Hedged promises...

Promises are made in every election campaign, and especially in presidential election campaigns.  We're told that one candidate will do this for us and the other will do that for us.  We are made promise after promise, almost on the order of a 'can you top this' game.

Today, as the president-elect makes his preparations for the assumption of office, there is a decided 'tamping down' of his promises.  Those promises are said to have totaled some $135 billion per year.  Those are the promises that can be specifically identified.  There are another 'passel of promises' that we'll never be able to price because they were implied to special interest groups and/or made in somewhat more private settings as deals were cut.

Already, we see and hear that some are "shocked" that their pet things are being relegated to the back of the line so far as promises to be kept.  There is a very simple thing that all should remember, and that is this:  If you vote for a person on the basis of promises made that will favor you or your special interest group, you need to step back and reassess just how you'll make voting decisions in the future.  After the campaigning is done and reality begins to reestablish itself, we realize that not every promise will be kept, that some will but they won't resemble what you expected and that some will result in nothing like what you expected they would.

Today, there simply isn't $135 billion available for the grandiose promises made on the trail to the White House.  And, even the money that may be available will be allocated according to lobbying and the back-room deals in Congress.  Your needs and my needs be damned; there are more important things that have to be accomplished...such as the payoffs to those who got the next president to this point.  And that is the case no matter which ticket won the popular vote.

Character would be a much better barometer with which to gage decisions than promises which were probably only intended to gather a few more votes.  I hope all of us voted on that basis...but I am skeptical.

Bail-out expectations...

It is amazing to me, although it shouldn't be at my age, to see the length of the lines of those special interests seeking a government bail-out.  The Freddie Mac and Fannie Mae sub-prime mortgage debacle (Barney Frank, Christopher Dodd, and Charles Schumer continue to try to hide from their special culpability in all this) pointed out just how shaky the economy was.  That proved to be more than the economy could swallow without massive corrections.

And, it showed the truly global nature of the economy...every country was in a very tenuous position economically and all are now in the tank...except maybe for China and maybe for India.  Even the oil sheiks are pinching pennies or whatever it is they pinch.

Enter stage-left...

The likely actors were lined up before we knew the magnitude of the debacle to come.  The investment banks, the insurance companies, the commercial banking industry, the Wall Street stock barons, the hedge fund managers; all were waiting for their piece of the bail-out.  So some $700 billion was thrown into a thing called TARP and the Treasury Secretary, Paulson, was given the go ahead to steer us through.  Of course, Congress began almost immediately to try to seize the tiller and steer where it thought it could garner the greatest political gains.

Detroit has been in shambles, and that happened long before the most recent economic decline; and that is in no small part courtesy of both federal and state politics and excessive payroll costs, both labor and executive.  The auto makers were 'given' $25 billion for "green" manufacturing change-overs.  That money has yet to be dispensed, by the way, as is so often the case when Congress does something like this.

The Democrats are now working their behinds off to force the Bush administration to move ahead on the next major phase of the 'bail-out' by trying to get a new hand-out through in the coming "lame duck" session starting tomorrow.  The obvious reason behind this is simple, they can then point to one more "failure" on the part of 'Bush 43' when this all goes down the toilet...which is most likely where it'll go.

The Republicans, of course, are trying to sit this one out by saying that the $25 billion of "green" money ought be the bridge that Detroit is seeking, to force the Democrats to finally have to show some political courage of their own come January 20th.  It would make the Republicans happier if they were able to paint the Dems with the brush that had been reserved for President Bush and the Republicans.

Underlying all this action on the 'stage', to which I referred earlier, is the problem you and me are facing as members of the audience for this multiple act thriller/dark comedy.  Yet again, we see that politics trumps everything in Washington, D.C. 

Our representative democracy is the greatest form of government ever seen on this earth, but it sure has its seamy and vulgar sides...and we seem to be witnessing most of it today.

And you and me are the only people who can make that less a problem as we cast our future votes.  We must demand better...and we must punish those who disobey our demands by sending them home!

I find myself in a contemplative mood following the election last Tuesday.  I was not a Barack Obama fan but he is our president-elect and will guide us, in conjunction with the Congress, over at least the next four years.  He is my president-elect and, as he said during his press conference yesterday, "We have only one president at a time."  I really want him to be successful!

There were three articles on the Opinion pages of the week-end Wall Street Journal this morning that I found particularly appropriate in these days of transition.  Maybe you'll find them such as well.

The first, was Jim Towey's piece titled Why I'll Miss President Bush.

The second was Jason Riley's The Weekend Interview with Rahm Emanuel, the newly selected Chief of Staff for President-Elect Barack Obama.

And, finally, an editorial concerning my favorite rising star, Rep. Paul Ryan.

I hope you enjoy these items.

Now that the dust of the election returns has begun to settle, the talk of the governance approach of our new president has taken flight.  I have read several pieces that discuss this subject and heard several discussions on the same subject.  The Wall Street Journal had an excellent editorial today titled Obama's Real Opposition.

The subject of that piece was the old line liberals who will be pushing and pulling President Obama as they wish, to make him decide as they wish him to decide.

There are many who believe that President Obama will actually move to the center left as he takes office and begins to face the daily decisions required of him.  There are also many who remind us of his very liberal voting record and suggest, therefore, that he'll govern from the left or far left.

