Health Care Mirage

Unfortunately, due to arrogant elected officials, who shoved down the throat of the American people a take over of one sixth of the American economy without one Republican vote, and the inability to accurately interpret the Constitution by Chief Justice John Roberts, we are likely stuck with The Affordable Health Care Act, or Obamacare.

The roll out of Obamacare is running into all sorts of issues, inclusive of much higher than anticipated costs, increased regulation and difficulties in implementation.  The architects of the Health Care Act, written before Obama got elected by The Tides Foundation, know exactly what the future holds with respect to the plan.  The majority of the politicians, who never read the bill, are useful idiots playing the political game.

And of course, there is the extreme propaganda of false, incorrect and deceitful information the American people were handed by the politicians who supported the effort. 

*Premiums will fall
*No Death Panels (Sarah Palin was correct as usual)
*You can keep your Doctor

Perhaps the most deliberate omission in the description presented the American people was that, although the ACA itself is not a single payer plan, it was a necessary stepping stone, or trojan horse, because the architects deemed jumping to a single payer plan would be met with anticipated public disapproval.  The people must be nudged that direction over time, with the elimination of choice, and freedom, along the way.  Make no mistake, a single payer plan is the ultimate objective, although the mainstream media did their best to conceal it.

However, many have publicly stated the intentions, including former Senator Barney Frank (D:MA)and former Speaker of the House Nancy Pelosi (D:CA).  Rep. Jan Schakowsky (D:CA), not only admitted to the ACA being a precursor to a single payer plan, but gleefully spoke of her intention to destroy a private sector industry.  Imagine the arrogance.

Over at Verum Serum, Robert J. Samuelson has a great piece on the public plan mirage, although it fails to examine the extension beyond health care.  For example, as an investor in capital markets and real property, I found particularly interesting the portion of the health care bill that hits capital gains and real estate with an investment income tax of 3.8%. 

How does capital gains on investments or real estate relate to health care?  Well, obviously, it is not about health care.

As Ronald Reagan warned us back in 1961, a government method to impose socialism or statism on the people is through socialized medicine as a vehicle for increased taxation, regulation, surveillance and control. 



Secretary of Health and Human Services Kathleen Sebelius really insulted the intelligence of the American people this week when she opined that the implementation of the law was much more difficult than previously thought.

“Probably no one fully anticipated when you have a law that phases in over time, how much confusion that creates for a lot of people. So that has been difficult,” Sebelius said. “When the law was signed and people immediately did not get affordable health insurance, they were surprised and a lot were disappointed but now understand that this was a gradual phase-in.”

Really? Who is she trying to kid? 

The planners recognize that most Americans do not follow closely enough to decipher the lies being told them on a consistent basis, not to mention changes to the language, and therefore are not privy to the inside baseball of the plan.  Since when are revenues tax increases?

Those of us who understand free markets and the importance of individual choice knew full well what a monstrosity of misery the law would be. We also understood the false premise the whole movement was based upon.  Charts like the one presented below would have been pure comedy if it were not sadly real and poised to wreak havoc on our liberties.

 

Unfortunately, the more the planners plan the more the plans fail. Governments don't tax to get the money they need but find needs for the money they get.  Every area of freedom will be invaded by the tentacles of bills of this nature, and with each victory the progressive elite planners achieve, the more freedom we the people lose.

Information Misrepresentation: Appraisals

Information presented to the Public by various outlets is being crafted to misrepresent reality in an effort to skew political thinking, gain economic advantage and nudge social justice further down the American psyche. This is the first in a series of blog posts detailing instances in this regard, as it is imperative the Public recognize the significant level of misrepresentation and how vast the manipulation is.

Information Misrepresentation: Appraisals

The National Association of Home Builders (NAHB) reported this week one out of every three of its builder members has lost a sale during the last six months because of home values reported by appraisers.

NAHB Chairman Bob Nielson said, "The inappropriate use of distressed and foreclosed sales as comparables in determining new home values is needlessly driving down home prices, killing home sales, causing more workers to lose their jobs and delaying a housing and economic recovery."

The NAHB did not stop there, further hammering appraisers with the following:

* According the Association, appraisers are using "faulty" practices by utilizing distressed homes as potential comparable sales against new homes. Mr Nielson said in a statement that "This is not only unfair and unreasonable, but it perpetuates the cycle of declining home values, drives more home owners underwater, harms local economic activity and acts as an obstacle to the recovery of the housing market."

* Mr Nielson notes that in many cases, new home appraisals are coming in below the cost of construction, because of flawed appraisals for utilizing existing and potentially distressed homes.

* Per the NAHB, These appraisal practices are a major contributing factor to the current acquisition, development and construction (AD&C) lending crisis that has choked off credit for home builders and threatens to prolong the current housing downturn. Falling appraised values for land and subdivisions under development have led some financial institutions to stop lending to developers and builders, to demand additional equity and even to call performing loans.

* The NAHB has been having summits, with leaders throughout the housing industry in an effort to find solutions that will allow appraisers to develop realistic valuations based on sales that are truly comparable.

Mr Nielson and the NAHB concludes that, you guessed it, “Major reforms in appraisal practices and oversight are needed to ensure that appraisals accurately reflect true market values and don’t contribute to price volatility or harm aspiring home owners and move-up buyers.”

One thing I know from the real estate world: It is always the appraisers fault. NOT! What we do have from the NAHB is information misrepresentation.

This must have been some series of summits. A bunch of bureaucrats gathered together to central plan the housing recovery, culminating in the one thing we need less, not more, of; additional regulations.

If additional regulations were the answer, the sweeping regulatory action spearheaded by former HUD Secretary and Architect of Ruin Andrew Cuomo, The Home Valuation Code of Conduct (HVCC), would have done the trick. Instead, it has wrecked the appraisal industry, leaving unregulated Appraisal Management Companies to coordinate, and in many cases dictate, appraisal performance.

Since distressed properties make up approximately 65% of the market here in Florida, it would be highly inappropriate to fail to consider these as potential comparable sales, provided the gross living area, age, amenities, and, of course, condition, were reasonably similar.

By applying political pressure to "develop realistic valuations," made as instructed will become a reality and as a result, valuations will be lacking in adequate support and accurate value.

