Fighting to Preserve Liberty in America
The Tea Parties sprang to life after seeing cyincal politicians advance their own agenda that most Americans knew wouldn’t work, but damn the people, the politicians plowed ahead. It was about the time of the great stimulus program that we were told (and didn’t believe) the program would cap unemployment at 8% for the mere cost of nearly $1 trillion. If we didn’t act, the politicians somberly pronounced, we would face the dire situation of 9% unmployment.
When President Obama and his team stood before their supporters and introduced ObamaCare you could almost hear them sing in unison the Carly Simon song, “Nobody does it better…”. They were going to bring us the health care we had been waiting for. Magically covering every soul in America whether they wanted it or not. If they did not, the government would be just like granny used to be, “Open wide, this won’t hurt a bit.” Come to think of it, was that granny or… never mind.
For all the hand wringing by the Republican establishment over Christine O’Donnell’s fitness for office two points must be made. One, who is calling the kettle black? Two, has anyone bothered to look at who she is running against?
In the desperate attempt to throw anything and everything they can find at Christine O’Donnell to try to derail her roaring comeback, her critics have gone all the way back to probe who her friends were in high school. High school. If that is a criteria for being unfit for government office, how about these gems:
Is that enough or should I continue? And these people and their supporters say, Christine O’Donnell is not fit for office? Maybe she should rob a bank so that her resume would be more in line with these icons of the Democrat firmament.
As we approach the mid-point of his term we, once again, hear President Obama with another scheme to create jobs. This time he really, really means it. For a mere $50 billion we can build roads, rails and runways and we can create an “infrastructure bank” to boot. I guess the government wants to get into the banking business now that they have swallowed up two thirds of the domestic auto companies and passed a law to take over health care. But, hey, who are you calling a socialist?
The infrastructure bank has supporters: Arnold Schwarzenegger, Ed Rendell the Democratic governor of Pennsylvania and Michal Bloomberg the Democratic, Republican, Independent mayor of New York, but they want it to support more projects such as water and clean energy projects. But here’s the really good news, according to the New York Times “They say such a bank would spur innovation by allowing a panel of experts to approve projects on merit, rather than having lawmakers simply steer transportation money back home.” We get a brand new panel of experts to tell us morons what is good for us!
How about this idea, get the Federal government out of the roads, rails and runways business. Unless the road is part of the Interstate highway system, and that means interstate, the feds should stay away from it. If a road within a city needs maintenance, that city and its citizens should pay for it, not taxpayers elsewhere in the country. That’s how the whole process got screwed up. You build my road, I’ll build your road and nobody will know who pays for what, until we find out we are $13 trillion in debt.
One of the good ideas Jimmy Carter had was to deregulate the airlines. Airlines became competitive and prices came down. The problem is that air travel consists of three components: the airlines, the airports and air traffic control. Complete the process, deregulate the airports and air traffic control. If you do that, airports can charge different prices for takeoff and landing slots. No more will we see thirty-two flights all scheduled to take off at 7:30 AM from one airport. Private investors would also have an incentive to build a state of the art air traffic control system.
By the way, what happened to all those “shovel ready” projects from the first stimulus plan? Did we actually finish building all the turtle crossings that this country needs?
On another front, Obama continues to tinker with the mortgage market rather than getting out of the way, letting housing prices find their bottom and then going from there. George Mason economist Anthony B. Sanders said in the New York Times, ““Housing needs to go back to reasonable levels. If we keep trying to stimulate the market, that’s the definition of insanity.” Even Democrats are piling on:
“The administration made a bet that a rising economy would solve the housing problem and now they are out of chips,” said Howard Glaser, a former Clinton administration housing official with close ties to policy makers in the administration. “They are deeply worried and don’t really know what to do.”
Who would have thought that a president and vice president with no executive experience prior to taking office would not know what to do once they got there? After all everyone knew that Obama was a really nice guy with an even temperament, what went wrong? Now we hear that Fannie Mae wants to back mortgages with nothing down. But not to worry, this time they are actually going to require the lenders to check to make sure the borrower has income. I feel better already.
Since this administration seems to like experts how about listening to these experts:
“We have had enough artificial support and need to let the free market do its thing,” said the housing analyst Ivy Zelman.
Michael L. Moskowitz, president of Equity Now, a direct mortgage lender that operates in New York and seven other states, also advocates letting the market fall. “Prices are still artificially high,” he said. “The government is discriminating against the renters who are able to buy at $200,000 but can’t at $250,000.”
It’s time for President Obama and his administration to get his boot off of the neck of the economy. Ours is the strongest most resilient economy in the world, if you set it free. All of the tinkering and the anti-business threats have pushed employers to the sidelines. The uncertainty over the economy has led businesses to take a wait and see attitude.
The rhetoric the Democrats have been trying to muster to save their skins is that “eight years of failed policies,” yada, yada, yada. The reality is that this recession started one year after Nancy Pelosi and Harry Reid took over Congress. This recession started in the last year of the Bush administration, not the first seven. This recession has lasted nearly twice as long and counting under Obama than it did under Bush, and it shows no sign of changing anytime soon. A recent poll in Ohio by Public Policy Polling asked respondents who they would prefer to see in the White House right now and the results were George W. Bush 50%, Barack Obama 42%; what does that tell you?
