Government To The Extreme

What do you call it when the government goes into a business and resets all the salaries for you, even if you already have contractual obligations that you have committed to? It certainly isn't the form of government our Constitution was crafted for. In fact, it sounds downright...hmmm....what's the word I'm looking for? Starts with a C or maybe an F? Oh, well. I'm sure it'll come to me soon enough. Whatever it is, it's certainly being embraced by the Democrat majority in Washington, led by the Spitter in Chief, Barney Frank. They're actually planning on going into private companies and setting the salaries themselves, from top to bottom. The government will now determine what employees should be paid.

But now, in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees -- not just top executives -- of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies.

The purpose of the legislation is to "prohibit unreasonable and excessive compensation and compensation not based on performance standards," according to the bill's language. That includes regular pay, bonuses -- everything -- paid to employees of companies in whom the government has a capital stake, including those that have received funds through the Troubled Assets Relief Program, or TARP, as well as Fannie Mae and Freddie Mac.

The measure is not limited just to those firms that received the largest sums of money, or just to the top 25 or 50 executives of those companies. It applies to all employees of all companies involved, for as long as the government is invested. And it would not only apply going forward, but also retroactively to existing contracts and pay arrangements of institutions that have already received funds.

In addition, the bill gives Geithner the authority to decide what pay is "unreasonable" or "excessive." And it directs the Treasury Department to come up with a method to evaluate "the performance of the individual executive or employee to whom the payment relates."

The bill passed the Financial Services Committee last week, 38 to 22, on a nearly party-line vote. (All Democrats voted for it, and all Republicans, with the exception of Reps. Ed Royce of California and Walter Jones of North Carolina, voted against it.)

Any bets that this abomination passes and gets signed into law by the Great Leader? He's already made steps to take over other industries. It's that kind of world now, not one to be proud of. And these people wonder why guns and ammo are flying off the shelves.

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Barney Frank, Libertarian, News, Obama

Refund ALL The AIG Bonuses

There's quite a foofaraw going on right now over the employee bonuses that AIG is contractually obligated to pay out. I must say that they everyone who's received funding from AIG should be obligated to return those funds. Let's start with the politicians in D.C. before we even get to the AIG employees, shall we? If anyone needs to see who is truly responsible for the current misdirection it is none other than Chris Dodd, AIG's #1 recipient of funds and crafter of the bailout. Pshew...what's that smell?

Name Office Total Contributions
Dodd, Chris (D-CT) Senate $103,100
Obama, Barack (D-IL) Senate $101,332
McCain, John (R-AZ) Senate $59,499
Clinton, Hillary (D-NY) Senate $35,965
Baucus, Max (D-MT) Senate $24,750
Romney, Mitt (R) Pres $20,850
Biden, Joseph (D-DE) Senate $19,975
Larson, John B (D-CT) House $19,750
Sununu, John E (R-NH) Senate $18,500
Giuliani, Rudolph W (R) Pres $13,200
Kanjorski, Paul E (D-PA) House $12,000
Durbin, Dick (D-IL) Senate $11,000
Perlmutter, Edwin G (D-CO) House $10,500
Rangel, Charles B (D-NY) House $9,000
Edwards, John (D) Pres $7,850
Corker, Bob (R-TN) Senate $7,400
Smith, Chris (R-NJ) House $6,900
Neal, Richard E (D-MA) House $6,500
Rockefeller, Jay (D-WV) Senate $6,500
Reed, Jack (D-RI) Senate $6,000
Udall, Mark (D-CO) House $5,800
Maffei, Dan (D-NY) House $5,000
Nelson, Bill (D-FL) Senate $5,000
Warner, Mark (D-VA) Senate $5,000

And that's just the folks who took over $5K. Seems like there should be a lot of folks refunding money to AIG, if there weren't so many hypocrits in D.C. Apparently, no-one in D.C. can even stay bought these days. Guess there really isn't any honour or loyalty amongst thieves.

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AIG, Democrats, Bailout, Libertarian

Bailout Redux

With a deadline looming for their restructuring plans GM is waving the bankruptcy flag again.

General Motors Corp (GM.N: Quote, Profile, Research), nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Citing "people familiar with the matter," the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

Considering that the UAW just walked out on their talks with GM, my guess is that they'll head back to Capitol Hill for another feeding session at the trough. I don't think that the Beltway Boys and Girls are going to let them declare bankruptcy. After all, "something has to be done" is their mantra these days. It would be nice if they'd just back away and let the market work out the way it's supposed to. This country has bankruptcy laws for a reason, let's let them work this time around, instead of throwing more taxpayer dollars at the problem and piling on the debt. And, while we're at it let's obey the Constitution limits that are supposedly in place. I can't find anything in it that says the government is authorised to bail out failed companies with money they took from us.

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News, Libertarian, GM, Bailout

Clear And Present Danger?

So, it appears that our Glorious Leader truly wants his "stimulus package" to go through, no matter how pork laden it is. He's even gone out of his way to address the issue in the Washington Post with an article on it which is filled with scaremongering. That's a big play to make this early in his tenure.