Appraisal practices, as governed by the Uniform Standards of Appraisal Practice (USPAP), provide a framework for appraisers nationwide to adhere to in an effort to provide consistent and accurate valuation through the three approaches to value. These voluminous guidelines are a contributing factor to providing the industry with appraisal reports arriving at well supported value indications , not further deteriorating the housing crisis as the NAHB says.

Conspicuously absent from the many factors cited by the NAHB for the continued downward pressure on the housing market are the actions of the Obama administration. It is well documented that the origins of the collapse centered around the governments efforts to provide housing to buyers the marketplace weeded out. These potential buyers were not weeded out due to race, as ACORN would have you believe, but due to the higher risk associated with their ability to repay the loan. Before political correctness ran amok, his used to be referred to as sound business practice.

Among those applying pressure to the banks in the form of threatening race related boycotts was a young attorney for ACORN, Barack Obama.

While George Bush made failed attempts at forcing Congress to rein in the Government Sponsored Entities known as Fannie Mae and Freddie Mac, under House Finance Chairman Barney Frank, the Congress looked the other way.

Meanwhile, instead of letting the market cleanse itself, the administration has invented program after program to reward bad behavior and prop up the values of housing, which has only prolonged the pain and the problem. Government, who cannot be trusted, should leave the housing marketplace and let the free market establish a base for prices. In fact, we now learn the housing numbers have astonishingly been inflated.

Housing is not the only place numbers are inflated. Government spending, regulation and taxation is what is crushing the job market, with unemployment actually around 12% rather than the reported 8.6%, and for buyers to feel comfortable making large purchases in the form of housing, the job market needs to be at worst steady. Under this administration, there is no job creation, debt is expanding exponentially and Americans are in fear for the future.

Until jobs can be created in large numbers and the government diminishes involvement in what should be private sector activity, continued negative pressure on the housing market and America will remain.

As Ronald Reagan accurately said, "Government is not the solution to the problem, government is the problem."

Jail The Looters

In the aftermath of the greatest financial crisis in a half century, progressives who seek additional governmental control jumped at the chance to increase financial regulatory instruments. Never let a crisis go to waste, you will recall.

Charged with crafting such policy were two Congressional members, both of whom should be investigated for their role in the collapse, Senator Barney Frank, D:MA and Congressman Chris Dodd, D:CT. Exactly what our corrupt government needed, inmates running the asylum.

With the Democrats holding super majorities in both Houses, the Dodd-Frank Bill became law. The basic purpose of the law is to prohibit fraud and chicanery in the financial system.

Someone forgot to tell former New Jersey Governor Jon Corzine, who was recently under consideration by the Obama administration as a potential successor to Treasury Secretary Timothy Geithner. After losing the governors race, Corzine, a Democrat, became Chairman of MF Global, and under his leadership, the company has filed for bankruptcy and is the subject of an FBI investigation. In short, the money is missing.

Bart Chilton, CFTC Commissioner who is on the circuit promoting his new book Ponzimonium, chats with The Squawk Box Crew; Becky Quick, Andrew Ross Sorkin and Joe Kernen, and guest host Mario Gabelli, on the recent increase of Ponzi Schemes and the goings on at MF Global. Take a listen:

The situation over at MF Global is very troubling and funds cannot be properly accounted for. Many investors appear out a lot of money, including Trends Research founder Gerald Celente, whose gold has seemingly turned to dust. The company cannot make investors whole, and Chilton says it is "suspicious as heck".

It should noted that existing regulatory agencies and the new far reaching Dodd-Frank bill, a job killing beast smothering business, failed miserably to prohibit Corzine and this group from crashing to bankruptcy, allegedly for the misappropriation of funds.

Remember in "Its A Wonderful Life" when the money went missing. George Bailey, upset with Uncle Billy, angrily quipped 'someone is going to jail, and it ain't gonna me me". Well, back in the day, folks did go to Sing Sing when money went missing.

It will be interesting to see, provided the allegations result in malfeasance and charges, if Democrat darling Corzine is prosecuted to the fullest extent of the law. You know how George Bailey would feel about it, but good guys are not winning these days.

Crazy 8 Voting Guide

The November mid term election is fast approaching, and polling evidence suggests a significant victory by the Republicans, as well it should given the calamity caused by the Democratic Congress and the Socialist in Chief.

I have already proclaimed I will not be supporting any Democratic candidates. However, given my vast readership all across the fruited plain, I felt compelled to issue a voters guide, highlighting in no particular order eight individuals that in no way deserve your vote. No need to consult your Magic 8 ball, just read on.

California's Barbara Boxer.

Among the most arrogant moon bat leftists around, Boxer harbors a complete disdain for the US military, as do most on the left. An exchange Boxer had with Brigadier General Micheal Walsh earlier this year should give clear indication that even if you subscribe to her positions, you cannot allow this level of arrogance to have governing power: Please review:



Connecticut's Richard Bluementhal.

Not only did this guy lie repeatedly about his military service before being caught, as AG of Connecticut he launched a government assault on AIG workers, without being able to cite under which law he had the power to act. Again, the lack principles that would allow an acting attorney general to act without understanding his governing authority displays an incompetent official drunk on his power. An interview with Glenn Beck is simply astonishing:


New York's Andrew Cuomo.

I could go on for days about this individual. As NY AG Cuomo felt compelled to act in response to the national housing crisis by spearheading the HVCC Home Code of Conduct, which has destroyed the residential real estate appraisal business. Even CNBC's Jim Cramer sounded the alarm about Cuomo's activities in 2007. That Cuomo got the political establishment behind him on this is mind boggling, since, as outlined by Doug Ross in an outstanding compilation of Cuomo's history titled "The Architect of Ruin", Cuomo was a central player in causing the housing crisis. After reading the piece, no sane individual could cast a ballot for him, no matter how crazy Carl Paladino may or may not be. Curtis Sliwa, in very entertaining fashion, throws Cuomo under the bus. Here is Cuomo and HUD Secretary is his own words detailing his involvement in the sub prime crisis.


Nevada Senator Harry Reid.

