Friday, July 2, 2010
The following was shared with me by my friend Lynn in St. Louis. An interesting essay from Mr. Hollrah entitled "The General and the Community Organizer".
Simper Fi and May God Bless America,
Dr. D.
Sunday, December 6, 2009
WW II Battleship sailor tells Obama to shape up or ship out !
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
Thursday, June 18, 2009
Should We All Just Go 'John Gault'?
Wednesday, June 17, 2009
America is NOT a Democracy - It Never Was!
Tuesday, June 16, 2009
MSNBC Republicans: Steven Crowder & AlfonZo Rachel Join Forces for an Everyday MSM Promo
Saturday, June 6, 2009
Obama Beach?
Sunday, May 31, 2009
Geez Stop It Already! BHO and Michelle Deserve To Be Left Alone
"President Barack Obama made good on a campaign promise to his most important supporter Saturday night — his wife, Michelle. The president and first lady jetted to a date in New York late Saturday afternoon, aides and media in tow."
Thursday, May 28, 2009
Now You Have Gone and Done It! Beer and Wine Tax on It's Way!
Get Ready the Beer and Wine Taxes Are Headed Your Way Brother Paul!
http://www.facebook.com/ext/share.php?sid=86810233143&h=WAQlm&u=FgFdh&ref=nf
Dr. D.
Tuesday, May 19, 2009
Some Thoughts By Me

From Tranquilla II on the Back of Eddy Creek on Lake Barkley ---
Finally after what seems forever I have returned home to Lake Barkley! An almost three week business/professional jaunt out into the world and I had these experiences:
1. Arrived in Iowa to find my business associate hospitalized. Rush to ER and find her and we spend two days trying to figure out her issues. The doctor did, Fixed it and we continued our workshop on Leadership Development for the City of Storm Lake. Kudos to Hertz Rental Car Company's Manager at Omaha Airport - Donna - she turned on the utmost in customer service for me when I really needed it. Thanks to her and everyone at Hertz for getting me a car with a GPS system. And whether Dawn and Patti like you or not "Edith" you are my favorite GPS system!
2. Assisted the Storm Lake Community Health Center in getting focused on developing a strategic plan of action - a mandate and simply good business! Great work they are doing and becoming focused will make them even better.
3. Went to Arizona from Iowa to see a dear friend who is scheduled for at least one "mega dose" of radiation following removal of malignant tumors on her vocal chords and removal of thyroid. We enjoyed the Phoenix Zoo on a bike carriage, some good Mexican and Thai food, and did the spa thing - yep, got another manicure and pedicure and massage! Glenn Nesbitt at Tybee is responsible for getting me hooked on this pedicure thing!
I also confronted, and maybe defeated my anxiety, (if not fear) of the dreaded Spider Monkey, hell all monkeys, and I called my friend Tim to let him know of my efforts to resolve this! He didn't volunteer, of course, to come out and help but then that's another story. Don't get me started. Cute? Hmmmm, I have another word for these peeing monsters but will not use it here.
4. Returned to Kentucky briefly while we packed up to then went to Riverside, California to do the 12th annual Space Day for our client Lockheed Martin at Longfellow Elementary School. Probably the best one ever. Kay did magnificent job of organizing - she always does. I was the "grunt" labor along with my "conservative daughter" Penelope. Enjoyed lots of Mexican food and staying at the Mission Inn. If you have not been there go! Ask for Raul, the waiter with personality and utmost customer service. He knows how to fix the bacon that Penelope and I like so well.
5. Finally home. Gathering data and information for a proposal with Battelle and intel gathering for a client in Kentucky. Soon though it will be Memorial Day, or as Mom called it when I was a kid, "Decoration Day."
6. The "Traveling Vietnam Wall" will be in Oak Grove this Memorial Day weekend. I plan to go down and pay my respects and I encourage all of you who know veterans to offer your thanks to them this weekend. We are free men and women - albeit we are losing our freedoms more daily - thanks to the veterans many of whom gave the ultimate sacrifice.
And if the Sec of Homeland Security doesn't appreciate them I damn well do! THANKS to all the men and women, gruntled or disgruntled, that have kept this country free so that political jerks like Janet N., Harry Reid, Nancy Pelosi, John Murtha and John Kerry (D-Vietnam Veteran) can speak their simple minds whether I agree with them or not.
