Deliberately Destroying America – Tea Party Nation

Deliberately Destroying America – Tea Party Nation.

By Alan Caruba

It has taken three and a half years into Barack Obama’s presidency for most Americans to realize that he has been deliberately destroying America by driving up the nation’s debt and deficit, reducing privately held wealth, forcing millions onto the public dole, undermining its moral structure, and weakening the nation’s reputation internationally..

His latest lie is that “the private sector is doing just fine”, but the numbers tell the whole story and one can find them on an excellent blog, Economic Collapse, that offers seventy examples:

– The official U.S. unemployment rate has been above eight percent (8%) for 40 months in a row. Unofficially, it is estimated to be closer to fifteen percent (15%).

– In 2007, about ten percent (10%) of all unemployed Americans had been out of work for 52 weeks or longer. Today that number is above thirty percent (30%).

– An astounding forty-nine percent (49%) of all Americans live in a home where at least one member is receiving government benefits.

– The middle class is shrinking. Ninety-five percent (95%) of the jobs lost during the current recession were middle class jobs.

– Instead of cutting spending to reduce debt, the Federal Reserve is “monetizing” much of the U.S. debt. It purchased “approximately sixty-one percent (61%) of all government debt issued by the U.S. Treasury in 2011.

– Perhaps the most frightening statistic cited was a survey that found that sixty-three percent (63%) of Americans “believe that the U.S. economic model is broken.”

It is not broken. The economic model that propelled America into a superpower would continue to provide prosperity if the nation’s “entitlement” programs were reformed, if the obscene government spending and production of regulations were reduced, if government housing finance entitles such as Fannie Mae and Freddie Mac were eliminated, if the federal government’s purchase of the nation’s land mass was ended, if environmental laws without any basis in science were struck from the books, and if government control over the exploration and extracting of its vast energy reserves was greatly reduced.

It’s a tall order and it would require cleaning out a Congress that has imposed unsustainable burdens, including the highest corporate income tax in the world, and a level of taxation that requires those still holding jobs to annually work 107 days to earn enough money to pay local, state, and federal taxes.

If you check out the Progressive Caucus website, you will find nearly seventy members of the House are members and there is one from the Senate, the Socialist Bernie Sanders. In the 1950s they would have correctly been identified as Communists.

When Liberals and liberalism became unpopular, they began using the term Progressives. They are the descendents of every Democrat that voted for the New Deal, the War on Poverty, the creation of Fannie Mae and Freddie Mac, and the creation of the Departments of Energy, Education, and the Environmental Protection Agency. These are the people who in the early years of the last century imposed the income tax and engineered the creation of the Federal Reserve, a banking cartel that controls the economy.

At this point most conservatives have heard of Saul Alinksy’s 1972 book, “Rules for Radicals”, a guide to bringing about the destruction of the nation’s capitalist economic system and replace it with the kind of government that Barack Obama has tried to impose with the help of the many Communists and liberals in Congress.

Lesser known is the roadmap spelled out in 1988 by Columbia University sociologists, Richard Andrew Cloward and his wife Frances Fox Piven, both members of the Democratic Socialists of America.

The “Cloward-Piven Strategy” advocated a “massive drive to recruit the poor onto the welfare rolls” in order to sabotage it and bring about “a political and financial crisis.” As it turned out, it was the collapse of the housing market that brought about the financial crisis they wanted, but following the Bush administration emergency bail-out of the banking system, the Obama administration with its Democrat-controlled Congress set about imposing historic debt through its $821 billion “stimulus.” Present debt exceeds the entire annual Gross Domestic Product.

It followed that with an unnecessary and wasteful bail-out of General Motors and Chrysler (instead of permitting a normal bankruptcy that would diminish the power of the unions that brought it about), and massive “investments” in failed solar and other alternative energy companies. The EPA was set free to try to impose regulations that would shut down a major portion of the nation’s producers of electricity.

Even though voters returned majority power to Republicans in the House of Representatives in 2010 the trail of destruction has continued and the bills they have passed to end our present financial troubles have been locked up in a Democrat-controlled Senate that has not passed a budget in the last three years.

We are now five months from an election to remove Obama from power and electing conservative lawmakers to office. It’s a start in restoring America to its former prosperity.

© Alan Caruba, 2012

Mimicking Obama: General Motors’ CEO Blaming Everyone Else for His Failed Policies – Tea Party Nation

Mimicking Obama: General Motors’ CEO Blaming Everyone Else for His Failed Policies – Tea Party Nation.

