CountryBoys's Account Talk

from today's Wall Street Journal:

MAY 13, 2009

The Founders put the contracts clause in the Constitution for a reason.

By TODD J. ZYWICKI

The rule of law, not of men -- an ideal tracing back to the ancient Greeks and well-known to our Founding Fathers -- is the animating principle of the American experiment. While the rest of the world in 1787 was governed by the whims of kings and dukes, the U.S. Constitution was established to circumscribe arbitrary government power. It would do so by establishing clear rules, equally applied to the powerful and the weak.

Fleecing lenders to pay off politically powerful interests, or governmental threats to reputation and business from a failure to toe a political line? We might expect this behavior from a Hugo Chávez. But it would never happen here, right?

Until Chrysler.

The close relationship between the rule of law and the enforceability of contracts, especially credit contracts, was well understood by the Framers of the U.S. Constitution. A primary reason they wanted it was the desire to escape the economic chaos spawned by debtor-friendly state laws during the period of the Articles of Confederation. Hence the Contracts Clause of Article V of the Constitution, which prohibited states from interfering with the obligation to pay debts. Hence also the Bankruptcy Clause of Article I, Section 8, which delegated to the federal government the sole authority to enact "uniform laws on the subject of bankruptcies."

The Obama administration's behavior in the Chrysler bankruptcy is a profound challenge to the rule of law. Secured creditors -- entitled to first priority payment under the "absolute priority rule" -- have been browbeaten by an American president into accepting only 30 cents on the dollar of their claims. Meanwhile, the United Auto Workers union, holding junior creditor claims, will get about 50 cents on the dollar.

The absolute priority rule is a linchpin of bankruptcy law. By preserving the substantive property and contract rights of creditors, it ensures that bankruptcy is used primarily as a procedural mechanism for the efficient resolution of financial distress. Chapter 11 promotes economic efficiency by reorganizing viable but financially distressed firms, i.e., firms that are worth more alive than dead.

Violating absolute priority undermines this commitment by introducing questions of redistribution into the process. It enables the rights of senior creditors to be plundered in order to benefit the rights of junior creditors.

The U.S. government also wants to rush through what amounts to a sham sale of all of Chrysler's assets to Fiat. While speedy bankruptcy sales are not unheard of, they are usually reserved for situations involving a wasting or perishable asset (think of a truck of oranges) where delay might be fatal to the asset's, or in this case the company's, value. That's hardly the case with Chrysler. But in a Chapter 11 reorganization, creditors have the right to vote to approve or reject the plan. The Obama administration's asset-sale plan implements a de facto reorganization but denies to creditors the opportunity to vote on it.

By stepping over the bright line between the rule of law and the arbitrary behavior of men, President Obama may have created a thousand new failing businesses. That is, businesses that might have received financing before but that now will not, since lenders face the potential of future government confiscation. In other words, Mr. Obama may have helped save the jobs of thousands of union workers whose dues, in part, engineered his election. But what about the untold number of job losses in the future caused by trampling the sanctity of contracts today?

The value of the rule of law is not merely a matter of economic efficiency. It also provides a bulwark against arbitrary governmental action taken at the behest of politically influential interests at the expense of the politically unpopular. Well? Is this also acceptable? I'm serious, because we are headed this way and I't be interested to hear from someone that agrees with this and why. CB

CB, James and I are on similar pages, politically and spiritually. Wanted to put that out there to frontload this response, and NO! It's NOT acceptable! The Rule of Law is what keeps our country and communities sane and liveable. It's when powerful people circumvent or ignore the Rule of Law that society disintegrates, and it's been equal opportunity for some time now, every day more and more news comes out about corruption in the markets and government ignoring or working hand in glove, facilitating intentionally or naively, neither condition is better when it comes to outcomes. The Chrysler deal is just one of the most recent flagrant developments to come to light.

I have the sense that the Prez has his back to the wall and is coming out swinging at whatever target presents itself, whether it makes longterm sense or not. I'm deeply disappointed, I had hoped that his background in Constitutional Law and analytical mind would help guide him into better policy than his predecessor, but I think his "man of action" sense of Pres responsibility as leader in crisis has gotten the better of him. ie gotta do something, even if its wrong, no time to stop and think things through, his constituency has expectations (tho I will say his constituency is more mixed than he apparently realizes and the expectations were and are not all the same).
 