So, Mr. Obama, keeps your hands were we can see them and slowly step away from the economy.
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.”
In the midst of the financial meltdown the government and financial pundits argued that they had to rescue the big banks because they were too big to fail. If we don’t save them, they could bring down the entire U.S. economy and in turn the economy of the entire world. Ignoring the history and responsibility for how they got there, that could be a true statement that the government had to do something to avoid a worldwide panic.
The panic averted, many banks paid the money back with interest, are in the process of paying out massive bonuses and the Obama administration is twisting itself in self-righteous knots to tax them into humility. Good luck with that. While they target the banks, they are hands off on Freddie Mac and Fannie Mae, GM and Chrysler because to tax those basket cases would just be taking money from the left taxpayer pocket and moving it to the right taxpayer pocket. If you look to the root of the problems of the fiscal meltdown you will find the government’s hand in almost every corner, but don’t expect this administration to try to get to the bottom of it.
Back Up, Go Ahead
There was an old Abbot and Costello routine where Abbot was guiding Costello in parking a car.
Costello asked what he should do and Abbot said, “Back up.”
Costello confirmed, “Back Up?”
To which Abbot replied, “Yeah, go ahead.”
“Go ahead?”
“No. back up.”
“Back up?”
“Yeah, go ahead.”
I don’t know if the Obama administration is Abbot or Costello, but they are telling banks, “Lend more money.” Then they tell the banks, we are going to raise taxes and take your money away. Then they ask the bank, “Why aren’t you lending more money?”
Programs You Can Believe In
Medicare
It is estimated that Medicare loses about $60 Billion ANNUALLY in fraud. That’s right about $60 billion of your tax dollars are stolen every year from this program.
“If you want to find Medicare fraud, the first place you should look is South Florida, where 60 Minutes and correspondent Steve Kroft were told it has pushed aside cocaine as the major criminal enterprise.” – 60 Minutes – Medicare Fraud: A $60 Billion Crime
While the Obama Administration pushes their health care program one of the ways of funding the program is through savings in Medicare fraud. However, no one has been able to stop it. Not Republicans. Not Democrats.
First Time Home Buyer Credit
This wonderful new program was designed to help first time home buyers achieve the American Dream. Unfortunately, it doesn’t take a genius to also achieve that criminal American Dream, fleecing the government.
It’s hard not to laugh when viewing the results of the federal first-time home-buyer tax credit. The credit, worth up to $8,000 for the purchase of a home, has only been available since April of last year. Yet news of the latest taxpayer-funded mortgage scam has traveled fast. The Treasury’s inspector general for tax administration, J. Russell George, recently told Congress that at least 19,000 filers hadn’t purchased a home when they claimed the credit. For another 74,000 filers, claiming a total of $500 million in credits, evidence suggests that they weren’t first-time buyers. – WSJ – First Time Fraudsters, 10/29/2009
The IRS even had to admit that in an investigation they found 53 cases where IRS employees filed “illegal or inappropriate” claims for the credit.
Too Big To Govern
A new president is elected once every four years, but the vast government bureaucracy remains. It is said that a president will only be able to address 3-4 top priorities in their term. By the time they appoint executive department heads and the Senate approves them and they set about to figure out the departments they are in charge of, it is an enormous undertaking to try to make significant changes. To try to curb fraud, to overcome the inertia of the entrenched bureaucrats who know they will outlast the appointee, and their friends in Congress who will probably be there as long, is just too tall an order to accomplish in a four year cycle. Every time a new liberal takes over, their first order of business is to make the bureaucracy larger. It does not work. It will not work.
The Only Solution
The only solution is to make the federal government smaller. It must be bold. It must be dramatic. Tweaking it at the margins will fail. Entire departments must be shut down. The Constitution should be the blueprint for this. If the power is not explicit in the Constitution, shut it down and allow the states or local governments to take it up if they choose. Then drastically cut taxes accordingly. Let people keep their money and decide at the local level if they want that service or not. Let every state try their own solution and each state can learn what works and what doesn’t from each other. But this idea of pushing every solution up to the federal and let one size fits all be forced on everyone is, quite simply, madness. We need less government and more liberty.
In Harry Reid’s Senate, this qualifies as dereliction of duty, as the Majority Leader said himself on Monday in defense of his frantic deal-making to get 60 votes. “I don’t know if there is a Senator that doesn’t have something in this bill that was important to them,” Mr. Reid said at a press conference that offered an unintentional commentary on modern democracy. “And if they don’t have something in it important to them, then it doesn’t speak well of them.” – Wall Street Journal, December 23, 2009
It kinda makes you feel warm all over, that our Congressional leaders are representing their constituents, selflessly doing what’s best for America in line with the consent of the governed (55% opposed according to latest Rasmussen poll).
