Link
"In several of the largest school systems across the country -- from Baltimore to Cleveland to Atlanta and Oakland, Calif. -- half of the students are dropping out."
"A recent study by the Department of Education found that 31 percent of American students were dropping out or failing to graduate in the nation's largest 100 public school districts."
Saturday, September 20, 2008
Obama Is Stoking Racial Antagonism - Rush Limbaugh
Article Link
The Obama campaign is taking Rush Limbaugh out of context in its ads. Read the above article.
The Obama campaign is taking Rush Limbaugh out of context in its ads. Read the above article.
Glass-Steagall Act and the Home Loan Crisis
Link
Some are trying to blame the repeal of the Glass-Steagall Act on the Republicans. A little history. Leach, one of the sponsors, (Gramm-Leach-Bliley Act) recently spoke at the Democratic convention. President Clinton signed the bill in 1999. "The final bill resolving the differences was passed in the Senate 90-8-1 and in the House: 362-57-15".
In addition, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee pushed lenders to give loans to people who did not qualify. "He encouraged the companies to guarantee more "affordable" mortgages, thus abetting their disastrous plungeintosubprime and Alt-A loans. He also pushed for, and got, an increase in the conforming-loan limits to allow Fan and Fred to securitize and guarantee larger mortgages. And he pressured regulators to ease up on their capital requirements -- which now means taxpayers will have to make up that capital shortfall." - WSJ
Some are trying to blame the repeal of the Glass-Steagall Act on the Republicans. A little history. Leach, one of the sponsors, (Gramm-Leach-Bliley Act) recently spoke at the Democratic convention. President Clinton signed the bill in 1999. "The final bill resolving the differences was passed in the Senate 90-8-1 and in the House: 362-57-15".
In addition, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee pushed lenders to give loans to people who did not qualify. "He encouraged the companies to guarantee more "affordable" mortgages, thus abetting their disastrous plungeintosubprime and Alt-A loans. He also pushed for, and got, an increase in the conforming-loan limits to allow Fan and Fred to securitize and guarantee larger mortgages. And he pressured regulators to ease up on their capital requirements -- which now means taxpayers will have to make up that capital shortfall." - WSJ
Friday, September 19, 2008
Bailout Proposal - An Addendum
The government proposes to take all the bad loans and hold them til they become valuable again. I suppose this is needed to free up the financial markets. Banks are now buying short term treasuries at 0.02% interest because they are safe, not even loaning money to other banks.
But here is my proposal.This proposal will affect all executives of any firm that "sells" it's loans to the government. Since Obama thinks 250K is rich, I propose that all salaries, bonuses, pensions, golden parachutes, etc. for executives of above that amount be placed in a special account until the government rids itself of all the loans from that firm. Money from that fund could be used to pay taxes. It could also be used to pay existing obligations, like mortgage payments, provided that those assets are pledged as collateral. These monies would be invested in U.S. treasuries. Upon completion of the sale of the loans, any losses would by made up by these funds, the rest returned to the executives.
But here is my proposal.This proposal will affect all executives of any firm that "sells" it's loans to the government. Since Obama thinks 250K is rich, I propose that all salaries, bonuses, pensions, golden parachutes, etc. for executives of above that amount be placed in a special account until the government rids itself of all the loans from that firm. Money from that fund could be used to pay taxes. It could also be used to pay existing obligations, like mortgage payments, provided that those assets are pledged as collateral. These monies would be invested in U.S. treasuries. Upon completion of the sale of the loans, any losses would by made up by these funds, the rest returned to the executives.
Poll Results
Should Hillary replace Biden as VP? 77% No, 22% Yes (7-2)
Should Obama have done the town hall meetings? 50% Yes, 37% No- Too many debates, 12% No - that's McCain turf, (4-3-1)
Should Obama have done the town hall meetings? 50% Yes, 37% No- Too many debates, 12% No - that's McCain turf, (4-3-1)
Rangel Watch Continues
Now we find out that Rangel has been using a congressional parking garage as free storage for his car. It has not been registered since 2004. Under IRS rules the free parking is considered as income.
http://www.nypost.com/seven/09182008/news/regionalnews/big_wheel_benz_the_rules_129646.htm
http://www.nypost.com/seven/09182008/news/regionalnews/big_wheel_benz_the_rules_129646.htm
Thursday, September 18, 2008
What are the underlying cause of the bank crisis?
One type of fraud. There were people who would buy homes, have the houses over-valued, then sell them to people as investment, who didn't know the true-value of the home. These victims had their credit ruined, and the bank was stuck was houses where the loan value far exceeded the value of the house.
Speculation and bubble. People where buying houses as investments, hoping to "flip" them other investors in months. At each "flip", the loan value increased, putting the true value of the property out-of-sync with loan value when the bubble popped.
