Fighting to Preserve Liberty in America
New York state government is a basket case. Earlier this week we were treated to the theater of the governor’s debate featuring such luminaries as Jimmy McMillan of the Rent is 2 Damn High party, and former madam Kristin Davis who seemed smarter on fiscal policy than half of her opponents on the stage. But let us not forget it was a stage and this is New York. Instead of being held at Hofstra University, it should have been held on Broadway, but I digress.
The government itself is one problem, the state pensions are quite another. A problem on the order of $30 billion to $80 billion. Harry Wilson is running for state comptroller. Mr. Wilson made his money on Wall Street, investing and turning around troubled companies. His opponent, Tom DiNapoli was appointed to the comptroller position after his predecessor, Alan Hevesi, was charged misconduct for trading access to the pension in return for favors.
The seven way gubernatorial debate was held last night at Hofstra University on Long Island. I happened to catch a live broadcast at a candidate’s forum in Manhattan. Watching the debate was somewhat entertaining, but when it was over you had to realize it wasn’t a movie, even though it was watched, projected on a movie screen. Then the sad reality set in that we actually have to pick one of these people to be our governor. In one of the most dysfunctional state governments in the nation it’s hard to decide whether to laugh or cry.
In today’s New York Times there is a story about Rick Lazio latching on to the Ground Zero mosque issue as his new campaign theme. The first television ads I have seen regarding his run for governor are about this issue. He is strongly opposed. Okay, but he wants us to elect him governor to do what, exactly? New York has a lot of problems, from a state government that is completely dysfunctional to being broke and since everyone seems to agree that the mosque at Ground Zero is not about the right to build there but about the propriety of building there, what does it have to do with the office of governor?
When he pinch hit for Rudy Giuliani running for the senate against Hillary Clinton, after Mr. Giuliani dropped out of the race with prostate cancer, Mr. Lazio took a similar tack. You probably remember their first debate when Mr. Lazio famously walked across the stage to a startled Mrs. Clinton and asked her to sign his pledge on campaign finance reform. She refused and that was his theme. The problem is that although many people feel our political process is corrupt, when it comes to campaign finance reform, most people don’t care about it. Those who care about it are incumbents, who want to cripple those who run against them. Some of the so called “reforms” have politicians spending so much time chasing $50 donations that they can’t do what they were elected to do. Either that or we can only run multi-millionaire candidates who can spend their own money without limits. (Simple solution: let anyone contribute any amount to any campaign at any time and just post the information on the Internet within 72 hours in a database that is fully searchable. Done.) It only took a little time for the novelty of the debate video to fade and Mr. Lazio had no campaign.
Another challenger in this year’s governor’s race, Carl Paladino, one of the aforementioned millionaires, has been hitting the airwaves more frequently and more effectively than Mr. Lazio. He is not a one trick pony. His first ads hit Andrew Cuomo on being a career politician and that he, Paladino, was a business man who knows how to create jobs. What do we desperately need now? Jobs. What are we sick of? Career politicians, like Mr. Cuomo, who played a role as HUD Secretary in the Clinton administration of feeding the real estate frenzy and the subsequent housing collapse that created the financial crisis.
On the mosque situation, agree or disagree with him but Mr. Paladino says exactly what he will do about it. He will take the property away under Eminent Domain (thanks to the activist judges on the Supreme Court who gave us Kelo v. City of New London) and use the property to create a war memorial. He doesn’t just say he will oppose it he tells us what he will do about it.
In the interest of full disclosure, I contributed to Rick Lazio’s senate run in 2000 and I have no connection with the Paladino campaign. But if Mr. Lazio is serious about defeating Andrew Cuomo for governor, he has to find some issues that not only resonate with the people of New York but that are the responsibility of the governor to address. If not, rather than split the conservative vote, he should step aside and help ride the anti-incumbent wave that Carl Paladino is surfing.
Steven Slater tells off a plane load of Jet Blue customers, grabs a couple of beers, pulls the emergency chute and dramatically exits the plane, his job, and his career. He is soon hailed across the Internet as a hero. People walk away from home equity loans saying, “I’m not going to be a slave to the bank.” Challenge after challenge to any reference to God in the public square as part of an effort to drive faith underground. Our is government telling us that the only way we can survive is by a government handout. We cannot make it on our own. If you wonder why we are heading in the wrong direction as to 70% of your fellow Americans believe, perhaps we should give morality a closer look.
