Tuesday, September 30, 2008
The Common Sense Fix
Dave Ramsey has a proposed solution to the current financial crisis that I believe merits the attention of our Congressional leaders. It is called The Common Sense Fix. Read it by clicking on the link and then go to this page to see how you can take action. This is critically important to our future.
Monday, September 29, 2008
A Failure of Socialist Measures in the U.S.
Many are touting the current financial crisis in the U.S. as a failure of capitalism. That is wrong. It is a failure of socialism. The crisis is a result of socialist tending policies implemented by our legislators.
The current $700 Billion “bailout” of the financial industry is a case in point. In 1977 the Community Reinvestment Act became law. It was intended to “encourage” financial institutions to provide credit to moderate and low-income individuals. It was meant to stop the practice of “red-lining” which is not making loans into neighborhoods that were considered poor credit risks.
The Federal National Mortgage Association (Fannie Mae) was started in 1938 as part of FDR’s New Deal. It was a government sponsored enterprise until 1968 when it was converted to a private corporation. It was designed to purchase mortgages from private financial institutions and then to re-sell them in “packages” as mortgage-backed securities. It became the vehicle for lenders to meet the requirements of the Community Reinvestment Act. As of 2008, Fannie Mae owned or guaranteed about half of the U.S.’s $12 Trillion mortgage market. The loans held by Fannie Mae as of August, 2008, amounted to approximately $700 Billion – the estimated cost of the bailout.
The size of Fannie Mae backed mortgages has increased through the years to the point that a loan for a single-family dwelling in excess of $400,000 can qualify. It is not just the need for low-income housing that was being met by their guarantees. It was part of the reason for highly inflated housing markets across the country. When that bubble burst due to high oil prices which sent a ripple through our economy, the worthless nature of their guarantees became apparent.
The public belief that Fannie Mae backed loans are guaranteed by the U.S. Treasury is incorrect. Fannie Mae was a private corporation with traded stock. Investors who purchased Fannie Mae backed mortgage securities did so in the belief that the government backed the guarantees of principal and interest on those securities. It does not – or, it didn’t until the current bailout package.
Credit-worthiness should be the primary criteria for loans -- not pseudo-guarantees. The idea that everyone should be able to purchase their home is worthy, the method for accomplishing that through government intervention in the marketplace is not. People need to learn self-reliance, not government reliance. It is time to get the government out of the marketplace.
The current $700 Billion “bailout” of the financial industry is a case in point. In 1977 the Community Reinvestment Act became law. It was intended to “encourage” financial institutions to provide credit to moderate and low-income individuals. It was meant to stop the practice of “red-lining” which is not making loans into neighborhoods that were considered poor credit risks.
The Federal National Mortgage Association (Fannie Mae) was started in 1938 as part of FDR’s New Deal. It was a government sponsored enterprise until 1968 when it was converted to a private corporation. It was designed to purchase mortgages from private financial institutions and then to re-sell them in “packages” as mortgage-backed securities. It became the vehicle for lenders to meet the requirements of the Community Reinvestment Act. As of 2008, Fannie Mae owned or guaranteed about half of the U.S.’s $12 Trillion mortgage market. The loans held by Fannie Mae as of August, 2008, amounted to approximately $700 Billion – the estimated cost of the bailout.
The size of Fannie Mae backed mortgages has increased through the years to the point that a loan for a single-family dwelling in excess of $400,000 can qualify. It is not just the need for low-income housing that was being met by their guarantees. It was part of the reason for highly inflated housing markets across the country. When that bubble burst due to high oil prices which sent a ripple through our economy, the worthless nature of their guarantees became apparent.
The public belief that Fannie Mae backed loans are guaranteed by the U.S. Treasury is incorrect. Fannie Mae was a private corporation with traded stock. Investors who purchased Fannie Mae backed mortgage securities did so in the belief that the government backed the guarantees of principal and interest on those securities. It does not – or, it didn’t until the current bailout package.
Credit-worthiness should be the primary criteria for loans -- not pseudo-guarantees. The idea that everyone should be able to purchase their home is worthy, the method for accomplishing that through government intervention in the marketplace is not. People need to learn self-reliance, not government reliance. It is time to get the government out of the marketplace.
Friday, September 26, 2008
Hutchison for Governor?