CB, James and I are on similar pages, politically and spiritually. Wanted to put that out there to frontload this response, and NO! It's NOT acceptable! The Rule of Law is what keeps our country and communities sane and liveable. It's when powerful people circumvent or ignore the Rule of Law that society disintegrates, and it's been equal opportunity for some time now, every day more and more news comes out about corruption in the markets and government ignoring or working hand in glove, facilitating intentionally or naively, neither condition is better when it comes to outcomes. The Chrysler deal is just one of the most recent flagrant developments to come to light.

I have the sense that the Prez has his back to the wall and is coming out swinging at whatever target presents itself, whether it makes longterm sense or not. I'm deeply disappointed, I had hoped that his background in Constitutional Law and analytical mind would help guide him into better policy than his predecessor, but I think his "man of action" sense of Pres responsibility as leader in crisis has gotten the better of him. ie gotta do something, even if its wrong, no time to stop and think things through, his constituency has expectations (tho I will say his constituency is more mixed than he apparently realizes and the expectations were and are not all the same).

Alevin,

That’s good that you and James are of the same mind in accepting bHo’s abuses and are willing to accept the reasoning behind his obvious abuse of the US Constitution.

But to my way of thinking, doing something even if it wrong, is no different than when folks say the ends justify the means or cursing for that matter. It shows a lack of thought and intellect and if doing something even if it is wrong, means trampling over constitutional law, then it amounts to nothing but anarchy and by giving bHo your blessing, or at least your silent acceptance, will just make him bolder to expand further his abuse and reduce more of our freedom.

You know darn well that it’s only human nature, that if you give someone an inch they’ll take a mile or do you believe that bHo is the second coming and will restore the abuses of the Constitution that he is perpetrating? I think he’ll just take more and more of our freedoms, he’s been doing it since day one.

But that is what the major difference between us, breaking the law, especially Constitutional law, is totally unacceptable to me, you find it distasteful, but are willing to except the blatant abuse of power. He may have a piece of paper that says he’s an expert in Constitutional law, but he has no real life experience, except as a community activist.

Real life experience gives you common sense and how real life works. That’s a major misconception amongst the people in this country, that somehow a piece of paper and an “analytical mind” somehow make them omnipotent. From my life experiences, these people consider themselves better than everyone else and know better how to live our own lives, when in actuality, they are some of the dumbest people in the world, because, they think everything must adhere to what they have read in some book. You learn by living.

If he had been a less than a one term Senator from Illinois, named Robert Smith, who gave one great Teleprompter speech several years ago, would you have considered him capable and experienced enough to run our country and protect the future of our children? No? Well that’s exactly what people voted for.

The Rule of Law is being bastardized before our very eyes, and most of America is just blissfully going along with it and unless something very major happens, there will be no reversing the damage done. And his constituency should be the ones, calling BS on him and instead of making excuses and tolerating this breaking of laws that made this country what it was, just so he can be doing something, but you’re defending him either through your silence or hoping things will get better, Well that’ll only embolden him more.

How arrogant of him to think that he knows more than our founding fathers. Our founding fathers lived under tyranny, no real freedom of speech or religion, and I won’t even talk about the press who has fallen down on their job, by giving him a free pass.

Why do you think the Constitution contains what it does. Our Founding Fathers lived it, experienced it and didn’t read it in some book. He’s nothing but a thuggish bully using typical Chitown politics. You do what he says or he’ll make you sorry you even crossed him, threatening the state of California, just in the past few days or so, by witholding Stimulus funds unless Arnold caves into the unions. What the heck happened to State authority?

I also don’t believe in rewarding failure and that’s another difference in us, because you have no problem sacrificing our and our kids future, by allowing bHo to continue with his social experiment. But by condoning his obvious abuse of power over private citizens and companies, just emboldens to abuse his power over other companies. But as Rahim said, the American people better get used to failure getting rewarded. I’m scared of not only of our own gov’t, but what can of life our kids will have.

What can I say, I’ve never been one to just sit idly by and condone or “hope” that things will get better and change. Well we’re getting change, at least that’s one thing you got, when you voted and supported his policies. The only thing that has surprised me with what bHo has done, is the speed at which he is doing it, but then that’s the blitzkrieg strategy, just overwhelm the public, so that they won’t know whether they are coming or going. Never let a good crisis pass, eh, as Rahim is fond of saying.

You and James believe the way you do and I just happen to believe pretty much the opposite or at least I’m willing to raise a stink and try to expose his hypocrisy.

Sorry, I went on so and my sentences are so dang long, but good gracious, there is some abuse of power almost daily by him or his administration, starting from his appt. of the head Tax Cheat, and by keeping silent, it will only get worse and silence is just another form of acceptance.

I have nothing personal against either of you. I enjoy reading both your views on the market, since ya’ll are obviously more knowledgeable than me, so please keep it up.

