What to do U.S. House members Dan Burton, Allen West, Lynn Jenkins, Trent Franks, Tim Huelskamp, Mike Pompeo, Duncan Hunter, Devin Nunes, Dennis Ross, Vicky Hartzler, Raul Labrador, Quico Canseco, Blake Farenthold, Paul Gosar, Joe Walsh, Gus Bilirakis and John Mica, have in common? All 17 of them have called for Attorney General Eric Holder to turn in his letter of resignation over Fast and Furious and his seeming inability to tell the truth.

Representative Burton (R-IN), in particular, is tired of Holder’s lies, and he was tired of them before Fast and Furious was even a reality. In fact, Burton never thought Holder should have been confirmed as Attorney General to begin with.

Said Burton:

When I was chairman of government reform and oversight during the Clinton administration, we had Holder before my committee a number of times and he misled the committee. In fact, he lied. During his confirmation in the Senate, I sent a letter to the chairman of the Judiciary Committee, [Sen. Patrick] Leahy, and I sent it to the other members of the committee as well, and I cited specific cases where Holder had not been straight with the committee and I said he should not be confirmed.

And now that Fast and Furious is the topic Holder’s lying about, Burton adds: “I don’t think he’s a trustworthy Attorney General. He’s a political animal. He’s more concerned about politics than he is about what’s right for the country.”

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Now we’re begging: Will someone PLEASE bring back Glass-Steagall? The Glass-Steagall Act was, of course, the legislation passed in the early 1930s in response to a certain banking crisis that led to a particular Great Depression. Among other things, the Act erected a “Chinese wall” between a financial institution’s investment banking and merchant banking functions. In less complicated terms, the law forced banks to separate any business it was transacting on behalf of clients from the speculative moves it made with its own money. For the layman: banks can’t make dumb bets with clients’ money.

Sort of makes sense, doesn’t it?

Well apparently it seemed a bit stingy for President Clinton and the Republicans in Congress in 1999. We have Senator Phil Gramm and Representative Jim Leach to thank for that one. Here’s the problem: The heads of big banks have this terrible habit of thinking that they’re the smartest guys in the room. Anyone who doesn’t believe that need only watch Ben Bernanke talk for more than 30 seconds. Actually, let’s refine that a bit. The problem isn’t that banking executives think they’re savants, the real problem is that they aren’t.

In the modern financial age, a lot of very highly paid guys with impressive titles who look at way too many numbers and think they make sense have concocted some very complex “hedging” strategies for “managing risk.” They think they understand the crafty derivatives they’ve invented – which are completely unregulated and totally opaque – and all the counterparty risk involved. They don’t, and therein lies the rub.

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The bankruptcy of MF Global demonstrates that the 1% of crony capitalists in America are now subject to the same risks of economic losses as the other 99% of us. Led by former Goldman Sachs Chairman Jon Corzine, MF Global engaged in speculating on the bonds of Portugal, Italy, Greece, and Spain (PIGS) with shareholder money; they then tried to hedge their bets with derivatives called Credit Default Swaps (CDS). The firm relied on Corzine’s inside expectation that crony politicians in Germany and France would stick taxpayers with the cost of bailing-out bondholders, like MF Global. The bet buckled when voters rebelled and demanded bondholders suffer losses. Once subject to capitalist risks, MF Global collapsed.

Jon Corzine made most of his fortune from developing intimate relationships with politicians and government officials. As Chairman of Goldman Sachs, in 1999 he led the effort to convince the Clinton Administration and Congress to repeal the Glass-Steagall Act of 1933. The Act banned commercial banks that receive insurance from the Federal Deposit Insurance Corporation (FDIC) from engaging in speculation and trading in securities. Historians have blamed the start of the Great Depression on massive leveraged speculation by banks in the stock and bond bubbles of the “Roaring Twenties.” Many of the victims of the 1929 crash turned out to be the proverbial “widows and orphans” whose small deposits were wiped-out when trading losses forced their savings institution into bankruptcy.

Goldman Sachs had been a private-partnership for over 100 years when Corzine joined the firm as a bond trader in 1975. Consequently, the capital of partners in Goldman Sachs and the other investment banking firms were at 100% risk for trading losses by their firms. When Jon Corzine became Chairman and CEO of Goldman in 1994, he understood that stocks were legal to leverage by 100%, but U.S. government bonds could be leveraged by 5,000%. Corzine knew his older partners would never be willing to risk their own capital at very high leverage. Corzine set his sights on repeal of Glass-Steagall Act so his partners could get their money out through a public offering and the firm could take advantage of the leverage risk trading on shareholders’ money. (more…)

GOP candidate Herman Cain is facing a full media assault. If he survives this, he may very likely be President.