The rumors are flying and seem to have credibility that Texas Senator Kay Bailey Hutchison will run for Governor in the 2012 election. That may seem like a long time away but it will be here before you know it. I applaud her move.
Texas Governor Rick Perry has done an admirable job but it is time for someone else to step into that position. We might even see Governor Perry run for her Senate seat. I suspect that his ambitions run in that direction. Senator Hutchison's announcement that she would resign her Senate Policy Committee Chairmanship was met with a political riposte by a Perry spokesman that indicated she should be focused on helping Texans recover from hurricane Ike rather than on politics.
We will see what Hutchison's move does for Senator John Cornyn, currently the junior Senator from Texas. It could mean that he will move into her Chairmanship post. It may place him in a stronger position within the Texas Republican political hierarchy as well. He is challenged this year for his Senate seat by Rick Noriega. Noriega has conducted a bumbling campaign so far and with only a few weeks until the election is expected to fall well behind Senator Cornyn in the voting. It is in Texas' best interest to return Senator Cornyn to Washington. He has become a strong and very influential player in the Senate.
Texas Governor Rick Perry has done an admirable job but it is time for someone else to step into that position. We might even see Governor Perry run for her Senate seat. I suspect that his ambitions run in that direction. Senator Hutchison's announcement that she would resign her Senate Policy Committee Chairmanship was met with a political riposte by a Perry spokesman that indicated she should be focused on helping Texans recover from hurricane Ike rather than on politics.
We will see what Hutchison's move does for Senator John Cornyn, currently the junior Senator from Texas. It could mean that he will move into her Chairmanship post. It may place him in a stronger position within the Texas Republican political hierarchy as well. He is challenged this year for his Senate seat by Rick Noriega. Noriega has conducted a bumbling campaign so far and with only a few weeks until the election is expected to fall well behind Senator Cornyn in the voting. It is in Texas' best interest to return Senator Cornyn to Washington. He has become a strong and very influential player in the Senate.
Wednesday, September 24, 2008
McCain Demonstrating Leadership in Financial Crisis
Below, I have posted in its entirety, a news release from the McCain Campaign regarding the Economic Crisis. I believe that he shows the kind of leadership that we need to address the situation. At the bottom is a link that tells about Obama's response.
John McCain's Remarks on the Economic Crisis
New York, NY
Wednesday, September 24, 2008
America this week faces an historic crisis in our financial system. We must pass legislation to address this crisis. If we do not, credit will dry up, with devastating consequences for our economy. People will no longer be able to buy homes and their life savings will be at stake. Businesses will not have enough money to pay their employees. If we do not act, every corner of our country will be impacted. We cannot allow this to happen.
Last Friday, I laid out my proposal and I have since discussed my priorities and concerns with the bill the Administration has put forward. Senator Obama has expressed his priorities and concerns. This morning, I met with a group of economic advisers to talk about the proposal on the table and the steps that we should take going forward. I have also spoken with members of Congress to hear their perspective.
It has become clear that no consensus has developed to support the Administration's proposal. I do not believe that the plan on the table will pass as it currently stands, and we are running out of time.
Tomorrow morning, I will suspend my campaign and return to Washington after speaking at the Clinton Global Initiative. I have spoken to Senator Obama and informed him of my decision and have asked him to join me.
I am calling on the President to convene a meeting with the leadership from both houses of Congress, including Senator Obama and myself. It is time for both parties to come together to solve this problem.
We must meet as Americans, not as Democrats or Republicans, and we must meet until this crisis is resolved. I am directing my campaign to work with the Obama campaign and the commission on presidential debates to delay Friday night's debate until we have taken action to address this crisis.
I am confident that before the markets open on Monday we can achieve consensus on legislation that will stabilize our financial markets, protect taxpayers and homeowners, and earn the confidence of the American people. All we must do to achieve this is temporarily set politics aside, and I am committed to doing so.
Following September 11th, our national leaders came together at a time of crisis. We must show that kind of patriotism now. Americans across our country lament the fact that partisan divisions in Washington have prevented us from addressing our national challenges. Now is our chance to come together to prove that Washington is once again capable of leading this country.