Posted by Seton Motley

General Motors (GM)’s stock price has now dropped by 33% since the company emerged from its $50 billion-taxpayer-funded bailout bankruptcy.

 And on Tuesday, President Barack Obama-appointee CEO Dan Akerson had to face GM shareholders at their annual meeting.

 Lest we forget, We the Taxpayers are still conscripted stockholders to the tune of 500+ million shares — on which we’re currently poised to lose more than $15 billion. That sets us up to lose more than $30 billion on the auto bailout “success.”

 It is pretty clear why GM’s stock continues to tank. GM is less and less a for-profit car company and more and more a mini-Obama Administration — a leftist ideological nightmare mess.

 The crashing stock price is a reflection of this ongoing Government Motors transformation.

 GM acquired AmeriCredit and renamed it GM Financial to expand its subprime auto lending and leasing.

 Subprime lending? Meaning like Fannie Mae and Freddie Mac for Government Motors? Why, yes.

 Just another in a long series of brilliant GM business moves.

 Government Motors…sells (Chevy) Volt hybrids for $41,000. Volt hybrids cost GM $41,000 to make. It’s a zero-sum, non-profit product…

 GM (in 2010) received more green (non-energy) energy patents than any other orga… on Planet Earth…

 And in bad joke harmonic convergence, GM spent $3 million to install solar panels at a (non-profit) Volt manufacturing plant – in order to save $15,000 a year in electricity.

 …And if you haven’t yet had enough GM solar, and you liked Solyndra, and Beacon Power, and Ener1, and…

 Through Venture-Capital Arm, General Motors Pushing Boundaries of I…

 …Since its inception, General Motors Ventures has closed on 13 investments worth around $60 million, according to (GM’s Tim) Brumbaugh.

 They include a $7.5 million investment in Sunlogics PLC — a manufacturer of solar-energy systems — and a $6 million investment in Proterra Inc., which makes zero-emission transit buses.

 Tremendous “business” decisions, all.

 On Tuesday, the shareholders were restless.

 When General Motors shareholders complained at their annual meeting about the company’s languishing stock price and the lack of a dividend, CEO Dan Akerson had answers for most of their questions.

 Did Akerson acknowledge the three-plus years of his abysmal Leftist fantasy “business” decisions, and promise to return to a solid, basic car-making approach?

 Not so much.  Akerson is, after all, GM’s mini-Obama.  So he did what Obama has incessantly done – blame everyone and everything but his own failed policies.

 The stock is down because of the company’s losses in Europe, its huge global pension liability and overall uncertainty about the economy, (Akerson) told shareholders in Detroit on Tuesday.

 Why not throw in – in true Obama style – “headwinds?”  (Barely existent) cuts in state and local governmentsATMsATMs againBad luckPresident Bush? CongressEarthquakesThe Japanese tsunamiThe Middle EastThe Arab SpringHigh gas prices?

 Actually, Akerson can’t exactly blame higher gas prices – because he has in true Obama fashion called for a dollar-per-gallon gas tax increase.

 And GM is working to fix all the problems it can control, (Akerson) said.

 Actually, no they’re not.  Much like the Obama Administration, they’re “doubling down” on their failed policies.

“It’s not chasing a hot trend,” Brumbaugh said. “It’s something that if you’re going to do it, you have to stick to it — and management has to stick to it — over decades.”

 Excellent.  Brilliant.

 Any company that spends $3 million on solar panels to save $300,000 – over a quarter century – is nowhere near a stock price resurgence.

A Brass Age? – Thomas Sowell – Townhall Conservative

 

English: occupy wall street

Image via Wikipedia

A Brass Age? – Thomas Sowell – Townhall Conservative.

This may be the golden age of presumptuous ignorance. The most recent demonstrations of that are the Occupy Wall Street mobs. It is doubtful how many of these semi-literate sloganizers could tell the difference between a stock and a bond.

Yet there they are, mouthing off about Wall Street on television, cheered on by politicians and the media. If this is not a golden age of presumptuous ignorance, perhaps it should be called a brass age.

No one has more brass than the President of the United States, though his brass may be more polished than that of the Occupy Wall Street mobs. When Barack Obama speaks loftily about “investing in the industries of the future,” does anyone ask: What in the world would qualify him to know what are the industries of the future?

Why would people who have spent their careers in politics know more about investing than people who have spent their careers as investors?

