No Runny Eggs

The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Archive for posts by Shoebox.

November 13, 2008

What Is Paulson Smoking?

by @ 9:33. Filed under Economy, Politics - National.

Dad29’s comment on my Smith Barney post reminded me of a ridiculous  statement in Paulson’s written comments to Congress:

We are looking at ways to possibly use the TARP to encourage private investors to come back to this troubled market, by providing them access to federal financing while protecting the taxpayers’ investment. By doing so, we can lower costs and increase credit availability for consumers. Addressing the needs of the securitization sector will help get lending going again, helping consumers and supporting the U.S. economy. While this securitization effort is targeted at consumer financing, the program we are evaluating may also be used to support new commercial and residential mortgage-backed securities lending.   (emphasis mine)

In regular people speak, Paulson is suggesting that he wants to have part of the TARP funds focused on increasing consumer credit.   Note that he isn’t referring to mortgages because he talks about that seperately at the end of the quote.  

OK, I guess?

Hey, wait!   Haven’t I been reading articles about how over extended the consumer is on credit?   Haven’t I also been reading that unemployment is rising rapidly and many people are concerned about the security of their jobs?   I think I also remember reading that the consumers have seriously cut back on spending because of their concern about future income.

Detroit has quit selling cars.   Their lack of sales is not due to their high employment costs (although that may contribute).   Thier lack of sales is not due to foreign makers having (at least perceived) better quality and design (I’m pretty happy with my US vehicles).   Lastly, their lack of sales are due to a lack of credit (although it may hurt a bit)   No, the fact that Detroit is trucking in mothballs by the ton is because the consumer has quit buying because they are finally concerned about managing the financial house.   And it’s about time!

Consumer lending still exists.   Loans are available for people who qualify for them.   The only loans that have been cut back are the ones, similar to the housing mess, that you could get with no proof of income or ability to repay.   Those loans have dried up and they should.

Unfortunately, our economy had been living on mortgages, car and credit loans that were far beyond the means of many of their owners to pay back.   There is no short order fix for what we are experiencing.   They economy needs to reset to levels that are sustainable and not the ficticious “we never have to pay it back,” levels.

Hank Paulson needs to put his monopoly money back in his pocket.   None of what he is doing is going to speed or alter the resetting process.   Pushing more money into the economy at this time will only set us up for more pain once things settle….get ready for inflation like it’s 1979!

When Smith Barney Talks, People Listen!

by @ 5:47. Filed under Miscellaneous.

Or at least that’s what used to be said.

Today, the phrase is more like, “When Hank Paulson talks, the market listens!”

Hank Paulson went to Capitol Hill to give an update on how he’s been spending the TARP money.   The market went from a down day, to one of those that gets posted on the top end of the history charts.   Unfortunately, this is something we’ve become accustomed to when Paulson speaks.  

What did Paulson tell Congress?

  1. We didn’t know what we were doing.
  2. We don’t know what we’re doing now.
  3. We aren’t sure what we’ll do in the future.
  4. Trust me, I’m spending the money well!

You doubt me?

Remember when it was “urgent” that we get a bailout bill?   So urgent that a mere 10 pages, double spaced, was enough for Paulson to get $700 billion? At that time Paulson was urging passage of the bill so that he could go out and buy toxic debt, CDOs.   Remember all the questions about how the $700 billion was arrived at and Paulson’s kind of answer that it was 5% of outstanding debt?   Geez, as late as October 24th, Dana Perino  was making excuses for why Paulson hadn’t implemented his CDO buyout with, “it’s complicated.”   Yeah, well, that was then:

"Over these past weeks we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets," Paulson said in a speech today. "Our assessment at this time is that this is not the most effective way to use TARP [Troubled Asset Relief Program] funds."

Instead of doing what he said he was going to do with the money, Paulson decided that direct infusions of capital into financial institutions was the way to go.   Paulson has been purchasing non voting stock or warrants for stock in various financial institutions.   Even though some have questioned whether the Treasury has been getting good value for their investments, Paulson has continued…up until now.  

After about $200 billion and about six weeks, Paulson has figured out, along with the Congressional buffoons, that if you put money into entities with “no strings attached,” that those entities will use the funds in their own best interests.   Funny thing is that the entity’s “best interest” hasn’t been aligning with what Congress and Paulson have thought the “best interest” was. This has made Congress mad (I don’t know why. After all, they were the ones that wrote the bill that was specifically vague in what Paulson could do with the money. If they didn’t care enough to put the time in to provide some guidance, why are they surprised when the actions are following to a “T” their lack of direction!) and has put just a hint of yolk on Paulson’s face.

In his written report and verbal comments, Paulson now wants to try a third path.   Paulson now believes that Treasury should use a combination of approaches.   He still believes that some direct cash infusions will occur.   Additionally, Paulson wants to do a matching fund approach where Treasury would match an amount raised through private equity (What have we got, some kind of a share-a-thon going on?)   Finally, Paulson told Congress that he didn’t want to be limited to just banks:

“We are carefully evaluating programs which would further leverage the impact of a TARP investment by attracting private capital, potentially through matching investments,” he said. “In developing a potential matching program, we will also consider capital needs of non-bank financial institutions not eligible for the current capital program; broadening access in this way would bring both benefits and  challenges.”