I’ve rambled much more than I wanted, repeated myself and we didn’t change either of our minds and I’ll keep moaning and groaning, though I’m working on just keeping my yap shut, but in my own room, I figger, what the heck and I welcome anyone to visit and call BS on me or disagree anytime. My place is open to all comers.

No hard feelings? :D

CB
 
CB, did you miss the part where I said "NO! It's NOT acceptable?" Any commentary after that was my thoughts on whats motivating him, NOT ME!!!! Did I or did I not say I'm disappointed, did I or did I not say not everyone that voted for him had expectations that match whats happening now? I do not agree with what's happening. You read things into my response that are not there. I said I agreed with you!!!! What more do you want? :rolleyes::laugh:
 
CB, did you miss the part where I said "NO! It's NOT acceptable?" Any commentary after that was my thoughts on whats motivating him, NOT ME!!!! Did I or did I not say I'm disappointed, did I or did I not say not everyone that voted for him had expectations that match whats happening now? I do not agree with what's happening. You read things into my response that are not there. I said I agreed with you!!!! What more do you want? :rolleyes::laugh:

Alevin,

I sorry I didn’t see the comment “I agree with you” . That’s why I don’t like to debate on the web, because I took your second paragraph as justifying his actions.

"I have the sense that the Prez has his back to the wall and is coming out swinging at whatever target presents itself, whether it makes longterm sense or not. I'm deeply disappointed, I had hoped that his background in Constitutional Law and analytical mind would help guide him into better policy than his predecessor, but I think his "man of action" sense of Pres responsibility as leader in crisis has gotten the better of him. ie gotta do something, even if its wrong, no time to stop and think things through, his constituency has expectations (tho I will say his constituency is more mixed than he apparently realizes and the expectations were and are not all the same)."

I don’t believe in any justification or motivation for breaking the law, that’s where we got off track. You meant it one way and I took it another. Misunstanding is the biggest problem discussing serious stuff on the net.

So please forgive me for misconstruing the meaning of your second paragraph and being to thick headed to understand what you meant. :o Again sorry for my misreading/misunderstanding your post. Men need to be told, at least me, some things a little less subtlely. My wife always accuses me of that all the time. :D

CB
 
The Rule of Law is being bastardized before our very eyes, and most of America is just blissfully going along with it and unless something very major happens, there will be no reversing the damage done.

CB,
There is no way I'd be qualified to match my political or spiritual state of being to James or Alevin - and I've kept my feelings largely hidden. What she was expressing however is the undeniable danger of eroding 'The Rule of Law' and coming on too strong on any issue without taking time to see things through and really analyize the future repercussions.

How arrogant of him to think that he knows more than our founding fathers. Our founding fathers lived under tyranny, no real freedom of speech or religion, and I won’t even talk about the press who has fallen down on their job, by giving him a free pass.

Number ONE - he is a man with male wiring. He is geared towards taking on challenges in a hugely 'short sighted manner' ready to FIX things here and now - with little capacity to appreciate the long range effects. Too focused on what's presently on the plate to see the rest of the table.

Please know - I am not saying this in his defense - and nor do I mean this as a slam again 'MEN'. I'm simply saying that his wiring as displayed from day one - may be too bold; too confident; too self assured - for him to realize the HUGE aftermath of systemic mistakes and dangers he enacts by focusing so strongly on one particular aspect.

Number TWO - he has been 'politically groomed and conditioned' over the years and nothing more represents his 'Core Being'. So everything he thinks and does stems from that Core - and it has little flexability. So the bottom line - even when he is grossly arrogant, short sighted, and down right ridiculous or criminal; he basically has no capacity to recognize this.

Unfortunately he came into the Presidency during perhaps the worst possible time - not only here but throughout the globe. It's unfortunate that his overwhelming aspiration of CHANGING AMERICA for the better is in reality resulting in consequences that appear to be hugely destructive and will likely bring 'us' to a much worse condition down the road.

Number THREE - He is now dealing with an arena that only the President can appreciate. This takes us back to the Obama Conspiracy Thread. He is a pupet being pulled by the same strings and the underlying wheels that were in place - continue to remain in place. The Banks and The Power Players are the ones in charge; not the politicians or the President. Of course he has powerful figures persuading him in this way or that - and his Administration is hugely bent towards an agenda that they want to make sure gets carried out.

Again PLEASE DO NOT THINK I'M SAYING THESE THINGS IN HIS DEFENSE - on the contrary - I believe he chose his Administration for this very purpose and that was 'To have full and unregulated power - God like power - to do whatever he wants to do and have the total confidence that he will be able to squash anything that gets in his way.

