Category Archives: Economy

Thank You Captain Obvious – Do We Really Need A Deficit Panel?

This past weekend the Obama administration worked incredibly hard [sarcasm included] to establish a deficit panel.  If any American doesn’t realize that we have an unprecedented deficit, they must be living in a cave or a bunker for 60 years.

Obama has named a Republican from the Reagan era, Alan K. Simpson and a Democrat from the Clinton era, Erskine Bowles to lead this new commission established to curtail the deficits that may wind up paralyzing this nation. 

The commission that Mr. Obama plans would have 18 members, 10 Democrats and 8 Republicans. The president would name one other Republican and three additional Democrats, none of whom would be administration officials or lawmakers. For the remaining 12 members, the leaders of both parties in the House and Senate each would choose three lawmakers.

The commission would try to recommend by December — after the midterm elections — how to balance the budget by the fiscal year 2015, not counting interest payments on the debt; those are projected to be nearly 3 percent of the gross domestic product that year, a size that most economists say is the maximum acceptable. Also, Mr. Obama wants a commission to propose longer term changes in revenues and the entitlement programs to rein in a debt projected to be 77 percent of the economy’s output by 2020. A supermajority of 14 of the 18 members would have to concur to reach a deal.

We definitely need to resolve our debt crisis and stop building our deficits taht will enslave younger generations to the government and other foreign investors.  However, I find this interesting since Obama is requesting a commission but he is in fact the one president who has spent more than all others combined in his first year.  He is also creating unsustainable budgets that could create disasterous results in the long-run.  Again, as Michelle Malkin aptly calls it, this is kabuki theater.  This is probably another ploy to appear as if he is working to help, but really has no intention of turning from his ideological partisanship of big spending, high taxing, big government.  None of this surprises me in the least now that Politico is reporting that he is already working on his 2012 campaign.

So far only 3 leading Senate Democrats have been named to the panel and the rest have yet to be named.  This is supposed to be a bipartisan panel, but the Democrats, along with Bowles will have the upperhand with 11 members to 9 Republicans. 

Senate Majority Leader Harry Reid has named Budget Committee Chairman Kent Conrad of North Dakota, Finance Committee Chairman Max Baucus of Montana and Senate Democratic Whip Dick Durbin of Illinois to the panel, which is charged with recommending spending cuts and possible revenue increases to bring the deficit to managable levels by 2015.

I trust the current crop of bureaucrats as far as I can throw them, and for a 5′ 0” tall female that’s a pretty short distance!  I’m not sure anybody in our congress knows how spending, business, or finances work from a real world perspective so this will be interesting to watch.

Who knows, maybe this is what Obama meant when he was talking about green shoots and new jobs (bigger government and more commissions that just add to the inefficiency and bureaucracy).

1 Comment

Filed under Congress, Democrats, Government Spending, National Debt, Obama, Obama Administration, Republicans, Unemployment

The Obama Administration Continues To Play Favorites With Unions

We are all well aware that the Obama administration is beholden to the unions like SEIU and the UAW who gave millions to then Senator Obama during his campaign for the White House. However, what many may not know, or have forgotten is the fact that Barack Obama signed three executive orders that would make it easier to favor unions and unionized companies.

Here is the synopsis of the three pro-union executive orders signed early in 2009:

The first executive order requires employers with federal contracts above $100,000 in value to post a notice in the workplace informing their employees of their rights under the National Labor Relations Act (NLRA), including the right to join a union. This order also repeals Executive Order 13201, issued by President Bush in 2001, that required federal contractors and subcontractors to post so-called “Beck notices.” Such notices, named after the Supreme Court’s decision in Communication Workers v. Beck, 487 U.S. 735 (1988) informed employees covered under the NLRA that they could not be required to join a union or maintain union membership in order to retain their jobs and that employees who are subject to a union security clause and choose not to be union members may object to the purposes for which mandatory union dues are used.

The second order applies to federal contractors who provide services to government buildings. While there are several exemptions, under this new executive order, when a federal agency changes contractors, the new contractor will be required to offer jobs to the non-supervisory employees of its predecessor. This order is designed to try to ensure that when a unionized contractor is replaced, its successor will be obliged under existing labor laws to bargain with the original contractor’s labor union.

The third order prevents federal contractors from being reimbursed in federal funds for money spent to oppose (or support) union organizing efforts among their employees, which could violate first amendment rights if ever challenged in a court of law due to government interference and a company’s freedom of speech.

That’s why the latest news coming from the Obama administration is very disconcerting since they are planning on supporting proposals that will favor unions and unionized companies bidding on federal contracts, which will only increase the size of the government, the amount of bureaucracy, and the cost of contracts.  However, it’s not anything we don’t already know since Obama’s philosophy seems more like “Go big, or go… you know something? just go big because you won’t have a home by the time our administration is through.”

Here’s more information regarding the proposal via the Daily Caller:

The proposals, collectively known as “High Road Contracting Policy,” were first reported earlier this month. The basic elements of the policy would give preference to companies bidding on federal contracts that pay their hourly workers a “living wage” and provide health insurance, employer-funded pension plans and paid sick days.

Following the report Republicans slammed the proposal, with Sen. Tom Coburn of Oklahoma referring to it as “backdoor card check.” Other critics, led by Sen. Susan Collins of Maine, worry the new rules would increase the cost of government contracting by as much as 20 percent, or more than $100 billion annually, while further slowing the procurement process.

