Pelosi's Follies

Let's be clear to all reading this on where you should concentrate your own research efforts in regard to the bailout bill. Both parties came together to craft a (frankly poor - my opinion) bill that raids taxpayers pockets. But many were ready to hold their nose and vote to help the markets.

Several things then happened to change the game.

1. Pelosi majority whip didn't whip (major warning sign to Republicans)
2. Pelosi then took the House floor and fixed blame on the Republicans. We have discussed this topic on NJ Tax Revolution and it is clear that at the least this problem was caused by both parties. At worst it should tilt in the Democrats favor.
3. Republicans can count votes. Pelosi gave permission to her caucus to vote their conscience while expecting Republicans to bail her caucus out.
4. Republicans caught wind and voted their conscience too.
5. The measure was defeated.

That's what happened. No more. No less.

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Bailout is not the only option!

There was buzz the other day about a large number of economists that sent a letter to the congress suggesting that there was a better way to handle the mortgage crisis. Now today, Jeffrey Miron a Senior Lecturer of Economics at Harvard explains what the content of that communication included (from CNN):

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This represents well understood fact except for Democrats in the House and Senate (and much of the media as well). This statement really brings the issue home:

The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not attempt to fix bad government with more government.

So what to do?

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.

In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy's allocation of its financial resources.

A massive transfer of wealth from taxpayers to Wall Street isn't the only answer. And congress should do their job and investigate every potential option with an eye toward the bill paying taxpayer first and Wall Street executives second.

Read the entire article here.

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For once, our House members attempt to vote for us

There is nothing more infuriating in this state than the party line voting that occurs in the House and Senate. For example, our Senators Menendez and Lautengerg ALWAYS go along with Harry Reid and the Democraticv leadership of the Senate regardless of the harm to NJ. But for once, the members of the House used their brains and made a judgement call. From this article in Newaday:

The majority of New Jersey's U.S. House delegation joined their colleagues in voting down a $700 billion rescue plan for the nation's financial system on Monday, with some saying it didn't help regular people while others complained it wasted taxpayer dollars.

Stocks were falling on Wall Street even before the House voted 228-205, with New Jersey's delegation voting 7-6 against the bill.

Party lines broke down as Democrats and Republicans alike voted against the bailout, even as their party leadership and President Bush warned the economy could plummet into recession without it. The Garden State congressmen voting against the bill included four Republicans and three Democrats.

I don't care if any of these politicians voted for or against right now. I am impressed with all for attempting to do what they thought was right. Bravo to all on both side of this issue. Bravo!

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Palin hubby's DUI. What about Obama and cocaine?

The Palins have been subjected to a tremendous amount of negative piling on by the media. I think this is probably because the mainstream media has never bothered to ask a single difficult question of Barack Obama. For example, Obama said in his book "Dreams from my father":

"Pot had helped, and booze; maybe a little blow when you could afford it. Not smack, though."

I suppose the political experts saw his book as an "inoculation" against future attacks. But I don't think so if the candidate was a Republican. For example, was is just powdered cocaine or crack? Did he ever deal drugs in addition to using them? The amazing thing is that these questions have never been asked, much less answered.

Yes, Sarah Palin's husbands DUI is relevent. Hmmm. A candidates spouse's misdemeanor DUI is relevent but a candidate for President of the United States felony is not. What does this say about the NY Times, Washington Post and NBC News? Nothing good.

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Obama speech police strikes again!

Barack Obama and his surrogates in Missouri have use the fact that some Democratic prosecutors are Obama supporters to threaten anyone who produces a campaign commercial that doesnt pass their truth test. That's funny since Obama just produced a Spanish language add filled with outright falsehoods. This is the second major time that the Obama team has attempted to silence critics.

Now in this response from the Governor of Missouri:

Gov. Matt Blunt today issued the following statement on news reports that have exposed plans by U.S. Senator Barack Obama to use Missouri law enforcement to threaten and intimidate his critics.


“St. Louis County Circuit Attorney Bob McCulloch, St. Louis City Circuit Attorney Jennifer Joyce, Jefferson County Sheriff Glenn Boyer, and Obama and the leader of his Missouri campaign Senator Claire McCaskill have attached the stench of police state tactics to the Obama-Biden campaign.

Read the entire message. It is worth your time.

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Democrats like root causes - view this video

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Nancy Pelosi can shut off the lights/cameras of congress on drilling but can't pass a bailout bill without Republican help?

A very interesting question. Why is it that the Republicans cannot even get an amendment to a bill to the floor when Czar Nancy wields the gavel are now awash with so much power in the House that a bailout bill can't go through? Doesn't anyone remember Nancy Pelosi shutting off the cameras and lights while the Republicans kept debating energy policy when the Democrats went on vacation?