I think this reflects the underlying system - the real power players want to hone that perception - so someone like Obama would be the perfect fit.

Why do you think the Constitution contains what it does. Our Founding Fathers lived it, experienced it and didn’t read it in some book. He’s nothing but a thuggish bully using typical Chitown politics. You do what he says or he’ll make you sorry you even crossed him, threatening the state of California, just in the past few days or so, by witholding Stimulus funds unless Arnold caves into the unions. What the heck happened to State authority?

State authority has been lost ages ago - and everything boils down to money. This is why the NUMBER ONE endeavor of every state is to get the Maximum Federal Funding for everything that happens. Why every natural disaster on any magitude is thrown on the shoulders of the General Government - so the States can keep their money. States lose their authority by forcing huge excesses in the State Budget for the sole purpose of maintaining the same huge Budget year after year.

Of course what your saying here partly reflects what I'd said earlier: That States have to maintain a 'REAL BUDGET' with real dollars that add up to expenditures - where as 'The Government' has never had a budget like that (at least while we've been alive).

I’ve rambled much more than I wanted,

Sounds to me like you're just warming up... :) don't stop now

repeated myself and we didn’t change either of our minds and I’ll keep moaning and groaning, though I’m working on just keeping my yap shut
CB

CB - I wanted to believe that 'Things could be different' that 'Things would get better' and there is no doubt that a lot of what has transpired and is transpiring is very scarey - I'VE NEVER SEEN ANYTHING LIKE THIS BEFORE; but I can't help but believe that huge powers are behind the scenes and these powers are making sure that the Media; States, all Businesses, and Countries around the globe are falling in line.

There is probably no more perfect time to bring about enormous changes of global magnitude than during the worst Global Recession of our life. This in itself appears to give Obama full reign - and anyone gaining Global Dictatorship Characteristics is going to be LOST to a Dictator Status.

I am coming to enjoy your revelations and all the more your point of views more and more - but I have this uneasy feeling that we are powerless to do anything other than watch it unfold and see where it takes us.

The main power we continue to hold - is bringing these things to light and making our feelings known. So don't work on keeping your yap shut - but help us see the truth.

Steady
 
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CB - I wanted to believe that 'Things could be different' that 'Things would get better' and there is no doubt that a lot of what has transpired and is transpiring is very scarey - I'VE NEVER SEEN ANYTHING LIKE THIS BEFORE; but I can't help but believe that huge powers are behind the scenes and these powers are making sure that the Media; States, all Businesses, and Countries around the glove are falling in line.

There is probably no more perfect time to bring about enormous changes of global magnitude than during the worst Global Recession of our life. This in itself appears to give Obama full reign - and anyone gaining Global Dictatorship Characteristics is going to be LOST to a Dictator Status.

I am coming to enjoy your revelations and all the more your point of views more and more - but I have this uneasy feeling that we are powerless to do anything other than watch it unfold and see where it takes us.

The main power we continue to hold - is bringing these things to light and making our feelings known. So don't work on keeping your yap shut - but help us see the truth.

Steady

Steady,

I too wanted things to be different, because I had, had enough of Bush, shortly after his 2nd term started, but I knew that neither bHo or Mac was the answer. They are nothing but back benchers. It’s sad, that was our only choice, but I put the blame on the press and their story at any cost regardless whether it’s true or not and the campaign process itself. Heck by the time we got a chance to vote, it was all over. Something needs to be done so the American Public gets more of a choice.

Of course the press really decides who gets elected and the puppetmasters behind the scenes. So we may not have had a choice anyway. Just from watching the market react the past year, tells me that there is more going on than we could even imagine and I’ve come to the conclusion that there motive is to keep us Main Streeters pretty much broke, but they give us just enough hope to continue to invest so they can continue to fleece us. And of course, like an idiot, I’m right there buying stocks.

I’m beginning to believe what Jefferson said will have to occur, to really change things. He said and I’m paraphrasing James ;), For a democracy to survive, blood must be shed every 200 years. So we’re past due and I think 2010 will be a big turning point. Hopefully Jefferson, Thomas and not the perve said this or James will have me googling again. lol

I’m not wired to keep my mouth shut, but I am burning out a little, because it just goes on everyday and there seems to be no end to the abuse.

