B. Hussein Obama, meet Hugo Chavez. Obama plans to bring legislation to the Congress this week to expand the government’s power to seize financial companies other than banks. The plan would seek “broad” oversight of any financial-related business of whatever nature whose failure could, in the opinion of the Anointed One, disrupt the “broader” economy. The range of “oversight” could include guaranteeing the firms losses with taxpayer dollars, taking an ownership interest in the firm with taxpayer dollars, voiding the firms contracts, limiting salaries and wages of firm employees, and seizing the firm outright.
In other words, this is a naked power grab against all financial institutions.
Here is another Obama idea to nationalize the financial industry while at the same time fleecing taxpayers.
This guy is a Socialist juggernaut, generating a new liberty-crushing idea every day.
Tuesday, March 24, 2009
Monday, March 23, 2009
Geithner and Obama Fail Economics 101
Today, Treasury Secretary Timothy Geithner is proposing a new program that will allow banks and finance houses to sell upside-down mortgage-backed investments to a "private-public partnership" entity. In this deal, Geithner says that the private sector must take "risks." Of course, the public part of the "private-public partnership" is taxpayers.
Geithner must have failed Economics, or Geithner and Obama intend to blackmail the "private sector" and rip off taxpayers.
Banks can make loans only to the extent they have assets to back the loans. For years, banks made loans based on the present value of a bundle of mortgages. When the housing prices fell, the mortgages became less secure, and thus less valuable. As a result, the banks were losing asset value, and with their asset base value diminished, their ability to loan money was likewise diminished.
Geithner and Obama's proposed plan today has the stated goal of removing "toxic" assets off the books of the banks, so that they can start making loans again.
Here is the problem with that: the "toxic" assets are not valueless. Merely taking these assets off the books of the banks is not going to free up one nickel in available loan capital; in fact, it lowers it. The only way loanable capital is increased for these banks is if the “toxic” assets are purchased by this “private-public partnership” at greater than the present market value.
Do Obama and Geithner expect savvy private investors like hedge fund operators will pay greater than market value for “toxic” assets? Market value already factors in the “risk” Geithner wants the private investors to take, so who in their right mind would do so?
This might occur in two ways:
First, as a sweetener, the public part of the partnership - the taxpayers - could give interest-free loans to these private investors who would then purchase “toxic” assets. This means playing with house money and betting on the come. The assets may improve their value over time to cover or exceed the loan value, and if they don’t, you just bankrupt the entity receiving the loan and walk away. Either way, Geithner’s promotion to Treasury Secretary pays handsome dividends to his Wall Street buddies at the expense of the taxpayers.
Second, Obama could use the various regulatory arms of government to threaten/blackmail healthy financial institutions to purchase some of these toxic assets at greater than market value, and these institutions might do so chalking up the government shakedown as a cost of doing business.
While some of the first two options will undoubtedly occur, the biggest part of the “toxic” asset removal will be the third route: the public part of the “partnership” - the taxpayers - will buy the lion’s share of these bank assets. Thus Geithner and Obama (on your behalf, of course, since you don’t know how to spend your own money wisely) will own and control a solid hunk of the real estate market. And why would Obama seek to maximize that investment for the taxpayers when ACORN would like to use those houses for “underprivileged” families who just need a little hand up?
Under this plan, you would not just be paying other peoples’ mortgages; you would be buying their entire house for them.
Welcome to Obama’s Socialist Utopia.
Geithner must have failed Economics, or Geithner and Obama intend to blackmail the "private sector" and rip off taxpayers.
Banks can make loans only to the extent they have assets to back the loans. For years, banks made loans based on the present value of a bundle of mortgages. When the housing prices fell, the mortgages became less secure, and thus less valuable. As a result, the banks were losing asset value, and with their asset base value diminished, their ability to loan money was likewise diminished.
Geithner and Obama's proposed plan today has the stated goal of removing "toxic" assets off the books of the banks, so that they can start making loans again.
Here is the problem with that: the "toxic" assets are not valueless. Merely taking these assets off the books of the banks is not going to free up one nickel in available loan capital; in fact, it lowers it. The only way loanable capital is increased for these banks is if the “toxic” assets are purchased by this “private-public partnership” at greater than the present market value.
Do Obama and Geithner expect savvy private investors like hedge fund operators will pay greater than market value for “toxic” assets? Market value already factors in the “risk” Geithner wants the private investors to take, so who in their right mind would do so?
This might occur in two ways:
First, as a sweetener, the public part of the partnership - the taxpayers - could give interest-free loans to these private investors who would then purchase “toxic” assets. This means playing with house money and betting on the come. The assets may improve their value over time to cover or exceed the loan value, and if they don’t, you just bankrupt the entity receiving the loan and walk away. Either way, Geithner’s promotion to Treasury Secretary pays handsome dividends to his Wall Street buddies at the expense of the taxpayers.