Proponents of the proposals, including the Center for American Progress and the Economic Policy Institute, argue government contracting should be used as a vehicle for expanding the middle class and many of the workers that would be impacted by the changes end up costing the government more through public assistance programs such as Medicaid and food stamps. David Madland of CAP also pointed to studies on the state and local level that show no cost increase following the implementation of similar policies.

However, the White House did admit that contracting costs would increase if this proposal went through.  Pardon me if I’m a little skeptical and a little tired of unions being used as the end-all-be-all of the middle class.  Most of the middle class are professional workers or even blue collared workers who don’t belong to unions.  Take for example my father – he’s a mechanic but doesn’t belong to the UAW, much like many of his co-workers.  Does he make a ton of money? No, he’s just simply middle class and thus it is completely disingenuous for anybody to equate unions with the middle class at all times.  It seems as if the current crop of bureaucrats would love nothing more than for the true middle class to be unionized and therefore controlled and dependent upon the federal government.

And lest we forget some of the eye-opening clips of Obama speaking with organizations like SEIU:

{My favorite part is Obama telling SEIU that they should want a leader who can tell the truth… Interesting that he’s now been caught in many lies, most recently ACORN}

1 Comment

Filed under ACORN, Big Labor, Constitution, Corruption, Economy, Hypocrisy, Obama, Obama Administration, Progressivism, Unions

1st Ever National Tea Party Convention

It’s been a week since I first made my journey south to Nashville, TN, to attend the first ever National Tea Party Convention put on by Tea Party Nation (TPN), and unfortunately, due to rescheduled flights and Snowmageddon, I haven’t had the opportunity to write about it before now — so here it goes:

I have to honestly say that the Tea Party has been characterized and painted in such a dishonest way by the media.  Everyone I met was incredibly excited to be involved in politics and their government.  There were people from all genders, age groups, and yes, there were minorities at the conference. The tea party represents a broad and expanding group of Americans who are simply “sick and tired of being sick and tired,” with their government and their representatives. {Only 600 tickets were sold to the event so this was just a small representation}

It is accurate to say that many who are part of the tea party movement are not fond of Obama’s policies or his ideology, but it would be disingenuous to stop there.  Most tea partiers are trying to return this country to a republic rather than the oligarchy it is heading towards.  The constitution is the law of the land and should be adhered to and treated as such.  The members of this grassroots movement are average, everyday Americans; many of which have jobs or are retired.  They pay taxes, work hard, believe in personal responsibility, a hand up not a hand out, fiscal responsibility, small government, and strong national defense.

I guess I have difficulty understanding how the media could paint citizens engaging in debate, in civics, in government, and expressing peaceful dissent, as being extremists, nationalists, and racists.  What is so wrong with expressing the principles you believe in?  Protesters were “in” when they were protesting the Iraq War and anything Bush; holding up swastikas, BusHitler signs, and even making a fake guillotine with a Bush head.  But now the media doesn’t like the dissent when it goes against the very principles they espouse.  There is something very wrong when the 4th column can’t remain objective.  I have no problem if you are liberal and in the media, but when you are ‘on duty’ act like it, then take your opinions and ideology home with you.

With that being said – there will always be people on both sides of the aisle that are considered extreme or fringe, which is normal.  The left and right both have their fair share to deal with when it comes to that, but nobody should categorically try to make an assumption of the whole based on its parts.

I personally hope that the tea party remains an independent entity and doesn’t fall into the trap of becoming an established political group.  What is so attractive to the movement is its appeal to all parties that share the same conservative principles.  Many would be surprised that many Democrats (i.e. JFK Democrats) are more conservative especially when it comes to fiscal policy.  Independents are also conservative in different aspects.  I, for one, have never been part of a registered party and have always considered myself unaffiliated because the establishment on both sides of the aisle needs reform.

All in all, I had a blast, and the entire convention surpassed my expectations.  I met a lot of great people, and had tons of fun – believe it or not, Conservatives definitely know how to have a good time! 🙂 There are lots of people working hard to put the right people into office so we the people can clean up our government.  It’s important to note that many involved are still very new to politics and grassroots activism so mistakes and missteps will be made along the way – but as long as we can remember Calvin Coolidge’s words referring to Persistence, the Tea Party can become a force to be reckoned with:

“Nothing in the world can take the place of persistence.
Talent will not; nothing is more common than unsuccessful men with talent.
Genius will not; unrewarded genius is almost a proverb.
Education will not; the world is full of educated derelicts.
Persistence and determination alone are omnipotent.
The slogan “Press On” has solved and always will solve the problems of the human race.”

Here are some photos of the event:

Photobucket

Many people were excited to see Sarah Palin on Saturday – one of her fans taped her poster to his balcony!

Photobucket

The Tea Party Presser where both Judson Phillips & Mark Skoda spoke – the MSM was there in droves

Photobucket

The Presser was held at lunchtime on Friday – Angela McGlowan would speak later that evening and give a wonderful speech and also announce her candidacy as a Republican running in Mississippi. The other men next to her were part of a documentary crew that have already made one movie about the tea party.

Photobucket

There were so many great people who attended and I was afforded the opportunity to have lunch and hang out with Adam Andrzejewski who unfortunately lost the Republican primary for Governor in IL, but I have a feeling there is more in store for him!

Photobucket

The men who wore costumes from our founding era were awesome – many of them were in the Tea Party documentary and it made the event a lot of fun.

