This Guy Is Great!!!!!
Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-
This writer feels that the current financial crisis is really a moral crisis. Personally, I think that we need to accept that we are human beings and that we will act like human beings in our environment. Its no one's fault and silly to point fingers at people that act in their own self interest like one would expect people to behave. Unfortunately, the environment is polluted with a bizarre new moral code.....
If we seriously wish to repair the damage, we need to accept that this is fundamentally a moral crisis, not a financial one. It is the product of the self-indulgence and complacency born of our ultraliberal societies, which have substituted such pseudo-religions as political correctness and saving the planet for genuine distinctions between right and wrong and the cultivation of real virtues.We have allowed the true root of American life marked by ingenuity, individual responsibility and hardwork wither by watering it with the acid water of Liberalism.
We are traveling along the high road to incompetence and poverty, led by a farcical coalition of fashionably liberal academics on the make, assorted eco-crackpots and media wiseacres. This strain of liberalism is highly infectious. The Indians and Chinese have yet to be infected. They're still healthy, hard at work and going places, full speed ahead.I do not agree with the writer on his assessment of the Chinese, but I do agree that Liberalism is Western disease that will only result in tragedy.
According to OECD statistics, the US already has the highest progressive tax system among these 24 wealthy nations where the richest decile of taxpayers in the US paid 45.1% of all income taxes. The average decile of wealthy taxpayers in the OECD nations averaged a 31.6% share.
Excerpts from An American Businessman's Letter to Obama, from Corey Miller, aka "Corey The Well Driller":
You see, Mr. Obama, I'm the guy you intend to raise taxes on. I'm the guy who has spent 25 years toiling and sweating, fretting and fighting, stressing and risking, to build a business and get ahead. I'm the guy who has been on the very edge of bankruptcy more than a dozen times over the last 25 years, and all the while creating more and more jobs for East Texans who didn't want to take a risk, and would not demand from themselves what I have demanded from myself. I'm the guy you characterize as "the Americans who can afford it the most" that you believe should be taxed more to provide income redistribution "to spread the wealth" to those who have never toiled, sweated, fretted, fought, stressed, or risked anything.Democrats just suck. We are traveling down the path of socialism and its a recipe for overwhelming mediocrity. Our forefathers built a nation and sent us on a path of greatness only to be derailed by socialism foisted upon us 70 years ago by the New Deal. I cry for the death of this great nation.
You want to characterize me as someone who has enjoyed a life of privilege and who needs to pay a higher percentage of my income than those who have bought into your entitlement culture. I resent you, Mr. Obama, as I resent all who want to use class warfare as a tool to advance their political career. What's worse, each year more Americans buy into your liberal entitlement culture, and turn to the government for their hope of a better life instead of themselves. Liberals are succeeding through more than 40 years of collaborative effort between the predominant liberal media, and liberal indoctrination programs in the public school systems across our land.
What is so terribly sad about this is this. America was made great by people who embraced the one-time American culture of self reliance, self motivation, self determination, self discipline, personal betterment, hard work, risk taking. A culture built around the concept that success was in reach of every able bodied American who would strive for it. Each year that fewer Americans embrace that culture, we all descend together. We descend down the socialist path that has brought country after country ultimately to bitter and unremarkable states.
Oh, I know you will say I am uncompassionate. Sorry, Mr. Obama, wrong again. You see, I've seen what the average percentage of your income has been given to charities over the years of 2000 to 2004 (ignoring the years you started running for office - can you pronounce "politically motivated"), you averaged less than 1% annually. And your running mate, Joe Biden, averaged less than ¼% of his annual income in charitable contributions over the last 10 years. Like so many liberals, the two of you want to give to the needy, just as long as it is someone else's money you are giving to them. I won't say what I have given to charities over the last 25 years, but the percentage is several times more than you and Joe Biden. combined (don't you just hate google?). Tell me again how you feel my pain.
In short, Mr. Obama, your political philosophies represent everything that is wrong with our country. You represent the culture of government dependence instead of self reliance; Entitlement mentality instead of personal achievement; Penalization of the successful to reward the unmotivated; Political correctness instead of open mindedness and open debate. If you are successful, you may preside over the final transformation of America from being the greatest and most self-reliant culture on earth, to just another country of whiners and wimps, who sit around looking to the government to solve their problems. Like all of western Europe. All countries on the decline. All countries that, because of liberal socialistic mentalities, have a little less to offer mankind every year.
