I am old enough to remember our presidents dating back to Jimmy Carter. I agree with most people that George Bush was not a good president. As much as the left despises George Bush, I can faithfully say that I feel the same animosity toward Barack Obama.
Every damn day I read another column, or see another video clip where Obama slams the Republicans and George Bush for the problems we face today. Obama is not a leader, he is a whiner and complainer. Does anyone recall George Bush whining and complaining about his critics, or the hand he was dealt by 9/11? Does anyone recall Bill Clinton complaining about the Republican opposition after they took control of Congress? No, he worked with them to balance the budget and pass welfare reform, and we had years of prosperity.
On the other hand, Obama blames the Republicans and George Bush for our current problems. Bush has been out of office for 18 months, and the Republicans are a significant minority party in Congress. Yet, he blames them for blocking opposition.
Blame, blame, blame. This president is the worst. Unfortunately, we have at least two more years, and unless the Republicans come up with a better candidate than Mitt Romney or Sarah Palin, I fear we will be stuck with this jackass for another four more years. Hopefully, Americans will have completely come to their senses about this guy by then.
Saturday, August 21, 2010
Sunday, August 8, 2010
Why We Are Where We Are Today - Government Inefficiency and Meddling
I had a great discussion last night with a couple friends about our current economic problems. One friend is a Wall Streeter and the other is a cost accountant married to a teacher. The Wall Streeter specializes in trading debt of distressed companies, and one focus of his attention these days is the homebuilders. My other friend is a long time Democrat, but probably of the moderate variety. And just for more background, I have made a living in the real estate industry for 20 years.
The conversation turned to the housing bubble and its causes and why it will be years before it recovers. It is interesting that when you read the main street media, the blame is almost entirely focused on Wall Street. Naturally, this pisses off my Wall Street friend to the nth degree. He and I both know better.
In the 1990's under President Clinton, Glass-Steagall was repealed. This allowed the banks to get into investment banking and trading. With their inside knowledge on business due to their lending, this was thought to be huge boon to the banks, and it was.
Also, under both Clinton and Bush, home ownership was pushed hard. The government wanted more Americans to have the opportunity to own their own home. So, through Fannie Mae and Freddie Mac, lending restrictions were eased to the point of folly. I have a friend who is a residential real estate appraiser. At one time he appraised a house in a not so nice neighborhood that was under contract for $40,000. His appraisal was coming in at $20,000, so he informed the bank. The banker told him it didn't matter, because they had to make more loans in that neighborhood due to government regulation.
So, we had a government telling banks they needed to lend money to people who could never pay the money back. We had Fannie Mae and Freddie Mac backing loans of 100% financing to borrowers with low credit. Then we had Wall Street bundle these loans into mortgage backed securities that were sold and traded. We also had an extremely low interest rate environment due to the recession that began when the tech bubble burst. And voila, we have a new real estate bubble.
People began to foolishly expect 10% appreciation and more on their homes, and borrowed to the hilt. Now the market has collapsed and we have a substantial over supply of homes across the country.
The government, in its infinite wisdom, decides to try and spur demand through an $8,000 tax credit. People who could, took advantage of this, but it came nowhere near solving the problem. The problems of the real estate market were simply kicked down the road. Banks still have many under water loans on their books. The homebuilders got a huge tax break from the government at the cost of billions to taxpayers that is barely keeping them afloat.
To combat the collapse in the real estate market, the government came up with its TARP program at the end of 2008, to help the banks stay solvent. This was followed by the $800 billion+ stimulus program that the administration claims has saved 3.5 million jobs, while the unemployment rate continues to rise.
Here is why I am not a believer in government fixes. I have seen firsthand how inefficient government operates. Here in our town, the federal government has wanted to construct a new building to replace an existing building that became obsolete after the Oklahoma City bombing. I was hired to consult on the project. I worked on the project for three years and the government paid me hundreds of thousands of dollars. They hired other consultants for similar amounts and more. I was hired to help them determine the best site for the new building by determining values of various city blocks.