Nevada is in dire straits as the housing crisis has decimated the state. Meanwhile, as Senate Majority Leader, Reid has been a vocal supporter and leader of the implementation of the socialistic transformation of America under President Obama. During the Bush Administration, this disgraceful idiot found time to degrade our troops, incorrectly call the surge a failure and throw in the towel in the war in Iraq. In his own words:



New York's Charlie Rangel.

For a guy who helped write the tax code, it seems implausible he forgot to pay taxes on several real estate properties he forgot he owned. I own residential real estate properties and would be in the gray bar hotel if I played that game. In yet another sickening display of arrogance, Rangel thinks the rules do not apply to him and is quite content gaming the system in his favor. As if that is not bad enough, his attitude when confronted on these subjects is not becoming a representative of this country. In his own words:



Massachusetts Democratic Congressman Barney Frank.

Perhaps the individual most responsible for the housing crisis is Barney Frank. As Chairman of the House Banking Committee, Frank oversaw the government sponsored entities Fannie Mae and Freddie Mac. Continuously over the last decade, Frank publicly championed the accomplishments for Fannie & Freddie repeatedly, all the while they were imploding. Since i think we can conclude Frank is not incompetent, one has to wonder if he and his counterpart, Senator Chris Dodd (D:CT), should be in federal lockup. The scandal ridden Frank must be sent packing. Frank's opponent, Sean Bielat, put out this outstanding ad highlighting the timeline:



Florida's Charlie Crist.

I voted for Charlie Crist, a Republican, for Governor of Florida. Since his election, a troubling trend of trolling for advancement became apparent as he positioned himself aboard the John McCain bandwagon hoping for the VP slot. Crist, behind his enthusiastic support of McCain, helped the Maverick gain a surprising win in Florida, an unfortunate development in the Florida primary. After the victory of Obama, Crist then openly began supporting Obama policies, most notably the stimulus package, and announced his run for the US Senate. Crist, getting crushed by Marco Rubio in the primary, after pledging not to do so, became an independent and has now targeted the Tea Party members as extremist he will stand against. Well, I stand firmly against him. Fortunately, it appears so does the majority of Florida. Upon losing, I expect Crist to take a spot in the Obama administration, where he belongs, at least until the wind turns east.

Florida Congressman Alan Grayson.

I cannot think of a public servant who employs such a disrespectful opinion of, not only his fellow members of Congress, but of his constituency as Grayson. Not only in the course of a campaign, but in everyday action, his rhetoric and decorum is simply disgraceful. Grayson buys into the socialistic policies of Obama and Pelosi, but beyond that, has done nothing but insult those of us here in Central Florida. The first vote I cast on November 2 will be for his opponent, Daniel Webster. Recent news stories indicated the Democratic party has pulled funding from him, declaring his race over. As the Captain said, Can I get an AMEN! Looks like the tenure of Grayson as our Congressman will thankfully die quickly.

Such Joy In Crackerbox Palace

These days, every day is a real head scratcher. A whip around the news of the day leaves you wondering when you passed through the worm hole. As astonishing as it is, you cannot wake up from it, for it is real. Welcome to Crackerbox Palace!

There are hundreds, but here are three cases in point.

Treasury Secretary Timothy Giethner, who failed to pay his taxes unlike the rest of us, wrote a recent editorial in The New York Times that welcomes us to the recovery. Is he just this stupid, or does he think flyover country is stupid or is he just outright lying to our face. There is no recovery going on. President Obama claims under his direction, we are on the right track and the worst is behind us. One would hope with all the stimulus, a recovery could be sparked, but it has not happened with unemployment on the rise and the housing crisis that at best could claim it is gaining stabilization, a double dip recession, or perhaps a continuation of the one we have been in, is coming.

Radical Islamists are attempting to build a mega mosque 600 feet away from Ground Zero, which you would think would be immediately thwarted by sound thinking government officials. Nope. In fact, they are embracing the potential construction citing harmony. I am vehemently against the mosque, and have blogged on the subject not once, but twice. However, this is no doubt the best example of political correctness gone amok I have ever seen. Oh, it gets worse.

Imam Feisal Abdul Rauf, a Kuwait-born Muslim, leads the Cordoba Initiative project. A supporter of Hamas and one who feels the US brought 9-11 upon ourselves, has been given funding by the State Department to go to the middle east to spread goodwill and raise money for the project. On our dime? We are joining the terrorists in financing this mosque? No way! Most media could not care less, but Sean Hannity is not pleased, and neither is Glenn Beck, who goes off in a must see monologue.

Those who do not understand the financial markets should not be falling all over themselves to craft regulatory reform of the financial markets. They are and they did, as the financial reform bill passed. The bill was crafted by Rep. Barney Frank, D:MA, and Senator Christopher Dodd, D:CT, both of whom are lucky not to be in the federal lockup.

Central to the housing crisis is the mismanagement of Fannie Mae and Freddie Mac, government sponsored entities who play monopoly in the mortgage markets. Frank, chairman of the committee that oversees this bunch, joined Andrew Cuomo, The Architect of Ruin, in failing miserably to adequately manage these GSE's. The amount of wealth destroyed by this mismanagement is historic. So, Frank is an idiot at best. Dodd, who dances around ethical behavior, got a sweetheart loan from Countrywide, now a part of Bank America (BA:NYSE) and the first major mortgage company to bite the dust. The arrogance of these men is astounding, but that our Congress would allow these two clowns to craft the unnecessary regulatory reform bill (FINREG) is mind boggling. No doubt Jethro Bodine was unavailable.

When we elect these idiots like this, we get what we deserve. And what did we get with FINREG? Fannie and Freddie, bleeding cash as if they are swimming in a piranha tank, were not included in the bill. So the centerpiece of the fraud, that Dodd participated in, Fannie and Freddie, fail to make the list of things to reform? Oh my!

The mind boggling decisions we witness that are made almost daily, by each branch of government, cannot be the result of incompetence. The destruction of our country, and our Constitution, is unfortunately deliberate. It is time to pull your head of out the sand and draw a firm line in it.

Don't you get it? While we were busy living our lives, we have checked into Crackerbox Palace. The Progressives have been expecting us.




Check out time is the first Tuesday in November!

Are We Ourselves?

What is going on America? Are we ourselves? Are we being played as a ship of fools while Captain Earflaps and his wing nuts Cloward and Piven transform America into a socialist nation. While much of the nation is busy voting for singers on American Idiot, the answer unfortunately is yes. Yes they can!