Photobucket

Here is a very small portion of the line awaiting Sarah Palin and the tea party banquet on Saturday night (people were in line by 3:30/4pm when the doors weren’t evening opening until 6pm).

Photobucket

Sarah Palin arrives to eat dinner at the banquet – We got some great seats that were about 50 feet away.

Photobucket

We got to hear a new song for the movement, I believe it was called “American Heart” by Jon David.

Photobucket

Sarah Palin begins her speech (I had to take these pictures with my blackberry so the lighting is very bad).

Photobucket

The view from the jumbotron

Photobucket

Top off the night by celebrating a successful convention with people like Andrew Breitbart, Glenn Reynolds (aka Instapundit), and so many others – Saturday night was a blast!

Photobucket

Of course we had to end the night by signing the official flag for the Tea Party convention. {that’s my friend Burnsy BTW}

1 Comment

Filed under Constitution, Economy, Establishment, Government Spending, Media, MSM, National Debt, National Security, Progressivism, Protests, RINO, Sarah Palin, Tea Party

Narcissist in Chief Gives Himself a B+ for the Year

Jake Tapper Reports:

“Good, solid B-plus,” the president said. 

Explaining, he said, “we have inherited the biggest set of challenges of any president since Franklin Delano Roosevelt. 

“We stabilized the economy, and prevented possibilities of a Great Depression or a significant financial meltdown. The economy is growing again.

“We are on our way out of Iraq. I think we’ve got the best possible plan for Afghanistan.

“We have reset our image around the world.

“We have achieved an international consensus around the need for Iran and North Korea to disable their nuclear weapons.

“And I think that we’re going to pass the most significant piece of social legislation since Social Security, and that’s health insurance for every American,” he concluded.

Pressed by Oprah as to why only a B-plus, the president said, “B-plus because of the things that are undone. Health care is not yet signed. If I get health care passed we tip into A-minus.”

If this doesn’t scream sheer ego and arrogance, I don’t know what does.  Most intelligent individuals usually know that when a question of this sort is thrown at you, the proper response would be “I believe the American people are more apt at giving me a grade than I would be…” But of course, Mr. Mirror, mirror on the wall, had to answer and gave himself a high score.

If recent polls like Gallup or Rasmussen are any indication of how the American public actually feels about him and his grade, it would seem that he really needs some extra credit or maybe some one-on-one time with his professor, the public.  Obama’s approval rating has taken a nose dive while he sits at only 44% approval and he technically still has 1 more month until he reaches his one year mark.

All of the things that Obama mentions are outright lies as far as being accomplishments or things that most people look at much differently than he does. 

Take for example the assertion that he has stabilized the economy; many argue that just because stocks are rising that does not mean the economy has stabilized or gotten better.  We are on unprecedented territory and the unemployment rate is still in double digits.  Stocks also correct themselves for inflation which is what would appear to be happening, as well as the fact that many businesses have had to cut their workforces and become more efficient with less people.  For now, companies are reaping the rewards of more efficiencies, but eventually that will plateau if they want to move forward and stay ahead of their competition. There is still a chance that the economy could experience a double dip, and if it doesn’t, the most likely situation will be heavy inflation or Japanese style deflation with no growth for years to come.

How long until people get fed up with his blame game rhetoric that he has inherited this situation?  He has inherited the situation from every corruptocrat dating back more than just Bush’s 8 years.  We should throw in Greenspan, Clinton and even Carter for that matter if we want to really get at the heart of the issue.  He should also include himself since was in fact legal council for ACORN and lead the charge in the 90’s to obtain a settlement on a lawsuit indicating that credit scores are apparently discriminatory and the CRA should be expanded – hence subprime… I could go on, but I’ve vented enough on that topic.  I just can’t stand people who continuously play the victim, meanwhile, as they point the finger, opportunities and life pass them by.  I have no respect for individuals who can’t take responsibility – and this is supposed to be the leader of the only super power left in the world!?

I’m not sure where he comes off saying that we are pulling out of Iraq?  I’ll believe it when I see it.  Seems like he is carrying out Bush’s policies for now.  I think that stating his plans for Afghanistan are the best are delusional at best.  Maybe, if he had listened to his general in the first place, we wouldn’t have had so many killed over the couple of months (more so than any time when Bush was in office).  He still did not give them the # of troops requested but merely cut the request in half – I will forever call it Halfghanistan.

We have reset our image around the world? Funny, those whom I know living abroad who were excited about Obama, even after I tried to tell them the truth about his record and his ideology, are only now realizing what a disaster he is.  He continues to snub our allies, bow to other leaders, and apologize for all of America’s perceived wrongs on his travels abroad — this has made him a laughing-stock.  The liberal media lets him get away with it, but I don’t expect it to continue forever, if he continues to decline in the polls — eventually real sentiment will bubble to the surface.

When has Obama done anything about North Korea or Iran? His foreign policy seems to be avoidance.  He has not called for harsher sanctions, he is not using anything other than words to try to disarm Iran.  While he stares at himself in the mirror and relishes the media attention, Iran is creating weapons of mass destruction with their plutonium/uranium enrichment plants.

Health care legislation will definitely be significant but significance doesn’t always mean good.  It is absolutely maddening that those in DC could care less about the polls on health care. Most of America disapproves of this bill and the way the government is handling it.  I’ve seen the way government has screwed up business, the economy, and everything else it has touched, there is no way I want them making decisions about my health! 