From the Oakland Police Officers Association:

We represent the 645 police officers who work hard every day to protect the citizens of Oakland. We, too, are the 99% fighting for better working conditions, fair treatment and the ability to provide a living for our children and families. We are severely understaffed with many City beats remaining unprotected by police during the day and evening hours.

As your police officers, we are confused.

On Tuesday, October 25th, we were ordered by Mayor Quan to clear out the encampments at Frank Ogawa Plaza and to keep protesters out of the Plaza. We performed the job that the Mayor’s Administration asked us to do, being fully aware that past protests in Oakland have resulted in rioting, violence and destruction of property.

Then, on Wednesday, October 26th, the Mayor allowed protesters back in – to camp out at the very place they were evacuated from the day before.

To add to the confusion, the Administration issued a memo on Friday, October 28th to all City workers in support of the “Stop Work” strike scheduled for Wednesday, giving all employees, except for police officers, permission to take the day off.

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To kill government union reform in Ohio, Ohio’s NEA affiliate charged every member an extra $54 this year. The Ohio Education Association (OEA) has contributed $5.8 million to a $30.5 million campaign whose message is equal parts simple and dishonest:

Vote NO on Issue 2 on November 8th to help repeal Senate Bill 5, the unfair attack on employee rights and worker safety in Ohio.

How do we know passing Issue 2 will hurt public employees? Because union bosses who, coincidentally, are wealthy because of Ohio’s broken status quo, say so. In addition to being “We Are Ohio’s”  biggest donor, OEA is the state’s largest public union. Let’s investigate whether OEA bosses are as trustworthy as they claim! Last summer, more than 100 OEA staff went on strike against the union. Ask OEA’s own workforce whether taxpayers should buy the union’s rhetoric.

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In late April 1970, the Vietnam War was raging, the draft for that war was still extant, and President Richard Nixon was describing our invasion into Cambodia as means of gaining the upper hand on the Viet Cong. The counter culture, which had already erupted violently at various times in the previous months and years, began to show signs of erupting once more. On and around the campus of Kent State in Ohio, the possibility for trouble was especially keen: protestors marched, fights broke out (both on campus and off), and police and National Guardsmen (who had been called in to keep the peace) were pelted with rocks. On the campus, the ROTC building was set on fire as “war protestors” unleashed their venom on what was the most recognizable symbol of our military they could find (apart from the National Guardsmen whom they were pelting with rocks, that is). Those first four days of May 1970 were crazy.

A month ago, Wall Street protesters revived the kind of protests we witnessed in the late 60s and early 70s. These soon became occupations (Occupy Wall Street) and, like those at Kent State so many decades ago, proved to be but a small part of a larger counter culture movement around the country. Sadly, the protests occupations also proved disrespectful, and frequently downright dangerous, to police officers, as those at Kent State proved to be during those first four days of May. From defecation on police cars, to graffiti on the same, to throwing objects at policemen, occupiers in cities around the country have literally gone after the police with an abandon that begs for relation yet criticizes any. Through it all, the police have somehow restrained themselves.

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The collapse of MF Global, the brokerage dealer headed by former New Jersey Governor and Goldman exec Jon Corzine, may seem like just another case of Wall Street fat cats paying the price for their speculation (actually, though Corzine may have run the firm into the ground, he’s reportedly going to receive a $12 million golden parachute).  The MF Global affair, however, signifies something even deeper:  how crony capitalists like Jon Corzine have used state pension funds for their political and financial benefit.

MF Global has declared Chapter 11 bankruptcy after Corzine led the firm to buy big holdings of debt from Spain, Italy, Portugal, Belgium, and Ireland at a discount.  Now federal regulators are investigating how hundreds of millions in customer money has gone missing.  But these were not simply financiers.  Some of Corzine’s biggest clients were pension funds for teachers, public employees, and others.   The fifth largest shareholder was TIAA-CREF, which owned 6% of the stock (MF Global’s Bankruptcy Petition is here).  In 2008,  before Corzine arrived, MF Global was sued by numerous pension funds over losses they had sustained because of MF Global trades, including the Iowa Public Employees’ Retirement System, Policemen’s Annuity Benefit Fund of Chicago, Southeast and Southwest Areas Pension Fund, and the State-Boston Retirement System.  MF Global settled the suit for $90 million.