I would read that as “consumer loans,” most likely auto loans.

A couple of weeks back I reported on a study done  by the Federal Reserve Bank of Minneapolis.   They looked at the initial reasons that Paulson gave Congress that the bail out was needed.   The study concluded that the issues that Paulson claimed he was attacking, really weren’t impacting the economy.   The combination of that report with Paulson’s helter skeltering from one approach to the next, leaves me wondering whether Paulson knows what the problem is or how to actually affect it.

If only Smith Barney were still alive.   Maybe he’d have the answers.

November 12, 2008

You Just Stay Classy, Barack

by @ 5:41. Filed under Politics - National.

Running on a promise of “Hope and Change” and promising that politics in his administration would be different, Barack Obama was voted into office.   Yesterday, following his first trip to the White House, Obama and his team, showed just how much was going to change and how different it would be.

Following what was their first fact to face conversation, between a very gracious current President and the holder of the “Office of the President Elect,” a conversation that purposely invited no staff of either man’s, the content of the conversation was leaked.   It wasn’t leaked by the White House or people affiliated with the gracious host.   The information was leaked by “anonymous aides” of the individual who is not yet President but has been the Presumptuous President for over a year.

Why is it that when I think of Obama and his staff moving into the White House I get a mental picture of college freshman  arriving at  the college campus and charging towards the frat house awaiting the first of their many anticipated parties.   Like the college freshman, I hope Obama and his staff figure out that there’s more to being in the White House than  leaks, special favors and other attempts  to make themselves look good.   Eventually, like college freshman, they’ll learn that there is a lot of  day in, day out work that needs to be done.   Work,  without which, they’ll fail.

No Shit Sherlock!

by @ 5:01. Filed under Politics - National.

Somebody better get this news flash to the various Republican organizations and their leaders!

So Karl Rove has finally figured out that you can’t play defense and take body blows for 10 rounds and expect to win!   For as smart as Rove was at orchestrating two elections, this was one topic that he sure flunked!

You can bet Obama won’t be making the same mistakes!

November 11, 2008

Jersey City Councilman Responds to Voters

by @ 5:47. Filed under Miscellaneous.

A Democrat Councilman from Jersey City urinated on voters at a Grateful Dead Concert:

The New Jersey councilman who allegedly  urinated on a crowd of concertgoers from the balcony of a Washington, D.C. nightclub swore off booze on Sunday — two days after he was busted for the embarrassing stunt.

OK, well, maybe not all of the people he peed on were voters from his district.   Then again, like a four year old at a urinal, I’m not sure Democrats are feeling the need to be too careful about who they piss on these days!

So You Didn’t Like Palin?

For the two of you who didn’t like Palin and thought that one of the McCain look-a-likes would have been a better choice, take a look at one of your other options:

From the “Agency who can not be named,” Pawlenty jobs plan has green tint

Yup, that’s right, one of McCain’s short listers, one of the guys who the MSM were pining for wants to move forward promoting a green jobs agenda!

Minnesota will likely face a $2 – $3 Billion dollar budget shortfall this year and Pawlenty is proposing flushing several million down the drain in an attempt to create “green energy” jobs in one of the highest taxed states in the nation! Has he learned nothing from shoving a bunch of state money into the ethanol industry only to find that the industry has no means to self sustain?

Minnesota is looking less and less like the Midwest and more and more like an End of the Great Lakes version of Michigan!

In Case You Missed It

by @ 5:32. Filed under Economy, Politics - National.

U1SAToday had an article last week showing the return on investment for the Nation’s largest financial institutions lobby efforts.

For the minor investment of just over $30 million, a group of 9 banks and investment firms garnered almost $163 billion of funding from the Treasury.   That’s a return of over 5,400 times the investment!  

PNC Bank appears to have the best negotiators.   For a mere $320,000, PNC received $7.7 billion, an amazing 24,000 times return on investment.   At the other end was Goldman Sachs who got a return of less than 2,400 times their $4.2 million dollars of lobbying.

If only we all had gotten the minimum 2,400 times return on the money we had invested as of the end of September.   I’m pretty sure most of us, well, me for sure, wouldn’t be caring much about all the other nonsense the Treasury was doing.   Heck, if I had 2,400 times my September balance, I might have voted to raise taxes on myself too!

November 10, 2008

Going “Old Testament” On You

by @ 5:59. Filed under Politics - National.

There’s an old saying that says “If you don’t learn history, you’re destined to repeat it.” That saying perfectly states my final thoughts on the 2008 Presidential election.

First, I want to clearly state that while I am an Evangelical Christian, I am not like Pat Robertson or Jerry Falwell where I believe you can discern God’s will or see God’s hand in every event that occurs.

Ok, going Old Testament.

After the Israelites escaped from Egypt, the were lead by Moses and then Joshua. After Joshua, a series of “Judges” ruled/lead the nation, or parts of Israel.

During the time of the Judges we find that Israel’s relationship with God had become distant. As generations passed, the new generations didn’t have the benefit of first hand knowledge of God’s works in their lives as the generation of the Exodus had had.   As a result, many of the Israelite tribes took to worshiping Baal during this period.