The story on Mr. Slater is unclear. He says one thing, witnesses say another. It will eventually get sorted out, but let’s assume for a moment that Mr. Slater is correct in that a passenger’s behavior set him off. In a more moral society, Mr. Slater could have done one of two things. One, he could have taken a deep breath, held his tongue and just written it off to that passenger having a bad day. He would have won the admiration of those who watched him behave with self-control and dignity. Or, two, he could have asked the pilot to inform the authorities to meet the plane on the ground because an unruly passenger defied the instructions of the flight crew. That passenger would have been arrested on the ground and would be facing federal charges. But instead Mr. Slater took the route of immediate gratification. He got on the intercom and told off the whole plane, grabbed a couple of beers from the beverage cart, triggered the emergency escape chute and then like a giddy child went down the slide and ran home. A moment’s thrill of control followed a world of grief. Was his moral compass broken or pointing in the wrong direction?
Shawn Schlegalis a real estate agent in Arizona. Since moving there in 2005 he bought several houses with each one financing the next. He is currently in default for $94,873 and is basically saying tough luck, I’m not paying. The lender got a court order garnishing his salary, but that was eighteen months ago and he hasn’t heard anything since. “The case is sitting stagnant,” he said. “Maybe it will just go away.” While I don’t have a great deal of sympathy for any bank that would approve this chain of financing, I don’t know if the lender was aware of what the home equity loan was for, but it is Mr. Schlegal’s attitude that disturbs me. He made the decision to do this and he feels it is not his fault. True he will be impacted if he tries to borrow again in the near future, but he doesn’t seem to care. This is reinforced by the commercials flooding the airwaves advising consumers how they can walk away from their credit card debt. How about selling the flat screen TVs and sports cars you purchased on the plastic, and pay it back? Meanwhile our government continues to use your taxes to help people who are over their head pay their mortgages. Why do you have to pay your mortgage and theirs? You were responsible, they were not. The very concept of such a program would have been baffling to the Founding Fathers.
Our current government reinforces the idea of Americans as imbeciles. The mortgage companies took advantage of you, they were predatory lenders, while it was government programs that told the predators to get busy. We have to have more home ownership, we have to help people achieve the American Dream, so Andrew Cuomo at HUD, Barney Frank, Chris Dodd and the good folks at Fannie Mae and Freddie Mac who made millions on pushing these products, all pushed these government programs on more people, encouraging them to buy houses they couldn’t afford and when the bubble burst they pointed the finger at everyone but themselves. They believe the American people are helpless idiots who cannot fend for themselves and if by some accident someone does succeed, it is the government’s responsibility to take as much of what they earned by the sweat of their brow and give it to the simpletons they claim to be responsible for. That is a racist, sexist, class warfare point of view that unless our Ivy League educated elites give us our daily instruction, we will shrivel up and die. It is anything but the American Dream.
We see efforts to ban the Pledge of Allegiance because it contains the phrase “under God”; to ban the display of the Ten Commandments in court houses; the ban of religious displays on publicly owned land; and to ban prayer in any form at school graduations, football games or other gatherings. While atheists, a small percentage of the population, do not believe in God, why is another person who believes in God so offensive to them that they can’t bear hearing it? But as faith is driven further and further from the public square, boorish behavior becomes more and more acceptable. There is something to be said about eternal damnation curbing one’s baser appetites than responding to the statement, “You want me to stop it? Make me.” There is something to be said for fulfilling one’s obligations because it is the right thing to do, but the right thing to do does not come from living in the here and now. That is self-gratification. Doing the right thing comes from a set of morals that say, “Character is what we do when no one is watching.” Those who believe in a God believe someone is always watching. Perhaps John Adams said it best:
“We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made for a moral and religious people. It is wholly inadequate to the government of any other.”
Republicans have to learn to stop fighting by the Marquis of Queensbury rules, while Democrats, bite, kick, pull hair, scratch and hit below the belt. Yes, Christ told us to turn the other cheek, but he also overturned tables, formed a whip out of cords and drove the money changers from the temple. In other words, sometimes you have the hit the bully hard between the eyes before he learns to stop being a bully.
So if the Republicans regain control of Congress in November, they should open the new Congress in January with detailed hearings on what happened to Fannie Mae and Freddie Mac and don’t pull any punches. By that I mean if they need to put Andrew Cuomo in the witness chair, even if he is the governor of New York, which he probably will be, then they should do so. It’s time to stop playing patty-cake.
For all the hoopla of the Dodd-Frank Act, Fannie Mae and Freddie Mac were left out of the new regulations. Oh, we’ll get to those later. Okay, let’s get to them with the Republicans in charge. Let’s expose how it was our government that got us into the housing mess and let’s do this before the Democrats re-write history and paper over their culpability in the greatest financial crisis since the Great Depression. It’s time to put the big lie to “it’s all Bush’s fault and Republican policies.”