For Obama's response, read the story linked below:
http://www.msnbc.msn.com/id/26872907
John McCain's Remarks on the Economic Crisis
New York, NY
Wednesday, September 24, 2008
America this week faces an historic crisis in our financial system. We must pass legislation to address this crisis. If we do not, credit will dry up, with devastating consequences for our economy. People will no longer be able to buy homes and their life savings will be at stake. Businesses will not have enough money to pay their employees. If we do not act, every corner of our country will be impacted. We cannot allow this to happen.
Last Friday, I laid out my proposal and I have since discussed my priorities and concerns with the bill the Administration has put forward. Senator Obama has expressed his priorities and concerns. This morning, I met with a group of economic advisers to talk about the proposal on the table and the steps that we should take going forward. I have also spoken with members of Congress to hear their perspective.
It has become clear that no consensus has developed to support the Administration's proposal. I do not believe that the plan on the table will pass as it currently stands, and we are running out of time.
Tomorrow morning, I will suspend my campaign and return to Washington after speaking at the Clinton Global Initiative. I have spoken to Senator Obama and informed him of my decision and have asked him to join me.
I am calling on the President to convene a meeting with the leadership from both houses of Congress, including Senator Obama and myself. It is time for both parties to come together to solve this problem.
We must meet as Americans, not as Democrats or Republicans, and we must meet until this crisis is resolved. I am directing my campaign to work with the Obama campaign and the commission on presidential debates to delay Friday night's debate until we have taken action to address this crisis.
I am confident that before the markets open on Monday we can achieve consensus on legislation that will stabilize our financial markets, protect taxpayers and homeowners, and earn the confidence of the American people. All we must do to achieve this is temporarily set politics aside, and I am committed to doing so.
Following September 11th, our national leaders came together at a time of crisis. We must show that kind of patriotism now. Americans across our country lament the fact that partisan divisions in Washington have prevented us from addressing our national challenges. Now is our chance to come together to prove that Washington is once again capable of leading this country.
For Obama's response, read the story linked below:
http://www.msnbc.msn.com/id/26872907
Witness the Beginning of a World Changer
The world and the Democrats underestimate Governor Sarah Palin, VP running mate of John McCain. The lady has class and poise that cover a solid intellect and a heart for her country and the citizens who dwell in it. With John McCain's experience and heart for service to lead the way, she will become a formidable force within a McCain administration.
Her charm will cross many barriers that might be denied to others. With proper coaching and mentoring, she could potentially play a significant role on the world stage in a manner that is beyond the typical role of a Vice President. Her perceptive mind and graceful presence are a combination that could place her in the forefront of forging strong relationships with leaders throughout the world. She could become a coalition builder unsurpassed in recent U.S. history.
She has a unique opportunity. Through a mentoring/educational process, she can sit down with world leaders and ask them one-on-one, in a manner not usual for diplomatic efforts, what is important to each of them. She can seek to understand the issues that are critical to them by asking questions. Diplomats are "assumed" to have an understanding of the countries with which they deal. She is not bound by those assumptions. She is a fresh slate where new ideas and perceptions can be shaped.
Foreign policy experience? Give her time and she could become a world-changer.
Her charm will cross many barriers that might be denied to others. With proper coaching and mentoring, she could potentially play a significant role on the world stage in a manner that is beyond the typical role of a Vice President. Her perceptive mind and graceful presence are a combination that could place her in the forefront of forging strong relationships with leaders throughout the world. She could become a coalition builder unsurpassed in recent U.S. history.
She has a unique opportunity. Through a mentoring/educational process, she can sit down with world leaders and ask them one-on-one, in a manner not usual for diplomatic efforts, what is important to each of them. She can seek to understand the issues that are critical to them by asking questions. Diplomats are "assumed" to have an understanding of the countries with which they deal. She is not bound by those assumptions. She is a fresh slate where new ideas and perceptions can be shaped.
Foreign policy experience? Give her time and she could become a world-changer.
Tuesday, September 23, 2008
A Transfusion to Buy Time: The Bleeding Financial Markets
How is the average person to understand the mess in the elite community of Financial Powerhouses that has prompted a complete shakeup on Wall Street, an $85 Billion loan to shore up a huge insurance company and a potentially $700 Billion bailout of two mortgage lenders? Even the gurus of Wall Street are struggling with making sense of the markets today. Congress, quite frankly, probably lacks the expertise to deal with the problems. Our legislators must rely on their staff for the expert advice on how to proceed. The influence peddlers will certainly be out in force attempting to shape the outcome.