But now, all of a sudden, she can't get a bill through without a small band of conservative legislators in the House? Oh I get it. It is because there were only about 4 votes from Republicans and the bill would have gone through as a piece of partisan Democrat legislation. Apparently, the Democrats do have some level of shame.

For you see, this bill has been crafted by Chris Dodd and Barney Frank. Remember these two. Chris Dodd got more money than anyone from Fannie and Freddie to look the other way while they continued to write bad loans. Chris Dodd also got a sweetheart deal from Countrywide as a "friend of Angelo". In most states, Chris Dodd would be in jail. But not in the senate. Oh, and don't forget Barney Frank. These are the people who are leading the bailout:



And even Nancy Pelosi knows that the media will not protect her if Nancy along with her Democrat colleagues were major contributors to the problem, failed in their oversight responsibility and enacted a flawed bailout with no opposition support. Even Nancy isn't that stupid apparently. Harry Reid on the other hand...

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Corzine and pay-to-play - does he inclued NJEA and other unions?

Governor Corzine wants to eliminate pay-to-play. And we believe him. From Bloomberg:

New Jersey Governor Jon Corzine proposed an overhaul of ethics guidelines covering local and state politicians, a package he said would end ``pay-to-play'' politics at all levels of government.

Corzine signed executive orders banning political campaign contributions by state-hired developers and their consultants and restricting donors from getting government contracts. He also called for several ethics measures requiring legislation, including lowering the annual limit on contributions to political committees.

``We are finishing what we've started, to end the insider deals, influence peddling and self-interest of old politics,'' Corzine, a first-term Democrat, said today in Trenton.

In keeping with our faith in Corzine, I wonder if he is including not just developers and infrastructure vendors, what about the NJEA? They are the largest contributor to all politicians in NJ per pay to play. And if you don't think they get their money's worth, check the budget.

Assemblywoman Linda Greenstein and Assemblyman Wayne DeAngelo, both Democrats, said today they would sponsor legislation to enact the ethics plan.

``This is the opportunity New Jerseyans have long been waiting for,'' Greenstein, of Monroe, said in a statement. ``The sinister mix of money and politics will be tackled once and for all, and it will be done so in a sweeping and historic way.''

This is kind of wierd. Apparently, Wayne DeAngelo doesn't do anything without Greenstien. Is she his muse or his babysitter? I also wonder if Mr DeAngelo intends to include his electrical workers union in the pay to play law. I somehow don't think so.

Read the entire article here.

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Lautenberg is 7th-Richest Member of Congress

As noted here, he's worth over 55 million dollars. Here are the people who beat him out:

1. Sen. John Kerry (D-Mass.)
$230.98 million
2. Rep. Jane Harman (D-Calif.)
$225.96 million
3. Rep. Darrell Issa (R-Calif.)
$160.62 million
4. Sen. Jay Rockefeller (D-W.Va.)
$80.40 million
5. Rep. Robin Hayes (R-N.C.)
$78.96 million
6. Rep. Vern Buchanan (R-Fla.)
$65.49 million

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Freddie, Fannie and the Sub-Prime Crisis-Obamonopoly

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Soak the Rich, Take the Risk

This article shows another reason that we shouldn't soak the rich:

The first person to testify, Rutgers economist James Hughes, confirmed the grim possibilities facing the Garden State. "A sharp economic rebound is not in the cards," Hughes said. "We still have a lot of pain to go through."

Forty percent of New Jersey's income tax is paid by the wealthiest 1 percent of residents, Hughes said, and under the "worst-case scenario" the state could see its income-tax collection drop by 13 percent or so in the wake of Wall Street cutbacks.

So the rich people who live in New Jersey and work on Wall Street are paying for the nanny state. The people become dependent on the nanny state. But when there's an economic shock concentrated on Wall Street (not an unheard of event, right, guys?) the rich people lose their money, stop paying taxes, and make it impossible for the nanny state to support the people who became dependent on it during good times.

"Progressive" overtaxation of the rich sucks for everyone.

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When Businesses are Failing... Raise the Minimum Wage?

Governor Corzine, I don't get it. According to the Courier Post Online, your reaction to the current financial crisis includes an increase of the minimum wage.

Among the proposals discussed:

Forming a syndicate of small banks and lenders to extend credit to small and mid-sized businesses and help homeowners fend off foreclosure.

Jump-starting infrastructure projects such as schools.

Luring businesses by touting New Jersey's real estate assets.

Raising the minimum wage and extending unemployment benefits.

Partnering with utility companies to create jobs in energy conservation.