The local government desperately wanted the new building at a specific location where its development would help spur other economic development. The federal government officials who would occupy the building wanted nothing to do with that site because it was not near any of their favorite restaurants and other amenities. So, this political battle had been waged for six years at the cost of millions of dollars until the Feds finally did settle on that site where the local government wanted the new building.
I have to believe this kind of thing goes on all the time. Just look at the federal reaction to Katrina and the BP oil spill. Bureaucracy gets in the way and makes things worse.
The government has now created a new healthcare entitlement program at the cost of trillions after a stimulus package that has done nothing to jumpstart the economy. Yes, the economy is better than it was last year, but could it have been better? If instead we cut taxes and put off plans for a new entitlement program, business would not be scared to invest in new employees and equipment.
Government needs to get out of the way at times and let the markets take care of themselves. Unfortunately, it has not, and now we have a sluggish economy and a mountain of debt. Things are not going to get better any time soon.
The conversation turned to the housing bubble and its causes and why it will be years before it recovers. It is interesting that when you read the main street media, the blame is almost entirely focused on Wall Street. Naturally, this pisses off my Wall Street friend to the nth degree. He and I both know better.
In the 1990's under President Clinton, Glass-Steagall was repealed. This allowed the banks to get into investment banking and trading. With their inside knowledge on business due to their lending, this was thought to be huge boon to the banks, and it was.
Also, under both Clinton and Bush, home ownership was pushed hard. The government wanted more Americans to have the opportunity to own their own home. So, through Fannie Mae and Freddie Mac, lending restrictions were eased to the point of folly. I have a friend who is a residential real estate appraiser. At one time he appraised a house in a not so nice neighborhood that was under contract for $40,000. His appraisal was coming in at $20,000, so he informed the bank. The banker told him it didn't matter, because they had to make more loans in that neighborhood due to government regulation.
So, we had a government telling banks they needed to lend money to people who could never pay the money back. We had Fannie Mae and Freddie Mac backing loans of 100% financing to borrowers with low credit. Then we had Wall Street bundle these loans into mortgage backed securities that were sold and traded. We also had an extremely low interest rate environment due to the recession that began when the tech bubble burst. And voila, we have a new real estate bubble.
People began to foolishly expect 10% appreciation and more on their homes, and borrowed to the hilt. Now the market has collapsed and we have a substantial over supply of homes across the country.
The government, in its infinite wisdom, decides to try and spur demand through an $8,000 tax credit. People who could, took advantage of this, but it came nowhere near solving the problem. The problems of the real estate market were simply kicked down the road. Banks still have many under water loans on their books. The homebuilders got a huge tax break from the government at the cost of billions to taxpayers that is barely keeping them afloat.
To combat the collapse in the real estate market, the government came up with its TARP program at the end of 2008, to help the banks stay solvent. This was followed by the $800 billion+ stimulus program that the administration claims has saved 3.5 million jobs, while the unemployment rate continues to rise.
Here is why I am not a believer in government fixes. I have seen firsthand how inefficient government operates. Here in our town, the federal government has wanted to construct a new building to replace an existing building that became obsolete after the Oklahoma City bombing. I was hired to consult on the project. I worked on the project for three years and the government paid me hundreds of thousands of dollars. They hired other consultants for similar amounts and more. I was hired to help them determine the best site for the new building by determining values of various city blocks.
The local government desperately wanted the new building at a specific location where its development would help spur other economic development. The federal government officials who would occupy the building wanted nothing to do with that site because it was not near any of their favorite restaurants and other amenities. So, this political battle had been waged for six years at the cost of millions of dollars until the Feds finally did settle on that site where the local government wanted the new building.
I have to believe this kind of thing goes on all the time. Just look at the federal reaction to Katrina and the BP oil spill. Bureaucracy gets in the way and makes things worse.
The government has now created a new healthcare entitlement program at the cost of trillions after a stimulus package that has done nothing to jumpstart the economy. Yes, the economy is better than it was last year, but could it have been better? If instead we cut taxes and put off plans for a new entitlement program, business would not be scared to invest in new employees and equipment.