Because each day we wait to begin the work of turning our economy around, more people lose their jobs, their savings and their homes. And if nothing is done, this recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse.

The only problem is that his bill is laden with pork to the tune of a trillion dollars and more is being added every minute. Millions for the arts, billions for failed education policies and billions for projects that are nothing more than long ignored earmarks. And it will all be for naught as this is highly unlikely to work as he would have it. The only job growth we will see will be in the area of government and socialism, cancerous growths we can do without.

I would say that you should contact your Senators, (as I did) and demand that they vote No on this boondoggle. Unfortunately, it is likely to make no difference in how they will vote. They no longer care what you think and will either vote a party line or vote against what the majority of their constituents demand. Representative government has become a myth, one which we cling to in vain hope.

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Obama, Politics, News, Stimulus

The Kings Largess

Just when we thought the tax slaves in the US would catch a break, after the Senate refused to acquiesce to the demands of the Big 3, comes late breaking word that King George may just go ahead and grant them the money anyway. Here we have yet another sign that the Republic is, if not dead, dying. The representatives of the people spoke, after hearing from the masses that there should be no further bailouts and now it looks as if the royal treasury will be tapped anyway to feed the rapacious unions that have successfully run the auto industry into the ground.

WASHINGTON (AP) — Under mounting pressure to act, the Bush administration said Friday it was ready to step in and prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by the White House and congressional Democrats. The most obvious source of help was the Wall Street bailout fund.

"The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry," White House press secretary Dana Perino said.

Treasury spokeswoman Brookly McLaughlin said, "Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry."

It is not the place of the Imperial Presidency or Congress to save every failing company. The airlines were allowed to fall into bankruptcy and restructure. They've managed to come out just fine. Allowing the market to work is what we want, not more debt piled atop the trillions of debt already accrued.

What will it take till the powers that be realise that the mechanisms are in place to insure an orderly restructuring of the auto industry? It's called bankruptcy and, if it's allowed to work the auto industry will be better off than if they are nationalised. His Majesty the King needs to be reminded that he works for "We The People", not for industry or special interests or unions. Especially, unions. This country threw off the yoke of one king. We did not do so in order to be saddled with another. George Bush said, in the past, that he believed in the free market. It's long past the time he stepped up and put words into action. Or inaction, as the case may be.

Technorati Tags:
Bailout, Politics, George Bush, Big 3

Just Say No

As a parent I am often faced with the onerous task of telling my children no, for one reason or another. It's sometimes a necessity that all parents are familiar with, because we wish to preserve the lives and limbs of our charges. What surprises me these days is that so many of the people in Washington, (many of whom are parents) forget to say no when "adults" show up at their doors after engaging in behaviours that have led them to ruin. I doubt many of us would say yes to an alcoholic or drug addict when they asked for a fix, so why do politicians "have" to say yes when companies addicted to bad habits come begging for a fix from the "lender of last resort"?

The latest to put out the begging bowl are the "Big Three" auto makers from Detroit. This is not the newest of stories, since they were just there a couple of weeks ago. What is new is that they are now asking for much more money than before.

The heads of struggling auto giants General Motors, Ford, and Chrysler reappeared on the Hill yesterday to make their case anew. This time, they came more prepared. The most ambitious business plan proposed was by General Motors, the world's largest auto company, currently teetering on the verge of collapse. It set out a plan to recapture revenue through deep cuts—including slashing 20 percent of its jobs, shutting nine factories, and trying to reduce pay through talks with the United Automobile Workers union.

Along with a more structured plan, however, the Big 3 also had an even bigger request: $34 billion in loans, compared with the $25 billion they'd asked for two weeks ago.

Talk about chutzpah.No doubt the Democrats and their buddies across the aisle are more than willing to add them to the $8.5 trillion dollar plan, after all what's a few measly billion when we're already in the trillions, right? Well, the time has come to just say no.

It might sound cruel and the repercussions may be grave, but the precedent a bailout would set would be vastly worse. Despite Nancy Pelosi's cries that bankruptcy is not an option, the facts speak louder than her political grandstanding. This country cannot afford to continue bailing out companies in distress, unless we wish to end up like Zimbabwe or the Weimar Republic. Allowing the Big 3 to file bankruptcy is the only solution sane people can accept. It worked for the airlines, it will certainly work for Detroit. Continuing to throw money at things will not make the situation better, (as we have seen with the banks and their "lending crisis").

The American auto industry has been, and will continue to be hampered by government, not aided. Any funds that come from the Congress will be attended by more stringent regulations, defacto nationalisation and an acceptance of fraudulent environmental rules that will insure the continued failure to compete. There is no aid to be found in Washington. At least bankruptcy will allow them to be rid of the onerous UAW contracts weighting them down and will allow them the time to restructure in a rational manner. If one of them cannot find its way back to solvency, then so be it. That's the harsh reality of a free market.