Presumptuous ignorance is not confined to politicians or rowdy political activists, by any means. From time to time, I get a huffy letter or e-mail from a reader who begins, “You obviously don’t know what you are talking about…”

The particular subject may be one on which my research assistants and I have amassed piles of research material and official statistics. It may even be a subject on which I have written a few books, but somehow the presumptuously ignorant just know that I didn’t really study that issue, because my conclusions don’t agree with theirs or with what they have heard.

At one time I was foolish enough to try to reason with such people. But one of the best New Year’s resolutions I ever made, some years ago, was to stop trying to reason with unreasonable people. It has been good for my blood pressure and probably for my health in general.

A recent column that mentioned the “indirect subsidies” from the government to the Postal Service brought the presumptuously ignorant out in force, fighting mad.

Because the government does not directly subsidize the current operating expenses of the Postal Service, that is supposed to show that the Postal Service pays its own way and costs the taxpayers nothing.

Politicians may be crooks but they are not fools. Easily observed direct subsidies can create a political problem. Far better to set up an arrangement that will allow government-sponsored enterprises — whether the Postal Service, Fannie Mae, Freddie Mac or the Tennessee Valley Authority — to operate in such a way that they can claim to be self-supporting and not costing the taxpayers anything, no matter how much indirect subsidy they get.

As just one example, the Postal Service has a multi-billion dollar line of credit at the U.S. Department of the Treasury. Hey, we could all use a few billions, every now and then, to get us over the rough spots. But we are not the Postal Service.

Theoretically, the Postal Service is going to pay it all back some day, and that theoretical possibility keeps it from being called a direct subsidy. The Postal Service is also exempt from paying taxes, among other exemptions it has from costs that other businesses have to pay.

Exemption from taxes, and from other requirements that apply to other businesses, are also not called subsidies. For people who mistake words for realities, that is enough for them to buy the political line — and to get huffy with those who don’t.

Loan guarantees are a favorite form of hidden subsidies for all sorts of special interests. At a given point in time, it can be said that these guarantees cost the taxpayers nothing. But when they suddenly do cost something — as with Fannie Mae and Freddie Mac — they can cost billions.

One of the reasons for so much presumptuous ignorance flourishing in our time may be the emphasis on “self-esteem” in our schools and colleges. Children not yet a decade old have been encouraged, or even required, to write letters to public figures, sounding off on issues ranging from taxes to nuclear missiles.

Our schools begin promoting presumptuous ignorance early on. It is apparently one of the few things they teach well. The end result is people without much knowledge, but with a lot of brass.

Separation Anxiety – Tea Party Nation

Barack Obama - Caricature

Separation Anxiety – Tea Party Nation.

Posted by Tim Nerenz

While expressing his solidarity with the Occupy Wall Street movement this week, President Obama said something very weird – that OWS and Tea Party protestors share the frustration of feeling separated from our government.

No we don’t. I desperately want to be separated from my government again; separation from government is the whole purpose of the Constitution and the Bill of Rights. It draws the lines between us and our government; it is our national restraining order against a stalking pervert who climbs through our windows every chance he gets to steal our stuff and cop a feel while we are sleeping.

I doubt if separation from government is what makes the employees of Gibson Guitars frustrated these days. My guess is that the feds busting down their doors and shutting them down indefinitely for no reason whatsoever is probably more of a concern. They are probably more than a little frustrated that the guy who keeps yammering on about his jobs bill is the reason they lost theirs.

And it is a safe bet that the small regional banks that are being choked to death by regulators under the Dodd-Frank bank “reform” bill don’t see separation from government as a major problem. Congressman Frank sees no conflict between his taking heaps of cash from the giant Wall Street banks and writing the new rules that effectively take out their smaller competitors while guaranteeing their profits. He supports OWS, too, providing a role model for schizophrenics with political ambitions.

And weren’t you happy to learn that First Lady Michelle Obama wants to “shape” your children for you? Personally, I would like to establish some considerable distance between me and someone who thinks children should be shaped, like little pieces of clay. Does she want to dress them up and take pictures, too? We like our kids to be separated from strangers like that…and we like our First Ladies to be a little less creepy. I’m not sure how the OWS crowd feels about it.

By linking the Tea Party and OWS, President Obama once again shows us he doesn’t know his country very well. Most of us do not want government to sit in our lap; we want it to go lay by its dish. Americans are united in the things we are against; what divide us are the things we are for.

No one wants more crime, poverty, injustice, racism, drug abuse, inflation, illiteracy, pollution, unemployment, bankruptcy, fraud, illness, and premature death; we only disagree about how to combat them. And everyone sees war as the last resort; we just disagree on what comes second to last.