So continue to grade yourself a B+ Mr. Ego… I can only hope that one of these days somebody in the media has a ‘Come-to-Jesus’ moment of clarity and decides to do his/her job for the good of the country. 

I suspect that the true grade will come for Mr. President in November 2010 – EPIC FAIL.

Leave a comment

Filed under Economy, Health Care, Media, MSM, National Security, Obama, Obama Administration, Progressivism

While You Were Out: A $447B Omnibus Chock Full of Earmarks Passed

Photobucket

 

Just when you thought the government couldn’t spend any more the House passes the second Omnibus of the year, full of 5,912 earmarks – for ‘jobs,’ I’m sure.

The omnibus is a little different from normal since it rolls 6 spending bills into 1 in order to pass this massive earmark legislation as quickly as possible. The House only passed the bill by a 221-202 vote with no Republican support and 28 Democrats who dissented.

The Hill reports:

The spending bills in the package are the ones for: the Transportation and Housing and Urban Development departments; the Commerce and Justice departments and federal science funding; financial services and general government agencies; the Labor, Health and Human Services and Education departments; military construction and the Department of Veterans Affairs; and the State Department and foreign operations.

Congress has a Dec. 18 deadline to get the conference report signed into law to avoid a government shutdown. A continuing resolution, which allowed government to operate without approved funding after the Oct. 1 start of the fiscal year, expires on that date.

GOP members raised concerns that the bills will contribute to a 12 percent discretionary spending increase over last year.

Democrats contend that this bill will help the economy and create those much heralded and almost legendary ‘jobs’ they love to tout.

An example of delusion:

“The country is struggling to overcome the longest and deepest economic downturn since the Great Depression,” said House Appropriations Committee Chairman David Obey (D-Wis.).

“The bill before us today is one of the key measures Congress will pass this year to help address those problems and provide relief for millions of hardworking Americans caught in a struggle for economic survival,” Obey added in a statement.

I am still trying to figure out how much spending needs to take place in order for the economy to revive itself – and more than that, I’m trying to understand how government can revive anything when they produce nothing and get a majority of their revenues through taxes – the same people they are trying to ‘help.’

Here is a list of some of the thousands of earmarks (it should be noted that this is chock full of Democrat and Republican goodies):

If you want to see what your lawmakers are up to, here is a list of the bills that will be included in this Omnibus, and a link that lets you check out what’s in each part. These are all pdf files.

* Transportation & Housing – http://bit.ly/7jSVIv

* Commerce, Justice, Science – http://bit.ly/7pAWlc

* Financial Services – http://bit.ly/5nq65O

* Labor, Health, Education – http://bit.ly/5RJ1rn

* Military Construction & Veterans – http://bit.ly/5vMLpu

* State Department & Foreign Aid – http://bit.ly/7oEYgX

Five of the six bills have earmarks (there are none in the foreign aid bill) and by my count, there are 5,912 in all, with Labor at 1810, Transportation at 1548 and Commerce at 1515.

If you want to search for earmarks in your state, here is a little trick to find them more quickly: search by using comma, space, and the two letter abbreviation for your state.

If you want to see some of the earmarks from the first omnibus you can look here.

As an FYI, this bill was immediately passed to the Senate today after it passed the House.  Reid is hoping to pass this bill before the weekend, however, there may be good news since it has been delayed by various Senators.  Melt the phones if you are concerned about the superfluous spending!

1 Comment

Filed under Congress, Government Spending, National Debt

The DC Disease of Cronyism: Hillary’s Pollster Gets $6M in Stimulus Funds

Hillary Clinton’s pollster, Mark Penn, received funds for two of his firms from the recent stimulus bill.  The same bill that was supposed to put jobless Americans back to work.  The evidence that this bill was merely a pay off to all of DC’s cronies continues to pile up. 

Mark Penn received nearly $6 million in funds (From the New York Daily News):

Hillary Clinton pollster Mark Penn is looking at some pretty sweet numbers – namely $6 million in federal stimulus contracts awarded to two firms he controls.

The Hill newspaper reported Wednesday that $5.97 million from the $787 billion stimulus package helped preserve three jobs at Burson-Marsteller, the global PR firm headed by Penn.

The Obama administration awarded the contracts to Burson-Marsteller to work on a public-relations campaign to advertise the national switch from analog to digital television.

A portion of the funds also went to Penn’s polling firm, Penn, Schoen & Berland Associates, according to federal records.

Please save the moral equivalency – this is rampant on both sides of the aisle and the corruption needs to be stopped!

Leave a comment

Filed under Corruption, Democrats, Government Spending, Obama Administration, Republicans, Stimulus

Big Labor = Big Corruption; Jimmy Hoffa Would Be So Proud

It’s time to clean house!  I’d like to see a sweeping investigation into any and all big labor unions, “non-partisan” taxpayer funded groups, lobbyists, and major corporations that donate to politicians. 

Union bosses are still acting much like mafia characters, and some would argue that’s what they in fact are.  A union boss is admitting to using/exploiting his union members as political activists.   

An interesting admission by James A. Williams, president of the International Union of Painters and Allied Trades in Philadelphia, can be seen in an interview he did with the Philly Inquirer. It is an admission that confirms one of the things that anti-union folks have been saying for years, but one union officials are loath to admit.

While discussing the hard economic times, the Philly Inquirer asked how the recession was affecting the union. In his answer President Wilson admitted that his union uses out-of-work members for “political events.” Wilson mentioned that they lower dues to $1 a month after a member has been out of work for more than six months, but that isn’t just the kind hearted union looking out for its members. No, the union expects something in return for that lowering of dues. 

