NYSE: OHI).

For our outlook, and other vital information on the companies that we feature as the "FURIOUS FIVE" on Wall Street to Main Street just subscribe for FREE at http://www.namcnewswire.com

Omega Healthcare Investors trades on the NYSE under the symbol OHI.

We cannot stress enough that investors need to do their due diligence, call the companies, get the information, consult with your investment advisor and if you do not have one consider getting one. Put the same time into investigating these companies as you do when you go to purchase a new television, it's only for your protection. When it comes to thinly traded securities stagger your orders or put a limit order in to avoid a run up.

NAMC Newswire Note

Go to the NAMC Newswire for updates at http://www.namcnewswire.com and you can listen to the NAMC Radio for the audio version of "Wall Street to Main Street" at http://www.namcnewswire.com/namcradio

To register to receive the Wall Street to Main Street Free Daily Newsletter Click Here or go to our site and click on the Newsletter section. http://www.namcnewswire.com/newsletter

CEO's that want to contact us can do so by going to www.namcnewswire.com

or call us at 888-463-9237.

Louis Victor

NAMC Newswire

888-463-9237

Disclaimer:

None of the information contained on the NAMC Newswire constitutes a recommendation by the NAMC Newswire, its journalist, nor its parent company that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific investors or person. Each individual investor must make their own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy featured on the NAMC Newswire or NAMC Radio Any past results are not necessarily indicative of future performance. The NAMC Newswire, its journalist nor its parent company does not guarantee any specific outcome or profit, and all investors should be aware of the real risk of loss in following any strategy or investments featured on the NAMC Newswire or the NAMC Radio. The strategy or investments discussed may fluctuate in price or value and investors may get back less than you invested. Before acting on any information featured on the NAMC Newswire website or the NAMC Radio segment, investors should consider whether it is suitable for their particular circumstances and strongly consider seeking advice from their own financial or investment adviser. Investors are also urged to do their own due diligence before investing in any security.

All opinions featured on the NAMC Newswire or NAMC Radio are based upon information that is considered to be reliable, but neither the NAMC Newswire, its journalist, its parent company, affiliates nor assigns warrant its completeness or accuracy, and it should not be relied upon as such. The statements and opinions featured on the NAMC Newswire by its journalist are based on their outlook at the time of the statement or opinion, and are subject to change without notice. NAMC may at times hold a position in the companies that it features, in these cases appropriate disclosure is made.

Louis Victor is the host of the syndicated radio show and financial newsletter "Wall Street to Main Street" which is featured on the NAMC Newswire Radio. He has been involved in the financial industry for over two decades, on the retail and investment banking ends. He is also well versed in the advertising and marketing industries, which has given him insight into market trends and unqiue companies that may be under the radar.

Wall Street Giant Bailout - And the Politicians That Caused It

America is on the threshold of the largest financial collapse in history, and are being forced to bailout the Wall Street Giants that enabled it to happen. The Government is pledging more than $1 Trillion in attempts to stop the downward trend that threatens to bankrupt the Country.

The sad reality is that the Government and Corporate Giants have placed American's in this position, without any sense of remorse or conscience. For years, the large corporations have raked in Billions of Dollars from American's, through mortgages, credit cards, investments, real estate, etc. The profit margin has been immense, enabling Corporate CEO's to make the largest and most expansive salaries in history. Of course, the money that created this profit margin, came straight out of the pockets of the American People.

For years, the greed of the American Corporation's have emptied the pockets of the People. Yet, now that the "fat cats" at the top are having to account for their shady business practices and illegitimate dealings via the collapse of the American Markets, those same "fat cats" are begging for Taxpayer Dollars to bail them out of bankruptcy. Yes, the American People fed these huge corporations Billions of Dollars over the years, and are now being required to send Billions more to keep them from going under! In essence, this amounts to nothing more than Modern Day Extortion, legalized and offered by our Government.

More than eleven banking institutions have failed during the last year, costing the FDIC more than $2 Billion in insured deposits. With those same institutions, more than $1 Billion in customer deposits were NOT insured, causing thousands of citizens to wonder if they will ever see their money again. Reviewing the failed banks may draw a memory of the Savings and Loan Crisis from the late 80's to early 90's, in which more than 750 Savings and Loan Institutions failed costing more than $160.1 Billion, which $124.6 Billion was directly paid by the Taxpayers.

It is difficult to predict which particular action started the current recession. Possibly the election of George W. Bush in 2000...or the attacks of 2001 on New York's World Trade Center...or the illegitimate war in Iraq...the fall in housing prices leading to the mortgage crisis... Or, did this begin many years prior? Some may recall the Great Depression of 1929 when the Stock Markets crashed on October 29, which was dubbed Black Tuesday. Surprisingly, the Great Depression and the Bush Recession have such close similarities, and are a direct influence of one another.