We are reminded of those with whom President Obama will interact:

• David Obey from our own state who wants to slash the defense budget to get money for his social entitlements.
• Barney Frank who recently said that he thought defense could be reduced by 25%.
• Chuck Schumer who continues to push banks to lend more money even after being heavily involved in causing the Freddie Mac/Fannie Mae problems due to similar tactics.
• George Miller who heads the House Education and Labor Committee who is talking about 'nationalizing' 401K and other private pension plans to free up all that money for other purposes.
• Jim McDermott who chairs the House Ways and Means Committee and who seems to like Mr. Miller's ideas.
• John Conyers who loves the idea of the Europeans indicting President Bush and Bush officials for 'war crimes'.
• Henry Waxman who wants to grab the Chairmanship of the House Energy and Commerce Committee from Rep. John Dingell so that he can really push the global warming agenda.
• Pete Stark who believes that a Canadian-style single payer health care system is exactly right for us.
• Rep. Pelosi whom we presume will retain her leadership post will continue down the very liberal path she has trod to now.
• Sen. Reid whom we presume will continue in his leadership role, although he could find that a difficult task given his miscues so far.

These men are well-seasoned congressional combat veterans who know the inner workings much better than does the new President Obama.  They will stop short of nothing to take advantage of what they see as a 'significant mandate' from the United States electorate.  They are running short of time in which to make the country over into the image they believe is best for us all; they will not be anxious to slow their pace simply because a new president wants that to happen.

President-Elect Obama has seemed to recognize this in his appointment of Rep. Rahm Emanuel (D from Chicago) as his new Chief of Staff.  This is the single most powerful position in any White House.  The person in this role manages the President; he determines who the President will see and what he will hear; he selects those on the staff who will be granted limited access to the President; he will play a very large part in determining the programs the new president will pursue and the order in which various initiatives will occur.  Everything goes through the Chief of Staff.  Everything.

Emanuel is a rough and tumble Chicago-style politician.  He is liberal.  He is going to be a tough Chief of Staff.  The battles between him and those in Congress who believe they deserve the President's ear will be legend before this tour of duty is finished.

I suspect that our new president will be pushed to the left of center very quickly whether or not he wishes to be in that position.  The question in my mind is just how far left of center he'll end up after the first hundred days that seem to be so magical.

He will have inherited a terrible economy and a country with so much debt that it will be able to do only limited things in the way of new programs.  Against that backdrop stand the legions such as described above who simply don't care about this, that or the other.  They are intent on getting their way, on making their imprint seen.

This Congress has it within its power to limit this new president to a single term, as was the case with President Carter, if it forces the new president too far to the left and pushes too hard for what it thinks is now being demanded by a country they believe to be left-leaning like themselves.

I am overloaded with politics!  This election for president has been going on seemingly forever.  Obviously, it has been going on for nearly two full years.  The two final candidates have spent nearly $1 billion between the two of them.  They have filled the airwaves with television and radio advertisements and they have filled the newspapers and mailboxes with written advertisements.

In addition to the presidential campaigns, we have been inundated with congressional campaigning and local senate and assembly campaigning.  Telephones have been ringing with 'get out the vote' campaigns and with 'robo calls'.  Lawn signs have seemed to grow for the past three or four months.  Early voting has been going on for a month or better.

I have watched the 'talking heads' tell me what I should be thinking until I want to throw something through my television screen.  I have seen the Saturday Night Live videos over and over again.  I have seen the late night show clips over and over again.

I have listened to the 'pollsters' explain this and that trying to convince us as to their method's accuracy.  The plethora of polls has produced varying numbers for months on end.  If there are six polls released in a day, there six different sets of numbers.  Exit polls were even wrong last time around.  Why should I put money on pre-election polls?

The candidates seem unable to even agree with themselves.  One tax plan has three or four different versions in as many weeks.  Amazingly, each political party is to blame for everything bad that has happened according to the other party.  Washington insiders dress up to appear on the Sunday morning talk shows and spew the day's 'talking points' as if they are gospel.

We are given the treatment befitting idiots by both parties.  If we are so dumb as to fall for their lines, why in the world are we given a vote?  We would obviously not even be able to find a polling place if we were susceptible to their diatribes.

Political activist organizations are falling all over themselves to sign up new voters.  Mickey Mouse and Donald Duck get registered and we are to feel assured that every vote cast is a legitimate vote from a legitimate voter.

Senators running for re-election are convicted of accepting bribes.  Congressmen who took money from Fannie Mae and Freddie Mac like it was going out of style are now sitting in Washington meeting rooms with the look of the pious telling us why it was someone else's fault that our economy took a nose dive.

Re-election to office is so nearly automatic that we citizens ought to be examined carefully to assure full mental faculties before we permitted to get close to a ballot box.

I am tired and it isn't even election day yet.  I am disgusted with what we have permitted to happen in our country.  I am disgusted that so many of my fellow citizens seem to fall for the largest promise of good things if we'll simply elect the right people from the right party.  Elect me and I'll give you this; no, elect me and I'll give even more than he will!

Have we lost our senses completely?  Do we really think that government creates anything?  Is it possible that we can all get a tax cut, especially when tax reductions from one administration will be ended?  Is it really possible for 95% of Americans to receive a tax cut?  How is it that we can reduce taxes when we have the national debt that we have?  How is it that we permit ourselves to be hoodwinked on a regular two year and four year cycle?  Should we really end our foreign trade deals?  Will we be able to have what we want when others don't get what they want?  How will we keep our economy moving when we refuse to recognize that we can't possible get to the level of greenhouse gas emissions the various players are telling us they'll get us to in the time span allotted by their plans?  Where do we think the money for such programs is coming from?