It’s clear throughout the book of Judges that God no longer paved the way for the Israelites as a result of their distance. “If it feels good, do it,” was the guiding principle for the Israelites during this time. In fact, the last line in Judges is:

Everyone did what was right in his own eyes.

As things continued to deteriorate for Israel and a civil war took place, the people of Israel desired change from what they were experiencing.   Rather than looking back to see what had worked previously, they looked around themselves to other nations and said “we should be more like them!”   The result was a request to God via Samuel, to request a king to lead them.

God understood that the reason the Israelites were having challenges had nothing to do with the type of leadership they had.   He knew that the issue was one of self importance, arrogance and disobeying of God’s word.  

In  1 Samuel 8, God attempted to warn the Israelites that there would be consequences of their  desire:      

17He will take the tenth of your flocks, and you shall be his slaves. 18And in that day you will cry out because of your king, whom you have chosen for yourselves,(M) but the LORD will not answer you in that day.”The LORD Grants Israel’s Request

Unfortunately, the Israelites didn’t heed God’s advice and demanded a king:

      19But the people refused to obey the voice of Samuel. And they said, “No! But there shall be a king over us, 20(N) that we also may be like all the nations, and that our king may judge us and go out before us and fight our battles.” 21And when Samuel had heard all the words of the people, he repeated them in the ears of the LORD. 22And the LORD said to Samuel,(O) “Obey their voice and make them a king.”

So, God gave them a king in 1 Samuel 9, Saul, and he turned out to be as bad as God had warned and worse.

It didn’t take long for the Israelites to realize they had made a mistake.   Only a couple of chapters in the Bible, 1 Samuel 19,  and according to some scholars, probably a couple of years in real life, the Israelites were asking for forgiveness for their demand of God for change:

19And all the people said to Samuel,(AM) “Pray for your servants to the LORD your God, that we may not die, for we have added to all our sins this evil, to ask for ourselves a king.”

So why the history lesson?

Even without tying in issues of faith, the parallels between the Israelites and the US are stark.   Like the Israelites, the US has moved from a period of steady prosperity into a time of trouble and uncertainty.   Also like the Israelites, rather than looking back and taking responsibility for the actions that have gotten us here, we’ve assumed that the right answer for our troubles is “change” and “to look more like other nations.”   Finally, like the Israelites, we have concluded, even though every sign tells us otherwise, that wholesale change of our method of governance is the answer.

The Israelites went through some tough times after they got Saul as their king.   While Saul had an early successes, he quickly turned from God and lost His favor.   God then instructed Samuel to anoint David as king but it would be years before David finally took the throne.

While I expect us to go through some difficult times as a result of our recent political decisions, I remain hopeful.   Like the Israelites, I expect the citizens of the US to eventually see the errors of their selections.   Also, unlike Israel, we won’t have to wait an unknown time frame until the death of a king to make a change.   We’ll be able to make a change in two or four years.

Saul’s pride and jealousy created a schism within Israel at the end of his reign.   Rather than a peaceful transition to David, the king who God anointed, there was fighting between the families and followers of David and Saul.   Eventually, David won but not until there was great bloodshed within Israel.

Like Saul, it’s apparent that Barack Obama has enormous pride.   I’m not going to suggest that should  Obama or the Dems lose an election, that we would not have a peaceful transition.   I am going to suggest that the pride and ego I see in Obama, Reid and Pelosi leaves me concerned that they will attempt to impact how future elections occur.   Oh, I don’t mean not having elections.   Re instituting the “Fairness Act” and implementing the union card check program are two ways to tilt future elections in the Dem’s favor.

I certainly don’t have a crystal ball to see the future.   I do however, believe we are seeing a similar human behavior pattern (and just maybe a pattern of God) that is similar to the Israelites of old.   I guess the way to handle this for the near term is the same way that Samuel dealt with the situation with Saul.   When the Israelites recognized that Saul was a mistake, they confessed their sin to Samuel and asked him to pray for them.   In 1 Samuel 12, Samuel replied:

23Moreover, as for me, far be it from me that I should sin against the LORD by ceasing(AT) to pray for you.

I’ll pray for this country’s citizens and its leadership.

So You Want To Run A Moderate?

by @ 5:22. Filed under Miscellaneous.

After a quick look at the ’08 and ’04 exit polls, I wrote that one of the things we learned from the ’08 election was:

Working from your base to the middle works better than working from the middle towards your base – Obama received support from 89% of self ascribed "liberals", compared to Kerry getting 85% of the same group.   McCain only received 78% of the "conservative" vote while Bush received 84% of the same group.   Of course those who are moderates broke for Obama 60% to 39%.   It’s clear from this that while Obama held his base, McCain never fully recovered from his early pokes in the conservative eyes.

After looking over some past exit polls, I don’t think that statement quite covers it.

In this election we had arguably, the most liberal candidate ever fielded by the Democrats run against one of, if not the, most moderate Republican (OK, we can argue about Ford, maybe even GHW Bush.)   Additionally, while the moderate tried to cloak himself with conservatism, the liberal made no such attempt and ran a campaign that was unashamedly left.

