Posts Tagged ‘economy’
Today, El Presidenté made the claim that the GOP was wasting precious time with the Boehner bill in the House, meanwhile the Democrats have yet to cough up anything that works and will even get passage. Thing is, Obama and Harry Reid have already made the point that they won’t pass anything that allows only a short-term raise in the debt ceiling and basically continue to complain about not wanting to make any real cuts to spending.
Then, Nancy “Queen Bee” Pelosi says that John Boehner “went to the dark side” to get the votes for passage. And I would have thought a woman of her experience would actually be able to act a little more than juvenile with her claims.
But no matter. The GOP still has done more to solve the debt ceiling problem than the Democrats have. The GOP has already produced a budget, something that the Dems haven’t done since they got the the Presidency with a super-majority in the Congress in 2008. The GOP passed the Cut, Cap, and Balance plan to fix the problem and Harry Reid has tabled it, with the promise of a veto if it ever got to his desk.
In short, since “Dem-Blonde Debbie” made the point that the Democrats “own the economy”, then I would say that, despite what the GOP does, the Democrats have already claimed ownership of this mess. They are standing in the way of their own bills, and pushing the government to the brink of default.
So, Mr. President, you and your people are the ones wasting time and all of this is now your party’s fault.
And you were calling for change…
I can’t wait for the change of 2012 when the American people give you a pink slip.
So, His Eminence, Barack Obama today stood before the White House press junkies and made this statement with respect to the current struggle in Congress over whether we should go further in debt to cover our spending, or cut the spending.
Obama made the statement that 80% of Americans were on his side with respect to the debate of what to include in the debt package. That means that 80% are alright with the aspect with raising taxes.
What 80% of Americans are we talking about here; the ones that live in the US or the ones who vote left wing? Obama hasn’t asked me – or anyone I know about whether they think we should have our federal taxes raised. As a matter of fact, I’m willing to bet that 8 out of 10 people that I asked, "Hey, do you want to have your taxes raised?", they would reply with a hearty "no".
Americans do agree that something has to be done, but it’s pretty arrogant and presumptuous to say that 80% of Americans are behind him when 80% of Americans have never been behind Obama on anything. I would argue that would also include putting a bullet in Osama Bin Laden’s brain pan.
After Obama’s whiny little spat with Eric Cantor yesterday and him stating that he was going back to the American people, rather than actually asking the American people. Obama knows full well what Americans would actually say if he actually asked them.
Raising taxes on the rich, even if we took 100% of their earned revenue in taxes would not solve the problem at all; it’s like taking $1 to pay against a $10,000 debt. But Obama and the Dems are playing the class warfare card, scaring the crap out of those who live on Social Security, and not bothering to look at the federal budget, line by line like he promised during the 2008 campaign, and cutting out the pork. All the man wants to do is raise taxes, and continue to spend – tax and spend, tax and spend.
Obama absolutely refuses to back away from this point and it’s staggering that a man who purports to have an IQ around 140 can’t actually understand this point. Obama lacks the cajones to actually go on record as cutting anything because that’s potential lost votes when 2012 starts rolling around.
And yet, Obama has the audacity to say that Congress is playing politics. If Obama was committed to this process, he would have fulfilled his campaign promises of cutting out unnecessary spending and not raising taxes. He wants to renege on both.
The way out of this situation is what we down on Main Street live with every day: Cut the spending and live within our means.
Liberals continue to ignore the evidence all around them. Today, the Washington Examiner printed this rather insightful article that shows what grows economies. In short, not taxing the so-called rich into oblivion, giving people the right to spend their own increase as they wish, and encouraging businesses to grow through liberty and freedom is the reason why Texas is kicking the pants off of everywhere else in the nation.
If we want America to grow we need to keep taxes low, get the government the heck out of people’s lives (net-neutrality nonsense), and hold to the Constitutional values that make our land the envy of the entire world.
Well, most every pundit and blogger has been taking angles of the State of the Union address, given by President Obama on Wednesday night. During the speech, Obama talked about the bank bailouts, saying how it was “necessary, but [he] hated it”. This thing got spun so hard, I’m thinking “centrifuge”.
But to go backwards a bit, at the risk of sounding like a broken record, we need to keep this all in the proper perspective, because it’s so easy to spin this.
1) Why did the banks fail?
Well, the banks started going under when the housing market collapsed in early 2007. Since the banks were the principal financiers of these mortgages and these mortgages started going into foreclosure en masse. Simply, when banks foreclose on mortgages, they lose money.
Now these banks will hedge their bets, so they get insurance to prevent bank failure. This is where AIG comes in. The banks start falling and AIG starts paying out insurance claims, upwards to about $93 billion, which was far too much then they were able cover.
