If you are not a progressive, it is generally not surprising when the government institutes some wonderful new “reform” on top of the last reform that didn’t work, and unintended consequences come along for the ride.  The free market tends to correct these disturbances quickly, but laws are rigid things and don’t adapt without passing more legislation or getting the courts to perform the surgery.

So it should come as no surprise that the 2009 Credit CARD (Card Accountability Responsibility and Disclosure) Act, passed to protect Americans from those evil profit seeking credit card companies, is now creating a booming business for loan sharks.  Gee, that’s so much better for the little guy.  Here’s how it works.

Credit decisions are based on risk versus return.  The higher the risk, the higher the price (interest rate) to compensate for that risk.  If the card issuers cannot price that risk appropriately, they don’t issue the card or the reduce the credit limit.  So if you are a working class stiff who carries a credit card, not because you are a spendthrift, but in case of emergencies your benevolent government has stuck it to you again.  Say this individual is faced with a situation where their car breaks down and they have to fix it so that they can get to work.  Since their credit card was just cancelled, what do they do?  One of their few options is to use a service like payday loans.  The interest rate on these loans can be 200%, 400%, even 900%. If that service doesn’t work there is always pawn shops and loan sharks. Isn’t it great that these folks won’t be gouged by 30% interest rates from credit card companies?  You ain’t seen nothing yet.  Just wait until the Consumer Financial Protection Bureau opens its doors.

The liberty of making choices is stolen from another group of Americans, with the panjandrums in Washington passing down edicts from on high.  The free market would quickly supply the credit that is needed and price it competitively.  These financial “fixes” that leave monstrosities like Fannie Mae and Freddie Mac untouched make nice sound bites, but in reality take options away from hard working Americans.  It is time to leave us alone.

That’s my opinion; I’d like to know yours.  Please comment below.

Barney Frank, in an interview with CNBC’s Maria Bartiromo, made the bold statement that, “heirs who now inherit, they haven’t done this on their own, they haven’t worked hard, that’s a pure gift to someone who was lucky enough to be related to someone or be friendly with someone who left them money.”  So Mr. Frank concludes that they are not entitled to that money.  So tell me what is the argument that government should get nearly half of it?  How did they earn it?

Well, it is not about earning it, is it?  It is about wealth redistribution.  It is as if you were successful enough to buy a ten thousand square foot house and when you die, instead of your wife and children being allowed to continue living in their home, their neighbors get free use of forty-five hundred square feet of the house.  Is that moral?  But the government needs the money.  Barney Frank needs the money because the debt is so high.  How did it get that way?

Barney Frank told us time and again that Fannie Mae and Freddie Mac were sound and that no taxpayer dollars would ever be used to bail them out.  Now with the potential risk of $400 billion or more in losses at the two mortgage giants, Barney needs more money to fix what he insisted wasn’t broken.

Just because estates exist doesn’t mean Barney gets a piece of the action.  Those who earned it paid taxes on those earnings.  When they saved some of that money, they paid taxes on the interest.  If they invested in companies that paid dividends, first the company paid taxes on the income and then the individual paid taxes on the dividends.  At the end of their life, Barney Frank gets a fourth bite at the apple?

When this subject was debated this morning on Fox, liberal commentator Ellen Ratner, cheerily offered that “there’s a five million dollar deduction, there’s a five million dollar deduction” as if that somehow changed the moral calculus.  Yes, I robbed you, but geez didn’t I leave you cabfare?  What an ingrate you are.

The American Dream partly consists of giving your children a better start than you had.  To help them go further than you went and to see their children prosper as well.  Where in the American Dream is the desire for more government, bigger government, more wasteful government that can’t live within its means?

The government has gotten too deep into the game of giving stuff away.  The root of the current crisis is the government trying to help people who couldn’t afford a mortgage buy homes.  Stop trying to give stuff away.  Give not, take not.

That’s my opinion; I’d like to know yours.  Please comment below.

The latest news on the economy is not encouraging: a mere 39,000 jobs added and the unemployment creeps ever closer to 10% at 9.8%.  In spite of this, or apparently ignorant of it, the lame duck House voted yesterday for another whopping tax increase on the most productive among us. Yes, yes, they will beat the class warfare drums about tax “cuts” for the rich, when what they are voting on is not a cut at all, but either leaving things the way they are or raising taxes.  With the recovery barely showing a pulse, it is not the time to take money out of the hands of free market capitalists and put it in the hands of the government.  Who do you think can pull the economy out of the doldrums, entrepreneurs or government bureaucrats?

The “We’re For the Little Guy Myth”

We learned yesterday that Peter Orzag, the former White House Budget Director, may be taking a job at Citibank.  You remember Citibank, they got $45 billion in a taxpayer bailout.  The actual job is unimportant.  What is important for Citibank is having a guy on the payroll who can call the White House and they’ll take his call.  They guy who replaced him as budget director, Jacob Lew, worked at Citibank from 2006 to 2009. 

