Category Archives: Politics: National

California: Part I

I think that I’m gonna keep a running tally of the crap that’s going on in California.  It is possible, very likely, that the State is going to have to go bankrupt or beg for and receive a bailout from the Federal Government.

Part I:

California is known for its car culture. But it turns out those wheels are rolling over some of the worst roads in the nation. A recent study ranked California 49th out of the 50 states for the quality of its pavement. New Jersey came in last. But California has the distinction of having the nation’s worst roads in urban areas.

I should be happy that NPR is saying anything negative on the darling of the left.  But then again, not one single reference as to why the roads are so bad.  Not one mention as to the shrinking revenues, the mounting debt and the tendency of California to drive out both business and the wealthy.

A guy can dream?

The Rookie

Gettin’ closer to being benched!

The Nation Wakes Up

Rookie of the Year

Gawd.  Obama continues to make the Rookie of the Year race close.  This gem is in response to critics of his Administration’s decision to try the 9/11 masterminds in NYC.

“(What) I think we have to break is this fearful notion that somehow our justice system can’t handle these guys,” Obama said in an interview with NBC News.

Asked if he understood why some people were offended by trying the men in U.S. courts, he replied: “I don’t think it will be offensive at all when he’s convicted and when the death penalty is applied to him.”

So, the President, trying to showcase the US Judicial system, declares that the defendants are guilty and, AND, he has passed judgment too!

Not that I don’t agree.  Of course I think they are guilty and should die for their crimes.  But I am not the President of the United States.

I just wish that Obama would remember that he IS a little more often.

Welcome Wagon

The Pink Elephant has moved. And she has a name; Tabitha Hale

Good luck in Washington; do us proud!

Freddie and Fannie: Just the Beginning

I am convinced that Fannie and Freddie were the causes that led to the current recession.  I am sure that when incentives were created to give people money who had no or little ability to pay that money back, bad bad things were going to happen.

But somehow all of that got lost in all of the fall out.  What we heard was how evil those greedy corporations are.  What we heard was how Wall Street doesn’t look after Main Street.  What we heard was that it was Big Corporations that are somehow “Too Big To Fail” that brought this country to its knees.

What we didn’t hear was the story behind Fannie and Freddie:

NEW YORK (Reuters) – Freddie Mac, the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a “prolonged deterioration” in housing.

And why is the company losing so much money?

delinquencies worsened on loans it guarantees.

Well, heck, what can ya expect?  The little brother of Fannie Mae is surly the runt of the litter and can only look on as big sister excels, right?  Right?

Its larger rival Fannie Mae on Thursday said it would need $15 billion from the U.S. Treasury after a whopping $18.9 billion third-quarter loss.

Whoops!  Didn’t see THAT one coming.

But hey, Fannie and Freddie–ya know, they are players but really, they aren’t THAT big; are they?  Or are they?

Results at Freddie Mac and Fannie Mae are widely watched as a barometer of the U.S. housing market since they own or back nearly half of outstanding mortgages.

Jeepers.  By golly, they ARE that of a player in the market!  And maybe, just maybe, when those two players begin to change the way in which they do business, the rest of the market attempts to adapt?

In other words,  I guess what I’m saying is that when Fannie and Freddie, backed by good Ol’ Unc [that’s the USofA to you and me], begin too incent market forces to provide mortgages to people who can’t afford mortgages, you end up with a bunch of:

horse.shit

But hey, what’s $51.7 billion between friends?  Or even $60.9 billion?  At least your good for it, right?

Starting in 2010, the company will begin accounting for $1.8 trillion in mortgage-backed securities it guarantees on its balance sheet to meet new guidelines. This will increase interest income and interest expenses, and could have a significant negative impact on net worth, it said.

Hmm, something smells in the State of Denmark.

Shares of Freddie Mac were flat at $1.23 in light after-hours trading following the results.

And if you’ll buy shares at a buck 23, I have some fertilizer for your garden…

Screw Soviet Russia – Fear California

In all of our hast to announce that America is turning into a Socialist State, we may be missing the creep of government here.  via Kids Prefer Cheese

San Francisco resident Carla Ruff’s safe-deposit box was drilled, seized, and turned over to the state of California, marked “owner unknown.”  “I was appalled,” Ruff said. “I felt violated.”

Unknown? Carla’s name was right on documents in the box at the Noe Valley Bank of America location. So was her address — a house about six blocks from the bank. Carla had a checking account at the bank, too — still does — and receives regular statements. Plus, she has receipts showing she’s the kind of person who paid her box rental fee. And yet, she says nobody ever notified her.

To make matters worse, Ruff discovered the loss when she went to her box to retrieve important paperwork she needed because her husband was dying. Those papers had been shredded.

//

And that’s not all. Her great-grandmother’s precious natural pearls and other jewelry had been auctioned off. They were sold for just $1,800, even though they were appraised for $82,500.

“These things were things that she gave to me,” Ruff said. “I valued them because I loved her.”

Okay, okay.  So the bank made a mistake, right?  A horrible one.  But a mistake.  Right?  Huh, not right?

California law used to say property was unclaimed if the rightful owner had had no contact with the business for 15 years. But during various state budget crises, the waiting period was reduced to seven years, and then five, and then three. Legislators even tried for one year. Why? Because the state wanted to use that free money.

“That’s absolutely correct,” said California State Controller John Chiang, who inherited the situation when he came into office. “What we’ve done here over the last two decades has been dead wrong. We’ve kept the property and not provided owners with the opportunities — the best opportunities — to get their property back.”

Chiang now faces the daunting task of returning $5.1 billion worth of unclaimed property to people. Some states keep their unclaimed property in a special trust fund and only tap into the interest they earn on it. But California dumps the money into the general fund — and spends it.

