Capitalist Tools

Will You Be Able To See The Top In The Commodities Bubble?

2010-12-22T09:13:00.000-07:00

There will come a time when fear will be replaced by greed.

Today, and since this bull market began in 2001, fear has been the dominant emotion connected to it. Fear that comes from looking at governments going into massive debt around the world and with no real plans ever to get out of it. Fear that comes from a possible currency collapse, on a global scale. Fear that the only superpower, the U.S., has lost control of its finances and its future. And fear that we are all going into a dangerous new world.

But at some point, as the prices for gold and silver keep rising, fear will be replaced by greed.

The average person's biggest fear will be that he or she will be left behind if they don't buy. And they'll be buying at prices far higher than those prevailing today. Just you wait and see.

At some point in the future, it'll be those newly minted "true believers" that will be the most angry if and when I share my view that the great bull market may be over. However, we are far from that time now.

Good investing,
Capitalist Tools

Bar Stool Economics - A Simple Explanation - The Importance Of The Rich

2010-12-15T19:36:00.000-07:00

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.

The fifth would pay $1.

The sixth would pay $3.

The seventh would pay $7.

The eighth would pay $12.

The ninth would pay $18.

The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).

The sixth now paid $2 instead of $3 (33%savings).

The seventh now paid $5 instead of $7 (28%savings).

The eighth now paid $9 instead of $12 (25% savings).

The ninth now paid $14 instead of $18 (22% savings).

The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too.

It's unfair that he got ten times more than I got!"

"That's true!!" shouted the seventh man.

"Why should he get $10 back when I got only two?

"The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all.

"The system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important:

They didn't have enough money between all of them for even half of the bill!

And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore.

In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

For those who understand, no explanation is needed.

For those who do not understand, no explanation is possible.

A Look At The Obama Stimulus

2010-12-09T11:10:00.000-07:00

Budgets do not come from the White House. They come from Congress, and the party that controlled Congress since January 2007 is the Democrat Party. They controlled the budget process for FY 2008 and FY 2009, as well as FY 2010 and FY 2011. In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases.
For FY 2009 though, Nancy Pelosi and Harry Reid bypassed George Bush entirely, passing continuing resolutions to keep government running until Barack Obama could take office. At that time, they passed a massive omnibus spending bill to complete the FY 2009 budgets.
And where was Barack Obama during this time? He was a member of that very Congress that passed these massive spending bills and he signed the omnibus bill as President to complete FY 2009. Let's remember what the deficits looked like during that period:

If the Democrats inherited any deficit, it was the FY 2007 deficit, the last of the Republican budgets. That deficit was the lowest in five years, and the fourth straight decline in deficit spending. After that, Democrats in Congress took control of spending, and that includes Barack Obama, who voted for the budgets. If Obama inherited anything, he inherited it from himself.

In a nutshell, what Obama is saying is I inherited a deficit that I voted for and then I voted to expand that deficit four-fold since January 20th.

There is no way this will be widely publicized, unless each of us sends it on.

Tax Deal Does More Than Settle The Bush Tax Rate Question

2010-12-08T04:45:00.000-07:00

One of the best things to come out of the White House and Capitol Hill tax deal is that the liberals are apoplectic that there is no extension of the so called ”Build America Bonds.” These bonds are a rolling-state-government bailout mechanism that subsidizes the interest rate of state issued bonds. Essentially, these bonds put off the day of reckoning for the blue states that are in a terminal budget flat-spin.

This is a rolling bailout and you, the taxpayer, are on the hook and pay part of the interest to keep afloat states that have made terrible budgeting decisions. This decision by the federal government would force irresponsible states to resort to conventional bonding, without the federal government giving them preferential treatment. This only seems fair and conservatives need to make sure that Speaker of the House Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV) don’t sneak a provision reinstatement these bonds when the House and Senate consider the White House-Capitol Hill tax compromise.

The Los Angeles Times reports today that these tax-free municipal bonds are taking a hit on the market, because it looks like the federal government is going to end this program.

Market prices of tax-free municipal bonds took a hit on Tuesday, hurt by uncertainty over the fate of a federal subsidy program for muni issuers and by another general rise in interest rates. The Build America Bond program, which for the last two years has allowed state and local governments to issue taxable muni bonds with interest partly paid by Uncle Sam, may not be extended beyond Dec. 31. The program wasn’t included in the compromise tax-cut agreement reached between President Obama and Republican leaders. If the BAB program is terminated, it could mean that muni issuers that would otherwise have borrowed via the bonds in 2011 would be forced to issue conventional tax-free bonds instead — boosting the supply of those securities. Reacting to that possibility, some investors dumped longer-term tax-free muni issues on Tuesday, driving prices down and yields up. That showed in prices of popular muni bond mutual funds.

CNBC reports that these bonds have exploded since being included in the President’s Stimulus plan and account for over one quarter of the whole municipal bond market.

Since its introduction last year, the Build America program has come to account for about 26 percent of the muni-bond market, and October was its biggest month yet. One reason: Issuers were scrambling to take advantage of the program’s benefits—which include the federal government footing the bill for 35 percent of the bonds’ interest costs. Of course, demand for the bonds, now a significant cornerstone of the $2.8 trillion muni market, has also been strong.

These states are facing a crisis, so why should taxpayers subsidize these bonds? Why should somebody in a fiscally responsible state be paying for the big government policies in Illinois and California? The New York Times has a Sunday headline that reads: “Mounting Debts by States Stoke Fears of Crisis.”

Some of the same people who warned of the looming subprime crisis two years ago are ringing alarm bells again. Their message: Not just small towns or dying Rust Belt cities, but also large states like Illinois and California are increasingly at risk. Municipal bankruptcies or defaults have been extremely rare — no state has defaulted since the Great Depression, and only a handful of cities have declared bankruptcy or are considering doing so. But the finances of some state and local governments are so distressed that some analysts say they are reminded of the run-up to the subprime mortgage meltdown or of the debt crisis hitting nations in Europe.

Build America Bonds were not extended in the tax deal, despite pleas by the liberals to extend them. With the end of the Build America bond program, which the GOP has held firm to date, means that blue states that are spending beyond their means must face the music that much sooner.

The unions really want this and are expected to come to Capitol Hill begging to get this put back into the deal. They want to make sure that irresponsible states with huge liabilities to public union members, including over funded pension programs and higher than average salaries, don’t get renegotiated by financially distressed states.

Conservatives need to make sure that this bailout program is not extended. Red state taxpayers are paying the tab for irresponsible blue states. The Build Bailout America Bonds experiement was a failure and it is time to end this fiscally irresponsible program.

The Case For Nationalizing The Fed

2010-12-07T03:49:00.001-07:00

Bernanke Lent Big to Foreign Zombie Banks, Hedge Fund Hyenas - Nationalize the Fed and Use the $3.3 Trillion To Start Creating 30 Million Jobs

Sure We Won't

2010-10-15T09:56:00.001-06:00

http://blog.themistrading.com/?p=1630

He also said "There is a myth out there that we are printing money. We are not printing money." CBS - 60 Minutes 12/5/10

Why would the Fed waste time printing when all they have to do is push some computer keys and add billions of digital dollars to any large bank they choose?

Bend Over America, The Fed Is Driving!

WSJ - Real Estate In Peril

2010-10-07T06:17:00.000-06:00

"Loan chaos may pose wider peril," by Brady Dennis and Ariana Eunjung Cha:

"Millions of U.S. mortgages have been shuttled around the global financial system ... without the documents that traditionally prove who legally owns the loans. Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title. These fundamental concerns over ownership extend beyond those that surfaced over the past two weeks amid reports of fraudulent loan documents and corporate 'robo-signers.' ... For struggling homeowners trying to avoid foreclosure, it could mean an opportunity to challenge the banks ... But it also threatens to leave them in prolonged limbo, stuck in homes they still can't afford... For the fragile housing market, ... it could mean gridlock and confusion for years. And there is concern in Washington that if the real estate market and financial institutions suffer harm, it could force the government to step in again" http://wapo.st/cIduRG

2010 Elections Guarantee Gridlock, Anti-Capitalist Class War

2010-10-02T17:32:00.000-06:00

Admit it, something historic is brewing. And yes, it’s good for America, even the anarchy. Revolution is renewal. Tea Party members want to take on both parties, “restore honor” and “take back the country.” Bring it on, the feeling’s mutual.

The Tea Party is kicking the revolution into high gear. Debt is sinking America. Both parties are to blame. So vote out incumbents. Spare no one. We need new leadership, another Reagan or Truman. Congress better get the message: Cut that budget, or they’ll dump the rest of you in the coming Great Purge of 2012.OK, maybe most Americans just silently mimic the words, “we’re mad as hell, won’t take it any more.” But watch out: After November the campaign’s shrill rhetoric explodes into action.

Unfortunately they’re tone deaf. Congress cannot see past the election. All that changes in November.

So thanks Tea Party, Vegas odds must favor a Second American Revolution. Actually, the revolution is already roaring, hot, it’s about time. The GOP and the Dems had more than a decade. But America’s worse off. We need a real revolution to restore sanity … or we can kiss democracy and capitalism good-bye, permanently.

Warning: Another revolution will cost investors 20% more losses

Yes, big warning, the Second American Revolution will extract painful austerity, not the “happy days are here again” future touted by tea-baggers. For years it’ll be impossible for most of America’s 95 million investors to develop a successful investment or logical retirement strategy.

Why? Political chaos will translate into extreme volatility and a highly unpredictable stock market. Result: Wall Street will lose another 20% of the value of your retirement portfolio in the next decade, just as Wall Street did the last decade. So if you think you’re “mad as hell” now, “you ain’t seen nuthin’ yet!”

Here’s the timeline:

Stage 1: The Dems just put the nail in their coffin by confirming they are wimps, refusing to force the GOP to filibuster the Bush tax cuts for America’s richest.

Stage 2: The GOP takes over the House, expanding its war to destroy Obama with its new policy of “complete gridlock,” even “shutting down government.”

Stage 3: Obama goes lame-duck.

Stage 4: The GOP wins back the White House and Senate in 2012. Health care returns to insurers. Free market financial deregulation returns.

Stage 5: Under the new president, Wall Street’s insatiable greed triggers the catastrophic third meltdown of the 21st century Shiller predicted, with defaults on dollar-denominated debt.

Stage 6: The Second American Revolution explodes into a brutal full-scale class war rebelling against the out-of-touch, out-of-control greedy conspiracy-of-the-rich now running America.

Stage 7: Domestic class warfare is compounded by Pentagon’s prediction that by 2020 “an ancient pattern of desperate, all-out wars over food, water, and energy supplies would emerge” worldwide and “warfare is defining human life.”

What’s behind our 2010-2020 countdown? It became obvious after reading the brilliant but bleak “Decadence of Election 2010” report by Prof. Peter Morici, former chief economist at the International Trade Commission. He sees no hope from America’s political parties, just a dark scenario ahead.