Well, No You Can't.

The Congress is passing mammoth legislation that no one has even read. And, you guessed, that includes not only the members of Congress, but the bill sponsors. Get a load of the arrogance of Speaker Nancy Pelosi:



As you appreciate, some real interesting things have turned up in the health care bill, including a stealth tax on Gold, which has been rising in value as a safe haven against the Obama economic policies. CNBC's Larry Kudlow speaks with Steve Moore of The Wall Street Journal about the issue:



Not only am I seriously concerned about what else we may find in the health care bill, I am even more petrified about the secret items tucked away in the financial regulation bill. FINREG, as it is known, was crafted by Senator Chris Dodd (D:CT) and Representative Barney Frank (D:MA), both of whom are central players in the housing crisis. Instead of leading on legislation governing the financial industry, given their unethical behavior and ineptitude in the governance of Freddie and Fannie, they should be expelled from Congress.

Glenn Beck covers FINREG, oh and so much more, extensively for those of you out of the loop:



Meanwhile, as Glenn mentioned, we have radicals surrounding President Obama. Many of those are members of the 1960's group The Weather Underground. Glenn has discovered their manifesto You Don't Need A Weatherman To Know Which Way The Wind Blows, and it is simply a must read. Once you read it, and you MUST, you will recognize actions currently being taken by our administration and your internal instinct will yearn for your attention.

We learned affirmative action requirements for Wall Street firms existed in FINREG, and today it was discovered that the new financial regulation law exempts the SEC from Freedom of Information Act, thus allowing them to steer clear of having to legally provide documents when questions from the public and the rare instance a news organization formally makes a request, which was FOX Business Network in this case.

Obviously, it has long been forgotten who works for who, and the promise from President Obama to have the most transparent administration is proven to nothing short of a bold faced lie! It was through the freedom of information act we learned of the patents for carbon trading and electrical locking systems patents Fannie Mae won. Yeah, that's right, the government's housing arm Fannie Mae.

You would think the situation is nothing short of out of control, but in fact, is is the plan and has been the plan all along. Obama and his radicals are aiming to destroy capitalism (imperialism in the manifesto) aiming to advance the formation of a Dictator for a new democracy to develop a socialist system. Although America is waking up, many seem to be going right along with it. That is not who we are. We are proud Americans, who value liberty and freedom.

Are we ourselves?

While I will pledge my life, whatever is left of my fortune and my scared honor to fight these tyrants, in asking the question are we ourselves, given what it taking place, it seems crystal clear the answer is an emphatic NO! But if I am asking the question, I may as well hear some good tunes while I am at it, which I plan to do as Cy Cronin and The FIXX hits Hard Rock Orlando Thursday night. As such, Are We Ourselves:

Lessons Not Learned

Unfortunately, the financial bill (FINREG) has passed. Crafted by two of the top members of the architectural team of the housing crisis, Rep. Barney Frank (D;MA) and Sen. Chris Dodd (D:CT), this bill be deal a serious blow to the consumer. In addition, it will add further negative pressure on the housing market long term.

FOX Business takes up the potential effects in the following interview:



The new bill, over 2000 pages with many of the particulars of the legislation yet to be firmed up, will simply be devastating to small business and consumers. Governmental regulation increases costs which limit the choices of the consumer.

The banks will not be free to lend as they see fit, in their own communities taking into account current local market conditions, but will be governed under the new regulatory framework of this bill. It certainly will make effort to secure credit by the consumer more costly and much more difficult to obtain.

While we had to pass it find out what in it, there have been some real distressing items uncovered, from regulations on insurance to affirmative action hiring quotas for Wall Street.

Among the more puzzling items, the bill does absolutely nothing to rein in Fannie Mae and Freddie Mac, the government sponsored entities which contributed greatly to the housing crisis. Imagine that! CNBC has more:



The bill, signed in a ceremony at the Ronald Reagan Building, is insulting as it is in direct opposition to the principles and economic beliefs Reagan championed.

It would be great for Americans to let the following sink in: Free Market Capitalism is the best path to prosperity!

ABC News Awakes From Coma!

An extension of the unemployment benefits is being "blocked" by Senator Jim Bunning (R:KY). Certainly, the American people deserve answers as to why Sen. Bunning, obviously an evil public servant, would place so many jobless American workers on the verge of starvation! The horror of it all!

Thankfully, for us idiots at large, ABC News is on the story like a cat in a tree at 4th and Main!



Good Grief! The media bias and hypocrisy on this is in the stratosphere.

As a youngster, I switched from Cronkite and CBS over to Peter Jennings and ABC News World News Tonight as my preference. In recent years, I have briefly met both Diane Sawyer and Charles Gibson, who both seemed to be neat people.

But ABC News has been nothing short of asleep at the switch for the better part of a decade. Recall Charlie Gibson stumbling around having no idea of the goings on of ACORN when they were exposed? Where was ABC, or any of the 3 networks, when Obama's radical czars were exposed, on the exposing of Charlie Rangel's many illegal activities, Obama's relationship with ACORN and stimulus money going to Congressional districts that do not exist? Surely they were all over Barney Frank and Chris Dodd's practically criminal oversight of Fannie Mae and Freddie Mac? Have they questioned Nancy Pelosi, who proclaimed to clean out swamp and run the most ethical House evah, on the long list of unethical behavior in the House? Paygo? Hello!

They completely missed the tea parties for crying out loud! And what about the global warming scandals?

For a myriad of reasons, with bias being at or near the top of the list, the network news divisions are quickly becoming a dinosaur. As Bernie Goldberg put it, if you are heading up one of these news divisions, you are essentially running a morgue.

Serves them right! And for the record, Bunning is still right!

Market Neophyte Scolds The Street

On the one year anniversary of the collapse of famed Wall Street firm Lehman Brothers, Barack Obama traveled down to the caverns of Wall Street to 26 Wall Street at Federal Hall to scold a gathering of investors and investment bankers.

I am so glad we are fortunate enough to have such a keen mind to inform us on how things will be done going forward to save the union. In the end, it was nothing beyond a dog and pony show.

