From today’s New York Times:

With midterm elections near, though, there will be talk aplenty about dealing with the companies precisely because Dodd-Frank didn’t address them. Unfortunately, if past is prologue, this talk is likely to be more political than practical.

Fannie and Freddie amplified the housing boom by buying mortgages from lenders, allowing them to originate even more loans. They grew into behemoths because they lobbied aggressively and played the Washington political game to a T. But after both companies bought boatloads of risky mortgages, they required a federal rescue.

The Treasury’s study on Fannie, Freddie and housing finance must be delivered to Congress by the end of January 2011. In a speech last week, Timothy F. Geithner, the Treasury secretary, told a New York audience that resolving the companies isn’t “rocket science.”

But attaining genuine remedies for our housing finance system could actually be harder than rocket science. That’s because it would require an honest dialogue about the role the federal government should play in housing. It also requires a candid conversation about whether promoting homeownership through tax policy and other federal efforts remains a good idea, given the economic disaster we’ve just lived through.

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From Glenn Reynolds’ latest column in today’s Washington Examiner:

Right now, people are still borrowing heavily to pay the steadily increasing tuitions levied by higher education. But that borrowing is based on the expectation that students will earn enough to pay off their loans with a portion of the extra income their educations generate. Once people doubt that, the bubble will burst.

So my advice to students faced with choosing colleges (and graduate schools, and law schools) this coming year is simple: Don’t go to colleges or schools that will require you to borrow a lot of money to attend. There’s a good chance you’ll find yourself deep in debt to no purpose. And maybe you should rethink college entirely.

Many people with college educations are already jumping the tracks to become skilled manual laborers: plumbers, electricians, and the like. And the Bureau of Labor Statistics predicts that seven of the ten fastest-growing jobs in the next decade will be based on on-the-job training rather than higher education. (And they’ll be hands-on jobs hard to outsource to foreigners). If this is right, a bursting of the bubble is growing likelier.

What about higher education folks? What should they (er, we?) do? Well, once again, what can’t go on forever, won’t.

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Last week the North Korean government (officially, the Democratic Peoples’ Republic of Korea, a misuse of the word “democratic” if ever there was one), threatened a massive nuclear strike if the United States and South Korea carried out their annual “war games” in international waters.  This set of war games is being conducted to demonstrate that both South Korea and the U.S. maintain considerable, well-coordinated military strength in the region, and that the action of North Korea, in sinking a South Korean ship, the Cheonan, was intolerable and that it would not be permitted to pass unnoticed.

This somewhat more muscular response follows another feckless resolution from the United Nations, which condemned the attack on the ship but not the attacker.  Why the fear of offending this bankrupt nation that cannot feed its own people, all of whom live in a virtual prison camp?  The answer is obvious; – it is estimated that North Korea has a nuclear arsenal of up to 10 nuclear bombs They also have a missile delivery system, and so the world must wait with bated breath to see what the stroke-ridden dictator of North Korea, Kim Jong Il, known to his people as Dear Leader, will do in response to the war games.

We bring up North Korea to emphasize the outsize influence a rogue state can have if it possesses nuclear weapon capability.  The immediate relevance relates to Iran’s nuclear program on which there appears to be a consensus that weapons grade plutonium is being developed, and that a bomb will be manufactured shortly thereafter.  Whether the world is months or years away from Iran’s demonstration of its nuclear capability, we do not know.  Recently, CIA Director, Leon E. Panetta, stated that Iran already has material for two atomic bombs.  As we know, one nuclear bomb going off could spoil your whole day.

President Obama has spent a little more than a year reaching out to the Iranian regime to no avail.  No serious negotiations commenced.  Although the Iranians deny that their nuclear program is for other than peaceful uses, it will not permit international inspectors to verify that claim.

The International Atomic Energy Agency, in a report this spring on Iran’s nuclear program, suggested that Tehran has produced 2400 kilograms of low enriched uranium, which is apparently enough to build two atomic weapons after the material is further enriched.  Iran has made clear its intention to further enrich its uranium, and, tellingly, has agreed to ship, for storage, only 1200 kilograms (or half) of its stockpile to Brazil and Turkey under the much heralded fig-leaf pact it entered into with those two nations last May.   Accordingly, the United Nations, the European Union, and the United States recently imposed further economic sanctions on Iran in hopes that this set of sanctions will convince the Iranians to abandon their nuclear efforts.  We think that is very unlikely.

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Today, in 1974, President Richard Nixon announced his resignation. It took effect the following day.

In the words of our President: “Let me be clear,” Missouri’s Prop C represents a victory for individual freedom, not “states’ rights.”