Would exploitation and quid pro quo be considered commendable by the bleeding heart liberals?  Union leadership has always been in the business of lining their own pockets and achieving their own objectives, no matter who gets stepped on along the way, including their own members.

Obama has long been a union advocate, as are many other Democrats.  Unions became part of the Democrat voting block after FDR focused his efforts on creating certain groups that could be used for votes.  Big labor, since that time, has been a large contributor to the DNC.  Obama has spoken at the UAW, SEIU, and AFL-CIO conventions numerous times and most recently this past week.  The latest push for union control of ports and the fact that Obama supports easing the rules of union organizing should give anyone pause. 

President Obama gave a corker of a campaign speech yesterday at the AFL-CIO convention in Pittsburgh, promising to deliver on his promise to ease the rules for union organizing. If you want to know what this means in action, consider the current Teamsters play to control California ports. 

[…]

The American Trucking Association sued to block the rule, and with good cause. Federal law has long pre-empted state and local regulation of interstate trucking “prices, routes and services,” for the reason that international and interstate trade depend on uniform regulation. The courts have recognized this, and even the Ninth Circuit Court of Appeals found that the new port rule had likely violated the Constitution’s Commerce Clause, which led to a court injunction earlier this year. Trial on the merits of the rule has been set for next year. 

[…] 

Unionization would give the Teamsters enormous bargaining leverage over work rules and pay, sharply raising the cost of moving goods, as well the power to shut down ports in a strike. Some 32 trade groups, from farm organizations to the National Retail Federation, signed a recent letter to Mr. Oberstar opposing the legislation. The response of shippers would be to divert cargo to Mexico or Canada, or pass through an expanding Panama Canal for ports on the Gulf or East Coasts. California doesn’t need more reasons for business to flee the state. 

For a group who continues to point their finger at George Bush and the Republicans for the current state of the economy, it sure seems as though they would prefer the economy to stay stagnant and hand it over to big labor and government, two of the causes for our hardships now. 

An example of the sheer lack of morals and utter corruption that has corroded big labor for quite some time is the recent conviction of Jaime Enrique Feliciano, a 50 yr. old man sentenced to 25 years in prison for child molestation, possession of child pornography and the intent to manufacture child pornography.  So who is Feliciano?  He was the former district president of the California SEIU, a proud partner of ACORN.

It’s time to wake up and take control of our country again.  These big labor organizations and large non-profits that are acting as arms to the government, doing their bidding, need to be disbanded and swept clean.  People on both sides should be sick and tired of the corruption, the ponzi schemes, the pay-to-play politics, and the lack of consideration for the people of America.

Leave a comment

Filed under ACORN, Big Labor, Corruption, Democrats, Double Standards, Economy, Establishment, Obama, Unions

Irrational Economics

I have to tend to believe that when there are so many unknowns and people believing there is an unending crisis, they begin to lose their minds.  Politicians and those in control of passing laws, creating new approaches to resolve the economic crisis, and regulators from financial entities, begin to create things willy-nilly to find a solution as quickly as possible.  These approaches, however, can be rushed and wind up making situations worse or just completely dumbfound the public.

Two recent examples of the lunacy regarding our markets are 1. the new creation of McG’s [sic] for the mortgage-backed securities much like what the GSE’s, Fannie & Freddie, dealt with, and 2. the Chinese government admitting that the US and Chinese governments are creating more bubbles to resolve the original bubbles.

HUH!?

I thought the point of this financial ‘Crisis’ was to find the mistakes and learn from them – not repeat them!?  When people perceive a crisis they either pull through with flying colors and act valiantly in the face of pressure, or they crumble and act irrational.  I think we are seeing the latter of the two.

McG’s would act as a government backed regulator, that would take the place of Fannie and Freddie, but their debt will not be guaranteed by the government, another similarity of the GSEs. The reason Fannie and Freddie crashed was due to it’s over-leveraged position and no government guarantee on their debt/credit risk.  There are arguments that the leveraging itself did the damage and that the government can be usurped to avoid the risk in the future if caps are put on the amount of debt and risk a company can carry.  Some other notes about McG’s: Interest and Credit would be split between bond holders and the McG’s.  Private investors would make profit from these McG’s, but taxpayers, who would establish the McG’s would receive nothing in return.

However, the full story on the notion of McG’s is best explained through a video clip from CNBC.  It’s a shame that more people don’t watch CNBC, but I assume a person has to have the stomach to watch markets, numbers, and finance.  Personally, getting my masters in Finance has been enough when it comes to listening to financial topics for hours on end.

There have been other concerns raised regarding this new idea from the MBA as well as some suggestions from Market Ticker:

This is idiotic. Let’s count the ways:

-A “strong regulator” eh? You mean like the FHFA? Fannie and Freddie had a so-called “strong regulator” that nonetheless allowed them to lever up at 80:1 (or 200:1 depending on how you looked at their books) which was clearly outrageous on its face and led to their demise.
-That same “strong regulatory framework” had Fannie and Freddie buying other-than-actual-prime paper. It detonated. Any questions?
-Fannie and Freddie turned into revolving-door agencies with the government, winding up as political tools on both sides of the aisle.