The MF Global bankruptcy will cost pension funds a lot.  Pension funds around the country will likely take severe hits as their shares in the firm, bonds, or other holdings suffer huge losses.  The Oregon pension fund had a heavy stake MF Global.  Others are likely to follow. (more…)

I have sometimes wondered whether it is accurate to say that Republicans are the “Stupid Party.” We’ll soon know the answer to that question. As part of the debt limit agreement, the politicians agreed to set up a “Super Committee” comprised of six Republicans and six Democrats that are responsible for producing at least $1.2 trillion of supposed deficit reduction. But the Democrats appointed a group of hardcore leftists to the super committee, which means that it is virtually impossible to get the necessary seven votes for a good agreement. Indeed, the more relevant question is whether one or more of the Republicans surrenders to a big tax hike.

Fortunately, there is an alternative. The law says that there will be automatic spending reductions if the super committee does not reach an agreement. The political establishment in Washington thinks that this outcome – known as sequestration – would be horrible. They say that a sequester would mean “savage” and “draconian” budget cuts. The only “responsible” approach, we are told, is to go along with a tax increase. This is hogwash. The automatic spending cuts are only “cuts” using Washington’s dishonest budget math. Here’s a chart (click to enlarge) showing how much spending will grow over the next 10 years, and the relatively tiny reduction in budgetary expansion that will be caused if there is a sequester.

We’ve actually been down this path before. There was a small sequester back in the mid-1980s, shortly after the Gramm-Rudman-Hollings law was enacted. There was much wailing and gnashing of teeth, but the sequestration helped restrain the growth of spending and helped bring about a record amount of deficit reduction in 1987.

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Many professional political observers have puzzled over the rise of Republican presidential candidate Herman Cain. Here he is—a non-politician, successful businessman running a non-traditional insurgent campaign on a shoestring. And here he is—ahead of the pack in many polls or running even with the traditional political choice, Mitt Romney. Many of these professional political analysts are scratching their heads, wondering why GOP primary voters seem inclined to the unconventional candidate who sings gospel, admits he doesn’t know things when he doesn’t know them and otherwise tells it like it is.

Let me explain the rise of Herman Cain in two words: Kim Kardashian.

Kim and the entire Kardashian clan have built quite the empire for themselves. Launching from Kim’s sex tape, the family has major reality shows on E!, clothing boutiques, a clothing line and a brand that rakes in millions of dollars a year in personal appearances and other events.

Kim took her reality superstardom to new levels this summer when she announced her engagement to NBA forward Kris Humphries. Much hoopla surrounded the impending nuptials, including, of course, a major run-up to the wedding on their various reality shows. They didn’t have to pay for a thing in the $10 million affair; designers and vendors happily gave away their services for a chance to have their stuff promoted by Kim and the gang on the show. KK and KH sold their “exclusive” wedding pictures to People magazine for $2 million. Speculation is that the total amount of money they raked in over the wedding period was a stunning $17 million.

So are they dummies? No way. They are very, very shrewd businesspeople. Fine capitalists. In fact, I’m surprised Occupy Wall Street hasn’t discovered them yet and set out to Occupy Team Kardashian. Spread the wealth, KK! (more…)

It turns out minding other people’s business is a worldwide affliction. In this very special edition of Nanny of the Month, we explore nannyism across the pond. Fat taxes are all the rage in Europe. After the skinny Danes slapped a tax on foods high in saturated fats, other European pols—including British Prime Minister David Cameron—have considered following suit. In Australia’s Northern Territory, they’re bringing alcohol prohibition back—incrementally, that is—by barring problem drinkers from buying grog. What could possibly go wrong?

But in the first-ever Nanny of the Month Global Edition, top dishonors go to the European Union’s control freaks who have cracked down on free-range kids, slapping regulations on everything from baby rattlers (which have brand-new noise restrictions) to blowing up balloons (not to be done by tots under age eight!). (more…)

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Ryan Ellis to discuss Herman Cain’s 9-9-9 Plan and Rick Perry’s Cut, Balance and Grow proposal. We’ll talk about which one of these has a better chance of making it through Congress, the impact they’ll have on your bottom line, and whether they will be able to restart America’s failing economy.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

9-9-9: A Discussion with Herman Cain
Governor Rick Perry’s Tax Reform Plan
ATR Summary of Perry Tax Plan
Cain’s Responses on 9-9-9 Answered
Herman Cain Was Against a VAT Before He Was For It
Perry tax plan would raise either $4.7 trillion or $1.7 trillion less than CBO baseline through 2020
On second glance, Perry flat tax scores better on revenue and growth
A Slow-Growth America Can’t Lead the World
Herman Cain’s 9-9-9 Plan
Rick Perry’s Cut, Balance and Grow

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Opponents of the reforms in Ohio Issue 2 blame busted local budgets on the way Governor Kasich handled the $8 billion deficit Ted Strickland left behind. In effect, government union bosses who thrive on a broken status quo insist the problem is too little spending. Like all leftists who decry spending cuts, union bosses want to raise Ohioans’ taxes.

