The last 90 years of American politics and economic philosophy has been a conflict between two philosophies. The philosophy that made America, that of rugged individualism, equality of opportunity and free markets. The other is the philosophy of Franklin Roosevelt, that policy needs to focus first on the forgotten man. An interesting question is there room for both at the policy table? The left would tell us that income inequality is the issue of our time. Income inequality is a not a problem, any more than inequality of talents, ambition, goals, or activities is a problem. Not everyone should earn the same because not everyone wants to earn the same, not everyone does the same thing, not everyone wants to live in the same type house or drive the same car. If we do different things, want different things, and contribute different things then why would we want to earn the same thing? America Read more
Spain is begging for a Eurozone banking Union to bail it out of its mess. Is the Trillion dollar a year spendthrift U. S. on the same path?
The head of Spain’s biggest bank has made an impassioned plea for Europe to adopt a so-called union of its eurozone banks as an “essential” route out of the region’s crisis http://link.ft.com/r/YIQXNN/A5M9A0/GKTDKD/R3WXB1/YGOUZV/ID/h?a1=2012&a2=11&a3=14
1 in 4 Americans think government management of the economy is better than a free market. The problem is that they are often the affluent who are manipulating the government for their benefit. The pink slime (lean meat texture) issue is a great example. The issue is overblown and the government was right to approve it for addition to ground beef, but it was wrong to not require labeling. The protein is not as good as muscle protein because it comes more from connective tissue. How did they get an exemption from the labeling requirements? They had good lobbying. TARP is another example. The Troubled Asset Relief Program was promoted well. America faced an economic meltdown (due partially to bad government policies) that would have been a depression as deep as 1893 or 1920. Not to act to restore liquidity in the banking system would have been just short of treason. Read more
1.2 Billion to Congressman George Miller’s son’s client. The company is building its new factory in Mexico.
There may not have been a Republican response, but there is a conservative one. If you want evidence that he is right, you owe it to yourself to watch this video. If you think he is wrong, then you really owe it to yourself to look at this video. Ron Paul won the last debate. I think the time has come to take him seriously. Read more
The global markets are shaken, but not panicked by the S&P downgrade. The EU is trying to by up Italian and Spanish bonds to avoid a meltdown in Europe. It is hard to believe some people still hold that. borrow, tax, and spend is the key to long term prosperity.
The Fed’s bailed out with 35 billion in bonds three wholesale credit unions. The total amount involved is around 50 billion dollars. In an effort to avoid the political backlash of another tax payer bailout, the plan accesses the retail credit unions who are sound and avoided the crisis. It is more of the spread the wealth mentality. Punish those who are prudent to pay for those who are not.
A jobs’ bill should tax business and give bailout money to state governments. Thank you for assisting Senators Collins and Snowe.
Congressional Candidate MicheleRollins resigned from the Wilmington Trust Board of Directors. It is a good move. It makes her free to say what she wants and gives more time for campaigning. It also removes any conflicts between being a taxpayer advocate and having a responsibility for the bank.
From today’s Washington Times, we have won a limited audit of some past Federal Reserve deals in the financial reform. Other votes smack of business as usual.
Also Tuesday, senators rejected Republicans’ efforts to force reforms for Fannie Mae and Freddie Mac, the government-backed mortgage companies that many analysts say helped spark the financial blowup by backing ill-advised loans.
