It is very scary to libertarians like me, but the conservatorship of Fannie and Freddie goes back to the man on the ten dollar bill – Hamilton, creator of the central bank. Many consider him the premier American economic genius who understood the configuration of the most powerful economy on earth and capitalism itself. He was ahead of his time. A powerful Fed making mitigating moves would have his approval.

The Bush Administration handling of the economy is decisive. The moves have been effective, and calming to the markets. And thus the markets have made an orderly retreat to lower levels. In spite of the real estate melt down, the political season and the credit crunch, there has been no recession.

Fannie and Freddie have deteriorated into hybrid semi bureaucracies with many closets needing cleaning. Clinton crony appointees mishandled and ruined the agency with reckless and mercenary management. They scored millions for themselves and as the piper shows up to be paid, they can be found as advisors to Obama campaign.

I would counsel them that the loss of innovation is the curse of bureaucracy. The engine of incentive and the hunger for innovation is lost within taxpayer supported establishment. It breeds things like tenure, seniority and mediocrity and most importantly irresponsibility. The sub prime debacle simply brought that weakness to a head.

Fannie and Freddie were so bureaucratized; they could not go below their current rates. No matter how low fed rates went, mortgages were anchored to the cost of bureaucratic waste and big-time commissions for management. Fannie and Freddie were sapped of competitive capability by government secured complacency.

Sub prime loans were sub prime for a reason. They were made with liberal lending rules that succumbed to the needs of real estate over-development. For their troubles, sub prime lenders got a great deal more interest for taking that risk. We can say that they have already received their due.

Irresponsible rhetoric of an impending Great Depression aside, there has been only one month (December ‘07) of contraction. Though the first had a small expansion the last quarter shows a robust 3.3% growth and an unemployment rate that for the last six years has been consistently lower than the last four decades. Too bad for the big tax and spenders, the tax cuts must be given credit for the economy’s strength in meeting these headwinds. Now is not the time for big tax and spending suggested by candidate Obama. I would argue there is never a time.

But the political season has descended into politically correct hyperbole like; “Everyone is suffering and we are descending into a Great Depression.” has alarmed everyone and destroyed public confidence. Still, while the sub prime debacle reverberates all over the world, the American economy retains strong fundamentals. There is historically low unemployment, interest rates and last year’s inflation rate is not excessive compared to recent history.
But consumer confidence has been driven into the ground by politics. But confidence is really the only thing this market needs to meet the challenges brought on by excesses of overdevelopment and risky mortgages.

I also take issue with the term “bailout.” Considering the exact term “bailout,” the rhetoric is hyperbolic. A Resolution Trust Fund has its assets backed by real estate which is exceeded only by gold as collateral. The real value of property investing is in its intrinsic value.

And it is real, it regains its value when it is put back on line as housing for either buyers or renters. If these homes are not allowed to become derelict, investors would do well to back a privatized Resolution Trust Fund that has a competent property management component to put the property back online. This is a job for a real estate manager of the highest caliber.

We must remember that unless fraud is proven and people are prosecuted for misleading borrowers, the unqualified and defaulted buyer are the specific party that breeched the contract by failing to make payments. In many cases buyers received that privilege without down payment and without a good credit report. These buyers lived in a house they could not afford. And they walked away when they could not make the usury interest rate payments . . . Duh? But the most important question is why were taxpayers guaranteeing such instruments?

Fannie and Freddie are partly private businesses, just like any bureaucracy, Fannie and Freddie descended into complacency. Instead of responsibility in buying sub prime mortgages there were “agreements” padded with winking eyes that every bureaucratic administrator knows about. By the time it was disclosed that sub prime mortgages were risky, it was too late. But being outside the competition makes one rusty and feeling secure. In the bureaucracy one hand washes the other that has grease for the palm. Well, the party is over.

For those who could not afford sub prime loans, the foreclosed, they will have to claim bankruptcy if necessary; then if they want their own home they must get to work rebuilding their credit and building a real down payment. But for now they are a perfect rental market (perhaps lease purchasers) for the Resolution Trust Fund. That will create affordable housing from existing housing, not from over development.

That’s being a hypocrite.

They call themselves Democrat, but they have not accepted the edicts of democracy since the year 2000. Their goal is to win at any cost, even if it takes fighting every democratic decision by the majority.

That is not being democratic; that’s being a hypocrite.

If they lose, they fight the elected official in a way that subverts or defaces the official or even democracy if necessary. They offer every excuse to not follow the path, to smear and slime the democratically elected President, a man who pursues democracy in an attempt to free us from nuclear fear.

That is not being democratic; that’s being a hypocrite.

