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Friday, March 28, 2008

FARM-GROWN HYPOCRISY   Blogging during a commercial break while taping Kudlow, following Larry's interview with Senator Chuck Grassley -- and wondering if Grassley has read this comment in today's Washington Post?
Well, isn't this rich: Max Baucus of Montana and Chuck Grassley of Iowa, chairman and ranking member, respectively, of the Senate Finance Committee are suddenly in a lather that taxpayer funds might be implicated in the Federal Reserve's rescue of Bear Stearns.

Would that be the same Max Baucus and Chuck Grassley who have made careers out of protecting and enhancing the lavish system of import restrictions, price supports and other subsidies that have transformed American farming and ranching into a vast socialist enterprise? You betcha.

Whatever you want to say about the sharpies on Wall Street, they are pikers compared to Max's and Chuck's friends down on the farm when it comes to picking the pockets of taxpayers and consumers, or concocting a system in which the farmers get all the gains while the government assumes most of the risk.


Posted by Donald L. Luskin at 5:04 PM | link  


Thursday, March 27, 2008

WHAT MORE EXPLANATION DO YOU NEED?   Larry Lindsey in the Wall Street Journal:
...the Democrats appear to be a party of lawyers. Only lawyers could have invented delegate selection rules as complicated and opaque as the ones the Democrats are struggling under. It also looks like only lawyers have a chance at the Democratic nomination. Harvard Law (Obama) and Yale Law (Clinton) candidates have survived, while University of North Carolina Law (Edwards), Syracuse Law (Biden), and the University of Louisville Law (Dodd) have been eliminated. And lawyers at the DNC Rules Committee will decide what happens next.

Posted by Donald L. Luskin at 8:11 AM | link  

THE VERY PICTURE OF INTEGRITY   Michael Lewis on Jim Cramer:
Three days earlier, on theStreet.com, Jim Cramer listed Bear Stearns common stock as a ``buy'' at $62. On his CNBC program that day, he showed his viewers a chart of Bear Stearns stock price and hollered, ``Bear Stearns is fine! Do not take your money out of Bear.'' Over that weekend -- days when the markets were closed and there was no material news about the company -- Bear Stearns was believed to be worth $2 a share, so long as the Federal Reserve assumed the downside risk of almost $30 billion of its mortgage securities...

TheStreet.com quickly removed Cramer's March 11 ``buy'' recommendation from its page devoted to Bear Stearns. (The Cramer-obsessed Don Harrold's YouTube account of all this is priceless.) And Cramer went back on CNBC to explain that he never intended for anyone to go and actually BUY shares in Bear Stearns -- only that, if they happen to bank with Bear Stearns, they shouldn't worry about losing their money (a public service to all those ``Mad Money'' viewers who use Bear Stearns as a bank.)

Thanks to "Irrational Exuberance" for the link.

Posted by Donald L. Luskin at 1:17 AM | link  


Wednesday, March 26, 2008

NOT EXACTLY A PARAGON OF GENEROSITY   At least not with his own money -- as revealed by Barack Obama's stingy charitable giving record revealed in his publicly disclosed tax returns. But hey, the liberal agenda is never about personal, voluntary generosity. It's about them forcing you to be generous with your money for their causes. Here are the year-by-year portions of AGI that went to charity -- and this includes his contributions to the hate-mongering "reverend" Wright.
2006: 6.1%
2005: 4.7%
2004: 1.2%
2003: 1.4%
2002: 0.4%
2001: 0.5%
2000: 0.9%
Thanks to Americans for Tax Reform for the link.

Update... Reader David J. Phillips confesses, "If I were a man with a suspicious mind, I might believe that the sequential increase in Barack's charitable donations Y/Y was tied to his presidential aspirations. Of course, I am not a suspicious kind of guy."

Posted by Donald L. Luskin at 11:59 AM | link  

YES, MORAL HAZARD -- BUT WHAT'S YOUR CHOICE?   I agree with former Fed economist Vince Reinhart that the Fed's support of JPMorgan/Chase's takeunder of Bear Stearns has a unique dimension of moral hazard -- specifically, inviting speculative attacks on other banks:
...the implicit declaration that a midsize investment bank was systematically important puts any firm at least as big as Bear in the cross-hairs of speculators. In coming days, how can the Federal Reserve turn away another like-sized entity, whether primary dealer or not, that is suddenly in the marketplace's disfavor for having used leverage to borrow at short-term maturities to fund longer-term obligations?
However I fail to understand what Reinhart thinks the Fed should have done instead.
Consider the alternative. Officials from the Federal Reserve could have commiserated with the mendicants from Bear and pointed to the door. The Federal Reserve could have then offered its balance sheet to any financial institution willing to assume the portfolio of risky obligations from the defunct Bear to ensure that the financial system continued to function smoothly. True, the Federal Reserve would be exposed to credit risk, as it is now. But bad behavior would be punished.
Isn't this exactly what happened? If not, how is it different?

Posted by Donald L. Luskin at 7:41 AM | link  


Tuesday, March 25, 2008

NOW THIS IS UNION POWER!   Democrat-driven politics in California has gotten so bad that now unions can sponsor legislation. Poor fool -- you thought only legislators could do that, didn't you? From the New York Times DealBook:
Many in the buyout industry are taking a skeptical view of a California bill that would bar Calpers and CalSTRS, two of the nation’s largest pension funds, from allocating funds to private equity firms that have sold stakes to sovereign wealth funds.

The bill is co-sponsored by the Service Employees Union International, a union that has loudly criticized many of the largest buyout firms, arguing that their leveraged buyouts are hurting the average worker.

Here's my DC-insider friend "Mick Danger":
It is not “unclear what the goal of this legislation is,” as the Sacramento Bee puts it.