Speculation and over-buying. People would buy houses on low-interest, adjustable rate loans with minimal down-payments. These people may or may not planned to live in the house. They expected the value of the house would increase before the adjustable rate kicked-in, and they would sell the house and pocket the difference in appreciation.
Over-buying and wage inflation. People would buy more house then they would normally could not afford. These people hoped that their future salaries would be able to cover the increase in payments when the rate-increase kicked in. In times of high inflation, this is a normally a sound plan.
Fraud in loan agreement. People would be sold deceptive loans by brokers. They were unaware of the consequences of adjustable-rate loan. These people planned to live in home and where not planning on future income increases. Some where told to exaggerate their income or the brokers exaggerated the buyers income or forged document's. Brokers gained through fees generated.
OK, these are the ones I can think of. Any more?
Speculation and bubble. People where buying houses as investments, hoping to "flip" them other investors in months. At each "flip", the loan value increased, putting the true value of the property out-of-sync with loan value when the bubble popped.
Speculation and over-buying. People would buy houses on low-interest, adjustable rate loans with minimal down-payments. These people may or may not planned to live in the house. They expected the value of the house would increase before the adjustable rate kicked-in, and they would sell the house and pocket the difference in appreciation.
Over-buying and wage inflation. People would buy more house then they would normally could not afford. These people hoped that their future salaries would be able to cover the increase in payments when the rate-increase kicked in. In times of high inflation, this is a normally a sound plan.
Fraud in loan agreement. People would be sold deceptive loans by brokers. They were unaware of the consequences of adjustable-rate loan. These people planned to live in home and where not planning on future income increases. Some where told to exaggerate their income or the brokers exaggerated the buyers income or forged document's. Brokers gained through fees generated.
OK, these are the ones I can think of. Any more?
Market jumps on Paulson plan report
" U.S. stocks soared more than 2 percent in late afternoon trading on Thursday on a Treasury plan to resolve the financial crisis.
U.S. Treasury Secretary Henry Paulson is talking about a Resolution Trust Corp-type solution to the financial crisis, CNBC reported, citing Wall Street sources.
S&P financial stocks were up over 8 percent."
In effect, all the bad and questionable loans would be backed by the government. So if your neighbor paid $200,000 for a house that is now worth $100,000, the taxpayers will pick up the difference. And since the government will want to get rid of that house quickly, the "going" price will decrease even more.
Should the taxpayers pick up the tab for bad purchase decisions?
U.S. Treasury Secretary Henry Paulson is talking about a Resolution Trust Corp-type solution to the financial crisis, CNBC reported, citing Wall Street sources.
S&P financial stocks were up over 8 percent."
In effect, all the bad and questionable loans would be backed by the government. So if your neighbor paid $200,000 for a house that is now worth $100,000, the taxpayers will pick up the difference. And since the government will want to get rid of that house quickly, the "going" price will decrease even more.
Should the taxpayers pick up the tab for bad purchase decisions?
http://uk.reuters.com/article/usMktRpt/idUKN1844149620080918
Biden says it is patriotic to pay more taxes.
“We want to take money and put it back in the pocket of middle class people,” Biden said today during an appearance on Good Morning America. “Anyone making over $250,000…” the host began to question, “Is going to pay more,” Biden interjected. “You got it. It’s time to be patriotic, Kate. It’s time to jump in, it’s time to be part of the deal, it’s time to help get America out of the rut.”
Is redistribution of wealth patriotic?
http://blogs.wsj.com/washwire/2008/09/18/biden-on-tax-increase-for-wealthier-citizens-time-to-be-patriotic/?mod=googlenews_wsj
Is redistribution of wealth patriotic?
http://blogs.wsj.com/washwire/2008/09/18/biden-on-tax-increase-for-wealthier-citizens-time-to-be-patriotic/?mod=googlenews_wsj
Negative Campaign
Despite Obama pledge for a new tone, 77% of Obama's ads were negative versus 56% of McCain's, in the week since the Republican convention. I guess he is not a "new kind" of candidate. Where is the politics of hope?
Read Source
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/17/AR2008091703581.html
Read Source
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/17/AR2008091703581.html
Product Update - Tropicana Orange Juice
I emailed Tropicana about the cracked container. They sent two $6 coupons for one item, and two $1 off coupons. Good corporate action deserves praise. It also shows it pays to inform them when there is a problem.
Wednesday, September 17, 2008
Another Dirty Trick
Palin's private email account was hacked and placed on line. No wonder so few people want to go into public office when those opposed to them will stop at nothing.
Obama "friends" may lose this election for him. They need to sit on their hands til the end of the election.
Obama "friends" may lose this election for him. They need to sit on their hands til the end of the election.
How Washington Failed to Rein In Fannie, Freddie
A good read.
"On the other side stood Barney Frank, a Massachusetts Democrat who said the companies served a public purpose. They were in the business of lowering the price of mortgage loans."