Here's the ten points we see in his message:

1. Expect nothing positive from Dems, the GOP or Tea Party

Yes, we’re all “justifiably ticked off.” But “Democrats, Republicans, and yes the Tea Party offer little that is encouraging.” Earlier Morici warned: “Democratic capitalism is in eclipse. … Politicians have deceived voters,” and are “suffering from delusions of grandeur, self deception and good old-fashioned abuse.”

2. Democracy has become too-big-to-govern … by anyone

“The current economic quagmire is a bipartisan creation.” Bush failures led to a “Great Recession … reckless Wall Street pay and fraud, a breakdown in sound lending standards by Fannie Mae, Freddie Mac … Countrywide, and a huge trade deficit with China and on oil” leaving “Beijing and Middle East royals with trillions of U.S. dollars that they invested foolishly” in bonds “financing the housing and commercial real estate bubbles.”

3. Clinton, Bush, Obama policies all feeding revolutionary flames

Even before Bush, “all was set in motion by bank deregulation engineered by Clinton … Secretaries Robert Rubin and Lawrence Summers … Clinton’s deal to admit China into the World Trade Organization” handed “China free access to U.S. markets” while blocking exports. Earlier Dems blocked “domestic oil and gas development” and froze “auto mileage standards.” Obama “finally imposed higher mileage requirements,” but after pushing offshore drilling, he “punished the entire petroleum industry” for the BP disaster.

4. Bush’s biggest mistake: Goldman CEO Hank Paulson

Morici admits: If Bush is “culpable for anything, it was to not see the gathering storm on Wall Street.” Worse, his Treasury picks were disasters: [John] Snow was clueless, Paulson devious. He conned a clueless Congress into bailout trillions, “believing banks could borrow at 3% and lend at 5 and pay MBAs three years out of school five-million-dollar bonuses to create mortgage backed securities.” Greed drove the Bush Treasury.

5. All partisan political leaders are destined to sabotage America

One thing is clear to Morici: Not only were America’s leaders a “bunch of second-rate incompetents” on both the Clinton and Bush teams, “Obama’s ratcheting up government spending and taxes won’t fix what’s broke, and neither will the GOP prescription of tax cuts and deregulation.” Get it? Democracy is in a classic double-bind, no-win scenario.

6. America’s democratic capitalism trapped in systemic failure

Morici simply dismisses “Obama’s two signature initiatives -- health-care reform and financial services reregulation.” They “simply don’t work.” Why? Politicians “failed to address the root problem, Americans pay 50% more for doctors, hospitals and drugs, than subscribers to national health plans in Germany, France and other decadent socialist European countries.” Yet, insurers hate reform, will self-destruct America first.

7. Wall Street’s insatiable greed is a virus that never sleeps

Wall Street banks are “back to their old tricks,” warns Morici, “hustling municipal governments into the kind of quick-fix budget schemes, like selling parking meters and airport fees.” Why? Wall Street’s “hustling shoddy corporate bonds that lack adequate collateral and may never be repaid” to justify their absurd mega-bonuses. And they’ll keep doing it till the revolution creates a new non-capitalist banking system.

8. New political leaders offer no hope -- Wall Street rules America

GOP’s next leaders will fail: “Cutting taxes and mindless deregulation are not the answer.” We need the revenue. They have no real plan to trim “$1 trillion from federal spending … few believe deregulation will fix health care or Wall Street.” The GOP has no “effective government solutions to health care, Wall Street, fixing trade with China, and dependence on foreign oil.” And the Tea Party “only offers a purer form of failed Republicanism. Tax and spend less, and turn the country over to the robber barons.”

9. Praying for a messiah, we’re sleepwalking till the revolution

Morici’s solution: America “needs a prophet, another Harry Truman or Ronald Reagan.” But we’ll never get one, until a catastrophe hits. Wall Street’s so greedy, so corrupt, so untouchable, so much in control, they will bankroll and control all future “prophets.”

10. The Second American Revolution coming

Yes, extreme austerity: “Americans must accept fewer government-paid benefits -- for the rich, the poor and those in between -- and must acknowledge the market works best most of the time, but it is not working in health care, banking, China, and oil.” Huh? Sounds like classic economist’s double-speak: “The market works most of the time” … except the market doesn’t work at all in the four biggest economic sectors? Fuzzy thinking?

Morici warns, we need “new approaches to regulating, yes regulating, what the medical industry charges, bankers pay themselves, what Americans tolerate and buy” and “guiding big oil and car companies to sustainable solutions.”

Holy cow, he suddenly sounds more like a liberal politician than conservative economist. Yes, he’s reflecting the total chaos coming on the short road to the Second American Revolution.

In the end, however, you have to admit the good professor does make a lot of sense: “Sounds radical but running the world has never been a choice between statism and anarchy,” says Morici.

Choice? Unfortunately, he offers a false choice: Running America effectively means accepting “that the private sector is not the enemy and government is not evil, but neither can serve the other, and us, if value is not seen in each.”

Laudable, but impossible because once the GOP Tea Party of No-No is back in power, compromising is not on their agenda, “gridlock” is. So anarchy is the only choice -- they will never, never work with Democrats … until forced by the Second America Revolution when the middle class finally rises up and overthrows the greedy wealth conspiracy of Wall Street, Washington, CEOs and the Forbes 400.

Till then, anarchy rules as the conspiracy keeps looting Treasury, stealing from taxpayers, conning us all

Federal Agencies Are Nothing More Than Taps (drain valves) On The US Treasury

2010-10-01T17:09:00.000-06:00

The Following Is But A Partial List Of "Taps" Into The Federal Treasury

Department of Veterans Affairs (VA)

Drug Enforcement Administration

Employment and Training Administration (ETA)

Employment Standards Administration (ESA)

Environmental Protection Agency (EPA)

Equal Employment Opportunity Commission (EEOC)

Farm Credit Administration (FCA)

Federal Aviation Administration (FAA)

Federal Communications Commission (FCC)

Federal Deposit Insurance Commission (FDIC)

Federal Election Commission (FEC)

Federal Energy Regulatory Commission (FERC)

Energy Efficiency and Renewable Energy (EREN)

Federal Highway Administration (FHA)

Federal Maritime Commission (FMC)

Federal Railroad Administration (FRA)

Federal Trade Commission

Nuclear Regulatory Commission

Securities and Exchange Commission

White House List of Agencies and Commissions

Corporate America, special interests (unions) and even certain individuals have all used these drain valves to separate American taxpayers from the money they pay faithfully into the US Treasury each year.

As we come closer to the mid-term elections, look at this list and begin to think of all the incumbent politicians up for re-election who have helped create these drain valves over the years. Find out if your Congressional representative or Senator can be linked to donations from special interests and then to the creation of one or more siphons on the tax dollars we pay. I'll bet almost all of them have connections.

This isn't a Republican or Democrat problem, this is an American problem.

It's your money, America. Turn off the tap. We can't afford to allow it to be siphoned off anymore.

Follow The Money - How Obama & His Cronies Are Draining The Treasury

2010-09-23T09:11:00.002-06:00

This is a perfect example why many refrain from watching the news on ABC, NBC, CBS, or MSNBC.

On a segment of the "Glenn Beck Show" on FOX (Fox Cable News) was the following:

Today, even though President Obama is against offshore drilling for our country, he signed an executive order to loan 2 Billion of our taxpayer dollars (which we can't afford to loan since we're broke) to a Brazilian Oil Exploration Company (the 8th largest company in the entire world) to drill for oil off the coast of Brazil! The oil that comes from this operation is for the sole purpose and use of China and NOT THE USA !

Now here's the real clincher...the Chinese government is under contract to purchase all the oil that this oil field will produce, which is hundreds of millions of barrels"..

We have absolutely no gain from this transaction whatsoever!

Wait, it gets more interesting.

Guess who is the largest individual stockholder of this Brazilian Oil Company and who would benefit most from this? It is American BILLIONAIRE, George Soros, who was President Obama's most generous financial supporter during his campaign. If you are able to connect the dots and follow the money, you are probably as upset as I am. Not a word of this transaction was broadcast on any of the other news networks! Are they doing their job? Think about it.

Below is the Wall street Journal article to confirm this.

http://online.wsj.com/article/SB10001424052970203863204574346610120524166.html

Soros Warns Of Gold Bubble

2010-09-20T09:13:00.002-06:00

Better Sell Your Home Before 2013 - Or Vote Out The Democrats On November 2nd

2010-09-13T03:54:00.001-06:00

Another Obama Nightmare

Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?

That's $3,800 on a $100,000 home etc.

When did this happen? It's in the healthcare bill. Just thought you should know.

SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)

REAL ESTATE SALES TAX

So, this is "change you can believe in"?

Under the new health care bill - did you know that all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 (presumably after obama's re-election). You can thank Nancy, Harry and Barack and your local Democrat Congressman for this one. If you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Is this Hope & Change great or what? Does this stuff makes your November and 2012 votes more important?

Oh, you weren't aware this was in the obamacare bill? Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either (result of clandestine midnight voting for huge bills they've never read). AND, there are a few other surprises lurking.

Why am I sending you this? The same reason I hope you forward this to every single person in your address book.
People have the right to know the truth because an election is coming in November!

He Said His Name Was "Bubba"

2010-08-24T10:19:00.000-06:00

His name was Bubba, he was from Mississippi ..... And he needed a loan, so.......he walked into a bank in New York City and asked for the loan officer. He told the loan officer that he was going to Paris for an international redneck festival for two weeks and needed to borrow $5,000 and that he was not a depositor of the bank.

The bank officer told him that the bank would need some form of security for the loan, so the Redneck handed over the keys to a new Ferrari. The car was parked on the street in front of the bank. The Redneck produced the title and everything checked out. The loan officer agreed to hold the car as collateral for the loan and apologized for having to charge 12% interest.

Later, the bank's president and its officers all enjoyed a good laugh at the Redneck from the south for using a $250,000 Ferrari as collateral for a $5,000 loan. An employee of the bank then drove the Ferrari into the bank's private underground garage and parked it.

Two weeks later, the Redneck returned, repaid the $5,000 and the interest of $23.07.

The loan officer said, "Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out on Dunn & Bradstreet and found that you are a Distinguished Alumni from Ole Miss University , a highly sophisticated investor and Multi-Millionaire with real estate and financial interests all over the world. Your investments include a large number of wind turbines around Sweetwater, Texas.

What puzzles us is why would you bother to borrow $5,000?"

The good 'ole boy replied, "Where else in New York City can I park my car for two weeks for only $23.07 and expect it to be there when I return?"

His name was BUBBA....

(Keep An Eye On Those Southern Boys)

The Taxpayer Gets Taken - Crime, Inc.

2010-08-21T08:22:00.000-06:00

ShoreBank of Chicago Said to Be Closed Today by FDIC

By James Sterngold - Aug 20, 2010 4:08 PM MT

The Federal Deposit Insurance Corp. will shut down ShoreBank Corp., according to people with direct knowledge of the matter. Photographer: Andrew Harrer/Bloomberg

ShoreBank Corp., the Chicago lender operating under a Federal Deposit Insurance Corp. cease-and- desist order for 13 months, will be shut and most of its assets will be bought by Urban Partnership Bank, two people with direct knowledge of the matter said.