Second, Obama could use the various regulatory arms of government to threaten/blackmail healthy financial institutions to purchase some of these toxic assets at greater than market value, and these institutions might do so chalking up the government shakedown as a cost of doing business.
While some of the first two options will undoubtedly occur, the biggest part of the “toxic” asset removal will be the third route: the public part of the “partnership” - the taxpayers - will buy the lion’s share of these bank assets. Thus Geithner and Obama (on your behalf, of course, since you don’t know how to spend your own money wisely) will own and control a solid hunk of the real estate market. And why would Obama seek to maximize that investment for the taxpayers when ACORN would like to use those houses for “underprivileged” families who just need a little hand up?
Under this plan, you would not just be paying other peoples’ mortgages; you would be buying their entire house for them.
Welcome to Obama’s Socialist Utopia.
Sunday, March 22, 2009
Obama's First Hundred Days
So we are about eight weeks into the B. Hussein Obama presidency. In his first hundred days:
- Obama has crashed the stock market (losing more value than the 9/11 attacks caused)
- Nominated a bevy of tax evaders to cabinet positions
- Proposed a budged that will create budget deficits four times greater than the combined deficits of all prior Presidents
- Asked for $900 million to be given to Arab terrorist organizations, while
- Proposing that our injured war veterans pay for their medical treatment out of pocket.
- In the middle of the worst recession since Jimmy Carter, Obama has proposed the economy-killing cap and trade scheme and sent the bumbling Timothy Geithner to Congress to argue for it
- Announced a scheme by which hard working taxpayers pay the mortgage payments of people who should never have been given a mortgage in the first place
- Announced another scheme by which hard working taxpayers absorb all the bad debt held by banks
- Supported a new marginal tax rate of 92%
- Has openly spoken of regulating the salaries of bankers like some Stalinist dictator.
For the benefit of this nation, Barak Hussein Obama’s term as president cannot end soon enough. God save the United States from this radical Communist.
- Obama has crashed the stock market (losing more value than the 9/11 attacks caused)
- Nominated a bevy of tax evaders to cabinet positions
- Proposed a budged that will create budget deficits four times greater than the combined deficits of all prior Presidents
- Asked for $900 million to be given to Arab terrorist organizations, while
- Proposing that our injured war veterans pay for their medical treatment out of pocket.
- In the middle of the worst recession since Jimmy Carter, Obama has proposed the economy-killing cap and trade scheme and sent the bumbling Timothy Geithner to Congress to argue for it
- Announced a scheme by which hard working taxpayers pay the mortgage payments of people who should never have been given a mortgage in the first place
- Announced another scheme by which hard working taxpayers absorb all the bad debt held by banks
- Supported a new marginal tax rate of 92%
- Has openly spoken of regulating the salaries of bankers like some Stalinist dictator.
For the benefit of this nation, Barak Hussein Obama’s term as president cannot end soon enough. God save the United States from this radical Communist.
Wednesday, October 1, 2008
Socialism on the March
I had no idea when I started this blog that we were just a few short months to the most naked socialist bailout of Democrat supporters who prospered and screwed up under the complete lack of Democrat oversight -- Wall Street financiers.
The 700 billion dollar bailout of these elitist Democrat donors on the backs of the middle class is naked, blatant, undemocratic, socialism of risk and loss. The bill foisted upon the American taxpayer by the politicial elite shall be the real damning legacy of President George W. Bush. Bush has been poorly served by his Secretary of the Treasury Henry Paulson, an unworth successor to Alexander Hamilton.
Where is the American leader who will stand up for free markets and personal/corporate responsibility? Where is the American leader who will prevent the raping of the middle class? Will the American public have the brains or fortitude to throw all these bums out of office?
The 700 billion dollar bailout of these elitist Democrat donors on the backs of the middle class is naked, blatant, undemocratic, socialism of risk and loss. The bill foisted upon the American taxpayer by the politicial elite shall be the real damning legacy of President George W. Bush. Bush has been poorly served by his Secretary of the Treasury Henry Paulson, an unworth successor to Alexander Hamilton.
Where is the American leader who will stand up for free markets and personal/corporate responsibility? Where is the American leader who will prevent the raping of the middle class? Will the American public have the brains or fortitude to throw all these bums out of office?
Monday, July 7, 2008
Marxist Quote of the Day
"[W]hen I'm President, I will set a goal for all American middle and high school students to perform 50 hours of service a year, and for all college students to perform 100 hours of service a year. This means that by the time you graduate college, you'll have done 17 weeks of service. We'll reach this goal in several ways. At the middle and high school level, we'll make federal assistance conditional on school districts developing service programs, and give schools resources to offer new service opportunities." -- Barak Obama
A goal is not a goal if the goal has dollars tied to it.