The papering over has already started by none other than Franklin Raines the former head of Fannie Mae who received bonuses of over $90 million while at the helm of Fannie Mae and was also charged with cooking the books that helped him receive those bonuses. He reached a settlement with the SEC and gave back about $1.8 million from the profits in the sale of Fannie Mae stock and gave up $5.3 million in future benefits related to his pension. But he essentially kept the rest, what the Wall Street Journal called a “paltry settlement.”
Mr. Raines claims the demise of Fannie Mae and Freddie Mac, to which taxpayers have already coughed up $145 billion, was due to bad credit decisions made after he left the firm. To put it in his own words:
“The Journal had been warning for years that the on-balance sheet portfolios of Fannie and Freddie would lead to their demise. Mr. Carney suggests that excessive leverage was the culprit. Unfortunately, neither of these were involved. Nope. Just bad credit judgments. Decisions made, by the way, while operating under close regulatory scrutiny.”
According to the Wall Street Journal “What he doesn’t say is that Fan and Fred had a political and legal mandate to support low-income housing.” To meet this mandate which had increasing goals each year, Fannie and Freddie had to cast a wider net to find these borrowers and the wider they cast the net the lower their standards had to be. Thus more creative types of mortgages were created to lower the bar such as, interest only loans. This scheme would continue to work as long as housing prices kept rising but that could not go on forever. When the music stopped a lot of people were left standing without chairs and we all lost. People’s credit ratings were destroyed, mortgage securities were worth far less than face value, people walked away from houses, and taxpayers were forced to pick up another “too big to fail” enterprise. By the way, where in the Constitution does it authorize the federal government to get involved in helping people buy houses?
The secret veil put in place by the main stream media has been lifted. With the Internet and the bloggers and cable television and talk radio, the main stream media can no longer keep information that does not comport with their agenda hidden from the American people. The American people are energized and informed but that may not last long after the election, if we don’t continue to engage them. Uncovering the true “swamp” that is our federal government and draining it should begin by letting the sun shine in. So let’s do away with the good ol’ boy politics of not rocking the boat when you gain control so that they won’t rock the boat when they get it back. If we don’t have a new class of non-incumbents who are willing to go to Washington and clean it up, really clean it up, we need to get rid of them and put new people in their place. If that means replacing Republicans with better Republicans or Democrat incumbents with better Democrats, so be it. We have to end the process of only being able to choose between two pathetic life time politicians who have never lived in the real world.
The talking points have been established that it was eight years, eight, of failed Bush and/or Republican policies that got us into this mess and President Obama and the Democrats are working hard to get us out of it. Let’s take a closer look.
What blew up in 2008? It was the housing market. The underlying cause of the problem has Democrat/liberal/progressive fingerprints all over it going back to Franklin Roosevelt who created Fannie Mae. Add into that mix Lyndon Johnson privatizing Fannie Mae to hide it from the budget and creating HUD; Jimmy Carter creating the Community Reinvestment Act; Bill Clinton pushing for more home ownership among those who could least afford it, Andrew Cuomo as HUD Secretary pushing Fannie and Freddie to take on riskier mortgages; Barney Frank and Chris Dodd fighting against regulation before they were fighting for it (and where have we heard that formulation before?); and when housing prices run out of gas and the house of cards that the Democrats built collapses, it’s all Bush’s fault.
Let’s look at the timeline. When he took office, President Bush was handed a recession from Bill Clinton resulting from the dot.com bubble. In less than a year we had 9/11. In spite of that, Bush pushed through tax cuts and got the economy to grow through most of his presidency. The Democrats took control of Congress in January 2007 and in December 2007 the economy went into recession. One year later Barack Obama is elected President of the United States. Now, more than a year and a half after Obama is in office the economy looks like it is slipping into a double dip recession, and this is the Republican’s fault? Who has been spending like a drunken sailor? Who wasted almost $1 trillion on a stimulus plan that was so ineffective the Obama administration had to invent a new statistic, “jobs saved”, to hide its dismal performance. They add on ObamaCare, which no one in Congress read before voting on it and no one knows what is in it and so no small business is going to hire anyone until they know what it costs. How is that the Republican’s fault or Bush’s?
We are just a few months away from the tax cuts put in place by President Bush expiring. President Obama wants them to expire. This will place an additional massive burden on small businesses and just about everyone else and he wonders why aren’t companies hiring? The man came into office with no executive experience and the year and a half he has been in office he hasn’t seemed to pick up any. Could it be because he is surrounded by advisors who have little to no executive experience themselves?
To my fellow Americans I say, hang in there it is less than 100 days to vote the bums out. Perhaps not all of them, but at least we can bring in some adult supervision. It’s time to stop steamrolling the American people with the socialist programs and to let “We the People” take back our government.