Urban Partnership, created to make the acquisition, will keep branches in Chicago, Cleveland and Detroit and continue to focus on low-income communities, the people said, speaking anonymously because the matter is private. Urban Partnership will have Tier 1 capital of at least 8 percent and its chief executive officer will be William Farrow, a former executive at the Chicago Board of Trade and Bank One Corp., they said.

“The good news is that the bank, under this new management, will still be there and serving the South Side community,” said Dory Rand, president of the Chicago-based Woodstock Institute, a non-profit that studies community lending. “They have made the South Side a decent place to live and work and do business.”

Investors include Goldman Sachs Group Inc., General Electric Co., JPMorgan Chase & Co.,Citigroup Inc. and several philanthropic groups, the people said. ShoreBank raised more than $145 million from the firms in May and the funds were placed in escrow pending a decision by the U.S. Treasury to provide another $75 million in bank bailout funds.

Capital Shrinks

The bank kept losing money and the government elected not to provide more capital, people with knowledge of the rescue efforts said. The private capital will now be used for Urban Partnership, the person with direct knowledge of the matter said.

ShoreBank was founded in 1973 in Chicago’s South Side, an area that includes some of the city’s lowest-income neighborhoods. The area is also home to enclaves of wealth such as President Barack Obama’s Kenwood neighborhood, close to the University of Chicago.

The bank’s Tier 1 capital shrank to $4.1 million at the end of June from $26.3 million on March 31 and $43.5 million at the end of last year, according to the FDIC. The bank had “engaged in unsafe or unsound banking practices,” the FDIC said in its order last July. In March, ShoreBank was ordered by the FDIC to boost capital within 60 days, a deadline it missed.

ShoreBank posted a $119 million loss in 2009 and a $39.6 million loss in the first half of this year, according to FDIC figures. It had a net loss of $9.3 million in 2008.

Representative Spencer Bachus, the ranking Republican on the House Financial Services Committee, said in May that firms that had banded together in an attempt to save ShoreBank were making the investments to gain favor the Obama administration.

The Next Chapter - Crime, Inc.

2010-08-21T08:18:00.000-06:00

Lenders Agree to Prop Up Ailing ShoreBank

By Charlie Gasparino

Published May 17, 2010

| FOXBusiness

Some of the nation's largest banks have agreed to contribute enough money to save Chicago-based ShoreBank, the community lender with strong ties to the Obama administration, FOX Business has learned.

The banks have agreed to contribute $140 million to bail out the bank, while the federal government will donate tens of millions more, according to people close to the talks. In addition to major Wall Street firms like Goldman Sachs (GS: 148.13 ,+1.03 ,+0.70%), which agreed to contribute $20 million to the bailout effort, as well as Citigroup (C: 3.76 ,-0.04 ,-1.05%) and JPMorgan (JPM: 37.14 ,+0.05 ,+0.13%), General Electric's (GE: 15.03 ,-0.22 ,-1.44%) GE Capital will also contribute $20 million to the rescue effort. All the firms have either received massive government assistance during the financial crisis or, in the case of Goldman Sachs, are facing multiple regulatory investigations into their business practices.

The bailout has been controversial. Senior Obama adviser Valerie Jarrett served on a Chicago civic organization with a director of the bank, and President Obama himself has singled out the bank for praise in lending to low-income communities.

But the bank has made its share of bad bets, and some of the Wall Street firms that have given money have said they've received political pressure to contribute to the bailout of a business that under normal circumstances would have been left to fail.

It's still unclear how much the federal government will contribute to save the bank because it's unclear exactly how much is needed to save the institution, which without the bailout would have been taken over by the FDIC.

So, You Think you Know The Truth About Crime, Inc.?

2010-08-04T14:23:00.003-06:00

So . . . you think you know quite a bit about Obama and his band of thieves.
You don't know the whole story yet. Read on as it all comes together in the last part........ a must read.

And, they said Glenn Beck was a crazy conspiracy theorist and alarmist loon!

This is an interesting story put together from various articles and TV shows by the British Times paper. It shows what Obama and his friends are really all about. It's not hope and change, it is BIG money.
I warn you, the first part is a little boring, but stick with it. The second part connects all the dots for you (it will open your eyes). The end explains how Obama and all his cronies will end up asmulti-billionaires. (It's definitely worth the read. You will not be disappointed).

It's fairly clear why he could care less about ANY effect of his presidency on US or what history will say about him. He's is in it for the CASH!!
A small bank in Chicago called SHOREBANK almost went bankrupt during the recession. The bank made a profit on its foreign micro-loans (see below) but had lost money in sub-prime mortgages in the US. It was facing likely closure by federal regulators. However, because the bank's executives were well connected with members of the Obama Administration, a private rescue bailout was arranged. The bank's employees had donated money to Obama's Senate campaign. In other words, ShoreBank was too politically connected to be allowed to go under.
ShoreBank survived and invested in many "green" businesses such as solar panel manufacturing. In fact, the bank was mentioned in one of Obama's speeches during his election campaign because it subjected new business borrowers to eco-litmus tests.
Prior to becoming President, Obama sat on the board of the JOYCE FOUNDATION, a liberal charity. This foundation was originally established by Joyce Kean's family which had accumulated millions of dollars in the lumber industry. It mostly gave funds to hospitals but after her death in 1972, the foundation was taken over by radical environmentalists and social justice extremists.
This JOYCE FOUNDATION, which is rumored to have assets of 8 billion dollars, has now set up and funded, with a few partners, something called the CHICAGO CLIMATE EXCHANGE, known as CXX. It will be the exchange (like the Chicago Grain Futures Market for agriculture) where Environmental Carbon Credits are traded.
Under Obama's new bill, businesses in the future will be assessed a tax on how much CO2 they produce (their Carbon Footprint) or in other words how much they add to global warming. If a company produces less CO2 than their allotted measured limit, they earn a Carbon Credit. This Carbon Credit can be traded on the CXX exchange. Another company, which has gone over their CO2 limit, can buy the Credit and "reduce" their footprint and tax liability. It will be like trading shares on Wall Street.
Well, it was the same JOYCE FOUNDATION, along with some other private partners and Wall Street firms that funded the bailout of ShoreBank. The foundation is now one of the major shareholders. The bank has now been designated to be the "banking arm" of the CHICAGO CLIMATE EXCHANGE (CXX). In addition, Goldman Sachs has been contracted to run the investment trading floor of the exchange.
So far so good; now the INTERESTING parts.
One ShoreBank co-founder, named Jan Piercy, was a Wellesley College roommate of Hillary Clinton. Hillary and Bill Clinton have long supported the bank and are small investors.
Another co-founder of Shorebank, named Mary Houghton, was a friend of Obama's late mother. Obama's mother worked on foreign MICRO-LOANS for the Ford Foundation. She worked for the foundation with a guy called Geithner. Yes, you guessed it. This man was the father of Tim Geithner, our present Treasury Secretary, who failed to pay all his taxes for two years.
Another founder of ShoreBank was Ronald Grzywinski, a cohort and close friend of Jimmy Carter.
The former ShoreBank Vice Chairman was a man called Bob Nash. He was the deputy campaign manager of Hillary Clinton's presidential bid. He also sat on the board of the Chicago Law School with Obama and Bill Ayers, the former terrorist. Nash was also a member of Obama's White House transition team.
(To jog your memories, Bill Ayers is a Professor at the University of Illinois at Chicago. He founded the Weather Underground, a radical revolutionary group that bombed buildings in the 60s and 70s. He had no remorse for those who were killed, escaped jail on a technicality, and is still an admitted Marxist).
When Obama sat on the board of the JOYCE FOUNDATION, he "funneled" thousands of charity dollars to a guy named John Ayers, who runs a dubious education fund. Yes, you guessed it. The brother of Bill Ayers, the terrorist.
Howard Stanback is a board member of Shorebank. He is a former board chairman of the Woods Foundation. Obama and Bill Ayers, the terrorist, also sat on the board of the Woods Foundation. Stanback was formerly employed by New Kenwood Inc. a real estate development company co-owned by Tony Rezko.
(You will remember that Tony Rezko was the guy who gave Obama an amazing sweet deal on his new house. Years prior to this, the law firm of Davis, Miner, Barnhill & Galland had represented Rezko's company and helped him get more than 43 million dollars in government funding. Guess who worked as a lawyer at the firm at the time. Yes, Barack Obama).
Adele Simmons, the Director of ShoreBank, is a close friend of Valerie Jarrett, a White House senior advisor to Obama. Simmons and Jarrett also sit on the board of a dubious Chicago Civic Organization.
Van Jones sits on the board of ShoreBank and is one of the marketing directors for "green" projects. He also holds a senior advisor position for black studies at Princeton University. You will remember that Mr. Van Jones was appointed by Obama in 2009 to be a Special Advisor for Green Jobs at the White House. He was forced to resign over past political activities, including the fact that he is a Marxist.
Al Gore was one of the smaller partners to originally help fund the CHICAGO CLIMATE EXCHANGE. He also founded a company called Generation Investment Management (GIM) and registered it in London, England. GIM has close links to the UK-based Climate Exchange PLC, a holding company listed on the London Stock Exchange. This company trades Carbon Credits in Europe (just like CXX will do here) and its floor is run by Goldman Sachs.
Along with Gore, the other co-founder of GIM is Hank Paulson, the former US Treasury Secretary and former CEO of Goldman Sachs. His wife, Wendy, graduated from and is presently a Trustee of Wellesley College. Yes, the same college that Hillary Clinton and Jan Piercy, a co-founder of Shorebank attended. (They are all friends).
Interesting? And now the closing...
Because many studies have been exposed as scientific nonsense,people are slowly realizing that man-made global warming is nothing more than a money-generating hoax. As a result, Obama is working feverishly to win the race. He aims to push a Cap-and-Trade Carbon Tax Bill through Congress and into law.
Obama knows he must get this passed before he loses his majority in Congress in the November elections. Apart from Climate Change he will "sell" this bill to the public as generating tax revenue to reduce our debt. But, it will also make it impossible for US companies to compete in world markets and drastically increase unemployment. In addition, energy prices (home utility rates) will sky rocket.
But, here's the KICKER (THE MONEY TRAIL).
If the bill passes, it is estimated that over 10 TRILLION dollars each year will be traded on the CXX exchange. At a commission rate of only 4 percent, the exchange would earn close to 400 billion dollars to split between its owners, all Obama cronies. At a 2 percent rate, Goldman Sachs would also rake in 200 billion dollars each year.
But don't forget SHOREBANK. With 10 trillion dollars flowing though its accounts, the bank will earn close to 40 billion dollars in interest each year for its owners (more Obama cronies), without even breaking a sweat.
It is estimated Al Gore alone will probably rake in 15 billion dollarsjust in the first year. Of course, Obama's "commissions" will be held in trust for him at the Joyce Foundation. They are estimated to be over 8 billion dollars by the time he leaves office in 2013, if the bill passes this year. Of course, these commissions will continue to be paid for the rest of his life.
Some financial experts think this will be the largest "scam" or"legal heist" in world history. Obama's cronies make the Mafia look like rank amateurs. They will make Bernie Madoff's fraud look like penny ante stuff.

