Governments Grasping at Straws

Reading Time: 3 minutes

The world’s financial systems are succumbing to fear and negative in exponentially increasing spasms that threaten shatter to more than 200 years of economic development.

Major US corporations are now on the precipice of surrender with GM’s price plummeting and GE quietly informing SEC that it fears it will not be able to obtain cash needed to maintain operations.

The Dow Industrial Average fell more than 600 points today and has lost almost half of its value since its all-time high.  The Japanese Nikkei is down 11 percent in early Friday trading, leading indices across Asia into a free-fall. 

The combined loss of wealth and confidence threaten to plunge the world into an economic depression not seen since the 1930s.  From the International Monetary Fund’s Outlook released today:

The world economy is now entering a major downturn
in the face of the most dangerous shock in mature
financial markets since the 1930s. Against an exceptionally
uncertain background, global growth projections
for 2009 have been marked down to 3 percent,
the slowest pace since 2002, and the outlook is subject
to considerable downside risks. The major advanced
economies are already in or close to recession, and,
although a recovery is projected to take hold progressively
in 2009, the pickup is likely to be unusually
gradual, held back by continued financial market

A majority of Wall Street Journal’s economists now predict a recession in the US to extend at least 9 months–the longest in 50 years. 

Some steps I would take:

* Fire Henry Paulson and Ben Bernanke.  Each time either man speaks, people around the world lose confidence in the financial systems.  However stupid or corrupt they might be is irrelevant at this point.  They are net drains on the world economy.

* Rapidly indict executives of Fannie Mae and Freddie Mac.  These two companies are primarily responsible for the meltdown in economic value and the inflation of real estate the fueled the collapse.  People want someone to fry for this, and Jim Johnson, Franklin Raines, and Jamie Gorelick are the perfect candidates.

* Leave the stock market closed for two days next week.  Let people take a breather.

* Stop throwing new policies at an information-overloaded public.  The $700 billion bailout bill following the $200 billion Fannie/Freddie bailout and the AIG bailout, and the myriad other bailouts and schemes have not even begun to work.  No mas, at least until we see the results of actions already taken.

* Shut down all federal government programs begun after 1930.  A loss in faith in the US government’s credit worthiness now would flood the world with US dollars, kicking off inflation at the 300 percent annual level. 

* Stop all payments to foreign governments and the UN.

* Ratchet up military spending to prepare for a 4-million man force.  Our enemies will use our economic hardship as an opportunity to attack.  Skyrocketing unemployment will make many people eager for a job in uniform.  Spending on weapons and supplies will offset stagnation in the private sector.  This combination will make the military the best use of the dollars the federal government has left.

* Begin developing plans for a WPA type program.  We are likely to see unemployment rates between 10 and 20 percent beginning in 3Q09 and continuing for several years.  Welfare doesn’t work–people must earn a living.

* Do NOT elect Barack Obama and a Democrat Congress.  They will institute a Marxist-style government using the economic calamity as justification.  If this happens, you will not a free country back in your lifetime. 

Sorry for the bad news, folk.  I hope and pray that I’m wrong, but everything tells me I’m right.


Technorati Tags:

Debate: The Dive Continues

Reading Time: 1 minutes

After showing signs of life following Sarah Palin’s top-shelf performance against Joe Biden on Friday, McCain reminded me of an addict who fell off the wagon. He’s addicted to boredom.  It was like previous horrendous performances by Republican Senior Guardsmen:  Bob Dole in 1996, George H. W. Bush in 1992.  Did McCain look at his watch?

I’m sorry, folks, but this guy does not want to be president. I have no doubt that he did.  He lost the will to win when he suspended his campaign to what the hell George had done to the economy.  As I wrote last night, whatever George, Henry, Barney, Barack, Chris, and Lacy have done with the nation’s financial markets is beyond McCain’s ability to fix.  In fact, it’s beyond anyone’s ability to fix unless that someone’s life ambition is to be known as “Hoover II.”   The next president will be a one-termer.

“Fight with me!  Stand with me and fight with me!” 

Please.  Now that some of us have climbed into the ring, it would be nice if the instigator would join us. 

The End of the American Experiment?

Reading Time: 4 minutes

Consider this: The next president will be a Marxist riding into Washington just as the US economy collapses into a depression reminiscent of Weimar Germany.

What will his policies be?  What police-state powers will the frightened, hungry, weak American people grant?

While I reserve some degree of skepticism, I am increasingly convinced there is more than coincidence behind the eery consistency between current economic problems and those predicted by Peter d. Schiff in “Crash Proof:  How to Profit from the Coming Economic Collapse.”