President Obama and his ideologically aligned liberals, Democrats, progressives, and socialists are for more government and less liberty. Like helicopter moms, they see separation from government as way too risky for their citizen/children; they demand a government that protects us from ourselves at our grandchildren’s expense.

Conservatives, libertarians, constitutionalists, principled Republicans, and political agnostics are for less government and more liberty. We do not want to be mothered by government; we want to live free of government supervision and approval. Separation from government does not cause us fear and anxiety; we crave it.

When asked if we want more government or less of it, Americans consistently choose “less” by 2:1 margins. That has been one of the most consistent polling questions over the past three decades. OWS is not the 99%; it is some tiny fraction of the 33% who say “more”.

When I went off to college, my mom and dad did not cry and neither did I; after 18 years of dependence on them, we were both happy to empty the nest. I was grateful to them for preparing me for that day, and they were even more grateful that it finally came.

There were other kids who spent that whole day bawling with their parents; I didn’t understand why back then, but a little wisdom has stuck to me over the decades that have passed since. We all grew older but we didn’t change much.

Some Americans see every new day as an opportunity to learn and grow, to overcome new challenges, to succeed and prosper, to be responsible, to discover how high is up for ourselves and to help others do the same. The happy kids.

Others wake to dread the dawn; seeing only hurdles that can’t be overcome, barriers that can’t be breached, disadvantage and unfairness, and a world so difficult to manage that only government can protect us from it. The bawling kids.

The painful truth is that we choose which of those two worlds we will live in. The happy kids and the bawling kids all went to the same campus. And the awful truth is that politics is the imposition of one viewpoint upon the believers of the other. The genius of democracy is that is allows us to change who wins without killing each other.

In the natural order of things, the mighty fall. The prodigal squanders, the haughty are brought low, nations decline, empires implode. This creates space at the top for the lowly to rise. Our iconic national story is one of humble beginnings which end in glory.

The problem with government is that it disturbs that natural order; it props up the mighty and crushes the meek. In a free market, privilege cannot be defended, it must be re-earned. Enron’s separation from government allowed it to rightfully perish alone; Fannie Mae’s incestuous relationship took us all down with it.

Maybe the bawling kids are still fooled by the teleprompter President, but the happy kids aren’t buying it. We are not still mired in recession almost four years later because government can’t clutch us tight enough to its bosom; we are stuck in the ditch because it won’t get off our backs.

Mr. President, with all due respect, we are not frustrated over our separation from government; it is that your separation from government can’t come fast enough.

“Moment Of Clarity” is a weekly commentary by Libertarian writer and speaker Tim Nerenz, Ph.D. Visit Tim’s website www.timnerenz.com to find your moment.

We Can’t Wait Either, Mr. President. – Morning Bell – Heritage.org

Barack Obama - Barack-o-lantern Illustration

Image by DonkeyHotey via Flickr

We Can’t Wait Either, Mr. President. – Morning Bell – Heritage.org

Take a stroll through your neighborhood Occupy Wall Street protest–whether it’s in New York or Chicago, Detroit or San Francisco–and you’re likely to see a recurring theme emblazoned across cardboard signs: redistribute wealth from the 1 percent to the 99 percent, all in the name of fairness, whether or not it makes good policy. Or if you want to hear that message without fighting the crowds, you could save yourself some time, turn on the TV, and tune in to President Barack Obama’s latest campaign swing across America, this time titled “We Can’t Wait.”

“I’m here to say that we can’t wait for an increasingly dysfunctional Congress to do its job. Where they won’t act, I will,” President Obama proclaimed in Las Vegas, Nevada. “There is no excuse for the games and gridlock we’ve seen in Washington. Where we don’t have to wait for Congress, we’re just going to go ahead and act on our own.” The actions the President is proposing? More money for “underwater” mortgages and a yet-to-be-announced student loan initiative.

There is no hiding the ball in the President’s populist pitch–and that ball is Obama’s desire to circumvent Congress and enact policies that appeal to his far-left, big-government base, regardless of the will of the people or their representatives in the House and Senate. Obama’s problem is that he failed to convince the American people–and his own party–to pass his latest stimulus plan (a.k.a., “the American Jobs Act”), and now he’s headed into an election season with 14 million jobless Americans, a 9.1 percent unemployment rate, stagnant economic growth as far as the eye can see, and nothing to show for it.