These people are MASTER CRIMINALS operating with our TAX DOLLARS and skimming off the top for their personal retirement accounts!!

Sometimes A Good Lawyer Is Priceless

2010-07-25T12:27:00.000-06:00

Gotta Love This Lawyer

Part of rebuilding New Orleans caused residents often to be challenged with the task of tracing home titles back potentially hundreds of years. With a community rich with history stretching back over two centuries, houses have been passed along through generations of family, sometimes making it quite difficult to establish ownership. Here's a great letter an attorney wrote to the FHA on behalf of a client:

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down After sending the information to the FHA, he received the following reply.
(Actual reply from FHA):

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."

Annoyed, the lawyer responded as follows:
(Actual response):

"Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application. For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus's expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana . God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory. Now, may we have our loan?"

The loan was immediately approved !

Asia Rising

2010-07-10T13:21:00.001-06:00

The West is in decline. Asia is on the rise.

Take a peek at the brand new Marina Bay Sands Hotel in Singapore...

The enormous hotel, which dominates the Singapore skyline, has 2,560 rooms and suites, a fleet of celebrity chef restaurants, shopping areas, theatres, a museum, a casino and a crystal pavilion.

The resort is set to employ 10,000 people directly and generate up to £48million each year. Entrance to the casino alone is nearly £50 a day - but an average of 25,000 people have visited the casino daily since its initial phased opening two months ago.

Thomas Arasi, president and chief executive officer of the resort, said he expects to attract an astonishing 70,000 visitors a day, 18 million a year.
The resort was designed by Moshe Safdie, who said he based it on a deck of cards.

2010-07-08T19:28:00.000-06:00

Attorney General Eric Holder signaled that the Justice Department may be conducting a sweeping criminal investigation into the Gulf Coast oil spill, saying that its suspected targets may cover more than just BP. "There are a variety of entities and a variety of people who are the subjects of that investigation," Holder told CBS's Bob Schieffer at the Aspen Ideas Festival in Colorado. "For people to conclude that BP is the focus of this investigation might not be correct." Saying the investigation was "ongoing," Holder added that there has been a "certain commonality of the way oil companies had been operating" in the Gulf. (talk about the pot calling the kettle black) - is that racist?

Banking Reform On Thin Ice

2010-06-28T11:20:00.001-06:00

BYRD'S LOSS THREATENS WALL STREET REFORM -- “Massachusetts Sen. Scott Brown, one of four Republicans who voted for the original bill, has said he might vote against the [conference] version because it adds a $19 billion bank tax. Should Brown vote no and with the loss of Senator Byrd, it would leave the bill one vote shy of the 60 needed to close debate and move to final passage. The 92-year-old Byrd was elected to the Senate in 1958 after six years in the House. He's president pro tempore of the Senate, putting him fourth in line for the presidency, behind Vice President Joe Biden and House Speaker Nancy Pelosi (D-Calif.). If Byrd is unable to continue in office, under West Virginia law Gov. Joe Manchin, a Democrat, would appoint a successor to finish Byrd's Senate term, ending in 2013.”

SCOTT BROWN IS LEANING “NO” -- “Scott Brown has never voted for a tax increase, and this certainly is one, to the tune of $19 billion,” based on “assessments” and “fees” in the conference report. He calls that a “bank tax” that would be passed on to consumers, and says all Republicans on the conference committee voted against it.

Illegal Immigration In California - Cause & Effect

2010-06-09T20:55:00.003-06:00

Just One State - be sure and read the last part..

California

This is only one State.................If this doesn't open eyes, nothing will!
From the L A. Times:

1. 40% of all workers in L. A. County ( L. A. County has 10.2 million people) are working for cash and not paying taxes. This is because they are predominantly illegal immigrants working without a green card.
2. 95% of warrants for murder in Los Angeles are for illegal aliens.
3. 75% of people on the most wanted list in Los Angeles are illegal aliens.
4. Over 2/3 of all births in Los Angeles County are to illegal alien Mexicans on Medi-Cal, whose births were paid for by taxpayers.
5. Nearly 35% of all inmates in California detention centers are Mexican nationals here illegally.
6. Over 300,000 illegal aliens in Los Angeles County are living in garages.
7. The FBI reports half of all gang members in Los Angeles are most likely illegal aliens from south of the border.
8 Nearly 60% of all occupants of HUD properties are illegal.
9. 21 radio stations in L. A. are Spanish speaking.
10. In L. A. County 5.1 million people speak English, 3.9 million speak Spanish.. (There are 10.2 million people in L. A. County)

(All 10 of the above facts were published in the Los Angeles Times)

Less than 2% of illegal aliens are picking our crops, but 29% are on some type of welfare or assistance. Over 70% of the United States ' annual population growth (and over 90% of California , Florida , and New York ) results from immigration. 29% of inmates in federal prisons are illegal aliens .

Now, maybe you understand why Arizona passed their own immigration law.

HOW CAN YOU HELP ?

Send copies of this post to at least two other people. 100 would be even better. Find out where every politician stands on this issue and vote accordingly. WE ARE LOSING OUR NATION!!

Vote 'Em All Out

2010-06-09T12:50:00.001-06:00

Democrats Vote Down 5 Percent Rule

In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained, "passage of such a requirement would restrict home ownership to only those who can afford it."
I can't add anything to this.

The Greatest Generation Speaks Out

2010-05-28T09:24:00.000-06:00

WOW !! WOW !! AND WOW AGAIN !!
95 year old hero!

Letter to Obama at Whitehouse Sent from 95 year Old Pearl Harbor Survivor !! Fantastic!!

WW II Battleship sailor tells Obama to shape up or ship out !

This venerable and much honored WW II vet is well known in Hawaii
for his seventy-plus years of service to patriotic organizations and causes all over the country. A humble man without a political bone in his body, he has never spoken out before about a government official, until now. He dictated this letter to a friend, signed it and mailed it to the president.

Dear President Obama,

My name is Harold Estes, approaching 95 on December 13 of this year. People meeting me for the first time don't believe my age because I remain wrinkle free and pretty much mentally alert.

I enlisted in the U.S. Navy in 1934 and served proudly before, during and after WW II retiring as a Master Chief Bos'n Mate. Now I live in a "rest home" located on the western end of Pearl Harbor, allowing me to keep alive the memories of 23 years of service to my country.

One of the benefits of my age, perhaps the only one, is to speak my mind, blunt and direct even to the head man.

So here goes.

I am amazed, angry and determined not to see my country die before I do, but you seem hell bent not to grant me that wish.

I can't figure out what country you are the president of.
You fly around the world telling our friends and enemies despicable lies like:
" We're no longer a Christian nation"
" America is arrogant" - (Your wife even
announced to the world," America is mean-
spirited. " Please tell her to try preaching
that nonsense to 23 generations of our
war dead buried all over the globe who
died for no other reason than to free a
whole lot of strangers from tyranny and
hopelessness.
I'd say shame on the both of you, but I don't think you like America, nor do I see an ounce of gratefulness in anything you do, for the obvious gifts this country has given you. To be without shame or gratefulness is a dangerous thing for a man sitting in the White House.

After 9/11 you said," America hasn't lived up to her ideals."

Which ones did you mean? Was it the notion of personal liberty that 11,000 farmers and shopkeepers died for to win independence from the British? Or maybe the ideal that no man should be a slave to another man, that 500,000 men died for in the Civil War? I hope you didn't mean the ideal 470,000 fathers, brothers, husbands, and a lot of fellas I knew personally died for in WWII, because we felt real strongly about not letting any nation push us around, because we stand for freedom.

I don't think you mean the ideal that says equality is better than discrimination. You know the one that a whole lot of white people understood when they helped to get you elected.

Take a little advice from a very old geezer, young man.

Shape up and start acting like an American. If you don't, I'll do what I can to see you get shipped out of that fancy rental on Pennsylvania Avenue. You were elected to lead not to bow, apologize and kiss the hands of murderers and corrupt leaders who still treat their people like slaves.

And just who do you think you are telling the American people not to jump to conclusions and condemn that Muslim major who killed 13 of his fellow soldiers and wounded dozens more. You mean you don't want us to do what you did when that white cop used force to subdue that black college professor in Massachusetts , who was putting up a fight? You don't mind offending the police calling them stupid but you don't want us to offend Muslim fanatics by calling them what they are, terrorists.

One more thing. I realize you never served in the military and never had to defend your country with your life, but you're the Commander-in-Chief now, son. Do your job. When your battle-hardened field General asks you for 40,000 more troops to complete the mission, give them to him. But if you're not in this fight to win, then get out. The life of one American soldier is not worth the best political strategy you're thinking of.

You could be our greatest president because you face the greatest challenge ever presented to any president.
You're not going to restore American greatness by bringing back our bloated economy. That's not our greatest threat. Losing the heart and soul of who we are as Americans is our big fight now.
And I sure as hell don't want to think my president is the enemy in this final battle...

Sincerely,
Harold B. Estes
Snopes confirms as true:

http://www.snopes.com/politics/soapbox/haroldestes.asp

When a 95 year old hero of the "the Greatest Generation" stands up and speaks out like this, I think we owe it to him to send his words to as many Americans as we can.