If Schiff was right when he wrote that book in 2006, America’s economic dominance is at its end.  Within a year or two, the Euro will replace the US Dollar as the world’s official medium of exchange.  At that point, the trillions of dollars held in reserve in Asia and, to a lesser degree, Europe, will flood the market creating hyperinflation in the US and destroying our ability to obtain foreign credit.

(Read the book before ripping it, please.)

Were this collapse to occur during Clinton, Bush, or McCain administration, I’d say we could come out stronger and better.  It would have been mental, psychological, physical, and economic boot camp in which many were hurt and the strong survived. (Yes, I included Clinton–Bill or Hillary.)

But that’s not the case.  While I still hold out hope for a miracle, it’s becoming more likely that Obama will win 45-49 states in the general election and Democrats will win super majorities in both house of Congress.  They will be able to add justices to the Supreme Court to ensure rulings in their favor.  Obama will have dictatorial control over a country lacking even the wealthy as a counterbalance.  He will Chavez, Lenin, Mao, and Castro rolled into one.

First, blogs like this one, Michelle Malkin, Gateway Pundit, Hotair–most the blogs listed on my roll–will be gone.  The justification will be that our anti-government messages are preventing Obama and Congress from enacting the “sweeping reforms” necessary to stabilize international markets.  Rush Limbaugh, Mark Levin, Michael Savage, Sean Hannity will disappear from the airwaves.  They’re powerful messages encouraging people to resist the police state will be accused of prolonging the agony felt by millions of Americans. Like Hugo Chavez’s initial suppression of freedoms, these measures will be called temporary.

Next, we will nationalize major industries, including entertainment (television, radio, movies), the internet, cable, automotive, medicine and pharmaceuticals, all major manufacturing.

At some point, he will have outlawed private ownership of any kind of firearm.  (Probably as soon as he swells the Supreme Court to 15.)

There won’t be an off-year election 2010.  The party line will be that the economic emergency justifies avoiding such meaningless distractions.  Besides, the results are already known as the polls show nearly unanimous support for Dear Leader’s reforms.

That’s what we’re in for, people.  I hope I’m wrong, but I don’t think I am.

What pisses me off is that John McCain seems okay with this result.  He asked us to stand and fight with him, then he took a dive.  If he gets up now, he’ll only get smacked down harder.    And those of us to try to lift him will get smacked down, too.

It was a great country while it lasted.  The best ever.  But we got fat and lazy.  We built a welfare state and segregated Americans into various protected groups who were trained to fight against each other.  We made our people dependent on the largesse of government that stole from the producers and gave the consumers.  We priced the cost of savings beyond the reach of most, and we paid premiums on debt through tax breaks.  We broke ourselves.

Welcome to the Union of Soviet States of America. And fight them when they come to get you.  Take Solzhenitsyn’s advice and run when they ask you to answer a few questions.  “It won’t be long,” they’ll say, smiling as you try to get your car after leaving the bakery.  “There’s been a mistake in some of our records, and we’d like you help us straighten them out.”

You’ll say to yourself, “I’ve done nothing wrong, so maybe there really is some problem I can fix.  Why would they come after me?  Who am I?”

But you know.  Deep down, you that you will never walk to a bakery a free person again.  You don’t know what the re-education camps are like, but you guess they’re not fun.  They’re not free.  The person you know who, some say, survived the camps doesn’t say much.  She just stares and mutters stock phrases at inappropriate times.

What can you do, though?  The government agent is still standing between you and your car, still smiling hungrily at you with his rotten teeth.  His comrades in uniform stand behind him, almost touching your car.  They’re armed, but they don’t look you in the eye.  You know better than to look them in theirs.

If you run, would they dare shoot you?  If say, “No,” will they stand aside as you enter your car and drive to your apartment?

When you find yourself in this situation, run.   Run like the wind.  Let them take your life on the street as a warning to others rather than eating your soul in a concentration camp.

Run.  Maybe others will follow.  Maybe you’ll start the counter-revolution.  Maybe your grandchildren will live and breathe freely some day because you laid down your life for the crime of going to the bakery one day.

Run.  Your kids deserve it.

Obama’s $26 Million Fannie Mae Be-atch

Reading Time: 5 minutes

Her name is Jamie Gorelick.  She was the principal architect of Al Qaeda’s ability to plan and execute the 9-11 attacks under US intel’s radar.  She took $26 Million in six years from Fannie Mae by ordering accountants and internal auditors to falsify records and forge documents so ensure that she, Jim Johnson, Franklin Raines, and other Democrat executives at Fannie received maximum bonuses.

