Archive for March, 2010

Mike Flynn

The Little Fed Report that Could…and Did Create a Housing Bubble

by Mike Flynn

While most of the public is consumed by the health care-death-march spectacle, Senators Bob Corker and Chris Dodd are making serious progress on the Senate’s “financial services reform” legislation. The legislation was dead just a couple weeks ago, but Sen. Corker thought he could snag a seat at the grown-up table and stepped forward to ‘cut a deal.’

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As is the new DC operating procedure for major legislation, there are almost no firm details on the current language. We know there will be a large new federal bureaucracy, somewhere within government, to provide “consumer protection” for financial products. We know there will be a $50 billion tax on banking customers to provide a permanent bailout fund, or as Sen. Corker would describe it, a “wind-down” fund. Unfortunately, we also know that the bill will do nothing to reform Fannie Mae or Freddie Mac, who continue to drain billions from the U.S. Treasury.

We’re told the Corker-Dodd Bailout Bill is a necessary response to the financial melt-down triggered by the collapse of the housing bubble. But, if it doesn’t take even small steps to reform Fannie and Freddie, then, simply, it isn’t a serious proposal. Its like rebuilding the porch on a house, while ignoring it’s cracked foundation.

Washington politicians would rather ignore this, but the housing bubble was the result of very explicit government policy. Throughout the 90’s and early 2000’s, officials from both parties became addicted to forever pushing homeownership rates higher than the laws of economics would otherwise allow.

If you want to identify the roots of the homeownership-cult among elected officials, fire-up the way-back machine and check out a little report issued by the Federal Reserve Bank of Boston in the early 90’s. Under the leadership of Richard Syron, then-President of the Boston Fed (more on him later), the report was the result of discussion among the bank’s staff and the usual collection of academics and professional activists. It was to make recommendations to the nation’s bankers on addressing alleged discrimination in mortgage lending.

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SusanAnne Hiller

Gibbs: If Senate Bill Passes House It Will Go to the President’s Desk

by SusanAnne Hiller

The other day I exposed the fact that Harry Reid switched the language in the House-passed H.R. 3590 Service Members Home Ownership Tax Act of 2009 and inserted the Senate version of the healthcare bill via a manager’s amendment in order to meet the requirement that all legislation raising taxes must originate in the House.

Harry-Reid

The Senate passed the revised bill with the healthcare language in it, and now the House must revote on the deceptively gutted changed bill because, according to the Constitution, the identical bill must pass both the House and Senate in order to be signed into law.  And, once the Senate Health Care bill pass the House, President Obama will sign it right away.

The threat of reconciliation in the Senate is hollow. There isn’t going to be any reconciliation.

On January 31, 2010, before the House was set to take up the Senate bill, WH Press Secretary Robert Gibbs, during an interview on CNN’s “State of the Union” stated:

“If the House would take up the Senate bill then that bill would go to the president’s desk,” Gibbs said.

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Central Illinois  9/12 Project

ShoreBank: A Key To Green Jobs

by Central Illinois 9/12 Project

If you ask people on the street (outside of Chicago) if they have ever heard of ShoreBank, the answer would likely be “no.” While ShoreBank isn’t a Goldman Sachs, a Bank of America, or a JP Morgan, to the Progressives, this “little” bank is in many ways every bit as big and important as the aforementioned “large banks.”

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Why?

One of the core components of President Obama’s fundamental change for America is to create clean energy jobs, also known as “green jobs”.  During his campaign and as recently as his State of the Union Address, President Obama continues to talk about the need “green” jobs. In fact, during his State of the Union 2010 speech, the President stated, “We should put more Americans to work building clean energy facilities –  and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. “

In a speech given by the President in Virginia on Dec. 15, 2009, he said, “The simple act of retrofitting these buildings to make them more energy-efficient — installing new windows and doors, insulation, roofing, sealing leaks, modernizing heating and cooling equipment — is one of the fastest, easiest and cheapest things we can do to put Americans back to work while saving families money and reducing harmful emissions.”

In the  stimulus package last year, President Obama devoted nearly $60 billion of his plan for building a new green-based economy.

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Capitol Confidential

National ID Card Being Considered By Senators

by Capitol Confidential

As Senators Lindsey Graham (R-SC) and Chuck Schumer (D-NY) are working on a Senate version of comprehensive immigration reform and it includes a very controversial idea.  There is a provision in the draft bill to force all Americans to possess a biometric ID card.  Sources on Capitol Hill confirm to Big Government that the idea of a national ID card is part of the comprehensive immigration reform bill being negotiated between Graham and Schumer.