Obama lectured the street players that there is an urgent need for tighter regulation, which is laughable. There were numerous agencies and mechanisms to thwart such irresponsibility, and here are two examples. The SEC, under Bush appointee Christopher Cox, who by most accounts is a decent guy, was asleep at the switch at a minimum, failing to investigate Bernard Madoff after numerous warnings. Government was in charge of Freddie Mac and Fannie Mae, who are perhaps the top culprits in the housing crisis, which is the catalyst bringing the whole system to where we are now. As Investors Business Daily reports, so much for the regulation. Have you met Barney Frank?

While banks are still not lending in normal fashion, the government under Obama has already inserted itself into the marketplace. "It is neither right nor responsible after you've recovered with the help of your government to shirk your obligation to the goal of wider recovery, a more stable system, and a more broadly shared prosperity,"quipped the President.

Interestingly enough, many of the money center banks are prepared to return the borrowed monies, but have been prohibited by the administration from doing so. Meanwhile, Obama's potential creation of a more stable system with a more broadly shared responsibility goes against free market capitalism, where risk takers are rewarded or pay the price of failure. This is capitalism. Shared responsibility with shared reward resembles the failed policies of our eastern block neighbors.

If Obama really wanted to get at the heart of the financial crisis, and he does not since he is using the crisis to further his big government platform, he would do well to investigate the credit agencies, who time after time issued AAA rankings to the firms on the street with mortgage backed securities that imploded.

Speaking of our neighbors, Investors Business Daily reports Obama on Friday placed a 35% tariff on Chinese tires imported into the United States, instigating the protectionist efforts that in fact deepened The Great Depression. Investigating the move, it seems that there is little to be gained, and much to be lost, from raising this tariff other than appeasing the United Steelworkers Union. Is placing the economic trade status of the US worth rewarding campaign contributors? I think not.

We began the weekend with President Obama violating basic economic principles with respect to free trade and placing our economy at great risk given the amount of US treasuries the Chinese hold to a Monday morning lecture on how the inept government will implement new governance and regulation sure to impede risk and investment, therefore restraining economic growth.

Economic growth, not government interaction and regulation, is what will bring this economy back. Invest accordingly.

I AM A LONGTIME SHAREHOLDER OF GOODYEAR TIRE & RUBBER CO. (GT:NYSE)

HVCC Wreaks Appraisal Havoc

Some inside baseball....

On May 1, 2009, the Home Valuation Code of Conduct became law as a regulatory mechanism on the hiring and management of the appraisal process.

Since many feel, inaccurately, that appraisers are central to the fraud associated with the Housing Crisis, the government, led by New York Attorney General Andrew Cuomo, D-NY, has implemented the HVCC. Although no governmental official is apparently interested in investigating the role of many of their own, inclusive of Chris Dodd, D-CT, with his sweetheart loan from Countrywide's Angelo Mozillo and/or Barney Frank, D-MA, who was the regulator of Fannie and Freddie while accepting campaign contributions from both, in the housing crisis, they did determine that legislation regulating appraisers was in order. Of course, as you may imagine, there already exists regulatory bodies that can examine appraisers conduct and the quality of the work through the Uniform Standards of Appraisal Practice. As is the case with Realtors and Brokers, licenses can be suspended or revoked and fines can be imposed.

The HVCC mandates that for an appraisal on a conventional loan, the appraisal must be ordered through a third party, referred to as Appraisal Management Companies, which are unregulated. The companies often receive orders from the lender and then employ an appraiser who has registered with the company to perform the appraisal. The fees are generally split, thus cutting the appraisers fee in half.

Beyond that, previous relationships the appraiser has worked hard to obtain and cultivate are lost. Needless to say, this legislation impacted the revenues of most appraisers as conventional appraisals now make up about 40% of the market. In addition, fees obtained by the appraiser for those orders they are fortunate enough to receive are halved.

Due primarily to having to meet strict time constraints, the quality of work delivered by appraisers under this system is diminished. With appraisers looking to recoup lost revenues, appraisers may be inclined to accept work in areas they are not particularly familiar with and in striving to meet time deadlines, they may not perform as much research as they commonly do.

Miller Samuel CEO Jonathan Miller speaks with Brian Sullivan and Dagan McDowell of the FOX Business Network about the HVCC. Take a listen:



The Orlando Sentinel recently presented an article outlining many of the issue swirling around the HVCC.

When an appraiser signs a report, that appraiser is responsible for its contents and must be able to defend the indicated value of the subject. If challenged by the current appraisal regulatory bodies, penalties, inclusive of loss of license (and ability to work in the business) are possible.

As usual, the government has infiltrated a business environment and caused more problems than they set out to correct. Whose to say the Appraisal Management Companies will not pressure appraisers for a value?

Free Market Capitalism, one where government regulation does not prohibit a business owner from doing business with his clients, is the best path to prosperity. Prosperity seems to be hiding these days, and I know why.

Regarding Arrogance; Lets Be Frank

On the subject of the regulation of pay, Mark Haines, David "The Brain" Faber and Rebecca Jarvis of CNBC have some questions for the genius at large, Congressman Barney Frank, D:MA.



That was not pretty.

When you think about it, it is mind boggling that this imbecile wants to regulate pay when the financial position of country is plummeting do in large part to the housing crisis, which as Chairman of the House Banking Committee, he had no idea of.

Frank apparently has no clue on a myriad of things. This arrogant representative was unaware his gay lover was using his home, his own home mind you, for prostitution and now he should be regulating our pay? You have got to be joking! He should not be in charge of anything, particularly in dealing with the peoples money.

Frank should resign, for among other things, his role in the complete lack of governance over Fannie Mae and Freddie Mac, who donated heavily to Frank in the form of campaign donations. The shenanigans of Representative Frank are numerous, and he should be held accountable. Since the voters of Massachusetts won't toss him out, at least he could answer our questions.