A Lesson In Business Models - Political Science For Dummies

2010-05-22T08:08:00.001-06:00

Political Science for Dummies

DEMOCRAT	You have two cows. Your neighbor has none. You feel guilty for being successful. You push for higher taxes so the government can provide cows for everyone.
REPUBLICAN	You have two cows. Your neighbor has none. So what?
SOCIALIST	You have two cows. The government takes one and gives it to your neighbor. You form a cooperative to tell him how to manage his cow.
COMMUNIST	You have two cows. The government seizes both and provides you with milk. You wait in line for hours to get it. It is expensive and sour.
CAPITALISM, AMERICAN STYLE	You have two cows. You sell one, buy a bull, and build a herd of cows.
BUREAUCRACY, AMERICAN STYLE	You have two cows. Under the new farm program the government pays you to shoot one, milk the other, and then pour the milk down the drain.
AMERICAN CORPORATION	You have two cows. You sell one, lease it back to yourself and do an IPO on the 2nd one. You force the two cows to produce the milk of four cows. You are surprised when one cow drops dead. You spin an announcement to the analysts stating you have downsized and are reducing expenses. Your stock goes up.
FRENCH CORPORATION	You have two cows. You go on strike because you want three cows. You go to lunch and drink wine. Life is good.
JAPANESE CORPORATION	You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk. They learn to travel on unbelievably crowded trains and vacation in Hawaii. Most are at the top of their class at bovine school.
GERMAN CORPORATION	You have two cows. You engineer them so they are all blond, drink lots of beer, give excellent quality milk, and run a hundred miles an hour. Unfortunately they also demand 13 weeks of vacation per year.
ITALIAN CORPORATION	You have two cows but you don't know where they are. You break for lunch. Life is good.
RUSSIAN CORPORATION	You have two cows. You drink some vodka. You count them and learn you have five cows. You drink some more vodka. You count them again and learn you have 42 cows. The Mafia shows up and takes over however many cows you really have. You immigrate to New York and create pornographic websites.
TALIBAN CORPORATION	You have all the cows in Afghanistan, which are two. You don't milk them because you cannot touch any creature's private parts. You get a $40 million grant from the US government to find alternatives to milk production but use the money to buy weapons and grow poppies.
IRAQI CORPORATION	You have two cows. They go into hiding. They send radio tapes of their mooing to CNN's Larry King.
POLISH CORPORATION	You have two bulls. Employees are regularly maimed and killed attempting to milk them.
BELGIAN CORPORATION	You have one cow. The cow is schizophrenic. Sometimes the cow thinks he's French, other times he's Flemish. The Flemish cow won't share with the French cow. The French cow wants control of the Flemish cow's milk. The cow asks permission to be cut in half. The cow dies happy.
FLORIDA CORPORATION	You have a black cow and a brown cow. Everyone votes for the best looking one. Some of the people who actually like the brown one best accidentally vote for the black one. Some people vote for both. Some people vote for neither. Some people can't figure out how to vote at all. Finally, the Supreme Court tell you which one you think is the best looking cow.
CALIFORNIA CORPORATION	You have millions of cows. They make real California cheese. Only five cows understand English. Most are illegal. Arnold likes the ones with the big udders. She runs for Governor and wins.

Americans Can Change The System With Their Checkbooks

2010-05-19T08:21:00.001-06:00

One Light Bulb at a Time

A physics teacher in high school, once told the students that while one grasshopper on the railroad tracks wouldn't slow a train very much, a billion of them would. With that thought in mind, read the following, obviously written by a good American ..

Good idea .. . one light bulb at a time . . . .

Check this out . I can verify this because I was in Home Depot the other day for some reason and just for the heck of it I was looking at the hose attachments . They were all made in China . The next day I was in Ace Hardware and just for the heck of it I checked the hose attachments there. They were made in USA . Start looking ..

In our current economic situation, every little thing we buy or do affects someone else - even their job . So, after reading this email, I think this lady is on the right track . Let's get behind her!

My grandson likes Hershey's candy . I noticed, though, that it is marked made in Mexico now.. I do not buy it any more.
My favorite toothpaste Colgate is made in Mexico ... now I have switched to Crest. You have to read the labels on everything ..

This past weekend I was at Kroger. I needed 60 W light bulbs and Bounce dryer sheets . I was in the light bulb aisle, and right next to the GE brand I normally buy was an off-brand labeled, "Everyday Value . " I picked up both types of bulbs and compared the stats - they were the same except for the price ... The GE bulbs were more money than the Everyday Value brand but the thing that surprised me the most was the fact that GE was made in MEXICO and the Everyday Value brand was made in - get ready for this - the USA in a company in Cleveland , Ohio.

So throw out the myth that you cannot find products you use every day that are made right here ..

So on to another aisle - Bounce Dryer Sheets .. ... . yep, you guessed it, bounce cost more money and is made in Canada .. The Everyday Value brand was less money and MADE IN THE USA ! I did laundry yesterday and the dryer sheets performed just like the Bounce Free I have been using for years and at almost half the price!

My challenge to you is to start reading the labels when you shop for everyday things and see what you can find that is made in the USA - the job you save may be your own or your neighbors!

If you accept the challenge, pass this on to others in your address book so we can all start buying American, one light bulb at a time! Stop buying from overseas companies!

(We should have awakened a decade ago .. . .. . . .. )

Let's get with the program . .. . .. help our fellow Americans keep their jobs and create more jobs here in the U . S . A ..

But, You Said They Wouldn't Do That!

2010-05-07T10:24:00.005-06:00

AT&T, Verizon considered dropping employee health insurance as a result of healthcare overhaul

By John Byrne - RAWSTORY.COM
Thursday, May 6th, 2010 -- 9:21 am

Democrats canceled hearings after learning companies' plans would make health insurance bill look bad

House Democrats abruptly canceled hearings into major US companies' responses to their massive health care overhaul after receiving documents revealing that companies were considering dropping all of their employees' health benefits in response to the healthcare bill.

Documents obtained by Fortune and published on CNN show that AT&T and other major companies -- including Verizon, Deere and Caterpillar -- considered eliminating their employee benefits program and simply paying a fine to the government for those they employed without insurance. The fine for AT&T would have amounted to $2,000 per employee, costing the company a grand total of $600 million a year. Maintaining benefits, meanwhile, will cost the firm some $4.6 billion.

Democrats apparently canceled hearings into the companies practices when they received the documents and learned that such hearings might expose a major flaw in their health insurance overhaul: namely that companies might pay a fine rather than provide benefits for employees because the fine would be dramatically cheaper. They've had the documents for roughly a month, Fortune magazine said.

Democrats requested documents from the four companies after they announced they were taking massive write-downs to earnings as a result of costs incurred by the bill. Liberals said the huge firms were overstating costs as a result of the bill, presumably to make it look bad.

After receiving documents from the companies, however, Democrats issued a brief memo the write-downs were "proper and in accordance with SEC rules."

The memo didn't mention they'd received proof that their bill might result in the loss of coverage for millions of Americans.

Verizon commissioned a study examining the effects of various healthcare bills under consideration on their bottom line. The study, prepared by a consulting firm, asserted, "Even though the proposed assessments [on companies that do not provide health care] are material, they are modest when compared to the average cost of health care."

To avoid added costs, the study said, "employers may consider exiting the health care market and send employees to the Exchanges."

Caterpillar and AT&T examined what they believed would be an increase in insurance costs as major drug manufacturers, insurers and medical device makers shifted costs from new taxes they were going to pay onto health insurance clients.

"Caterpillar and AT&T actually spell out the cost differences: Caterpillar did its estimate in November, when the most likely legislation would have imposed an 8% payroll tax on companies that do not provide coverage," CNN's Shawn Tully wrote late Wednesday. "Even with that immense penalty, Caterpillar stated that it could shave $25 million a year, or almost 10% from its bill. Now, because the $2,000 is far lower than 8%, it could reduce its bill by over 70%, by Fortune's estimate."

On the flip side, health insurance companies have argued the penalties for not carrying insurance are too small. They posit that some Americans will decide to pay a fine rather than carry insurance because the fine is cheaper, and they figure they can buy insurance when they get sick (since insurers will be banned from denying coverage based on pre-existing conditions).

None of the companies have confirmed they are actively considering dropping benefits for employees. Many businesses see health and other benefits as important factors in helping them hire and retain talented workers.

But the costs to the US government if they did would be enormous -- another reason why Democrats may have canceled hearings on the matter.

"By Fortune's reckoning, each person who's dropped would cost the government an average of around $2,100 after deducting the extra taxes collected on their additional pay," Tully wrote. "So if 50% of people covered by company plans get dumped, federal health care costs will rise by $160 billion a year in 2016, in addition to the $93 billion in subsidies already forecast by the" Congressional Budget Office.

http://rawstory.com/rs/2010/0506/att-verizon-considered-dropping-health-insurance-employees/

Accident or?

2010-05-07T10:09:00.000-06:00

NYT, 'High-Speed Trading Glitch Costs Investors Billions,' by Nelson Schwartz and Louise Story: 'The glitch that sent markets tumbling Thursday was years in the making, driven by the rise of computers that transformed stock trading more in the last 20 years than in the previous 200 ... The old system of floor traders matching buyers and sellers has been replaced by machines that process trades automatically, speeding the flow of buy and sell orders but also sometimes facilitating the kind of unexplained volatility that roiled markets Thursday.'

Forbes, 'Fat Fingers Cause Panics,' by Vahan Janjigian: 'Why the market plunged so much and so fast in the middle of the afternoon isn't entirely clear. Some blame an erroneous quote on Procter & Gamble (PG), saying it caused panic selling across the board. Others say the selloff was caused by a trading error on the Nasdaq. This so-called fat-finger error occurred when a trader accidentally entered an order to sell a billion shares rather than a million shares. Still others blame the rioting in Greece for the selloff. That rioting was widely broadcast on trading floors. These reasons might explain the extent of today's selloff only if investors were already extremely nervous to begin with, which I believe they were. ... They were happy to see their stocks go up, but they were also prepared to sell at the first hint of trouble. That trouble came this afternoon, so they sold with a vengeance.'

Financial Reform, Washington, DC Style

2010-05-04T07:09:00.001-06:00

'Lawmakers Bet on Stock Falls,' by Jason Zweig, Tom McGinty and Brody Mullins: 'Some members of Congress made risky bets with their own money that U.S. stocks or bonds would fall during the financial crisis, a Wall Street Journal analysis of congressional disclosures shows. ... According to The Journal's analysis of congressional disclosures, investment accounts of 13 members of Congress or their spouses show bearish bets made in 2008 via exchange-traded funds-portfolios that trade like stocks and mirror an index. ... While some made money, others lost.'

It Depends On What The Meaning Of The Word "Sell" Is"

2010-04-23T11:10:00.001-06:00

It's Not Really Socialism

2010-04-14T08:16:00.000-06:00

WaPo op-ed, 'The great 'socialist' smear,' by Norman J. Ornstein: 'To one outside the partisan and ideological wars, charges of radicalism, socialism, retreat and surrender are, frankly, bizarre. The Democrats' health-reform plan includes no public option and relies on managed competition through exchanges set up much like those for federal employees. ... What about Obama's other domestic initiatives? The stimulus was anything but radical -- indeed, many mainstream observers, me included, thought it was too timid in size and scope given the enormity of the problems. ... It is true that, in an attempt to head off a meltdown stemming from a collapse of the automobile industry, Obama engineered a temporary takeover of two of the Big Three auto companies. But nothing suggests that this is anything but temporary, and Obama has resisted many calls to take over major banks and other financial institutions. ... Obama's approach to terrorism has been similar to Bush's, while more aggressively targeting leaders of terrorist groups; his larger foreign policy has received the seal of approval from James Baker ... Obama's energy policies include more nuclear power and more offshore drilling. Obama's education policies have received wide acclaim across the political spectrum. ... Looking at the range of Obama domestic and foreign policies, and his agency and diplomatic appointments, my conclusion is clear: This president is a mainstream, pragmatic moderate, operating in the center of American politics; center-left, perhaps, but not left of center.'

Here's Something You Might Want To Send Out In November

2010-04-14T07:45:00.005-06:00

To all the people that voted for Obama you might want to take 2 minutes to read this short piece.