How about some more cronies?  There is former Treasury Secretary under Clinton, Robert Rubin who became an executive-committee chairman at Citigroup.  Treasury still owns 11% of Citi stock.  As Obama raked in the campaign cash from Goldman Sachs, we have Timothy Geithner’s replacement as head of the New York Fed, William Dudley, was a former chief economist at Goldman Sachs.  Former Democrat senator and Governor Jon Corzine was a previous chairman of Goldman Sachs.

But don’t worry the Democrats are looking out for the little guy.  They ignore Fannie Mae and Freddie Mac in the financial regulations overhaul and hand the bill to the little guy.  They bail out GM and Chrysler, turning over the bulk of the company’s ownership to the unions and hand the bill to the little guy.  TARP money goes to foreign banks to cover their losses and they hand the bill to the little guy.

Crony Capitalism Reality

The reality is that Progressives like crony capitalism.  After all, how can they possibly mount effective political campaigns without money?  From the little guy?  Forget it.  They make deals with big business.  They protect the big guys from competition from the free market capitalists and the big guys pour money into Democrat coffers.  Think of all the money that flowed into Wall Street.  Why?  Because they were “too big to fail”.  How many small and mid-sized banks were shuttered?  Since 2008 there have been 314 bank failures in the U.S., only 18% of those had assets of over $1 billion. 

The big guys can take enormous risks and if they pay off they make enormous profits and personal wealth for their management.  But if the risks don’t pay off, do they go out of business?  Hardly.  They go to the government with dire predictions of a collapse of the economy unless the government steps in and when it does, the bankers get their big bonuses and the little guy gets stuck with the bill.

Meanwhile Back at the Fed

If the Democrats are not trying to destroy the economy through fiscal policy, then they give monetary policy a try.  Take a look:

httpv://www.youtube.com/watch?v=PTUY16CkS-k

The New Congress

The Republicans are ready to take control of the House in January and narrow the majority of the Democrats in the Senate.  They have stumbled badly before when they were in the majority, but in their four year timeout, it appears they have learned something.  They seem to be on the right track and we hope they remain so.  We’ll be watching.

President Obama met with leading Hispanic legislators Robert Menendez, Nydia Velázquez, and Luis Guitierrez.  It is believed they were there to discuss language being added to a Pentagon policy bill at the behest of Harry Reid, who is desperately trying to hold on to his seat by energizing the Hispanic vote to come out for him on November 2.  The language would provide a path to citizenship to any illegal alien who came to this country before the age of sixteen, stayed here five years, complete high school and either served two years in the military or completed two years of college. 

Of the twelve or so million illegal immigrants in this country now, I wonder, how many either meet these qualifications or are very near to doing so?  This won’t get them to the voting booth on November 2, but it is meant to appeal to all others who support amnesty.  At the same time, if this passes those who benefit from the bill will be reminded constantly that it was those wonderful Democrats who pulled this stunt off and expect to be repaid with their votes in all future elections.

Let’s walk this through.  A person comes here, perhaps with their family perhaps not, before the age of sixteen.  Requirement number one is that he or she graduates from high school.  Okay, so they go to a public school that is funded by taxpayers.  Next requirement is that they spend two years in the military or two years in college.  For the military, which is also a taxpayer funded job, there are risks, not the least of which is putting your life on the line, but it also provides additional training.  From my perspective anyone who is not a citizen of the United States but is willing to die to defend it, is alright in my book and has earned the right to become a citizen, but come here legally, okay?  The alternative option is to complete two years of college.  That seems a much tougher option because we all know how much college costs.  Or has that changed too?

As part of ObamaCare, that’s right ObamaCare the massive takeover of healthcare in this country, it also made Sallie Mae (Student Loan Marketing Association) the sole provider of government backed student loans, pushing banks out of this business.  Another government takeover and another Government Sponsored Entity (GSE).  Can you name two other GSEs?  That’s right Fannie Mae and Freddie Mac for which you are already on the hook for $140 billion.  But back to our story. 

What does this have to do with illegal immigration?  Well, Sallie Mae backed student loans are guaranteed by the government.  If the student ultimately fails to pay the loan, in the past, the government protected the banks by making sure they got repaid.  Now by pushing those pesky banks out of the way, who might aggressively try to collect the money, if the government extends a student loan to an illegal immigrant and the immigrant doesn’t pay it, oh well, you and I can pick up the tab, get it?  Voila! Free scholarships for illegal aliens to help them stay out of the military, complete their two year college requirement, be eternally grateful to the Democrats who gave them this pathway to citizenship, and you get the bill for public school, and college or the military. 

They break the law to come into this country, you pay to give them an education, grant them citizenship and so they can become loyal Democrats who will vote for more government to take away your liberties and transfer wealth from you to them.  Sounds like a plan.  I’ve got a better plan and it begins on November 2.  Throw the bums out and repeal all the trash they left behind.  Better yet, you can tell them now, “Don’t even think of putting this in the Pentagon bill and if you do we want the Republicans to block it.” What do you think?

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.