To even begin to analyze what created the mess we are facing would require several volumes. We must examine the history of the financial markets, insurance markets and banking industry. We must dive into the history of legislative initiatives that have blurred the lines between the various kinds of financial institutions. We must look at the evolving attitude in business schools toward profit at any cost. We must examine the methodologies taught to MBA's and Financial Analysts. We must look at Federal Monetary Policy and interest rate markets. We would have to delve into the myriad financial instruments and types of financing arrangements that are the specialty of a minute few. We would need to discuss policies related to housing for low-income families and the necessary guarantees to enable availability of financing for individuals who have accumulated insufficient capital to merit loans without those guarantees. We would need to look at retirement packages and policies that regulate 401 K's and IRA's. We would need to look at the basic money management skills which should be taught to every individual passing through our school systems. We would need to investigate the investigators -- those regulatory agencies responsible for overseeing the various and complex behemoths that control the billions and trillions of dollars that pass through them. The list goes on....
The crisis is of a complexity that few fathom and none can fix quickly and easily. It is the result of the cumulative effects of decades of policies, legislation and regulation. However, we must stop the bleeding quickly. The wound may or may not be fatal. It will take much more than a Band aid to fix. It will require major surgery and years of therapy.
Hopefully, Congress will buy us some time with the bailout in order for the surgeons to begin their work. The transfusions have been started but the surgery will be long. I pray that our leaders, such as Senator Cornyn (his thoughts here), will have the wisdom to steer us through the surgery and onto the path of recovery.
To even begin to analyze what created the mess we are facing would require several volumes. We must examine the history of the financial markets, insurance markets and banking industry. We must dive into the history of legislative initiatives that have blurred the lines between the various kinds of financial institutions. We must look at the evolving attitude in business schools toward profit at any cost. We must examine the methodologies taught to MBA's and Financial Analysts. We must look at Federal Monetary Policy and interest rate markets. We would have to delve into the myriad financial instruments and types of financing arrangements that are the specialty of a minute few. We would need to discuss policies related to housing for low-income families and the necessary guarantees to enable availability of financing for individuals who have accumulated insufficient capital to merit loans without those guarantees. We would need to look at retirement packages and policies that regulate 401 K's and IRA's. We would need to look at the basic money management skills which should be taught to every individual passing through our school systems. We would need to investigate the investigators -- those regulatory agencies responsible for overseeing the various and complex behemoths that control the billions and trillions of dollars that pass through them. The list goes on....
The crisis is of a complexity that few fathom and none can fix quickly and easily. It is the result of the cumulative effects of decades of policies, legislation and regulation. However, we must stop the bleeding quickly. The wound may or may not be fatal. It will take much more than a Band aid to fix. It will require major surgery and years of therapy.
Hopefully, Congress will buy us some time with the bailout in order for the surgeons to begin their work. The transfusions have been started but the surgery will be long. I pray that our leaders, such as Senator Cornyn (his thoughts here), will have the wisdom to steer us through the surgery and onto the path of recovery.
Friday, September 19, 2008
Palin's Style
Governor Palin's "style" is the subject of an article in the Washington Post. The title implies that the Governor is more attuned to the Public's will than to the machinations of government. Interestingly, the article attempts to subtly paint that attitude as a bad thing. It strikes me more as an "executive" thing. That's the way many executives work. They know where they need to go and they get there. They don't worry about "turf" or stepping on a few toes if those things are standing in the way of accomplishing what needs to happen. The article, which seems to paint Palin as someone who railroads her views, seems to me to bring out her executive qualifications -- one of those talking points that has many wagging their heads over her qualifications. But what do I know........I thought being attuned to the will of the people was a good thing.
Financial deja vu
Having come through the S&L crisis of the 80's and 90's, I find the current financial crisis to be extremely frustrating. One would have thought that we would learn from past mistakes but that doesn't seem to be the case.
The last crisis was closely correlated to oil prices -- as is this one. One of the differences is that last time interest rates were too high, this time they are too low. Last time, flexible rate loans caused borrowers to find themselves with payments beyond their ability to pay. This time, low interest rates allowed unqualified borrowers to get into homes they couldn't afford. The effect was the same. A glitch in the general economy suddenly meant that borrowers couldn't make their payments.