“It’s supposed to be segregated and protected,” Palmer said. “California has taken all of that $5.1 billion and has used it as a massive loan.”

Awesome!  Go California!

Tough to Call

The House of Representatives voted to pass their version of the Health Care bill.  The vote was close, 220-215.  Of the 220 “Yeah” votes, only one of them was from a Republican congressman; Joseph Cao from Louisiana.  Already Republicans are deserting him:

The only Republican in the House to vote for a Democrat-backed health care bill says he has had two fundraisers canceled since Saturday’s vote and some campaign contributors have asked for their money back.

I don’t agree with the Grand Old Party on this one; I think they have it wrong.  This is delicate situation for Joseph.  The only reason he has the seat is because the incumbent, William Jefferson, was caught with 80k in his freezer.  On top of that, the  election that resulted in Cao winning the seat was delayed twice due to hurricanes.  This meant that the star power of Obama wasn’t on the ballot; many many Democrats just stayed home.  And he still only barely won.

Look, the bill didn’t pass because of Joseph, a firm anti-abortion advocate, voted yes.  In fact, the bill may have passed because Republicans got their way–they insisted that strong anti-abortion language be inserted in the bill giving cover to the more conservative democrats who may come from pro-life districts.  In fact, Cao didn’t even cast his vote until AFTER the 218th vote had already been counted.

This is a case of a Republican trying to stay in office.  Hard to blame him.

Sleight of Hand

I have to admit I was suckered.  I bit.  Hook line and sinker.  DAMN it!  When I saw the headline I should have known:

Senate Dems Aim to Curb Fed’s Powers

But instead I clicked through.  And got suckered yet again:

WASHINGTON – Senate Democrats on Tuesday proposed stripping the Federal Reserve of its supervisory powers

WOW!  Virginia and New Jersey really got to these guys!

My excitement and wonderment lasted, ohh, about 14 words; and that’s counting “Washington”

and creating instead three new federal agencies to police banks, protect consumers and dismantle failing institutions.

Doh!  I should’ve known!  In fact, I’m pissed I missed it.  I mean, really?  A Democrat trying to reduce the size of government? Sheesh.

Hot Stove League

The Twins traded Carlos Gomez to the Brewers for J.J. Hardy on Friday.  The thinking in the Twins front office is that they were able to move out weak hitting center fielder and bring in a short stop that can hit for power and has a decent average.  Further, Hardy is a fantastic fielder bringing an elite defender to the Twins infield.

This is a good deal.

twins

The Democrats would have us believe the same is true of the trade they made this past Saturday.  What they have passed in the house is a trade of sorts.  The thinking in the minds of the Democrats is that we are able to get rid of a system that costs too much and leaves too many people uninsured.  By passing laws that prohibit insurance companies from denying coverage based on pre-existing conditions they are able to bring in a system that allows for insurance to everyone.  Further, to help bring down costs to those most in need, the plan calls for all Americans to enroll in an approved policy or face a fine.

This is a good deal.

Back to baseball.  I began to look a little deeper into the trade and began to see a couple of things.  By moving Gomez out and brining in Hardy, not only did we trade away a .229 average for a player that hit .283 in 2008.  Further, Brady hit 24 HR to 3 for Gomez.  On top of that, with Gomez out of the lineup the Twins now have room for Delmon Young who has a career average of .290.  Not only are we trading for a player with 57 some odd points to the plus, we are also able to play Young for a full season.

This is turning into a REALLY good deal.

On top of the fact that insurance companies are no longer able to restrict insurance for people with pre-existing conditions the House bill doesn’t raise taxes for a majority of Americans.  Rather, people making $500,000 or more would see a 5.4% increase on their tax bill.  Further, those “Gold Plated” policies would see a tax hike; up to 40%.  But for the average middle class American, the tax bill remains the same.  On top of that, the bill includes language that allows families making up to 400% of the poverty level to receive federal assistance; albeit on a sliding scale.  Last, if you currently receive insurance from your employer, you can continue to do so.  Or, if you don’t, there will be a National Exchange.

This is turning into a REALLY good deal.

As I wrap up my trade analysis, I end up with the unintended consequences.  By trading away Carlos Gomez, the Twins center fielder, the team must now play Denard Span in CF.  And THAT means with Span in center, Delmon Young has to play in left field.  Now, when the Twins had Gomez in CF and Young in LF, they were able to brag the best OF in baseball.  But, with the unintended consequence of Span in center and Young in left, the Twins will now be  start the worst OF in baseball; to the tune of 88 runs to the bad.  That doesn’t even come close to the benefit they gain by adding Hardy to the team.

The unintended consequence of a horrible defense has made this trade:  BAD.

Sadly, the story is much the same for the Democrats and the House bill.  By allowing people to purchase insurance without regard for pre-existing conditions, people are not compelled to purchase insurance while they are healthy; they can be assured that they can buy it when they become sick.  But-but-but, they HAVE to buy a policy or they will pay a fine!  Well, the fine is very very much less than whatever policy I would otherwise buy:

The average cost of an insurance policy with family coverage in 2009 is $13,375. A married couple with a median family income of $75,000 who choose not to insure would be subject to a fine of 2.5 percent of that $75,000, or $1,875. So the family would save a net $11,500 by not insuring.

Hmm, the unintended consequences of horrible incentives has made this trade:  BAD.

results

Where Brad and Britt Are Wrong

This morning Brad and Britt are discussing the shooting at Fort Hood.  During the conversation, Britt makes the statement that we can’t afford to piss ’em off, because that’s where we get all our oil!

It made me stop and wonder why he thought we were talking about Canada.

Oil Imports

Oil Imports October 29, 2009

Or Mexico.

Weird, those guys.