Revised GDP numbers suggest that going down is exactly what the economy is doing.  The government revised second quarter GDP growth from 2.4% down to 1.6%.  Even Paul Krugman is saying the stimulus didn’t work, but his solution is to drive the country into bankruptcy faster.  Krugman’s complaint was that the stimulus wasn’t big enough.  He also believe we should,” use Fannie Mae and Freddie Mac, the government-sponsored lenders, to engineer mortgage refinancing that puts money in the hands of American families.”  Fannie and Freddie have already sucked $160 billion out of the Treasury and Mr. Krugman wants to back up and re-inflate the housing bubble.  Talk about failed policies of the past, sheesh!

The solution to the jobs issue is private industry.  The problem is that this is the most anti-business government in memory.  Business is the target of the administration’s ire, tax policies, health care policies, cap and trade schemes, repeal of the Bush tax cuts, card check, financial regulation, have I left anything out?  So business is sitting on its hands.  No matter how much cash it may be accumulating it does not want to take any steps, like expanding, until the full weight of all these choking policies are understood and priced out or until the Democrats are run out of the Congress and the anti-business sentiment is lifted there.

So let the Joe Biden show continue.  The man who says he know little about economics and proves it with every speech will go on telling us how the stimulus is working exactly as planned.  President Obama will continue to take a new vacation about every 90 days and we will cross our fingers that there is something left to recover when we recover our government from these inexperienced, clueless dolts.

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.”

The Dodd-Frank Act that in a mere 2,000 pages sought to put the control back in financial regulation skipped right over Fannie Mae and Freddie Mac the Government Sponsored Enterprises that were at the heart of the fiscal crisis and are bleeding red ink.  Focusing instead on those evil bankers on Wall Street the Dodd-Frank Act really put those guys in a box, until Goldman Sachs slipped its fetters faster than Houdini.  So who’s buried under the pile of rubble that is the latest masterpiece of our massive government, Betsy Jensen.  Who is Betsy Jensen?

Betsy Jensen is a farmer in southwest Minnesota.  She and her family grow wheat and soy beans.  She doesn’t have a mortgage, so she didn’t cause the housing bubble.  But she does use derivatives to control the risk in farm prices which can be rather volatile.  For example, a bushel of wheat went for $18.69 in February of 2008 whereas it was selling for $3.49 in July of 2010.  A farmer has to buy their seed and fertilizer at the beginning of the growing season and they don’t sell their product until the harvest.  If prices fluctuate wildly during that interval, it isn’t hard to imagine what that can do to your business, let alone your sleep patterns.

So where do derivatives come in?  Farmers like Betsy can negotiate a guaranteed price for their grain with their customers.  Betsy risks missing out on some profits if the prices go up as they have recently (45%) due to fires in the wheat producing region of Russia, but she also is protected against a price drop, for similar reasons beyond her control.  She recently negotiated a price of $7.15 per bushel and with that knowledge, she can manage her farm business and sleep a little more peacefully.  For her purchases she can also use derivatives to buy fuel and fertilizer, where the latter has seen price fluctuations of $435 to $685 per ton.  Then along come Barney Frank and Chris Dodd, a couple of career politicians who never worked in the private sector.

The Dodd-Frank Act says it is unlawful to enter into swaps (derivatives) “in excess of such amount as shall be fixed from time to time” by the Commodities Futures Trading Corporation (CFTC).  That doesn’t sound like a free market to me.  What if, in Betsy’s example, the CFTC didn’t get around to raising the amount on wheat above $5 per bushel?  Betsy couldn’t arrange to sell it for $7.15.  What if the grain elevator couldn’t turn around and sell Betsy’s wheat for the 45% increase in price due to the Russian fires?  Do you think with a cap on the upside they might not be willing to pay as much for Betsy’s wheat?

From Dodd-Frank to Bill O’Reilly we hear about the evils of speculators.  O’Reilly used to rail against the speculators when gas prices were rising toward $5 per gallon.  The evil, greedy speculators were driving up the price of gas!  But little mention was made of speculators when the price of gasoline fell back down?  Did the speculators retire?  Go on vacation?  The reality is that speculators don’t care if the price goes up or down, they only care it moves in the same direction on which they are betting.  They can drive the price down just as fast as they can drive it up.  But they are useful, not evil.

Speculators bring liquidity, that is, money to the market.  Betsy Jensen estimates that about one-third of the purchasers of wheat contracts are traders who never take physical control of the product.  But by adding their view and their money to the market they keep prices from fluctuating wildly.  If these traders are banned then, as she put it, one-third of her customers would disappear.  With one-third fewer customers the price swings will increase rather than decrease.  Remember, a trader who does not take delivery of the wheat can make money on small swings in the price and is likely to get in or get out on smaller moves and thus change the market price accordingly.  If only those who take physical possession of the product are in the market, then other factors such as transport, storage, spoilage, must be factored into each transaction and the price swings will be wider and wilder.

But Betsy said it best, “I may not be able to manage Mother Nature, but I can manage my risk with derivatives.”  If only our government would get out of her way and let her do so.

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.