Entirely frustrated by his inability to ram his big spending plan through an unwilling Congress, the President now says that “we can’t wait” for Congress to act. What he’s missing, though, is that Congress isn’t acting because the American people don’t want their representatives in Washington to go along with Obama’s spend-more-tax-more scheme. It seems that the only audience that might be receptive to the President’s message is the protesters who are camping out in solid opposition to the capitalist system, advocating for the government to bail them out, just like it bailed out the banks and the automakers. It now looks like the President is about to oblige and that the “we” he’s referring to is the protesters and him.

Yesterday in San Francisco, the city’s Board of Supervisors held a hearing in which Occupy San Francisco activists urged the board to adopt policies that would prompt big banks to modify mortgages for struggling homeowners, as Bloomberg reports. The President’s latest proposal doesn’t look much different. It would refinance mortgages of homeowners who owe more on than their houses than they are currently worth. Heritage’s David John explains that the cost of the refinanced loans will be borne by Fannie Mae and Freddie Mac, which means that American taxpayers will be on the hook for the cost. What’s worse, this plan likely won’t be any more successful than the Administration’s previous attempts to shore up the mortgage industry.

It seems that the President is about to address another concern of the “Occupy” protesters–student loans. Many of the activists are complaining about their student loans and the cost of college education and are demanding that the government pay their debts and/or provide free tuition. Though we don’t yet know what the President will propose, we do know that student loan forgiveness and federally subsidized loans are not the way to reduce the cost of education. Heritage’s Lindsey Burke explains:

It is unfair to forgive student loans on the backs of waitresses and construction workers, and the nearly three-quarters of Americans who didn’t graduate college. Increases in federal subsidies or student loan bailouts shift the burden of paying for college from the student – the person directly benefiting from college – to the millions of Americans who did not graduate from college.

Burke also points out that federal subsidies have not reduced college costs. While those subsidies have increased 475 percent, the cost of attending college has increased 439 percent since 1982. As students have more purchasing power, Burke writes, colleges are incentivized to raise tuition. “It’s a vicious cycle that does nothing to mitigate the cost of attending college,” Burke says.

But does bad policy matter to the President? Is his end game to improve America’s economic situation or to appeal to his base? Is he taking cues from Occupy Wall Street protesters as he acts unilaterally to enact tried-and-failed policies? One thing is certain: Regardless of the answer, America cannot wait for President Obama to stop circumventing Congress.

A Week of Horrid Headlines – Tea Party Nation

A Week of Horrid Headlines – Tea Party Nation.

By Alan Caruba

Journalism is often called “History written in a hurry.” If so, last week’s headlines from the front page of The Wall Street Journal reflected a period of our current history that will likely have future historians wondering how we made it through these times without completely losing our minds.

If fear sells newspapers, drives television news ratings, gets bad laws passed, and is useful for selling all manner of other goods and services, than last week must have been very good for business.

The weekend edition, Saturday/Sunday, September 3-4, began with “Job Growth Grinds to a Halt.” The sub-headline was “Lack of Hiring in August Roils Financial Markets; Gloom Ratchets Up Pressure on Obama.” The President would have to wait until the following Thursday to roll out his “Jobs” bill and to tell a joint session of Congress, “Pass this bill now!”

Reluctant to admit its role in the housing mortgage crisis that broke in late 2008 during the political campaign and largely due to Fannie Mae and Freddie Mac—both of whom own 50% of U.S. mortgages—the next article on page one was “U.S. Sues Big Banks Over Home Mortgages.”

Monday was Labor Day so there was no WSJ edition, but on Tuesday, September 6, the lead headline was “Europe Signals Global Gloom” with a sub-headline, “World Markets Fall as Continent’s Debt Crisis Fuels Worries of Lengthy Slowdown.” It reminded me of the cliché that, when the U.S. sneezes, the rest of the world gets pneumonia.” Under the lead story was a headline, “Voter Discontent Deepens Ahead of Obama Jobs Plan.”

By Wednesday, September 7, the headline was “Euro Woes Stir Currency Fears” with a sub-headline, “Older Americans Held Hostage by Mortgages.”

On Thursday, September 8, the headline was “Fed Prepares to Act” with a sub-headline, “Officials Consider Unusual Steps to Avert an Economic Stall.” The nation has been stalled since 2008 when gobs of taxpayer money was used to bailout banks, an insurance company, and two major auto manufacturers. Meanwhile, an accompanying headline said, “U.S. Hits Builders with Pay Probe” about a Labor Department investigation “of the top companies in home building, hitting them with a broad demand for records that has led to complaints of regulatory overreach.” You think?