A Obamessiah supporter, one that is a blue blue Democrat, told me that he too had concerns that The One is the anti-Christ. However, he also thinks that the Obamessiah will "surprise me." I suppose, in other words, that whatever socialist tendencies and his associations with Marxists and radicals central to the hard left orthodoxy will be eschewed and make way for a more traditional American sensible policy.
conservative Christians are offended by how the secular left has greeted Obama as a messianic figure. The hosannas during Obama's Europe trip were so over-the-top that London Times columnist Gerard Baker ridiculed the senator's visit as akin to Christ's entrance into Jerusalem. The BBC interviewed a worshipful German who described Obama as his "redeemer." Fox found another who exalted his "new messiah." To the question, "Who do you say that I am?" some Europeans made their choice as Obama swept into their presence.So, now were are to believe that he really won't be as radical as we fear? Then why didn't he run that way?
As Obama's election has seemed to become more likely in the past six weeks, a quiet but public debate has arisen among both Republicans and Democrats that wonders which Obama we might get. Will it be the prudent, moderate, pragmatic, sensible president who will apply non-ideological, centrist policies? Or will it be the Obama who sought out the company of radicals, black racists, faculty-lounge Marxists and studied the methods of Saul Alinsky?Sensible? Not!!!!!!!
Many hope that it is the sensible centrist who will emerge -- even though it has been his style and cautiously evasive comments, rather than his substance, that have sounded so reasonable and calm. It is that moderate tone that has led some recent Republican Obama supporters to hope that he is just lying about his views and is secretly "sensible."
I have always been curious about these economic stimulus packages. Int he US, they send a check to households with the expectation that that household spends it on consumer goods. Economically, these things are very suspect. I feel that it is government trying to show that they are doing something even if this 'something' is more form over substance.
MESSAGE TO THE AUSTRALIAN PUBLIC
The federal government is giving Pensioners etc. a bonus for Christmas.
If we spend that money at K-Mart, the money will go to China.
If we spend it on petrol it will go to the Arabs, if we purchase a computer it will go to Taiwan,
If we purchase fruit and vegetables it will go to China, Mexico, Honduras, and Guatemala,
If we purchase a good car it will go to Japan,
If we purchase useless crap it will go to Korea and none of it will help the Australian economy.
The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in Australia.
Thank you for your help.
Kevin Rudd & Wayne Swan .
(Australian Prime Minister & Australian Treasurer)
The Obamessiah, the greatest empty suit to stand up in front of the American people to seek to be their President, is worrying empty suits all over the world these days. As I overheard yesterday, one empty suit hanging in a tailor shop here in Hong Kong awaiting to picked up by a customer said...
He is redefining the completeness of the emptiness of empty suits. Its embarrassing. Any more empty, it would like being in outerspace where there is no gravity what-so-ever.Other empty suits are worried in Europe...
French President Nicolas Sarkozy is very critical of U.S. presidential candidate Barack Obama's positions on Iran, according to reports that have reached Israel's government.
Sarkozy has made his criticisms only in closed forums in France. But according to a senior Israeli government source, the reports reaching Israel indicate that Sarkozy views the Democratic candidate's stance on Iran as "utterly immature" and comprised of "formulations empty of all content."
According to the anti-Christ, oh, sorry, the Obamessiah, 95% of Americans will get a tax cut. This is just not true. Lets look at some of the facts. When the Bush cuts expire, we will see these tax increases for middle class taxpayers.....
For a married family, filing jointly and earning $75,000 a year, this increase will be $3,074. For those making just $50,000, this increase will be $1,512. Despite Senator Obama's claim, even struggling American families making just $25,000 a year will see a tax increase -- they'll pay $715 more in 2010 than they did in 2007. Across the board, when the tax cuts lapse, working Americans will see significant increases in their taxes, even if their household income is as low as $25,000. See the tables at the end of this article.(From here) So families making $75,000 will see their taxes increase by over $3,000 upon expiration of the Bush tax cuts. So, he says that he will not raise your taxes but will let the Bush cuts expire. Its a semantic argument.
They are always under the dominion of the superstition of government, and forgetting that a government produces nothing at all, they leave out of sight the first fact to be remembered in all social discussion -- that the state cannot get a cent for any man without taking it from some other man, and this latter must be a man who has produced and saved it. This latter is the Forgotten Man.