The notion of running a Moderate for the Republican candidate was cobbled from a series of theories.  

First, the Republican brand had been decimated through the combination of President Bush’s disappearing approval ratings and the electorates mistaken notion that the Democrats didn’t have a hand in the existing economic mess.  

Second, the Republican leadership is at best, moderate.   They believe they reflect their party and the broader electorate.   Remember the guffawing from Peggy Noonan and Mike Murphy  when, caught via a “hot mike”  were heard ridiculing the choice of Sarah Palin because her choice by McCain was “cynical.”   Their point was that no one in the Republican party (read that leadership) believes what Palin believes.   Party Leaders, moderate and believing to be reflective of the electorate, they wanted one of their own.

Finally, there was a belief that a moderate would be able to gain votes from a broader electorate spectrum.   After all, where else could the conservatives go, the liberals were obviously going for the Dems so the fight was going to be for moderates.   The candidate who gained a bigger share of support from the moderates would surely win this election.

So with all that rationale for running a moderate, how did it work out?

Not well!

Yes, McCain loss but that’s not the take away from this election.   How he lost is the lesson.

I took a look at the exit polls for the last 32 years.   They started with Jimmy Carter beating Gerald Ford and went through the most recent election. I noticed a few things that debunks the “we win with moderates” thinking.

 

First, there are some who believe that we have become an electorate that is at least more moderate if not sliding to the liberal side. While there is some movement from year to year, you’ll notice that for the most part, the electorate, at least as they describe themselves, looks pretty much today as it did in 1976. In 1976, the electorate was 20%, 48% and 31% Liberal, Moderate and Conservative respectively. In 2008 the same split was 22%, 44% and 34%. If anything, the moderates have become slightly smaller as the electorate becomes a bit more polarized.

Second, note that with the exception of Reagan’s first term against Carter, no Republican has won without getting at least 80% of the Conservative vote. Reagan’s shortage of Conservative support can be attributed to some being split off to Anderson along with the fact that the election of that year had the smallest percentage of the electorate describing themselves as Conservative.   At any rate, it seems pretty clear that if a Republican doesn’t hold 80% of thieir base, they have little if any chance to win the election.   Interestingly, the same parallel does not hold for Democrats.   Democrats can win with less than 80% of the liberal vote, note Carter and Clinton’s first runs.   Only in Clinton’s second run, and now Barack Obama, have liberals supported the Democrat candidate with greater than 80%.

Finally, let’s look at those moderates.   Note that since 1976, Only Reagan’s landslide victory of 1984 garnered greater than 50% of the moderate support for Republicans.   Of course, Reagan also achieved a modern high of 29% amongst liberals.   Other than that instance, no Republican has gained greater than 50% of the moderate’s support.   More typical has been the Bush victories where mid 40% of the moderates supported the Republican.

OK, so some moderate support is required to win.   Was McCain’s strategy of courting moderates successful?   Obviously based on the end results, no.   However, I believe more than “No” we can say “Hell, no!”   Note that Obama has been the only candidate in modern times to gain 60% of the moderate support…and as I mentioned early in this post, he ran as an unashamed liberal!   It’s obvious that for his efforts, McCain made no inroads of import to the moderate electorate.

It’s clear that McCain’s desire to court the moderates failed.   In fact, his focus on the moderates cost him his base and doomed his election

Hope and Change for 2010?

by @ 5:09. Filed under Politics - National.

Gingrich: I’m Ready to Serve as GOP Chairman

 

I’d have to check the archives but the only position, and I’m not even sure that it was that, that I disagree with him on was his commercials for global warming.

Newt has a solid finger on the pulse of the American public and the conservative core. While there may be others, Newt is the only person I know for certain who can take conservative principles and explain their benefit and purpose to the general public.

November 7, 2008

Now I’m Going to Cry

First we had Chris Matthews with tingles in his leg and now we’ve got Harry Smith crying as he purges his white guilt.

Being a male of German descent, I don’t relate to these public displays of emotion. Can we please just get back to our regular doses of excessive fawning?

November 6, 2008

What Did We Learn?

by @ 5:47. Filed under Politics - National.

So it’s done, or mostly so.   There are still a couple of Senate races yet to be officially determined (yes, one of them includes Al Franken and yes I live in MN…sigh) but in general, we’re done.   Now that I’ve had about 22 hours to decompress it’s probably a good time, before I completely lose the “sense of the moment” to look at what we learned in this election cycle.   Most of this is gleaned from the exit polling done by CNN:

  1. Contrary to Obama’s protests, the election was  decided on  race – While he did swing about 2.5M votes of caucasians, Obama’s win came from non caucasian voters.   We knew about the African American vote.   Only 4% of African Americans voted for McCain.   Traditionally, 10% to 12% voted Republican.   However, Latinos also moved 14 points towards Obama versus what Kerry was able to garner in ’04
  2. The PUMAs were a work of fiction – Oh I’m sure there were some and I’m sure they voted for McCain.   However, Bush got 11% of the Democrat vote in ’04 and McCain got just 10%.   Those numbers tell me that the PUMAs looked no different than your normal Dem voter.   I suppose it’s possible that McCain may have had an even smaller Dem vote without their support.   However, I’ve seen other result data that tends to corroborate the lack of a PUMA influence.
  3. Working from your base to the middle works better than working from the middle towards your base – Obama received support from 89% of self ascribed “liberals”, compared to Kerry getting 85% of the same group.   McCain only received 78% of the “conservative” vote while Bush received 84% of the same group.   Of course those who are moderates broke for Obama 60% to 39%.   It’s clear from this that while Obama held his base, McCain never fully recovered from his early pokes in the conservative eyes.
  4. No “event” cost McCain the election – Regardless of when they decided who they were going to vote for, with the exception of the last week, McCain was never closer than a 5% deficit.    This is interesting in that the talk of how the economic issues impacted McCain doesn’t seem to hold water.   What this also shows is that the election results were  about broad ideology and candidate  confidence issues.   It also suggests that while polling better than the broad Republican brand, McCain was never able to completely shake  the negative perceptions.    
  5. 67% of those polled favor expanded offshore drilling – I’m a bit surprised that this number is still as high with $2.40 gas as it was with $4.00 gas.   It will be interesting to see how Pelosi/Reid/Obama respond to this.
  6. Expect more Socializing of Industry – while only 39% of all voters supported the $700 billion bailout, unless they were strongly opposed to it (only 29%), they voted for Obama.
  7. Age more important than Race – While I don’t entirely believe this given what I saw in item 1, the exit polls showed that 39% said the age of the candidate was a factor in their vote, while only 19% said race was a factor.   The people who said age was a factor overwhelmingly supported Obama.

Ok, so what does this mean?   I’m not honestly sure.   I’ll get back to you after the weekend.  

One  other quick observation:

Who was the person least happy with the Obama victory?   Hillary Clinton.

If Obama does well as President, Hillary can’t run until 2012 and we have this nasty habit of changing parties after 8 years by the same person.   If Obama doesn’t do well, that would likely move that group of no conviction moderates to swing their emotions to the nonDemocrat.

November 4, 2008

McCain Wins!

by @ 17:09. Filed under Politics - National.

Well, at least at Thing 1 and Thing 2’s elementary.   I’m told he won 396 to 157!   I suspect the spread in the adult vote of this area won’t be too far off of that.   Maybe we should have started a drive to get “Power of attorney” for the rest of the state!

Exit polls – 4:30 PM

by @ 16:38. Filed under Miscellaneous.

Fox and others have just released the first exit polls for several key states of Indiana, Ohio and Virginia.   Highlights:

  • New voters are breaking for Obama by 60 – 70% to 30% to 40%, depending upon the state.   Republican spokesperson “not surprised”
  • White men are breaking to McCain by 4% (Ohio)  to almost 20% (Virginia), depending upon the state.   Democrat spokesperson “not surprised.”
  • Late deciders are breaking for Obama in Indiana and Ohio but to McCain in Virgiana…about 10% spreads in each.

I’m encouraged by the Virginia info as it would seem to support McCain on a couple of key fronts.   The Ohio data gives me concern as white males are only slightly more disposed to McCain and there was a strong number for Obama in late breakers.   That said, I don’t see anything that causes any overall “this is getting away from us” at this point.

Stay tuned!

Revisions/extensions (4:53 pm 11/4/2008, steveegg) – In addition to my usual call to ignore the polls if you haven’t already voted, I present some circumstantial evidence dug up by Jim Geraghty that these may be as hosed as they were 4 years ago:

08:32 – AP doing exit polling in Stafford. Talking 4 to 1 to minorities over whites at a Republican precinct (Falmouth). Expect it to be skewed. Don’t trust the exit polls as they start to trickle out.

First, vote (especially if you’re going to vote for the elephant brand). Second, wait for some real numbers.

added revision (5:01, Shoebox)   – Drudge has been running a headline showing O up by 15% in PA.   That may actually be good news for McCain.   Kerry was up by 20% in the early polling and ended up winning by only 2%.

October 31, 2008

Christmas in October!

by @ 5:09. Filed under Economy.

Many malls and even Fleet Farm, moved to discount Halloween goods a week ago. They did this to make room for Christmas displays and merchandise. While many folks are already able to do their Christmas shopping, most of us wait until December 24th or 25th to deliver our Christmas gifts. Not so with the Treasury department!

After a ridiculous delay, considering we were all in “grave danger,” Treasury has finally gotten around to doling out its $700 billion dollar bail out. Over the past couple of weeks Treasury has struck deals with nine financial institutions including Goldman Sachs who Paulson used to work for.

You may remember one of the items I carped about in the “bail out” bill was that it gave Paulson incredible latitude in determining how, when and why to use the $700 billion. One would think that for that kind of money Congress would be just slightly concerned about how it would be used…but they really weren’t. Paulson had evidently convinced Congress that the problems were so complex and changing so rapidly that he couldn’t be held accountable to a fixed plan. Well, in the immortal words of Jeremiah Wright, “America’s chickens are coming home to roost!”

