Unintended Consequences

Ok... Below is an update on the Economy from my Congressman... Here's my 2 cents to add to this is....

Pay attention to the phrase "Broad Authority". Although I greatly respect my Congressman and believe that he truly has my best interest at heart, I would rather the market feel some pain and correct itself. Congressman Campbell probably felt that there wasn't a choice, but I know that a Bank's BUSINESS is to loan money, so eventually, they would have started again... or go out of business. Back to the "Broad Authority"... Recently, the California Department of Fish and Game was given "Broad Authority" to manage a Lead Ban for the benefit of the California Condor... a bird, much like a prehistoric buzzard, that was brought back from near extinction and transplanted into a wilderness area that was just a few thousand acres. The Lead Ban was passed and included a provision to reimburse hunters for the cost of switching to non-lead ammo. Within days of passage, the DFG expanded the area to hundreds of thousands of acres which reached from Los Angeles the the Bay Area. The DFG said this was the "potential" habitat for a resurgent Condor population. And that reimbursement? Well, there was some sophisticated language in the bill that basically said that California would reimburse hunters IF CALIFORNIA COULD AFFORD IT...(Paraphrased) Guess what... California can't afford it... DUH!!! and thus we learn another term. Unintended consequences. Unintended, that is, as far as the Republicans were concerned... the stinky Dem's knew EXACTLY what they were doing... I once asked a man whittling on a piece what he was making and he told me....... I can't remember what it was, but I asked him how he did it... I was looking at some of the other carvings he had made... he explained that you just have to "see" what you want to create within the wood and simply remove the extra wood... I'm convinced that the socialist Dem's "see" what they want and are "simply removing the extra wood". What will happen with the Socialization of our Once Great Nation with this Bill as a stepping stone... what language is stuck into this thing that will give broad authority to a Supermajority of Dem's and an Obama appointed Cabinet?

I don't know, because they're only half through, but I'll bet the writings of Karl Marx paint a picture that's pretty close....