Lehman Brothers collapse is traced back to Fannie Mae and Freddie Mac, the two big mortgage banks that got a federal bailout a few weeks ago.

Fannie and Freddie have also been places for big Washington Democrats to go to work in the semi-private sector and pocket millions. The Clinton administration’s White House Budget Director Franklin Raines ran Fannie and collected $50 million. Jamie Gorelick — Clinton Justice Department official — worked for Fannie and took home $26 million. Big Democrat Jim Johnson, recently on Obama’s VP search committee, has hauled in millions from his Fannie Mae CEO job.

Jamie Gorelick is considered the front runner for Attorney General should Barack Obama win.  She needs that job to keep herself out of prison. 

The Virginia Patriot exposes the scam that Obama’s chief legal and economic advisors ran at Fannie Mae–the scam that, according to Obama, has brought the world to the brink a great economic depression:

This flexibility also gave Fannie the ability to manipulate earnings to hit — within pennies — target numbers for executive bonuses. Ofheo details an example from 1998, the year the Russian financial crisis sent interest rates tumbling. Lower rates caused a lot of mortgage holders to prepay their existing home mortgages. And Fannie was suddenly facing an estimated expense of $400 million.

Well, in its wisdom, Fannie decided to recognize only $200 million [of losses], deferring the other half. That allowed Fannie’s executives — whose bonus plan is linked to earnings-per-share — to meet the target for maximum bonus payouts. The target EPS for maximum payout was $3.23 and Fannie reported exactly . . . $3.2309. This bull’s-eye was worth $1.932 million to then-CEO James Johnson, $1.19 million to then-CEO-designate Franklin Raines, and $779,625 to then-Vice Chairman Jamie Gorelick.

As for other losses, they were routinely mischaracterized so that they could be amortized over years, not realized fully as they were supposed to be. By this method, the Fannie Mae management siphoned off millions of dollars in excess compensation to top management, including Gorelick. [source]

When he ran for president in 1996, Pat Buchanan spoke of "peasants with pitchforks" demanding retribution for the excesses of American power merchants like Gorelick, Raines, and Johnson, and their customers like Barack Obama. 

Some will argue that Gorelick, Raines, and Johnson were not criminals, but mere incompetents.  Okay, then who appointed such idiots?  How did they get jobs so powerful that they could destroy the US economy? 

I don’t buy the idiot argument.  Gorelick is a master manipulator who got herself appointed to the 9-11 Commission so she could cover her lethal tracks.  She as similarly positioned herself to become AG so she can prosecute the innocent, protecting herself and her enablers in the Democrat party, including Barack Obama, the veritable Senate slave purchased for $42,000 a year.  (BTW, Obama was the most expensive Congressman Fannie Mae and Freddie Mac purchased viewed from a cost-per-year perspective.)

According to, Gorelick was also a kingpin in the Countrywide-Fannie Mae-Democrat money laundering operation that contributed to the current crisis:

Countrywide Financial Corp., the biggest U.S. mortgage lender, made large, previously undisclosed home loans to two additional executives of Fannie Mae, the government-chartered firm at the center of the U.S. credit crisis.

One of Countrywide’s previously undisclosed customers at Fannie was Jamie Gorelick, an influential Democratic Party figure whose $960,000 mortgage refinancing in 2003 was handled through a program reserved for influential figures and friends of Countrywide’s chief executive at the time, Angelo Mozilo. Ms. Gorelick was Fannie Mae’s vice chairman at the time.

The Fannie loans — including a series of already reported preferential loans to former Fannie chief executives James Johnson and Franklin Raines — underscore the close connections between Countrywide and Fannie Mae and raise potential conflict-of-interest issues.

Here is breakdown of those preferential loans from the Wall Street Journal:

In 2002, Gorelick defended Fannie Mae and attacked Republicans for threatening investigations into FNMA in light of Enron’s downfall. From BusinessWeek:

In the wake of the Enron disaster, Federal National Mortgage Assn. (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac), the federally chartered mortgage banks that experienced explosive growth in 2001, have come under increased scrutiny. Once again, Republicans in Congress are threatening to conduct an investigation into the activities of the two — No. 7 and No. 2, respectively, on this year’s BusinessWeek 50 list of top performers — some say in hopes of revoking the portions of the Fannie and Freddie charters that gives an implicit government guarantee to their borrowing.