The United Steel Workers have been doing a little research, analysis and calculation on Paulson’s “investments.” One of his new found pets, Goldman Sachs, just happened to have a very comparable transaction just a couple of weeks back. You may remember the news when just 3 weeks ago Warren Buffet invested $5 billion in Goldman Sachs. Turns out that his investment was very similar to the one that the Treasury made so the value should be similar too, right?

Wrong!

The analysis that the UAW  did showed that in just 3 weeks time while Buffet got paid interest of 10%, Treasury was only able to get 5%. Second, while Buffet got warrants (the ability to buy additional shares) that equal 100% of his original investment, Treasury was only able to get 15%…oh and it could be diluted down to 7.5%.

Using a well recognized financial analysis method for determining the value of these types of transactions, the UAW determined that Warren Buffet paid $5 billion, Treasury paid $10 billion for….just 3 weeks later a 100% premium! Does anyone remember anyone sounding the “all clear” in the financial markets that would warrant a 100% increase in valuation for Goldman Sachs in just 3 weeks?

I’m not normally a fan of union leadership. Most of what I see them doing is feathering their own nests at the expense of their membership. In this case, however, kudos to them for doing a little research and getting this information out.

May I remind you one last time that Paulson, and many of the people currently working for him are former employees of Goldman Sachs. As the UAW points out, neither Paulson or his employees have disclosed whether they are still shareholders of Goldman Sachs.

If the gift that Treasury gave Goldman Sachs is replicated in each of their deals, the $700 billion bail out, that wasn’t supposed to cost the taxpayer anything, contains at least, a $350 billion gift!

Merry Christmas Wall Street! I hope you remember all of us come Kwanzaa

October 30, 2008

He’s Not the Barack Obama We Knew!

by @ 11:26. Filed under Politics - National.

Folks,

This is a long video, nearly an hour, but well worth the time invested to watch it. If you want to speed read, you can do so here.

After extensive literary analysis and similar conclusions from four different analysis, Jack Cashill claims that Barack Obama did not write his first book “Dreams From My Father.” Cashill goes on to claim that Bill Ayers was responsible for writing and editing significant portions of Obama’s book.

Bill Ayers? Yup, that Bill Ayers! The Bill Ayers who Obama describes as “Just a guy in the neighborhood.” Interesting thing here, if Bill Ayers did write portions of the book it would seem like he was more than just “A guy in the neighborhood.” Pretty hard to ghost write a person’s memoirs without spending a whole lot of time with them.

Update: The link to Breitbart.TV was hosed. I’ll relink once I see that it actually works

We all know that the Barack Obama we see on the campaign trail is not the real Barack Obama. We clearly see through his writings and associations someone who does not believe America, in it’s current state to be a great hope to the world. However, with this revelation it would seem that Barack Obama may not even know the Barack Obama he supposed to be just a few short years ago.

Hope Springs Eternal?

by @ 5:25. Filed under Conservatism.

From Jonathan Martin at the Politico:

Two days after next week’s election, top conservatives will gather at the Virginia weekend home of one of the movement’s most prominent members to begin a conversation about their role in the GOP and how best to revive a party that may be out of power at both ends of Pennsylvania Avenue next year.

The meeting will include a “who’s who of conservative leaders "” economic, national security and social,” said one attendee, who shared initial word of the secret session only on the basis of anonymity and with some details about the host and location redacted.

The article goes on to say that the event is not based on a McCain win or loss.   Regardless of Tuesday’s outcome, the event will be held.

I hope that the host invites people who have proven Conservative credentials and not those who talk about Conservatism when it serves their purpose (Hello, John McCain!).   I also hope that the find folks outside of Washington and outside of the alledged “Elite.”

So aside from Fred Thompson, Bobby Jindal and Sarah Palin who would you like to see at this shindig?

Reminiscing

by @ 5:25. Filed under Energy, Global "Warming".

Remember back to the good ol’ days when we were debating whether we were or weren’t in a recession, we were concerned that McCain might have to face Hillary and gas was $4.00?   Well, all three of those things are now ancient history.   Or are they?

NewsMax.com published an article Wednesday that claims that the International Energy Agency will publish a report saying that existing oil field production is declining at a rate far faster than previously thought.   While they recognize that it’s natural for   fields to decline and that increased investment can flatten or reverse that decline, they don’t believe it will be enough.

It seems that there are two ways to look at the IEA’s report.

One would be to continue the “drill here drill now” mantra.   Funny how the decreasing price of gas has seen an equal reduction in the discussion of gas prices.   I know the election has people’s attention but regardless of that outcome, we need to keep our foot on the pedal, so to speak.   This economic slow down isn’t going to last forever.   The minute that the markets sense that things will improve, oil prices will start to move up and so will gas prices.   If you like gas at a level that is about to go south of $2.00 in the Twin Cities, we need to keep production up.

The second thought is, “Gee, is it just coincidence that the IEA is raising a red flag on production now or is there something else going on?”   Likely not.