Simply put, credit risk is controlled by imposing leverage limits on buyers. This is done by requiring down payments. A 20% down payment requirement limits leverage to 5:1, and unlike a political process it requires no regulation – you simply make it unlawful to give out mortgage money without 20% in cash on the barrel. Presto: credit risk problem solved.

The 100-year-old set of standards:

-20% down payments, in cash, are required
-28% “front end” (all housing expenses) maximum ratio
-36% “back end” (all debt service including housing) maximum ratio

China has also confirmed what many of us have believed for quite some time. Our government and many others are creating more bubbles to try and fix the old ones.

In a phenomenal demonstration of frankness and true economic assessment, the head of the China Investment Council, Lou Jiwei, who controls China’s $298 billion sovereign wealth fund, admits the ponzi nature of today’s markets:

Both China and America are addressing bubbles by creating more bubbles and we’re just taking advantage of that. So we can’t lose.

Indeed, they can’t lose thanks to the criminal silence on behalf of Mr. Jiwei’s US financial counterparties. It doesn’t get any simpler than that folks. Keep in mind Madoff was thrown in jail for a few hundred years for much less: what’s $55 billion when you are dealing with a $20 trillion+ global equity market Ponzi scheme. And yet both China and the US continue their struggle to perpetuate a Ponzi, with the full implicit backing of all financial, regulatory and legal authorities. The system is now officially broken, even ignoring the conspiratorial ramblings of fringe bloggers.

Haven’t our financial markets been set-up much like ponzi schemes for a while now? The government intervention and involvement in our economy has made it ‘fake’ for some time now, and the actions of our current administration is certainly making it much worse.

This is just a simple lesson in irrational economics. Then again, we couldn’t expect much else from the far left – people like Krugman who believe a third stimulus is needed (yea that’s the ticket!) or Van Jones who believes that a new green economy should take the place of our current capitalist structure for social justice purposes. Care to take a lesson in some basic supply and demand equations?

1 Comment

Filed under Economy, Government Spending, National Debt, Obama Administration

An Inconvenient Health Care Truth For Media Conveniently Afraid Of Statistics

The media during Bush’s 8 years certainly was not afraid to pull out any statistics that would discredit Republicans or the administration.  One of their favorite statistics was the number of deaths during the Iraq War. 

However, now that there are wars still being fought in Afghanistan and Iraq, the media has conveniently left that tiny issue to the way-side.  The only individual who still has her principles is Cindy Sheehan.  I may not agree with Ms. Sheehan’s politics, but I can at least commend her for her consistency. (via the Examiner): 

After receiving the email, I asked Sheehan to give me a call, so I could verify that the note in fact came from her.  She did, and we discussed her plans to protest next week in Martha’s Vineyard, where President Obama will be vacationing.  “I think people are starting to wake up to the fact that even if they supported Obama, he doesn’t represent much change,” Sheehan said.  “There are people still out here who oppose the war and Obama’spolicies, but it seems like the big organizations with the big lists aren’t here.”

I asked Sheehanabout the fact that the press seems to have lost interest in her and her cause.  “It’s strange to me that you mention it,” she said.  “I haven’t stopped working.  I’ve been protesting every time I can, and it’s not covered.  But the one time I did get a lot of coverage was when I protested in front of George Bush’s house in Dallas in June.  I don’t know what to make of it.  Is the press having a honeymoon with Obama?  I know the Left is.”

I have more appreciation for those who stay true to their beliefs no matter what those beliefs are, rather than changing them based on whichever way the political wind is blowing, especially when your guy won the biggest office in the land. 

So I sit here scratching my head wondering why the media hasn’t reported the latest news coming out of Canada and their health care system?  The new president of the Canadian Medical Association states that Canada’s health care is imploding.  Canada has also encouraged its citizens to buy and use private insurance to ween them off of government-run health care. 

The former president of the Canadian Medical Association was on O’Reilly last night and confirmed the same thing.  Although O’Reilly, as usual, wasn’t letting him get his statements in completely, he intimated that there are not enough doctors able to cover the volume of people covered under their system.  This leads to rationing of care and increased costs to attempt to fund everyone.  Rationing is the only way to say you are covering everyone, and try to cut costs at the same time.

France also reported that it’s health care system is going bankrupt, nearly two weeks ago.  No mention of their single-payer system and the nightmare it created for the citizens of that country by the MSM.

The English system also has horrible statistics.  Their rate of survival for any cancer or serious illness is significantly worse than it is in the States.  The National Center for Policy Analysisalso conducted a study and concluded the NHS was putting the patient last.  If NHS was a business it would fail miserably based on its standard operating procedures and business practices that it chooses to implement.

The CBC has just released new statistics that show Americans’ life expentency is on the rise while deaths are not.  But I thought American health care was ranked last?  It’s amusing to hear liberals use the common argument that the US ranks 37th out of 37 countries when comparing their health care systems.  However, when you ask for the context of those statistics, since stats can be masterfully manipulated based on outside factors/variables used to conduct studies, it’s no wonder that the CATO Institute was able to debunk that ranking. 

Those who cite the WHO rankings typically present them as an objective measure of the relative performance of national health care systems. They are not. The WHO rankings depend crucially on a number of underlying assumptions–some of them logically incoherent, some characterized by substantial uncertainty, and some rooted in ideological beliefs and values that not everyone shares. Changes in those underlying assumptions can radically alter the rankings.