I thought that when the economy is bad, we want to make it easier for businesses to survive. I can see the appeal of extending unemployment benefits, but giving people more money for the same work? Really? How exactly will that help?

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The Evil Republicans and the Wall Street Meltdown

If you're not reading Investor's Business Daily's editorial page these days, you're really missing out. They've had a series of have a great articles that set the record straight on the Wall Street Meltdown. Here's an important one that shows some interesting facts.

For instance: This crisis was expected. By whom?

Nancy Pelosi? Harry Reid?

Nope. How about John McCain?

As for presidential contender John McCain, just two years after Bush's plan, McCain also called for badly needed reforms to prevent a crisis like the one we're now in.

"If Congress does not act," McCain said in 2005, "American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole."

But even before that, back in 2003, we see another misunderestimated Republican politician trying to do something about the problems with Freddie and Fannie risk:

Here's the lead of a New York Times story on Sept. 11, 2003: "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."

Bush tried to act. Who stopped him? Congress, especially Democrats with their deep financial and patronage ties to the two government-sponsored enterprises, Fannie and Freddie.

"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Rep. Barney Frank, then ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

Nice. Of course, Rep Frank says that he's a leading voice for reform of Freddie and Fannie. Sam Dealey makes mincemeat of that argument over at US News and World Report.

There's more. A lot more. Go read the whole thing.

Meanwhile, if you want to behave like Wall Street, you can take your undervalued assets and ask the government to bail you out of them, too. You can name your own price, too. It doesn't matter what you could sell them for. In fact, the only way to know that they're undervalued is if nobody will pay you what you think they're worth. So name your price, and let Uncle Sam take them off your hands.

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USA Wins Ryder Cup!

For the first time in a long time, the US team won the Ryder Cup golf matches between the US and Europe. And for the first time in a long time, our team seemed to be a bunch of guys who happened to play golf, had a ton of pride and wanted it more badly than the other guys.

No complaints over the purse money. No complaints over airplanes and travelling with the team. Just a bunch of guys who desperately wanted to win.

The last time I attended the Ryder Cup it was at The Belfry in England. On the final day at that event, Colin Mongomery went out in the first match and made a statement. Fast forward to this year. Anthony Kim did the same against one of the best players in the world(and arguably one of the best Ryder Cup players ever), Sergio Garcia. This young played not only beat Sergio but soundly finished his match much the same way that Monty did to lead his team at the Belfry. That first point means a lot when the other guys want to stage a comeback.

There are so many stories to this years event. Paul Azinger who was an awesome captain with the right approach. The Kentucky players JB Holmes and Perry who played out of their heads in front of the home crown. The adopted Kentucky player Boo Weekely who is frankly over the top awesome. And I cannot say enough about the play of Jim Furyk. This man stepped up and lead the team to an early win.

Congratulations USA! You have made us all proud!

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Obama needs to remind Corzine that panels are the oldest Washington stunt!

From Newsday.com:

Gov. Jon Corzine says he'll convene a special panel to assess ongoing uncertainty in the national economy and its impact on New Jersey.

The economic round-table will occur Monday.

Corzine said he'll assemble business, labor and economic representatives from throughout the state. The goal is to develop an immediate action plan.

But I thought that this was the oldest Washington stunt in the book? Apparently, Obama's buddy and economic advisor Jon Corzine didn't get the memo.

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Menendez economic plan - more of the same tripe

Robert Menendex has put his hat in the ring for amateur economist today. He has a three part plan to fix our economic problems. From the AP via amNewYork:

Menendez said three steps can help right away:

_ Help prevent foreclosures by enabling bankruptcy judges to modify loan terms so homeowners' primary residences are protected.

_ Create an emergency loan program to help jump-start small businesses having trouble finding credit.

_ Offer a second economic stimulus package to create jobs and prevent cuts in essential services by funding infrastructure projects and some form of unemployment insurance extension.

Let's analyse the Senator's plan. His first pillar is to extend foreclosures on bad loans. Does he not get the the toxic balance sheets caused by these loans is what is dragging down many firms? Did they not teach him any basics when he joined the Senate Banking Committee? Oh, that's right. He learned how to get money from the firms that caused this problem-Fannie and Freddie ($31,250). These bad loans need to be purged from the system. I am sorry that some people will be hurt and if he wants to help them, he should provide transition funding to find a rental place to live.

His emergency loan program makes a bit more sense if money is completely dried up for small business. I am not sure that is the case. I have seen no evidence that money was not available for sound business loans. But at least this is a good example of anticipatory planning and worthy.