Government needs to get out of the way at times and let the markets take care of themselves. Unfortunately, it has not, and now we have a sluggish economy and a mountain of debt. Things are not going to get better any time soon.
Thursday, August 5, 2010
Time to Talk About Term Limits Again?
If the ethics problems of Charles Rangel and Maxine Waters don't suggest that it's time to discuss term limits again, I don't know what will. Charlie has been in Congress for 40 years and Maxine for 20 years. This has entrenched them in power. They represent districts where they will never face a Republican challenge, unless the black community finally wakes up and realizes that the Democratic party simply seeks to make them even more dependent on government.
The government gerrymandering of congressional districts has resulted in many districts on both sides of the political spectrum where the extremists from both parties will never be challenged. This is why we have such partisan politics today. Think Nancy Pelosi or Barney Frank could ever be challenged by a Republican? The same can be said for many Republicans in southern congressional districts.
As a result, it is virtually impossible to get rid of career politicians. The end result is that the longer they stay, the more corrupt they become. Rangel represents the worst of him. Yet, even though he is fighting is battle to the end, he was already offered only a reprimand!
Where is the justice in that? The man cheated on his taxes. He was the chairman of the House Ways and Means committee, the very committee that determines much of how our tax dollars are spent. That is ILLEGAL behavior. Yet, where is the IRS in all of this? Have they filed suit against Rangel? Last I saw, Wesley Snipes lost his latest appeal and is heading off to jail for his tax indiscretions. Could this happen to Rangel? Doesn't look like it. Instead, Obama suggests he should retire with dignity! Huh?! The man is a crook and he should be allowed to retire with dignity?
What planet are these politicians living on!?
The government gerrymandering of congressional districts has resulted in many districts on both sides of the political spectrum where the extremists from both parties will never be challenged. This is why we have such partisan politics today. Think Nancy Pelosi or Barney Frank could ever be challenged by a Republican? The same can be said for many Republicans in southern congressional districts.
As a result, it is virtually impossible to get rid of career politicians. The end result is that the longer they stay, the more corrupt they become. Rangel represents the worst of him. Yet, even though he is fighting is battle to the end, he was already offered only a reprimand!
Where is the justice in that? The man cheated on his taxes. He was the chairman of the House Ways and Means committee, the very committee that determines much of how our tax dollars are spent. That is ILLEGAL behavior. Yet, where is the IRS in all of this? Have they filed suit against Rangel? Last I saw, Wesley Snipes lost his latest appeal and is heading off to jail for his tax indiscretions. Could this happen to Rangel? Doesn't look like it. Instead, Obama suggests he should retire with dignity! Huh?! The man is a crook and he should be allowed to retire with dignity?
What planet are these politicians living on!?
Pelosi wants to Spend Another $26 Billion
Just a couple weeks after Congress voted to spend $34 billion to extend jobless benefits, Nancy Pelosi is bringing the House back from its summer recess to vote on another $26 billion bill to send aid to the states who face budget crises. This supposedly will help save 140,000 teacher jobs and other government jobs.
So, what's another $26 billion? $34 billion here, $26 billion there, pretty soon we'll be talking about real money!
And Obama and the Democrats still find the nerve to trash George W. Bush for running up the deficit! Yet, we will be having trillion dollar deficits as far as the eyes can see, because now that the Democrats and Obama have raised the bar on spending, they surely don't want to go back to pre-recession levels.
This is how Washington grabs power. In an emergency, they raise the spending, which makes the public more dependent on government, and then they raise taxes. There is no effort whatsoever to cut spending once the emergency has passed.
I read that 45% of the population paid no federal income taxes in 2009. 45%! Yet, the Democrats want to let the Bush tax cuts expire on January 1. They may let the lower bracket rates stay the same, but raise the rates at the high end. They will combine this with an increase in capital gains tax rates and revive the estate tax. Their excuse is that this will only effect about 2% of the population. Well, that 2% is who creates the jobs! Additionally, I want to be part of that 2%!
