Combs Spouts Off

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Archive for September 30th, 2008

House can’t handle flood of emails

Posted by Richard on September 30, 2008

According to The Hill:

The House is limiting e-mails from the public to prevent its websites from crashing due to the enormous amount of mail being submitted on the financial bailout bill. 

As a result, some constituents may get a 'try back at a later time' response if they use the House website to e-mail their lawmakers about the bill defeated in the House on Monday in a 205-228 vote.

… 

The CAO issued a “Dear Colleague” letter Tuesday morning informing offices that it had placed a limit on the number of e-mails sent via the “Write Your Representative” function of the House website. It said the limit would be imposed during peak e-mail traffic hours.

“This measure has become temporarily necessary to ensure that Congressional websites are not completely disabled by the millions of e-mails flowing into the system,” the letter reads.

A flood of millions of emails, almost all against the Paulson bailout plan, goes a long way toward explaining why the Democrats played to lose yesterday's bailout plan vote:

"Clyburn was not whipping the votes you would have expected him to, in part because he was uncomfortable doing it, in part because we didn't want the push for votes to be successful," says one leadership aide. "All we needed was enough to potentially get us over the finish line, but we wanted the Republicans to be the ones to do it. This was not going to be a Democrat-passed bill if the Speaker had anything to say about it."

During the floor vote, House Majority Leader Steny Hoyer and House Democrat Conference chair Rahm Emanuel could be seen monitoring the vote on the floor, and gauging whether or not more Democrat votes were needed. Clyburn had expressed concerns, says the leadership aide, of being asked to press members of the Black and Hispanic caucuses on a bill he was certain those constituencies would not want passed.

"It worked out, because we didn't have a dog in this fight. We negotiated. We gave the White House a bill. It was up to the Republicans to get the 100 plus votes they needed and they couldn't do it," said another Democrat leadership aide.

Emanuel, who served as a board member for Freddie Mac, one of the agencies that precipitated the economic crisis the nation now finds itself in, had no misgivings about taking a leadership role in tanking the bill. "He was cheerleading us along, mothering the votes," says the aide. "We wanted enough to put the pressure on the Republicans and Congressman Emanuel was charged with making it close enough. He did a great job."

The Democrats weren't about to take the lead in passing this hugely unpopular bill. They knew they could count on their allies in the media to make the Republicans look bad no matter what happened, as long as the vote was close. So they did their best to assume the role of disinterested bystanders. And judging by today's news coverage, they're mostly getting away with it.

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Caldara characterizes the candidates

Posted by Richard on September 30, 2008

In his weekly email newsletter, Independence Institute President John Caldara observed that each of the two major-party presidential candidates is the most liberal senator in his party. "So really we have a Marxist running against a Democrat, but at least the Democrat's running mate is a Republican."

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Caldara also pointed out that The Denver Post and Rocky Mountain News have both endorsed the Institute-backed Amendment 49, Ethical Standards. You can find a brief description of that and the other 17 measures on the Colorado ballot at the Institute's Issues '08 page, as well as at the Ballotpedia Colorado page

And check out Caldara's blog, The Cauldron, from time to time. 

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It’s income redistribution

Posted by Richard on September 30, 2008

Barack Obama has promised to give the "middle class" a tax cut in the form of a $1,000 check. And he's redefined "middle class" to mean 95% of Americans. Ken Blackwell dissected Obama's "tax cut" and explained what he's really promising:

The statistics speak for themselves. Only 62 percent of Americans pay federal income tax, meaning that 38 percent get a 100 percent refund of any taxes withheld. So Mr. Obama's 95 percent that will receive money from the government includes roughly 33 percent of Americans who pay no income tax. One-third of Americans pay no income taxes yet would receive a government check of perhaps $1,000 or more.

That is pure income redistribution. Some pundits argue that this is Keynesian demand-side economics. It is not. Having the government take money from business entities or affluent individuals and giving it to those who pay no federal income taxes is not Keynesian. It's Marxist.

Businesses and corporations do not pay taxes; we do. Businesses don't have huge piles of money sitting in the closet that they simply turn over to government when taxes increase. For every dollar that you increase taxes on a business, they simply increase their prices by a dollar. Who then pays the tax? We do. We do, when the product that we bought last week for $20 suddenly costs $21.