His third example is to stimulate the economy through make-work jobs and government handouts. It reminds me of a recent road project near my house. The State of New Jersey and the Federal government teamed up to spend close to 21.5 million dollars to create a road that makes life slightly easiers for truckers at a rest stop near the turnpike and created a traffic jam by adding a jug handle. The project was frankly unneeded and unneccesary.

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Is it time for Chris Dodd to resign?

We have heard all about Freddie Mae and Freddia Mac. We have heard all about how there is so much greed on Wall Street that clearly we need more regulation. Senator Barack Obama has on multiple occasions in the past few days bemoaned the lack of regulation by the Bush Administration in regard to regulating Wall Street.

However, we theoretically do have oversight on banking and on lending. It is called the US Senate Banking Committee which Senator Dodd is the Chairman. He is also the number one recipient of lobbying funds by the organizations that he was supposed to oversee. But wait, he is not satisfied to just stand on the sidelines now. He expressed his opinion today (Reuters):

U.S. Senate Banking Committee Chairman Christopher Dodd on Friday warned the Bush administration that it must work with Congress this weekend on details of a Wall Street bailout package that has not been fully unveiled to lawmakers.

"None of us have any idea what the details are," said Dodd, adding that the Treasury Department and Federal Reserve should not present a package next week as a "fait accompli."

Why Mr Dodd? So you can make sure your currupt backside is covered? I don't think so. Resign now to reduce the damage to your party. You are now a liability and if you don't resign soon, Senator Barack Obama will have to explain why he is right behind you in lobbyist contributions and an active participant in this massive economic failure.

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Biden - Empty your pockets to be a patriot!

Joe Biden once again opened his mouth and put his entire foot into it. From the Associated Press:

"We want to take money and put it back in the pocket of middle-class people," Biden said in an interview on ABC's "Good Morning America."

Noting that wealthier Americans would indeed pay more, Biden said: "It's time to be patriotic ... time to jump in, time to be part of the deal, time to help get America out of the rut."

Pay close attention to those words. He wants to "take" money from one group of people and put it into the pocket of another group of people. That sounds just like the former Soviet Union. And this would just be sad if real facts on the ground don't tell the real tale.

The real issue is that in this country, 53 percent of taxpayers do not pay any taxes at all. The top 20 percent of wage earners already pay more than 2/3 of ALL taxes. The reward for people who work hard to earn money for their families and achieve some level of success according to Biden-Obama? Give it to the government so they can redistribute it to others.

That isn't am economic plan. That is socialism pure and simple. Patriotism? I don't think so Comrade.

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Obama admits to treason!

While I read the Amir Tahiri report in the New York Post yesterday, I must admit that I frankly could not believe that it was 100% true. This despite the fact that I love Tahiri's work and always read his articles. But Powerline documented the issue far better than I could:

Amir Taheri lays out Barack Obama's sorry record of double-dealing on Iraq:

WHILE campaigning in public for a speedy withdrawal of US troops from Iraq, Sen. Barack Obama has tried in private to persuade Iraqi leaders to delay an agreement on a draw-down of the American military presence.
According to Iraqi Foreign Minister Hoshyar Zebari, Obama made his demand for delay a key theme of his discussions with Iraqi leaders in Baghdad in July.

"He asked why we were not prepared to delay an agreement until after the US elections and the formation of a new administration in Washington," Zebari said in an interview.


This is shocking, although, coming from Obama, not surprising. It's not just that he has tried, in private, to achieve the exact opposite result from the one he has advocated in public. Worse, Obama has in effect tried to conduct his own foreign policy as a President-in-waiting, thereby undermining the actual foreign policy of the United States.

Okay. Maybe Tahiri, Powerline and I are wrong on what Obama meant? How about the statement from his campaign.

Obama's national security spokeswoman Wendy Morigi said Taheri's article bore "as much resemblance to the truth as a McCain campaign commercial."
In fact, Obama had told the Iraqis that they should not rush through a "Strategic Framework Agreement" governing the future of US forces until after President George W. Bush leaves office, she said.

(Powerline) Which I guess must be different from what Taheri said. Somehow.

Read the entire Powerline post here.

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Pelosi Orders Wall Street Probe - here is my list of witnesses.

From Politico:

House Speaker Nancy Pelosi has ordered a broad, swift investigation of Wall Street and will demand testimony from Bush administration officials and captains of finance, congressional officials said

Let's help out with the witness list:

1. Franklin Raines
2. Jamie Gorelick
3. Chris Dodd
4. Barack Obama
5. Joe Biden
6. Andrew Coumo
7. William Jefferson Clinton
8. Hillary Clinton
9. John Kerry
10. Jim Johnson

And here is what you should ask. For all the former Democrat appointees from the Clinton administration, ask them why they lined their pockets while creating an environment that destroyed the mortgage industry in the United States by purposely breaking down the controls for mortgage lending to non-qualified buyers. And ask the politicians on this list what thhey received for the tens of thousands of donations they received from their corrupt friends.