But Obama didn’t mention this when he was railing on how much he disliked bailing out the banks.
2) What caused the housing market to collapse?
Big question. But really, it boiled down to the sub-prime mortgage crisis. As you may remember, sub-prime mortgages are given to people who have a much higher degree of risk of not paying back. These are people who aren’t as apt to pay their bills.
Now they pay rent, but someone thought they should be entitled to pay a mortgage. Perhaps it was the politicians fault for promoting the idea that everyone should own their own house. Campaign speeches and public addresses giving hope to people who wouldn’t otherwise have the chance to own a house was a big part of this problem – why? Because it brings votes. Perhaps it was the fault of bankers and mortgage companies for taking advantage of the government’s effort to get more people buying houses and playing people who had no business owning a house into loans they couldn’t pay. Many of the sub-primes were Adjustable Rate Mortgages (ARM’s). As the risk went up, the interest rate went up and the ability for people to pay went down. More and more people stopped paying their mortgages, causing more demand on those who were paying. Suddenly, it was a cascade effect. Banks were getting stuck with default mortgages and collecting insurance money from AIG.
We were told over and over by Barney Frank and Maxine Waters that Fannie Mae and Freddie Mac were in no danger, yet, Greenspan warned of an impending collapse. Of course, it was funny to hear Greenspan prophetically talking about a collapse when Greenspan’s entire point in life was to watch the economy for variations and keep bubbles from forming. Perhaps retirement gave him some clarity.
No, Mr. Obama, this isn’t about the evil banks needing bailout. But you’re hoodwinking Americans by not looking back at the causes, pinning the blame on banks.
Oh, can you please tell me why Fannie and Freddie doesn’t get slammed for nice fat bonuses like all the other financiers? Oh, and where was the Fed in all of this? Yeah, it was THEM on Wall Street, not THAT ONE on Pennsylvania Avenue.
For today’s installment, the topic revolves around our faltering economy. But before we start, I submit this little video to make you smile.
Did you get a good laugh? I hope so! Now, onto business.
The only question I have for today: When does it stop? We’ve thrown $700 billion in unearned revenue to bail out the banking industry. AIG wants $150 billion. American Express wants $3.5 billion. The auto makers are up to, what, $50 billion? Treasury Secretary Paulson says that all but $60 billion of the $700 billion has already been committed. I guess that big ocean of cash is now more like a birdbath.
And we heard this week that Circuit City is bankrupt and closing stores and Starbucks is running into finance trouble. When does it stop? When does the government spigot of cash turn off? When does government stop interfering?
All this economic mess has one central root – government. Here’s an overview, again, of how we got into this mess, so we can see what happens when we use the arm of government to screw up the world’s greatest economy.
The Clinton Administration began with making home ownership more accessible to those who had no business owning a house and by forcing Fannie and Freddie to soften the rules, to help those less advantaged. And then, we found out that they couldn’t pay the bill (duh), but somehow, we were all told that home ownership was a right, rather than a financial privilege, as it always has been. But hey, telling the masses that they can own their own house if they just elect a Democrat to the presidency…well, hey it made for a successful campaign for Bubba.
The torch passed onto the Bush Administration, who had to deal with the dot-com bust and 9/11′s impact on the economy. From there, it took on a policy of soft-landings for every financial problem of the last eight years. Instead of spending tax money, which is the Democrat solution to these things, they borrowed against the national debt. Either way, throwing money at the problem didn’t fix the problem. What’s funny is that’s what we’re still doing!
Fannie/Freddie/Congress – This toxic relationship was one of Fannie and Freddie buying up all these bad mortgages and Congress looking the other way, even though there was warning after warning in 2004 and 2005. Congress didn’t intervene when these GSE’s went hog wild and unchecked. Notwithstanding that Congress was drunk on its own spending frenzy, this triad of “see/hear/say no evil” continued shoveling paper dollars onto a growing fire.
Of course, Wall Street kept plodding along, thinking that an infinite rise in home prices was somehow the way it was supposed to be and listening to the unholy triad of Fannie/Freddie/Congress’ lead. And after learning that they made a grave error, far later than what they should have, they ran back to Uncle Sam to save their jobs and massive bonuses, rather than taking responsibility for their ineptitude and mistakes.
If we don’t get it through our heads that every time the government gets its hands into works, it screws it up, we are in for a long long next couple years. If all of this shows anything, it reinforces what Ronald Reagan said, “Government is not the solution to the problem. Government IS the problem.”
And I just heard that, instead of the Government buying up all the bad mortgages, it’s going to buy stock in banks.
Great. That’s money that my kids will never get back.