Showing posts with label Obama. Show all posts
Showing posts with label Obama. Show all posts

Tuesday, January 27, 2009

Is Tim Geithner Really “Too Big to Fail?”

Many of the headlines over the past week read “Confirm Geithner or Else!” As corruption in Washington continues to run amuck, “too big to fail” seems to be the excuse to overlook past and current wrongdoings.

Tim Geithner is now too big to fail. The economic crisis is too dangerous to let a man who is too big to fail sit on the sideline. Geithner must be “Superman.” He must have powers that are extraterrestrial, as there is no one else in the financial sector that has the ability to put the economy back on track again according to President Obama and members in the Senate who approved of his nomination.

Well folks, all I can say is if you liked the way the economic crisis has been handled under the Bush Administration, you will no doubt be thrilled with what’s to come. For those who expected change, brace yourselves for a difficult dose of reality. Real change would have been a free-market solution. Instead, Geithner will continue policy that will further erode the free market and expand the power of the government.

Tim Geithner has not sat idly on the sidelines for the past year. He has already had extensive involvement in the government’s response to the financial mayhem. Based on Geithner’s record, he seems to think that bailouts are the solution. He advocated the rescue of Bear Stearns and played a key role in the rescues of American International Group (AIG), Bank of America and Citigroup. It’s a good thing that top executives in these companies put the funds to good use. AIG felt lavish executive retreats were necessary. Bank of America paid huge bonuses to Merrill Lynch executives. Citigroup partnered with the New York Mets baseball team by paying a $400 million naming-right expenditure to call the stadium where the Mets play “Citi Field.” Some may rightfully argue the cost/benefit of such a decision, and it would be a legit argument if the company did not receive federal money. Besides, I thought the credit markets were frozen!

Based on the testimony Geithner gave at his confirmation hearing, I am left wondering what exactly those “superpowers” are.

Geithner said, “Senators, the ultimate costs of this crisis will be greater, if we do not act with sufficient strength now. In a crisis of this magnitude, the most prudent course is the most forceful course.” He says Obama’s stimulus plan “will meet that test.” (1)

It is interesting that the scare tactics continue in an effort to give the government an excuse to spend trillions of dollars and hold stakes in our largest banks; when in reality, this “crisis” isn’t even close to what was experienced in the 1970’s. Has Geithner seen Obama’s stimulus plan? Perhaps he could explain how the same tax incentives that were part of Bush’s plan last year and the massive government spending that includes handouts to states to fund safety-net programs as well as free contraceptives would stimulate the economy. The aim is to stimulate the economy isn’t it? It’s possible that Speaker Pelosi was thinking about a different kind of stimulation…

Geithner mentions the Senate’s passage of the second Troubled Asset Relief Program (TARP) tranche, but says “we have to fundamentally reform this program” to ensure there’s enough credit to support the recovery. He also says the nation needs “investments” in infrastructure, a strategy “to get us back as quickly as possible to a sustainable fiscal position” and then “comprehensive financial reform” so the world will “never again face a crisis of this severity.” (1)

It seems that Citigroup didn’t have a problem getting credit. Nowhere in his testimony does Geithner mention repeal of the Community Reinvestment Act – the act which played a key role in the housing debacle. This act forced banks through government mandates to loan money to people who could not afford to repay which led to the birth of the subprime mortgage market. Instead of overusing the word “crisis,” his plan should focus on transparency and prudent lending standards.

Geithner may not wish to tip his hand at the moment, but I would expect to see proposed changes to the Financial Accounting Standards Board Statement Number 157 which has failed in the attempt to value illiquid assets and has earned the phrase “mark-to-make-believe accounting.”

As for infrastructure spending…there is an idea that’s never been tried before. His expertise in economics should reveal to him that most of the benefits of infrastructure spending are delayed and could take effect during an inflationary period. In addition, the money is rarely used for what it was intended, and we don’t see real economic growth when the government spends money. History has proven that the government cannot spend the country out of recession. This kind of spending can make our dollar worthless, however!