No democratic country has ever attacked another. Think about that . . . And while you are at it think about the lesson of Japan. Yes, we occupied that nation after Hiroshima but there was no need. They would have done anything we said to avoid another bomb, even if is took coercion with their own standing army, a fanatical kamikaze military.

Look at Japan now; they have their freedom, they are prosperous and there is no inference in their affairs. Is that “imperialism” as “Democrats claim?

That is not being democratic – that’s being a hypocrite

Iraqis and Afghanis are our friends as well. Only a fraction is religious extremist and radicals are quietly being rejected by newly born Iraqi democrats who, in spite of threats, bravely show their purple fingers and thumbs at the polls.

It also takes brave elected men and woman who follow the rule of law under constant threat of assassination, soldiers, the police and first responders who directly confront this evil. It will take a few election cycles to get the better leaders, although it seems with Maliki, they have done well for themselves. One thing we do know – no man rises by the gun in democracy. And we fear no democracy no matter how they are armed.

Hypocrisy is rationalizing that says even though while proudly calling themselves “democrat,” they contend that Arabs do not deserve freedom. They try to sell us they are better of with tyranny. They contend George Bush is a fool trying to free the world. But is it not the noblest goal of all – especially if it brings peace and security?

That is not being democratic; that’s being a hypocrite.

America has brought sixty million people their freedom with democracy in the Middle East. Today they have a constitution, representation and the rule of law, remarkable in just five years. But Democrats have fought freedom the whole way. How much more could we have done with unity? But if you call them on it they would say they voted for it. They were for it before they were against it.

That is not being democratic; that’s being a hypocrite.

As nuclear proliferation rolls out, it is dictators we fear with these awesome weapons, not democrats. Many of us are in denial, but nukes in the hands religious fanatics are untenable. Small watercraft is capable of carrying Hiroshima sized bombs, easily disguised and nearly impossible to defend against perfectly. Run it aground and pull the trigger. Every single beach is a highly populated target. One mistake by the Coast Guard and it is over.

The destruction caused by atomic weapons is intolerable beyond what most understand. If just one is detonated, even at sea, panic will ensue; the terrorists will have gained credibility. And there is no return address. There will be great fear as the coercive power of that situation would inevitability be fatal. Face it, we cannot kill every terrorist. Yet democrats argue against democracy, the one thing that can eliminate nuclear fear.

That not being democratic – that’s being a hypocrite. And some may argue it is heracy.

Fanni and Freddie Conservativeship

The Bush Administration handling of the economy is dazzling. The moves have not only been effective, but also calming to the markets. And thus the markets have made an orderly retreat to lower levels.

But tn spite of the real estate melt down, the political season and the credit crunch, there has been no recession. While the sub prime debacle reverberates all over the world, the American economy still has strong fundamentals.

The irresponsible rhetoric of an impending Great Depression aside, there has been only one month (December) of contraction. The last quarter shows a robust 3.3% growth and an unemployment rate that for the last six years has been consistently lower than the last four decades. Too bad for the big tax and spenders, the tax cuts must be given credit for the economy’s strength.

To libertarians it is very scary but the conservatorship of Fannie and Freddie goes back to the man on the ten dollar bill – Hamilton, creator of the central bank. Many consider him the premier American economic genius who understood the configuration of the most powerful economy on earth and capitalism itself. He was ahead of his time. A powerful Fed making mitigating moves would have his approval.

The loss of innovation is the curse of government (politically correct) regulated industry. The engine of incentive and the hunger for innovation is lost within taxpayer supported bureaucracy. It breeds things like tenure, seniority and mediocrity. The sub prime debacle simply brought that weakness to a head. These loans were sub prime for a reason. They were made with liberal lending rules that succumbed to the needs of real estate over-development.

The unqualified and defaulted buyer got to live in a house he could not afford. And, sub prime lenders got a great deal more interest for taking a risk. We can say that they already received their due. In many cases buyers received that privilege without down payment and without a good credit report. They walked away when they could not make the usury interest rate payments. But why were taxpayers guaranteeing such instruments?

By the time it discovered sub prime mortgages were too risky, it was too late. Even though they are partly private businesses, just like any bureaucracy, Fannie and Freddie descended into complacency. Instead of competition there were “agreements” padded with winking eyes that every bureaucratic administrator knows about. Being outside the competition makes one rusty and feeling secure while one hand washes the other that has grease for the palm.

Fannie and Freddie deteriorated into hybrid semi bureaucracies with many closets needing cleaning. This duo could not go below their current rates because they were sapped of competitive capability by regulation and thus inefficient. No matter how low fed rates went mortgages were anchored to the cost of bureaucratic waste. Well, the party is over.