Regulation

The Great Depression caused the Unemployment Rate to jump to 25%, still the highest unemployment in history. With unemployment at such a record high, the demand for consumer products fell, causing many companies to go under due to lack of that demand. The Financial Industry had banked on risky, cheap credit loans, which in the time of a recession are extremely volatile. Many of those loans could not be paid, causing more than 744 Banks to fail with mounds of 'bad debt'. Depositors in those banks are said to have lost more than $140 Billion (1930's).

Franklin D. Roosevelt (FDR), who was elected in 1932, primarily blamed the excesses and greed of big business for causing an unstable "bubble-like" economy. Democrats believed the issue was that businesses had gained too much power.

Mariner Eccles, FDR's Chairman of the Federal Reserve (11/1934-2/1948) detailed in his memoirs (Beckoning Frontiers) what he believed led to the Depression. A small portion of Eccles memoirs stated, "As mass production has to be accompanied by mass consumption, mass consumption, in turn, implies a distribution of wealth - not of existing wealth, but of wealth as it is currently produced - to provide men with buying power equal to the amount of goods and services offered by the nation's economic machinery. Instead of achieving that kind of distribution, a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth."

Roosevelt and the government began working on "The New Deal", which was intended to remedy the big business power, and offer power to labor unions and farmers. Taxes were to be raised on Corporate Profits, and the regulation of business and finance was to take place. Roosevelt ensured new banking regulation, increased spending.

The New Deal sought to stimulate demand, and provide work and/or relief for the impoverished by increased Government Spending and instituting Financial Reforms. The securities industry became regulated through the Securities Exchange Act of 1934, eventually forming the Securities and Exchange Commission (SEC). Federal Insurance via the FDIC came into play, as well as regulations to fight "cut throat competition", the setting of a minimum wage, labor standards, assisting Unions to increase wages and purchasing power, the addition of the Social Security Programs, as well as other agricultural and financial regulation.

FDR's 'plan' sought to alleviate the ill effects of the Great Depression, as well as prohibit these actions from taking place again. The Depression not only effected Americans, but caused a Global Depression unlike any other seen to date. Roosevelt knew that this could not be allowed to happen again, instituting sweeping regulation. This regulation, along with World War II, ultimately pulled the US out of the Great Depression and would prohibit this same greed and wealth from causing another financial meltdown for the Country.

De-Regulation

In the 1970's, banks and businesses alike felt restricted by the regulations that FDR put into place some thirty-five years prior. There was a feeling of "credit rules", prohibiting some from starting businesses, or from getting loans. While it has always been common knowledge that loans require good credit, this simply was too stifling for entrepreneurs and finance companies. This could, quite possibly, have been the downfall of our government - it brought upon the ferocious lobbyist we know today, as well as politicians who accepted lobbyist monies to represent their interests. By the 1980's, de-regulation began on a State and Federal level.

Regulation was minimized, and eventually removed from the Finance Sector, the Business Sector, the Utility Sector, and so on. The US did see that loans were easier to achieve by offering interest rate competition, which elevated the financial markets and increased the size of the business markets. America underwent vast changes, and soon became a financial powerhouse. Unchecked and unsupervised wealth grew at phenomenal rates, enabling the growth of the Wall Street Giants that you see today.

The Housing Industry saw unprecedented growth, by the deregulation of the Financial Industry. Real Estate became a new force, with homes going up by the thousands, and loans being signed to buy those homes. The price of housing increased dramatically, and the Financial Industry was booming due to those increases. The overall goal of business during this time was to grow and encompass as much wealth as humanly possible, with the intent of a wealthier and more prosperous America.

So How Has De-Regulation Hurt?

By deregulating these industries, the checks and balances were removed enabling these same Wall Street Giants to practice business as they saw fit. Deregulation did stimulate the economy, however it also brought about corruption and greed.

The driving force behind deregulation was Corporate Greed. By removing the regulations that tied their hands, they were able to grow exponentially, creating enormous profit margins and salaries beyond compare. The Big Business of America was growing at an alarming rate; the markets soared. The expansion of business created thousands of new jobs, and more American's than ever were making money and progressing.

Like most things in life, "All good things must come to an end."

The same Corporate Greed that helped to enable deregulation, was the same Corporate Greed that has caused the largest financial meltdown in modern history. The CEO's at the tops of the ladders became greedy and began to draw salaries beyond compare. With the deregulation of our markets, and Corporate Tax Breaks being handed out in hopes of a "Trickle Down Economy", the American People were doomed to failure.