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Laura Meckler of the Wall Street Journal reports:

Lawmakers working to craft a new comprehensive immigration bill have settled on a way to prevent employers from hiring illegal immigrants: a national biometric identification card all American workers would eventually be required to obtain.

Under the pre-text of halting illegal immigration, Congress may consider forcing citizens to carry an ID card as a condition of citizenship.  For those who mistrust big government and treasure freedom, this idea should be revolting and a shocking example of a bad idea run wild.  American citizens’ freedoms have been eroding over the past few years, yet this idea is much more than an erosion of rights.  It is an all out assault on the idea that Americans have a natural right to be free of government monitoring. (more…)

Publius

Its Only Money: Democrats Prepare $100 Billion Jobs Bill for Local Governments

by Publius

From The Hill:

No Americans Need Apply

Democrats are set to unveil a new jobs initiative Wednesday that will provide grants to local governments to save or create jobs.

House Education and Labor Committee Chairman George Miller (D-Calif.) will join other lawmakers and mayors to announce a $100 billion program to support jobs initiatives in local governments and municipalities.

“Our goal is to retain or create a million jobs,” Miller said during an appearance on CNBC Wednesday morning. “There’s some very serious concern that the small, good news we’re getting right now on the unemployment figures could be wiped out by what’s going to happen in local governments, if they don’t get some assistance.”
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Bob Parks

Ryan: ‘This Bill Is More About Ideology Than Health Care Policy’

by Bob Parks

Rep. Paul Ryan (R-WI) told Greta on Tuesday night that Obamacare is all about politics and has nothing to do with health care.

“And, I really think it comes down to a political philosophy. And they believe in a political philosophy that is more like a cradle to grave, more of a social welfare state, kind of like you see in Europe versus the American ideal that we’ve known and loved and grown up with. And, so really what this is more about is ideology than health care policy. Because if this was about health care policy we could get a bi-partisan agreement tomorrow. It’s not about health care policy. They are trying to ram it through as fast as they can before their power slips away from them and that’s why they’re trying to create this brand new entitlement which really does have the government takeover 17% of our economy.”

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Andrew  Marcus

Drudge By Numbers: Gov’t Spends $71,433 Surfing Drudge Report In First 9 Days Of March

by Andrew Marcus

locked-computer

We noticed with amused curiosity, reports of an email circulating the digital halls of Congress warning staffers not to visit the Drudge Report for fear of viruses.

Senate Staffers Warned to Stay Clear of Drudge Report

The Senate’s official gatekeeper, said the Drudge Report, a conservative news aggregator, and whitepages.com “are responsible for the many viruses popping up throughout the Senate,” according to an e-mail to the Environment and Public Works Committee.

Drudge responded that his millions of other satisfied customers have had no complaints. He also revealed the following statistics:

“The site was seen 149,967 times since March 1st from users at senate.gov and 244,347 times at house.gov. [10,825 visits from the White House, eop.gov]” the Drudge Report wrote.

We made some very rough calculations and arrived at the following analysis:

149,967 Hits to Drudge from senate.gov since March 1 = 16,663 hits per day

244,347 Hits to Drudge from house.gov = 27,150 hits per day

If one spends just 30 seconds scanning headlines, that’s 139 hours per day of scanning headlines in the Senate. That requires 17 Senate staffers putting in a full 8 hour day.

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John Berlau

The Corker-Dodd-Alinsky Bill? : Center-Right Coalition Letter Warns about ‘Proxy Access’

by John Berlau

Capitol Confidential and Jim Hoft have done an excellent job laying out concerns with the potential “compromise” bill that comes out of Sen. Bob Corker’s negotiations with Chris Dodd.  But when it comes to the destructive provisions that could come out of a Dodd-Corker deal, they may have just scratched the surface.

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In addition to the troubling new powers for a new nanny-state consumer agency and possibly the Federal Reserve added to the prospect of billions more in bailouts for reckless financial firm, the bill may also contain the sneaky  “proxy access” power grab for unions, radical environmentalists, and other groups on the Left. This rule, inspired by Saul Alinsky’s Rules for Radicals, is contained in Dodd’s “discussion draft” bill from late last year.

As I detailed in BigGovernment last week, “proxy access would federalize and override decades of state law governing the structure of corporations and force publicly-traded companies to put shareholders’ nominees for a board of directors on a company’s proxy ballot along with the firm’s own nominees for those positions.” Many shareholder groups that are pushing this are union pension funds, the radical Tides Foundation, and other progressive groups — from animal rights to anti-Israel — who place their own political agenda items at the expense of ordinary shareholders.