Gorelick’s select responses:

We believe we are managed safely. We are very pleased that Moody’s gave us an A-minus in the area of bank financial strength — without a reference to the government in any way. Fannie Mae is among the handful of top-quality institutions.  Also, we are very highly regulated. We have auditors. We have examiners here on premises every day. And we have consistently exceeded every standard that the examiners have set for us.

Of course–except that Democrats in Congress accused those regulators of racism for even looking at Fannie Mae’s books.  Regulations do no good of regulators aren’t allowed to report their results. 

We are very well protected against credit losses, which fell to their lowest level in a generation — since 1983 — last year. They went from four basis points [0.04%] down to under one basis point [0.01%] of our outstanding portfolio. We believe that while credit losses may rise somewhat in the aftermath of the recession, they are likely to remain quite low in 2002.

We now know that all of the numbers Gorelick cited were lies–manipulations to maximize her bonuses. 

Well, our business is backed by homes with a considerable amount of equity. When I tell people that our portfolio consists of homes with an average equity exceeding 40% of market value, they are astonished.

I bet they were astonished, particularly since we now know that Gorelick was inventing these numbers from whole cloth.  Anyone who knew her business would have been astonished.

We also follow the trends in credit. We follow all the macroeconomic indicators to most effectively manage credit losses. So we’re pretty confident that we should do fine. Obviously we don’t have a crystal ball here, but we are basing our projections, which have been pretty accurate over the years, on the numbers we currently have available to us.

Whatever.  Criminal or criminally incompetent, Gorelick has no business walking the streets a free woman, much less as chief law enforcement officer in the free world. 

Perhaps when families are living in "Obamavilles" that used to be city parks, the American people will finally grab their pitchforks and descend upon the White House and Capitol. 

Two years later, Franklin Raines resigned in disgrace and agreed to give back his worthless stock options.  His bought-and-paid-for Democrats in Congress ensured neither he nor Gorelick would see jail time because of their blatant fraud at Fannie Mae.  Nor was either miscreant required to return the millions they stole from tax payers.  Nor are they on the hook for the $200,000,000,000 in bailouts directly to Fannie and Freddie nor the $700,000,000,000 in bailouts to the rest of the mortgage industry they destroyed.

Why Aren’t These Democrats In Prison?

Reading Time: 1 minutes

Barney Frank (D-MA)

Chris Dodd (D-CT)

Maxine Waters (D-CA)

Lacy Clay (D-MO)

Gregory Meeks (D-GA)

Charles Rangel (D-NY)

These Democrats were the most vicious in attacking Republicans who tried to stop the abuses at Fannie Mae and Freddie Mac in 2003-2006.  These criminal Congressmen accused anyone of challenging the soundness and safety of Fannie and Freddie of racism. “The political lynching of Franklin Raines,” was was Lacy Clay of Missouri called an auditor’s report on Fannie Mae.

These Democrats, who personally profited from the abuses, caused the $200 billion Fannie/Freddie bailout in July.  They caused the $850 billion bailout of October 3.  They placed the future of our country at risk for their own personal gain.

Why are the not in jail?  Is it because Dodd is powerful?  Because Frank is gay?  Because Meeks, Water, Clay, Obama, and Rangel are black?

Of course it is.  And in this country liberals, gays, and blacks are above the law.

Is the GOP Taking a Dive?

Reading Time: 2 minutes

Somewhere between The Republican National Convention and the first debate on September 26, John McCain left the race.  It’s as if the McCain campaign remains on suspension pending resolution of the economic crisis.  Why?

It’s possible, of course, that McCain is simply inept at closing the deal.  As every baseball fan knows, closers don’t grow on trees.  Many fine pitchers flounder in the ninth inning with a narrow lead.  They’re not all Bob Gibson. Some panic upon seeing the white tape of the finish line. 

McCain doesn’t strike me as that type.  If for no other reason, he seemed to grow stronger as the GOP nomination came closer to his grasp.

With a little over a month to go in his race for the White House McCain held a slight lead in the national polls and had taken the lead in the battleground states–Florida, Virginia, Ohio, New Mexico, Nevada, and others.  He held the electoral vote lead. 

Then he quit.

I can’t help but wonder what he learned in Washington on September 24 and 25.  What did President Bush, Ben Bernanke, and Henry Paulson reveal that changed McCain’s mind about winning the White House?  Is it possible that something awful is about to happen to America–something so awful that the party in power will sink to unimaginable depths in public trust and public opinion?  Did McCain figure out the next president will be the next Hoover?

When the House passed the economic rescue bill on Friday morning, the stock market fell.  Up more than 100 points before the vote, by the time the House roll call was complete, the Dow was hovering slightly above neutral.  Within an hour, it was 150 points below zero and remained there. 