After you are done with that, sure, go to Wall Street. But I suspect you won't have to or want to.

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NJ spending is fixed by courts? So fix the courts.

In this article in the CourierPostOnline, Sharon Schulman discusses the budget options available to New Jersey legislators. Her point is that there are not too many options available to cut:

There is no magic bullet that allows a governor or legislature to give us property-tax relief without creating pain elsewhere. They are constrained by the nearly 75 percent of the state budget that is fixed and cannot be touched. So in a $30 billion budget, $21.5 billion is fixed and cannot be cut. The idea of cutting the state budget 10 percent really only means cutting 10 percent of $8.5 billion -- not from $30 billion. A brief look at the 75 percent of the state budget that is fixed shows us that 60 percent is mandated programs and results of court decisions. They include:

Medicaid

State labor contracts, including contractual commitments to provide health care and other benefits

Court-supervised child welfare reform

Court-ordered spending in Abbott districts

Debt service payments

Great points all. So here we go with suggestions.

1. Our supreme court in New Jersey is frankly a political patronage mill. These people are not exceptional jurists. They are partisan appointees. So what to do?

-Fight the Abbott ruling and have the legislature refuse to follow the courts. New York did and and was successful in getting the payments down and under control.

2. Medicaid rules do not specify all of what should be covered and by what amount. Re-evaluate the New Jersey exposure and cut it to the median of the 50 states expenditure per person.

3. Revisit state labor contracts. Situations change and with a state that is closing in on bankruptcy, everything should be on the table. If the unions won't meet halfway, maybe the citizens will see that only those of us in the private sector are expected to take a hit in bad times. And the result of that will be a taxpayer revolt.

4. Stop borrowing. While the current administration bemoans debt service, they decided to borrow another 3.9 BILLION dollars. Stop it.

These changes would immediatelry have an impact on the budget and the care and feeding of corrupt patronage feeder systems in New Jersey. If EVERYTHING is on the table, then changes can happen.

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Pelosi as usual takes no responsibility!

Despite mounds of evidence that the Democrats created the environment that created the mortgage crisis, actively fed and watered it with their corrupt friends and then personally benefitted from their lack of oversight a wink and a nod and some campaign contributions, their leaders refuse to take any responsibility.

From TheHIll:

House Speaker Nancy Pelosi, when asked Tuesday whether Democrats bear some of the responsibility regarding the current crisis on Wall Street, had a one-word answer: “No.”

Pelosi (D-Calif.) ripped President Bush’s “mismanagement” of the economy and a lack of regulation that led to the current situation.

“I think the American people have had it with this situation where the middle-income people in our country are not protected from the ramifications of the risk-taking and the greed of these financial institutions,” Pelosi told MSNBC.

You are right Nancy. We are tired of your blaming the mortgage companies alone for a situation that you bought and paid for. You know the greed I recognized from this situation? Franklin Raines (Clinton White House Budget director and Obama consultant) received 100 million dollars in greed money before he got caught. How about Democratic operative Jamie Gorelick who received 25 million FOR HER LACK OF OVERSIGHT!

Nancy Pelosi is a partisan hack who is in way over her head. She has presided over the most unpopular congress in the history of the United States. She has accomplished nothing and blames everyone else for her failures. She is nothing more or less than an empty suit and our country is worse for it.

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Corzine Worried - State Finances in Trouble - Duh!

From today's Trentonian. apprently Jon Corzine is finally realizing that the state is in poor fiscal shape:

"I'm worried about the state budget, the state economy in the context of the very dramatic restructuring that is taking place on Wall Street," Corzine said Monday morning during an appearance in Ewing Township. "The northern half of the state, there are many, many people who are involved with that industry. That's one of the reasons you have high levels of income in the state."

This man along with his Democrat counterparts have continued to spend like drunken sailors on shore leave for three years. Since the Democrats took over starting with Governor "I am turning gay so I don't get indicted for corruption" McGreevey, the state has seen a continual downturn in jobs(except government and patronage jobs)ability to balance the budget and a massive increase in the local tax burden through property taxes. That trend has continued unabated during Corzine's tenure.

The party in power has always based their profligate spending on the fact that New Jersey wage earners will continue to make money in New York and bring it back. Well guess what? The party is over. Wall Street is in serious trouble. Corzine is wondering about Bank of American buying Merrill Lynch? To all Merrill employees - congratulations! North Carolina here you come!