From Congressman John Campbell's Laptop to Yours
Friday, October 17th, 2008 Economic Update: Last week, I went to our local Ace Hardware store in Irvine to buy an extension cord. I was wearing a suit and tie. As I stood at the cash register to pay for my 15' indoor/ outdoor cord, the cashier, a man probably in his 60s, glances at my "uniform." Presuming that I am a businessman of some sort, he says "how's business.” Knowing full well the impact this crisis must be exacting on every kind of business, my thoughts turned to my former work as a car dealer and I replied "not good". I talk to enough car dealers these days to know that that was an understatement. "How's business here?" I asked. "It's not good anywhere," he said as he handed me my 46 cents change. "Everybody's just hunkering down," he went on to say. "If people don't come out and start to do things again, we're all going to be in trouble. Have a nice day." When the meltdown of the financial crisis starts to become a part of daily conversation at the checkout counter at Ace Hardware, it is clear that the problems are deep and wide. I want to give you an update today on what I know at this point and what I see happening next. Purchasing Bank Stock: The recent move by Treasury to purchase preferred stock in banks has been described as a "nationalization" of these banks. It is not. First of all, we gave the Treasury very broad authority in the Rescue bill to react to rapidly changing economic conditions. When we passed the bill 2 weeks ago, it was not anticipated that capital injections into banks would be necessary. It was thought that the liquidity provided by the asset purchases would be enough. But in that intervening 2 weeks, further deterioration of the credit markets worldwide necessitated this coordinated move with nearly every industrialized country on earth. The US government will buy newly issued preferred stock in these banks. The characteristics of this newly issued preferred stock will be identical in every bank. It will be non-voting preferred with a 5% dividend that increases to 9% over time. The government will also receive warrants of common stock in the amount of 15% of the preferred issue with a strike price equal to the common stock price on the day the preferred is bought. OK so I know that is complex but here's what it means: The stock is non-voting because we really don't want the Treasury department sitting on the board of every bank. That could move us towards nationalization. This avoids nationalization. The dividend rises so that the cost of keeping the preferred stock outstanding becomes prohibitive over time so the banks are encouraged to buy out the Federal government as soon as they can afford to. So, there are incentives in place to insure that this is not a permanent investment. The warrants give the taxpayer upside potential so that if the stock price of a bank goes up, the taxpayer gets to participate in that gain and make a profit. The program is optional so banks are not forced to participate. But many will because it will enable them to loan again and will secure their capital base in these troubled times. Only regulated banks or bank holding companies may utilize this program. So when will we know if this works? As you know, the credit markets are "frozen". To be more specific, banks worldwide stopped lending to each other in late September. That is simply because no bank trusts any other to pay them back right now. The first sign that we are starting to reverse the "freezing" will be when interbank lending starts again. The other major problem has been in the commercial paper market where major corporations go to borrow money to meet short term needs like inventory and payroll. Virtually no commercial paper from any corporation (no matter how strong or profitable) has traded since September 10th. That is why the Fed will begin buying new issues of commercial paper October 27th. When Money Market Funds (major purchasers of commercial paper) begin buying and trading this stuff again, that will be the second major sign that markets are heading back to normal. Although it appears that the fear that caused this "freezing" is not getting any worse, there has been no "thawing" as of the date of this missive. Home loans, car loans and business loans will continue to be hard to get until these two "freezes" reverse. But even if the "thawing" occurs and occurs fairly quickly, the shocks to the economy will be long and deep and broad. That's why I believe that we are looking at an extended period of reduced economic activity even if all of these actions work. The stock market (as measured by the Dow Jones and other indices) is a symptom of the problem but it is not the problem. It is reacting to the uncertainties of the credit markets and their impact on corporate earnings. Many corporations even in sectors which are not directly affected by the credit freeze are seeing reduced earnings as their borrowing costs increase. Others have more direct impacts from the lack of credit and a cautious consumer attitude. So what will Congress do next? We return to DC on November 17th. I will not be surprised if there is a request to increase the Treasury's financial authority above the amount previously authorized. When that amount was set, it was not anticipated that the government would be buying preferred stock in banks or purchasing commercial paper. But deteriorating conditions have necessitated both of those moves. If the actions taken by Treasury to that point have not begun the "thawing" that we discussed above, there might be more actions or more authority that gets debated. Furthermore, Speaker Pelosi and Senator Obama are now talking about an additional "Stimulus II" package of $300 billion in spending. This proposal is all pure spending which the taxpayer will never get back, unlike the Rescue Package. Furthermore, this is not a "garden variety" recession in which we find ourselves. If the credit markets stay frozen, all the government spending in the world will not get the economy moving. If they unfreeze, then a jump start of some sort might make some sense to try to accelerate recovery. But that time is clearly not now. The Rescue Bill expanded FDIC Insurance limits to $250,000 until 12/31/09. But the bill also changed the limitations on accounts. For example, a business account (except a sole proprietorship) now gets its own $250,000 limit even if the owners have money in the same bank. Here is a link to the new rules for how many $250,000 limits might be available. Click here. We are a long way from being through this. But at least conditions seem to have stopped getting worse for now. Until next time I remain respectfully, Congressman John Campbell	Quick Links Send a Reply How Can I Help You? Immigration Reform Student Center Press Room Green Eyeshade Blog If you think federal taxes are too high and the government spends too much of your money then you will love the blog I am writing. Read the Blog Email Updates Sign up to receive this periodic newsletter right in your inbox. Sign Up Multimedia Click here to see my recent interviews.
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It's all George's Fault

We hear it over and over again. It's George Bush's fault. It doesn't matter what it is. The recent rail crash in L.A. Bush's fault. Al Queda hates America. Bush's Fault. Outrageous Gas Prices. Definitely Bush's Fault. The current Financial Crisis. Well... Let's hear this one from the Speaker of the house, Nancy Pelosi.

"Madam Speaker, when was the last time someone asked you for $700 billion? It is a number that is staggering, but tells us only the costs of the Bush Administration's failed economic policies -- policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system. Democrats believe in the free market, which can and does create jobs, wealth, and capital, but left to its own devices it has created chaos.

That chaos is the dismal picture painted by Treasury Secretary Paulson and Federal Reserve Chairman Bernanke a week and a half ago in the Capitol. As they pointed out, we confront a crisis of historic magnitude that has the ability to do serious injury not simply to our economy, but to the American people: not just to Wall Street, but to everyday Americans on Main Street. It is our responsibility today, to help avert that catastrophic outcome. Let us be clear: This is a crisis caused on Wall Street. But it is a crisis that reaches to Main Street in every city and town of the United States."

Either Nancy Pelosi is an Idiot, or she believes you are an idiot. It might be both, I'm not sure, but here are the facts. The Bush Administration from almost the very beginning has been warning of this crisis.

Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone... Dems Ignored Warnings

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted.

Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.

The White House released this list of attempts by President Bush to reform Freddie Mae and Freddie Mac since he took office in 2001.
Unfortunately, Congress did not act on the president's warnings:

2001

April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

2002

May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003

January: Freddie Mac announces it has to restate financial results for the previous three years.

February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)

September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.

September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.

October: Fannie Mae discloses $1.2 billion accounting error.

November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)

2004

February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)

February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)

June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)

2005

April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)

2007

July: Two Bear Stearns hedge funds invested in mortgage securities collapse.

August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)

September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.

September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)

2008

January: Bank of America announces it will buy Countrywide.

January: Citigroup announces mortgage portfolio lost $18.1 billion in value.

February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

March: Bear Stearns announces it will sell itself to JPMorgan Chase.

March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)

"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)

"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

In 2005-- Senator John McCain partnered with three other Senate Republicans to reform the government’s involvement in lending.
Democrats blocked this reform, too.

More... Not only did democrats not act on these warnings but Barack Obama put one of the major Sub-Prime Slime players on his campaign as finance chairperson.


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Now Barney Frank (D- Massachusetts), Chairman of the House Financial Services Committee, blame the House Republicans for NOT passing the $700 Billion bailout plan. EVEN THOUGH 40% OF HOUSE DEMOCRATS VOTED "NO" ON IT. The Democratically led House of Representatives did not NEED a single Republican vote to pass this bill. Now that's what I call "Real Leadership". It's also interesting to note that Barney Frank was the lead opposition in 2003 to the Presidents Plan to reform Freddie and Fannie.

"In 2003, Frank opposed Bush administration and Congressional Republican efforts for the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. ^[28] Under the plan a new agency would have been created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that were the two largest players in the mortgage lending industry. "These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis," Frank said. He added, "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."^[29]" - Wikipedia

How did your Representative Vote? Find out at http://ap.google.com/article/ALeqM5iE1r_DuYH2j4rBy8JqBaVQ40MiOQD93GJ5H04 Mine vote "AYE" and I've already contacted him to express my EXTREME disappointment. You see, most americans are against this bailout. Reports of phone calls to representatives offices are as little as 300:1 against and as high as 1000:1 against. I applaud those representative who actually LISTENED to their constituents. As for my representative? I expect a very good answer or I'm going to exact a "Donald Trump"..... "YOUR FIRED"....

Is this the Black Horse of the apocolypse? I don't think so, unless I missed the White and Red Horses....

Jeff

FIRE, Ready, Aim

We're in pretty big trouble in my opinion... If I didn't have faith that all this is somehow in God's Grand Plan, I believe I'd be really worried. John McCain once again reminded me why I really wanted Mitt to win the nomination. First, he backtracked on his statement that the US had strong fundamentals. Then he blamed the current crisis on the SEC Chairman Christopher Cox. I know Chris Cox, he was my Congressman for many years and even had an office away from the office in Engineering firm I worked at many years ago. First mistake... John McCain said he would've fired Cox if he were president. The SEC Chairman, as I understand it, is appointed by the president and is confirmed by the Senate, much like a Supreme Court Justice, but this is for a term of 5 years. There are 5 commissioners on the SEC, each serving a 5 year term and no more than 3 can be of the same party. I don't believe a president CAN fire the SEC Chairman.... (duhhhh #1) Second mistake. It's not the SEC's Fault... The SEC is a regulatory agency, sorta like the FBI of the Stock Market. Does the FBI catch every single criminal? Stating that banks failing on the heels of the huge mortgage debacle is like saying it's George Bush's fault that a bunch of Psycho's flew jumbo jets into the World Trade Center. Uhhhh... wait... the left IS that delusional... but NOT OUR nominee for president. John McCain KNOWs where the fault lies, but he's too afraid to upset the "reach across the ailes" apple cart. He knew very clearly that this was coming. He stated it very plainly in 2005 when he co-sponsered a bill to reform Freddy-Mac and Fannie-Mae. A bill that was torpedoed by the Democrats.

"I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, 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." - John McCain 2005.

