Three seats in the US Senate are for sale- not one

It is interesting to me the magnitude of righteous indignation regarding Governor Blagojevich’s alleged consideration of exchanging the appointment to fill the vacated Illinois US Senate seat for money. After all, to exchange a political favor for cold hard cash is so ugly, undignified not to mention to illegal. In New York State, Caroline Kennedy has decided that it might be fun to be a member of US Senate. It would appear that New York Governor Paterson is going to appoint Kennedy. Her appointment would because she is the most qualified candidate. Kennedy would not be appointed because of her decades of service to the public. Governor Paterson is certainly going to gain something by the appointment of Kennedy. To think otherwise would be ludicrous and naïve. Patterson will gain political favor, access, and perhaps future political appointments. In Delaware, Governor Ruth Ann Minner is likely to appoint a placeholder individual to occupy the seat until which time Biden’s son will be able to run for the seat following his military obligation. It’s not likely that cash will be exchanged in this deal. However, both in New York and Delaware a transaction will be consummated. Blagojevich’s mistake was that he asked for money. When Blagojevich asked for a job or appointment no one cried foul. When he asked for money, the earth opened up on him and everyone acted with total disgust on even such a consideration. As the President-elect fills many of his political appointments over the next couple of months give some consideration as to how many of those are political payback for support, endorsements, or favors. A transaction brokered with a currency of a different type. There are many things more valuable than money.

Shoe Thrower Lacks Convictions-- Shocking

The Iraqi journalist who threw his shoes in an attempt to insult President George Bush has plead for mercy on the Iraqi court asking for a pardon. He asked," "I appeal to your fatherly feelings to forgive me." What a spineless coward. The Arab world erupted with enthusiasm and support for his insulting of the US president. Notably absent are the throngs of people in the street celebrating his latest public act--his pleas to the court. The US media are also not playing his story of begging the court not to send him to prison in a looped video.

The Democratic Act of Throwing Shoes

Society is filled with symbols of rebellion and opposition. The burning of an American flag in the city square by protesters is perceived by most as disrespectful and provocative. The moment that you would attempt to restrict such a demonstration, liberal and civil libertarians would scream of the threat to the fabric of democracy and the freedoms we love so much. Freedoms such as the freedom of expression, freedom of speech, and freedom of the press. The American media fails to recognize that the "shoe attack" is proof in concept that democracy has taken root in Iraq and that the war is won.


The Iraqi reporter, Muntazar Al-Zaidi, who threw his shoes at President George Bush is being lauded as some hero in the Arab world. He and his actions are an ironic joke, a testimonial to the freedoms that have been afforded to him by American policy and the very man he was trying to insult. Al-Zaidi is a journalist who was attending a news conference of two heads of state in Baghdad. If Saddam Hussein were conducting such a news conference what questions do you suppose and Iraqi "journalist" would feel comfortable asking? Voice an opposing opinion and you would likely find oneself imprisoned, insult him and you would be dead. The very notion that Al-Zaidi was at a new conference and was able to vocalize his hatred against the President and America is a demonstration that Democracy and the United State won. The people of Iraq have been liberated. To call Al-Zaidi a hero is joke. He is a coward. Perhaps he would like to throw his shoes at the other heads of state. Let's conduct a list for him to practice his new shoe pitching skills: Syria, Saudi Arabia, Iran, North Korea, or China. Alternatively, he could come to Times Square and toss some shoes at a typical New Yorker and see how that works out for him.

No Muntazar Al-Zaidi is not a hero. He is a personification of irony and history will remember his as a man so shallow and stupid he couldn't even realize that he was insulting and attacking the man who was responsible for the liberties that he was exercising with his reckless and stupid acts. The media who views this video and giggles like a bunch of children are equally simplistic in their analysis of these events.

Democracy and Capitalism is Dying

The UAW's sense of entitlement is unprecedented. According to both the GOP and the UAW, the negotiations regarding the auto bailout collapsed when members of the senate could make commitments regarding wages that were competitive with the foreign automakers transplants in the US. UAW President Ron Gettelfinger in a news conference today in Detroit stated that today that the UAW has always kept its word. Furthermore, when pressed by the media today, Gettelfinger would not agree that the UAW would make any concessions to get the auto bailout. The auto industry wants $14 billion today and tens of billions of dollars in the weeks to months to come. The UAW wants the American tax payer to fund a bailout but does not want any strings attached. The UAW does not want to provide any dates of commitment to provide competitive labor cost or make any labor concessions at all. That is absolutely unreasonable. That attitude is a window into the very psychology that got the Detroit Big three into the trouble they find themselves today.

One of the several laughable quotes of Gettelfinger today was that the US Senate wanted to silence the voice of the worker. The Gettelfinger was hopeful the Treasury and the White House to provide TARP funds to the Big Three. Nevermind the democratic process. The legislative process stopped the bailout process, but lets ignore the will of the American tax payer. Treasury Secretary Henry Paulson will raid the treasury once again and give money to the automakers.

Once again we are faced with a dilemma. Let's review . .
1. The Economic Stimulus Act of 2008 (enacted February 13, 2008): $152 billion dollars ($152,000,000,000) was spent to send $300 and $600 dollars. The intent was to stimulate the economy and create some business investment.

2. TARP- Troubled Assets Relief Program- a $750 billion ($750,000,000,000) bailout that had to be done with break-neck speed to get money to financial institutions. When it went to the Hill, Congress had to add an additional $150 billions ($150,000,000000) of "sweeteners" (aka pork) to get it to pass. The intent was to allow immediate liquidity in the financial markets that were frozen due to poor assets. The banks that have gotten funds have essentially recapitalized with the money and have slow to give loans.