-William Graham Sumner (1840-1910)-
The O-man, Barack Hussein Obama, is an eloquently tailored empty suit. No resume, no accomplishments, no experience, no original ideas, no understanding of how the economy works, no understanding of how the world works, nothing but abstract, empty rhetoric devoid of real substance.
He has no real identity. He is half-white, which he rejects. The rest of him is mostly Arab, which he hides but is disclosed by his non-African Arabic surname and his Arabic first and middle names as a way to triply proclaim his Arabic parentage to people in Kenya . Only a small part of him is African Black from his Luo grandmother, which he pretends he is exclusively.
What he isn't, not one genetic drop of, is 'African-American,' the descendant of enslaved Africans brought to America chained in slave ships. He hasn't a single ancestor who was a slave. Instead, his Arab ancestors were slave owners. Slave-trading was the main Arab business in East Africa for centuries until the British ended it.
Let that sink in: Obama is not the descendant of slaves, he is the descendant of slave owners. Thus he makes the perfect Liberal Messiah.
It's something very hard to understand - how some complete neophyte came out of the blue and is about to steal the election. Obamamania is beyond politics and reason. It is a true religious cult, whose adherents reject Christianity yet still believe in sin, transferring it from the evil of being human to the evil of being white.
Thus Obama has become the white liberals' Christ, offering absolution from the Sin of Being White. There is no reason or logic behind it, no faults or flaws of his can diminish it, no arguments John McCain can make will be effective against it. The absurdity of Hypocrisy Clothed In Human Flesh being their Savior is all the more cause for liberals to worship him: Credo quia absurdum; I believe it because it is absurd.
Thank heavens that the voting majority of Americans remain Christian and are in no desperate need of a phony savior. His candidacy is ridiculous and should not be taken seriously by any thinking American.
I hope to God enough people wake up before election day.
-Jack Wheeler is a brilliant man who was the author of Reagan's strategy to break the back of the Soviet Union with the star wars race and expose their inner weakness. For years he wrote a weekly intelligence update that was interesting and well structured and informative. He consults(ed) with several mega corporations on global trends and the future, etc. He is in semi-retirement now. He is a true patriot with a no-nonsense approach to everything. He is also a somewhat well-known mountain climber and adventurer-
According to the Obamessiah....
The Obamessiah from a 2001 interview. He talks about redistributive justice being difficult to achieve through the courts. But I suppose that he thinks that he can do it through legislation.
From each according to his abilities, to each according to his needs.Barack Obama's quote is definitely much less eloquent than his earlier communist counterpart.
-Karl Marx, Philosopher and Economist-
I want to spread the wealth around.
-Barack Obama, Presidential candidate and anti-Christ, 2008-
A couple of Sunday's ago, I went to Tsim Sha Tsui station at around 3 pm to run an errand. I observed a brown skinned young man filming people walking around the station. He was filming people walking down the steps and going through the turnstiles. I didn't think anything of it.
I have always been very cynical about the Godless Democrats. But now that they are fervently serving the Obamessiah, they now have a Christ figure to head their God in Washington. Also, we now see that they have a prayer....
Our Father, Barack Obama, who art in Washington,Barack Obama is the anti-Christ.
hallowed be thy name.
Thy United States come,
thy tax increases be done,
on earth as we also plan to do in heaven
Give us this day our daily handout.
And forgive us our blasting innocents like Joe the Plumber in the campaign,
as we forgive those who campaign against us (Maybe not).
And lead us not into good governance,
but deliver us from Fox News.
For Obama is the kingdom, the power and the glory. For ever and ever. Amen
Barack Obama has vowed that he will "change the world" even as he urged his supporters to guard against complacency.This guy isn't going to change the worldand I, for one, do not want someone to change the world but to act on my behalf as the President of the United States.
"Thanks. but no thanks, I already have a Messiah and his name is Jesus Christ.Barack H. Obama is not a messiah but he sounds more like the anti-Christ. He has legions of followers; worshiping him, blindly following him, beating up others for him, silencing critics for him, the him that we know so very very little about. Be very very afraid.