I believe your on world/Global rule. When I said I was scared of our Gov’t, I really meant it. I worry that our Gov’t will destroy our freedom in conjunction with the UN, before the Chinese or Ruskies ever do. Of course, they all could be working together (one world/Globeal rule), but with the total disregard and lack of respect, for the Constitution, this administration has exhibited, they are the ones I fear of losing our freedoms to.:(

If you don’t hear from me after today, I’ll be in Guantanamo. :worried:

CB
 
Steady,

I too wanted things to be different, because I had, had enough of Bush, shortly after his 2nd term started,

We appear to have Exact Matching views !!!

but I knew that neither bHo or Mac was the answer.

I say our views are Exactly Matched here - except they were the only choice and I choose one - while you choose the other.

But at least we both voted.

Now I had a Utah Dem Political Rep - giving me a little nudge. But he came across as 'more intellectual' - young - appeared less tarnished from the long standing system and I did not want another Bush.

Also I liked the idea of an Africian American taking the Presidency and supported a lot of his views (or what I thought he represented)

CB, we lived through the Civil Rights Movement and back then 'they' were less than people - but maybe a little higher than animals. So there's a 'dream like quality' of seeing things complete and harmonious. At least that's how I felt at the time.

Of course the press really decides who gets elected and the puppetmasters behind the scenes.

Another PERFECT MATCH

Just from watching the market react the past year, tells me that there is more going on than we could even imagine

Perfect Match - if we stop there; in fact that's the only reason why I've decided to join in.

For a democracy to survive, blood must be shed every 200 years.

I believe the original 'Democracy' - and the one that most of us are grounded (brain washed) to believing in has been eroded over the years and replaced with something that is essentially the opposite. In my thinking - this is nothing new - it's simply the general population is having to acknowledge what has largely been hidden over the years. The speed with which we now know things from day to day - and the inability to hide the details - has been something the government and politicians have not had to deal with throughout most of the years.

I’m not wired to keep my mouth shut, but I am burning out a little, because it just goes on everyday and there seems to be no end to the abuse.

That's funny in a way - because you are getting me really fired up. I am just starting to pop out on the scene.

I believe your on world/Global rule.

No I'm dealing with Obama as the President - I simply believe as his power increases he will colaborate with other leaders and his influence and control will spread. That a 'Dictator' type of mindset will likely feed on itself.

My fear is that the underlying powers will push this activity.

I worry that our Gov’t will destroy our freedom in conjunction with the UN, before the Chinese or Ruskies ever do.

No doubt about that - another perfect match

If you don’t hear from me after today, I’ll be in Guantanamo. :worried:

CB

Well it sounds like I'll be there in a few days.

Thanks CB - this was a refreshing change for me. :D:D

Steady
 
My finger is getting itchy to offer a few views of mine own - but all I'll say is that the NYSE resistance at 6000 will fall. That's the previous high in January. Fooled ya.
 
Well it sounds like I'll be there in a few days.

Thanks CB - this was a refreshing change for me. :D:D

Steady

Oh yeah Steady,

The Supremes have had a major impact on the Constitution, by being activist judges and making law, when they should’ve been interpreting it. But that’s history, and all we can do is hang on to what we have without all the various PC police taking away our rights, Just something as little as telling us whether it’s legal to say “one nation, under God” in the pledge of Allegiance. If you don’t want to say “under God”, then don’t, you’ll have to be the one to answer. I just don’t want to be told that I can’t say it or it discriminates again someone. Man this is America., still.

No need to get fired up this closed to quitting time. :D

I’ll keep a cot warm for down at gitmo.:laugh:

See ya later,

CB
 
Birch has such awesome control at all times-except when Ferdinand gets a whiff of a fresh load of course. Proud of ya, Birch, go NYSE!

As for the other, well, I'm a child of the early 70's so I'm somewhere between FlowerPower and Disco in my memories-SO glad disco disappeared, it was around way too long from day 1.

But seriously, my family has been here since colonial days-both sides, and have family documents that show I could be a DAR if I wanted to be. Theremay even be an ancestor's sig on the Constitution itself, if my dad is correct in his genealogical diggings. So I don't take this topic lightly at all. I appreciate your efforts at reminding people what the Constitution says, CB, I think too many people today are way undereducated on the topic and don't even know why it matters. I also appreciate the Bill of Rights and Amendments. Without them, I wouldn't be who I am today-voting rights and property ownership rights included.

As I said in another thread, I'm equal opportunity at yelling at all my reps these days, and I never wrote a letter to any of them up til about 1.5 years ago when this whole mess started smelling to high heaven and the Congress critters just kept rolling in it and wanting to come in the house-NOT! Like I said in the other thread too, my writing efforts aren't getting much attention from any direction, won't stop me tho. When I get fired up enough, I'll write them all again. James' TSP I fund transaction costs are the likely next topic.
 