Yet, since this will result in an economic headwind, how will I make enough income to get into that top 2%? I will keep striving of course, but Washington continues to make it more and more difficult for all of us. Until we get some fresh new leadership down there, such as a JFK or a Reagan, this economy will be a dud for years to come.
So, what's another $26 billion? $34 billion here, $26 billion there, pretty soon we'll be talking about real money!
And Obama and the Democrats still find the nerve to trash George W. Bush for running up the deficit! Yet, we will be having trillion dollar deficits as far as the eyes can see, because now that the Democrats and Obama have raised the bar on spending, they surely don't want to go back to pre-recession levels.
This is how Washington grabs power. In an emergency, they raise the spending, which makes the public more dependent on government, and then they raise taxes. There is no effort whatsoever to cut spending once the emergency has passed.
I read that 45% of the population paid no federal income taxes in 2009. 45%! Yet, the Democrats want to let the Bush tax cuts expire on January 1. They may let the lower bracket rates stay the same, but raise the rates at the high end. They will combine this with an increase in capital gains tax rates and revive the estate tax. Their excuse is that this will only effect about 2% of the population. Well, that 2% is who creates the jobs! Additionally, I want to be part of that 2%!
Yet, since this will result in an economic headwind, how will I make enough income to get into that top 2%? I will keep striving of course, but Washington continues to make it more and more difficult for all of us. Until we get some fresh new leadership down there, such as a JFK or a Reagan, this economy will be a dud for years to come.
Lanny Davis commentary on Obama
Lanny Davis wrote a nice little piece today, asking President Obama to bring us together, as he had pledged during his campaign. Davis was approached by a conservative Republican last year, Ronald DeMoss, to set up a civility commission. They sent out a petition to all members of Congress and the governors of all 50 states, asking for a vow to engage in civil debate. They got one signature. Davis is now asking Obama to sign it.
Trouble is, Obama is the most uncivil president we've had in my memory. I heard that Nixon was pretty bad. Since then, it is clear to me that Obama is the worst in this category. Every day he slams the Republicans for something, and he and the Democrats continue to take pot shots at George Bush.
It was clear right after the inaugural address that Obama never had any intention to work with Republicans on any of his agenda...it was simply too far to the left. He had enough power with huge majorities in Congress to ram through what he wanted, and that's what he has done, all the while uniting the opposition against him and calling them obstructionists.
Obama is all talk when it comes to having dialogue with the opposition. He has never once embraced a single Republican idea to be included in any of the legislation he has signed.
I believe this president is far too arrogant to ever try and bring people together. He has lost all of his political goodwill and expended any political capital he may have had with Republicans who were willing to work with him due to the way he rammed through the stimulus and Obamacare.
I suspect that if the Republicans gain control of the House, things will be worse. The second two years of this administration have the potential to be dreadful. I don't see him moving to the center like Clinton because he is too much in bed with the far left of his party.
Trouble is, Obama is the most uncivil president we've had in my memory. I heard that Nixon was pretty bad. Since then, it is clear to me that Obama is the worst in this category. Every day he slams the Republicans for something, and he and the Democrats continue to take pot shots at George Bush.
It was clear right after the inaugural address that Obama never had any intention to work with Republicans on any of his agenda...it was simply too far to the left. He had enough power with huge majorities in Congress to ram through what he wanted, and that's what he has done, all the while uniting the opposition against him and calling them obstructionists.
Obama is all talk when it comes to having dialogue with the opposition. He has never once embraced a single Republican idea to be included in any of the legislation he has signed.
I believe this president is far too arrogant to ever try and bring people together. He has lost all of his political goodwill and expended any political capital he may have had with Republicans who were willing to work with him due to the way he rammed through the stimulus and Obamacare.
I suspect that if the Republicans gain control of the House, things will be worse. The second two years of this administration have the potential to be dreadful. I don't see him moving to the center like Clinton because he is too much in bed with the far left of his party.