Are we nuts?

I have political overload, and I fear it isn't going to end on the evening of November 4th

The Journal Sentinel released its report for the latest period and the news was a continuation of the trend that has been apparent for many newspapers nationwide.

The Sunday edition dropped 3.8% and the weekday edition dropped 3.9%.  My family has become one of those that dropped the weekday edition at our renewal a week or so ago.  I now find my daily news using JSOnline during the day and settle in with a lap full of newspaper on Sundays.  I have had the tactile sensation of a newspaper in my hands for nearly so long as I can remember, and I confess that I miss that experience.  As stated in a much earlier Blog, I delivered the La Crosse Tribune for several years while growing up near that city so I'm accustomed to having smudged fingertips from the newsprint.

I was frankly surprised during a recent meeting of Bloggers when I asked the group nearest me about their subscriptions.  I was in the minority since most had already dropped their print editions.

The newest iteration of JSOnline is improved and more easily navigable from my perspective.  I suspect that more and more people will make the decision to discontinue their daily print edition.  The users of JSOnline continue to increase and the new version should assist that migration...if that is desired by the Journal Sentinel organization.  They find themselves in a bit of a fix.  On the one hand, they want to be in a leadership position as the shift continues.  On the other hand, they need to find ways to boost their revenue stream to offset the loss of subscription money and advertising dollars, and the advertising doesn't seem to have kept pace with the shift from print to electronic media.  Part of that is obviously about the economy, but to what effect may be hard to measure.  If GM and Ford and Chrysler continue to become shadows of themselves, and if their major dealers either go out of business or downsize, advertising dollars will get more and more scarce.

I believe that much of this movement has been driven by the rising prices caused in large part by the price of oil and all things related.  Newsprint is among the real cost increase issues for publishers.  That goes away when printed newspapers are no longer printed.  The leap from the historic "paper", though, is not assured to be successful; we see the struggles of the majority of publishers across our nation.  Those that have significantly diversified, as has the Journal Sentinel organization, should have a better outlook as this migration continues, but nothing is certain in today's economy.

People costs are also a significant factor and we've seen the staff cuts that have been made a couple of times so far.  I suspect there is little if any fat left, so that future cuts will be felt in the overall quality of the effort.  There are those who would claim that is already an issue and that this may be hastening the outflow of subscribers.

Milwaukee is by no means an isolated phenomenon in this regard.  The New York Times and the Los Angeles Times both saw continuing declines.  The old stalwart "Christian Science Monitor" has just announced that it is going to end publishing a print paper by next April.  There will be many more casualties before this storm has calmed.

I received an e-mail containing the following quotations and thought it simply had to be in front of as many readers as possible as we approach perhaps the most important election in my lifetime.  Much food for thought follows:

• Suppose you were an idiot.  And suppose you were a member of Congress, but then I repeat myself.---Mark Twain
• I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.---Winston Churchill
• A government which robs Peter to pay Paul can always depend on the support of Paul.---George Bernard Shaw
• Democracy must be something more than two wolves and a sheep voting on what to have for dinner.---James Bovard, Civil Libertarian (1994)
• Foreign aid must be defined as a transfer of money from poor people in rich countries to rich people in poor countries.---Douglas Casey, classmate of Bill Clinton at Georgetown
• Giving money and power to government is like giving whiskey and car keys to teenage boys.---P.J. O'Rourke, Civil Libertarian
• Government is the great fiction, through which everybody endeavors to live at the expense of everybody else.---Frederic Bastiat, French Economist (1801-1850)
• Government's view of the economy could be summed up in a few short phrases: If it moves, tax it.  If it keeps moving, regulate it.  And, if it stops moving, subsidize it.---Ronald Reagan (1986)
• I don't make jokes.  I just watch the government and report the facts!---Will Rogers, Humorist (1879-1935)
• If you think health care is expensive now, wait until you see what it costs when it is free.---P.J. O'Rourke
• In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other.---Voltaire (1764)
• The inherent vice of capitalism is the unequal sharing of the blessings.  The inherent blessing of socialism is the equal sharing of misery.---Winston Churchill (1874-1965)
• What this country needs are more unemployed politicians.---Edward Langley, Artist (1928-1995)
• A government big enough to give you everything you want, is strong enough to take everything you have.---Thomas Jefferson, Virginia Patriot (1743-1826)

 Some things, it seems, never change.

There is more and more speculation as to the potential that we'll see a 'clean sweep' by Democratic candidates on Tuesday, November 4th at both the state and federal levels.  I hope that isn't the way it turns out, but I'm tiring of being beaten about the head and shoulders every time I read a newspaper article or watch the bulk of the television news items.  Maybe that is the intent.  If us conservatives can be sufficiently demoralized, maybe we'll just stay home.  Not this conservative!

What do I mean by 'clean sweep'?  I refer to the potential that both the Assembly and the Senate in Wisconsin will see a sufficient Democratic majority that will be able to pass anything they wish in spite of the number of Republican votes that could be massed, with assurances on most such items that those will be signed into law by the Democratic Governor Doyle.