George Will is considered a conservative, but he's hit the nail on the head here:

Tincture of Lawlessness
Obama's Overreaching Economic Policies
By George F. Will
Thursday, May 14, 2009

Anyone, said T.S. Eliot, could carve a goose, were it not for the bones. And anyone could govern as boldly as his whims decreed, were it not for the skeletal structure that keeps civil society civil -- the rule of law. The Obama administration is bold. It also is careless regarding constitutional values and is acquiring a tincture of lawlessness.

In February, California's Democratic-controlled Legislature, faced with a $42 billion budget deficit, trimmed $74 million (1.4 percent) from one of the state's fastest-growing programs, which provides care for low-income and incapacitated elderly people and which cost the state $5.42 billion last year. The Los Angeles Times reports that "loose oversight and bureaucratic inertia have allowed fraud to fester."

But the Service Employees International Union collects nearly $5 million a month from 223,000 caregivers who are members. And the Obama administration has told California that unless the $74 million in cuts are rescinded, it will deny the state $6.8 billion in stimulus money.

Such a federal ukase (the word derives from czarist Russia; how appropriate) to a state legislature is a sign of the administration's dependency agenda -- maximizing the number of people and institutions dependent on the federal government. For the first time, neither sales nor property nor income taxes are the largest source of money for state and local governments. The federal government is.

The SEIU says the cuts violate contracts negotiated with counties. California officials say the state required the contracts to contain clauses allowing pay to be reduced if state funding is.

Anyway, the Obama administration, judging by its cavalier disregard of contracts between Chrysler and some of the lenders it sought money from, thinks contracts are written on water. The administration proposes that Chrysler's secured creditors get 28 cents per dollar on the $7 billion owed to them but that the United Auto Workers union get 43 cents per dollar on its $11 billion in claims -- and 55 percent of the company. This, even though the secured creditors' contracts supposedly guaranteed them better standing than the union.

Among Chrysler's lenders, some servile banks that are now dependent on the administration for capital infusions tugged their forelocks and agreed. Some hedge funds among Chrysler's lenders that are not dependent were vilified by the president because they dared to resist his demand that they violate their fiduciary duties to their investors, who include individuals and institutional pension funds.

The Economist says the administration has "ridden roughshod over [creditors'] legitimate claims over the [automobile companies'] assets. . . . Bankruptcies involve dividing a shrunken pie. But not all claims are equal: some lenders provide cheaper funds to firms in return for a more secure claim over the assets should things go wrong. They rank above other stakeholders, including shareholders and employees. This principle is now being trashed." Tom Lauria, a lawyer representing hedge fund people trashed by the president as the cause of Chrysler's bankruptcy, asked that his clients' names not be published for fear of violence threatened in e-mails to them.

The Troubled Assets Relief Program, which has not yet been used for its supposed purpose (to purchase such assets from banks), has been the instrument of the administration's adventure in the automobile industry. TARP's $700 billion, like much of the supposed "stimulus" money, is a slush fund the executive branch can use as it pleases. This is as lawless as it would be for Congress to say to the IRS: We need $3.5 trillion to run the government next year, so raise it however you wish -- from whomever, at whatever rates you think suitable. Don't bother us with details.

This is not gross, unambiguous lawlessness of the Nixonian sort -- burglaries, abuse of the IRS and FBI, etc. -- but it is uncomfortably close to an abuse of power that perhaps gave Nixon ideas: When in 1962 the steel industry raised prices, President John F. Kennedy had a tantrum and his administration leaked rumors that the IRS would conduct audits of steel executives, and sent FBI agents on predawn visits to the homes of journalists who covered the steel industry, ostensibly to further a legitimate investigation.

The Obama administration's agenda of maximizing dependency involves political favoritism cloaked in the raiment of "economic planning" and "social justice" that somehow produce results superior to what markets produce when freedom allows merit to manifest itself, and incompetence to fail. The administration's central activity -- the political allocation of wealth and opportunity -- is not merely susceptible to corruption, it is corruption."

No end in sight. :(

CB
 
Birch has such awesome control at all times-except when Ferdinand gets a whiff of a fresh load of course. Proud of ya, Birch, go NYSE!

As for the other, well, I'm a child of the early 70's so I'm somewhere between FlowerPower and Disco in my memories-SO glad disco disappeared, it was around way too long from day 1.