Palin and liberal despair

Governor Palin has brought desperation on the liberals, a sick feeling in the pit of their stomach. They look like Pee Wee Herman sitting on a park bench after he lost his bicycle over-acting a rapid decline into depression and despair. Liberals ponder how dumb voters are and think: “Change means socialism, doesn’t it? Americans can’t be stupid enough to vote for Republicans are they?”

Their faces are made even longer by the necessity to feign worry. They told us the economy would collapse eighteen months ago. Nevertheless no recession has occurred. There has been just one month of retraction, in December 2007. Last quarter the economy grew a robust 3.3%. Liberals just grow more shrill and disbelieving and have resorted to personal attacks.

The money changers liberalized lending practices to satisfy the need for over-development customers. That turned out to be a bad idea as money was lent to unqualified buyers without a down payment. And with no stake in the home they walked away. As a result the sub prime crisis reverberates all over the world. Nevertheless our economy has remained strong.

And now the risky mortgage companies have been driven from banking and construction tradesmen have morphed into repairmen. Soon they will go to work on the infrastructure. Governor Palin has shown the way with her 30 Billion dollar Alaskan Gas Pipeline project. This is a project which will put many to work making America energy self sufficient. And that is enough to depress any liberal.

McCain said Thursday, "A change is coming.” Indeed there is a tsunami crashing over this nation, a tidal wave that draws its elemental power from left wing extremist egalitarian class warfare.

In spite of the public knowing it, the left wing will not admit to being socialist – or even Marxist to honor the father of their philosophy. They prefer to be called the audacious distortion: “progressive.”

Socialism is redistribution, the philosophy embodied by Obama. It has been called “shared poverty.” Coercing money or property from the successful and giving it to the unsuccessful is a scheme that is not only failed – it is wrong. Although sharing is a good thing, when it is coerced, it is nothing less than larceny imposed by tyranny, a world allegorized by Orwell’s Animal Farm.

Taking what does not belong to you is stealing. Your mother taught you that it is wrong; it defames both the giver and the receiver. And it must be rejected for what it is, theft of private property. But this is the essence of the Marxist philosophy of Ayers, Obama and Clinton. Socialism is an old idea that fit into the Industrial Age but has failed miserably wherever it has been imposed simply because it destroys incentive and inhibits innovation.

To many of us the charade has been obvious, but we have had no champion to stand against it. Now we do, and it is a she . . . Sarah. Americans will flock to vote for Governor Palin. She is the ultimate role model for children of either gender, because she is no-nonsense. I will be thrilled to vote for her and watch that so-called “glass ceiling” shatter. She fights with the most formidable forked weapon – truth and light.

Liberals have seized on every difficulty to discredit our leaders and blame America first. Divisive and arrogant, they believe they have shouted us down. They think we have given up; it is over. But we will not surrender to their bully tactics. Indeed, change is long overdue. McCain / Palin will bring reform that will mark the end of special interests with great power and public mandate. There will be a tsunami of change that will overwhelm and crush the Democrats because their leadership has defaulted to the extremists of their party.
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2012, Hillary VS Sarah

Liberals are trembling over Sarah Palin because she brings with her their biggest fear – that women, especially the young, will hear both sides. Many will conclude that liberal ideas are wrong and are taking America in the wrong direction. Women will have a choice in the quest to reach White House gender parity.

It takes chutzpah to finger the VP choice as inexperienced when the liberal’s front runner has no command track record at all. They attack Palin on her experience when she has been making command decisions as a governor since November 2006. This is exactly two years longer executive experience than Obama. Palin has held elective office for eighteen years with six years as an executive.

And if change is what America wants, Palin is the choice that will keep on giving. She was a thorn in the side of the Republican machine in Alaska. She took them on and went public after they tried to elbow her out. Alaskans kicked out the governor and elected her. She has an 80% favorable rating.

She is a sporting woman who takes on gender excellence in much more than the obnoxious job of career politician. She hunts, snowmobiles and is an avid ice fisherman. Her dynamics are inspiring. She put the governor’s private plane on EBay and got rid of the gourmet kitchen in the governor’s residence. She rejected the famous congressional pork fest “Bridge to Nowhere.”

And though she comes from the working class she is a fast learner and politically savvy. She calls her husband the “First Dude” of Alaska. If McCain is dead in 2012 as liberals claim, he will have instructed her in the fine art of diplomacy that includes homeland defense. Under the excellent of John McCain she would have a fine training for the top job. Something neither Obama nor Hillary can claim. It will be no contest.

Palin is central to liberal anxiety and panic. Her candidacy with McCain could easily transform itself into twelve, perhaps twenty four years of conservatives in the presidency. If John is not dead by then (he will have reached his energetic mother’s age), certainly a few of liberal Supreme Court judges will be.