Similarly, I refer to Democratic victories in both the U.S. House and Senate that will be Republican-proof and that will likely find favor with a Democratic President Obama.

Jay Weber has done a good job on setting forth 23 items that could be part of the triumvirate of Sen. Harry Reid (D), Rep. Nancy Pelosi (D) and a President Obama and you can find those by clicking here.  Things included on Jay's list include renegotiating NAFTA, ending secret ballots in union organizing, government-run healthcare encroachments, reintroduction of the 'Fairness Doctrine' to control conservative access to the airways, and so on.

At the state level, we could easily see state-run health care, the increase in costs of education, ever larger portions of our income going to state and local taxes,  more and more loss of personal freedoms and so.

There has been, in most of our history, a certain "check and balance" relationship in most of our governments so that not everything that was proposed was ever likely to be passed.  That 'protection' could disappear for years if we see the 'clean sweep' at the state or federal levels, or both, as the result of our national election on November 4th.  Our country tends not to flourish well under such governments regardless of party in power.

Vote your conscience next Tuesday!

Main Street & The World...

It wasn't all that long ago that I wrote about the St. Francis Bank being acquired by a northern Illinois banking company called Mid-America followed by the take-over of Mid-America by Cleveland-based National City Bank.

National City Bank has had its problems, as have many banks, with poorly performing mortgage loan portfolios and its stock has been in the dumps for some time.  It received a $6 billion infusion of cash not long ago from a private equity group by the name of Corsair Capital.

We'll have a new bank, at least a new bank name, in our world.  National City Bank agreed yesterday to be purchased by the PNC Corporation which is based in Pittsburgh.  National City "agreed" under duress since the government had told it to either get itself acquired or fail.  The PNC purchase is expected to close by year-end, and is being financed by a government infusion of $7.7 billion, some $5.8 billion of which will go for this deal.  The Corsair Capital group squeaks through this deal whole since it had the sense to build some protective language into the deal it did earlier this year.  That begs the question of why you and me are always at risk when the big capital organizations can do 'sweetheart' deals.

I went through this 'dry' explanation of the change for the simple reason of reminding us of just how global is our economy and of just how much each of us has at stake in the world-wide financial problems now on the front pages.  The people whom I see when I bank are about to get their fourth set of bank 'logo' clothing before the first set ever showed signs of wearing out.  They are about to be "treated" to the need to learn another banking system and another banking language.  I hope they all remain in place because they do an excellent job at customer service!

Even though we live in Germantown, we can't hide from the world wide realities of economics.  We're subject to the ups and downs of the global stock exchange system as much as we are to the ups and downs of Wall Street because it is all inter-connected.  The 'futures' trading in Japan and China set the tone for the rest of the world as it awakens to another day.  OPEC makes our gasoline prices fluctuate when it decides to reduce production...except for yesterday when it dropped production 1.5 million barrels and saw the price go down by $4 per barrel instead of rising as it had expected.  Even the oil barons are flummoxed with the current 'goings-on'.  It isn't just hitting you and me, although admittedly we feel it more intensely since most of us don't have the luxury of big cash cushions.

Another thing this should remind us of is this:  our government makes decisions we don't know about until after the fact, and those decisions are often critical to our existence.  We are the ones who determine who leads that government as we will again in a week or so.  There are already discussions going on in Washington that would impact our individual 401Ks dramatically and that would see the money accumulated being used by our government as it sees fit with guarantees of interest made to those of us holding the account.

Those promises are only so good as our economy and are only so trustworthy as our government.  Let us not go down the pathway that Argentina is on where we permit nationalization of individual accounts.

The following words are variously attributed to both Abraham Lincoln and to Rev. Wm. J.H. Boetcker (circa 1916).  Without debating from whom they flowed, I thought it very important that these be shared during this particularly important election season.

You cannot help the poor by destroying the rich.

You cannot strengthen the weak by weakening the strong.

You cannot bring about prosperity by discouraging thrift.

You cannot lift the wage earner up by pulling the wage payer down.

You cannot further the brotherhood of man by inciting class hatred.

You cannot build character and courage by taking away men's initiative and independence.

You cannot help men permanently by doing for them what they could, and should, do for themselves.

Powerful words and powerful thoughts, indeed!

There is a very real sense that we have been placed in a new world of politics.  I'll call it Politics 2.0 signifying the coming of a new genre.

As I watched the debate last evening involving Barack Obama and John McCain, it was as if I was witnessing a battle between the old and the new politics.  And, that is exactly what we've been hearing during this twenty-month plus campaign.  Obama has been pointedly making himself the leader of Politics 2.0 so far as the race for the presidency.

Obama has appealed to those of us who are younger and has been successful.  He outlived his Democratic challengers and he appears poised, if we are to believe the pollsters and the mainstream media, to become our next President.  He is a masterful communicator so far as style points.  Too many of us are unable to, or don't feel the need to, dig beneath the smooth, suave surface to get at the underlying meat in his answers and in his speeches.  He has run a campaign of nearly two years in length and we are still waiting for some definition to his talking points; we'll wait until after November, 2008, too.