Abusive Politicos Frog Strangled on FOX

Those pesky AIG bonuses continue to dominate the news cycle. Thankfully for us, the usual political factions are hard at work protecting the good of the people. Or are they? Don't be fooled. Glenn Beck absolutely destroys Connecticut Attorney General Richard Bluementhal, who has the AIG bonus recipients covered dead to right but has no idea what his own Congressman Barney Frank has been up to. Don't miss this exchange:



Beck further blasted Barney Frank again today, and you have to wonder how Frank continues to be elected given his incompetence. Take a listen:



Earlier today, I read an outstanding piece over at Capm's Blog on an approved measure out of the House Financial Services Committee, chaired by our fearless idiot at large, Barney Frank (D:MA) called the "Pay for Performance Act of 2009." As Captain points out, this bill was written by our Congressman, Alan Grayson (D:FL). Captain accurately describes Grayson, who made his fortune suing the likes of Haliburton (HAL:NYSE) over defense contracts, as the sleazy political novice that he is, but then Grayson showed up on Fox Business's Cavuto with FOX Business Chief Neil Cavuto. Ladies and Gentleman, this was not pretty:



Let it be known to all abusive politicians trying to hoodwink the public; some folks are still blinded by the Obama rhetorical rise, but the ship is already sinking and the abusive arrogance on display will be challenged. In the event you have not got the memo, we surround you and you will hear from us!

A Ship of Fools

On the day before Valentines a month ago, Time Magazine put forth an article noting the 25 people to blame for the current financial crisis. Among the guilty listed were Christopher Cox (R:CA), current SEC Charmian, Angelo Mozillo, former CEO of Countrywide Financial, the American consumer, Franklin Raines, a former Clinton budget director and team Obama financial advisor who left fraud infested and bankrupt Fannie Mae with a $90 million parting gift and former Presidents Bill Clinton and George W. Bush.

All the aforementioned are on my list. Mozillo and Raines should be jailed while Cox represents the ultimate example of being asleep at the wheel. Clinton, although he has a disengaged memory of this, started programs which in part led to this debacle while Bush, although he publicly asked Congress for derivatives reform, was Charles in Charge as the situation broke horribly loose.

For the record, GOP Presidential hopeful John McCain (R:AZ), put forth legislation to rein in Freddie and Fannie while President Barack Obama, who complains daily how he inherited this mess, voiced not a peep regarding the housing crisis or credit derivatives on the very few times he engaged the senate floor. He does, however, have a long term association with ACORN, which leads me to the question the Time list.

In the world of BAHL, four of the top culprits were astonishingly omitted on the list by Time. Consistent with the presentation Time put forth, here are my missing four:

Barney Frank (D:MA), Chair of the House Financial Services Committee

Chief among the fools on the hill we can blame for this mess is Barney Frank, who has arrogantly bungled issue after issue. When President Bush asked for the congressional leadership to shore up the derivatives market and the balance sheets at Fannie Mae and Freddie Mac, Frank got twisted and angrily proclaimed that Fannie ( FNM:NYSE) and Freddie (FRC:NYSE) were fine and had no issues. Keep in mind the government runs Freddie and Fannie, and from his perch atop the House Financial Services Committee Frank missed the herd of pink elephants running around. In addition, under the leadership of Franklin Delano Raines, Fannie Mae was found guilty of fraud (accounting errors for those with friends in high places). Frank was a longtime champion of Freddie and Fannie, scolding members of congress who questioned the soundness of these GSE's and running interference to those who got in the way. Obviously, Frank was motivated to back Freddie and Fannie or he is an idiot.

ACORN

If you are looking for a quote unquote non-profit organization that operates with a mob style that imposes it's will on American commerce, it is the Obama friendly fraudulent organization of ACORN. You really need a history of the decades long role this organization has played in this crisis. Through civil disobedience, ACORN continues to interject their ideas in the marketplace even today.

ACORN pressured lending institutions to increase lending to those with less than stellar credit worthiness, essentially minorities, by threatening to march in front of their business or even haul them into court for discrimination. One of the young member of the ACRON legal team was Chicago's Barack Obama. Fearing the unknown of squaring off against this group, many lending institutions caved in and began stretching their lending guidelines.

Chuck Schumer (D:NY)



Chuck Schumer, (D:NY), finds the folks he represents as lower class chatterers who have not the knowledge to interject with the intellectually superior elite like himself. Schumer may have ignited this whole cascade of bank failures by making ill-advised and potentially illegal comments about Indymac bank, which resulted in a run on the bank. At a minimum Schumer had a fiduciary responsibility to keep his mouth shut on information about Indymac he had gained from his governmental position. Violation of the responsibility to the magnitude of Schumers actions are borderline criminal. After Indymac failed, the doors got kicked open and the scramble to struggle for solvency was initiated. Was this an idiotic move or a grand scheme to destabilize the banking system to make the Bush administration look bad? Either way, Schumer's actions are arrogant and destructive.

Chris Dodd (D:CT)

Christopher Dodd has his hands in the housing crisis more than anyone else on Capitol Hill, and he should be asked to resign immediately if not impeached. I have been calling for this for quite some time. Dodd got a favorable loan from Countrywide, a loan with terms not available to the common man, and claimed he was unaware of it. It would not be a stretch to think the Chairman of the House Banking Committee had little knowledge of mortgage loan terms given the level of competence we see in Washington.

Imagine the Chairman of the House Banking Committee getting a favorable loan and failing to notice any issues with Countrywide, Fannie or Freddie or issues with unqualified home buyers being granted mortgages. Somehow, Dodd managed to escape with his job after this debacle but now is embroiled in a scandal over the bonus compensation the executives at American international Group (AIG:NYSE)have received.

As the turmoil around AIG continues to evolve, it is interesting to note that a top recipient of campaign contributions from AIG, rivaling President Obama, is Dodd. Dodd has been caught skirting the truth at best in this scandal, as his incompetence continues to hurt this country.


Our Congressional representation thinks America is back lashing at these bonuses being paid to AIG workers, but they are mistaken. America is pissed at the Congress, and quickly becoming disappointed in President Obama, who I think is learning on the fly while he drastically aims to enact policy that places this country in economic, social and geopolitical peril.

Stuff the Scam of the Stimulus

The United States currently finds itself at a very serious fork in the road, as legislation of an economic stimulus package is being rammed down our throat.

"A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future," President Obama said.

