Friday, September 19, 2008

Feds to Spend One Trillion on Financial Mess, Free Markets and Tax Payers be Damned

How absurd can this really get. Henry Paulson, the Treasury Secretary and Ben Bernanke, the Federal Reserve Chairman, announced plans for the federal government to pump in as much as one trillion dollars to stem the sinking financial markets. That is a 1 with 12 zeros behind it. Read federal government as "tax payers." We are again bailing out a group that is so greedy and corrupt, that is mixed up with politicians and foreign governments, that never learns a lesson. American citizens are allowed to fail when they make bad choices, why not AIG? Big banks go under every year, this is nothing new. What is new is the governments willingness to double the national deficit and hand it off to the next generation. In a free market there are risks. Sometimes the risk will put you out of business. There is no small business in this country that can operate the way Wall Street and our Federal Government operate. Oh, the markets loved the news. Worldwide they gained like no other day in memory. But, the people that will foot the bill are left scratching their heads. Those tax cuts that McCain wants to make permanent...aint gonna happen. The tax cut on 95% of Americans that Obama is way. It is simply not possible with this debt load. Craig R. Smith, in a commentary to World Net Daily, has this to say... "Our best years are ahead if we learn from the mistakes that have been made and not look to government for the answers to our problems. Government is not the solution to the problem; government is the problem. We must work together. We must allow free markets to punish those who did wrong, weed out the weak borrowers and reward those who borrowed honestly. If we don't, we are headed for even more difficult times.
We can avoid those difficult times if we believe in less government, more personal responsibility and accountability from leaders in both the private and public sectors."

Welcome to the Socialist States of America. Free markets and tax payers be damned.

Wednesday, September 17, 2008

Truth In Advertising, Part 2

Barack Obama was given advanced warning about the government takeover of the mortgage giants Fannie Mae and Freddie Mac. Useful information for a politician, you might say. Especially for the "chosen one" from Illinois. Turns out that Obama's top economic advisor is a man named Franklin Raines. You may not be familiar with this name, but I will fill you in on his qualifications. Mr. Raines was the executive in charge of Fannie Mae during the peak of it snake oil sales. Mr. Raines pushed and pushed for the programs that have brought this organization to its knees. His haul for all the hard work? $90 million in bonuses over a five year period. He took over for a guy name Jim Johnson. Mr. Johnson also pocketed millions in bonuses and is also an economic advisor to Obama. Big bonuses, huge campaign contributions, a golden parachute to escape the mess and a soft landing in the Obama campaign. Does this sound like "Change We Need" ?

Truth In Advertising

Barack was on the stump yesterday in Colorado, reading from the teleprompter words prepared by a campaign speech writer. The speech went well, sounded fine, but was a contradiction unto itself. Fannie Mae and Freddie Mac were one of the topics. These are the government backed mortgage companies that gorged themselves on for a decade on the hard earned money of the lower and middle class of America. Democrats pitched in by trying to create social change in their voting districts by encouraging families to grab the American dream. This meant taking on mortgages they couldn't afford on houses that were not worth what they paid for them. Simple supply side economics. House flippers noticed that more folks were able to buy houses, greater demand, so the prices went up, to balance that supply side. Fannie and Freddie kept qualifying people for the loans and then selling them to investors in bundles. The bubble grew bigger. So, where does Barack Obama and the democrats come in again? The next two paragraphs are from Obama's speech yesterday:

OBAMA: Over the last few days, we have seen clearly what's at stake in this election. The news from Wall Street has shaken the American people's faith in our economy. The situation with Lehman Brothers and other financial institutions is the latest in a wave of crises that have generated tremendous uncertainty about the future of our financial markets. This is a major threat to our economy and its ability to create good-paying jobs and help working Americans pay their bills, save for their future, and make their mortgage payments.
Since this turmoil began over a year ago, the housing market has collapsed. Fannie Mae and Freddie Mac had to be effectively taken over by the government. Three of America's five largest investment banks failed or have been sold off in distress. Yesterday, Wall Street suffered its worst losses since just after 9/11. We are in the most serious financial crisis in generations.

Now let's follow the dollars.

Top Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008 1) Chris Dodd $133,900 2) John Kerry $111,000 3) Barack Obama $105,849 4) Hillary Clinton $75,550

Barack is listed number 3 on the list and the dates here are from 1989 to 2008. He has only been in the Senate for 3 years. That is a lot of money in a short time. Oh, but the contradictions continue. How can you take money from a group with one hand and point your finger at them with the other?