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Veronique  de Rugy

Who Is The Stimulus Money Stimulating? Teachers

by Veronique de Rugy

Based on the Recovery.gov data, more than two third of the 594,754.3 jobs “created or saved” with the stimulus funds were “created or saved” in the Department of Education (see chart).  Basically, what the administration meant by shovel ready projects was funding for your next door teacher.

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Now, let’s recap some of findings and news of the previous weeks.

1. Most jobs are created in the Department of Education

2. In 2009, for the first time ever, more public-sector employees (7.9 million) belonged to a union than did private-sector employees (7.4 million) despite there being five times more wage and salary workers in the private sector.

3. A third of all union jobs are in Education

4. 33 percent of the education industry is unionized

5.  The union boss, Andy Stern, was appointed to be on the president’s debt commission.

It all makes sense, doesn’t it?

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Thomas Del Beccaro

With No Primary Fight, Brown Launches ‘Reasonable Jerry’ Tour

by Thomas Del Beccaro

No surprise: Jerry Brown is running for office again.  In Jerry’s words, “I’ve run for more offices than any other candidate that still is alive.”  This time, he is the lone Democrat candidate running for Governor in California.  Since his belated announcement last week, Jerry has done his best to sound reasonable as a candidate.  Surely, California voters should know it is only an act.

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In running for those many offices, Brown has taken countless liberal positions.  As Governor, Brown empowered public employee unions, strongly opposed the death penalty and appointed judges who strongly opposed it.  He opposed Prop 13 before he was for it – but only after the voters passed it. When he ran for President, in 1980, he was for universal health care and said his economic agenda was based, in part, on Buddhist Economics – followers of which endeavor to measure “Gross National Happiness.”  In 1992, when he ran for the Presidency a third time, he touted “living wages,” fought free trade agreements and said he would consider Jesse Jackson as a running mate notwithstanding Jackson’s controversial if not anti-Semitic remarks.  Such is the life of a career liberal like Jerry Brown.

In 2009, while still in the race for Governor, liberal Gavin Newsom said of Jerry Brown’s candidacy: “We’re not content to relive history. We’re going to keep making it.”  To ensure that Brown’s latest history would not include a loss to Newsom, Brown resumed his liberal ways.

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Charles C. Johnson

Please Sir, May I Have Some More? John Olver (MA-1), Earmark King

by Charles C. Johnson

As I predicted, Scott Brown’s triumphant victory as the first Republican U.S. Senator in 38 years was only the beginning. Next came the retirement of disgraced U.S. congressman, Bill Delahunt (MA-10), which this columnist helped expose at this website.

Rep. John Olver

Rep. John Olver

Now here comes crowded Republican primaries for Massachusetts’s other congressional races. Many of these candidates will lose, but by running they will give their opponents the first real race many of them have seen in decades and they will give new life to an endangered species, the Massachusetts Republican.

This is all part of a transition, moving the people of Massachusetts and their politics back to the middle, back to better representation.

For the Massachusetts congressional delegation, times are tough. Demographic change has meant that their numbers have shrunk to ten members, the lowest for the Bay State since the 1860s. If Republicans retake the House, the people of the Commonwealth will be all but shut out of congressional policy. With Ted Kennedy dead and no one left to direct the delegation, the congressmen will make for easy pickings, despite their considerable warchests amassed over the years. Here’s an assessment of the perceived vulnerabilities of John Olver (MA-1) that Republicans might exploit, moving his congressional district closer to the accountable government we’ve been looking for, and saving the people of Massachusetts much embarrassment once Republicans retake the Congress.

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Publius

Wednesday Open Thread: Pa Bell Edition

by Publius

Today, in 1876, Alexander Graham Bell made the first successful telephone call.

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Phil Kerpen

The Stimulus Bill’s Hidden Attack on What We Eat, Drink, and Smoke

by Phil Kerpen

One of the more extreme proposals floated early in the national health care debate was the idea of taxing soda and other sugary beverages. That trial balloon was almost immediately shot down by the American public, but the Obama administration is attempting to achieve, by subterfuge, soda taxes and a lot of other ways to micromanage our lives in the name of public health—whether or not ObamaCare passes. The mechanism is buried in last year’s $862-billion-and-counting stimulus bill, and works by diverting hundreds of millions of dollars that should be promoting economic growth to instead pay lobbyists to push for higher taxes and nanny-state controls over our lives.