GSE stands for Government Sponsored Enterprise and as I understand it Freddy and Fanny had a market advantage by borrowing money from the government at a lower rate than everyone else so they could loan it out to lower income folks to buy houses. The problem is that these loans are also risky AND the Dems, especially our illustrious San Fran Nan (Nancy Pelosi) kept raising the limit on what Freddy and Fanny could loan, which means they were putting up more and more competition pressure on everyone else... What did everyone else do? They went riskier. AND they were also under pressure NOT to discriminate. Instead of focusing on managing risks, it seems, they were trying to play the game to compete with OUR GOVERNMENT and NOT paying attention to the bonehead who had no business buying a house. No Down, Zero Interest baloons are a ticking time bomb and everyone in the business knew it. Of course even sharks bite themselves in the middle of a feeding frenzy. But let's follow the money and see where some of these fingers SHOULD be pointing... Oh, by the way, these "Government Sponsored Enterprises" can make political contributions... how stoooopid is that? I never took an Ethics Class, but this sounds like a really, really good example of a conflict of interest.

Follow the Money:

Since 1989, the top 20 list of Congress (house and senate) that Freddie and Fannie contributed to, include some interesting names. Barrack Obama came in 2nd, even though he's only been in Congress a few years, Hillary Clinton, Nancy Pelosi, Harry Reid and John Kerry. Very interesting. WHY DOESN'T MCCAIN MENTION THIS????? Of course, when asked, Nancy Pelosi said democrats had absolutely no responsibility for any of this and pointed the finger at the President. If I added up all the things that President Bush is responsible for, I'd think he had power comparable to Superman.

So anyway... I'm reminded of a Bug's Bunny cartoon. I can't remember what the context was or what the punchline was, but at the end of the cartoon, we see Bugs in an army helmet standing on an assembly line with artillery shells filing by. He had a large mallet and he would shut his eyes and bang the end of the artillery shell with the mallet. When it didn't explode, he would write "Dud" on it. That will be the feeling I will have when I check off "McCain/Palin" on my ballot in a few short weeks. I really like the VP, but the real vote will be for a man that, although he holds all the right positions on the issues I really care about, he is often WAY too eager to compromise on other really important things... things that affect me and my family... I worry about the compromises he will make as president with those on the other side of the ocean.

The scene on election day, for me, will be one of gritting teeth and muttering under my breath, over and over....

"An imperfect republican is better than a perfect socialist"

Jeff

UPDATE: Franklin Raines, former Clinton administration budget director; James Johnson, former aide to Democratic Vice President Walter Mondale; and Jamie Gorelick, former Clinton administration deputy attorney general have all served as Executives for Fannie Mae. Johnson earned $21 million in just his last year serving as Fannie Mae CEO from 1991 to 1998; Raines earned $90 million in his five years as Fannie Mae CEO, from 1999 to 2004; and Gorelick earned an estimated $26 million serving as vice chair of Fannie Mae from 1998 to 2003.

Remember the "Gorelick wall"? google it... it's one of the reasons, I believe, we didn't have a clue that terrorists were about to strike on 9/11.

Currently Raines currently advises Obama on housing policy.

Johnson was appointed to head Obama's vice presidential selection committee, until a controversy concerning an alleged $7 millions in questionable real estate loans he received on favorable terms from failed sub-prime mortgage lender Countrywide Financial surfaced and forced him to step down.

A panel chaired by Elena Kagan, dean and professor of law at Harvard Law School, speculated at the June two-day meeting of the American Constitution Society that Gorelick was a possible attorney general cabinet appointment if Obama should be elected president.


see the details here: http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=75586

The Guilt of Silence

A letter to the Editor by Aaron Murphy... (my bro)