Obama has deployed one of the most effective campaigns I can recall, and I've been an active observer since Au H20 (Goldwater) days.  He has had an advantage in campaigning against one of the 'old' pols who can 'barely' communicate when viewed in the glow of Obama.  He has, in my opinion, had the advantage of having the mainstream press firmly in his pocket for well over a year, if not longer.  I have seen mainstream "journalism" largely trumped by Politics 2.0, and I have seen the Internet used to very nearly its current maximum potential by one candidate. 

As if this wasn't sufficient, we see our economy reeling and that almost always portends defeat for the party in the Whitehouse without regard to the cause or finding of true fault.

I have made no pretense as to my views of the final two candidates.  I am a fiscal and social conservative and there is but one place for my vote.

That having been said, I can say that I am fearful of a Democrat sweep that leads to control of the Congress and of the Whitehouse.  If that should occur, I will see much of which I disapprove happening in our country.  If there is nothing remaining but a vocal, versus meaningful, minority, the minority's voice will be silenced except for the Internet and talk radio for the next four years.

While our federal government usually takes a long time to get anything accomplished, that is usually because the two-party system is sufficiently active and potent to thwart some of the less-than-wise moves attempted by the majority.  If the Democrats sweep to the degree that they have absolute control in both the House and the Senate, and if they have Barack Obama in the Whitehouse, we'll see an activist government such as we've not before witnessed.

We will see Supreme Court justices that will re-interpret the constitution to their liking.  We will see congressional hearings into everyone who ever served in the Bush administration.  We'll witness the complete take-over of healthcare by the government.  We'll see 'progressive' taxation policies that will cripple the economy and stifle the growth of businesses.  We'll see states governed by liberal majorities creating laws recognizing same sex marriage.  We'll see attacks on our rights to keep and bear arms.  We'll see our education system subverted to become a political indoctrination tool beyond that which already exists.  We will see an inexorable slide toward socialism.

I hope that I am wrong...but I fear that I may be correct.

As the recent chain of events concerning our country's economy has unfolded, I found myself thinking about 'slippery slopes' and just how easy it would be for us to begin a slide that we'd be unable to overcome.

We have just partially nationalized our major banking entities.  We have effectively nationalized the AIG insurance giant.

I have never felt so close to the point where it could become possible that our country would become the United Socialist States of America.  There will be those among you who see this as pure and unadulterated blasphemy.  There will be those among you who will nod your heads up and down in total agreement.  There will be those among you who have not given this any thought; and among that group there will be those who now begin to think about nationalization/socialization, and there will be those who simply aren't concerned.

We have a candidate for President of the United States of America who has openly stated that he favors re-distribution of wealth so that those on the lower rungs of the economic ladder can enjoy the fruits of our nation's wealth.  And, we have a mainstream media that seems to have missed this statement in its entirety...or we have a mainstream media that agrees with this stated position...or we have a mainstream media that doesn't care.  This is a socialist mantra.

We seem intent on moving ourselves into government run and controlled healthcare.  Our government has become our 'nanny' concerning all kinds of things from the food we eat, to making decisions for us because it knows better than each of us does.

While I have thought, until now, that the alteration of our country to that of a socialist state was so preposterous as to be silly to contemplate, I have come to see how it could happen in the comparative blink of an eye and just how close we have come to that possibility.

The presidents of the major banking firms in the United States met with the Secretary of the Treasury for about an hour, and then left the room having signed off on a deal that has the United States of America becoming the owner of preferred stock in each of those entities.  These bank leaders didn't know what the proposition would be when they entered that room, and they didn't even consult with their respective directors.  They felt as though they had no choice.  This happened shortly after AIG was 'purchased' by the United States of America for $85 billion that was later escalated to just short of $125 billion.  AIG felt as if it had no choice.

We have an automobile industry begging for similar treatment after seeing their stock erode to 1950s prices.  These industry leaders feel as though they have no choice.

This is written in one of the last socialist strongholds of the United States...Milwaukee, WI.  I know several people who prefer the 'good old days' under socialist mayors.

So, as much as you might suspect my sanity at this point, I would submit to you that we have already taken several steps down that slippery slope in the name of protecting our economy.  Our economy got to this point through actions taken and not taken by our politicians.  That was, I believe, simply coincidence...but it could've been part of a conscious plan.  It makes little difference after the fact.  We delude ourselves if we think it impossible.

Once we are at the bottom of the slippery slope, we'll not climb back in our lifetimes.  We were warned years ago about "irrational exuberance".  "Irrational panic" is a much worse taskmaster.  Incremental erosion of our freedoms is insidious, and, too often, we aren't even tuned in sufficiently to comprehend what we're losing. 

We drink the kool-aid and then wonder how in the world we got to the point we're at.

Kimberley Strassel of the Wall Street Journal has done a good job with her Obama's Magic opinion piece in today's Journal.

There will be a lot of "magic" required to accomplish all that he has promised us, but we're accustomed to 'rude awakenings' following  Presidential campaigns.

The story of five school districts that invested borrowed money in an attempt to earn larger returns is back in the news as the result of their court case against the two organizations that sold them the deal.

This is an up close and personal portrayal of the rather esoteric things referred to as CDOs...Collateralized Debt Obligations.  The CDOs that were purchased contained some of the Fannie Mae/Freddie Mac garbage that blew up a short time ago.  So, bad mortgage deals that some politicians wanted made so that their constituency would continue to vote for them have come home to roost in five school districts in Wisconsin.