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It’s on pages 66 and 67 on the American Recovery and Reinvestment Act, which created a $1 billion “Prevention and Wellness Fund.” Of that, $650 million went to Kathleen Sebelius’s Department of Health and Human Services and has been used to start a new program at the Centers for Disease Control and Prevention (CDC) called “Communities Putting Prevention to Work” (CPPW).

Where does that giant pot of grant funding under the CPPW go? What it calls “MAPPS Interventions for Communities Putting Prevention to Work.” MAPPS stands for “Media, Access, Point of decision information, Price, and Social support/services.” In other words, strategies for changing our behavior, for social engineering on a large-scale, and, it seems, circumventing the normal democratic process. In a 14-page guidance for grant applicants, the CDC details tactics that grant applicants should include in their plans. It includes “counter-advertising” against targeted products, complete tobacco usage bans, limiting “unhealthy food availability” (the really bad stuff like “whole milk, sugar sweetened beverages, high-fat snacks”), and of course taxes (or in CDC lingo: “changing relative prices of healthy vs. unhealthy items”).

A supplemental document explains in more detail what the targets are, including restricting availability of soft drinks “in homes, schools, work sites, and communities.”

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Nick Gillespie

Reason.tv: Pork Party House! Where DC Insiders Go for Tax-Subsidized Fun

by Nick Gillespie

First Rep. Charlie Rangel (D-N.Y.) surrenders his chairmanship of the Ways and Means Committee amid an ethics investigation. Now Speaker Nancy Pelosi (D-Calif.) proposes an idea that she hopes will help her make good on her promise to help lead “the most ethical Congress in history”—a party-wide ban on earmarks. Will it happen? Don’t bet on it. Reason.tv’s “Pork Party House” helps explain why neither party can resist the pull of pork.

If you’re a politician, lobbyist, or insider and you’re in the mood to party, check out a Washington D.C. mansion called the Sewall-Belmont House. Party with senators and celebrities at thousand-dollar-a-plate fundraisers! You might even get to ride a mechanical bull! The Sewall-Belmont House hosts so many A-list events, you might be surprised to find out that your tax dollars help fund this hotspot for Washington insiders. “Over the last 10 years, the Sewall-Belmont House has gotten over $3.4 million in earmarks,” says Leslie Paige of Citizens Against Government Waste.

Reporters often highlight the most ridiculous examples, but politicians have learned how to make their pork projects sound uncontroversial, even appealing. Just say your project will help children, senior citizens, or—if you really want to slip under the radar—direct taxpayer dough to a museum.

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Kerry J. Byrne

Pilgrims and Minutemen: Lessons for the Left from 1623 and 1776

by Kerry J. Byrne

Misguided leftists can learn a lot from American history. They can learn a lot, specifically, from the lessons provided us by the Pilgrims clinging to life on the Massachusetts coast in 1623 and by the wide-eyed British invaders who set foot on the New World in 1776.

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Just ask Nathaniel Philbrick and David McCullough, two of the nation’s most popular contemporary historians.

I couldn’t help but notice very illuminating (and perhaps unintended) odes to traditional conservative values in recent works by each author about pivotal moments in American history.

The first illuminating passage came in Philbrick’s spectacular book, “Mayflower: A Story of Courage, Community and War.”

He does an incredible job of taking the pop-culture caricature of the Pilgrims and bringing their real story to life – real humans with real struggles and hopes and dreams.

You know the basic story of the early days of the Plymouth Colony. The settlers had trouble feeding themselves in the first few years, to the point that starvation was a very real problem. But they quickly found a solution.

Here are Philbrick’s words:

“The fall of 1623 marked the end of Plymouth’s debilitating food shortages. For the last two planting seasons, the Pilgrims had grown crops communally … but as the disastrous harvest of the previous fall had shown, something drastic needed to be done to increase the annual yield.”

So here’s what happened:

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Joel B. Pollak

Former Apartheid Spy Appointed to Head UN Climate Change Effort

by Joel B. Pollak

This week, Marthinus van Schalkwyk, South Africa’s tourism minister, was nominated to head the United Nations Framework on Climate Change (UNFCC). Van Schalkwyk is a former apartheid operative who bartered his way into the black majority government by helping it smear its democratic opposition. He is a statist bureaucrat who is one of the most unpopular political figures in the new South Africa. He is just right for the job.