The biggest culprit in the mess is the government. By guaranteeing loans for borrowers with inadequate capital of their own to invest in real property, they set up a system for failure. The borrowers must share risk proportionately with lenders. When housing markets were soaring, the system worked. Housing markets always go through periodic deflation. It's part of the cyclical nature of markets. Cash-strapped borrowers defaulted. Lenders were burned.
Government interference in markets always inflates the cyclicity inherent to capitalism. If supply and demand were allowed to work, so would the market. Lenders would evaluate loans based on risk and reward. We would have fewer homeowners but we would have more savers.
We have pulled all available cash into the marketplace and created an economic bubble that must deflate. What we see today is a lot of air going out of that bubble. The big question is whether it will deflate slowly or pop suddenly. I fear that additional government interference in an effort to "salvage" the economy will only set us up for a greater fall. Let's take the hit, get the government out of the "guarantee" business and move on. It will hurt but will make our economy stronger in the long run.
One thing the government should do is to criminally prosecute Executives who receive "golden parachute" bonuses within a year of the failure of any publicly traded corporation. Those executives should be liable for double the value of any such bonuses or the liquidated value of all of their personal assets -- including homes and personal property. They should not be allowed to seek the shelter of bankruptcy. Any IRA or 401K assets should be included in the liquidation. They should have no protection whatsoever. Leave them penniless.
The last crisis was closely correlated to oil prices -- as is this one. One of the differences is that last time interest rates were too high, this time they are too low. Last time, flexible rate loans caused borrowers to find themselves with payments beyond their ability to pay. This time, low interest rates allowed unqualified borrowers to get into homes they couldn't afford. The effect was the same. A glitch in the general economy suddenly meant that borrowers couldn't make their payments.
The biggest culprit in the mess is the government. By guaranteeing loans for borrowers with inadequate capital of their own to invest in real property, they set up a system for failure. The borrowers must share risk proportionately with lenders. When housing markets were soaring, the system worked. Housing markets always go through periodic deflation. It's part of the cyclical nature of markets. Cash-strapped borrowers defaulted. Lenders were burned.
Government interference in markets always inflates the cyclicity inherent to capitalism. If supply and demand were allowed to work, so would the market. Lenders would evaluate loans based on risk and reward. We would have fewer homeowners but we would have more savers.
We have pulled all available cash into the marketplace and created an economic bubble that must deflate. What we see today is a lot of air going out of that bubble. The big question is whether it will deflate slowly or pop suddenly. I fear that additional government interference in an effort to "salvage" the economy will only set us up for a greater fall. Let's take the hit, get the government out of the "guarantee" business and move on. It will hurt but will make our economy stronger in the long run.
One thing the government should do is to criminally prosecute Executives who receive "golden parachute" bonuses within a year of the failure of any publicly traded corporation. Those executives should be liable for double the value of any such bonuses or the liquidated value of all of their personal assets -- including homes and personal property. They should not be allowed to seek the shelter of bankruptcy. Any IRA or 401K assets should be included in the liquidation. They should have no protection whatsoever. Leave them penniless.
Tuesday, September 16, 2008
Are Grizzlies Germain to the Reporter's Point?
It seems that no matter what type of article is being written, the reporter often tries to include his or her political views. The article linked here is ostensibly about the recovery of Grizzly Bears in Montana. However, the article attacks John McCain for a floor speech condemning "pork barrel" spending in which the study is mentioned as an example of poor use of taxpayer money. The expenditure of $4.8 million dollars for DNA testing hair samples collected from barbed-wire traps seems on the surface to be a prime example of pork-barrel spending. Without adequate explanation for why the study should be conducted, that would certainly seem to be the case.
When multiple items are rolled into -- or added on -- to a bill, it becomes difficult to truly debate the merits of each item. If the scope of bills could be narrowed to core issues, perhaps this problem could be resolved. There are rules concerning "germainness" of provisions that are supposed to keep the scope of a bill within the realm of its original purpose. It seems that such rules no longer work or are often ignored when it comes to what has come to be known as "pork-barrel" projects. The other issue is that if each item were considered singly, the number of bills before our legislative bodies would increase exponentially. These issues are part of what makes reform of the legislative process so difficult.