Higher Profits became the goal of business, at any cost. Business demanded newer and cheaper ways of making products, which led to inferior quality and unhappy customers. With all businesses making this movement, it became more and more difficult to buy quality products. This was of no consequence to Big Business, and the goal of "higher profits" still dominated board rooms. The outsourcing of business and employees soon became the 'hot topic'. Corporate America began to look for cheaper laborers; one's that did not require such employee benefits as healthcare, retirement and stock options, etc. American Jobs were now on the auction block so that companies could spend less money, and have higher profits. American's began losing their jobs, as companies "laid off" employee after employee. American companies began hiring employees in India, Costa Rica, the Philippines, Thailand, and China (to name a few). Buildings were going up in other countries, in order to employee foreign persons to do the same job that American's had done for years. The simple truth is that you can increase your profits beyond your dreams if you hire people at $2 - $4 per hour, over the American workers that you must pay a minimum wage. American workers require benefits, due to our markets and profit-based healthcare system, that foreign workers do not require.

As this tide began to sweep American Business, the People did anything possible to provide for themselves and their families. The increase in housing prices, the decrease in job opportunities - emphasized the enormous gaps in the modern class system. The "upper echelon" saw a tremendous growth in wealth, while the impoverished had no hopes of gaining ground. The "middle class" became split amongst those that had opportunity, and those that did not.

Corporate Greed grew at an alarming rate; completely unchecked. With anything, there is a ceiling, and that ceiling was simply too low for Wall Street. Businesses began to get loans, to pay loans, that they had gotten to pay a loan. The act of borrowing money became a way for many businesses to stay on top. Money was borrowed, only to be invested, to make more money. With all investments, there are no guarantees of profit. However, if the market choices were good choices, the money invested grew tremendously.

The Financial Industries had to keep up by offering more loans, and better interest rates to attract borrowers. A person's income or credit worthiness were not concerns that the banks were willing to consider - Sub-Prime mortgages are a direct result. In order to sale the homes that the Real Estate Market flooded the Country with, more citizens had to be given loans. Adjustable Rate Mortgages, Reverse Mortgages and many other "shady" dealings were introduced. This enabled banks to place more people into homes, assisting the Real Estate Market with it's enormous growth and expansion. Banking Institutions grew to unprecedented sizes, making loans and investing monies as they saw fit. The problem was that banks were investing customer deposits, and using that money to become larger, pad salaries, and offer more loans.

With the job market plummeting, American's have made less money. By making less money you buy fewer products. By buying fewer products, American Companies make less money. By those companies making less money, loans inevitably do not get paid appropriately. As well, by the American People not having employment opportunities, they make less money, which causes their own loans to not be paid appropriately. With no one being able to pay their loans appropriately, the banks are left with mounds of debt that they simply do not have the monies to cover.

Sub-Prime Mortgages were the first that were impacted. Rates climbed at alarming rates, doubling if not tripling the monthly mortgage payments that American's were required to pay. Remembering that these mortgages were originally made to those with "not enough income" to pay the actual mortgage, or to those with "credit concerns". This has led to the largest foreclosure rate in history. Not only do the banks have mounds of debt for these "bad" loans, now they are acquiring properties that no one can or will buy.

The deregulation of our Finance and Real Estate Industries have led to shady and illegitimate lending practices, that the taxpayer must pick up the tab for. The same taxpayers that have lost their jobs due to corporate greed now have to bail out those "giants" with what little money is left.

The Wall Street Giants

Deregulation has enabled Big Business to grow beyond leaps and bounds. "Trickle Down Economics" have assisted that growth, but who is really profiting? It isn't the American People, it is the few at the top who have been successful. By taking a look at only the failed companies that have required Government attention, you can see who profited and who was affected.

Countrywide, whom offered Sub-Prime Mortgages, CEO Angelo Mozilo sold off $140 Million in Countrywide stock prior to leaving the company. Upon leaving Countrywide, Mozilo stood to gain a severance package of more than $110 Million. Bear Stearns, who also offered "risky" loans, had assets totaling $395 Billion. CEO James Cayne dumped more than $1 Billion, in personally held Bear-Stearns stock, for a mere $61 Million prior to leaving. There is no confirmation as to a severance package. Freddie Mac CEO Richard Syron was scheduled to leave with more than $21 Million in cash and assets, while Fannie Mae CEO Daniel Mudd is scheduled to walk with more than $14 Million in cash and assets - both companies were completely involved with Sub-Prime Mortgages. AIG CEO Robert Willumstad has reportedly "given up" his severance package of more than $22 Million.

This is an extremely short list of CEO's that have squandered monies in order to benefit themselves. While the American Taxpayer is bailing out these mega-giants, their decision makers are leaving with Billions of Dollars. Does that seem fair? It is an all too common occurrence, that has plagued US Corporations and the American People. The deregulation of American Business has enabled this type of "upper echelon" behavior and greed.

Who Allowed This To Happen?