Mr. Obama's plan for universal health care and increased spending on just about everything costs hundreds of billions of dollars. To keep his promises to provide those things while eliminating the deficit and giving checks to lower-income families, he will have to raise taxes by hundreds of billions of dollars. But if lower-income Americans receive a check for $1,000 under the Obama plan yet have to pay $2,000 more when buying food and clothes, they are worse off.

RTWT.

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Roots of mortgage crisis

Posted by Richard on September 30, 2008

Ralph Reiland wrote a nice, succinct history of how we got into the current mess. The roots of the current crisis go back to Jimmy Carter's 1977 Community Reinvestment Act, which gave poor people and minorities greater access to mortgage credit by punishing lending institutions that didn't meet "equal credit" guidelines.

In 1995, the Clinton administration greatly accelerated the flood of easy home loans by expanding both the carrots and the sticks.

One of the biggest sticks in the 1995 Treasury regulations involved letting left-wing advocacy groups essentially extort large pools of mortgage money from banks (along with hefty fees for the advocacy groups) in exchange for a satisfactory CRA rating.

The most successful of these radical left-wing groups was ACORN, today better known for its widespread voter registration frauds that have led to indictments in more than a dozen states. In the 90s, ACORN made a vast fortune extorting mountains of mortgage money from banks and parceling it out in the poor and minority communities over which it exercised influence (emphasis added): 

In addition to setting the stage for giving money for mortgage payouts to ACORN and other lending amateurs, CRA authorized those organizations to collect fees from the banks for their "marketing" of loans.

"The Senate Banking Committee has estimated that, as a result of CRA, $9.5 billion so far has gone to pay for services and salaries of the nonprofit groups involved," reported Husock.

There's big money, in short, in "nonprofit" activism — and upward mobility. A guy carries a sign advocating "Change" in front of a bank and the government turns him into a salaried protester, credit analyst and dispenser of mortgage money.

"The changes came as radical 'housing rights' groups led by ACORN lobbied for such loans," reports Investor's Business Daily, regarding the Clinton era. "ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama."

Change you can bank on.

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Bipartisan opposition killed bailout bill

Posted by Richard on September 30, 2008

The Paulson power grab, a.k.a. the $700 billion bailout bill, was defeated in the House today, 205-228. Both sides are blaming partisanship and pointing fingers. But when I look at the voting breakdown — 95 Democrats and 133 Republicans voted Nay — I see a pretty bipartisan rejection of this ugly monstrosity.

As for the man behind the massive bailout, Hank Paulson, he's nominally a Republican, but his plan appeals to Eastern country-club Republicans and establishment liberal Democrats — the big-government types who have cozy symbiotic relationships with the big-finance types on Wall Street.

In fact, Paulson has been more in tune with liberal Democrats than Republicans, and that's not a new development. About a year ago, Bob Novak pointed out that Paulson had put two strong Democrats — former associates from Goldman Sachs — into important positions at Treasury. Novak also noted that Paulson himself, although a big Bush fundraiser in 2004, had also contributed to Clinton, Schumer, Bill Bradley's presidential campaign, and the very liberal Emily's List. 

Michelle Malkin collected some statements from Paulson over the last 18 months regarding the subprime mortgage mess. They don't reflect well on his financial acumen and judgment.

Paulson isn't the only person who's been denying that there was any problem with subprime mortgages. Democrats have successfully fought off repeated efforts to reform and regulate Fannie Mae and Freddie Mac since 2001. Here's a 3½-minute special report from Fox News summarizing the 8-year history of ignored warnings and failed efforts to stop the impending crisis. 

 

Here's an 8½-minute compilation of C-SPAN clips from a 2004 hearing into Fanny and Freddie. The regulator warns of the inevitable collapse, while Democrats denounce the critics, defend the agencies, and insist there's nothing wrong. Near the end, Franklin Raynes himself insists that Fannie's subprime mortgages have "zero risk."

 

Sen. McCain warned in 2006 about the "enormous risk" that Fannie and Freddie posed to the economy, but Democrats blocked his reform and oversight bill.

 

Plenty of people in both major parties benefited from Fannie and Freddie's house of cards. But virtually all the people enriching themselves on the inside were Democrats (Raines, Johnson, Gorelick, Mudd). And the majority of the politicians raking in big contributions and using the easy credit scam to further their political careers were Democrats (Dodd, Kerry, Obama, Clinton).

It's more than a bit unseemly for Sen. Obama (who took $105,000 from Fannie and Freddie in just 2 years) to blame the mess on the "failed Bush policies."

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