Crony Capitalism and Government Protected Mortgage Giants

By Joe Miller.  Yesterday, top executives at Fannie Mae and Freddie Mac defended exorbitant $16 million pay bonuses for themselves even though they presided over epoch failures of their agencies.

By way of background, Fannie Mae and Freddie Mac are ground zero of the current financial crisis because of their government insured positions as a “mortgage backstop.”  Long story short, Fannie Mae and Freddie Mac performed the duty of garbage dump when the big banks decided that they could no longer hold onto worthless mortgage securities.  In the interest of the federal government’s desire to artificially increase American home ownership, these two GSE’s (government sponsored enterprises) were allowed to drown in billions of dollars of debt.

As a result, the American taxpayer – already the de facto owners of Fannie and Freddie – coughed up at least $170 billion in order to bail out the two firms since 2008.  Knowing how accounting is done in Washington, the actual taxpayer bail-out will likely be several times this.   In essence, as with many other bailed out institutions, Fannie and Freddie are on life-support, similar to the zombie banks of Japan in the mid-90s.

Those who track the daily activities of Washington D.C. aren’t surprised to see millions of dollars being paid out to those at the top of these zombie firms.   Nearly $13 million will be paid out to just ten Fannie and Freddie executives this year.  These exorbitant bonuses can’t be based on exceptional performance as Fannie and Freddie are presently almost entirely dependent on taxpayer funds for their mere survival.

In the private sector, entities go out of business if they cannot come to terms with their debt and obligations, and that’s the way it should be.  But in the DC climate, the rules of economics are often corrupted in order to benefit the politically connected.  Some call this “crony capitalism.”

Obviously, this is not the first time that millions of dollars have found their way into the pockets of those with the right friends in high places.  A quick look at the stories concerning former Fannie and Freddie executives Franklin Raines and Jamie Gorelick reveal that running a business into the ground with the federal government’s blessing is often a real positive for the personal balance sheet.  Gorelick took in nearly $24,000,000 during her federal tenure while Raines raked in a cool $90,000,000.

Raines has even been accused by an oversight agency of aiding in accounting errors and hiding losses in order to recoup large bonuses.   Both Gorelick and Raines were high ranking officials in the Clinton administration, and to this day nothing has come of their unbelievable conduct while at Fannie and Freddie.  But that’s the way it works for some in America.

In order to truly end the corruption in Washington D.C. that has caused the taxpayer billions of dollars and has unraveled the fabric of our republic, there must be widespread replacement of those in power.  The entrenched political class, who protect their friends with power and influence, simply has to go.  This is why we need candidates and office holders who are willing to fight the tough fight and who refuse to “go along to get along.”  Calling all Andrew Jacksons …

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There’s No Conservative Case for Romney

I had the pleasure of appearing on National Public Radio’s On Point with Tom Ashbrook to discuss “the conservative case for Mitt Romney” with Tom, Washington Post columnist Michael Gerson and for the last half hour of the show, Ryan Hecker, formerly with the Houston Tea Party, now Chief Operating Officer of FreedomWorks of America.

It was a good conversation, not only because Ashbrook, Gerson and Hecker had some interesting observations about the current Republican presidential nomination process, but because the callers confirmed one of my major concerns about the potential nomination of Mitt Romney as the Republican candidate for President — namely, that many conservatives and Tea Partiers would be unlikely to vote for Romney in the general election.

Of the dozen or so callers who spoke on the show, only one said he was for Romney, and the rest, when asked, either equivocated or indicated they would not vote for Romney even against Barack Obama.

While this seemed to be something of a surprise to our host Tom Ashbrook — it was no surprise to me, or to Tea Partier Ryan Hecker, who predicted Romney would get “zero” Tea Party support in the primary, and here’s why.

Romney has been stuck in the mid-twenties for the entire five years he has been running for President. This is about the same number of Republicans who do not self-identify as conservatives.

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 Read More at Real Clear Politics By Richard Vigurie, Real Clear Politics

Another Obama Advisor Favors Health Care Rationing

Barack Obama has nominated Henry J. Aaron to head the Social Security Advisory Board, a panel that advises the president and Congress about the old age system. The choice is most dangerous, since Aaron has a decades-long record as an advocate of denying American patients health care along the lines of the British national health system.

Aaron, a Brookings Institution scholar, has devoted his entire career to creating an intellectual and economic basis for health care rationing. In 2000, Aaron wrote, “The problem is that in the real world of limited medical resources, denial of beneficial care is inescapable.” Aaron wrote in a 2009 paper it is necessary for the government “to develop protocols that enable providers to identify in advance patients in whom expected benefits of treatment are lower than costs [and] to design incentives that encourage providers to act on those protocols.” That is, government must provide “incentives” to assure doctors deny treatment to those whom the ruling class deems unworthy of life.