Chrysler's Railroad
This could be a scandal of epic proportions and one that makes Nixon's Watergate or Clinton 's Monica Lewinsky affair pale by comparison. Why was there neither rhyme nor reason as to which dealerships of the Chrysler Corporation were to be closed?
Roll the clock back to the weeks just before Chrysler declared bankruptcy. Chrysler, like GM, was in dire financial straits and federal government "graciously" offered to "buy the company" and keep them out of bankruptcy and "save jobs."
Chrysler was, in the words of Obama and his administration,
"Too big to fail," same story with GM.

The feds organized their "Automotive Task Force" to fix Chrysler and GM. Obama, in an act that is 100% unconstitutional, appointed a guy named Steve Rattner to be the White House's official Car Czar - literally, that's what his title is.
Rattner is the liaison between Obama, Chrysler, and GM.

Initially, the national media reported that Chrysler 'had made this list of dealerships'. Not true!

The Washington Examiner, Newsmax, Fox New and a host of other news agencies discovered that the list of dealerships was put together by the "Automotive Task Force" headed by no one other than Mr. Steve Rattner.
Now the plot thickens.

Remember earlier we said that there was neither rhyme nor reason why certain dealerships were closed?

Actually there's a very interesting pattern as to who was closed down. Again, on May 27, 2009, The Washington Examiner and Newsmax exposed the connection.
Amazingly, of the 789 dealerships closed by the federal government, 788 had donated money, exclusively to Republican political causes, while contributing nothing to Democratic political causes. The only "Democratic" dealership on the list was found to have donated $7,700 to Hillary's campaign, and a bit over $2,000 to John Edwards. This same dealership, reportedly, also gave $200.00 to Obama's campaign.
Does that seem a little odd to you?

Steve Rattner is the guy who put the list together. Well, he happens to be married to a Maureen White. Maureen happens to be the former national finance chairman of the Democratic National Committee. As such, she has access to campaign donation records from everyone in the nation- Republican or Democrat. But of course, this is just a wacky "coincidence," we're certain.

Then comes another really wacky "coincidence."
On that list of dealerships being closed down, a weird thing happened in Arkansas , North Louisiana, and Southern Missouri . It seems that Bill Clinton's former White House Chief of Staff, Mack McClarty, owns a chain of dealership in that region, partnered with a fellow by the name of Robert Johnson.

Johnson happens to be founder of Black Entertainment Television and was a huge Obama supporter and financier.

These guys own a half dozen Chrysler stores under the company title of RLJ-McClarty-Landers.Interestingly, none of their dealerships were ordered closed - not one!
While all of their competing Chrysler/Dodge and Jeep dealership were!

Eight dealerships located near the dealerships owned by McClarty and Johnson were ordered shut down. Thus by pure luck, these two major Obama supporters now have virtual monopoly on Chrysler sales in their zone.
Isn't that amazing?

Go look in The Washington Examiner, the story's there, and it's in a dozen or so other web-based news organizations; this isn't being made up.

Now if you thought Chrysler was owned by Fiat, you are mistaken. Under the federal court ruling, 65% of Chrysler is now owned by the federal government and the United Auto Workers union!
Fiat owns 20%.
The other 15% is still privately owned and presumably will be traded on the stock market. Obama smiles and says he doesn't want to run the auto industry.

As horrifying as this is to comprehend, and being as how this used to be the United States of America , it would appear that the president has the power to destroy private businesses and eliminate upwards of 100,000 jobs just because they don't agree with his political agenda.

This is Nazi Germany stuff, and it's happening right here, right now, in our back yard.
There are voices in Washington demanding an explanation, but the "Automotive Task Force" has released no information to the public or to any of the senators demanding answers for what has been done.

Keep your ear to the ground for more on this story. If you've ever wanted to make a difference about anything in your life, get on the phone to your national senator or representative in the House and demand an investigation into this.

Benjamin Franklin had it right when he said, "All that's necessary for evil to triumph is for good men to do nothing."

Car Czar No More
An amazing thing happened as this story was going to press. Obama's Car Czar, Steve Rattner, resigned on July 13 and was promptly replaced by former steel workers union boss Ron Bloom.

According to CBS News, Rattner left "to return to private life and spend time with his family."
Treasury Secretary Tim Geithner said, "I hope that he takes another opportunity to bring his unique skills to government service in the future."

By the way, Rattner is under investigation for a multi-million dollar pay-to-play investment bank scandal in New York .
Uh-oh!
But, we're certain that had nothing to do with his resignation.
And, according to several news sources out there, there are rumors he's being investigated for what could be pay-to-play scandal involving the closing of Chrysler and GM dealerships. Really? Again, that couldn't have anything to with his resignation-that's ridiculous! Like CBS said, this guy just wants to "spend more quality time with his family."
Obama has 32 personally appointed "czars" who answer to no one but him, all of whom are acting without any Constitutional authority.
But hey, we're sure they all have "unique skills,"......as Tim Geithner likes to say!

SOOOOO..HOW'S THE CHANGE WORKING FOR YOU?...
Check it out at the following websites.....

http://gatewaypundit.blogspot..com/2009/05/hope-change-car-czar-behind-chrysler.html

http://www.washingtonexaminer.com/politics/Obamas-auto-policy-All-in-the-Democratic-family-44414452.html

This goes beyond corruption in high places - to gross criminal actions on the part of our government! I hope you will spread this far and wide, and hopefully the taxpaying public will demand some of that transparency we were promised......followed by criminal prosecution of the perpetrators!

What a crooked government, we have!!!!!
Vote 'em all out...November, 2010!

CAUTION - Community Organizers At Work

2010-04-09T07:43:00.000-06:00

AFL-CIO President Richard L. Trumka, who was a third-generation coal miner before going into labor leadership, tells POLITICO that more than 10,000 union supporters will 'march on Wall Street' on April 29 in support of a financial-transactions tax, and higher taxes on private-equity and hedge funds. The march coincides with Senate action on financial regulatory reform, an Obama administration priority for the spring. Workers will flood subways and buses will clog downtown, with union 'marshals' to prevent 'counterproductive' antics, Trumka said in a video interview. 'People will be talking, yelling, chanting, and letting America -- and letting Wall Street, particularly -- know that their brand of economics, where the financial economy overshadows the real economy, is no longer acceptable, that we want them to help pay for the jobs that they destroyed,' Trumka said. 'There'll be a lot of people and a lot of energy, and it will be a lot of fun. ... We'll be right on Wall Street.'

The Gift From Our Founders

2010-04-05T09:44:00.000-06:00

Barack Obama has awakened a sleeping nation
Gary Hubbell
Aspen Times Weekly

Barack Obama is the best thing that has happened to America in the last 100 years. Truly, he is the savior of America's future. He is the best thing ever.

Despite the fact that he has some of the lowest approval ratings among recent presidents, history will see Barack Obama as the source of America's resurrection. Barack Obama has plunged the country into levels of debt that we could not have previously imagined; his efforts to nationalize health care have been met with fierce resistance nationwide; TARP bailouts and stimulus spending have shown little positive effect on the national economy; unemployment is unacceptably high and looks to remain that way for most of a decade; legacy entitlement programs have ballooned to unsustainable levels, and there is a seething anger in the populace.

That's why Barack Obama is such a good thing for America.

Obama is the symbol of a creeping liberalism that has infected our society like a cancer for the last 100 years. Just as Hitler is the face of fascism, Obama will go down in history as the face of unchecked liberalism. The cancer metastasized to the point where it could no longer be ignored.

Average Americans who have quietly gone about their lives, earning a paycheck, contributing to their favorite charities, going to high school football games on Friday night, spending their weekends at the beach or on hunting trips — they've gotten off the fence. They've woken up. There is a level of political activism in this country that we haven't seen since the American Revolution, and Barack Obama has been the catalyst that has sparked a restructuring of the American political and social consciousness.

Think of the crap we've slowly learned to tolerate over the past 50 years as liberalism sought to re-structure the America that was the symbol of freedom and liberty to all the people of the world. Immigration laws were ignored on the basis of compassion. Welfare policies encouraged irresponsibility, the fracturing of families, and a cycle of generations of dependency. Debt was regarded as a tonic to lubricate the economy. Our children left school having been taught that they are exceptional and special, while great numbers of them cannot perform basic functions of mathematics and literacy. Legislators decided that people could not be trusted to defend their own homes, and stripped citizens of their rights to own firearms. Productive members of society have been penalized with a heavy burden of taxes in order to support legions of do-nothings who loll around, reveling in their addictions, obesity, indolence, ignorance and “disabilities.” Criminals have been arrested and re-arrested, coddled and set free to pillage the citizenry yet again. Lawyers routinely extort fortunes from doctors, contractors and business people with dubious torts.

We slowly learned to tolerate these outrages, shaking our heads in disbelief, and we went on with our lives.

But Barack Obama has ripped the lid off a seething cauldron of dissatisfaction and unrest.

In the time of Barack Obama, Black Panther members stand outside polling places in black commando uniforms, slapping truncheons into their palms. ACORN — a taxpayer-supported organization — is given a role in taking the census, even after its members were caught on tape offering advice to set up child prostitution rings. A former Communist is given a paid government position in the White House as an advisor to the president. Auto companies are taken over by the government, and the auto workers' union — whose contracts are completely insupportable in any economic sense — is rewarded with a stake in the company. Government bails out Wall Street investment bankers and insurance companies, who pay their executives outrageous bonuses as thanks for the public support. Terrorists are read their Miranda rights and given free lawyers. And, despite overwhelming public disapproval, Barack Obama has pushed forward with a health care plan that would re-structure one-sixth of the American economy.

I don't know about you, but the other day I was at the courthouse doing some business, and I stepped into the court clerk's office and changed my voter affiliation from “Independent” to “Republican.” I am under no illusion that the Republican party is perfect, but at least they're starting to awaken to the fact that we cannot sustain massive levels of debt; we cannot afford to hand out billions of dollars in corporate subsidies; we have to somehow trim our massive entitlement programs; we can no longer be the world's policeman and dole out billions in aid to countries whose citizens seek to harm us.

Literally millions of Americans have had enough. They're organizing, they're studying the Constitution and the Federalist Papers, they're reading history and case law, they're showing up at rallies and meetings, and a slew of conservative candidates are throwing their hats into the ring. Is there a revolution brewing? Yes, in the sense that there is a keen awareness that our priorities and sensibilities must be radically re-structured. Will it be a violent revolution? No. It will be done through the interpretation of the original document that has guided us for 220 years — the Constitution. Just as the pendulum swung to embrace political correctness and liberalism, there will be a backlash, a complete repudiation of a hundred years of nonsense. A hundred years from now, history will perceive the year 2010 as the time when America got back on the right track. And for that, we can thank Barack Hussein Obama.

Gary Hubbell is a hunter, rancher, and former hunting and fly-fishing guide. Gary works as a Colorado ranch real estate broker. He can be reached through his website,aspenranchrealestate.com.