A member of the Obama economic team is famed Harvard economist Martin Feldstein, who was a guest on FOX Business show "Happy Hour", with Eric Bolling, Cody "Wyoming" Willard and Rebecca Diamond. Grab your notepad and take a listen:


There is a video clip in there where Obama thinks cutting taxes on "working folks", will provide more of a stimulus than cutting taxes on the more wealthier citizens, who actually pay taxes, start companies that create jobs, thus trickling cash down the economic ladder to those who need a lift, not a handout. Even Feldstein says Obama's commentary is "a mistake".

Obama campaigned that he will not run Washington with politics as usual, but this package, written by the democratic leadership, is actually a spending package, one that will unnecessarily saddle our children with strangling debt. If we are in fact in a historic economic crisis, then pass legislation to simulate the economy. Instead, here is where some of the money is projected to go:

$246 million tax break for Hollywood movie producers to buy motion picture film.
$75 million for "smoking cessation activities" (Obama is a chain smoker).
$100 million for reducing the hazard of lead-based paint.
$850 million for Amtrak.
$160 million for "paid volunteers" at the Corporation for National and Community Service.
$400 million for the Centers for Disease Control to screen and prevent STD's.
$600 million to buy hybrid vehicles for federal employees.
$650 million for the digital television converter box coupon program.

Are you trying to kid me? This stimulus package is a fraud, and so is Obama and his arrogance.

This package should be defeated, and the congress should do nothing. That is right, NOTHING. Please take a look at the following 9 month chart of the S&P 500:

I have no idea what I am having for dinner tomorrow night, but it sure looks like the S&P 500 has put in a bottom and is well into a basing formation. So, I am of the opinion that if the government stays out of the way, the worst may be behind us. As you may know, the jobs numbers that are now getting posted, as horrendous as they are, are lagging indicators.

If the government must get further involved, I would recommend that we go to the root of the problem, and that is packaged mortgages leveraged at levels of reaching 50 to 1, which will bankrupt the best of all investors. First, lets refresh ourselves on how this got going in the first place:

If it is necessary for government intervention, the formation of a bad bank, or an organization similar in formation to the old Resolution Trust, should be formed. We might even be able to talk CNBC's Bill Seidman out of retirement to run the show. I had thought this was the original plan of TARP 1.

If properly implemented and executed, and that if is larger than the Goodyear (GT:NYSE) blimp, the federal government could grab these mortgages and remove them from the tainted banks books. By the way, have you noticed your little local bank on the corner is not a player in TARP. Yeah, me too. Therefore, some sort of repayment plan would need to be structured going forward with a time period component built in. This would allow these banks to resume "normal" operations, complete with market derived sensible lending practices, not those orchestrated by fraudulent organizations like ACORN. The government can then provide a backstop, sell mortgages to investors, hold them until inventories are exhausted and economic conditions are more favorable or disperse them on to the market at specified installments, perhaps absorbing losses along the way which would be a drop in the bucket to the current bailout philosophy. Tops among those lacking the intellectual strength to run this would be Barney Frank, D:MA.

Unfortunately, the spending package will pass. Down the road, many of you who voted for Obama can grab yourself the new rage in bumper stickers (spotted on Gateway Pundit). That would not be me!
Do you see it differently? Please feel welcome to share your thoughts.

Conditional Bailout Presents Rare Chance

The economic events of the last several quarters have been exhausting and have inflicted immense pain on many Americans, yours truly included. Obviously, although I am sure well intended, much of the governmental action, particularly in the form of orchestrating bailouts, has not been successful as Wall Street remains in freefall. Today's action suggest a very serious test of the recent lows and a break of those lows with any sort of conviction could send the DOW into the 6000's. Not pretty.

The issues facing the treasury and The FED are massive, and I recognize the simplicity of arm chair quarterbacking without keen insight to the information these agencies are dealing with. However, I would like to comment on the potential bailout the Big 3 automakers, GM (GM:NYSE), Ford (F:NYSE) and Chrysler. I will attempt to be brief, but it is an extremely complex problem.

First, almost daily on CNBC and FOX Business, I repeatedly hear a host or a guest fire the comment out that these firms do not make quality vehicles the public would want. This is total bullshit! I personally own a Chevrolet SUV and a Pontiac sedan and both are superb, particularly the Pontiac GXP. Both have over 60K miles and not withstanding the Goodyear (GT:NYSE) Racing Eagles I have had to replace, I have not spent over $1000 combined on these vehicles. Good God, I hope I did not just curse myself.
GENERAL MOTORS 2009 PONTIAC G8 SEDAN, MOTOR TREND CAR OF THE YEAR FINALIST

The problems the automakers face has nothing to do with a lack of product quality or vision for design and appeal of the current or future vehicles. In fact, outside of Chrysler's Bob Nardelli, who ran Home Depot (HD:NYSE) into the ground, the management is not all that bad in my view. The automaker CEO's do have a pink elephant in the room; the unions.


The automakers were running on the tightest of margins, hampered by governmental regulation, taxes, tariffs, global climate change initiatives (no, I am not kidding) CAFE and emission standards and union demands that are completely illogical and lack any sort of flexibility. They maintain the margins by relying on the consumer to continue turning over inventory every five years or so as outlined by analyst modeling based on long term data. BOOM, the housing market fell off a cliff and consumers got caught up in, with ironic apologies to The Motor City Madman Ted Nugent, a stranglehold.

With consumer expendable income squeezed dry, big ticket purchases are the first thing to be placed on the sideline. Demand for these items has not gone away, but quantity demanded has fallen off a cliff due to skyrocketing gas prices (which have since subsided but the consumer has zero confidence they won't soon return), uncertainty about the economic near term future and the extreme difficulty in obtaining credit, which is the lifeblood to our consumer driven economy. No consumers mean no revenue and with that comes the instant inability to reach those already razor thin margins, and it is not even close.

So, should they be left to wilt under fire and cease to exist, crushing thousands of jobs and creating a untold tiered ripple effect. Without some serious revisions to business as usual, yes.

However, we are presented with an opportunity at this time, and our representatives on the hill should take full advantage of it.

Organized labor under The United Auto Workers is the main culprit hampering the industry in the effort to be competitive with foreign automakers, particularly those with plants in the United States. Legacy costs create a burden that is estimated to represent over $2000 per vehicle in additional costs which in this extremely competitive environment is just a killer. Union contracts force the automakers to pay inflated wages which creates inefficient market conditions which are unsustainable. Blogger Mark Perry, Economics professor at The University of Michigan (Flint campus), provides a chart of the breakdown on his Carpe Diem blog.