Far from a passing interest, it would be fair to say advocacy for health care rationing has been the defining goal of Aaron’s career. In 1984 Aaron and William B. Schwartz wrote The Painful Prescription: Rationing Hospital Care. Six years later, the team wrote Rationing Health Care: The Choice Before Us. In 2005, Aaron teamed with Schwartz and Melissa Cox to write Can We Say No? The Challenge of Rationing Health Care for Brookings. A blurb for the book explains:

Can We Say No? argues that sensible health care rationing not only can save money, but can improve public health and general welfare as well…The choices the British have made point up the nature of the options Americans will face if they wish to prevent health care budgets from driving taxes higher and private spending from crowding out increases in other forms of worker compensation and consumption. The authors explain why serious consideration of health care rationing in the United States is advisable, even inescapable.

In the chapter he contributed to the book Setting Domestic Priorities: What Can Government Do?, Aaron wrote explicitly, “The simplest way to slow the growth of health care spending is to cap resources available to health care providers.” He noted hopefully, “Confronted with severe limits on equipment and staffing that necessitates denial of beneficial care to patients in Britain, one physician stated that there are always some reasons not to treat particular patients.” (Emphasis added.) The British physician admitted he “states the reason for not going forward in medical terms…but that formulation in many instances is in no small part conditioned by the fact that there really aren’t enough resources to treat everybody.”

Aaron then delineated his own plan, which:

would start with the establishment by the federal government of a ceiling on U.S. health care spending. A national budget would be parceled out among regions or states and then to substate units. The budgets would be allocated among hospitals and other providers by quasi-political entities. No one has described in detail how such expenditure caps would be calculated, what organization would determine allocations among and within the states, and how the limits wold be enforced.

 Read More at Floyd Reports By Ben Johnson, The White House Watch

What Fast and Furious and Occupy Wall Street Have in Common

In Operation Fast and Furious, Border Patrol agent Brian Terry was murdered on American soil; he was shot with a gun that was put in the hands of the shooter by an agency under the direction of Barack Obama’s Justice Department – the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). In the months that have transpired since, culpability has been creeping closer to Obama himself, thanks to suspect and conflicting testimony from a range of officials at DOJ, including Attorney General Eric Holder. Those following the scandal have been choking on the stench of cover-up for months.

Speaking of stench, since the mayor of Oakland – Jean Quan – allowed protesters to ‘re-occupy’ her city after ordering police to clear the area, millions of dollars of damage has been done; crime has surged, and a man was shot dead at the Frank H. Ogawa Plaza, the site of Occupy Oakland. The question of whether Quan has the blood of that man on her hands hangs in the air like smoke from a fired gun on a still night. Since the shooting on November 10th, there appears to be multiple attempts to cover-up some facts there too.

Barucha Peller, a woman who fancies herself as a bit of a spokesperson for Occupy Oakland, didn’t just attempt to distance the movement from the shooting; she made it sound as if the man’s chances of survival would have been diminished but for her colleagues:

“The only direct Occupy Oakland involvement was in order to provide emergency first-aid services.”

Thanks to Zombie at Pajamas Media, it’s been learned that the San Francisco Chronicle shamefully scrubbed a portion of one of its reports that identified the victim as having been an Occupy Oakland occupier. It only served to make Peller’s claims even more despicable.

At the very beginning of the Obama administration, the ATF portrayed itself as an entity that did everything it possibly could to interdict weapons headed for Mexico. In reality, it was facilitating their transport. Mexican drug cartels were the beneficiaries of at least 2,000 guns. In a February 4, 2011 letter to Senator Chuck Grassley, Assistant Attorney General Ronald Weich reiterated that the ATF was doing all it could to protect Americans when he wrote:

“ATF makes every effort to interdict weapons that have been purchased illegally and prevent their transportation to Mexico.”

 Read More at Floyd Reports By Ben Barrack, Floyd Reports

Secret Service Searched Occupy D.C. Camp For Person Who Shot At White House

The Secret Service searched Occupy D.C. on Monday for a man suspected of firing bullets at the White House on Friday, one of which was stopped by the building’s ballistic glass.

Protestor Ralph Wittenberg told TPM on Tuesday evening that authorities came through “searching for a so-called terrorist who shot at the White House, with no warrant, they went into everybody’s tents.”