I guess all that money this legislature just threw at the corrupt school construction corporation is looking like a great idea right now. One thing that is clear, after three years of Corzine, I now know why these firms are failing. Bear Stearns, Lehman, Merrill-their balance sheets look a lot like New Jersey's budgets.

Read the entire article here.

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Lehman and the mortgage crisis-Obama points finger...at himself.

We have all heard Barack Obama tell the world that he is a new kind of politician who "doesn't accept special interest money". That claim has always been dubious to me as fundraising statistics clearly show this to be untrue. But I figured that maybe he doesn't include unions and other organized labor donors in his definition of "special". But that apparently isn't the entire story. This morning, Barack Obama said this(from the AP):

Democratic presidential nominee Barack Obama said Monday the upheaval on Wall Street was "the most serious financial crisis since the Great Depression" and blamed it on policies that he said Republican rival John McCain supports.

"This country can't afford another four years of this failed philosophy," Obama said after the shock-wave announcements that financial giant Lehman Brothers was filing for Chapter 11 bankruptcy while titan Merrill Lynch was being bought by Bank of America for about $50 billion.

So, it's greedy CEO's, John McCain and Republicans that are the problem? Maybe not as this report from the Heritage Foundation makes perfectly clear:

In what some observers are calling a reshaping of Wall Street, two of the world’s largest investment banks, Merrill Lynch and Lehman Brothers, are set to disappear. Lehman has announced it will file for Chapter 11 bankruptcy protection, and Merrill Lynch was bought by Bank of America. For all the complicated financial instruments and relationships involved in the current financial turmoil, the underlying cause is still relatively simple: the bursting of the housing bubble.

Ok. Step one is for Mr Obama to understand that the mortgage crisis caused this problem. But what drove the mortgage crisis?

When President Bill Clinton took office, Fannie and Freddie were viewed as “key” to Clinton’s plans to expand home ownership. The Washington Post reports: “The result was a period of unrestrained growth for the companies. … The companies increasingly were seen as the engine of the housing boom.” As the companies grew, conservatives repeatedly warned that their size posed a systemic risk to the financial system. As Sarah Palin put it, thanks to the implicit federal guarantee of their debt, Fannie and Freddie had become too big and too expensive to the taxpayers.

So, this clearly had double benefits for the Democrats. It drove economic expansion and allowed politicians to say more people owned homes (whether or not they could afford them is a different story). But how did this problem keep brewing for so long?

But Fannie and Freddie pushed back hard, turning to friends on the left for protection. Former Walter Mondale and Barack Obama campaign adviser James Johnson led a fierce lobbying campaign to fight reform of Freddie and Fannie. Clinton administration OMB director Franklin Raines told investors when he was Fannie Mae CEO in 1999: “We manage our political risk with the same intensity that we manage our credit and interest rate risks.” Fannie and Freddie’s lobbying power over the left continues to be strong to this day. According to the Center for Responsive Politics, the top three recipients of campaign donations from Freddie and Fannie’s PACs and employees are all Democrats. From 1989 through today, Sen. Chris Dodd received $165,400, Barack Obama $126,349, and John Kerry $111,000. The Washington Post concludes: “Blessed with the advantages of a government agency and a private company at the same time, Fannie Mae and Freddie Mac used their windfall profits to co-opt the politicians who were supposed to control them.”

Barack Obama should shut up for two reasons and avoid sticking his foot into his mouth on this topic. The first reason is that he and his fellow Democrats have their hands deep in this mess. As a matter of fact, to date the one person who has had to accept government settlement terms to avoid being convicted of defrauding investors is Franklin Raines (Clinton's former White House Budget Director). The second reason Obama should refrain is that to keep talking is to show what a complete hypocrite he is on the special interest issue. It took Chris Dodd 20 years to get his share of the loot. Obama almost caught up in three. It is Obama himself whose hands are not just dirty, they are filthy. McCain for the record received less than 1/6th the amount Obama did from this quasi-government mortgage and lobbying entity.

Again, who is at fault here?

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Federal Workers can make tax laws but won't pay!

From foxnews.com:

The Internal Revenue Service is trying to collect billions of dollars in late taxes from nearly half a million federal employees.

Documents obtained by WTOP radio through the Freedom of Information Act show the federal employees and retirees did not pay more than $3.5 billion in taxes owed last year.

Just like with Charlie Rangel and his lack of tax responsibility while reaching into others pockets, this is outrageous. But the article isn't finished:

The Executive Office of the President, which includes the White House, has 58 employees who did not pay more than $319,000. More than 1,000 Capitol Hill workers are on the list.