An Example Of Why California Is Bankrupt

2010-04-04T09:32:00.000-06:00

'California voters have a generally positive view of the massive federal healthcare package ... By a margin of 46% to 29%, California voters surveyed said they would be more likely to vote for a politician who had supported the health bill. And just over half the voters polled said they believed the country would be better off ... The Los Angeles Times/USC College of Letters, Arts and Sciences poll surveyed 1,515 registered voters from March 23 to 30. ... Californians view the healthcare package 'much more favorably than what we are finding nationally,' said Stan Greenberg of Greenberg Quinlan Rosner. 'I don't think we will see numbers like this in other states.''

HOWARD DEAN: OF COURSE HEALTH CARE LAW IS REDISTRIBUTION OF WEALTH

2010-04-02T16:45:00.002-06:00

Another Example Of Our Out-Of-Touch Leadership

2010-04-02T16:38:00.000-06:00

Where To Retire On A Budget

2010-03-22T07:32:00.003-06:00

With the passage of Obamacare and a Congress that can't seem to stop spending money it doesn't have, we wanted to see where the best places to retire were across the world. We found our answer at http://www.internationalliving.com/

"We look closely at the best opportunities worldwide for retirement living," Sheridan says. "Where will the retiree's dollars go farthest? Which country is the safest? Where is the health care best? We give top priority to those things that matter most to anyone planning for retirement including programs with special benefits for retirees . . . things like tax breaks and discounts, for example, that various governments offer in an effort to attract investment and retirement dollars."

We were pleasantly surprised at what we found!

The Ultimate Paradox

2010-03-20T05:54:00.001-06:00

E.J. Dionne: 'Here is the ultimate paradox of the Great Health Care Showdown: Congress will divide along partisan lines to pass a Republican version of health care reform, and Republicans will vote against it. Yes, Democrats have rallied behind a bill that Republicans -- or at least large numbers of them -- should love. It is built on a series of principles that Republicans espoused for years. Republicans have said that they do not want to destroy the private insurance market. This bill not only preserves that market but strengthens it by bringing in millions of new customers. The plan before Congress does not call for a government 'takeover' of health care. It provides subsidies so more people can buy private insurance. ... The single-payer idea fell by the wayside long ago, and supporters of the public option -- sadly, from my point of view -- lost out last December. ... Democrats, including President Obama, are so anxious to get everyone health insurance that they are more than willing to try a market-based system and hope it works. It's a shame the Republicans can no longer take 'yes' for an answer.'

NRCC - National Republican Congressional Committee

2010-03-18T05:34:00.003-06:00

NRCC - National Republican Congressional Committee

Posted using ShareThis

NRCC - National Republican Congressional Committee

2010-03-18T05:34:00.001-06:00

NRCC - National Republican Congressional Committee

Posted using ShareThis

An Simple Mans Description Of America's Financial Situation

2010-03-16T09:45:00.004-06:00

The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich tourist from back east (China) is driving through town. He stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night. As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer. The pig farmer takes the $100 and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit. The hooker rushes to the hotel and pays off her room bill with the hotel owner. The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything. At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything. However, the whole town is now out of debt and now looks to the future with a lot more optimism. And that, ladies and gentlemen, is how the United States Government is conducting business today.

“Honesty is not something you should flirt with-You should be married to it.”

--
Be Funny If You Can

The Showdown Is Coming

2010-03-15T05:14:00.001-06:00

China has succumbed to hubris. It has mistaken the soft diplomacy of Barack Obama for weakness, mistaken the US credit crisis for decline, and mistaken its own mercantilist bubble for ascendancy.

Read On:http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7442926/Is-Chinas-Politburo-spoiling-for-a-showdown-with-America.html

Want A Great Country Home?

2010-03-14T07:20:00.005-06:00

Check out my 80 acre farm in Eastern Oregon! It's for sale - $550,000 USD

AEI - Papers

2010-03-03T08:42:00.000-07:00

AEI - Papers: "Rationalism in Regulation"

How ‘American’ Is Toyota? Ask Iran � The Enterprise Blog

2010-03-03T08:40:00.000-07:00

How ‘American’ Is Toyota? Ask Iran � The Enterprise Blog

2010-02-25T13:32:00.001-07:00

John G. Is 63 years old and owns a small business. He's a life-long Republican and sees his dream of retiring next year has all but evaporated. With the stock market crashing and new taxes coming his way, John assumes now that he will work to his dying day.

John has a granddaughter. Ashley is a recent college grad. She drives a flashy hybrid car, wears all the latest fashions, and loves to go out to nightclubs and restaurants. Ashley campaigned hard for Barack Obama. After the election she made sure her grandfather (and all other Republican family members) received a big I told-you-so earful on how the world is going to be a much better place now that her party is taking over.

Having lost both roommates, Ashley recently ran short of cash and cannot pay the rent (again) on her 3 bedroom townhouse.. Like she has done many times in the past, she e-mailed her grandfather asking for some financial help.

Here is his reply:

Sweetheart, I received your request for assistance.

Ashley, you know I love you dearly and I 'm sympathetic to your financial plight. Unfortunately, times have changed. With the election of President Obama, your grandmother and I have had to set forth a bold new economic plan of our own..."The Ashley Economic Empowerment Plan." Let me explain.

Your grandmother and I are life-long, wage-earning tax payers. We have lived a comfortable life, as you know, but we have never had the fancier things like European vacations, luxury cars, etc.. We have worked hard and were looking forward to retiring soon. But the plan has changed. Your president is raising our personal and business taxes significantly. He says it is so he can give our hard earned money to other people. Do you know what this means, Ashley? It means less for us, and we must cut back on many business and personal expenses.

You know the wonderful receptionist who worked in my office for more than 23 years? The one who always gave you candy when you came over to visit? I had to let her go last week. I can't afford to pay her salary and all of the government mandated taxes that go with having employees. Your grandmother will now work 4 days a week to answer phones, take orders and handle the books. We will be closed on Fridays and will lose even more income to the Wal-Mart.

I'm also very sorry to report that your cousin Frank will no longer be working summers in the warehouse. I called him at school this morning. He already knows about it and he's upset because he will have to give up skydiving and his yearly trip to Greenland to survey the polar bears.

That's just the business side of things. Some personal economic effects of Obama's new taxation policies include none other than you You know very well that over the years your grandmother and I have given you thousands of dollars in cash, tuition assistance, food, housing, clothing, gifts, etc., etc. But by your vote, you have chosen to help others -- not at your expense -- but at our expense.

If you need money now sweetheart, I recommend you call 202-456-1111. That is the direct phone number for the White House.. You can also contact the White House here: http://www.whitehouse.gov/CONTACT/ ...

You yourself told me how foolish it is to vote Republican. You said Mr Obama is going to be the People's President, and is going to help every American live a better life. Based on everything you've told me, along with all the promises we heard during the campaign, I'm sure Mr. Obama will be happy to transfer some stimulus money into your bank account. Have him call me for the account number which I memorized years ago.

Perhaps you can now understand what I've been saying all my life: those who vote for a president should consider the impact on the nation as a whole, and not be just concerned with what they can get for themselves. What Obama supporters don't seem to realize is all of the money he is redistributing to illegal aliens and non-taxpaying Americans (the so-called "less fortunate") comes from tax-paying families.

Remember how you told me, "Only the richest of the rich will be affected"? Well guess what, honey? Because we own a business, your grandmother and I are now considered to be the richest of the rich. On paper, it might look that way, but in the real world, we are far from it.

As you said while campaigning for Obama, some people will have to carry more of the burden so all of America can prosper.. You understand what that means, right? It means that raising taxes on productive people results in them having less money; less money for everything, including granddaughters.

I'm sorry, Ashley, but the well has run dry.. The free lunches are over.. I have no money to give you now. So, congratulations on your choice for "change." For future reference, I encourage you to try and add up the total value of the gifts and cash you have received from us, just since you went off to college, and compare it to what you expect to get from Mr. Obama over the next 4 (or 8) years. I have not kept track of it, Ashley. It has all truly been the gift of our hearts.

Remember, we love you dearly....but from now on you'll need to call the number mentioned above. Your "Savior" has the money we would have given to you. Just try to get it from him.

Good luck, sweetheart.

Love, Grandpa

Beyond The Abyss

2010-02-25T04:01:00.000-07:00

Tea-Party Power to Solve the Debt Problem - Larry Kudlow - National Review Online

2010-02-20T04:36:00.000-07:00

Tea-Party Power to Solve the Debt Problem - Larry Kudlow - National Review Online

Excellent article!

Newt Gingrich On How To Repair The Liberal Damage To America

2010-02-03T07:25:00.001-07:00

GDP - Gross Domestic Production

2010-01-31T05:41:00.002-07:00

We Ask You To Think About The Latest GDP Report Before You Cheer The Messenger

The definition of GDP--- The TOTAL MARKET VALUES of goods and services produced by workers and capital within a nations borders during a given period. While celebrating a 4th quarter rise in the GDP of over 5% this is good news. I don't want you to get mad at me when I explain my opinion as to why this is NOT a TRUE figure (while at least it is a positive, it is NOT a TRUE positive).

1. The reason manufacturing was up in the 4th quarter is because many businesses held back on orders (allowing inventories to deplete with all the uncertainties from day to day business) and at the last possible moment ordered for Christmas, in hopes of having a GOOD year end. You know "CHRISTMAS"---that holiday that POLITICAL CORRECTNESS doesn't want to recognize, but is still willing to accept ALL THE WINDFALL PROFITS.

2. and most important of all----In the 3rd quarter when CASH FOR CLUNKERS was selling record numbers of autos because the tax payers had to bear the cost of BILLIONS OF DOLLARS to sell the cars sitting on showroom floors collecting dust while auto plants were starting to shut down and lay off. Now comes the 4th quarter and the push to re-stock showroom floors. The next CASH FOR CLUNKERS (and rest assure there will be another) everyone should buy a Ford, the only AMERICAN OWNED auto company making it on it's own (no taxpayer funding). General Motors and Chrysler took about 100 Billion taxpayer dollars (which will never be returned) and are now looking for more.

I challenge the Obama administration to use the 4th quarter numbers of 2008 for auto production in place of the 4th quarter numbers of 2009, and that will be a more realistic GDP number. The real explanation for the remarkable unbalance in the rise of GDP with no positive reflection to the job market is on the backs of the taxpayer for the benefit of the auto industry. And as the rest of America struggles, Obama, his cronies and Ben Bernake will take credit for a 5%+ GDP for the 4th quarter of 2009. I wait patiently to hear the way they are going to SPIN-OFF the hit that the GDP is going to take in the 1st quarter of 2010.

And for those that may think I'm blowing smoke hold your comments and criticism for 90 days until that GDP number comes out and let me know who's crazy and who makes sense, I know Washington makes NO SENSE at all.