A person handling media requests for Occupy DC confirmed the searches and said they were led by the Secret Service. The agency did not immediately respond to a request for comment.

Police have been trying to locate 21-year-old Oscar Ortega Hernandez, a mentally ill man from Idaho who authorities say is connected to the incident, which apparently took place on Friday.

Agents began investigating after gunshots were heard on Friday night, but NBC Washington reports that agents didn’t discover the bullets until Tuesday morning.

 Read More at talkingpointsmemo.com By Ryan J. Reilly, talkingpointsmemo.com

Massive chaos, gridlock to be unleashed on NYC

NEW YORK – Watch out New York City. The Occupy anti-capitalist movement is preparing to serve a three-course meal of so-called direct action that apparently includes the blocking of subways and bridges as well as shutting down the stock market.

The attempt to cause mass chaos, slated for Thursday, is tied to the Tides Center, the George Soros-financed group that funds far-left causes. Tides grantees have been helping to direct Occupy from the onset of the anti-Wall Street movement.

Occupy Wall Street is currently holding “Direct Action Preparation and Training” courses today and tomorrow in downtown Manhattan to gear up for Thursday’s round of riots.

The Occupy site announces: “Action Preparation & Training for November 17th, November 30th and Beyond.”

The training plan states it aims to “build affinity team, train to do actions and civil disobediences, meet new allies and friends and have some fun with us.”

 Read More at WorldNetDaily By Aaron Klein, WorldNetDaily

New Obama Vaccine Scandal: Smallpox Contract Aids Democratic Donor

Late breaking, but hardly surprising, corruption news, reported by the ever-so-liberal Los Angeles Times, no less:

Cost, need questioned in $433-million smallpox drug deal: A company controlled by a longtime political donor gets a no-bid contract to supply an experimental remedy for a threat that may not exist.

It seems that in spite of being caught flat-footed and red-handed pouring taxpayer dollars into failing, mismanaged, Democrat-donor run “green” energy company Solyndra, the Obama-Soetoro Gang threw caution to the wind, and engineered a highly unethical and perhaps also illegal deal for another fat cat Democrat donor.

Siga Technologies is run by one of the richest men on the planet, ranked 52nd richest in 2010, and thus, clearly a One-percenter, billionaire and long-time Democrat and big donor, Ronald O. Perelman. It is ironic how many big Democratic donors are the same super-rich Jews that anti-Semitic Occupy Wall Street protesters hate so much. But I digress….

Siga was trying to get a contract to sell the government 1.7 million doses of smallpox vaccine, but ran into some major problems. For example, their drug is experimental and has never been tested on humans, so no one has any idea of whether or not it works. Then, there’s the fact that smallpox was eradicated, wiped out, back in 1978, except for small samples kept locked away by the Russians and us. And to top it off, Siga wanted $255 per dose, for a total of $433,500,000.

For us as taxpayers, another huge question is why this came up at all. It seems that the government already has a billion-dollar stockpile of a smallpox vaccine that is known to work. With only a vague and extremely remote possibility that somehow a terrorist group might get their hands on live smallpox virus — a possibility which the LA Times reports, “There is no credible evidence that any other country or a terrorist group possesses smallpox” — it looks as if this is a needless project to begin with.

Follow Joe Miller at Twitter HERE and Facebook HERE.

Read More at Floyd Reports By Michael Oberndorf, Floyd Reports

 

It’s All About Energy, Cost, And International Competition

We are in an economic war—and it is bigger than Republicans and Democrats battling over tax increases and spending cuts. It is global.

The stock market has gone up and down, based on news of Europe’s financial solutions one day, and demise the next. Their success or failure impacts the global economy—including the United States.

The various troubled countries: Portugal, Italy, Ireland, Greece, and Spain are often referred to as the PIIGS. While there are myriad reasons for their difficulties, one not discussed on the nightly news is their lack of natural resources. By comparison, the BRIC countries—those with growing economies: Brazil, Russia, India, and China, are rich with resources, which they maximize.

America has an abundance of natural resources, yet our policies keep them locked up. We can’t drill in the Gulf. ANWAR is off limits. Mining is nearly impossible due to regulations. “Endangered species” threaten existing supplies.

Meanwhile resource discoveries are being made and developed the world over.

Last week, Repsol announced a new discovery in Argentina—estimated to be more than 900 million barrels of oil. The oil shale find is reported to be Repsol’s largest ever. Argentina’s potential has attracted investment from both majors and independents. Argentina’s rising energy consumption and higher prices make Repsol’s success especially welcome, representing a potential windfall for the country. Argentina is not crying.

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Read More at epaabuse.com EPAAbuse.com