Geithner’s responsibilities also include oversight of the Internal Revenue Service (IRS). It is comical that we entrust a person who has evaded taxes to be in charge of the IRS. Geithner claims his mistakes were innocent. However, if they were innocent, should America have confidence in a man who has difficulty using Turbo Tax (a software that people with no accounting/financial background can easily use), has difficulty understanding IRS Publication 503, and doesn’t realize he has to pay Social Security tax, Medicare tax and employed an immigrant housekeeper who lacked proper work papers?

In summary, Geithner’s appointment further illustrates that there is no real change in Washington. In addition to Geithner’s tax problems, there is a very questionable record of “expertise.” He’s played a pivotal role in managing TARP funds. It’s quite clear that the first half of TARP funds were misspent. As President of the New York Federal Reserve Bank, his supervision of corporate giants like Citigroup was questionable. Although Geithner talked about holding such institutions to the highest regulatory standards, the record shows that New York Fed relaxed the standards as the company bet big on subprime mortgages and had massive risk exposure to other perilous investments.

So why is it that we have so much confidence in people such as Geithner to fix a problem when they have shown poor judgment and played a role in causing the problem? Answer: the elite financial club has its benefits.


(1) http://blogs.wsj.com/economics/2009/01/21/live-blogging-tim-geithners-confirmation-hearing/

This column is also cross posted at our new website: http://www.conservativetoday.org/

Tuesday, January 20, 2009

Obama’s Coronation

Today, people in all parts of the political spectrum should briefly set aside politics and reflect on the moment in history Obama’s inauguration represents. His victory represents a significant movement towards an end to racial divides. For that reason, everyone can be proud of America for the great strides that have been made over the past four decades to allow this moment in history. However, as historic as this inauguration is, it is possible to go overboard. It is as equally important to not lose sight of the growing problems facing America.

The manner in which the media has portrayed Obama would lead one to believe that the coronation of a monarch was taking place in America as opposed to swearing in its 44th President. The masses couldn’t be happier. People have gone to great lengths to be a part of this historic event. From school closings and vacation days from the jobs that they once feared they would lose to opening up tight budgets to allot for the purchase of all of that special Obama paraphernalia. The most expensive inauguration in America’s history (makes Sarah Palin’s $150,000 wardrobe look like pocket change) would lead one to believe that the economy may be recovering. If only that were the case…

The day after Obama’s victory, I wrote a column titled “America’s Impending Hangover: How it’s Love Affair with Obama Will Be Short-lived.” Today’s inauguration will mark the peak of “Obamamania.” It is now time for him to deliver on the mountain of promises in which he campaigned. He has roughly one year to blame George W. Bush. However, after that time period, the Kool-aid will run out; and people will expect results. Let’s go through some of the highlights of Obama’s promises, and the ones he has already broken…

Foreign Policy

I predicted that this would be the area in which Obama would deviate off his campaign rhetoric the most. Remember his promises to end the Iraq war? Remember how he said he would begin withdrawing troops on his first day in office? We’ve gone from that analogy to his retention of Robert Gates as Secretary of Defense – whose team he harshly criticized throughout the campaign. Obama never acknowledged that the surge allowed exactly what he wished – a responsible transition to the Iraqi army. One had to dig deep for this information, as the mainstream media would never report any kind of success in Iraq. However, the media will be changing its tune shortly on this topic in order to give Obama credit for the victory in Iraq – something that was well in hand long before he took office. For all of you anti-war folks out there - don’t be too disappointed when he escalates the war in Afghanistan. That’s one promise I believe he’ll keep.

Obama’s pledge to close Guantánamo Bay is sheer political rhetoric to please his left-wing constituents that donated big money to his campaign. The bottom line is he cannot close this camp without a plan for its detainees. What kind of a plan could be devised on our soil to incarcerate suspected militant combatants - dangerous enough to the point where their home country will not take them back? Obama knows if he leans too far left on matters of national security, and America suffers an attack under his watch; the love affair is over. He has a second term to think about.

Economic Policy

In my last column, I have already outlined the major flaws in Obama’s so called stimulus plan. In this column, I’ll focus more on what is absent from the plan that should be part of that plan.

Let’s begin with the housing debacle. Nowhere do I see a call to repeal the Community Reinvestment Act.

