McCain’s Mortgage Plan

September 30, 2008

As Obama asks, what has McCain been doing while this mortgage crisis has been brewing?  Quite a lot it seems, except no one wanted to listen.

http://digitaleconomy.wordpress.com/2008/03/26/mccain-a-radical-new-mortgage-idea/ links to http://www.johnmccain.com/Informing/News/Speeches/bea72b48-35ba-48cb-8cea-b3b68b9be7ee.htm

Just found this, post-melt-down. Maybe it would have been too little, but it certainly was a timely suggestion. I doubt it would have cost anywhere near $700B. I wish we would have had a President McCain last year instead of only Candidate McCain, someone who sees the indicators and steps forward to head off the crisis, instead of merely throwing cash at the problem after the damage is done.


Where the Mortgage Mess Came From

September 30, 2008

It’s old, but still useful.  Milton Friedman on how to fix the federal reserve problem. He says true cause and root problems are:
1. Monetary policy dictated by banks.
2. Debt on money issuance, owed by the people towards banks.
3. Lack of competition, and of a mixed market which would enforce this.
4. The corruption of government by Banks and Corporations.

Watch for yourself:  http://www.youtube.com/watch?v=wwC7q_gdex0


McCain’s Mortgage Warning

September 28, 2008

interesting video from on the origins of the current economic problems.  Doing good research, they backtracked each claim to find first causes.  Seems most of the problems came from Carter, then Clinton, two Democrat presidents.

All this time, McCain was in the Senate.  How did he react?

Sought to reform mortgage rules and insist on financial transparency in financial transactions (he was cleared of any wrongdoing in the Keating S&L failure as an innocent bystander, and sought immediately to clean up the system.

When a 2005 bill to reform the looming mortgage mess was blocked by the Democrats, John McCain signed on as a co-sponsor and urged the Senate to bring it to the floor.

Watch the video at http://www.youtube.com/watch?v=NU6fuFrdCJY

The Democrats claim McCain didn’t really do anything with that legislation, but evidence exists of a letter he and 12 other Senators wrote urging acftion in 2006.

What was Obama doing during all this?  In April 2007, Obama said  “What we need to do is get community development corporations and faith-based organizations, synagogues, others that are interested in setting up not-for-profit 501c3’s to build affordable housing that is integrated into the community, integrated economically, by the way, not just racially. And the federal government’s role then is to properly fund and subsidize those efforts.”  (source:  Lynn Sweet)

Not content to cry over failed legislation, Candidate McCain again raised the issue on March 25 of this year:

“I think we need to do two things right away. First, it is time to convene a meeting of the nation’s accounting professionals to discuss the current mark to market accounting systems. We are witnessing an unprecedented situation as banks and investors try to determine the appropriate value of the assets they are holding and there is widespread concern that this approach is exacerbating the credit crunch.” (http://www.johnmccain.com/Informing/News/Speeches/bea72b48-35ba-48cb-8cea-b3b68b9be7ee.htm)

Based on this research, I believe the only candidate with the foresight to fix the future is the passionate McCain, not Obama.


Bailout set to reward the crooks – again

September 27, 2008

According to Nicholas D Kristof at the NY Times, C.E.O.’s of large public companies average 344 times the average pay of workers, and tax code encourages overpaying executives; these cost taxpayers more than $20 billion a year. What do we get for all this cash? According to studies, they do well – two thirds are “better than average.”  (Only when you fuzzify the numbers can more than 51% be above average.)  They make profits by firing workers and shipping work overseas, not by contributing to the economy.

And so you see the problem.  We paid for their huge salaries out of our tax money, and now we’re going to have to pay again to rescue their mismanagement of these puffed-up charlatans.

This was most acute in the financial sector.  Multiple millions in annual bonuses, plus the salary, perks, and privilege.

The bailout is a bad deal unless the US gets ownership stake and those who got us here share the cost.

source:  NYT Blogs


Dad McCain: “Don’t make me come down there!”

September 25, 2008

John McCain got frustrated with the “Christmas tree” effect already starting in Congress in their efforts to address the fiscal crisis.  He threatened to do what we had told him to do – suspend his campaign long enough to return to Washington and fix the problem. 

But he delayed, until Congress started adding pork and special interests into the bill, so that the costs became really fuzzy.  He announced Wednesday he was going to quit the campaigning long enough to go fix the problem, create a bipartisan solution, and if it meant missing the debate, so be it. 

It’s like dad announcing “don’t make me come down there, cause you won’t like what I’m gonna do if I have to come.”

Congress heard. 

They went from deadlock yesterday to agreement today.  It wasn’t Bush’s lackluster speech, because there wasn’t a report this morning of a solution.  Agreement didn’t come until after McCain spoke at Clinton Forum, outlining 5 common sense demands for the solution:  accountability and transparency, ownership instead of bailout (repayment to taxpayers instead of treasury general fund), and no extra trinkets.

Here’s what he said:

First, there must be greater accountability included in the bill. I have suggested a bipartisan board to provide oversight for the rescue. We will not solve a problem caused by poor oversight with a plan that has no oversight. Never before in the history of our nation has so much power and money been concentrated in the hands of one person, and there must be protections and oversight in place.

Second, as a part of that oversight, there must be a path for taxpayers to recover the money that is put into this fund. When we’re talking about 700 billion taxpayer dollars, that money cannot simply go into a black hole of bad debt with no means of recovering any of the funds.

Third, there must be complete transparency in the review of this legislation and in the implementation of any legislation. This cannot be thrown together behind closed doors. The American people have the right to know which businesses will be helped, what that selection will be based on and how much that help will cost. All the details should all be made available online and elsewhere for open public scrutiny.

Fourth, it is completely unacceptable for any kind of earmarks to be included in this bill. It would be outrageous for legislators and lobbyists to pack this rescue plan with even more taxpayer money for favored companies. And frankly, members of Congress who would attempt such a thing are scarcely better than the most reckless operators on Wall Street.

Fifth and finally, no Wall Street executives should profit from taxpayer dollars. Let me put it this way: I would rather build a bridge to nowhere — and put it square in the middle of Sedona, Arizona — than take money from teachers and farmers and small business owners to line the pockets of the Wall Street crowd that got us here in the first place. And I can assure you: if I have anything to say about the matter, it’s not going to happen.

It’s not a done deal yet.  I’d say they’d better get to work.  If Mom would say wait until dad gets home, I’d want to get my stuff done before he showed up.  Congress is still quibbling.  I say they’d better get to work.

(Thanks to grist.org for capturing and posting the text of the speech!)


The Democrat’s Economy

September 25, 2008

The economy is troubling.

over 600k more people out of work this year. Inflation running at 5.5%, the highest in years. Housing values down an average 20%. The markets? Hah!

When Nancy Pelosi began her 100-day campaign to clean up Congress in 2007, gas had us scared at $2.15. If gas were that price today, there’d be a line around the block!


Bush-whacked, again

September 25, 2008

Our President read a speech to the nation tonite, and it wasn’t pretty.  There wasn’t passion, there wasn’t excitement.  There WAS fear – fear his lasting legacy will be economic ruin of the whole country and having the Repubican party crushed in the Presidential and Congressional elections a few weeks from now. Read the rest of this entry »