Simper Fi Brothers and Sisters - Simper Fi,
LPG, Dr. D
Monday, October 27, 2008
What are 545 Politicians at the Bottom of the Sea?
Politicians are the only people in the world who create problems and then campaign against them.
Have you ever wondered why, if both the Democrats and the Republicans are against deficits, we have deficits?
Have you ever wondered why, if all the politicians are against inflation and high taxes, we have inflation and high taxes?
You and I don't propose a federal budget. The president does.
You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does.
You and I don't write the tax code, Congress does.
You and I don't set fiscal policy, Congress does.
You and I don't control monetary policy, The Federal Reserve Bank does.One hundred senators, 435 congressmen, one president, and nine Supreme Court justices - 545 human beings out of the 300+ million - are directly, legally, morally and individually responsible for the domestic problems that plague this country. I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered but private central bank.
I excluded all the special interests and lobbyists for a sound reason. They have no legal authority. They have no ability to coerce a senator, a congressman, or a president to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes.
Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party. What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits. The president can only propose a budget. He cannot force the Congress to accept it.
The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes.
Who is the speaker of the House?
She is the leader of the majority party. She and fellow House members, not the president, can approve any budget they want.
If the president vetoes it, they can pass it over his veto if they agree to.It seems inconceivable to me that a nation of 300+ million can not replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility.
I can't think of a single domestic problem that is not traceable directly to those 545 people.
When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.If the tax code is unfair, it's because they want it unfair.
If the budget is in the red, it's because they want it in the red.
If the Marines are in IRAQ , it's because they want them in IRAQ .
If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.
There are no insolvable government problems.
Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power.
Above all, do not let them con you into the belief that there exists disembodied mystical forces like 'the economy,' 'inflation' or 'politics' that prevent them from doing what they take an oath to do.
Those 545 people, and they alone, are responsible.
They, and they alone, have the power.
They, and they alone, should be held accountable by the people who are their bosses - provided the voters have the gumption to manage their own employees.
We should vote all of them out of office and clean up their mess!
And this column is from Charlie Reese a former columnist for the Orlando Sentinel and I thank him for writing it.
Sunday, October 12, 2008
Thanks Chuck - You Summarize My Positon Better Than I Can
From Chuck Howell:
As to the race for the presidency, I am disappointed in both candidates. The most recent debate was, in my view, a boring embarrassing spectacle. Here were two career politicians jabbering away, endlessly repeating their talking points, never giving a direct answer, never providing any clear and precise definition as to how their "programs" would work to benefit the American people without further spending us into bankruptcy.
Some of the pundits said that McCain's only hope to turn the tide of public opinion was to attack Obama. He didn't, of course, for U.S. senators do not do such things! These fellows are expected to always respect the decorum of the Senate, to promote a collegial atmosphere while debating "extremely important national policy" in a courteous and respectful manner. A prerequisite seems to be that members must be able to speak for at least forty-five minutes without saying anything of substance--both of these gentlemen surely demonstrated these attributes to the extreme. Senator Biden is tops in this category.
Thank goodness that the debate committee chose that old Liberal, Tom Brokaw, to serve as moderator. Tom seem more concerned about time-management than the debate itself--notice how he adroitly selected twenty questions from among Nashville's Corp of Undecided and the Internet, while narrowly avoiding the really important issues facing America today. For instance, where were the questions on the War on Terror (after all it IS only the survival of the Western Culture we are talking about when it comes to the agenda of the Radical Islamists)? How about illegal immigration (what DO we do about the twenty million illegals who are bankrupting our local health care facilities, local schools and other taxpayer-funded social services)? What about the failure of the president and U.S. congress to properly oversee our nation's financial system and markets?
I also wonder why the people chosen to ask questions seem only marginally articulate. Was there some strong weed dispensed at Belmont that evening? I'm sorry. That was crude and uncalled for. And to think that they were once a strong Southern Baptist school.
In my view of things, Senator McCain looked totally un-presidential. In fact, he looked tired and incapable of a good knock-down, drag-out political fight. Bill Clinton would have destroyed him. In the same format, Ronald Reagan would have verbally denuded Obama in about five minutes and showed him to be the novice that he is. Would someone please tell me what this guy has accomplished? Oh, I know how he (as he said on TV last week) "took advantage of the opportunities of this great nation" to get a world-class education. He does indeed appear to have applied himself and I do not question that he is a smart politician. However, what were his accomplishments as an Illinois state senator? Even his spoke people can't or won't answer this question. He has apparently been a non-entity in the U.S. Senate. He has championed no major bills nor has he headed any subcommittees within his purview. the Right Wing pundits all say that he has devoted his time since joining the Senate to running for president. I have found nothing to refute this statement.