- The act that forced lending institutions to loan money to people who had no financial means to repay (so much for the deregulation argument)

- The act that artificially drove the cost of housing “through the roof” by adding droves of buyers to a market in which they did not belong

- The act that is largely responsible for the rapidly declining housing prices and foreclosures

Stay tuned for a more detailed analysis, as this topic deserves a separate column.

The number keeps changing, but as it stands now, Obama plans to create 3 to 4 million new jobs within the first two years of his presidency. Last I checked, the private sector creates jobs; and the government makes it more difficult, but we’ll roll with this for illustration purposes. If we go with the conservative estimate of 3 million, that’s roughly 4,110 new jobs per day. Our unemployment rate is currently 7.2 percent. If we net 28,770 new jobs per week, he’ll have that number back down to a stable 5 percent in no time! If that is the case, then there is no need to extend unemployment benefits, as it would be counter productive.

Obama has championed the age-old failed tactic of borrowing and spending to prosperity. It’s never worked in the past; it’s not going to work now. Instead of multi-billion dollar bailouts for individual states, the banking industry and other failed politically connected businesses, absent are reduced tax rates and government spending. Real change would have been proper implementation of supply side economics which has NEVER been done. President Reagan was close; but he failed to restrain government spending and reduce the size of government to sustain long-term success.

In summary, our new President has come to a crossroad. In order to be successful and continue to ride the wave of adoration and idolization, he must abandon his extreme left-wing ideology. Otherwise, when the world feels the effect of America’s 1+ trillion dollar deficits, this “slobbering love affair” (as Bernie Goldberg accurately describes it) will soon be over.

Friday, January 2, 2009

2008 Election Reflection

I think the 2008 election was probably the most insane election I have ever seen and probably in the history of presidential elections. On the left we had a former community organizer who spent only a few years in the Senate running for the most powerful position in the country. On the right a former prisoner of war who was a well known Senator for many years. Obama’s Vice Presidential candidate was almost comical. Here we had campaign based on ‘hope and change’ and Obama picks Biden, who has been in the Senate for many years and had said that Obama was not ready to be President during his run in the 08 primaries. McCain’s Vice Presidential candidate was a brilliant move. Palin sent the Democrats in a tailspin. She ratified the Republican base and she had many of Clinton’s supporters jumping ship.

Then we have the Main Stream Media (MSM). Never before had I seen such blatant irresponsible journalism in my life. They moved Obama to ‘messiah’ status. Failing to report on important issues surrounding his campaign. Wright, Ayers, Rezko to name a few. They gave him a ‘cakewalk’ throughout the primaries and the election. They refused to ask him tough questions about … well ANYTHING. The love affair they had with him was both obvious and sickening and completely unforgivable.

Of course, the way the MSM treated McCain and Palin is a much different story. They attacked both on personal issues, especially Palin and her family. McCain is a revered war hero who did many great things as a Senator. Palin worked her way up from the PTO to Governor of one of the largest states in the country. It seemed as though any good that they did meant absolutely nothing to the MSM. They crucified Palin on any and all levels they could. From her being a beauty queen when she was younger to false accusations that her son Trigg was really her daughter Bristol’s.

And we cannot forget the voters. More black Americans voted in this election than in the history of elections since they won the right to vote. Why - Simply because Obama is half black. Black Americans are the majority Democrats, however, they do not typically come out to vote. Could it be because Obama paid an offshoot of ACORN over $800,000 to ‘get out the vote’? I doubt it. There were also hoards of college students voting in this election. While college students are typically liberal, they too typically do not vote. It was also clear that neither of these groups truly knew what was going on in our country today (as in who lead Congress – Zogby Poll of Obama voters). They only knew that McCain is Republican and so was Bush. They completely disregarded or did not care about Obama’s very liberal message during the campaign. OR they bought into his promises of taxing the rich to give them money. Either way, most of them were completely uninformed regarding Obama’s past and the current events in this country AND abroad.