By Friday, following Obama’s speech, the lead headline was “Obama’s Bid to Spur Growth.” The sub-headline was “President Asks Congress for $447 Billion in Cuts, Spending; Tepid GOP Response.” With a $14 trillion national debt, I’d be tepid, too.

The proposed bill would be paid for with tax increases that would kick in after the next election in 2012. They are the same increases a Democrat-controlled Congress refused to authorize!

The Saturday weekend edition, led off with “Banker’s Exit Rattles Markets” and a sub-headline, “In Europe, Top ECB Economist Resigns, Seen as Policy Protest; Dow Industrials Fall 303.68 points.”

Obama speaks. The Dow tanks. Coincidence? I think not.

The other lead article headline was “Treasury Weighs New Tax Scheme.” It began “Treasury floats the notion of eliminating some, but not all taxes on overseas profits of U.S. multinational companies…”

Thus, the week’s WSJ headlines were a microcosm of the fears defining the economies of the U.S. and European nations whose socialist programs and massive over-spending had landed all of them in hot water.

We expect and we want government to exercise prudence in the management of public funds, but successive administrations and congresses did not, electing always to expand government. Let’s hope the Fed does not want to print more money. It will cause a collapse of confidence.

It’s September 2011. Welcome to the 1930s.

© Alan Caruba, 2011

Obama’s Newest Worst Idea Ever–Fannie II – American Thinker

Barack Obama - Caricature

Image by DonkeyHotey via Flickr

Obama’s Newest Worst Idea Ever–Fannie II – American Thinker.

Chuck Roger

February 2009 brought us Barack Obama’sstimulus” plan–$800 billion worth of progressive agenda-packed deficit spending that produced zero economic improvement and increased the national debt.

One year later, President Obama offered the American people a $3.8 trillion 2011 budget that increased the national debt by another $1.3 trillion.

March 2010 saw Obamacare become law. The measure, pitched as a job-creating economic stimulus, was but a federal power-grab for a sixth of the U.S. economy, a power-grab which will degrade medical care, increase industry-strangling regulation, and balloon the national debt.

Then in February 2011, an arrogant, debt-ignoring Obama tried but failed to sell Congress and the people an insane $3.7 trillion budget which would have exploded the national debt by another $1.65 trillion.

All throughout, Mr. Obama has cast his fiscal shenanigans in a green tint by issuing nonstop calls for increased taxpayer subsidization of manufacturing of the type engaged in by a now-bankrupt Obama favorite, solar technology producer Solyndra.

The Wall Street Journal nicely encapsulates The One’s newest fiscal absurdity. Obama wants to see “Congress create a ‘bank’ that could borrow huge sums with only a small federal outlay and would be independent of any political interference.” The bank would allegedly “stimulate” the economy by funding public works projects and jobs that would otherwise go unfunded. The WSJ points out that the tactic would result in unions and construction companies benefiting from the same taxpayer largesse–a recipe for another subprime-like economic meltdown. The Journal also observes that an infrastructure bank would end up functioning just as characterized by Connecticut Democrat Rosa DeLauro in 2008, as a “public private partnership like Fannie Mae.”

Surely it is only that we unenlightened masses are too, well, unenlightened to appreciate that since Fannie functioned so brilliantly in the private sector, we must put a public-sector Fannie to work right away. This will clearly, yet the clarity escapes us, “stimulate” the economy–or something like that, there, then…

Yet chances are good that the DeLauro-Obama union-construction marriage will present America with a replay of the ACORN-Obama Fannie-Freddie-banking debacle that killed the U.S. economy. But in this new murder, the American people would get a bonus. Obama has given us a heads-up, so we’ll d know exactly what to look for as the latest crony-capitalist nightmare unfolds right before our eyes–and in pursuit of our wallets.


A writer, physicist, former high tech executive, and Cajun, Chuck Rogér invites you to sign up to receive his “Clear Thinking” blog posts by email at http://www.chuckroger.com/. Contact Chuck at swampcactus@chuckroger.com.

EDITORIAL: Paying your neighbor’s mortgage – Washington Times

Obamanomics at Work

Image by wstera2 via Flickr

EDITORIAL: Paying your neighbor’s mortgage – Washington Times.

White House says ‘eat your peas’ to float the sinking housing market

Today’s glut of unwanted homes on the market, with unending foreclosures in some parts of the country, is a serious drag holding back any chance of economic recovery. Instead of eating our peas – as President Obama lectured Americans to do – and letting the market find its equilibrium, the administration is looking for an easy, temporary way out of the problem through modified mortgages for underwater homeowners. It won’t work.