"In the Senate, Robert F. Bennett (R-Utah) added an amendment giving Congress the ability to block receivership, weakening that bill to the point where the White House would no longer support it. Bennett's second-largest contributor that year was Fannie Mae; his son was then the deputy director of Fannie's regional office in Utah."
On MSNBC, Andera Tantros, said in 2005 Senate Democrats blocked a vote (you need 60 votes for passage) for a strong independent regulator.
Here is an article on the bill the passed the House.
http://www.iht.com/articles/2005/10/27/business/overhaul.php
"On the other side stood Barney Frank, a Massachusetts Democrat who said the companies served a public purpose. They were in the business of lowering the price of mortgage loans."
"In the Senate, Robert F. Bennett (R-Utah) added an amendment giving Congress the ability to block receivership, weakening that bill to the point where the White House would no longer support it. Bennett's second-largest contributor that year was Fannie Mae; his son was then the deputy director of Fannie's regional office in Utah."
On MSNBC, Andera Tantros, said in 2005 Senate Democrats blocked a vote (you need 60 votes for passage) for a strong independent regulator.
Here is an article on the bill the passed the House.
http://www.iht.com/articles/2005/10/27/business/overhaul.php
House passes bill allowing offshore drilling
"Opponents of the bill say since the bill does not include a revenue sharing plan, states will not have an incentive to open their coasts to exploration. Another complaint is that the requirement that drilling occur at least 50 miles away from the U.S. coast closes a great deal of the outer continental shelf where oil may be located."
Another pull the wool of the eyes of the American people attempt by Pelosi et. al.
I don't believe they want oil drilling but want to appear they do because they don't want to lose their seats in congress.
Read Source
Another pull the wool of the eyes of the American people attempt by Pelosi et. al.
I don't believe they want oil drilling but want to appear they do because they don't want to lose their seats in congress.
Read Source
The bailouts
"AIG's bailout brings to about $700 billion the total of U.S. rescue efforts to stabilize the financial system and housing market"
link
"AIG's rescue calls for the U.S. Federal Reserve to lend up to $85 billion to AIG for two years in exchange for a 79.9 percent equity stake."
"AIG will pay interest at a steep 8.5 percentage points above the three-month London Interbank Offered Rate, making the current rate equal to about 11.4 percent."
Is the government waisting tax payers money or getting assets at fire sale prices? Time will tell. Given the consequences of failure, maybe the government had no choice. Given the risks involved, no other company could absorb these troubled companies. But it seems to me, that unless there is great amount of underlying fraud, this appears to be just a crisis of confidence. Which means the government, because of it's ability to raise cash, may in the end make a lot of money.
link
"AIG's rescue calls for the U.S. Federal Reserve to lend up to $85 billion to AIG for two years in exchange for a 79.9 percent equity stake."
"AIG will pay interest at a steep 8.5 percentage points above the three-month London Interbank Offered Rate, making the current rate equal to about 11.4 percent."
Is the government waisting tax payers money or getting assets at fire sale prices? Time will tell. Given the consequences of failure, maybe the government had no choice. Given the risks involved, no other company could absorb these troubled companies. But it seems to me, that unless there is great amount of underlying fraud, this appears to be just a crisis of confidence. Which means the government, because of it's ability to raise cash, may in the end make a lot of money.
David Evans on Global Warming
"I devoted six years to carbon accounting, building models for the Australian government to estimate carbon emissions from land use change and forestry. When I started that job in 1999 the evidence that carbon emissions caused global warming seemed pretty conclusive, but since then new evidence has weakened that case. I am now skeptical."
A good read.
http://mises.org/story/2571
A good read.
http://mises.org/story/2571
Tuesday, September 16, 2008
Protesters
From a friend:
There were protesters on the train platform handing out pamphlets on the evils of America . I politely declined to take one.
An elderly woman was behind me getting off the escalator and a young (20-ish) female protester offered her a pamphlet, which she politely declined.
The young protester put her hand on the old woman's shoulder as a gesture of friendship and in a very soft voice said, 'Lady, don't you care about the children of Iraq ?'
The old woman looked up at her and said, 'Honey, my father died in France during World War II, I lost my husband in Korea , and a son in Vietnam.
All three died so you could have the right to stand here and bad mouth our country.
If you touch me again, I'll stick this umbrella up your ass and open it.'
~God Bless America ~
There were protesters on the train platform handing out pamphlets on the evils of America . I politely declined to take one.
An elderly woman was behind me getting off the escalator and a young (20-ish) female protester offered her a pamphlet, which she politely declined.
The young protester put her hand on the old woman's shoulder as a gesture of friendship and in a very soft voice said, 'Lady, don't you care about the children of Iraq ?'
The old woman looked up at her and said, 'Honey, my father died in France during World War II, I lost my husband in Korea , and a son in Vietnam.