-Glenzo, October 20, 2008"
The Bradley effect, less commonly called the Wilder effect, is a proposed explanation for an alleged discrepancy between voter opinion polls and election outcomes in American political campaigns when a white candidate and a non-white candidate run against each other. Named for Tom Bradley, an African-American who lost the 1982 California governor's race despite being ahead in some voter polls, the Bradley effect refers to an alleged tendency on the part of some voters to tell pollsters that they are undecided or likely to vote for a black candidate, and yet, on election day, vote for his/her white opponent.So, lets be clear, there is no real voting effect. People will vote for who they will vote for for a variety of reasons. Some may not vote for a Black, some may not vote for an old person. Some may prefer a Black or an old person. Some will look at each candidates economic plans and some will look at their social plans. Some will be impressed with the way that a candidate dresses, speaks, walks, eats or even facial features, quirks and a host of other things that may not seem relevant to the job at hand. That is how an electorate makes a decision.
The theory of the Bradley effect is that the inaccurate polls have been skewed by the phenomenon of social desirability bias. Specifically, some white voters give inaccurate polling responses for fear that, by stating their true preference, they will open themselves to criticism of racial motivation. The reluctance to give accurate polling answers has sometimes extended to post-election exit polls as well. The race of the pollster conducting the interview may factor in to voters' answers.
As I have said before, New Yorkers feel that they are somehow justified in inflicting physical harm on those that they do not agree with....
Poor Joe the Plumber. A man that is considering purchasing a plumbing business that presumably would require him to borrow money and incur some risk, asked a question of the Obamessiah. It amazing that it has taken this long for anyone to ask a single tough question. Liberals and the Press are stunned that someone is actually concerned about the Messiah's tax policies. The fawning press has essentially been allowing the Obamessiah to avoid any tough questions and this guy is probably the most under-vetted presidential candidate in modern history. What about him being the product of a corrupt Chicago political establishment? How about the cheap land deal with the local criminal Tony Rezko? Does anyone really think that a tax cut for 95% of American is reasonable when the bottom 50% of American taxpayers only pay 3% of total Federal personal income taxes? Populist Utopian income redistribution is just a ploy to buy votes. I am sure that typical American's do not believe this BS for a nano-second. But it goes almost undiscussed in the main-stream Liberal press and hardly anyone looks at the what the haeck this means. Really, what the Obamessiah is actually offering as tax cuts are rebate checks, increase distribution of things like food stamps and other government giveaways and calling them as tax cuts. Its a crap plan and the press is just fawning over the messiah instead of looking at what these things actually mean.
As Ed Morrissey describes what we've learned from this revealing episode,This has been the most amazing Presidential race that I have ever experienced.
1. Thou shalt not offend The One by asking him a question. Of any kind.
2. Anyone who questions The One will have to undergo a public pillorying of a kind unseen since the Red Scare, or perhaps the Inquisition.
3. The Tanning-Bed Media will happily participate in any inquisition, as long as it keeps them from investigating irrelevant issues like Obama’s ties to the Chicago Machine, William Ayers, ACORN, or his record on protecting infanticide.
some politicians want to take credit for the new economy, but I don't see government starting new companies, writing new software, inventing new technology, opening new factories. I've always thought those things were done by, well, the people who did them. Our new economy was not created in a Senate subcommittee or a vice presidential commission.
-George W. Bush, Campaign speech 1990-
Actually, this was 1965. When people thought that the world was collapsing. Now we look back on that time as Camelot.
I have always had this little voice in my head and I have explained it to myself as instinct. It seems to know when I am making incorrect decisions, particularly investment decisions and this little voice seems to be somewhat prescient.
The One is asked about his tax plan and the Obamessiah responds that he wants to "spread the wealth around."
We have heard all about Barak Obama's associations with all kinds of hard left people and groups like former terrorist Bill Ayers, hate monger from the pulpit Rev. Jeremiah Wright, ACORN, the sleazy community organizer group that uses typical Democratic tactics of cheating in elections and a host of other shady associations that are probably a fairly accurate look into what the Obamessiah is really like. Some, who actually think about this, may think that it is scary.
The leftist idea of unity is and has always been the elimination of dissent.....