I am not sure why I have to keep repeating this, but there is NO SUCH THING AS STATES’ RIGHTS!  And people that use that term, or the term “nullification,” do not help our cause.

States have powers, and while those powers diminish in the face of the progressive-statist attack upon our Constitution, powers run contrary to individual rights.  So let me break it down:

1) Prop C places a duty on the state of Missouri to defend its citizens from the IRS enforced individual mandate.

2) Prop C denies the federal government state resources to enforce the individual mandate.

Anyone with an ounce of constitutional knowledge knows that neither of those aspects of Prop C conflict directly with the Supremacy Clause. (more…)

From the Associated Press:

Ah, the cruelty. Veteran lawmakers who toiled for years in Congress waiting for a chance at political promotion have discovered an inconvenient truth: This election year, Washington experience is a career-ender.

Four House members who abandoned their seats to run for governor have failed to survive their party primaries, and the list could grow in the coming weeks. Tennessee Rep. Zach Wamp was the latest to stumble in Thursday’s Republican primary.

Add these losses to the six incumbents who have been defeated in their re-election bids and it signals an electorate sour on Washington.

“People hate Congress,” said nine-term Rep. Pete Hoekstra of Michigan, who was pounded by rivals’ ads about Wall Street bailouts, money for district projects and rising debt in his losing bid for the GOP gubernatorial nomination. “It was a hurdle that had to be overcome, or it was some baggage that you had to carry.”

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Earlier this season, Team Obama launched a PR offensive designed to convince Americans that a real economic recovery was underway. They called it ”Recovery Summer!” Note the exclamation point. They wanted you to really, really get that they believed we were in “recovery.” It wasn’t just a ”recovery.” It was “Recovery Summer!”

We should have known it was all illusory quackery when they wheeled out Joe Biden to talk it up.

Today we learn that the “recovering” economy shed 131,000 jobs last month, the second straight month of falling employment. More and more temporary census jobs ended, and the private sector added a paltry 71,000 jobs, far fewer than most expected. In more bad news, the government revised payrolls for May and June to show 97,000 FEWER jobs than originally reported.

All of the arrows are down.

For the $1 trillion-plus that the Democrats have spent trying to “create jobs” and “stimulate the economy,” this is where we are: job losses, not job creation; a formal 9.5% unemployment rate with the real unemployment rate at 18%; stagnant growth; and an exploding deficit and national debt.

Heckuva job, Obama, Pelosi, and Reid.

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With the disappointingly soft jobs report for July, and a faltering recovery overall, is Team Obama getting ready for some sort of new, liberal-left, Keynesian, big-bang stimulus package? Will they be desperate to “do something”?

Already there are rumors of an August surprise (to use the phrase of business columnist Jimmy Pethokoukis) where Fannie Mae and Freddie Mac forgive underwater mortgages held by millions of Americans. And with state and local government jobs having fallen 169,000 year-to-date, perhaps the Democratic Congress and the White House will seek an even bigger spending plan for teachers and Medicaid workers — on top of the $26 billion plan that just passed the Senate.

Or maybe the Democrats will come up with a new infrastructure-spending bill, perhaps for green technologies and whatnot. Or maybe they’ll extend unemployment benefits even more. My liberal friend Robert Reich is even talking up the New Deal’s Works Progress Administration (WPA), where the government employed millions during the 1930s.

With the announcement this week that Council of Economic Advisers chair Christy Romer will leave the White House to go back to teach at Berkeley, it looks like the center of economic gravity will shift leftward inside the West Wing.

Meanwhile, over at the Fed, it seems ever more likely that the FOMC meeting next week will produce a much more dovish policy statement, one that will lengthen the “extended period” near-zero-interest-rate language and hint at new cash purchases of Treasury and mortgage bonds to increase the central bank’s balance sheet and expand the basic money supply. Already, in recent weeks, the dollar has been plunging.

Of course, Republicans will push harder to keep the Bush tax cuts for the wealthy — as they should. But Democrats are now trapped by Treasury man Tim Geithner’s statements that extending low tax rates for successful earners, investors, and small businesses would actually imperil economic recovery. This is his war against investment and capital formation.

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Today, in 1742, Revolutionary War hero Nathanael Greene was born. At the beginning of the war he was a militia private but rose to be both a Major-General and one of Washington’s most dependable officers. Happy Birthday!

Representative Michael Capuano (D-MA) has succeeded in ushering his Shareholder Protection Act of 2010 through the House Financial Services Committee.  In reality the bill does little to protect shareholders, but does protect Washington lobbyists.