Unfortunately for real Black Americans, Obama has no ancestors that were held in slavery in the United States. If he had, Obama would know the following section of the United States Constitution by heart: "Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction."
Whether you call it slavery or "national service", involuntary servitude is prohibited by the United States Constitution. Of course, dedicated Marxists do not allow little things like laws or the Constitution to get in the way of forcing Americans toward slavery to the almighty government.
Of course, this is yet another good reason to abolish the United States Department of Education.
A goal is not a goal if the goal has dollars tied to it.
Unfortunately for real Black Americans, Obama has no ancestors that were held in slavery in the United States. If he had, Obama would know the following section of the United States Constitution by heart: "Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction."
Whether you call it slavery or "national service", involuntary servitude is prohibited by the United States Constitution. Of course, dedicated Marxists do not allow little things like laws or the Constitution to get in the way of forcing Americans toward slavery to the almighty government.
Of course, this is yet another good reason to abolish the United States Department of Education.
Saturday, July 5, 2008
Big Win for the Good Guys!
In an audacious rescue operation worthy of a Hollywood script, the Colombian military rescued three US Defense Contractors and twelve other hostages from the grips of the Marxist FARC. The three Americans, Marc Gonsalves, Keith Stansell, and Thomas Howes, were captured in 2003 while working for the Northrop Grumman Corporation after their surveillance plane went down on an antinarcotics mission.
To achieve the rescue, the Colombian military special operations forces poses as members of a Non-Governmental Organization (“NGO”) sympathetic to the Marxists, and conned the Marxists into giving the hostages over for a helicopter trip for additional humiliation.
What was telling about the whole thing is how easily Marxists guerillas believe that an NGO is sympathetic to them, and working with them. That is because nearly all NGOs are chuck full of Marxists, Communists, Socialists, and other America-haters. NGOs are loved by the despots at the UN, so much so, there is a special UN-NGO liaison office so NGOs can act as influencers at the UN. Of course, the United States funds the lion’s share of that UN office’s work.
But I digress. This duping of the Marxists freeing American citizens held for nearly five years is a huge win for the forces of freedom. The Marxist FARC has been taking it on the chin all year from Colombia President Alvaro Uribe, a true friend of the United States in Latin America.
There still remain hundreds of hostages held by the Marxists in Colombia. I pray that all of them will be safely released or rescued.
To achieve the rescue, the Colombian military special operations forces poses as members of a Non-Governmental Organization (“NGO”) sympathetic to the Marxists, and conned the Marxists into giving the hostages over for a helicopter trip for additional humiliation.
What was telling about the whole thing is how easily Marxists guerillas believe that an NGO is sympathetic to them, and working with them. That is because nearly all NGOs are chuck full of Marxists, Communists, Socialists, and other America-haters. NGOs are loved by the despots at the UN, so much so, there is a special UN-NGO liaison office so NGOs can act as influencers at the UN. Of course, the United States funds the lion’s share of that UN office’s work.
But I digress. This duping of the Marxists freeing American citizens held for nearly five years is a huge win for the forces of freedom. The Marxist FARC has been taking it on the chin all year from Colombia President Alvaro Uribe, a true friend of the United States in Latin America.
There still remain hundreds of hostages held by the Marxists in Colombia. I pray that all of them will be safely released or rescued.
RIP -- Jesse Helms
Former Senator Jesse Helms, as stalwart defender of Freedom as ever trod the halls of the United States Congress, passed away, fittingly, on July 4, 2008.
Jesse Helms was forefront on pushing back Communists, Marxists, and Socialists, often having to fight the US State Department to do so. Senator Helms was front and center on pointing out the corruption and uselessness of the United Nations. Senator Helms fought to fund pro-US fighters in what was always a hot "Cold War".
Jesse Helms also revivied the flagging campaign of Ronald Reagan in 1976, helping Reagan win North Carolina when Reagan was losing to Gerald Ford elsewhere. Gerald Ford's White House should never have snubbed Alexander Solzhenitsyn when Jesse Helms brought him to the US. Payback is Hell.
Senator Helms was persistent, consistent, principled, and tenacious. Oh, if only today's GOP could follow his example.
Jesse Helms was forefront on pushing back Communists, Marxists, and Socialists, often having to fight the US State Department to do so. Senator Helms was front and center on pointing out the corruption and uselessness of the United Nations. Senator Helms fought to fund pro-US fighters in what was always a hot "Cold War".
Jesse Helms also revivied the flagging campaign of Ronald Reagan in 1976, helping Reagan win North Carolina when Reagan was losing to Gerald Ford elsewhere. Gerald Ford's White House should never have snubbed Alexander Solzhenitsyn when Jesse Helms brought him to the US. Payback is Hell.
Senator Helms was persistent, consistent, principled, and tenacious. Oh, if only today's GOP could follow his example.
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