The Guilt of Silence

On April 11th 1944, U.S. troops liberated a German concentration camp called Buchenwald. Four days later, our troops gathered over a thousand local German citizens to tour the camp. The people of Buchenwald held handkerchiefs to their faces as they marched past piles of rotting corpses, rows of inhuman bunkhouses, and ovens.
Similar human extermination camps were discovered with names like Auschwitz Birkenau, Belzec, Chelmno, Janowska, Majdanek, Sobibor, Treblinka. When the war came to an end, over six million Jews, gypsies, and other defenseless people were slaughtered. The frightening thing is that most of this killing occurred under the nose of ordinary people like you and me. That is why our troops had to foresight to force the local citizens to view the results of their total indifference to the massacre of the defenseless. We don’t usually think of history as being shaped by silence, but, as English philosopher Edmund Burke said, ‘The only thing necessary for the triumph [of evil] is for good men to do nothing.’
Some people may say that it was cruel to force the citizens of that community to see the horrors of these camps. I say it was the best in humanity to force us to look inside ourselves in an effort to determine why we ignored the signs of evil.
Here is a look inside the extermination ovens in our country. From 1973 through 2005, more than 45 million legal abortions occurred. The vast majority of these abortions were conducted as a form of birth control. We are systematically exterminating the most innocent and defenseless among us. The remains of our young are going up in smoke rising from furnaces designed to destroy medical waste. When our Supreme Court validated the destruction of our young in 1973 case of Roe v. Wade, our mindset began to change. Today, some people believe it is alright to kill a baby moments before a normal birth. Certain politicians even resist measures to protect children who happen to live through the abortion process.
To make it seem OK, the Nazis painted the Jews as inhuman. Citizens who saw the atrocities and did nothing, took refuge from their guilt by believing the deception to be truth. Today, we attempt to assuage our consciences by calling a baby, a “fetus” or an “embryo,” avoiding the term “baby.”
Enough! The time has come to march by our holocaust. Let us examine the guilt of silence within our hearts and minds, and for the sake of us all, let’s stop the killing.

What does the Economy, Baseball and the Death Penalty have in common?

This is an extremely insightful article by Walter Williams and why all the main liberal ideas are dead wrong....

By taking a couple of courses in economic theory, we could immunize ourselves from nonsense spouted by politicians and pundits, but in the meantime check out Professor John R. Lott's "Freedomnomics: Why the Free Market Works."

His first chapter is "Are You Being Ripped Off?" It addresses myths about predation where it's sometimes alleged that corporations will charge below-cost prices to bankrupt their rivals and then charge unconscionable prices. There's little or no evidence that corporations would choose predation as strategy; there are too many pitfalls. A major one is that in order to recoup losses from charging low prices to bankrupt rivals, the predator would later have to charge higher-than-normal prices. That would attract new rivals who might have purchased the bankrupt assets of the predator's prey and be able to undercut the predator's prices.

A far more successful means to monopoly wealth is for businesses to enlist the aid of congressmen to form a collusion. Classic examples are the dairy industry, which uses the U.S. Department of Agriculture's Federal Milk Marketing Orders to set statutory minimum prices, or the Gasoline Retailers Association using state law to do the same or the sugar industry using Congress to establish quotas on foreign sugar imports.

Professor Lott's chapter "Government as Nirvana" highlights examples of government predation. When the U.S. Postal Service raised the price of first-class mail in 1999, it reduced its price for domestic overnight express mail from $15 to $13.70, even though it was losing money at $15. The Postal Service was facing stiff competition from FedEx and UPS overnight services and wanted to keep its market share.

During the 1980s, private meteorology firms saw a chance to make money by selling television stations specialized forecasts that weren't provided by the National Weather Service. The National Weather Service started providing television stations the same services for free, thus driving private forecasting companies out of business.

Predation is observed in higher education. UCLA is both Lott's and my alma mater. It spends $40,000 per student but charges $6,522 tuition for in-state students. Such below-cost pricing gives public universities a significant competitive advantage over private universities. State universities have acquired many formerly private universities after driving, or threatening to drive, them out of business. Lott gives examples of George Mason University School of Law, University of Buffalo, University of Houston and University of Pittsburgh. In the case of University of Buffalo, the State University of New York reportedly threatened to open a public university across the street unless the University of Buffalo joined the state system.

The U.S. Department of Justice would go after a private business using similar predatory practices of intimidating its rivals and selling goods and services below cost. The U.S. Department of Commerce sanctions foreign companies accused of selling goods in the U.S. below cost with anti-dumping duties. If selling goods below cost is seen as unfair in the international arena, why is it not when it's done by government entities?

Lott's "Crime and Punishment" chapter has a lot of interesting tidbits. It starts off stating a fundamental principle of economics: the higher the cost of something, the less people will do of it. To demonstrate the generality of this principle, Lott says that when the number of referees were increased from two to three in the Atlantic Coast Basketball Conference, fouls fell by 34 percent; fouling became more costly. The American League has more hit batsmen than the National League, but the difference only appeared after 1973 when the American League removed its pitchers from the batting lineup in favor of designated hitters. Not being afraid of being hit themselves, American League pitchers threw more bean balls; bean balls became cheaper. The same principle applies to the U.S. crime rate that fell after the death penalty was reinstated, more prisons were built and concealed-weapon carry laws were enacted. The higher the cost of a crime, the less people will do of it.