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There is no one better to put in charge of the entire political enterprise of climate change as it is collapsing amidst failed negotiations and accusations of fraud. Van Schalkwyk will be sure to hasten the end. He did the same when he took over the rump of South Africa’s National Party, the party of apartheid, and led it to crushing defeat. He gave up and joined the African National Congress (ANC) government in return for his ministry.

That was bad news for South Africans, as Van Schalkwyk encouraged other politicians to defect from the country’s leading opposition parties to join the corrupt and hegemonic  ANC. (An angry public began referring to those who crossed the floor for political favors as “crosstitutes.”) But it is good news for critics of the UN climate change bureaucracy, who now have a target who personifies everything there is to dislike about the system.

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Publius

Milwaukee Police Ignored ACORN Voting Fraud Cases

by Publius

From Daniel Bice, Milwaukee Journal Sentinel:

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Milwaukee police officers sat on their hands for months last year instead of investigating possible voter fraud cases from the 2008 general election.

It’s an incredible claim, but it’s coming from a credible source:

Assistant District Attorney Bruce Landgraf, the Milwaukee County prosecutor responsible for overseeing campaign and election issues.

“Honestly, the Milwaukee Police Department largely ignored your double voter (and other) referrals received in January 2009 for the first six months of 2009,” Landgraf wrote in an e-mail to a city elections official on Jan. 26.

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J.C. Arenas

The United States of Argentina: Obama’s Pension Grab

by J.C. Arenas

Barack Obama’s money train has steamrolled uncontrollably across the country, compiling record-breaking budgets, deficits, and debt along its path. Now, the train is running out of fuel, and the nation’s retirement money may find its way on board, to keep the train on the tracks.

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Earlier this year, the U.S. Treasury and Labor Departments began a public discussion on the aim to convert 401(k) saving plans and Individual Retirement Accounts (IRAs) into annuities and other forms of guaranteed income streams. Deputy Assistant Treasury Secretary Mark Iwry stated, “the question is how to encourage it, and whether the government can and should be helpful in that regard.” The supposition that the government is looking to be helpful with this proposal should automatically cause alarm.

The rationale for what would ultimately serve as a government takeover of the nation’s private pension system is of the same mold as the position Obama and Congressional Democrats have staked throughout the debate on health-care reform; “trust us, we know better than you”. Their assertion is that a weakened economy and a volatile stock market call for them to protect you and your interests, in this case your retirement money.

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Bret Jacobson

Ergo Wars: The Empire Strikes Back

by Bret Jacobson

Some want to regulate what you eat, some want to regulate what you say, and some want to regulate how you type your TPS reports.

Those around long enough to remember the 1990’s will grumble to recall the battle over ergonomics regulations sought by Big Labor and the Occupational Health and Safety Administration. OSHA has already taken an important step in the march to regulating ergonomics by announcing its plan to require employers to keep records of ill-defined “musculo-skeletal disorders.” It announced today that the deadline for filing comments is March 30.

What’s a musculo-skeletal disorder? It isn’t defined well (and can and will include injuries not from work), so the eventual outcome is a flood of new “injuries” all kept in one big umbrella category. Remember: injuries are already recorded; now the government would have an additional statistic to urge regulatory action. Want the gist of the problem: at Maverick Strategies, we put this together:

Want to file a comment with OSHA? There’s still time (go here). But, you’d better be in the right position when typing…

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SusanAnne Hiller

US Census Form Letter Promises ‘Fair Share’ of Federal Money

by SusanAnne Hiller

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Knowing that federal and state money doesn’t come from Obama’s stash and does come from our own paychecks and our friend’s and neighbor’s paychecks, I found the 2010 US Census form letter puzzling. Yes, I know that the census is required (but not all forms are completed) and helps allocate federal funds, but this was much more in-your-face and clearly baits the reader with federal funds that they “need” as quoted:

Dear Resident:

About one week from now, you will receive a 2010 Census form in the mail. When you receive your form, please fill it out and mail it in promptly. Your response is important. Results from the 2010 Census will be used to help each community get its fair share of government funds for highways, schools, health facilities, and many other programs you and your neighbors need. Without a complete, accurate census, your community may not receive its fair share. Thank you in advance for your help.

Sincerely, Robert M. Groves
Director, U.S. Census Bureau

Go to for help completing your 2010 Census form when it arrives. [Note: this sentence is repeated in Spanish, Chinese, Vietnamese and Russian]

On the web it continues to tell about the 2010 census; this section does not appear on the actual form letter:

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