Let us also not forget feminist groups like NOW, who blatantly and hatefully were against Palin as soon as she was nominated. Why – simply because she is pro-life. Never mind that she is a professional woman who also has a family. Forget that she has worked hard to get where she has due to diligence and brains. No, those things aren’t enough for the femi-nazi groups. In order to be truly backed by these so called women who support women you just have to be pro-choice or pro-abortion. Palin represents an entirely different feminist woman in this country. ALL women should have been and be proud of what she has and will accomplish. To think that Palin alone with abolish Roe v Wade is extreme ignorance on their part. These women claim to be smart but frankly, they are just plain stupid and arrogant.

Alas, I have to give Obama credit – he ran a fantastic internet campaign that totally hit the younger voters. He got millions of dollars (from who knows where) and used it wisely. McCain or whoever would have run against Obama didn’t have a chance. With the free ride from the media, the uneducated voters and millions of dollars, Obama was really a shoe-in. McCain seemed to gain momentum after choosing Palin but he blew it when he voted for the bailout. McCain should have got down on that Senate floor and in front of the Senate and the entire world voted NO. THAT is the McCain that we all know. Let’s face it, McCain’s campaign was not run well. Obama’s campaign was run the complete opposite.

There is so much more I could add to this but I don’t want to put people to sleep. I keep wondering if I should be pessimistic or optimistic about 2009. Obama seems to be gearing more towards centrist choices (pissing off liberals in the meantime). He has not come out and said he will not raise taxes on business or anyone in 2009 though. This is what keeps me fearful. I’m not sure how much economic history he has read but maybe that is what he should be looking into before January 20th. If he goes forward with the plans he touted during his campaign, this country is in big trouble. If he leans more centrist as he seems to be, the we have hope - yes I said it - we have hope! Because otherwise all we’ll have is change – BAD change.

Monday, November 17, 2008

Chasing Fairy Tales

Oh lordy, I must have gone back in time because it feels like 2000 all over again. A long, drawn out presidential campaign with a heavy partisan tinge. Emotions riding high on both sides. The victorious candidate being called illegitimate. Except, this time, the winner had an electoral college blow-out and its not his victory being contented, but his status as a natural-born American citizen.

According to reliable sources, Barack Hussien Obama II was born in Hawaii, but don't tell that to the vast swathes of narrow-visioned layman intellectuals trying to add another stain to the already soiled history of American presidential elections. They contend that President-Elect Obama's birth certificate was faked and that he was actually born in Kenya, which would make him a naturalized citizen, not a natural-born citizen and disqualify him from holding the office of the President of the United States of America.

Common sense has apparently fled in the face of absurd personal and/or political vendetta. Despite not being totally vetted by the media as John McCain or Sarah Palin were, Barack Obama was vetted by an institution much more biased and very, very thorough: the Clinton political machine. If the sue-happy individuals would just stop and think, maybe they'd realize that half the legitimate points brought up by McCain/Palin (Ayers, Wright, radical leftism,etc) were originally brought up by the Clinton primary campaign. You would think one of the most ruthless political dynasties bent on making Hilary Clinton president would be able to find such major dirt on her biggest threat. Then again, the birth certificate experts believe they're smarter than hundreds of thousands of experienced political mudslingers and the entire American public.

Like equating the President-Elect to old, dead genocidal dictators, these fairy tale charges do nothing for the grander plan of the new grassroots conservative movement: victory in the marketplace of ideas. Conservatism isn't insane personal hates dressed up as noble political endeavors. Conservatism isn't de-legitimizing a president simply because we don't like him. That's something for the lefties and the Democrats to do.

At the core, conservatism is the long-standing, righteous American ideology of traditional values, free markets, a strong national defense and a federalism that does not overreach. These are easy ideas to preach if we stick to the path of actually preaching them instead of charging at windmills in the distance.

How are we to win over the minds of the young student and the working man if we're too busy trying looking through trash heaps looking for pieces of gold?

Friday, November 14, 2008

Dems and National Security: Where Change Is Actually Needed

Since President-Elect Obama's victory two very important national security issues have been brought up and commented on: the status of the prisons at Guantanamo Bay and the Missile Defense System. Both answers have been discouraging.