For Immediate Release "If the Dodd bill does not contain bailouts, and if the Boxer amendment would 'prevent' bailouts, why are now Senators Shelby and Dodd working on another amendment to remove the bailout provisions?"—Bill Wilson, President of ALG. ALG Slams Boxer Amendment as "Doing Nothing to Prevent Future Bailouts" May 3rd, 2010, Fairfax, VA—Americans for Limited Government President Bill Wilson today dismissed an amendment offered by Senator Barbara Boxer (D-CA) to the financial takeover bill as "doing nothing to prevent future bailouts, and instead will guarantee that they occur." "Senate Democrats need to stop lying to the American people about what is in this legislation. The Boxer amendment will do nothing to prevent unlimited bailouts to creditors that will ultimately be paid for by the American people," said Wilson. "Senator's Boxer's Read more
Goldman Sachs "Given that much of the financial contagion was fueled by uncertainty about counterparties' balance sheets," Goldman Chief Executive Officer Lloyd Blankfein and President Gary Cohn wrote in a letter at the beginning of the annual report, "we support measures that would require higher capital and liquidity levels, as well as the use of clearinghouses for standardized derivative transactions." Read more at the Washington Examiner: The proposed reform would outlaw free exchanges between companies and force everyone to use the Wall Street Clearinghouses. Odd, the problem was not in private exchanges but the complex and opaque insturments by the Wall Street experts. The bill would actually enrich the people they claim caused the problem. It is no wonder, who wrote the bill but K Street lobbyists representing Wall Street. They made 3.4 billion dollars last year whilce Read more
It should be a slam dunk for Time's man of the year to be reconfirmed for a second term, but it appears that liberals and conservatives agree on at least one thing, there needs to be a growth agenda that is bigger than Wall Street. Moderates are not rocking the boat as usual. Republican Senators Jim Demint, David Vitter, and Jim Bunning have put a hold on the nomination of the Bailout King, which makes it require 60 votes out of 100 to get released to the floor. They have found allies in the left, which fears complete devastation if the economy does not turnaround soon. Socialist Bernie Sanders, who caucuses with the Democrats, is leading the defection of the left from President Obama. It has gotten so bad that the vote has been put off even though his term expires 31 January. Senate Majority Leader Reid could not count to 60 even before Scott Brown is seated. Some one should take Read more
The Government is not in a rush to take the TARP money back. It is all about control.
Vice President Biden touted the pittance of help stuck in the stimulus bill for small businesses, now we know that the government is not even making that happen. If this is help, I hate to see apathy. I finally put through one request that I thought should be approved. The funding would have given this particular client some breathing room to make it through this depression (yes, you heard me right: I dare to use the word). Not surprisingly, this client was declined. Why? Well, according to Small Business Administration guidelines, the business had to either show evidence of profitability or positive cash flow in one of the past two years. Unfortunately, this company had a loss of about $2500 in 2008. Never mind that it has been in business for ten years, and has been current on all payments. Or that it has personal credit scores of 685 and 745. Or that it has received a 20% increase Read more
Chairman of the Federal Reserve Ben Bernanke has been nominated for a second term. He has a 99% chance of confirmation allowing for a heart attack or complete collapse of the economy. That does not mean he should not be asked to justify a few policies. The Federal Reserve is paying interest on excess reserves which discourages lending. Then it acts in extraordinary ways to try to pump money into the system such as by purchasing commercial credit. If it went back to not paying interest on excess reserves, the market would correct itself. Why are taxpayers borrowing money at interest to loan to the banks which then do not have to put that money into circulation because they can have a risk free investment where they get paid interest to keep excess reserves (beyond what is required to insure solvency) in the proverbial vault? It would be nice for him to justify all of the new regulatory Read more
Joseph Murin must have read the inspector general's report and is retiring from his post as CEO of the Government National Mortgage Association which markets FHA and VA mortgages. It is the only one of the Mae and MAC family that actually has the full faith and credit of the U. S. government. If the housing market does not turn around, this could be the biggest bailout of them all. That is something we should keep in mind when we have the healthcare debate. A few facts: * The agency, which issues the only mortgage bonds to carry the “full faith and credit” of the U.S. government, packaged a record $43.5 billion in federally backed loans into securities in June. The agency’s mortgage bond volume almost doubled in the first half of this year, to $207 billion from $107 billion during the same timeframe a year ago, as the mortgage markets seized and borrowers turned to federally Read more