Kevin Price On The Oracle Of Omaha's View Of Ben Bernanke

2010-01-30T08:59:00.007-07:00

Warren Buffett on the Business and Government Connection

Warren Buffett rolled up his sleeves on
the Fox Business Network in a very candid interview with the channel’s Liz Claman,
in which he discussed CEOs of failing banks, reconfirming Ben Bernanke, and his Berkshire
company.

On the Bank Situation:

“You’ll always have banks that are too big to fail. We can’t operate in this world without
very big banks…If they are toppling the government will have to do something about it.”

This is contrary to conventional wisdom and of this writer. After a year we see that banks
had more money than expected (witnessed in the pace in which they paid off their bailouts)
and these government programs have done little to increase the pace of loans, since banks
have found a way to get “money for nothing.” Why risk their resources if they are washed
in capital from Uncle Sam?

Furthermore, these policies have only undermined moral hazard at a time it is so greatly
needed. The US cannot be in the business of rewarding bad decision making.

"If I were running things and a bank had to go to the government for help, the CEO and
his wife would forfeit all their net worth…I think you have to change the incentives.
The incentives a few years ago were try and report higher quarterly earnings. It’s nice
to have carrots, but you need sticks. The idea that some guy who’s worth $500 million
leaves and only has $50 million left is not much of a stick as far as I’m concerned."

This was actually the highlight in the Buffett interview.

" We need a restoration of moral hazard in banking and that will only come when those
responsible for bad decision making suffers for those choices. The CEO has to be the chief
risk officer for a bank.”

This is a great observation and a view that needs to be restored. This is best achieved,
in my opinion, by letting banks fail. Any executives behind such will find themselves
looking for something else to do for a living.

On members of Congress who feel Ben Bernanke should not be reconfirmed:

“They ought to get down on their knees every night and thank the Lord that Bernanke was
there through this. He took some unprecedented actions…He took the actions that were
necessary to prevent panic from paralyzing this country.”

“Unprecedented” often means unconstitutional and has led to the expansion of government
like we have never seen in our history, even in the Great Depression. What he has done
is created instability in our monetary policy by pumping dollars into the economy at a
pace we have never seen. Furthermore, his bailouts of large corporations have undermined
the normal functions of a free market economy, such as moral hazard. He has created an
economy without risk, which is far from free market in design. What he has done is criminal…
two thumbs up for those members of Congress who wish to see him go.

On the future of Berkshire Hathaway’s business acquisition:

“We’ll keep buying businesses, as long as I’m alive we’ll keep buying businesses…we’ll try
to buy them for cash, sometimes we may have to use some stock, but we’ll use as little
stock as possible.”

If the US economy continues to reel from the unstable monetary and
fiscal policies of the Obama administration, large corporations like Berkshire Hathaway
will continue to benefit from them.

It should be no wonder that, when questioned about Tim Geithner, he replied
“I think he’s terrific.”

Maybe for Buffett, but not the rest of the country.
____________________________________________________________________________________________________
Kevin Price is the host of “Price of Business”, M-F at 11 am on CNN 650 and CBS Radio and can
be frequently found in the “Strategy Room” at FoxNews.com. A syndicated columnist whose
article appear at Reuters, Chicago Sun Times, USA Today, and other media, his BizPlusBlog.com
is ranked in the top 1 percent of all blogs by Technorati. His articles also appear regularly
at AmericanDailyReview.com and RenewAmerica.com, Examiner.com, and others.

Who Owns Our Government?

2010-01-29T06:53:00.001-07:00

Ron Paul Speaks Out On The Financial Crisis And The Reappointment Of Ben Bernanke

2010-01-29T06:47:00.001-07:00

Why Do Environmentalists Oppose Alternative Energy?

2010-01-26T14:16:00.002-07:00

Environmentalists claim that our use of carbon-based energy is altering the climate, making us more vulnerable to climate disasters. Human survival, they insist, requires the immediate abandonment of fossil fuels in favor of carbon-free sources.

So why do environmentalist groups vehemently oppose projects involving every alternative form of energy ever proposed to replace fossil fuels--including wind farms and solar power plants? And why do they ignore the dramatic degree to which industrial development under capitalism has reduced the risk of harm from severe climate events?

Before we rush headlong into drastic climate policies and energy rationing, a critical examination of these policies is urgently needed. Stay connected as we explore these issues that are so critical to our future.

It's Tax Time Again

2010-01-24T04:15:00.001-07:00

Let’s Talk Taxes

It’s almost that wonderful time of year in America. The period between the holidays and the first signs of spring when we take stock of our contribution to the free world. The time when we sit down with a pile of papers and try to figure out what we owe Uncle Sam this year. We are either taking the dangerous route of doing our own taxes or setting up the documentation to give to a CPA that will charge at least $500 to prepare them for us.

The problem we have with taxes in the U.S. could be called our perverse attitude toward success.

Instead of a simple, fair system for everyone, with something like an across-the-board 15% income tax, what the U.S. does is place a higher rate of federal tax on those who earn higher incomes. This is called progressive taxation.

Human beings, like any living creature, are driven by incentives. If they do something and get rewarded for it – through more money, more friends, or whatever – they will do more of it. It‘s really very simple logic.

Progressive rates of taxation send the signal that the more you produce and succeed, the more you'll get robbed. It's a little stupid to punish success, to punish productive behavior. It ultimately leads to decay.

If a business person produces something everybody wants and he makes $1 billion a year from it, why should he have to pay 50% of his earnings to the government, when someone making $25,000 pays just 15%? All the billion-dollar businessperson did was produce something people wanted, and he is punished with the higher tax rate. It's not like he gets 35% more government in return for his greater contribution. (which he prays he won’t get anyway)

Progressive taxation supporters – let's just call them “idiots” for short – defend their position by saying, "But the rich can afford the tax... So they should pay more."

Yes they can. But that is ignoring the real issue. The real issue is a moral one. It's an issue of treating all people fairly. As long as you're not stealing from others, if you produce a service or product people are willing to pay a lot of money for, you should be rewarded commensurately. If you produce a product or service people are not willing to pay a lot of money for, you should also be rewarded commensurately.

To take more from those who succeed by serving others is a corrosive policy. It's the heart of the reason why the Soviet Union collapsed. People will only put up with extremely perverse incentives for so long. As Margret Thatcher, former Prime Minister of Great Britain said, “Eventually, you run out of other people's money.” We're not at Soviet levels of taking from the productive, but we could get there, and sooner than you might think.

I believe progressive taxation is a policy enacted and encouraged by lazy, jealous, uncreative people wanting to take away from successful people. It's people wanting to take things they have not earned. And when you institutionalize this policy, it corrodes the spirit of a nation. Politicians (especially the brand we have in charge right now) have traditionally used the tax system to gain power. They rob Peter to pay Paul and then ask Paul to vote for them every election cycle. When you do that, you will build a large political base of Pauls and eventually run out of Peters.

That's what we're currently doing in the U.S. I worry that if Barack Obama and the Democrat controlled Congress gets their way, it will get much worse. It's obvious progressive taxation and socialism are some of Obama’s core beliefs.

If he is allowed to go whole hog with his crazy socialist plans, you will truly see Ayn Rand's novel Atlas Shrugged play out in real life. You will see hard working, successful people say, "I'm not willing to pay 60% of what I earn so others can enjoy the fruits of my labor." They will stop working or leave the country.

I deeply love the idea of America... I think the founding of this nation is the greatest thing in the history of mankind. My grandfather and my father were capitalists and provided me with a foundation and a work ethic I take very seriously. But we are so far from the ideas the Founding Fathers believed in – low, fair taxes; small government; no foreign wars of aggression – I will seriously consider leaving if it gets worse, if we turn into a communist or socialist nation. I will not serve as a milk cow for those who refuse to work or produce.

Men like Theodore Roosevelt, Woodrow Wilson, Franklin Delano Roosevelt, Lyndon Johnson, and Barack Obama have trashed the ideas and memory of men like Thomas Jefferson and George Washington. It's really very sad. The progressive mindset that dates back to 1900 has done more to erode the social structure of this nation than anything.

But I always try to find the positive side of things... so I keep the hope that early on the road to American socialism, there will be a rebirth of American ideals and the basic concepts of life, liberty and the pursuit of happiness, and it will once again discredit the belief that you can run a society based on rewarding failure and punishing success.

Life just can't work properly that way. And it has nothing to do with "Democrats" or "Republicans." It's a simple, common-sense notion our nation's founders believed in.

Jim Getten

Capitalist Tools

January, 2010

Ron Paul Speaks Out On The Financial Crisis Inquiry Commission

2010-01-22T16:59:00.001-07:00

Meet The MAVINS

2010-01-08T05:56:00.001-07:00

Why Capitalism Trumps Fear, Socialism & All Other "isms"

2010-01-02T14:17:00.003-07:00

Capitalism hasn't failed as the press, liberal bloggers and economic pundants would have you believe. The free market economy our founders dedicated (and sometimes gave) their lives to develop and perpetuate is not as fragile as the pessimists think.

The blog you are reading is dedicated to the economic system that has built the most powerful nation the earth has ever known. In the days and weeks ahead, I hope to show anyone who is interested why free market capitalism is the one economic system that has stood the test of time, poor government policy, wars, unbridled greed and every attack on it's virtues since the founding fathers created the place for it to flourish more than 235 years ago.

The economy is starting to recover and the weeks ahead will see more gains in the equity markets. Optimism is essential to a successful recovery. For more than a year, we have been deluged with pessimism, fear mongering and suggestions our country is in decline.

The reality is that America is in transition, not unlike the transition she went through in the 1800's when our economy began to switch from an agricultural economy to a manufacturing economy. The USA is changing and those that are learning where the new opportunities are appearing will prosper. America is not in decline, she is being reborn.

The optimism and innovation that moves an economy forward comes from individual spirit and imagination, not from government intervention. It blossoms from the private sector and the area of our society that is profoundly individual.

I welcome your comments, suggestions, questions and ideas for this blog. I seek to educate and be educated in this effort.

Jim Getten

January 2, 2010

Happy New Year - 2010

2010-01-02T08:23:00.001-07:00

Welcome to my blog dedicated to free market capitalism. It's become apparent to me over the last decade that our long proven system of business, finance and trade is coming under attack as never before.

Having been brought up in a long line of free market capitalists and supporters of the system, I feel compelled to contribute to it's survival and spend as much time as I can in securing its future in America.

I dedicate this blog to Brian S. Wesbury, Chief Economist at First Trust Advisors, LP and Economics Editor for The American Spectator. Reading his book "It's Not As Bad As You Think" published by John Wiley & Sons, Inc. has sparked a desire in me to help as many other Americans as I can to realize how blessed we are to live in this country and benefit from this system of finance and business.

I completely agree that changes to laws and policies are an ongoing process and no system is perfect. I only seek to assure future generations that the free market system be left intact and viable for their use as it has proven itself superior to all others in world history for one simple reason:

Capitalism provides personal dignity.

I hope you like what you read.

Jim Getten

January 2, 2010