Recent negotiations between the Big 3 and the UAW have planted mustard seeds as incoming workers are paid competitive wages while the legacy costs are estimated to fall off dramatically over the next decade. I did recognize that at the table before the congress along with the CEO's of the Big 3 was the UAW representative. It is not the Big 4, or is it? Against the backdrop of bankruptcy, the UAW rep really does not have dog in this hunt. Part of the existing UAW contracts indicate a certain level of paid hours of workers, regardless of fluctuations in quantity demanded and production levels. Would you run your bakery or hardware store like that? Should a bailout, or workout as former Mass Gov. Mitt Romney (R) puts it, move forward, major concessions should come from the UAW. In fact, they promote inefficiency, are unnecessary and should cease to exist in my view.

The government also places tariffs on intercontinental automobile trading, giving foreign competitors a significant competitive advantage. Since trade agreements must be adhered to until the time period of the agreement is exhausted, perhaps Uncle Sam should issue tax incentives to consumers who purchase US autos? This could work, but the issue of consumer credit must be solved or there will be no buyers to grab that incentive.

The government has already signed off to give the automakers 25 million to predominantly deal with the emission standards the government has placed upon the automakers. I know I will be labeled on par with a holocaust denier to speak out that global climate change is a farce, but in light of limited evidence to the contrary (record low in Orlando this morning), perhaps the government could suspend, or I may recommend, eliminate, these cumbersome regulatory restraints and directives? At any rate, with bankruptcy looming, they could use that money to stay alive.

All three US automakers are making impressive progress in fuel efficient vehicles, and most of the GM fleet gets over 30 MPG. The Chevrolet Volt, shown below, should be a huge seller.

GM INNOVATION IN ELECTRIC VEHICLES COMES TO THE CONSUMER IN 2010 WITH THE CHEVY VOLT

I had to laugh watching Chris Dodd and Barney Frank presiding over the hearings with the Big 3 CEO's. If the housing crisis did not unfold, the automakers would not be in the position the currently find themselves in, and Frank and Dodd were asleep at the wheel as that problem emerged (would the fine folks of Connecticut and Massachusetts please toss these corrupt idiots out of office?). Governmental regulatory intervention and organized labor eliminate any fighting chance the Big 3 have to competitively emerge from this debacle. These barriers to competitiveness should be eliminated yesterday.

Since the government contributed to the cause of the problems that saddle the Big 3, government should assist them in the way out, and then get the hell out of the way! The auto industry is not a normal business, and it's importance to America is quite significant. I think some sort of workout, either a bankruptcy with a partial governmental backstop or a bailout/workout with a conservator (Romney?) is necessary as I fear the aftermath and costs of complete failure significantly surpasses that of a workout.

But if the Big 3 are going to take the taxpayers money, they must adhere to conditions, and those would include but not be limited to elimination of the UAW, the restructuring and rewriting of current union contracts, elimination of duplicate models (Saturn Sky and Pontiac Solstice, for example) and the reduction in the amount of dealerships (which does not necessarily include the elimination of product lines). If bankruptcy is the option taken, the government should be cognizant of the effect on warranties (would require some sort of backstop) and the potential impact of the tiered suppliers which could be severely damaged or lost in the ripple effect, including companies like Johnson Controls (JCI:NYSE) and Lear Corporation (LEA:NYSE). Evaluating the landscape on this issue, I find a workout of some sort is critical to our economy at this time.

I find it poetic that during green week, partly because government has forced the industry to spend unnecessarily on green initiatives, we need to pass out armored cars full of greenbacks. A vicious circle indeed. It makes you want to pull the hair out of your head and set yourself on fire.

After that depressing commentary, for our listening pleasure I present Ford truck owner and Detroit native, The Motor City Madman Ted Nugent, with Stranglehold.

Collecting ACORNS

Since the economic crisis landed at our doorstep, the McCain-Palin campaign has lost ground to Obama-Biden, due in large part to the majority of country associating the crisis with the GOP. Although information to the contrary is readily available, inclusive of a 2005 Bill co-sponsored by John McCain, R:AZ, to reform Fannie Mae and Freddie Mac, a firestorm of incorrectness burns.

Key Democrats, including those in leadership such as Barney Frank, D:MA and Chris Dodd, D:CT, are up to their eyeballs in this storm and should resign immediately, as we have already called for with respect to Dodd. Details of the impending issues were outlined in an article in The New York Times, in 1999. What is not common knowledge is the role Barack Obama has played in this. Yes, through his actions and associations (by howdy, this is a long list), the role is significant. Glenn Beck discusses this in an interview with David Freddoso of National Review.

Fools on the Hill

It is unfortunate that as we are apparently in a grave financial crisis that politics and finger pointing appear to rule the day.

As far as the Bill itself, I am quite torn on it as it goes against my beliefs on how a capitalist system should operate, but I do recognize the role of Government in emergency situations, which due to the current locking of credit, it appears we are in. I subscribe to the Kudlow creed that "free market capitalism is the best path to prosperity".

Setting a fine example was Senate Majority Leader Harry Reid (D:NV), who on Friday got out three sentences before bashing President Bush, while CNBC's John Harwood, not that the media could be left out of Bush bashing, keeps praising Obama and bashing McCain, with his cheerleading substituting for empirical evidence. Speaker of the House Nancy Pelosi (D:CA) unleashed levels of partisanship rarely seen during a time of crisis, cementing her lack of leadership skills.

Quite obviously, there is bipartisan blame for this debacle, and regrettably, President Bush does not escape it. But a closer look at the players is needed at this time as election decisions are made. Since the media won't keep you up to speed, here is some evidence for your review on who the responsible parties are in this mess.


Over the next week, I will be calling out the culprits. In the meantime, chief among those who need to resign immediately is Rep Barney Frank (D:MA), Chair of the House Financial Services Committee. Before I get around to torching him, it should be known that due to a religious holiday for him on Tuesday, he will not be available for the peoples work even as we supposedly face a crisis of generational and catastrophic proportions. Just great, I am not available and call me if you need me! What leadership!