The Obama administration wants to let millions of homeowners with government-backed mortgages refinance their loans at current low rates, which are about 4 percent. A very large percentage of those loans are underwater, and the homeowners couldn’t get lower rates without government intervention. The White House is acting as if forced refinancing is a free lunch. It’s not. Reducing the interest rate that Fannie Mae and Freddie Mac get paid on these loans will cost the government-sponsored enterprises tens of billions of dollars a year.

The reality is that Fannie and Freddie are effectively part of the government, and they hold $730 billion and $680 billion worth of mortgage securities respectively. The Federal Reserve System has $900 billion worth of securities insured by Fannie and Freddie. The Treasury held about $80 billion of those securities in July. What all this means is that taxpayers are investors in mortgage-backed securities whether they want to be or not. Don’t believe the Obama administration’s populist rhetoric that it wants to reduce the costs of borrowing for homeowners at the expense of big investors in mortgage-backed securities. In this case, what Democrats really are trying to do is redistribute wealth from all taxpayers to underwater homeowners, not from fat cats to the starving homeless.

This is a Hail Mary pass that won’t work. There is little evidence that lowering payments reduces the risk of default and foreclosure. If that were indeed the case, private lenders would have an incentive to modify mortgages, which they aren’t doing on a massive scale. It’s also not clear why irresponsible people who bought larger houses than they could afford should be rewarded with cheaper mortgages than the market is willing to provide. Once again, the thrifty will be asked to bail out the profligate. The moral hazard and perverse incentives created by such a system are symbolic of an Obama economy that inhibits smart investment and growth.

The bottom line is, unemployment has a far greater impact on default risk than monkeying with mortgages. If millions of jobless Americans had work, they wouldn’t be defaulting on their loans. To create jobs, government needs to cut spending and red tape so the private sector has the confidence to invest in new hires. Washington bureaucrats won’t outsmart the market. Instead, they need to let the housing market find its bottom, which is when recovery can begin. Anything else simply prolongs the pain – and this Great Recession.

Obama Downgrade, Democratic Depression – Tea Party Nation

Obama Downgrade, Democratic Depression – Tea Party Nation.

Posted by Judson Phillips on August 8, 2011 at 10:32am in Tea Party Nation Forum

As of just a few minutes ago, the Dow was down over 330 points.  Today is going to be a really rough day for America’s financial markets.  S&P has now not only downgraded America’s debt rating but has now downgraded Fannie Mae and Freddie Mac’s credit rating as well.

 What does this mean for America?  Well, it is not good.

 The stock markets are in full free fall mode. 

 The downgrade of Fannie Mae and Freddie Mac should have occurred in 2008.  But it means higher mortgage rates for Americans and even more Americans will have trouble living the American dream. 

 All of the credit rating agencies are saying the same thing.   America has too much debt.  That is obvious and preaching to the choir.

 Here is what we need to know and what we need to tell our neighbors.   Debbie Wasserman Schultz, the Chairman of the DNC said the Democrats own the economy. 

 That’s right.  This is the Obama depression and this is the Democratic downgrade. 

 Tragically we fight two enemies in this battle.  We fight the Party of Socialism that wants to spend us into oblivion because only by bankrupting the economy will they be able to make America a socialist country. 

 We also have to fight the establishment Republicans.   While many Republicans are really good people and really get it, there are far too many Republicans who love big government.  The difference is they want to be the ones running big government.  The GOP as a whole is not committed to shrinking the government. 

That is why Tea Party Republicans need to take over the GOP.   We need to replace leaders like John Boehner who are not committed to shrinking government.  We must have a nominee to take on Obama who is committed to the shrinking of government and also committed to the destruction of socialism. 

 People have been emailing and calling me since the announcement of the downgrade asking me what I thought would happen next and what I thought we needed to do.  Here are the answers.

 First, we have to be involved.  The left is working overtime, preparing for 2012.  This is Armageddon for them and for us.  If you are not involved, you need to be involved.  You need to be involved in your local Tea Party, 9/12 or other Liberty group.  Second you must also get involved in your local Republican group.  I don’t care whether your GOP group is good or bad, you must become involved.  If they are terrible, you and your friends need to be the change.  You would be shocked how few people it takes to change a local Republican Party group.

 You need to also make certain that all of your like-minded friends are registered to vote.  I was speaking to a friend the other day who specializes in doing data research and he told me a shocking fact.   His group did data research on Republican donors.  These are people who wrote checks, sometimes-large checks to the Republican Party.  In the data sample they found an amazing and stunning fact.  Forty percent of the donors who actually gave money to the Republican Party we not registered to vote. 