But seriously, my family has been here since colonial days-both sides, and have family documents that show I could be a DAR if I wanted to be. Theremay even be an ancestor's sig on the Constitution itself, if my dad is correct in his genealogical diggings. So I don't take this topic lightly at all. I appreciate your efforts at reminding people what the Constitution says, CB, I think too many people today are way undereducated on the topic and don't even know why it matters. I also appreciate the Bill of Rights and Amendments. Without them, I wouldn't be who I am today-voting rights and property ownership rights included.

As I said in another thread, I'm equal opportunity at yelling at all my reps these days, and I never wrote a letter to any of them up til about 1.5 years ago when this whole mess started smelling to high heaven and the Congress critters just kept rolling in it and wanting to come in the house-NOT! Like I said in the other thread too, my writing efforts aren't getting much attention from any direction, won't stop me tho. When I get fired up enough, I'll write them all again. James' TSP I fund transaction costs are the likely next topic.

Hey Alevin,

I was a 60's child and you hit the nail on the head with Disco. :laugh:

It’s pretty cool when you can trace your lineage like that and that’s really cool that one of your ancestors, possibly was a sig of the Constitution. I’ve got 3 sides I can trace back pretty far. One 26 generations to Aachen Germany in the 1400’ when we were run out due to religious persecution. We came over in the mid 1600’s in a vessel called the Hampsted (notes are at home) and settled in New England. One of my ancestors was even born on the trip over. Then later one fought in the Revolutionary War, so my daughter is also a DAR.

Another branch landed in the Virginia’s in the early 1700’s and spread westward. They were a pretty onery bunch (making shine, sniping at the Kings men, time in the local pokey) and fought against the tyranny in the Rev War, but fought on bought sides of the Civil War. One of my relatives is even accused of shoving a salesmen down a well and left to die, but it wasn’t proven he did it. This bunch read like the early Sacketts as they were hill and mountain people scratching a living off the land, but mainly surviving thru hunting. Also married up with some of the local natives, so I have a little Indian blood from that branch also.

The above 2 branches have been published in great detail, right up to my daughters birth.

Another branch came from the Cherokee Indians and that one is pretty hard to get a handle on any further back than about 4 gens. Indians weren’t real big on keeping records. I guess that’s why the white man were able to run us off our land.

I guess that’s why I remember my father saying land is vey important, because the feds can’t take that from you. Well. He’s changed his tune on that in the past year.

My mom’s side didn’t really get into the genealogy thing like my dad’s side, except one side was southerns and fought for the south, but it gets kinda hazy after that or there are to many skeletons in that closet.

Sorry to go on, but yeah I started my letter writing and griping to the pols, back when the 2 IFT limit was imposed on us and continued, when Paulson started this whole fiasco under Bush, but like you, I don’t believe my efforts amount to much, though Bush backed off the illegal alien/ border issue, so I guess if enough of us write it will make a difference. So maybe we better keep writing because there is strength in numbers.

So I guess all we can do is keep plugging away and hopefully we won’t be too late. I feel the election of Nov 2010, will be a major turning point. Things will either slow down and swing back to the middle or it’ll be full speed ahead towards socialism.

Have a good Friday and Weekend. :D

CB
 
It sure took the brainiace long enough.

Obama Says U.S. Long-Term Debt Load ‘Unsustainable’ (Update2)


President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”

Earlier this week, the Obama administration revised its own budget estimates and raised the projected deficit for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=worldwide

My question to our Gurus out their, besides our dollars having less purchasing power, where do we keep our TSP Funds or do we invest some in hard tangible assets like gold or some other commodity. With all the secondary stock sales (stock value being diluted, wouldn't this also dilute the value of our options), but it beats Gov't takeover.

Maybe there is really nothing we can do, but weather this storm and ride it out.

I don't think I'm the only one w/o the experience needed to make a decision on this, if there is one to be made.

TIA,
CB
 
President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

“We can’t keep on just borrowing from China,” Obama said. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.

No S*** Sherlock !!

That's what we've been saying for years and years.

NOTE: Every President makes this speech - without exception - as though it's some 'New Revelation' - WOW - GEE WIZZ

There is NO WAY possible we can FUNCTION without borrowing.

BUSH - the almighty - ran the Deficit (DEBT) to the highest levels ever. A huge bulk of that was undisclosed - purposely hidden.

OBAMA - the wonder man - has essentially ONLY ONE OPTION to end the worst Recession of our life (let alone the worst Global Financial Crisis) and that is to SPEND - SPEND - SPEND

BUT DOES HE (OR THE UNITED STATES OF AMERICA) HAVE ANY MONEY TO SPEND ?????