For proof, consider Ohio school districts’ five-year forecasts from October 2010. Based on papered-over Strickland state figures – before Governor Kasich was even elected – districts projected major shortfalls by 2015. If Ohio votes down Issue 2, how will local leaders cover these deficits? Layoffs, higher taxes, program cuts? Choose any combination of the three.

Without Senate Bill 5, every resident of these Ohio school districts would have to pay between $1200 and $1500 in 2015 to cover the deficits forecast last fall. Check below the fold to see a chart of the tax burden for residents in several districts:

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From CBC News:

Workers at a Wal-Mart in Gatineau, Que., are officially decertified from their union after just more than a year with their first collective agreement.

Quebec’s Labour Relations Commission removed the more than 150 workers, who are employed at a store on du Plateau Boulevard in the city’s Hull sector, from their union.

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From Investor’s Business Daily:

President Obama says the Occupy Wall Street protests show a “broad-based frustration” among Americans with the financial sector, which continues to kick against regulatory reforms three years after the financial crisis.

“You’re seeing some of the same folks who acted irresponsibly trying to fight efforts to crack down on the abusive practices that got us into this in the first place,” he complained earlier this month.

But what if government encouraged, even invented, those “abusive practices”?

Rewind to 1994. That year, the federal government declared war on an enemy — the racist lender — who officials claimed was to blame for differences in homeownership rate, and launched what would prove the costliest social crusade in U.S. history. (more…)

It is not necessarily true that as goes the Euro, so goes the Dollar, but as goes the EU, so goes the US is as certain as the rising (or setting) sun. At least, if American fiscal policy continues to emulate that of the European spendthrifts.  The EU heads of state had marathon, round-the-clock meetings in Brussels last week, and inked a plan to finesse a Greek default (which is an eventual certainty) in a way that doesn’t immediately plunge the rest of Europe into a financial hell, and quite possibly drag America along with it.  Under the best of circumstances, the picture remains bleak.  Market analysts who focus on short-term stock market movements responded with sighs of relief.

The Germans, understandably, wanted those who have loaned Greece money (primarily, the European banks) to take a loss of about half of the value of their loans in order to ease the extremis in which Greece finds herself.  France, whose banks are holding a lot of Greece’s debt, preferred to rely more heavily on a pumped up bailout fund to ease the burden on Athens.  Given that the German taxpayer is certain to be the biggest funder of the proposed additional bailout, it is not hard to understand the rising tensions on the continent.

One can’t blame the banks for their reluctance to dance at this party.  Based on commitments the EU countries made, to keep their debt to no more than 60% of GDP and their deficits to no more than 3% over the prior year, Europe’s banks became major financiers of the new Euro countries.  But many of the European countries that were financially irresponsible prior to the advent of the Euro had no intention of changing their ways subsequent to exchanging their old currencies for the new Euro.  Greece flat out misrepresented its financial condition when it applied to become a member of the Euro Zone.

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Q: You said a deaf guy was raped?

A: Yeah…

Q: Did the guy, I mean, do these, did that get reported to the police, or did that stay inside the camp?

A: Well, OK, I’m not sure for that particular incident. Yeah, no I–that might have stayed inside the camp.

It’s time for New York Mayor Michael Bloomberg to pull the plug on the dangerous circus in crime zone Zuccotti Park.

People have the right to protest, to assemble peaceably, to raise their voices and petition their government. They do not have the right to break the law. And Mayor Bloomberg has the duty to uphold the law.

Today, Big Government is releasing the first of several videos filmed yesterday in Zuccotti Park, featuring an activist who has been at the Occupy Wall Street protest since it began.

The young woman, whom we believe to be an activist named Channing Kehoe, refers to part of Zuccotti Park as a “ghetto,” and discusses the prevalence of drug abuse, sexual assault, rape, and other violent crimes among the demonstrators:

We’re trying to figure out what to do about [the drugs]…It’s putting all these people in danger–that, there’s sexual assault going on, we’re trying to deal with that…mostly drunk guys, going, groping girls, there was a guy that got raped, too, here–a deaf younger man…

She estimates there have been “at least ten” incidents of sexual assault and affirms that Occupy Wall Street has been “unsafe for women” for the past three to four weeks. (more…)

From Fox 25 KOKH:

Police say a man has been found dead inside his tent at a protest at a park in downtown Oklahoma City. Fellow protest participant Mark Faulk says the man was in his early 30s and was homeless. Faulk says the man had delivered a passionate speech Sunday night about the problems of homelessness and drug abuse.

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Today, in 1993, the Maastricht Treaty took effect, formally establishing the European Union. It hasn’t quite worked out the way they hoped.