The IEA was originally organized during the oil crisis of the 70’s.   Its purpose was to coordinate activities amongst its member countries (now numbering 28 that are mostly Western and Asian countries) to reduce or eliminate oil supply disruptions, a laudable goal.   However, within the last year or so the IEA has hopped on the global warming bandwagon and now also focus on “alternative energy” and “mitigating climate change.”   In fact, the IEA has been a leading advisor to the UN on topics like emission trading and member country efforts to reduce greenhouse gases.   In a phrase, I’d say the IEA has mixed loyalties!

The IEAs final report is due to come out November 12th.   If the final report is as dire in its oil production forecast as what Newsmax is reporting, you can expect the Dems to cranking the sirens on the needs for a new stimulus to generate “green jobs for renewable energy!”   Just remember, if you hear those sirens, the report that generated them was created by an agency who no longer has oil production and mitigation of supply disruption as their sole, or some would argue, even their primary purpose.

Another Democrat Lie

by @ 5:01. Filed under Politics - Minnesota, Taxes.

Ok, I know….So what’s new?

Last spring on the heels of the 35W bridge collapse and as the Minnesota Legislature wrestled with their budget, the Democrats decided to politicize the bridge to get the largest single tax increase in the state passed.   The Dems claimed that the 35W bridge proved that we weren’t spending enough on our infrastructure.   The claimed we needed more money to fund roads, bridges and, oh yes, transit.

With the help of 6 RINOs, the Dems overrode a veto by Governor Pawlenty and passed the gas tax increase.   Included in that bill was the ability for metro counties to increase their sales tax by 1/4% so that they could take care of their deteriorating infrastructure.

Today’s Star and Tribune reports that the first projects to be paid from the new taxes are now receiving their funding.   The Strib reports that the following projects have received funding:

Tens of millions of dollars from the new transit tax will bring a commuter-rail stop to Fridley, build a park-and-ride station in Apple Valley and help stretch light-rail transit from Minneapolis to St. Paul.

and if that wasn’t bad enough:

The biggest chunk of money — nearly $31 million — goes to the Metropolitan Council so it can address Metro Transit’s operating deficit.

Can you help me find the bridge replacements in there?   Can you help me find road repair?   How about new road lanes, did you see any of those paid for from those funds?

Just like Paulson’s bailout, the Dems were caterwauling about our crumbling infrastructure and how maintenance had become so bad and they didn’t want another 35W bridge incident.   THEY NEEDED MONEY FOR THE CHILDREN!  

Yeah.   All we got was more places to put money so we could set ourselves up for even higher taxes to support the ongoing subsidies that each of these efforts will further need.

Oh, and did I tell you that the whole “bridge crashed because it wasn’t maintained” theory was busted?

October 29, 2008

If He Won’t Help Himself…

by @ 5:47. Filed under Politics - National.

…maybe others can.

John McCain has said that he will not use Jeremiah Wright as an issue in this campaign.   He believes that it is a “religious issue” and outside the bounds of political discussion.   I’m not sure how someone who Obama himself said was a “mentor,” someone who believes that the US purposely distributed AIDs to African Americans and has openly supported Kadhafi, Louis Farrakhan and Hamas isn’t a political issue but…

If McCain won’t pick up Wright as an issue himself, he now has help.   the National Repulican Trust PAC has picked up advertising time in a number of states and will be running this ad:

If you’re interested in aiding the funding of the buy for this ad you can go here.

Your Morning Global Warming Update.

by @ 5:29. Filed under Global "Warming".

Near-record cold, and mountain snow

Temperatures that are more than 15 degrees below normal for this time of year, combined with strong northwest winds, are making today uncomfortably chilly in the Charlotte metro region.

And

Expert Senior Meteorologist Brett Anderson says, “This is a big storm by October standards.” More a foot of snow will fall in the Pocono Mountains of northeastern Pennsylvania and the Adirondacks in upstate New York.
We now return you to our regularly scheduled complaints about BUUUUUUUUUUUUUSH!

AAAAAAAAAACCCCK!

by @ 5:05. Filed under Politics - National.

First, watch this:

I feel like the duck at the end of the commercial after he hears Yogi explain that “they give you cash which is just as good as money!”

Yes I feel like the duck after reading this article.

The article is an interview with Nancy Pelosi. In it, she explains why having an “All Democrat, all the time” Congress would be a good thing. It’s mostly typical drivel from Pelosi until she gets to this pearl of wisdom:

“Elect us, hold us accountable, and make a judgment and then go from there. But I do tell you that if the Democrats win, and have substantial majorities, Congress of the United States will be more bipartisan,” said Pelosi.

AAAAAAAAAAACCCCCCK?

Having Democrat majorities in both chambers will make Congress more “bipartisan?”   Pelosi proved this session, by shutting off debate and not accepting amendments, what she believes “bipartisan” to be.   The only way you could consider a lopsided Democrat control of Congress as “bipartisan” would be that there would be no effective means to argue with any of Pelosi’s halfwit ideas and petulant demands.

Bipartisan, my butt!   Dictatorship, despotism, authoritarianism, autocray, totalitarianism and tyranny, maybe!

October 28, 2008

Coincidence? I Think Not!

by @ 5:50. Filed under Politics - National.

On the first business day after the Anchorage Daily News endorsed “The One” for President, the McClatchy news bureau does a hit piece on Sarah Palin:

Just how big a drag is Palin on the McCain campaign?