I guess this entry seems to be wandering around a bit. It is a circuitous path to this point: The reporter attacks McCain over an issue that is not the problem. It is reform of the legislative process that should have been attacked, not a Presidential candidate who the reporter obviously would like to see defeated.
Personally, I'm happy to know that the Grizzlies of Montana are recovering. I'm sure there is concern among the ranchers about detrimental impacts on their livestock. It is good to know that a higher number of bears may ease restrictions on oil and gas exploration. It is a multi-edged result from an apparent pork-barrel project that was poorly explained because of a legislative process in need of reform.
(The original news release from USGS can be found here.)
When multiple items are rolled into -- or added on -- to a bill, it becomes difficult to truly debate the merits of each item. If the scope of bills could be narrowed to core issues, perhaps this problem could be resolved. There are rules concerning "germainness" of provisions that are supposed to keep the scope of a bill within the realm of its original purpose. It seems that such rules no longer work or are often ignored when it comes to what has come to be known as "pork-barrel" projects. The other issue is that if each item were considered singly, the number of bills before our legislative bodies would increase exponentially. These issues are part of what makes reform of the legislative process so difficult.
I guess this entry seems to be wandering around a bit. It is a circuitous path to this point: The reporter attacks McCain over an issue that is not the problem. It is reform of the legislative process that should have been attacked, not a Presidential candidate who the reporter obviously would like to see defeated.
Personally, I'm happy to know that the Grizzlies of Montana are recovering. I'm sure there is concern among the ranchers about detrimental impacts on their livestock. It is good to know that a higher number of bears may ease restrictions on oil and gas exploration. It is a multi-edged result from an apparent pork-barrel project that was poorly explained because of a legislative process in need of reform.
(The original news release from USGS can be found here.)
Sunday, September 14, 2008
The "A" Team
OK. I know The Sun isn't known as a mainstream political authority, but after seeing this article linked on The Drudge Report, I had to post a link to it. The GOP's rock star VP candidate will reach across a lot more lines than people (especially the Dem's) anticipate. I think the futbol crowd wafting a draft in an English/Irish/Scottish/German, etc. pub will appreciate her as much as some of the folks in rural America. Senator McCain also should score well with the baseball crowd on this pick, it was certainly a home run.
There is even talk about a "coattail" effect from the McCain/Palin ticket on a number of House and Senate races. The only thing that surprises me is that no one has started calling them the "A" team. After all, one hails from Arizona and the other from Alaska. Hmm...sounds like a good title for this post.
There is even talk about a "coattail" effect from the McCain/Palin ticket on a number of House and Senate races. The only thing that surprises me is that no one has started calling them the "A" team. After all, one hails from Arizona and the other from Alaska. Hmm...sounds like a good title for this post.
Wednesday, September 10, 2008
Lipstick on a Pig
Was the Obama comment intentionally aimed at VP nominee Sarah Palin? That is the hot question of the day. I've given it some thought and come up with what I believe to be a likely scenario of how it came about.
Picture Obama on the plane with his advisors somewhere over the U.S. The candidate is somewhat downbeat because the latest polls show him losing ground. Why? they ask. The answer on everyone's lips -- Sarah Palin. Senator McCain's choice of runningmate totally blew away the Obama "play-it-safe-with-Joe Biden" strategy. What to do....
Advisor A: We've got to attack. We've got to discredit Palin.
Advisor B: We've got to be careful. If we're too harsh, we will alienate the women voters. Besides, you can't go after Palin, it would look bad. You have to focus on McCain -- he's the nominee, she's just his running mate. We can't even bring up her name or it will hurt you. Leave that to Joe.
Obama: We need to use humor -- be subtle -- that's how she attacked me! I don't like it. I want to go after her, she's the real threat.
Advisor A: What about that "lipstick on a pig" thing you've done before?
(Obama chuckles.)
Advisor B: It's too risky -- that thing could backfire on you if it isn't delivered just right -- I don't think you should go there. Use the fish thing we wrote on McCain but stay away from Palin.
Obama: I think I can do it. Hey, the people love me. They'll just laugh. Humor is a good thing -- look what it did for her speech. It wasn't even scripted.
Advisor B: I really don't think you need to use it. If it comes off wrong they'll crucify you.
Advisor A: I agree. You could probably do it if anybody could, but there's a lot of risk.
Obama: OK. I think you're wrong but that's why I hired you.