[…]while the United States ranks 37th, there is no ranking for which both claims are true. Using OP, the United States does rank 37th. But while France is number 1 on OP, Canada is 30. Using OA, the United States ranks 15th, while France and Canada rank 6th and 7th, respectively. In neither ranking is the United States at 37 while France and Canada are in the top 10.

Which ranking is preferable? WHO presents the OP ranking as its bottom line on health system performance, on the grounds that OP represents the efficiency of each country’s health system. But for reasons to be discussed below, the OP ranking is even more misleading than the OA ranking. This paper focuses mainly on the OAranking; however, the main objections apply to both OP and OA.

But, as Newsbusters reports, the media has conveniently overlooked the story regarding Canadian health care, especially when early proponents of Universal health care, like Hillary touted the system as a model the US should use. 

One would think that the media would want to get all facts out to the public, and unfortunately, if some of those facts get in the way of what they idealistically felt was the answer, then so be it.  The people will be better off knowing the truth and making their decisions on health care from there.  It may also help certain representatives who are on the fence.  It’s scary to know that the media is willing to throw the country down the toilet and inevitably bankrupt the nation in order to reach their liberal ‘Utopia.’ 

Facts just seem to get in their way.

1 Comment

Filed under Congress, Double Standards, Economy, Government Spending, Health Care, Hypocrisy, Media, MSM, National Debt, Obama, ObamaCare, Progressivism

Sarah Palin, Facebook, And The Washington Elite

Sarah Palin appears more and more like a comic book heroine as the months march on.  She has a common foe that is constantly attacking her from both sides of the spectrum; the Establishment.  The evil establishment has been sitting, rotting in the pits of the DC beltway.  Those who enter this black-hole, leave without morals, standards, common sense, or dignity.  Many are mutated into something they never intended to become.  Many pump their faces full of botox, insert hair plugs, lie for the sake of lying, or for the sake of money and power.  These political villains ooze corruption and their struggle has been finding the kryptonite to finally do in this heroine that manages to enact change via a keyboard and a social media platform: Facebook.

The beltway pundits like Krauthammer, i.e. elitist neocons, pounce on this woman and treat her as some kind of joke.  Also, take for example, the insiders at the NRSC, who wrote her off, and instead asked Newt Gingrich to speak at their event. Even though she wasn’t the headliner at the event the start of it quickly became about her, just ask the crowd inside. 

The DNC attacks her as the next radical, religious zealot conservative, although she is a major proponent of the constitution and states’ rights, and does not believe in forcing her beliefs on others.  The libs fear her and can’t stop talking about her even outside town hall events in Towson, Maryland. 

If Sarah Palin was such a non-entity and was no threat to the establishment or the powers that be in Washington, why is she still given so much face time and why is every single statement she makes on Facebook picked apart? 

It’s quite simple: This woman is the future and she is a threat.  She represents what I have been wanting to see out of politics for a very long time.  She is an average individual who has made it up through the ranks with only God, family, and herself to thank.  She has gotten ahead by hard work and progressing one step at a time in a cut-throat political world.  The founding fathers had envisioned a government that would be run by the people, for the people, and not by career politicians that treated their constituents like peasants, believing they were part of the next plutocracy/oligarchy/political dynasty.  Sarah Palin is the type of person who is not beholden to the special interests, the lobbyists, the political back-scratching and corruption that is so rampant in our government. The Messiah of ‘Hope and Change,’ currently occupying the White House, can’t even compare to the standards Sarah Palin has set and what it is she exemplifies.

You may not like Sarah Palin, but you cannot say she isn’t a force to be reckoned with. 

I’ll put it out there now, I am a big Sarah Palin fan, I have been since that fateful day at the end of August.  I will never forget where I was and when I saw her introduced: I was actually working out at the gym, running on the treadmill of the Mandalay Bay Resort in Vegas, doing a fist bump into the air.  For the first time in my female adult life I was enthused by a politician and actually believed in them.  I could tell that this woman was the genuine article and respected her for that fact alone.  Every blow she made to Obama during her RNC convention speech was just one more time I was jumping out of my chair clapping, and confirming that this woman is the future of politics. 

I do not believe that a person must have a specific degree to be able to run a business, a school, or a country.  I find liberal ivy league elitists lacking in wisdom.  I don’t want to make a generalization here, but most who have graduated from a top school known for its academics, excel in knowledge, book smarts, and theory, but try applying that to the real world.  What happened to real life trial and error or insight?  Wisdom is not gained through books, it’s gained through life experience.  Sarah Palin has experienced much in her adult life, and her career.  She has had to work hard to make ends meet and even put herself through school.  Let’s think for a moment about those who have been born into privilege or have had their schooling paid for, whether through family, friends or a Saudi acquaintance… Do they appreciate their education and the effort/money it took to get it?  Or does the individual who had to scrimp and save to make it just another year appreciate it that much more?  Does the person who had to save understand what it means to not spend beyond your means or does the silver spoon, political wanna-be?

It’s no coincidence that those who came from ivy league schools have gotten us into some of the biggest messes this country has seen.  Take for example Jimmy Carter, the genius, he made things so bad they had to create a new economic term; stagflation.  If you don’t see the parallels between him and the next coming of the messiah, the genius from Columbia and Harvard Law, you are fooling yourself.  And what about the liberals who call Bush a dummy? Well didn’t he come from Yale?  Don’t use the excuse that you need an ivy league degree to manage a country.  I have seen businesses come and go and some of the most successful companies have been built from the ground up by college and high school drop-outs.  Ronald Reagan was no ‘ivy leaguer’ and he turned our economy completely around.  He studied economics at a small school and became a ‘B’ actor, something he was later made fun of for as well as his affinity for mac n’ cheese! 