The legislation is a response to the Supreme Court decision in Citizens United v. FEC.  Citizens United restored the First Amendment protection of political speech for speakers of all kinds, including small businesses, corporations, labor unions, and non-profit organizations.  Many self-interested legislators fear what the citizens may say now that their voice has been restored.  As a result we’ve seen efforts to chill political speech advanced in Congress.

First came the Democracy is Strengthened by Casting Light on Spending in Elections Act (“DISCLOSE Act”).  The DISCLOSE Act would have imposed onerous disclosure and disclaimer provisions on speakers that choose to exercise their First Amendment rights.  The bill passed the House of Representatives but has not been passed by the Senate.

The embattled legislators have now turned to another piece of legislation designed to curb political speech – the Shareholder Protection Act of 2010.

Rather than protect shareholders, the legislation strips them of their ability to effectively speak.  Mr. Capuano’s bill will require that corporations set a political agenda at the beginning of the fiscal year laying out their proposed expenditures.  This must be approved by the shareholders.

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As a movement conservative, constitutionalist, and believer in the First Amendment, I do believe that Tara Ross and others are entitled to opinions related to the current effort surrounding the National Popular Vote, a state-based plan to reform the Electoral College. They are not, however, entitled to their own set of the facts. I’d like to set the record straight.

First the idea that National Popular Vote “abolishes”, “attacks”, “neuters” or “subverts” the Electoral College, the Constitution or “intent of the founders,” is simply not true.

National Popular Vote preserves the Electoral College and the intent of the Constitution, that is to say, that the states continue to have the right to determine how they award their electoral votes.  This effort is an appropriate approach to reforming the way we elect our President under Article II of the Constitution.

It allows states to replace current winner-take-all rules, the current method of awarding all Electors to the candidate who wins the most popular votes in a given state. Forty-eight states currently use winner-take-all rules, relegating two-thirds of Americans irrelevant when electing their president because they live in a “fly-over” state where the Republican or Democrat candidate for President is comfortably ahead or hopelessly behind.

Our Founding Fathers did not oppose or support a national popular vote or any other method of electing our president, instead leaving it to the states to award electors in a manner that is in the best interest of the people that they serve.  They certainly did not favor the current state-by-state, winner-take-all system we currently use to elect the President, nor would they bless a system that relegated 11 of the 13 original states to “fly-over” status during the 2008 Presidential campaign.

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A federal judge conspired with the Bush Department of Justice to plan the largest immigration raid ever in the United States, and then presided over the trial of the plant’s manager, eventually sentencing him beyond even prosecutors’ recommendation.

New documents show Linda Reade, the chief judge of the U.S. District Court for the Northern District of Iowa, was involved in the planning of the Immigrations and Customs Enforcement raid on the Agriprocessors kosher meatpacking plant at least six months before it occurred in May 2008. She asked for briefings from law enforcement and went as far as to ensure the raid was conducted around her vacation schedule.

But the judge never said a word of this to the defense lawyers for Sholom Rubashkin, the Agriprocessors manager, when she presided over his trial on bank fraud. She didn’t recuse herself from the case, either.

Rubashkin was convicted of causing $20 million in loses to a bank because he overstated Agriprocessors’ assets to get a larger loan. The raid destroyed Agriprocessors and the bank then called the loan. Reade sentenced Rubashkin in June to 27 years in prison. That’s more than Jeffrey Skilling, convicted of causing $80 million in losses from Enron, who got 24 years. And Dennis Kozlowski, the former CEO of Tyco, got 8 ½ to 25 years in prison for a $150 million fraud.

Rubashkin’s sentence is extreme, especially for a first-time, non-violent offender. After all, six former U.S. attorneys general sent Judge Reade a letter arguing against a multi-decade sentence for Rubashkin before she announced her decision. And prosecutors asked for 25 years.

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From CNSNews “It is called the Golden Rule,” said Graham. “‘Do unto others as you would have them do unto you.’ That is probably one of the most powerful statements ever made. It is divine in its orientation, and it is probably something that would serve us all well if we thought about it at moments such as this.”

Graham also said Kagan “meets the test” the Framers envisioned for a Supreme Court Justice.

“I am going to vote for Elena Kagan because I believe constitutionally she meets the test the Framers envisioned for someone to serve on the Court,” said Graham. “I don’t think the Framers ever envisioned Lindsey Graham from South Carolina voting no because President Obama picked someone who is clearly different than I would have chosen.” (more…)

With the overturning of Prop 8 in California, we thought it would be appropriate to share this clip of a discussion we had last weekend with a couple of gay conservatives who were in attendance at the Uni-Tea Party in Philadelphia.