Up until recently, we've listened to news and watched hearings on television and been somewhat removed from the whole discussion.  Now we watch the stock market lose something on the order of thirty percent of its value even after the "bailout" plan was enacted.  Those who have investments see their hopes being delayed, if not dashed.  People thinking of retiring within the next year to five years are probably re-thinking if they counted on their investments as part of the money they'd live on in their 'golden years'.

All that is bad enough, but now we learn that these school districts were owners of some of the 'crap' mortgages.  The districts have tried to portray themselves as 'innocents' but news articles today appear to destroy that position.  They were apparently told about the 'risk' but chose to ignore it for a greater return than otherwise available.

They seem to have known that they could lose their entire investment if the default rate rose above 4.95% but would remain whole if the default rate stayed beneath 3.95%.  They were also told, apparently, that the "highest historical default rate in the past 23 years" was 1.85%, so where was the risk?

The risk was in the Fannie Mae/Freddie Mac garbage loans that were a part of these 'great deals', and the default rate did exceed the 23 year high.  And some of our (the nation's) elected officials were pushing for even more.  100% mortgage loans to questionable credit risks is simply stupid.  These politicians wouldn't have lent their money in that manner, but they were really anxious to get our money into those deals!

The Wall Street Journal published a special section on the environment today and the primary effort was to help us understand the concept of a carbon footprint.

I need the help!  I had no ability to visualize what a pound of carbon dioxide would look like.  I am a bit of a skeptic about carbon footprints since we're still here and the natural forms of introducing carbon dioxide into the atmosphere have been going on forever.  I am a bit of a skeptic because this wasn't talked about until Al Gore began his 'environmental religion'.  I am a bit of a skeptic because what started as a 'global warming' crisis has been altered to a 'climate change' crisis.  I am a bit of a skeptic since I've yet to be convinced that science supports the broad contentions made by the proponents of 'climate change'.

What have I learned so far?  Well, supposedly each of us in the United States releases 118 pounds of carbon dioxide into the atmosphere every day.  That is an awfully precise number considering that science is not in sync as to precisely how carbon footprints ought to be determined.

I learned that an average refrigerator would hold about 2 pounds of carbon dioxide gas.  A pound of carbon dioxide has the volume of 8.2 cubic feet.  I was reminded that carbon dioxide in its solid form is what we call 'dry ice' and that bubbles in our soda are made from this gas.  I learned that if I were to buy a Toyota Prius, to be as good as I could be, that purchase would equate to putting 97,000 pounds of carbon dioxide into the atmosphere.  That number is derived from the following and assumes that I'd drive the car 127,000 miles and get 42 miles per gallon:

• making the materials for the car (steel, plastic, etc.) [12.9%]
• assembling the car [5.7%]
• producing the fuel and transporting it to the gas station [15.8%]
• fuel use in the car [52.7%]
• maintenance of the car [4.7%]
• disposing of the car [8.3%]

Then, I read of Car Free Days (CFDs) in Seattle.  This seems to me another fad in the array of fads associated with Eco activism.  Seattle closes city streets, posts signs explaining that to drivers, and provides notices to city residents.  All this takes labor, and fuel and other energy forms...all for something that no one has yet tried to measure...maybe fearing that the theory would be disproved.

I confess.  I continue to be the skeptic.  Maybe I will be proved correct, or maybe I'll be proved incorrect.  I don't know.  I suspect that I probably won't know that answer yet if I live to my normal life expectancy.

All this reminds me of the seeming importance of symbolism.  If we can be seen as doing good, it really makes no difference if what we're doing is good, or not good.  It is the appearance about which we're concerned.

Then there are the louts of the planet such as me who aren't yet convinced that we ought to be concerned.

This video collage is most informative as to the sub-prime problems we are dealing with today. 

It seems that there were attempts to rein these two quasi public/private entities in over the years but one party seemed to stand in the way.

You can watch it for yourself and form your own conclusions.

Our news is dominated by talk about the "bailout" that has been prompted by the collapse of the sub-prime mortgage market.  Even at its current value, the bailout supposedly carries a cost of nearly $2,400 for every man, woman and child in the country.

This hits us in the last 45 days or so of the race for the presidency of our country.  It hits when we face the election of those who will represent us in the House of Representatives for another two years. It is, as so much has been, being used as the proverbial "political football".  It also threatens to become the largest single "pork-barrel" conveyance we've seen in recent history.

Many will argue where the blame lies, but, at the moment, I am more concerned with how this 'package' will look when it finally emerges from the 'back rooms' on Capitol Hill.  Actually, I am more concerned with what will be included and obscured by political double-speak.

I must confess that I have little faith in too many of the politicians that will participate in this decision-making process to make me at all comfortable that we'll be best-served, as a nation, with the outcome.

I see the results of past such situations.  I see that, when the dust settles, we find too many gifts to too many people of our hard-earned money cloaked in fine language but smarmy nonetheless.  Our politcos cannot seem to help themselves when there is so much opportunity to grab so many dollars dangled in front of their eyes.  And, too many of those dollars may find their way back into the pockets of these decision-makers in the form of sweetheart deals.  It is too easy for the recipients of multi-million dollar 'gifts' to give a few hundred thousand of those dollars back to those who made it all possible.

I marvel at the millionaires that have been made on Capitol Hill.  I look back at a congressman who had taught grade school, was elected and served in congress, the vice-presidency and the presidency and who, somehow, ended up with ownership of a chain of television and radio stations.  I see a man elected to and serving as majority leader of the Senate who somehow managed to buy up property that sits perfectly in Nevada so as to now be worth many times the original price.