"Firearms stand next in importance to the Constitution itself. They are the people's liberty teeth keystone... the rifle and the pistol are equally indispensable... more than 99% of them by their silence indicate that they are in safe and sane hands. The very atmosphere of firearms everywhere restrains evil interference. When firearms go, all goes, we need them every hour." George Washington, Address to 1st session of Congress

That's my Rant from behind the Iron Curtain Kaliforniastan.... And B.O./J.B. will make sure the REST of the U.S. is just like my "Blue" State... should be "red"... Another Media attempt to dull the senses of the masses.

Excellent Reasons to Vote for McCain

CORRECTION:

A lengthy e-mail endorsing John McCain for president is now commonly attributed to Thomas Sowell, but it was not written by him. (Mr. Sowell has penned several "Random Thoughts" columns over the last year, but none of them was an endorsement of John McCain, and none of them was nearly as long as the item cited here.) This e-mail is an item of unknown authorship which was originally simply credited as the work of "Anonymous" or "A Concerned American" before someone tacked on a preface that mistakenly attributed it to Thomas Sowell. - snopes.com

Thanks Kirk for the catch... only "progressives" would attribute good points to famous people to give it credibility. I think the points are valid and stand on their own and don't need endorsements. Apparently someone thought that it needed the endorsement of a black columnist. I hope to be colorblind on this issue and don't need black, white, purple or green opinions, only intellect and common sense.... I believe that is what Dr. Martin Luther King sermons were all about.


The article below was written by syndicated columnist, Thomas Sowell, a black man. He wrote it in a humorous way this past week in a column titled 'Random Thoughts' and published it in newspapers nationally, so maybe you've already seen it. If not, be my guest:



Senator John McCain could never convince me to vote for him. Only Hillary Clinton or Barack Obama can cause me to vote for McCain. After long and serious thought, I have decided to endorse Senator John McCain for President.

I have always voted for the person and have not voted for anyone because some political party was telling me who I should vote for. We all know the choices by now and, that said, I do believe that the process of selecting a chief executive is deeply flawed. The words 'money' and 'special interests' come to mind, among many others.

Here's the way I see it:

Barack Obama, you are a fine public speaker. You are also an extremely liberal Senator from the State of Illinois, which has a long and rich history of political corruption of the first magnitude. You are indeed a child of that system.

You have finally insulted my intelligence far beyond my capacity to tolerate your insults. It has nothing at all to do with your skin color. As a matter of fact, it would be so COOL to finally have an African-American for President. What a great statement that would be to the entire world that we are indeed the greatest country on earth!

But, unfortunately, General Colin Powell is not running, and YOU are NOT the man for this job !

Barack baby, you want me to believe that you have never heard the sermons of your own pastor, the Right Reverend 'God Damn America' Jeremiah Wright. It is a matter of record that this has been your church for over 20 years. It is a matter of record that you were married there by this very pastor, and that your children were baptized there.

The good Reverend saw fit to visit Khadafy in Libya with you and to give a lifetime achievement award to Louis Farrakhan, of all people.

We have all now seen excerpts of his sermons all over the airwaves by now. And you have publicly stated that this man IS your 'spiritual mentor.'

BUT, your pastor is NOT the reason I am NOT voting for you. His words were disturbing enough, but it is your own HUGE church congregation, seen jumping, hooting and howling to his words in the background that disturb me the most. And please don't tell me you attended church there and never once heard a 'discouraging word' in the 20 years you attended there. Don't tell me, that in addition to the good reverend, that you are now not having anything to do with all those other people seen hooting and howling out in the audience in the background of his fiery tirades. Even Oprah Winfrey got disgusted and walked out on your campaign. I am no Oprah fan, but still she did the right thing.

Now you look me in the eye and ask me to believe that you never heard such language in all the years you attended there! This is like me telling you that I attended dozens of Klan rallies and never once heard the 'N' word. Yep. And Bill Clinton 'did not inhale'.

Yes, Mr. Obama, we all have friends who have said stupid things that embarrassed us, but NOW you have asked me to believe something that is so incredibly stupid that you are telling me that I am just stupid enough to believe you. THAT is the main reason that I will never vote for you.