All three died so you could have the right to stand here and bad mouth our country.
If you touch me again, I'll stick this umbrella up your ass and open it.'
~God Bless America ~
Demcoratic Connections to Fannie Mae and Freddie Mac
Jamie Gorelick ($26 million) and Jim Johnson made millions at the companies, besides Franklin Raines.
And who got campaign contributions from Fannie Mae and Freddie Mac?
No.1 Sen Christopher Dodd (D-CT) $165,400
No.2 Sen Barack Obama (D-IL) $126,349
No.3 Sen John Kerry (D-MA) $111,000
Obama, got that much in four year. By comparison McCain got $21,500 in 20 years.
link
http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html
And who got campaign contributions from Fannie Mae and Freddie Mac?
No.1 Sen Christopher Dodd (D-CT) $165,400
No.2 Sen Barack Obama (D-IL) $126,349
No.3 Sen John Kerry (D-MA) $111,000
Obama, got that much in four year. By comparison McCain got $21,500 in 20 years.
link
http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html
Interesting Facts - $28,500 Dinner
Barbara Streisand host a $28,500 a plate dinner fundraiser for Obama.
Poll Results
Will Palin Help the Republican Ticket?: 80% Yes, 20% No (8-2).
Who will win the Presidential Election? 50% Too Close, 22% Democratic, 22% Republican (5-2-2).
Who will win the Presidential Election? 50% Too Close, 22% Democratic, 22% Republican (5-2-2).
Pelosi's Ethics Reform?
Pelosi promised ethics reforms, so why has she not removed Rangel?
"...Mr. Rangel acknowledging on Monday that there were more errors and omissions on his financial disclosure forms"
"Mr. Rangel, a 19-term congressman, has been rattled by an assortment of ethics questions since July, when The New York Times reported that a prominent developer had allowed him to lease rent-stabilized apartments, including one that he used as a fund-raising office, in violation of state regulations."
source link
"...Mr. Rangel acknowledging on Monday that there were more errors and omissions on his financial disclosure forms"
"Mr. Rangel, a 19-term congressman, has been rattled by an assortment of ethics questions since July, when The New York Times reported that a prominent developer had allowed him to lease rent-stabilized apartments, including one that he used as a fund-raising office, in violation of state regulations."
source link
Obama's economic exaggerations
Souce Link
"Even if Obama is right that the foreclosure rate is the worst since the Great Depression, it's spurious to evoke memories of that great national calamity when talking about today -- it's akin to equating a sore throat with stomach cancer. According to the MBA, 6.4 percent of mortgages are delinquent to some extent, and 2.75 percent are in foreclosure. During the Great Depression, according to Wheelock's research, more than 50 percent of home loans were in default."
"Even if Obama is right that the foreclosure rate is the worst since the Great Depression, it's spurious to evoke memories of that great national calamity when talking about today -- it's akin to equating a sore throat with stomach cancer. According to the MBA, 6.4 percent of mortgages are delinquent to some extent, and 2.75 percent are in foreclosure. During the Great Depression, according to Wheelock's research, more than 50 percent of home loans were in default."
Monday, September 15, 2008
Jimmy Carter - the forgotten economy.
The Democrats are trying to say this is the worst economy since the great depression. Do they forget Jimmy Carter? Unemployment reached 7.8% in July 1980. Inflation reached 14.76% in March 1980. Interest rates reach 20% in April 1980.
Fannie Mae Supported Jesse Jackson
If you think Republicans controled Fannie Mae:
$660,000 given in grants to Jesse Jackson's The Citizenship Education by Fannie Mae between 1996 and 2004.
The Citizenship Education Fund was established by the Reverend Jesse L. Jackson, Sr., in 1984
$660,000 given in grants to Jesse Jackson's The Citizenship Education by Fannie Mae between 1996 and 2004.
The Citizenship Education Fund was established by the Reverend Jesse L. Jackson, Sr., in 1984
Talk or Action - Equal Pay for Women
Obama campaign is saying McCain doesn't support equal pay for equal
work, because he doesn't support a bill that is a trial lawyer
employment bill.Obamam talks and McCain walks.
"On average, women working in Obama's Senate office were paid at least $6,000 below the average man working for the Illinois senator"
"After excluding interns, the average pay for the 30 women on McCain's staff
was $59,104.51. The 16 non-intern males in McCain's office, by
comparison, were paid an average of $56,628.83."
link
work, because he doesn't support a bill that is a trial lawyer
employment bill.Obamam talks and McCain walks.
"On average, women working in Obama's Senate office were paid at least $6,000 below the average man working for the Illinois senator"
"After excluding interns, the average pay for the 30 women on McCain's staff
was $59,104.51. The 16 non-intern males in McCain's office, by
comparison, were paid an average of $56,628.83."
link
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