Note their constitution-centric take on marriage (gay or otherwise) as well as their experiences facing hateful bigotry from their peers on the ever Progressive Left.

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Well, folks, this is bound to happen more and more as time rolls onward in this New Media world of ours. A blogger is in trouble with local Ohio officials who are trying to Shut him down using a badly applied campaign finance law all because he has been critical of county officials on his blog. That’s right, a county board is trying to silence the free political speech of a local Ohio blogger because he is critical of them.

The Geauga County Board of Elections has filed charges against the owner of the Geauga Constitutional Council blog, independent blogger Ed Corsi. The Board claims that Corsi’s pseudonymously published blog violates O.R.C. 3517.20(A)(2), a code meant to assure that political campaign publications, signs, and handouts have their source transparently identified.

The reason the Board is going after Corsi is because he publishes on his blog critical assessments and lists of local officials that he calls “R.I.N.O.S.” Board officials feel that because he does not affix his name to his blog posts he is violating the transparency rules.

However, Corsi is just an independent blogger and is not a paid operative of any party or campaign and all his blogging expenses are paid for with his own funds. The 1851 Center for Constitutional Law and the Rutherford Institute, non-profit legal advocacy firms, filed arguments with the OEC on behalf of Corsi saying that the Board of Elections overreached the application of the law in this case.

“This case has the potential to severally limit free speech in Ohio,” said 1851 Center Executive Director Maurice Thompson. “Should independent bloggers in Ohio be subject to registration, political disclosure laws, and fines simply because they discuss Ohio politics, and are critical of certain politicians? The Constitution says otherwise.”

“When applied to Corsi’s activities, the law violates the First Amendment right to anonymous political speech,” said Thompson. “It places an impermissible prior restraint on core political speech. And, it applies an overbroad regulation and/or prohibition on political speech that is not express advocacy.”

Clearly the Board is reaching in this case. This code is meant to make sure that politicians don’t get the unrevealed assistance of secret financial backers in elections and is not meant to quash the free speech of lone citizens like Corsi that have a blog and want to spout off about local politics.

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They’ve targeted bottled water and the selling of all kinds of pets, er, “animal companions.” And now, with the soda scold who’s yanking sugary beverages from vending machines, the City by the Bay pulls off the first-ever Nanny of the Month trifecta!

Presenting Reason.tv’s Nanny of the Month for July 2010: San Francisco Mayor Gavin Newsom!

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As the Central Illinois 9/12 Project has briefly written about in the past, one form of banking in which Shorebank is engaged is microfinance, especially in foreign countries. As this is not a type of finance that is well known to the general public, we will discuss briefly what microfinancing is, how it is used in conjunction with green initiatives and Sharia law, and how Shorebank is using this type of financing in their banking processes.

The Consultive Group to Assist the Poor (CGAP) defines microfinance as simply “the  supply of loans, savings, and other basic financial services to the poor.”  These loans are generally relatively small, but carry with them a high interest rate due to costs incurred by defaulting on loans and the transaction costs that are disproportionate to the size of the loan.  (The cost of manpower and other factors needed to make the loan are the same regardless of the size of the loan – thus for smaller loans, the  percentage of these costs in relation to the amount of the loan is greater.)  Specifically, the microfinancing industry enables people to receive loans when they would not otherwise be able to do so, whether due to poverty, lack of a bank account, inability to provide collateral, and/or inability to prove employment. In 2007, there were 873 microfinance institutions worldwide serving more than 133 million loan recipients.

Microfinance was initially, and oftentimes still is, aimed at providing loans and opportunities to those who otherwise may not have the funds to get a business off of the ground, but microfinance is sometimes tied into other things such as green initiatives. Shorebank, a community development bank whose practices the Central Illinois 912 Project has highlighted before, is a partner in an eco entrepreneurship through a project called “Yurtcozy.” This initiative allows individuals to “offset their carbon footprint” by buying carbon credits which enable a microfinance loan recipient to receive funding  for things such as energy efficient appliances and solar lighting. It may also finance education on clean energy for microfianance recipients and partnerships in green initiatives. Yurtcozy asserts that if the carbon credit purchases were made for all microfinance loan recipients worldwide, then loan recipients could decrease their carbon emissions by 260 million tons, and thirty percent of their income would be unlocked.

One of Shorebank’s first forays into microfinance was through the establishment of Grameen Bank in Bangladesh in 1983. Grameen Bank was founded by Mohammed Yumus, a Noble Peace Prize Recipient in 2006 and 2009 recipient of the Congressional Medal of Freedom from President Obama. Yumus’ description of the features of Grameencredit includes stating that “credit is a right,” and it’s built on “trust” (i.e., social justice in banking.)

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