Sarah Palin’s recent statements have been concise and have hit through to the heart of the matter.  She is the only member of the GOP, besides DeMint, Bachmann, and a handful of others who are true conservatives, unabashedly, unapologetic for calling a spade a spade. 

At first, I too, thought death panels could just be a metaphor for what the end of life counseling and bureaucracy would become, but upon further investigation into the section, there is much to be said for the candor behind Mrs. Palin’s statement.  The provision in the bill was so incredibly vague that fear and caution should have been the common sentiment among those reading the bill.  Many times these convoluted bills are written in such ways that nobody can understand the legalese. The bills are passed, and only later, do representatives realize there were too many loopholes in the first place. There is a reason why that provision was taken out of the bill after Sarah Palin doubled down on her death panel statement.

Sarah Palin has continued to blast Obama and the liberal policies that are being concocted in DC.  She recently made a statement regarding Obama’s off-shore drilling and oil funding hypocrisy.  George Soros and Goldman Sachs have had plenty of influence on the company that Obama just gave $2B to – Petrobras.  Sarah Palin made the following statement:

Why is it that during these tough times, when we have great needs at home, the Obama White House is prepared to send more than two billion of your hard-earned tax dollars to Brazil so that the nation’s state-owned oil company, Petrobras, can drill off shore and create jobs developing its own resources? That’s all Americans want; but such rational energy development has been continually thwarted by rabid environmentalists, faceless bureaucrats and a seemingly endless parade of lawsuits aimed at shutting down new energy projects.

I’ll speak for the talent I have personally witnessed on the oil fields in Alaska when I say no other country in the world has a stronger workforce than America, no other country in the world has better safety standards than America, and no other country in the world has stricter environmental standards than America. Come to Alaska to witness how oil and gas can be developed simultaneously with the preservation of our eco-system. America has the resources. We deserve the opportunity to develop our resources no less than the Brazilians. Millions of Americans know it is true: “Drill, baby, drill.” Alaska is proof you can drill and develop, and preserve nature, with its magnificent caribou herds passing by the Trans Alaska Pipeline System (TAPS), completely unaffected. One has to wonder if Obamais playing politics and perhaps refusing a “win” for some states just to play to the left with our money.

[…]

Buy American is a wonderful slogan, but you can’t say in one breath that you want to strengthen our economy and stimulate it, and then in another ship our much-needed dollars to a nation desperate to drill while depriving us of the same opportunity.

Sarah Palin’s latest ‘take Obama to task’ moment occurred earlier today when she asked a question that many of us conservatives have been asking.  Why no tort reform?  I would think that we should fix the known problems that are smaller before tackling an entire system by overhauling it.  Tort reform is another lucrative business for the lobbyists, but those on the left conveniently forget that the liberal lobbyists are just as bad as the supposed ‘conservative’ lobbyists they love to demonize.  We have learned, however, that the evil insurance company lobbyists like PhRMA are actually on Obama’s dole as well.  The trial lawyer’s lobby, i.e. ABA, has had significant pull on Capitol Hill for years, and you can expect that they will not be mentioned by many of the politicians because most of them are probably old law school chums. 

If anybody knows about tort reform and a loser pays law, it would be Sarah Palin.  She saw, this past year, how a law that was intended for the right reasons, can be used and abused by partisan ideologues.  If Alaska had a loser pays law her ethics complaint issues would have been null and void.

First, we cannot have health care reform without tort reform. The two are intertwined. For example, one supposed justification for socialized medicine is the high cost of health care. As Dr. Scott Gottlieb recently noted, “If Mr. Obama is serious about lowering costs, he’ll need to reform the economic structures in medicine—especially programs like Medicare.” [1] Two examples of these “economic structures” are high malpractice insurance premiums foisted on physicians (and ultimately passed on to consumers as “high health care costs”) and the billions wasted on defensive medicine.

Dr. Stuart Weinstein, with the American Academy of Orthopaedic Surgeons, recently explained the problem:

”The medical liability crisis has had many unintended consequences, most notably a decrease in access to care in a growing number of states and an increase in healthcare costs.
Access is affected as physicians move their practices to states with lower liability rates and change their practice patterns to reduce or eliminate high-risk services. When one considers that half of all neurosurgeons—as well as one third of all orthopedic surgeons, one third of all emergency physicians, and one third of all trauma surgeons—are sued each year, is it any wonder that 70 percent of emergency departments are at risk because they lack available on-call specialist coverage?”
[2]

Dr. Weinstein makes good points, points completely ignored by President Obama. Dr. Weinstein details the costs that our out-of-control tort system are causing the health care industry and notes research that “found that liability reforms could reduce defensive medicine practices, leading to a 5 percent to 9 percent reduction in medical expenditures without any effect on mortality or medical complications.”

Read more from Sarah’s facebook page here.

This woman is leading the charge and the debate and she hasn’t even made any major public appearances since she stepped down from being Governor of Alaska.  She has simply written her opinions on her facebook page, and the political world, as well as the media, is once again, all aflutter. 

You cannot tell me that this Conservative woman from Alaska is not a threat or a superstar.

5 Comments

Filed under Congress, Double Standards, Economy, Health Care, Media, Obama, Obama Administration, ObamaCare, Sarah Palin, Tea Party