In the heat of the speech, with the crowd hanging on his every word, the "thinks-he's-great" communicator becomes overconfident. He thinks, "she went off the script -- I can do it too -- they love me!"
He hesitates, he grins, he says, "You know, you can put lipstick on a pig...."
You know the rest of the story.
Presidential qualities? I don't think so.
Picture Obama on the plane with his advisors somewhere over the U.S. The candidate is somewhat downbeat because the latest polls show him losing ground. Why? they ask. The answer on everyone's lips -- Sarah Palin. Senator McCain's choice of runningmate totally blew away the Obama "play-it-safe-with-Joe Biden" strategy. What to do....
Advisor A: We've got to attack. We've got to discredit Palin.
Advisor B: We've got to be careful. If we're too harsh, we will alienate the women voters. Besides, you can't go after Palin, it would look bad. You have to focus on McCain -- he's the nominee, she's just his running mate. We can't even bring up her name or it will hurt you. Leave that to Joe.
Obama: We need to use humor -- be subtle -- that's how she attacked me! I don't like it. I want to go after her, she's the real threat.
Advisor A: What about that "lipstick on a pig" thing you've done before?
(Obama chuckles.)
Advisor B: It's too risky -- that thing could backfire on you if it isn't delivered just right -- I don't think you should go there. Use the fish thing we wrote on McCain but stay away from Palin.
Obama: I think I can do it. Hey, the people love me. They'll just laugh. Humor is a good thing -- look what it did for her speech. It wasn't even scripted.
Advisor B: I really don't think you need to use it. If it comes off wrong they'll crucify you.
Advisor A: I agree. You could probably do it if anybody could, but there's a lot of risk.
Obama: OK. I think you're wrong but that's why I hired you.
In the heat of the speech, with the crowd hanging on his every word, the "thinks-he's-great" communicator becomes overconfident. He thinks, "she went off the script -- I can do it too -- they love me!"
He hesitates, he grins, he says, "You know, you can put lipstick on a pig...."
You know the rest of the story.
Presidential qualities? I don't think so.
Tuesday, September 9, 2008
Small Towns and Alaskan Governors
Our local newspaper had an interesting article this week about Sarah Palin. You can view it here. It just happens that a member of the staff once worked at a newspaper in Juneau, Alaska, and had the opportunity to interview then Governor Palin.
Education and Immigration Issues in Texas Senate Race
The Texas Senate race pitting incumbent John Cornyn against Rick Noriega has had a number of interesting chapters. Most of them emphasize the fact that Noriega is a little confused in his offered solutions. The newest proposal by Noriega concerning education reform is full of contradictory statements and vague plans -- especially in regard to education for the children of undocumented immigrants. According to an article in the Houston Chronicle, Noriega believes the state should pick up the tab for educating those children which are a result of federal border policy, yet has no idea what that cost would be. He also calls for ending unfunded mandates from Washington, presumably because of the cost to Texas taxpayers, and yet those unfunded mandates are what cause the state to be required to pick up the tab on undocumented immigrant children in the first place. Senator Cornyn on the other hand, would like to see the federal government pick up the tab for their mandate.
The real issue though, is the irresponsible way Noriega proposes sweeping changes without an estimate at least, of the cost to Texas taxpayers. You would think that a current state legislator would have a better grasp on what it takes to educate our children. How can he possibly expect to gain the trust of the voters of Texas when he seems clueless on one of the most basic issues of concern to Texans?
The real issue though, is the irresponsible way Noriega proposes sweeping changes without an estimate at least, of the cost to Texas taxpayers. You would think that a current state legislator would have a better grasp on what it takes to educate our children. How can he possibly expect to gain the trust of the voters of Texas when he seems clueless on one of the most basic issues of concern to Texans?
Presidential Polling Shifts
Are the polls correct? It is sometimes difficult to trust polling results because the questions always reflect the bias of the poll creator. However, in the last few days we have seen multiple articles concerning significant shifts in poll results from Obama to McCain -- especially among women and independents. I doubt that all of the polls are wrong...
Monday, September 8, 2008
Random Thoughts on the Election
As time goes by, we will learn more and more about the amazing story of GOP Vice Presidential nominee, Sarah Palin. The story of the Palin's son Trig is itself a tribute to their beliefs, their ethics and their values.