The Treasury is being raided. The White house and the Treasury is likely to provide a bailout. Despite the will of the American people and the lawful actions of the House and Senate. There is more at stake the the US auto industry and economy. What is at risk are the concepts of democracy and capitalism.

Congress wants to buy the auto industry

At present time congress just passed the auto bailout. It seems that American car companies cannot sale cars in . . .America. But how do these same companies perform in Europe. After all, this political season we have heard a great deal about Europe. We've heard that Europe has better infrastructure, and universal health care, and American car companies can sell cars. Why can't GM and Ford sell cars in the US but can in Europe. GM and Ford already make fuel economic cars in Europe but cannot sell them in a profitable fashion in the US because of regulations passed by CONGRESS. Over the years, Congress has passed the regulations for safety and emissions standards that prevent from the US car companies from selling these popular automobiles in the US. If congress suspended these regulations, the automobile companies could start selling these care in the US immediately and would need a tax payer bailout. So that leads to the question of what is more important to congress, their suffocating regulations or a $35 billion dollar bailout?

Will this be the last of the auto bailouts? No. Once we bail out the car companies the next problem is the ability of the dealers and the consumers to get credit to buy the cars. A bailout will not solve that. GMAC (49% ownesd by GM) provides these loans is feverishly trying to raise the capital so that they can become a bank holding company. The reason they are trying to become a bank holding company is to file an application to the US Treasury to get billions of dollars of TARP money. After all, GMAC has lost almost $8 billion dollars over the last five quarters. Pelosi won't move on emission standard.

The federal government has considered the notion of a government car czar. (I love the notion that they used a Russian word for Emperor). This is an amazing amount of arrogance. Three automobile auto executives could not run their three respective companies. Not a problem. The government selected bureaucrat has the wisdom to run all three of the companies.

The New New Deal - Public Works Payola

The political corruption scandal of Gov. Rod R. Blagojevich was centered around a pay to play philosophy. The governor allegedly used his power to obtain contributions by those seeking to obtain profitable contracts for public works such as highways, bridges, and even a children's hospital. It seemed that these public works projects were the currency that fuels the machine of Chicago and Illinois political corruption. Over the past couple of weeks we have heard the proclamation from Obama, Reid, Pelosi, and Frank that the solution to our current economic turmoil is a massive public works project the likes that have never been seen before in the US. Certainly Obama's massive new deal projects will be free of corruption, bribes, and fraud.

Detroit is Drowning-- Al Gore Tosses Them a Brick

On Tuesday Al Gore met with President-Elect Obama. The topic was obvious. After inventing the internet, Al has turned his attention to saving the world. Let's make some green cars. Alternative energy cost more than conventional energy. With the automobile industry doing so well, what a great time to talk about making more federal mandates to make cars that no one wants to buy. Furthermore, alternative energy is not cheaper than our current energy forms so lets have the government and not the free market determine what cars and with what features you will buy. The federal government is nationalizing the automobile industry and talking about appointing a "car czar." "Czar is defined as an emperor. Perhaps appropriate language given the recent government policies.

Liquidity of the Car Market

Congress continues to debate the bailout of the auto industry. One of the problems that has been verbalized is that the banks are not making loans for people to buy auto loans. No loans, no one buying cars. Personally, I am somewhat amused by the total lack of intelligence by people who want to take on more debt in this economic climate. Event before this economic crash, I am a risk averse person who avoids credit and debt. When one simplifies the entire economic crisis, one can say that the underlying problem is that of banks, companies, and individuals trying to lever-up with borrowed money.

To reduce their risk, the banks have established a credit score of 740 to qualify for a car loan. (See Forbes article) Many in congress see this credit limit as a problem. Lets break this down. In this time of economic turmoil and crisis, banks should lower their standards on providing loans to individuals who the banks see as too risky. Isn't this who we good the Fannie Mae and Freddie Mac crisis with subprime mortages? YES.

What . . . there is more? Congress had to push the $850 billion dollar TARP bailout. If they didn't rush it through congress we were all doomed. Congress, pushed the TARP legislation with all of its lack of oversight. Those of us who resisted were treated with nothing short of condescension since we lacked the insight of congress. No congress is fuming because banks are not putting the TARP money into play to provided the intended liquidity. That is because under the TARP legislation, the banks are not compelled to lend the money. Instead, the are putting the money in Treasuries and recapitalizing. The banks are taking advantage of the opportunities made by congress with poor legislation.

So in summary, the $850 billion dollar legislation is not doing what congress intended. Congress wants the banks to give loans deemed to be too high risk to give loans to in the current economic climate. And Chris Dodd and Barney Frank what to call the auto executives incompetent.

Harry Reid Insults Capitol Hill Tourist-- a real man of the people.

Harry Reid demonstrates once again his true elitism attitudes. At the dedication of a tourist center on Capitol Hill Reid makes mention of foul smelling tourist. Well Harry, then don't take their tax dollars or votes.

Where will all the cars go without the big three?

Watching the hearings on the Detroit auto makers. What is missing in the debate is the facts that if these three manufactures go out of business, the need for the automobile does not vanish with them. Listening to their positions makes me angry. Are they so arrogant to think the automobile will die with them or do they really think the American public is stupid. If the "Big Three" go out of business, the excess capacity will be absorbed by those companies that are ALREADY making the competitive products the people are ALREADY buying. Those supply chain companies will shift their businesses to meet the demands absorbed by Nissan, Honda, Volkswagon, and Toyata who all have plants here in the US.

In the late 70s and early 80s, areas of the rust belt were created in Ohio and Pennsylvania where thousands of steel workers lost their jobs as the automakers stopped buying domestic steel in favor of imported steel from Japan. Now, the automakers what us to protect them from the foreign competition. Oh the irony.