Mr. Obama gave no guarantees that the MDS program in Eastern Europe would continue. This answer comes only a few days after Russia brazenly moved missiles in the direction of Poland and a few months after Russia invaded Georgia. Earlier this year threatened the Ukraine with nuclear destruction if it joined NATO. This answer comes during a time with an uncooperative Iran testing long-range, nuke-able missiles with increasing frequency. This answer comes when North Korea is on the verge of a new era of leadership or a new world of chaos as the Stalinist state deals with competing strongmen.

Apparently, our new president has not learned anything from the Cold War. The benefits of the containment strategy are up for debate, but the deterrence strategy was undeniably one of the major reasons the Cold War never went hot between the United States and the Soviet Union. Our ability to retaliate in such force as to completely annihilate the Soviet Union kept the Communists from attempting such an insane idea. Our conventional force acts a deterrent as well. North Korea could easily overpower the forces we have just outside, except that tens of thousands of dead American soldiers would not bode well for the power hungry dynasty. There's a reason our only major enemy during the two decades since the fall of the Iron Curtain has been fanatical terrorists bent on our complete annihilation and its not our lack of things that go boom.

Concerning Gitmo, President Bush has had quite the time trying to explain to the public and to the Democratic left the complexity of the operation and the reality of their detainment. Many of the terrorists and terrorist suspects at Gitmo were picked up on the battlefield. Out of the original 600 prisoners, now there are only 250. Some of those released ended up back in prison, picked up while aiming their rifles at American soldiers. Some have even been been culprits of suicide bombings and other terrorist attacks. Many of those still in prison have nowhere to be sent as many nations think having terrorists and terror suspects in their borders an abhorrent idea. These terrorists are not normal soldiers, but they are also not the straight up criminals you find daily in American courtrooms. This is a new war in which both national security and criminal justice must be sated. This is not an easy task, and as White House Spokesman Dana Perino has pointed out the Democrats are about to discover this jarring fact.
"We've tried very hard to explain to people how complicated it is. When you pick up people off the battlefield that have a terrorist background, it's not just so easy to let them go," Perino said. "These issues are complicated, and we have put forward a process that we think would work in order to put them on trial through military tribunals."
There are two major questions we must ask the President-Elect if he plans on shutting Gitmo down. Firstly, will the terrorists and terror suspects have access to American civilian courts? Secondly, where are these terrorists and terror suspects to go if no nation takes them?

The first answer can be found in the Supreme Court's ruling Boumediene v. Bush. This is a ruling in which a terrorist was given access to American civilian courts so he may challenge his detention. The 5-4 decision was along ideological lines and outraged the White House as well as national security experts. The ability of terror suspects to challenge their detention through civilian means, and the idea that the War on Terror is only a law enforcement or a military matter, will subvert our defenses against an enemy that has created a version of asymmetrical warfare that requires both law enforcement and military methods to defeat it.

The second answer can be found in another ruling in which 17 Uighur terror suspects found in Afghanistan were allowed entry in to the United States since no other nation would take them. These suspects were not found to have committed crimes against the United States, but there is a significant Islamist insurgency by Uighurs in China. The biggest threats against the 2008 Olympics in Bejing were from these Islamists. Although not our enemies by action, these men are of the same mind and ideology as the bombers in Iraq, the murderers in Spain and Britain and the suicide pilots on 9/11. It is one thing to let these men go because they are not a direct threat to us; it is another thing to send them into a completely alien culture they may find detestable at minimum, an abomination at most. We have millions of non-citizens crossing our borders illegally to find better jobs and lives and there are millions more are trying to get into the United States through legal means. Why would should we allow 18 non-citizens that may have ideological and cultural animosity towards us? One is not an American purely by the fact one resides in America.

President-Elect Obama needs to set his mind straight on these issues. Both involves the lives of Americans and both involve the security of many nations, not just ours. We cannot allow aggressive, imperialistic nations to intimate us and our free allies nor can we just throw back to old, static strategies when it comes to a new breed of military enemy in a new, complex world. Mr. Obama needs to adhere to his talk of change because if he sticks to the rhetoric of the old Democratic Party and of the left wing nothing good will come of it.

Cross-posted at Generation Patriot