There is no single person that caused this modern catastrophe, but a slew of Politicians on Capitol Hill that have been "bought" for years by lobbyist, on behalf of those Giants. Companies have employed "lobbyists" for years, soaking those individuals with money to spend on Politicians. In return, those Politicians accepting the monies would fight for that companies wants and desires in Congress, the Senate. Yes, the officials that you have elected have been "bought off" by Corporate America, to the tune of Billions of Dollars per year. The more money a company spends on lobbying, the more they were able to achieve in government; profits grew.

Rick Davis, former President of Homeownership Alliance, led the Advocacy Group which soaked politicians with Billions of Dollars on behalf of Fannie Mae and Freddie Mac, in order to curb regulation. If the name "Rick Davis" sounds familiar, it's because he is Sen. John McCain's Campaign Manager for the Presidency. John McCain has reportedly received more than $2 Million from Rick Davis' lobbying efforts.

William Maloni, Fannie Mae Senior VP of Government and Industry Relations ('83-'04), became inflamed by Sen. McCain's "forgetfulness" about his receiving lobbyist monies and gifts. After seeing a Campaign Ad of McCain's, Maloni was quoted:

"Yesterday, Senator John McCain released a television commercial attacking Barack Obama for allegedly receiving advice on the economy from former Fannie Mae CEO Franklin Raines.

It is an interesting card for Senator McCain to play, given that his campaign manager, Rick Davis, was paid by Fannie Mae and Freddie Mac several hundred thousand dollars early in this decade to head up an organization to lobby in their behalf called The Homeownership Alliance. ...

I worked in government relations for Fannie Mae for more than 20 years, leading the group for most of those years. When I see photographs of Sen. McCain's staff, it looks to me like the team of lobbyists who used to report to me. Senator McCain's attack on Senator Obama is a cheap shot, and hypocritical."

McCain's Campaign Adviser, Charlie Black owned a Lobbying Firm that represented Freddie Mac for several years. His Campaign Finance Chairman, Wayne Berman, was a Fannie Mae Lobbyist.

It has been reported that Sen. McCain has taken monies from more than forty different lobbyist, raking in an estimated $100 Million [gifts, monies, contributions] over the 26 years he's been in government. McCain was also a defendant in the Keating Five Scandal, in which he and four other Senators pressured regulators on behalf of Lincoln Savings and Loan's CEO, Charles Keating. Keating had made numerous campaign contributions, to the tune of more than $2 Million for Sen. McCain alone. The most frustrating part of the Keating Five scandal is that Lincoln S&L brought upon the Savings and Loan Crisis of the late 80's. Keating, just as the "Giants", had illegitimate and risky business practices - by taking out loans, on loans, with other people's money and no feasible way of recovering it. That is, without another loan. McCain is the only Senator entwined in the Keating Five Scandal that is still in office.

For a much better view of McCain's connections to lobbyist, please visit mccainslobbyists.com/

Sen. McCain has been an enormous opponent of Regulatory Measures, and has consistently fought to minimize regulation on the Financial and Business Sectors. McCain has said that he would like to "deregulate the healthcare industry just like 'we' did the banking industry", on the 2008 Campaign Trail.

McCain has voted in favor of deregulation time and time again:

He voted "NO" on Bill: S 1: A bill to provide greater transparency in the legislative process, with a purpose of exposing contributions from lobbyist, ensuring that lobbyist gifts are reported, as well as restrict new lobbyist to terms and conditions.

He voted "NO", three times, to Bill: HR 1058: An Act to amend the Federal securities laws to curb certain abusive practices in private securities litigation, and for other purposes.

While Sen. McCain has not been the only Senator to receive lobbyist funding, he has not collected as much money from lobbyists as some other Senators, nor has he been the only Senator to vote YES for deregulation. He IS, however, currently running for President of the United States. Therefore, this type of activity should be known by all voting parties, in order to make the best possible educated decision.

The actions of Politicians such as John McCain have enabled the Market Meltdown that American's must now endure. Corporate Greed, Greedy Politicians, and American Voters that have no clue about what's going on in our Government... This is what has led to our current state. These actions are reprehensible, and in some cases, criminal.

Congress is currently trying to map out a plan to bail out our bank's failed mortgages, to the tune of more than $700 Billion. Corporate Giants are using taxpayer dollars to reorganize and sell off portions of the company in order to stay afloat. Unemployment is at it's highest rate in more than twenty years, with the loss of more than 650,000 American Jobs.

Deregulation was the cause, the Economy is the effect. Regulations were enacted by a President that realized that the same greed and corruption that caused the Great Depression, could and would happen again, without it. By Politicians deregulating our industries, they enabled that greed and corruption to, once again, break our Country.

- S.K. La Rue, WhyWeVote.com