I suspect that Lyndon Johnson, were he alive, and Harry Reid, if pressed, could give answers to their respective 'breaks' that would seem proper...and that might, in fact, be true.  But, there just seems to be too much of this kind of thing to permit me to be other than suspicious.

Those are just two stories.  There must be hundreds or thousands of such stories.  These are people who were thought to be honorable servants of the people.  These were people to whom voters gave their trust only to learn years down the road that they had misplaced that trust.

Add to this, the recent revelations of favored mortgage deals that none of we mere taxpayers were ever given the opportunity to receive.  These deals were in the news only several weeks ago, and those people are now making the 'back room' deals using our money.  The news of tax payments not having been made by an official in charge of tax law was just in the headlines a week or so ago, and that man is playing in the big leagues of 'deal making' a few days later.

They make these deals as easily as we would make deals in a game of Monopoly...but they use real money...if there is such a thing.  And that real money comes from us...the 'us' who pay income taxes.  They make deals that protect them and that protect their large campaign donors.  They make deals that will attract even bigger donations in the future.

I dislike sounding like such a skeptic...but I am.  And, I don't think it is entirely my fault that I'm a skeptic; I've had a lot of help over the years from a lot of politicians.

So...Bailout or Boondoggle?  What's your guess?

I listened to Senator Joe Biden telling me and the rest of the country that those of us who pay income taxes needed to pay more.  He went on to tell me how patriotic that would make me feel.

Given that some 48% of Americans do not pay any income tax today, I guess they are being deprived of the patriotic feeling.

Given that some 5% of Americans pay 80% of the income taxes paid in America today, I can only imagine how patriotic they must feel every day as they awake to the knowledge that they'll be paying even more taxes.

Senator Biden has served more than three decades in the Senate, and has probably made nearly every gaffe possible over the course of those thirty-some years.  I don't know that this statement was a gaffe so much as it was testimony to the fact that he and many more of our politicians are so out of touch as to be laughable...if it didn't hurt so much when I laugh.

It was this ruling elite that aided and abetted those who led Freddie Mac and Fannie Mae.  It was this ruling elite that made it possible for those who had no business buying homes to become homeowners...for a few months until it caught up with them...so we all could bail them out without having learned a life lesson that most of us have come to understand.

Our scheme of income taxation began a long time ago.  It was well-intended then but has grown out of control.  Our tax laws today represent a gigantic tumor sucking the very lifeblood from the economy.

But...we'll all feel more patriotic if we'll just send a few more dollars on to Washington so that the grand old "income redistribution" scheme called the tax code can continue to dole out money to earn votes for those doing the doling.

And, contrary to the current elitist mantra, taxes are too high, and those taxes threaten our very existence.  Government does nothing to earn any money, but it is capable of spending ours as if there is no tomorrow.  And, they may succeed at the rate they're going...maybe there will someday be no tomorrow.

Interestingly enough, none of the elitists appear to be at all worried about where their next free meal is coming from. 

Even Rep. Charlie Rangel, head of the committee that oversees tax code, has to pay taxes...except he doesn't seem able to understand that as well as he ought.  But, that's okay.  He has hired a forensic tax accountant to help him obfuscate even further so that he can maintain his office and his appointment and thereby continue to devise new schemes to take more of our money from us to be given to those who haven't yet learned that we're all expected to work and contribute.

On the other hand, maybe they're the smart ones.

At the risk of being labeled a "Slanted Republican Extremist", I have to say that I have seldom seen the enthusiasm amongst conservatives that I am seeing today following the speech by Sarah Palin last evening.  To set the record straight, by the way, I belong to no political party and believe my self to be a fiscal and social conservative.

That having been said, I was very impressed with Ms. Palin last night.  She strikes me as the person next door.  I think she strikes many Americans as the person next door.  She isn't the super-sophisticate that we see in the Speaker of the House.  She isn't the elitist we see in the Senate Majority Leader.  Sarah Palin is the person next door...and I hope she never changes.

I have been taken to task by liberals because Sarah Palin isn't perfect and her family isn't perfect.  No one is perfect, and I don't expect that of anyone since I am far from perfect.  I really don't understand some of the people who have made comments on the earlier Blog concerning Sarah Palin.  I must simply not be 'with it'.

There seems to be a palpable fear emerging from the liberals today that must stem from her performance last evening when the press set her up to 'have to hit it out of the park'.  She has befuddled them all because she did just that.  She hit it out of the park and made it look easy.  I have heard her labeled as a 'natural' speaker.  I believe that may be true.  She handled herself extremely well.  She took shots with a smile on her face that made her seem much less shrill than Hillary when she took shots.

Sarah Palin will see some rough spots before this is all done, but I suspect that she'll see far fewer rough spots than I might've guessed a couple of days ago.  She has a real gift of being able to connect with people.  And her connection seems to be at a deeper level than simply surface.  She seems able to touch people where they're unaccustomed to being touched.

There is a toughness that reminds me of Margaret Thatcher.  I see a communicator that reminds me of Ronald Reagan.  I see the person next door.  She isn't unapproachable; she is very open and tells us what she is thinking without the typical feigned eloquence we've all come to expect and despise from the usual politico.  As I said earlier, she is like you and me...at least I think of her as being like you and me.  And that makes all the difference in the world.