Sure, they can say it is racist to blame ACORN, Fannie or Freddie, just because they say it doesn't mean it is true. The fact is, Government intervention in free markets caused this issue, plain and simple. The idea that every American can own a home caused this issue. With Obama spouting that we need to spread the wealth around, it seems to me we'll get more of this meddling in the future - Karl Marx style.One may think that this is from some right-wing website, but actually it is from the Daily Anti-Kos, Who is the Daily anti-Kos anyway? We know that the Daily Kos is the leftist move-on style Democrat supporter blog. It appears to me that even these committed leftwingers may be a little concerned about the Obamessiah's plans to take away their money too. Income redistribution will mean the redistribution of the committed left too. I guess its OK to redistribute wealth as long as it is someone else's wealth that is redistributed and not one's own.
From my money manager....
Here are some numbers that tell us what we can now find in the stock market. I read these from the Wall Street Journal. Out of 9,194 stocks tracked by Compustat Research, 3,518 are trading at less than half the long-term average valuation of the stock market as a whole. Nearly one in ten or 876 of these companies are trading below their per-share value of cash on their balance sheet. This is a higher number than Ben Graham (Warren Buffet's mentor) found at the 1932 bottom, which was the low of the worst bear market in U.S. history. These numbers tell me now is a good time to buy assets should we have the capital. This is another way of saying now is not a good time to be selling assets.But the risk is that we are about to enter a government interventionist era where risk taking and value creation will be punished by high tax regime at the central government. So maybe it could be even worse.
This is a rational response to the potential for a hard left socialist agenda potentially being foisted on one of the most vibrant and productive economies that the world has ever seen....
And right now it looks like the U.S., which built the mightiest, most prosperous economy the world has ever known, is about to turn its back on the free-enterprise system that made it all possible.Goo luck world, we maybe in for a real doozzie. I predict a chance that global trade will freeze up and that could be starvation in certain places in the world as a result.
It isn't only that the most anti-capitalist politician ever nominated by a major party is favored to take the White House. It's that he'll also have a filibuster-proof Congress led by politicians who are almost as liberal.
Throw in a media establishment dedicated to the implementation of a liberal agenda, and the smothering of dissent wherever it arises, and it's no wonder panic has set in.
In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.
The socialization of risk and the expectation that the government is going to protect or is even able to protect our way of life is, in my humble opinion, the root of today's financial crisis. Governments cannot save an economy and people should never look to it to know how to handle these things. 70 years of the opiate of the reliance on government to know, regulate and solve economic problems will prove to be trouble.
Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.Also, large government interventions and fiddling raises risk for risk takers since they may not be able to allocate capital or think that there is a risk that government will seize gains made. Human nature is that people want to benefit for the deployment of their monetary and human capital. If they think that these gains will be arbitrarily seized then it is natural to not try.
After scrutinizing Roosevelt's record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.
The financial collapse of Fannie Mae and Freddie Mac is not a failure of the free market because lending institutions in a free market would not have taken on the high-risk loans. They were forced to by the heavy hand of government. The solution is not a taxpayer-financed bailout. The solution is to let them fail and allow the people who invested in them, as well as the people who purchased homes they couldn't afford, suffer the losses. Of course that takes a level of political courage that is in short supply.
-George Mason economist Walter Williams-
From the National Review....
When Obama says Pock-i-stahn I have an uncontrollable urge to read the New Yorker and find some Chardonnay.
Fortunately I have an old copy of NR and a Coors Light to snap me back to reality.
Seriously though — no one in flyover country says Pock-i-stahn. It's annoying.
I have been watching. I have no idea what the heck the Obamessiah is talking about. Maybe that is because I am stupid.
You know why I could never vote for Obama or his ilk? I just cannot stand the way that he pronounces Pakistan. Its kind of like Paw-kist-on. I just cannot stand this.
I am amazed that anyone is offering to raise taxes as Obama is. The foundation of the American as well as the developed worlds economic problems is that there is too much consumption relative to savings. Savings flow into investment and this is what creates innovation, productivity and jobs. Savings creates wealth. No savings creates risk. Raising taxes on the 'rich' and giving it to the 'middle-class' is just turning savings into consumption. What the economy has needed this past 10 years is savings not consumption. This kind of tax policy coupled with the socialization of people's risk is a recipe for disaster.
We have seen governments around the world intervening in markets trying (I think hopelessly) in trying to stem the tide of a rapid deleveraging that will have to finish in its own time. Also, over consumption in the US will rapidly decline and due to fear, we will save more. Asians will save less and consume more as the large pools of cash are depleted to support their sagging economies.