The intent is to make investment decisions by fiduciaries more political. In this way, union leaders, acting through their fellow travelers in the Democratic party, can exert control and/or fear over the hundreds of billions invested by pension funds and punish the private equity firms for investing in certain companies targeted by the SEIU activists. After all, CalPERS, for example, has done a terrific job of providing real wealth for its members and it must be punished for multiple counts of capitalism!

See the SEIU website. it overflows with promotions for Obama, their candidate of choice. Recall that Obama was a “community activist” before running for office.

Want to get a picture of your future if Obama becomes President? Watch SEIU leader Andy Stern, not Jeremiah Wright.


Posted by Donald L. Luskin at 10:40 AM | link  

AND YOU THOUGHT YOU WERE A GOOD DAD?   This is a good dad!

Posted by Donald L. Luskin at 10:09 AM | link  

KUDLOW REPLAY   Here's the YouTube video. I guess Larry's producers never got the message that I never want to be on the show at the same time as that smarmy ghoul Gary Shilling. When I heard he was on, I considered walking off the set, but thought better of it. Sigh... the things we do for media exposure...


Posted by Donald L. Luskin at 1:53 AM | link  


Monday, March 24, 2008

THERE IS AN ALTERNATIVE TO WALMART!   Dave Nadig points to this instructive post at Stuff White People Like:
A great way to make white people feel good is to tell them about situations where poor people changed how they were doing things because they were given the ‘whiter’ option. “Back in my old town, people used to shop at Wal*Mart and then this non-profit organization came in and set up a special farmers co-op so that we could buy more local produce, and within two weeks the Wal*Mart shut down and we elected our first Democratic representative in 40 years.” White people will first ask which non-profit and are they hiring? After that, they will be filled with euphoria and will invite you to more parties to tell this story to their friends, so that they can feel great.

But it is ESSENTIAL that you reassert that poor people do not make decisions based on free will. That news could crush white people and their hope for the future.


Posted by Donald L. Luskin at 11:27 AM | link  


Sunday, March 23, 2008

YOU ARE THE PROBLEM, BARACK OBAMA   My DC-insider friend "Mick Danger" has been thinking a lot about Barack Obama's speech on race last week...
It's not too late to talk about the Obama speech on the Reverend Wright. I believe this speech will live on; it may even define the rest of his campaign and his presidency, should he prevail.

Obama explained much. He is correct that it was white-authored racist laws -- Jim Crow -- which perpetuated the system of racism which, in turn, hurt and mangled the Reverend Wright in his youth and from which he still suffers. Let us understand and excuse the Reverend Wright. He is an old man who believes things which are not true. He is hurt and remains hurt. He is not running for president.

I find much to admire in Obama and in his speech, although I wasn’t quite swooning like Peggy Noonan. Someone must have rushed to her with smelling salts because she snapped out of it in time to write her conclusion.

Obama, though, in this speech, does more than walk us through the history of race. He opened a big window on himself. Here’s what my eyes see: a man who seeks to manipulate the public with a false message about why certain Americans are trapped in failure while living in the very same country where success is so common.

I think we need to worry about a guy who gives a clever and thoughtful speech about race in America while lacing its text with heavy doses of class warfare.

Isn't class warfare the multi-culturist's racism?

Obama says failing schools are part of the problem; yes, so true. How about the harder questions such as who let these schools fail? Who keeps them failing? Is it the failing voters in the failing districts who perpetuate the failing policies of a failing unionized, liberal Democratic party monopoly which can only continue to succeed at failing by getting its under-educated, overly emotional voters/congregations to point in anger at “causes” such as racism and shout “Shame!”

Who causes the failing culture which excuses failing students for avoiding any effort or responsibility for learning? Who causes the failing culture which accepts as ordinary a 50 year-old man, unemployed and unemployable, who wears the same costume (baggy jeans, big hat twisted) of the 13 year-old kid he abandoned at age 2? It's a failed culture because it transfers fault from the failing school, from the failing student or from the failing father to a remote, nonexistent boogieman. You can’t solve a problem if you spend all your energy denying it. The problem is not just an abject lack of responsibility, is an out-right celebration of blaming the wrong cause.

Who causes all these failures of today? Rich, white corporate lobbyists?

No.

Today’s failures are caused by you, Senator Obama. You caused this problem by not solving it, by blaming boogiemen, by using the power of words and an actor’s talent for preying on the anger and hurt of generations young and old. You are the cause because you perpetuate a system of failure. You actually figured out how to get more power by denying the real problems. You use your God-given brains and your Harvard education to snooker people far less gifted than you with the same old socialist bullshit. You’re not Moses; you’re Huey Long.

Want to hear a harsh reality about race in the minds of today’s rich, white people?

We want success for “the black community,” not failure. We want you to have better schools, better neighborhoods, and better lives. Want to know why? Because it's safer for us if you are more like us. But, that's not the only reason. It's also because we're mostly nice people and we want more niceness. It's why so many rich, white people support you, Obama.

We would like the Detroit sound to be Motown music again, not gunfire. Some make fun of the ‘50s; we yearn to recreate some elements of that era of deep-down goodness. Back then everyone had hope, at least in our world. Yes, we now acknowledge the complicity of our ancestors that nearly everyone in Reverend Wright's world was trapped by racism.

Imagine how different the opportunities could have been if we could go back in time. Let’s jump back after the Civil War was won by all those non-rich white people and before World War I. It was Democratic President Wilson who re-segregated the federal government because it was employing increasing numbers of black Americans and who excused the KKK as merely a reaction by rural whites to the unfairness of Reconstruction. (You missed the part of history where it was mostly white Democrats who institutionalized racism, didn’t you?)

What’s got your “community” trapped now? Looks like you do.


Posted by Donald L. Luskin at 12:31 AM | link  


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