 It is not that they were not registered Republicans, they were not registered at all. 

 Take time to go and ask your friends if they are registered to vote.  Do not assume they are.   Do a voter registration drive at your church. Do not assume the people who go to church are registered to vote.  Remember, the left is very good at getting live voters, dead voters and voters that do not even exist to the polls.  We must be better.

 Tell your friends and family the truth about what has happened.   This is the Democrat’s downgrade and the Obama depression.   As Debbie Wasserman Schultz said, Democrats own the economy. 

 We need to make sure they do.

The Beltway Industry Full-Time Employment Act – Michelle Malkin – Townhall Conservative

Representative Barney Frank, co-architect of t...

Image via Wikipedia

The Beltway Industry Full-Time Employment Act – Michelle Malkin – Townhall Conservative.

Dodd-Frank, the 2,300-page financial “reform” monstrosity spearheaded by Capitol Hill corruptocrats, turned 1 this week. It made too-big banks bigger. It made too-risky incentives riskier. It made a lousy economy lousier. Billed as a “consumer protection” act, Dodd-Frank has succeeded phenomenally — in protecting and stimulating the business-stifling business of government.

Dodd-Frank is a tyrannical triumph of rule-makers, lobbyists and other non-elected spongers over taxpayers. If you don’t want an unseemly glimpse into the self-serving, sausage-making process that feeds the insatiable Beltway industry, read no further. The law’s implementation process is so far-reaching and Byzantine that every member of Congress should be suffering migraines from it.

Quite expectedly, the feds have met a scant 12 percent of rule-making requirements dictated by the grandstanding Dodd-Frank law as of July 1. According to legal and regulatory watchdogs Davis Polk and Wardwell, regulators missed 131 deadlines over the past year. Moreover, the Securities and Exchange Commission and the U.S. Commodities and Futures Trading Commission have been granting “temporary relief” deferrals (de facto waivers a la Obamacare) left and right to targets in the swaps industry.

Here is just a brief sample of “upcoming activity” on Dodd-Frank (with many rule-making deadlines still to be determined) published on the Securities and Exchange Commission website:

Section 342: Create and staff Office of Minority and Women Inclusion (pending reprogramming approval by appropriators)

Section 911: Create new Investor Advisory Committee (pending appointment of Investor Advocate)

Sections 915 and 919D: Create and staff Office of Investor Advocate (pending reprogramming approval by appropriators)

Section 919: Issue rules, as the Commission deems appropriate, designating documents or information that must be provided by a broker or dealer to a retail investor before the purchase of an investment product or service

Section 921: Issue rules, as the Commission deems appropriate, addressing agreements that require customers or clients of any broker, dealer or investment adviser to arbitrate disputes arising under the Federal securities laws

Section 932: Create and staff Office of Credit Ratings (pending reprogramming approval by appropriators)

Section 979: Create and staff Office of Municipal Securities (pending reprogramming approval by appropriators)

Section 967: Report to Congress describing actions to implement the regulatory and administrative recommendations contained in the independent consultant’s report on the SEC’s organization.

Now multiply that language by more than 400 rules total and tens of thousands of pages, scores of lobbying firms and legions of lawyers.

While disastrous bailout behemoths Fannie Mae and Freddie Mac get off scot-free, small businesses, small community banks and small broker-dealers have been hit hard by the vagueness, uncertainty and cost burdens created by the Dodd-Frank-enstein monster. Meanwhile, the Government Accountability Office estimates that the feds will need $1.25 billion for 11 different agencies to fund the rule-making racket by 2012 — including $481 million for the newly created Consumer Financial Protection Bureau.

Co-father Barney Frank bragged that his freakishly ineffective creation is “holding up well” in public opinion on its first birthday. But that’s because public opinion is shaped by vague, Wall Street-bashing sound bites instead of hard-nosed assessments of the law’s impotence-by-design.

In its analysis of the few rules that have been finalized, law firm Morrison and Foerster LLP — quoted in the financial adviser publication Investment News — concluded that Dodd-Frank regulations “do not address or resolve the core systemic risk issues in the act.” Moreover, “with elections coming up, and with international reform measures dragging along, one cannot help but wonder how, when or even if many of the act’s reforms will be put in place.”

As they say in the software industry, the government budget-lining bureaucratic delays are not bugs. They’re features of yet another Beltway Industry Full-Time Employment Act.

Follow

Get every new post delivered to your Inbox.

Join 3,766 other followers