FANNIE MAE EASES CREDIT TO AID MORTGAGE LENDINGThe bottom line, is that for the past the 75 years, government has been too involved in private transactions and this has led to distortions in the real economy. Subprime is not caused by Wall Street greed solely. Wall street acted like one would suspect. It is the job that Wall Street is supposed to do. All Wall Street did was to try to distribute this and this stuff was not of their making. The straw that broke the came's back is the subprime and this stuff falls squarely on the feet of US governement.
By STEVEN A. HOLMES
Published in the New York Times on September 30, 1999.
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
"I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.From here.
The current crisis is a financial banking crisis whose roots are found in reckless mortgage lending over the past several year. But why did all of these banks participate and get caught owning all of these bad assets. Well, the reason being is that the government told them to do so. Sub-prime lending was encouraged by government and banks were told to hold the paper in order to merge.
One of the few journalists to see where this would lead was Jeff Jacoby, of the Boston Globe. Last week he reminded his readers what he had written in 1995: "Our banks are knowingly approving risky loans to get the feds and the activists off their backs... When the coming wave of foreclosures rolls through the inner city, which of today's self-congratulating bankers, politicians and regulators plans to take the credit?". Jacoby adds now: "Barney Frank doesn't. But his fingerprints are all over this fiasco."
The 19th century British politician Andrew Tytler was supposed to have said, “a democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.” ‘Always’ is a very strong term; and it presupposes that information has no cautionary effect on the public.Politicians think that they are doing us favors by handing out money to people. One of the biggest fallacies that exist in the US is that thing called Social Security. There is no Social Security Trust Fund. The only asset that Social Security holds are US Government bonds that exist since Social Security taxes were spent on other things and the government issued debt back to itself. The bulk of the outstanding US Government debt of $10 trillion is held by such agencies. The only way to pay out these benefits that we have been promised is therefore by collecting immense amounts of new taxes.
As we see here, Zimbabwe's inflation rate is now 531 billion %. That 531,000,000%. Its unbelievable, they cannot add zeros quick enough to the currency to make it relevant. It would be impossible to transact with the currency since it will lose value every moment. So, as I have heard, transactions are all in US$. The problem is that people outside the big cities don't have access to currency and therefore are unable to buy or sell anything.
The one good thing that came out of this whole credit debacle, I now have the perfect pithy response to all the lefties who tell me that the government should take over health care and make it affordable to everyone. You mean the way they made home ownership affordable to all through Fannie and Freddie? How did that work out for you?From here.
1. You refine heroin for a living, but you have a moral objection to beer.
I am always amazed listening to left-wing clowns yapping on TV that this financial crisis was a failure of not enough regulation. Banking is one of the most highly regulated businesses on the face of the planet. And yet, failures are happening not just in the US but also in Europe where 5 banks have failed so far this week and were forced to seek government assistance. So, by definition, bank failures in Europe cannot be the fault of American regulation since they are not regulated by Americans. So, when Pelosi bloviated that this banking crisis was the result of the Bush Administration's 'anything goes attitude' then how can that 'anything goes attitude' by the Bush Administration apply to the 5 banks that failed this week in Europe and the ones like Northern Rock and a handful of unpronounceable German banks last fall that also failed?
1. Hedge fund managers get paid exorbitantly well when they are successful and make nothing when they are not. This is a huge incentive towards ultimate success.Hedge funds are true capitalism and banks are not. So, in my humble opinion, governments and regulation have again proved that they are incapable of operating socialist economic policy effectively or efficiently.
2. Investors in hedge funds live in a world of caveat emptor and have to be sure that the strategies employed by these funds is sensible and there is an internal policing mechanism that keeps the wheels on the track.
3. Investors know that there is no government protection (no moral hazard issues) so they are extra diligent on making both the initial investment and also pulling their money out when the strategy doesn't make sense anymore.
4. Money moves to new strategies to take advantage of opportunities according to the market and is not led or limited by outside regulatory or government interference.
Democrats, since the Community Reinvestment Act of 1977, have been supporters of politically correct lending at the expense of making financially sensible loans. They are also complicit in pushing Freddie Mac and Fannie Mae as well as a multitude of banks when they sought to merge to buy and hold these loans in their portfolios. This is not the greed of Wall Street but the stupidity of Washington, that continues to foist unfunded mandates on people and businesses in the USA.
by Scott Ott for ScrappleFace