Wednesday, August 4, 2010
Bad Day For Obama and Democrats
Last night, Missouri voters overwhelmingly voted to repeal the health insurance mandate signed into law earlier this year by Congress. 71% of the voters cast their ballot in favor of the measure to repeal the mandate. If that isn't a slap in the face of Democrats, and an indication of what they face at the polls in November, I don't know what is.
Oh wait, I do! A new poll conducated by USA Today/Gallup shows Obama with a 41% approval rating...that is the absolute lowest level of any poll out yet. Republicans also now hold the edge in the generic ballot box measure by an average of 6 points across the polls that Realclearpolitics.com follows.
There is still a lot of time to go, and I continue to suspect that things will tighten up a bit by November, as I have zero faith in all but a few Republicans. But, at these levels, Democrats are in huge trouble to not only lose control of the House, but to there is potential for the current numbers to be absolutely flip flopped. Can you imagine a Congress where there are 255 Republicans in the house against only 180 Democrats? While not probable, it is possible. That possibility should send a huge wave of panic through the White House.
It is clear they are already panicking. Every day, Obama take the opportunity to slam the Republicans. Now, the Democrats indicate they want to tie the current Republicans to the policies of George W. Bush. That will now make the Democrats look like they are out of ideas, since their ideas have clearly failed in the eyes of the people.
Oh wait, I do! A new poll conducated by USA Today/Gallup shows Obama with a 41% approval rating...that is the absolute lowest level of any poll out yet. Republicans also now hold the edge in the generic ballot box measure by an average of 6 points across the polls that Realclearpolitics.com follows.
There is still a lot of time to go, and I continue to suspect that things will tighten up a bit by November, as I have zero faith in all but a few Republicans. But, at these levels, Democrats are in huge trouble to not only lose control of the House, but to there is potential for the current numbers to be absolutely flip flopped. Can you imagine a Congress where there are 255 Republicans in the house against only 180 Democrats? While not probable, it is possible. That possibility should send a huge wave of panic through the White House.
It is clear they are already panicking. Every day, Obama take the opportunity to slam the Republicans. Now, the Democrats indicate they want to tie the current Republicans to the policies of George W. Bush. That will now make the Democrats look like they are out of ideas, since their ideas have clearly failed in the eyes of the people.
Tuesday, August 3, 2010
The Stimulus Revisited
You can't make this stuff up. In a report published by Senators Coburn and McCain, $194,000 of the stimulus passed last year to boost the economy went to a grant to two Texas universities to study how the stimulus is received by the public.
A Maryland consulting firm received over $360,000 to report National Institute of Health stimulus spending efforts and their benefits.
$498,000 went to the American Legacy Foundation, which provided Blackberry smartphones to low income smokers so they can call a hotline to deal with their addiction. Apparently, two jobs were created out of that. Doing what?
A million dollars were sent to a school in Kansas to provide students with Ipod Touch devices that were loaded with applications to help motivate students to learn.
Ummmm...this is what happens when you give a blank check to Nancy Pelosi and her cronies and ask her to go stimulate the economy. Instead, she treated the money like a crack addict and simply fueled her own addiction for funding worthless projects with taxpayer money. And what do we have to show for it? The weakest recovery after a recession ever and a trillion dollar annual budget deficit for as far as the eye can see.
A Maryland consulting firm received over $360,000 to report National Institute of Health stimulus spending efforts and their benefits.
$498,000 went to the American Legacy Foundation, which provided Blackberry smartphones to low income smokers so they can call a hotline to deal with their addiction. Apparently, two jobs were created out of that. Doing what?
A million dollars were sent to a school in Kansas to provide students with Ipod Touch devices that were loaded with applications to help motivate students to learn.
Ummmm...this is what happens when you give a blank check to Nancy Pelosi and her cronies and ask her to go stimulate the economy. Instead, she treated the money like a crack addict and simply fueled her own addiction for funding worthless projects with taxpayer money. And what do we have to show for it? The weakest recovery after a recession ever and a trillion dollar annual budget deficit for as far as the eye can see.
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