So 58 people in the White House don't bother to pay taxes. That's bad enough. But 1,000 people who work on the Hill? Are you kidding me? I wonder how many normal citizens are afforded the same courtesy. Frankly, the IRS should release exactly who these people work for and their role in the setting and execution of tax policy decisions.

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NJ's Do Nothing Legislature Returns

From this article in NJ.com:

The summer silence at the Statehouse ends Monday when the Legislature returns from a 12-week break. Leaders hope to spend the rest of the year fine-tuning a new housing law, tightening ethical standards and passing long-delayed reforms of the government's power to seize property through eminent domain.

Senate President Richard Codey (D-Essex) said lawmakers also will hold hearings aimed at combating underage binge drinking "so we can save lives on our college campuses" and cracking down on diploma mills.

This is so indicative of the useless legislature we have in this state. Businesses are leaving, people are being priced out, local municipalities are running out of money because Trenton has taken it all and what do they want to work on? Free housing, fake ethical standards and eminent domain. Oh, and binge drinking. They are complete clowns. But they at least are admitting the truth:

"I don't think we're going to be all that busy," predicted Assembly Minority Leader Alex DeCroce (R-Morris).

And Codey concedes "there's no universal, overriding issue that everybody's engaged in."

Really? Nothing pressing. Losers every one.

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NJ Democrats Missed Filing Deadline - But don't worry.

From this article in Politicker:

Democrats not concerned they missed deadline to pick Obama electors

That was the headline. The heart of the matter is this:

The New Jersey Democratic State Committee failed to hold a meeting to formally select its electors for Barack Obama, but is still on track to meet the Division of Elections filing deadline of Sept. 12.

State law requires political parties to hold a meeting to nominate electors within seven days of its national convention. The parties then have an additional week to file electors' names with the Division of Elections.

Democratic Committee Executive Director Rob Angelo said the elector certification process, generally completed at the committee meeting, is now underway.

It is now September 13, 2008. They have officially missed the deadline. Of course, you don't have to worry about it because this is New Jersey. This is the state that if a candidate is losing and is a Democrat, they can swap another candidate in their place against all precedent and election law. All because the state is corrupt and the Supreme Court in this state is political.

I am shocked that the Democrats in the state haven't made it law that all citizens are required to vote for Barack Obama. I am sure they thought about it.

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Remembering 9/11

This morning on the train, I came to the realization that when I stepped off the train in New York, it would be the first time on this day, September 11, that I had been in New York since September 11, 2001. I think in the first couple of years, I purposely tried to get as far as I could (year 1 - Japan). Then I think I settled into a mode that either subconsciously or unconsciously schedule something more important to do that go to the office in New York.

Seven years and it seems like yesterday. As the train rolled up to Secaucus, I pictured the smoke from the same view coming from the site on my way home. I wonder if the biggest issue for me about 9/11 is that it was probably the first time in my life that I had seen unadulterated evil out the window of my office(IE not on television). Imagine watching the approaching second plane (which I couldn't see) advance through the back side of the building (which I could see) and realizing that there could be no more manifestation of evil then what I was seeing live in front of my eyes. Building to building. And then, I remember the radio accounts of the buildings coming down. And after that, we were all in the street.

And then the fallout.


- The thought that these people were MURDERED just because they went to work
- The people milling about on seventh avenue trying to get in touch with loved ones
- The ghost people coming up the avenues covered with WTD dust with 'that look' in their eye
- The man on the NJ Coastline train who described to me what he saw from his window right next to the tragedy while telling me he hoped that I wouldn't appear in his nightmares for the rest of his life
- The people who gathered at my house wondering if I was okay
- The paramedics and police on every platform of every stop south of Middletown
- My drive home knowing that I was okay and others weren't
- Then two days later, the bomb scares in the building
- My one and only visit near ground zero
- The rescue workers trying to save these people while jeopardizing their own health
- The cheering of the spectators to each WTC volunteer as they took a break
- The cameras interviewing distraught relatives searching for their loved ones
- The heartbreaking photos pasted to every surface
- The tagging of the cars in the train parking lot
- And the tags still there over the next few days
- The nice lady from the train in Middletown who never appeared again until I saw her picture in the paper
- The prayers at St Francis of Assisi while the clergy there consoled us while at the same time they mourned Father Mychal Judge
- The way the community pulled together as only this one can
- The funerals

I pray that every family touched by this tragedy find the peace in their heart that their loved ones are with God. And frankly, I still hope to this day that those who did this, those who support them and those who sympathize with them have a special place in hell.

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Charlie Rangel and Fairness

From this morning's New York Post:

Rep. Charles Rangel, the powerful head of the congressional committee that writes the country's tax laws, blamed his ignorance - and not being able to understand Spanish - for failing to report $75,000 in rental income from his Caribbean holiday home.