Of course, McClatchy owns the Anchorage Daily News.

While the hit piece isn’t unsuspected, the conclusions they attempt to draw are humorous at best, most likely intended to slant or flat out lies at worse.

Of course, McClatchy relies on the same RINO assessments that we’ve been hearing since Palin was selected:

Prominent Republicans have echoed that idea. Sen. Lindsey Graham, R-S.C., one of McCain’s closest friends, suggested that Sen. Joseph Lieberman, an independent Democrat from Connecticut, would have brought independents to the ticket. Last week, former Pennsylvania Gov. Tom Ridge said that had McCain picked him, the Republican Party would have had a better shot at winning his state.

Ah, no!   Had McCain chosen Lieberman or Ridge for that matter, conservatives would have either stayed home on election day or just voted the down ticket races.  

Beyond Graham and Ridge, McClatchy trots out a host of other unknown, local RINOs who complain that Palin has been an embarrassment.   What’s McClatchy’s definition of “embarrassment?”

She also unabashedly identifies herself with the party’s conservative wing, alienating moderates.

“It reinforced the notion that John McCain cared little about people like me,” said former Maine state Rep. Sherry Huber, a Republican who backed McCain in the primary but now supports Obama. “She clearly does not share the values I and other moderate Republicans do.”

I’m trying to figure out which plank of the Republican platform that Palin violates which causes people like Ms. Huber to find her offensive?   Prolife?   Lower Taxes?   Smaller government?

The only part that McClatchy got right on Palin was their begrudging admission that she does invigorate the Conservative Base:

The Republican base loves Palin.

“So many people can relate to her. She really appeals to everyday housewives, people who go out and hunt, and people who have done great things in their life,” said Bob Dodge, a retired communications engineer in Sarasota, Fla.

Whether McCain wins or not it’s clear that Palin has cut a clear line between what RINOs and Conservatives look like.   The question will be whether the Conservatives will choose to fight for the party or allow it to further drift towards the Democrat Lite position.

If the Republican party goes down in flames this election there’s going to be a lot of focus on what went wrong.   You can bet there will be a lot of focus on whether the messaging was right, distinguished from the Dems.   Until then, RINOs of all shapes and sizes are working to make sure that Sarah Palin disappears like The Hollywood Argyles.   Coincidence?   I think not!

October 27, 2008

Oh, What the Heck!

by @ 9:45. Filed under Politics - National.

OK, everyone else will have this up on their site and I’m sure it will spin through chain emails.   While I would normally pass on this due to it being “everywhere,” this one just can’t go without comment.   In fact, I’m even going to use my new flashy light thingy to draw more attention!

In case you’ve just returned from several years on a deserted island, next Tuesday is election day.   We can go back and forth between the policy differences between the two candidates but that is wasted time at this point.   If you are at all ambivalent on who to vote for or if you have decided to vote for Barack Obama yet believes that the United States is a light to the world, consider that the next President will get to decide the makeup of the Supreme Court for at least a generation.

Our choice comes down to a candidate who believes the Constitution of the US is the supreme law of the US and should be followed.   Our other choice is a candidate who in the attached piece, states that he believes the Supreme Court should not be bound by the Constitution.   He intimates that it is only the Court’s lack of desire, not their Constitutional ability, to fundamentally  interpret the Constitution to reflect one of any of a number of European countries.

Listen to the piece.

Another Poll At RightWingNews.com

by @ 8:55. Filed under Politics - National.

John Hawkins at Rightwingnews.com has put up another poll of Right-of-Center bloggers.   You’ll find the poll here and my responses below:

1) Who do you think is going to win the election?

A) John McCain
B) Barack Obama

2) Do you think Sarah Palin has been a plus or a minus to the ticket?

A) Minus
B) Plus

3) How do you feel about Sarah Palin as a candidate?

A) I really like her!
B) She’s so-so.
C) I’m not a big fan!

4) The Republican Party did poorly in the 2006 election and even if McCain wins is on track to do poorly again in this years Congressional races. If you had to choose between these two options, do you think that’s because they were

A) Too conservative
B) Not conservative enough

5) Do you believe the mainstream media’s coverage has been…
A) Relatively fair and even handed.
B) Slightly biased in favor of Barack Obama.
C) Slightly biased in favor of John McCain.
D) Heavily biased in favor of Barack Obama.
E) Heavily biased in favor of John McCain.

6) Do you think Barack Obama is…

A) Honest (Yes or no?)
B) Patriotic (Yes or no?)
C) Qualified be President (Yes or no?)

Probably no real big surprises in the poll’s answers.   Yes, I want McCain to win and while I think it can still happen, if I had to put money down today I’d have to say he won’t.   That’s not defeatism, just an assessment.

I had problems answering the honesty question.   There have certainly been things I would consider dishonest answers from Obama.   However, I don’t know that they were in his mind and if I were honest I’m sure I could find equally equivocated answers from McCain that if I was partisan left, I would find dishonest.

I do like Sarah Palin.   She strikes me as genuine.   I don’t get the smarmy meter running to extremes when I hear her talk, unlike nearly every other politician I’ve ever met, left or right.

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