The fact that he beat out Alan Keys, a second-rate, inexperienced Black conservative talk show host for the U.S. Senate isn't very impressive. With the political and financial clout of the Mayor Richard Daley's Chicago political machine behind him, Jeffrey Dahmer could have taken that seat.
Then there's his tenure as a Chicago community organizer. If my information is correct, his main objective was to help the under-served minority community to register to vote and get home mortgages which they couldn't afford to pay. Would someone please tell me how this shallow resume qualifies this dude to serve as the president of the United States?
Finally, I don't know about you but I'm more than a little concerned about the associations and political output of both McCain and Obama. While we know that McCain escaped the legal fallout from the Keating Five mess (the Dems own lawyer vindicated him), his votes on illegal immigration and campaign finance reform shows that he is not really attuned to the priorities of the American majority in the first case, and deserves criticism for stomping on the First Amendment in the latter.
Bipartisanship and cooperation is okay when it is in the best interests of the citizenry, however I would like to see a little more spunk from a person trying to win my vote. Frankly, I'm not enamored with McCain "The Maverick." We have a two-party system and when you get too far from the center of your party, you become marginalized and ineffective--I think this definition fits McCain to a Tee. If I hear him brag about "reaching across the aisle" one more time, I think I'll puke. I favor Sarah Palin's take on things....speak direct and with strength. Shoot the damn moose if you need meat in the freezer!
Then there's the extremely important issue of Barack's association with Bill Ayres, Reverend Wright, et al. There is a saying going around the Internet, "What does Obama and Osama have in common? Answer: They both have friends that bombed the Pentagon." How can we trust a person who knowingly associates with an unrepentant terrorist? Troubling.
And, some of you know, my dad was a Baptist preacher.....I sat under his preaching for over twenty-five years, and you can rest assured that what he had to say made a deep impression on me. Now, am I supposed to believe that Barack and Michelle attended Reverend Wright's church for twenty years, heard his virulent Anti-American and racist sermons and weren't effected? Ah, come on! Down home they would say "that dog won't hunt!"
I also find Obama not to be trustworthy. Like the career politician that he is, he parses his words when trying to explain where he stands on important issues. He was recently asked to give his position on the Fifth Amendment. He stated that he "supported the Fifth Amendment," but refused to explain whether or not he believed that the amendment's "right to bear arms" was an individual right or only a right pertaining to "state militias." Of course, Obama is a product of the Chicago political machine and has always voted against gun ownership--he scores a definite "F"by the folks at the NRA. I have no doubt that if given the opportunity, he would appoint supreme court judges who would act to overturn the recent Washington D.C. case where the court found that the rights under this amendment was an individual one, and D.C.s strict ban on handgun ownership was unconstitutional. Okay, if I needed a single issue to determine my vote, this would be it.
I'm one of the Great Unwashed who in times of trouble regularly "falls back on my religion and guns." Today I cleaned several of my guns. With the collapse of the banking system and the meltdown of the stock market, guns and cartridges may be valuable barter items in the coming months. Going dove huntin' on Saturday morning. Barring illness or other calamity, I'll be in church on Sunday. I will continue to pray for our nation and its leaders whoever they are.
Please forgive this wordy epistle. What say you?
God bless America.
Chuck Howell
"Blessed are the cracked for they let in the light"
How Our Tax System Really Works
Bar Stool Economics
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 pay $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.
(True or not - it sounds about right to me!)
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Monday, September 29, 2008
Hunter - One of Four New NRA Ads: "Defend Freedom, Defeat Obama"
Cut and paste into your browser (or lick on the link below) to see the video that Hussein Obama would want to keep you from ever seeing!
http://election.newsmax.com/nra_Hunter.html?s=sp&promo_code=6BBD-1
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Sunday, September 28, 2008
AIG Bailout Plan - The We Deserve It Dividend - From My Friend Ronnie Wallace
AIG......why not do it this way?????