So let me get this straight, the man in charge of the committee that sets tax policy in the House wants us to believe that he shouldn't be in trouble because he didn't know the rules. Funny. He wrote them.

But he also believes that he shouldn't be held accountable:

"I really don't believe that making mistakes means you have to give up your career."

That is funny. Isn't this the same man who wanted Trent Lott drawn and quartered for a comment praising a colleague at a party. Isn't he also the one who wanted his corrupt colleague in Louisiana to step down from his committee assignment for wrongdoing (maybe Charlie just wanted his seat).

Charie Rangel has been outspoken about taxing all of us from every angle while posing as a man of the people. However, he accepted 4 rent controlled apartments which should have gone to working families. He also didn't pay his taxes on his place in the Dominican Republic. Why? Because he thought he would get away with it.

One more question. If Charlie Rangel was a Republican, would he still be the chairman of the House Ways and Means Committee today? I think we all know the answer to that.

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Lautenberg up in polls and NJ residents just don't get it!

From this article in Newsday:

A new poll shows incumbent U.S. Sen. Frank Lautenberg enjoys a comfortable lead over Republican challenger Dick Zimmer heading into the fall election season.

The Fairleigh Dickinson-PublicMind poll has Lautenberg up by 11 percent, with the low-key Zimmer still struggling to get his name known to the electorate.

Here is what I don't get:

1. Lautenberg has frankly presided over the largest decrease in net return of federal taxpayer dollars to NJ residents in history.

No one cares.

2. Lautenberg is one of the leaders of the Democrat party that has had more that 100 of its elected officials convicted of public corruption in the last four years.

No one cares.

3. NJ keep debating gun rights and abortion in our state elections, neither of which matters in the live of many NJ residents. Issues that do matter like taxes, standard of living, education and government spending never get discussed.

No one cares.

4. NJ residents pay more taxes that any other state.

No one cares.

5. NJ has experienced the largest outflow of business and people of any state in the country EXCEPT Michigan in the past four years.

No one cares.

6. The Democratic legislature is only capable of spending more of residents money and enacting meaningless legislation (slavery apology).

No one cares.

7. Both Democrat and Republican apologists for the status quo have no ideas, no answers, no ethics and no action plan to change anything.

And no one cares.

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Have any doubts about the pig controversy?

From the Democratic party website 8/30/2008.

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NJ Democrat's Culture of Corruption Continues

From the Associated Press:

Ex-NJ politician headed to trial on fraud charges
By GEOFF MULVIHILL – 47 minutes ago

MOUNT LAUREL, N.J. (AP) — A former New Jersey lawmaker with a national reputation for pushing welfare reform is facing charges of using his political clout to land no-work government jobs as a way to boost his income and increase his pension benefits — from $28,000 a year to $81,000.

Wayne R. Bryant is also accused of steering state money to one of his employers, the University of Medicine and Dentistry of New Jersey. The Democrat could face several years in prison if convicted on all counts.

So another Democrat is to go to jail for public corruption. When will the citizens in this state finally wake up and realize that the money this man ripped off came right out of their state taxes and property taxes. Wake up New Jersey!

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NJ Taxes - What's up with that dude?

In this humorous spoof letter in the Tri-Town News, we get an equal comedy treatment on the two candidatates.

You'd no doubt like to go first this week, so you could pole ax me with the fact that John McCain couldn't remember how many houses he has, in answer to a question by some smart-aleck reporter. Could be seven, maybe more, and he suggested that nosy reporters check with his staff.

That's the only problem with marrying a beer distributor heiress who is worth $100 million. You forget about little things, like houses.

But he doesn't hold his fire just to McCain.

I think it's funny when the pundits try to contrast McCain's houses with man-of- thepeople Barack Obama, living in hardscrabble Hyde Park in Chicago, scrimping by on $4 million a year, in a $1.5 million mansion. Poor Barack. I bet he had to split rails to buy that house. Now there's a guy who can relate to my predicament!

But the real joke in this article is the following slam on New Jersey:

I bet you folks in New Jersey - which, congratulations, just moved into the No. 1 spot in the annual Tax Foundation survey of total tax load by state - have no problem remembering how many houses you own.

What I can't figure out is why you keep electing Democrats. Every map I see shows New Jersey as blue as blue can be. Do you really think tax-raising Barack Obama is going to make things better in New Jersey? You're not buying that crock, are you, Old Pal ? At least the Republicans have the common decency to lie to you about not raising taxes. The Democrats won't even make the effort to lie! What' s up with that, dude?

Yeah. What IS up with that?

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