Of course they don't because they are TRILLIONS and TRILLIONS of dollars in DEBT - In fact we continue to be at:

THE ALL TIME HIGH - THE WORST DEBT EVER

This message was brought to you by Citizens for Responsible Spending


Have a Grat Weekend CB
 
No S*** Sherlock !!

That's what we've been saying for years and years.

NOTE: Every President makes this speech - without exception - as though it's some 'New Revelation' - WOW - GEE WIZZ

There is NO WAY possible we can FUNCTION without borrowing.

BUSH - the almighty - ran the Deficit (DEBT) to the highest levels ever. A huge bulk of that was undisclosed - purposely hidden.

OBAMA - the wonder man - has essentially ONLY ONE OPTION to end the worst Recession of our life (let alone the worst Global Financial Crisis) and that is to SPEND - SPEND - SPEND

BUT DOES HE (OR THE UNITED STATES OF AMERICA) HAVE ANY MONEY TO SPEND ?????

Of course they don't because they are TRILLIONS and TRILLIONS of dollars in DEBT - In fact we continue to be at:

THE ALL TIME HIGH - THE WORST DEBT EVER

This message was brought to you by Citizens for Responsible Spending


Have a Grat Weekend CB

Yeah Steady with this debt, and the resulting inflation, it's really going to put a hurting on folks, especially those on a fixed incomes, not to mention the reduction in purchasing power of our own retirement funds. I may have to put off retiring in 4 years and work longer, now that would be a drag. :(

My budget director, AKA wife, gave me permission to buy another gun, so I'm off in a couple to see what mischief I can get myself into. :laugh: Mybe I should invest in them, cause the ones I have now have skyrocketed in value and we do enjoy shooting as a family.

You have a good weekend also bud. :D

CB
 
WSJ: Gov't pressuring Bank of America board change

CHARLOTTE, N.C. (AP) - A report Friday said federal officials are pressuring Bank of America Corp. to revamp its board and bring in directors with more banking experience.

The story in The Wall Street Journal called the regulators' move "unusual" as the government does not own a stake in the company, and most of the bank's problems are the result of its purchase of Merrill Lynch & Co., which was advised by regulators.

.......

On Monday, Lewis said the decision on how long he stays wasn't his.

http://www.breitbart.com/article.php?id=D986PO2G0&show_article=1

Now I'm not a defender of BofA or Lewis, but this stinks the high heaven and the Feds pressuring the Bank to change leadership beause of mistakes that were made at the "advice" :rolleyes: of Fed regulators.

This has socialism, thuggery and just out right up to no good, written all over it, not to mention if this is even constitutional? Left the crawfishing and obuscation begin, mybe they can get some help from Pelosi. :laugh:

What we'll this country look like when this naked abuse of the law and power end?:mad: Shoot these bullies aren't even trying to hide it, cause they realize they have the blessing of the America people or have them scared to speak out. Sad, very sad, that so many are just sitting back and letting it happened, but of course they are getting paid for it with MY taxes and those of us that work for a living and are productive.

But hey look on the bright side! We can now go to the local Government bank and get a Government loan to purchase your new Government car. Then with your new Government credit card get your Government insurance and Government health care (Forecasting here). Then drive to your Government controlled air conditioned home. :laugh:

CB
 
President Obama refuses to meet with Governor Gibbons about tourism comments

Earlier this year, the President told an audience in Elkhart, Indiana, "You can't get corporate jets. You can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime." That quote was seen by many as an insult to Las Vegas and as a message to companies across the Nation to stay away from Las Vegas for corporate meetings and conventions.

The Las Vegas Convention and Visitors Authority reports over 400 conventions and business meetings scheduled to take place in Las Vegas recently have cancelled. These cancelled events translate into 111,800 guests in Las Vegas and over 250,000 "room-nights". The cancelled conventions and meetings have cost the Las Vegas economy over $100-million, not including gaming revenue.

"I am disappointed at the hypocrisy shown by this Administration," Gibbons said, "President Obama is coming to Las Vegas later this month for a political fundraiser, but he will not help the struggling families in Las Vegas and Nevada who are out of work because of his reckless comments." Governor Gibbons noted, "President Obama is coming to Las Vegas to raise campaign cash for Senator Harry Reid, apparently our money is good enough for the President, but our tourism, jobs, and economic future are not." Gibbons added, "This is politics, pure and simple, President Obama stood for change, but all he has done is brought negative economic change to Nevada."

http://www.ktnv.com/Global/story.asp?S=10383051

Eh, that story pretty much speaks for itself and the type of person, he is. Just another example of the change he is bringing to Amerika.

CB
 
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