Hi Folks,I'm against the $85,000,000,000.00 bailout of AIG.
Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.
To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child.
So 200,000,000 might be a fair stab at adults 18and up..
So divide 200 million adults 18+ into $85 billion that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.
Of course, it would NOT be tax free.
So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
1. Pay off your mortgage – housing crisis solved.
2. Repay college loans – what a great boost to new grads
3. Put away money for college – it'll be there
4. Save in a bank – create money to loan to entrepreneurs.
5. Buy a new car – create jobs.
6. Invest in the market – capital drives growth.
7. Pay for your parent's medical insurance – health care improves.
8. Enable Deadbeat Dads to come clean – or else!
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back.
And of course, for those serving in our Armed Forces.
If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by Barrack Hussein Obama .
If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
As for AIG – liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here's my rationale.
We deserve it and AIG doesn't.
Sure it's a crazy idea that can "never work."
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .And remember, The Family plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.
Ahhh...I feel so much better getting that off my chest.
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Thursday, September 25, 2008
"Change" - I Don't Think We Can Afford Any More!
George Bush has been in office for 7 1/2 years. The first six the economy was fine.
A little over one year ago:
1) Consumer confidence stood at a 2 1/2 year high;
2) Regular gasoline sold for $2.19 a gallon;
3) the unemployment rate was 4.5%.
4) the DOW JONES hit a record high--14,000 +
5) American's were buying new cars, taking cruises, vacations overseas, living large!...
But American's wanted 'CHANGE'!
So, in 2006 they voted in a Democratic Congress and yes--we got 'CHANGE' all right.
In the PAST YEAR:
1) Consumer confidence has plummeted ;
2) Gasoline is now over $4 a gallon & climbing!;
3) Unemployment is up to 5.5% (a 10% increase);
4) Americans have seen their home equity drop by $12 TRILLION DOLLARS and prices still dropping;
5) 1% of American homes are in foreclosure.
6) as I write, THE DOW is probing another low~~ $2.5 TRILLION DOLLARS HAS
EVAPORATED FROM THEIR STOCKS, BONDS & MUTUAL FUNDS INVESTMENT PORTFOLIOS!
YES, IN 2006 AMERICA VOTED FOR CHANGE...AND WE SURE GOT IT! ....
REMEMBER THE PRESIDENT HAS NO CONTROL OVER ANY OF THESE ISSUES, ONLY CONGRESS.
AND WHAT HAS CONGRESS DONE IN THE LAST TWO YEARS, ABSOLUTELY NOTHING.
NOW THE DEMOCRATIC CANDIDATE FOR PRESIDENT CLAIMS HE IS GOING TO REALLY GIVE US CHANGE ALONG WITH A DEMOCRATIC CONGRESS!!!!
JUST HOW MUCH MORE 'CHANGE' DO YOU THINK YOU CAN STAND?
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Friday, September 19, 2008
Biden to be Replaced by Hillary? Stranger things have happened!!!
Could it be that the nomination of Governor Sarah Palin as vice president has dumbstruck the Barack Hussein Obama campaign?
Are they now scrambling as some DNC "insiders" are saying to dump Biden and "convince" Hillary to run as VP?
Well, maybe Rudy's quip at the RNC was right on spot: "Obama promised to take public financing for his campaign, until he broke his promise. Obama was against wiretapping before he voted for it. When speaking to a pro-Israeli group, Obama favored an undivided Jerusalem , like I favor and like John McCain. Well, he favored an undivided Jerusalem don't get too excited for one day he may change his mind. Well, I'll tell you, if I were Joe Biden, I'd want to get that V.P. thing in writing."
Stay tuned. Many believe that after the first debate Biden will be history with an "illness" that will require he step down. Can't happen? Don't forget that Thomas Eagleton was dumped for "mental illness" issues. I doubt though that BHO and JB will use the same excuse.
Sadly, it should have been Hillary all along.
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Tuesday, September 16, 2008
Fred Thompson on The Danger of Government Guarantees
I’ll bet it came as a surprise to most folks that the financial stability of the world as we know it depends upon the survival of a couple of outfits called Fannie Mae and Freddie Mac.
Yet that’s what the so-called experts are telling us. Moreover, we taxpayers are now being asked to guarantee Fannie and Freddie’s tab, one that could make the $124 billion S&L bailout of the late 1980s look cheap.