Have you seen some of the commercials for Ally bank, where a man asks one little girl if she wants a pony and she gleefully says yes, so he hands her a toy pony. He then asks the next girl if she wants a pony and she says yes, so he calls out a live pony. The first girl, crestfallen, says, “You didn’t say I could have real pony.” To which he replies, “Well, you didn’t ask.” By now you probably know how Blanche Lincoln of Arkansas and Evan Byah of Indiana feel. They didn’t ask for a bribe in return for their vote on the health care bill, and like the creep in the commercial Harry Reid tells the world what a couple of saps they are for not doing so.
While Obama’s first stimulus plan lies sputtering on the ground, and he and his team tee up another one, they fail to realize that many small businesses that create most of the new jobs in this country, simply do not know what all this (health care, cap and trade, stimulus after stimulus) is going to cost them. Until they do, this uncertainty is what is keeping many of them from doing any hiring. How can you hire a new person when you no longer know how much your existing staff is going to cost when the music stops? So the unemployment picture will drag on no matter how may stimulus plans Obama rams through.
Coming to Their Senses
This is not over yet. The House version and the Senate version still have to be reconciled in committee. In the House Bart Stupak says he has 30 Democrats ready to vote against the bill, if his amendment against abortion is tampered with. The chumps in the Senate that Harry just made fools of, may re-think their support. The far left demands a public option be put in. Lieberman and a few others vow to vote against any public option. In addition, the members of Congress, when they return home to their districts, may not find them full of good cheer this Christmas, as incensed constituents express their opinions on why every Democrat in the Senate doesn’t understand 55% opposition, while they vote yea. Better watch out for flying fruitcakes, they can be lethal.
Don't Anyone Dare Say Government Caused This Mess
You can never solve a problem if you do not face up to the full scope of the problem. In listening to President Obama, and reading liberal columnists like Maureen Dowd, in the description of what caused the current economic calamity, the government is always given a pass.
We are in an economic morass because of the eight years of failed Bush policies, greed on Wall Street, tax breaks for the rich, etc. Government’s culpability which, I believe, is really the gravamen of our economic problems is never mentioned at all. Democrats and Liberals don’t dare point to Democrats and liberal policies as having anything to do with the collapsing economy. That is why they always say that this is the worst economy since the Great Depression, as they also said when Clinton ran for President. They don’t dare say it is the worst economy since Jimmy Carter, since that would remind the American people that the Democrats screwed up that one as well.
Unmentionable Causes of the Current Economic Mess
So we have homeowners, who should have never qualified for a mortgage, about to receive bailouts from all the responsible people who took mortgages they could afford, when they could afford them. Do you ever hear about any of this cast of characters mentioned by President Obama or the main stream media? No. It wasn’t the government actively pushing social policy on those people least able to handle it. It was greedy banks and unscrupulous lenders, trying to avoid being branded racists, who took advantage of these poor ignorant people. Perhaps if the government hadn’t destroyed our education system, these people might have read what they were about to sign.
How Do you Solve Only Half a Problem?
As these characters are never mentioned as having a role in the problem, how can you ever hope to fix the problem if these bad actors are still going about their business doing what caused the crisis and blaming everyone else. President Obama demonstrates his inexperience more profoundly every day, seemingly making things up as he goes along. That is not leadership and what we need now in times of crisis is leadership. Obama has never shown the courage or willingness to take on his own party. Without rooting out these characters and really fixing the whole problem, it will only happen again down the road.
What we need now is a leader. Someone who actually has experience running the executive branch of a state. Someone who is not afraid to take on the entrenched power of their own party and has succeeded in doing so. Is there anyone out there who fits that bill? Gee, that sounds like Sarah Palin.
With Citibank caving in on the subject of cramdowns, we are all about to take it in the neck. What the cramdown is, is where a bankruptcy judge can re-write the terms of a mortgage, including lowering the principal on the loan, in effect, “cramming” the loss down the banks throats.
Now I’m no fan of the banks making loans to people who shouldn’t have gotten them, but it has been a long standing principle that in a foreclosure, the bank gets the house, if you can’t pay. If the loan is structured right, that is, a good down payment then this presents good security for the bank. In return, banks have traditionally been able to offer lower rates on mortgages than on many other kinds of loans. However, if you change the rules of the game, such that banks no longer have that kind of security, what is any rational banker going to do? That’s right, raise the interest rates.
So any banker writing a mortgage in the future, will have to weigh that some day in the future his security could be taken away at the stroke of some legislator’s pen. While it is true that, Sen. Schumer’s proposed deal is only on loans in place at the time of the legislation and only if the bank and the consumer tried and were unable to negotiate different terms, it still hangs over the mortgage industry. A banker today, will have to consider that in the next thirty years of the mortgage I am about to write, there may be another serious economic downturn, and in that downturn, some legislator may decide to do this again. Therefore, I’ll add 1/4% or 1/2% to the rate to cover it, on every mortgage I write from this day forward.
Let’s recap. Government programs (Fannie, Freddie, Community Reinvestment Act, Clinton’s Justice Department, HUD) push very hard on banks to make loans to marginal lenders. The housing bubble bursts causing financial crisis and government rides to the rescue so that we can pay more for mortgages forever.
And we keep electing these people.