I am deeply sorry, that in a country teeming with enormously talented African Americans who would make a good President, that the political system has chosen YOU. You are a pathetic and plastic excuse for an American, who will not even salute the Flag during the Pledge of Allegiance. God forbid you ever get near the Oval Office.

Which leaves us with Senator John McCain.

John, you are a flawed man. You are a bit old, a bit looney, and you have a notoriously bad temper. This perfectly qualifies you, in my humble opinion, to lead us for the next eight years. I WANT your trembling hand on the nuclear button.

Think about it.

We have Kim Jong IL, Chavez and Ahmadenijad all running around like lunatics, threatening America and threatening to plunge the world into nuclear Armageddon. We have Putin and the Chinese blustering and rattling their sabers at us. I want John McCain in the Oval Office and I want him to be really ticked off at all these other nut jobs around the planet.

John, once you are elected, I want you to go into the Oval Office and throw one of your perfect FITS. Jump up and down and throw something through a plate glass window. Rip the drapes down and foam at the mouth a bit. And I want the whole thing on camera so that Ahmadinejad can see it. I want ALL of these 'world leaders' to lay awake at night and to break out in a cold sweat every time they think of messing with the United States of America.

I want the nuclear button sitting right next to the alarm clock on your night stand. I want pictures of this to be sent to Iran, Russia, China,Venezuela, Cuba, Libya, Syria, Pakistan, and those other dopes in the sheets, the Saudis.

On the domestic front, poor John did try and reach across the aisle to the opposition in a desperate effort to compromise and to get the Congress to do something. You may not agree with his efforts, but at least he TRIED. For all his efforts, all he got handed to him was his head in a basket. The liberals are ticked at him and the conservatives are ticked at him. Just my kinda guy.

I predict that John will select Senator Joe Lieberman as his running mate. Good choice. I want a Jew whose memory of the Holocaust is still fresh in his mind and who is royally ticked off at all of these towel-headed morons in the Middle East to be the next in line if something should happen to John. Shalom, Vice President Joe. One heartbeat from the Oval Office.

Finally. John McCain knows on a most personal level what it is to suffer horrible torture for years and to see others die, right in front of you, for their love of America. When you ask him about it, he will tell you that what he did was 'nothing special. ' Even more incredibly, he states that ANY American who truly loves his country would do exactly the same as he did in that situation. You and I will have a hard time believing that, but the real point is that John McCain believes that about the 'average American,' and that, dear friends and neighbors, is why I will cast my one poor ballot for on election day for John McCain -- warts and all.'

Blessed are those who give without remembering....and receive without forgetting.

Obama - Change you can believe in!!!

Jerome Corsi's new book is out and is now #1 on the NY Times best seller list. The book is "Obama Nation - Leftist Politics and the Cult of Personality". If you don't know Jerome Corsi, he is an investigative reporter for WorldnetDaily.com and was co-author of the Book "Unfit for Command" that exposed Senator Kerry. With over 600 references, the "Obama Nation" seems to be an exhaustive expose' on the life and influences of Barak Obama. The political machine of Obama was quick to publish a 40 page response to the book. In the very first sentence of the response, they pull out the race card by calling Corsi a Bigot and fail to provide any basis for the label. Interestingly, leafing through the response, it seems they spend a great deal of time smearing Corsi. The Facts they dispute seem to be trivial innaccuracies without answering the the most alarming points in "Obama Nation" and the sources cited in the response are sources like the LA Times, Chicago Sun Tribune, New York Times and other, obviously LEFT sources. One fact that was actually CONFIRMED in the response is that the mysterious "Frank" cited as a friend and adviser by Democratic president contender Barack Obama while he was growing up in Hawaii has been identified as Frank Marshall Davis, a member of the old Moscow-controlled Communist Party USA. I have no doubts that Dr. Jerome Corsi is "Right leaning", but he doesn't appear to be an apologist for the right and I don't particuarly think that leaning "Right" is a bad thing. Of course many of our friends on the left must be ashamed of leaning "Left" because it seems they spend a great deal of time trying to convince us that they are NOT leaning in any direction.

The reasons listed in BO's response for calling Dr. Corsi a bigot is as follows:

Dr. Corsi attacks the Catholics and the Pope
Dr. Corsi attacks Islam
Dr. Corsi attacks Kerry
Dr. Corsi attacks Clinton...