I believe we are witnesses to something really special, and I suspect that liberals are simply beside themselves trying to determine how best to beat her up enough to keep that something special from happening. 

The other thing we are likely going to be witness to are the downright dirty tactics that have already begun to be unrolled by the liberals.  The mainstream press has finally dropped all pretense of impartiality.  The 'talking heads' have almost begun to foam at the mouth.  When the press finally steps back after this is all done, and it begins to understand the damage it has done to itself, I can only hope that it goes on a long soul-searching retreat so that it can look deep inside and maybe, just maybe, find the proper road to follow in the future.  If it doesn't, the press as we've known it to this time will be gone.

Us 'working stiffs' aren't as stupid as they've given us credit for being.  We can actually think for ourselves.  We are able to reason and we are able to determine what we each think is right.  We know what needs to be done for the country.  We can actually make determinations for ourselves.

When a Sarah Palin touches us, we know we've been touched.  And we know we've been genuinely touched; not manipulated as is the case with some others seeking office.

What an experience.

Labor Day has arrived and signals the 'end of summer' as nights get chillier and children and grandchildren go back to their respective schools.  Ideally, we will enjoy a luxurious fall season with leaves ablaze and many beautiful days before snowflakes once again arrive.

Labor Day was formally decreed across the United States in 1894 by then President Grover Cleveland.  The new federal holiday was swiftly approved by Congress and has been with us since.

Labor Day has, like so many special holidays, lost a lot of its meaning for many people.  For some, it is simply another three-day week-end.  For others, it is the time when the Muscular Dystrophy fund drive is hosted by Jerry Lewis, and so on. 

I have never been a member of organized labor, unless by accident during my six-week 'career' at the Estwing hammer plant in Rockford, IL in the early 1960s.  I have friends who were and still are members of unions.  I have many acquaintances who were and/or are members of unions.  My feelings about the labor movement tend toward the position that they were very important during the later years of the Industrial Revolution and during the early third of the 20th century.  Since that time, I am convinced that unions, in general, have lost the essence of what made them so dominant during those times.  Child labor laws have curtailed that practice.  Employers have come out of the dark ages in most cases and recognize they must treat their employees as humans who are part of the reason for the success or failure of their business.

Among the strongest unions today is the SEIU (Service Employees International Union) run by Mr. Andy Stern.  He has proved to be a consummate organizer and is one of the brightest people in organized labor today of which I'm aware.  I see entities such as 9 to 5 with the soon to be held referendum that would bind employers in Milwaukee to offering sick leave for all employees.  These organizations tend to signal the changes that have been occurring in our country.  The strongest union is one that organized workers in the 'service' sector.  The old United Auto Workers (UAW) struggles with the malaise felt throughout that industry.  Coal miners no longer have the clout that once was theirs.

I see the Democrats in Congress still carrying the water for labor with such things as the open vote effort that would certainly favor organizers and quiet the opposition.  Political power changes hands periodically and that has a great deal to do with the ebb and flow of organized labor.  Labor organizations still have the ability to mobilize tens of thousands of 'volunteers' to get out the vote.  Republicans can only stand in the shadows and lament that they do not have similar clout.

I wonder where organized labor will be in a decade or two or three.  I don't know but I do recognize that change will continue at the same or a faster pace.  Will organized labor find ways to make inroads in India or China?  Will those governments permit such organizing?  If the government of China permits organizing, I wonder at what cost to the workers?  Will unions in the U.S. come together to maintain a level of strength that many have already lost individually?  If so, where will the new leaders come from?  I doubt that heavy industry will be the source of leadership; it more likely comes from the service sector of our economy given the massive shifts in employment in our country.

At any rate, I trust you will have or have had a very pleasant Labor Day 2008.

You and me are really great people.  Why is that?  Well, we seem to help bail out just about everything that bangs on Washington's door.

A short time ago, the sub-prime mortgage companies received their bail out; likely the first of their bail outs since Fannie Mae and Freddie Mac are still in the throes of that mess.

Now the automobile industry is in the queue for what yesterday was about $25 billion and today has already climbed to $40 billion according to the press.

Is this a proper use for the tax dollars that are extracted from each of us?  Should we be funding these bail outs for industries that essentially have gone bad because of their own doing?  If you or me were responsible for these 'disasters', we'd probably step up to the plate and take what was coming to us.  But we didn't force people to be too gullible and let people sell them homes they couldn't afford.  We didn't cause the oil price jump because we didn't approve new refineries for thirty years or drill for new fields of oil?

If any of us should be paying 'the price', it seems that the finger of blame needs to be pointed at Washington and the people we send there to represent us.  That group has caused these issues to surface through favors to those putting money into their campaign accounts.  That group has caved in to the environmental groups that are fanatical to the extreme in their pursuit of the ultimate goal they espouse.

Oh, that's right.  We are to blame because we continue to return the same people to Washington in spite of what they do and don't do.  We don't require any 'reparations' for their actions.

Maybe we all need to get a little more involved and a little more vocal starting with our upcoming local elections.  Too may of us simply shake our heads and fume; we really need to be more active in our precincts and districts and villages or cities, and in our counties and states.

I saw a quote in the past few days that went along these lines:  "Too many people have died for our freedoms for us to not vote."