Ford could make their way back in time. They already offer a host of vehicles in their overseas markets which are soundly embraced by countries that always have gasoline over $5 a gallon. For some reason they have refused to embrace the same strategies for their US customers, as they do for their European and Asian bases. How many Americans would buy a car that got more than 65 MPG? I bet it would be a rather high number. Ford makes just such a vehicle, the Ford Fiesta Econetic, rated as a winning "green car". Too bad that the US government, and their global warming fascists, make it so hard to sell a clean diesel in this country that Ford can't or won't, sell it here. Even with artificially inflated diesel prices the car would save a driver loads of money in the long run. And, unlike hybrids, it's not a scam where cleanliness is concerned. Making vehicles like this is what would turn the tables for Detroit, not the bogus plans they are presenting to the Beltway Boys. No matter what plans they put forth, it will be too little.

It's time for the Washington crew to start saying no. Yes, the impact on Detroit and other auto states will be considerable. Indiana has something like 60,000 auto industry related jobs that would no doubt be affected. It would be a serious blow to the state government, which is already facing an unemployment insurance insolvency and the taxpayers, who would undoubtedly be called upon to foot the inevitable tax increases, but saying yes to any further bailouts would be much worse in the long run. We have to stop adding to the debt. Especially with the states now lining up for their slice of the bailout pie. It has to stop somewhere, let it begin here.

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Bailout, Detroit, Politics, Libertarian, Debt, Automakers

The $2 Trillion Bailout

I'm pretty sure that we're all familiar with the Wall Street Bailout by now. Many of us took the time and effort to contact "our" Congressional members and express our opinion on their actions, either for or against. Many folks have the idea that the $800 Billion+ bill that was passed was somehow the end of the matter. Shoot, the tally isn't even that low, we could only wish for it to be in that range. Nope. Congress, the Treasury and the Bush White House have saddled up with a new debt that is looking to be over $2 Trillion dollars, since this whole Wall Street debacle started.

From Reuters:

* Up to $50 billion from the Great Depression-era Exchange Stabilization Fund to guarantee principal in money market mutual funds to provide the same confidence that consumers have in federally insured bank deposits.

* The Fed committed to make unspecified discount window loans to financial institutions to finance the purchase of assets from money market funds to aid redemptions.

* At least $10 billion in Treasury direct purchases of mortgage-backed securities in September. In doubling the program on Friday, the Treasury said it may purchase even more in the months ahead.

* Up to $144 billion in additional MBS purchases by Fannie Mae and Freddie Mac. The Treasury announced they would increase purchases up to their newly expanded investment portfolio limits of $850 billion each. On July 30, the Fannie portfolio stood at $758.1 billion with Freddie's at $798.2 billion.

* $85 billion loan for AIG, which would give the Federal government a 79.9 percent stake and avoid a bankruptcy filing for the embattled insurer. AIG management will be dismissed.

* At least $87 billion in repayments to JPMorgan Chase & Co for providing financing to underpin trades with units of bankrupt investment bank Lehman Brothers Holdings, Inc. U.S. Treasury Secretary Henry Paulson said over the weekend he was adamant that public funds not be used to rescue the firm.

* $200 billion for Fannie Mae and Freddie Mac. The Treasury will inject up to $100 billion into each institution by purchasing preferred stock to shore up their capital as needed. The deal puts the two housing finance firms under government control.

* $300 billion for the Federal Housing Administration to refinance failing mortgage into new, reduced-principal loans with a federal guarantee, passed as part of a broad housing rescue bill.

* $4 billion in grants to local communities to help them buy and repair homes abandoned due to mortgage foreclosures.

* $29 billion in financing for JPMorgan Chase's government-brokered buyout of Bear Stearns & Co in March. The Fed agreed to take $30 billion in questionable Bear assets as collateral, making JPMorgan liable for the first $1 billion in losses, while agreeing to shoulder any further losses.

* At least $200 billion of currently outstanding loans to banks issued through the Fed's Term Auction Facility, which was recently expanded to allow for longer loans of 84 days alongside the previous 28-day credits.

Add in the over $800 Billion they saddled us with the other day and we're looking at some serious money. About $18,000 per household, in the US. That doesn't even include the current national debt or the numerous unfunded mandates and programs like Medicare and Social Security. Also add in the fact that California is also lining up at the trough to be bailed out, too. Yep, they've really done us in this time and they'll likely be back real soon for more. We're going to be on the hook for many, many trillions of dollars, down the road. Our childrens chilren will still be paying for the things that today's politicians have wrought.

Their bailout plan isn't even likely to do what they intend for it to do, but we'll still be handed the bill. Socialism will be rammed down our throats and whomever is elected will likely make it worse. So hold onto your hats, folks. Your wallets are already gone and everything else is swirling towards the toilet. We can thank "our" politicians for what's coming at us. Their years of fiscal irresponsibility will come home to roost at our houses, they will shield themselves, as they are currently doing, within their halls of power. Serfdom has reared its ugly head, once again.

Technorati Tags:
Bailout, Politics, Libertarian