I have not posted directly on Senator McCain's speech last Thursday evening to the RNC. I thought it was an excellent speech. It was a little slow taking off -- even appeared to be formulaic and safe -- until near the end. I think we saw the man's heart. I believe that we saw a man who is focused on service. It is easy to be cynical and think that every candidate for the highest office in the land is only looking at the power. I don't believe that's the case with John McCain. I am certain that he can be tough, driven and difficult, but I think that deep down it is fueled by a desire to serve his country.
It is time for change in Washington. It is time to get away from politics as usual and tackle the challenges that we are facing. We must tame the energy beast and wean ourselves from economic control of our energy by foreign powers that are not working in our best interests. It is time to trim the federal budget and focus on what government was designed to do rather than making it bigger in an attempt to do all things for all people -- either through misplaced idealism or through the desire to "repay" favors from special interest groups or voter groups. We don't need the bigger government that the Dem's are promising. We need to re-focus our government leaders and bureaucrats on serving the people and not themselves. I believe the McCain/Palin ticket will at least make a valiant attempt to do so. Whether they can overcome the Washington Establishment is a different prospect altogether. At least, they are unlikely to contribute to the explosive growth that is the likely outcome if Obama/Biden should win.
I have not posted directly on Senator McCain's speech last Thursday evening to the RNC. I thought it was an excellent speech. It was a little slow taking off -- even appeared to be formulaic and safe -- until near the end. I think we saw the man's heart. I believe that we saw a man who is focused on service. It is easy to be cynical and think that every candidate for the highest office in the land is only looking at the power. I don't believe that's the case with John McCain. I am certain that he can be tough, driven and difficult, but I think that deep down it is fueled by a desire to serve his country.
It is time for change in Washington. It is time to get away from politics as usual and tackle the challenges that we are facing. We must tame the energy beast and wean ourselves from economic control of our energy by foreign powers that are not working in our best interests. It is time to trim the federal budget and focus on what government was designed to do rather than making it bigger in an attempt to do all things for all people -- either through misplaced idealism or through the desire to "repay" favors from special interest groups or voter groups. We don't need the bigger government that the Dem's are promising. We need to re-focus our government leaders and bureaucrats on serving the people and not themselves. I believe the McCain/Palin ticket will at least make a valiant attempt to do so. Whether they can overcome the Washington Establishment is a different prospect altogether. At least, they are unlikely to contribute to the explosive growth that is the likely outcome if Obama/Biden should win.
Sunday, September 7, 2008
God and Country/Maverick and Barracuda
The last few days I've thought a good bit about Sarah Palin as the VP running mate of Senator John McCain. The choice by Senator McCain was brilliant. It countered the age issue. It showed that the GOP's believes women can do any job. It brought Executive experience. It focused on energy. It highlights marriage and family. It is pro-life. It is about doing the right thing. It says, "we're coming after the good-ol-boy, get-nothing-accomplished, power politics as usual crowd."
On a side note: The media has blasted Governor Palin for not "staying home" with her children. It crossed my mind that they are saying her husband Todd can't handle things at home. That's about as sexist as it can get. The Democrats are saying that men can't be good parents.
I hope the Dem's have met their match. God and country, The Maverick and The Barracuda. Great ticket.
On a side note: The media has blasted Governor Palin for not "staying home" with her children. It crossed my mind that they are saying her husband Todd can't handle things at home. That's about as sexist as it can get. The Democrats are saying that men can't be good parents.
I hope the Dem's have met their match. God and country, The Maverick and The Barracuda. Great ticket.
Wednesday, September 3, 2008
Sarah "Barracuda" Palin
OK, the title to this post might be a little extreme but it's meant as a compliment. I just watched her speech. She did a superb job. My take-home points:
"To the media -- I'm not going to Washington to seek their good opinion, I'm going to serve the American people."
"...integrity, good will, convictions and a servant's heart..."
"...put the government on the side of the people...put the jet on E-bay..."
"The American Presidency is not supposed to be a journey of personal discovery."
Impressive.
"To the media -- I'm not going to Washington to seek their good opinion, I'm going to serve the American people."
"...integrity, good will, convictions and a servant's heart..."
"...put the government on the side of the people...put the jet on E-bay..."
"The American Presidency is not supposed to be a journey of personal discovery."
Impressive.
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