At 4:00 p.m. Eastern, news reports began flowing in that showed the trillion dollar package would have little effect on the credit paralysis sweeping the globe.  Banks and governments in Europe announced more financial problems than solutions.  Ireland, France, Germany, the UK seem to worry that something terrible is about to sweep their continent.

Is it possible that the credit freeze brought on primarily by Fannie Mae and Freddie Mac recklessness followed by commercial bank imitations has set the world’s economy on a collision course with squalid destiny?

A week ago, I was convinced that McCain would win the election handily. I did not expect him to quit this early.  Barack Obama is a Marxist who will bring some degree of Soviet-style communism to the country that introduced the modern world to the democratic republic.  If whatever is about to happen seems worse than that to McCain, whatever’s coming must be really, really scary and big. 

Technorati Tags: ,

1974 Ford Maverick Sighting

Reading Time: 1 minutes

SarahToday’s my dad’s 84th birthday.  I went to see him and my mom after work.  My sisters Mickey and Tee showed up, and Tee’s husband Gary.  We drank some Budweisers and laughed.

I headed home about 7:30.  As I turned left off of Germania onto Gravois, an orange (not original color) 1974 Ford Maverick made a right off Hampton right in front of me.  It took a second for my mind to make the connection.  Maverick.

I took it as a good omen.

I heard the first question of the debate on the radio in my car.  Palin’s answer, following Biden’s, was good.  On TV she was even better.  

Others will dissect the debate, so I’ll stay with impressions.  

Biden was the better debater.  Palin won.  Biden lied or was factually wrong on 10 points.  Palin was factually wrong on none.  Biden never stumped Palin, but Palin perplexed Biden once and decisively.  I don’t remember the question, the answer, or the subject, but it sent Biden stammering like his hero, Obama.

The winning line was Palin’s shoutout to her brother’s 3rd graders at some elementary school who get extra credit for watching the debate.  Killer.  No career politician would think of it.  No squirrel like Obama could pull it off.

It was a 100 percent victory for the mom from Wasilla. She overplayed the privilege of answering the previous question, but that doesn’t matter.  She was nails.  she connected.  Frank Lutz’s independents move from undecided to McCain by a 9 to1 margin because Palin was money.  

Money.  That’s her new name.  Sarah is money. So money.

Peggy Noonan was on 97.1 FM in St. Louis this morning.  She didn’t expect much from Sarah Palin in the debate.  Tonight Peggy admitted she was wrong.

Read The Dems Race Card Attacks on Fannie Mae Regulators

Reading Time: 2 minutes

In 2004, John McCain cosponsored legislation to clean up the criminal fraud of Obama advisor Franklin Raines’s Fannie Mae.  The WSJ has a round up of key Democrats defending Raines’s fraud, calling the regulators and auditors liars, and telling McCain to stuff his reforms where sun shineth not.

  Rep. Barney Frank (D., Mass.): I worry, frankly, that there’s a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . . .


House Financial Services Committee hearing, Sept. 25, 2003:

Rep. Frank: I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. . . .


Rep. Waters: However, I have sat through nearly a dozen hearings where, frankly, we were trying to fix something that wasn’t broke. Housing is the economic engine of our economy, and in no community does this engine need to work more than in mine. With last week’s hurricane and the drain on the economy from the war in Iraq, we should do no harm to these GSEs. We should be enhancing regulation, not making fundamental change.


Mr. Chairman, we do not have a crisis at Freddie Mac, and in particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines. Everything in the 1992 act has worked just fine. In fact, the GSEs have exceeded their housing goals. . . .

Bastards all.  Dirty, thieving bastards.  Barney Frank should be in prison.  He should not be allowed to speak or vote on this issue.  The people of his district in Boston should be ashamed of the $700 billion he helped heap on the back of taxpayers.  

And the biggest per annum recipient of these crimes was Barack Obama.  Here is a breakdown of the top recipients of Fannie Mae/Freddie Mac kickbacks by annual receipts:


Average Fannie/Freddie Donations by Years in Congress
Average Fannie/Freddie Donations by Years in Congress

What did the Republican have to say?  

Sen. Chuck Hagel (R., Neb.):

Mr. Chairman, what we’re dealing with is an astounding failure of management and board responsibility, driven clearly by self interest and greed. And when we reference this issue in the context of — the best we can say is, “It’s no Enron.” Now, that’s a hell of a high standard.

Well, we can no longer say “It’s no Enron,” can we?  Franklin Raines makes Kenneth Lay look like Mother Teresa.