So how did we get stuck with this bill? Well, Congress wanted to “do something” about what it saw as a “housing problem.” To them that meant that they should create an even bigger problem.
So Congress passed laws that made it easier for hopeful home-buyers to buy houses … even when they couldn’t afford them. Then the Fed and other regulators helped, in the form of easy money and loose credit standards for mortgages.
Not surprisingly demand for houses grew, home prices rose, lenders financed additional questionable mortgages, fueling even higher prices and so on. You get the picture. This is called a bubble.
Then an amazing thing happened – apparently impossible to foresee. Home prices did not continue to rise forever! Home prices came down and easy money dried up, causing the above mentioned cycle to reverse. In other words, the bubble burst.
So you’d think the in-over-their-heads homebuyers and the mortgage bankers would take the hit, and the market would right itself. No reason for an international meltdown here, right?
Not so fast my friends. Years earlier Congress established Fannie and Freddie as purchasers of these mortgages, which they could bundle up, repackage and sell to investors, freeing up more mortgage money. As government creations tend to do, the two companies grew until they either owned or guaranteed about half the nation’s $12 trillion dollars in mortgages.
Fannie and Fred were “government sponsored enterprises” which means heads they win, tails you lose. If they make money stockholders, creditors and Fannie and Freddie employees – some making millions annually – get the benefit. But now that mortgages have hit the skids, with mounting losses, the taxpayers potentially face trillions in exposure. This is because there is an “implicit” (read “actual”) government guarantee of Fannie and Freddie’s obligations and both are now too big to be allowed to fail. This is called the “bailout phase,” which will probably lead to a bigger bubble in the future.
Lost in this immense, complex mess is the root problem most people are missing: the government is gradually becoming the guarantor of seemingly every important aspect of American secular life, creating incentives and bureaucracies that cause failure and invite fraud.
In Fan and Fred’s case, it was in no one’s interest to turn off the bubble machine. Just the opposite. The system induced borrowers to take on financial obligations they could not afford and lenders to lower lending standards. Fannie and Freddie went along because their managers’ compensation depended on the firms’ short term financial performance. And investors continued to buy complex security packages they didn’t understand, because the securities were viewed as government-backed.
Heavy campaign contributions by those benefiting from this scheme induced Members of Congress to avert their gaze from the ugly mess that was unfolding.
You’d think we’d have learned by now: when the backstop of the federal treasury makes it easier for politicians, lenders, borrowers, welfare recipients, government contractors, or anyone else, to serve their own self interest at the expense of the taxpayer, many will do just that.
That is why we continue to see self-dealing, moral lapses, outright fraud and lack of management and oversight in a wide array of programs and government-sponsored entities, from housing to Medicare, education and the Small Business Administration, all costing taxpayers billions, even trillions of dollars.
Our Founding Fathers knew more than a little bit about human nature. It is one reason why in the Constitution, the federal government was given certain delineated powers and no others. I hate to burst another bubble, but our government simply doesn’t have the authority or the capability to be the guarantor or insurer of our every need or desire. Isn’t it time we started sending that message loud and clear to the big enablers in Washington?
To read more of Senator Thompson's writings, please visit his site on the web at http://www.fredpac.com/
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Monday, September 15, 2008
143 Days of Experience - You Decide?
Some people need to really understand what this means come Nov. 4th.
You couldn't get a job at McDonald's and become District Manager after 143 days of experience.
You couldn't become Chief of Surgery after 143 days of experience.
You couldn't get a job as a teacher and be the Superintendent after 143 days of experience.
You couldn't join the military and become a General after 143 days of experience.
You couldn't get a job as a reporter and become the Nightly News Anchor after 143 days of experience.
BUT.... 'From the time Barrack Hussein Obama was sworn in as a United State Senator, to the time he announced he was forming a Presidential exploratory committee, he logged 143 days of experience in the Senate.
That's how many days the Senate was actually in session and working.
After 143 days of work experience, Obama believed he was ready to be Commander in Chief, Leader of the Free World .... 143 days.
We all have to start somewhere.
The senate is a good start, but after 143 days, that's all it is - a start,and strangely, a large sector of the American public is OK with this and campaigning for him.
We wouldn't accept this in our own line of work, yet many are OK with this for the President of the United States of America?
Come on folks, we're not voting for the next American Idol!


