Archive for October, 2008
Financial crisis sends wrong message
It seems that the wrong narrative is being written about the current financial situation in this country. Politicians like Barney Frank and Chris Dodd benefited from a housing system with too much government meddling. Now, these same politicians are pointing their fingers at the free market, claiming that it is the true cause of the housing problems that led to broader financial troubles.

This is the wrong lesson to be learned. The housing market was not a free market. Fannie Mae and Freddie Mac were so-called “government sponsored enterprises” or GSE’s. Such a hybrid was doomed to fail eventually, especially given the perverse incentives for politicians and lobbyists to abuse and exploit the situation.
Chris Dodd’s sweetheart loan from Countrywide as part of the “friends of Angelo” program, as well as his huge campaign contributions from Fannie and Freddie, were just the tip of the iceberg. The government’s collusion with corrupt CEO’s like Franklin Raines (who was a big Obama adviser until recently) led to the downfall and subsequent taxpayer bailout of Fannie and Freddie. Now, liberal politicians are clamoring that there needs to be more regulation, and that our financial troubles are due to an over-reliance on the market.
I hope that the American people see through the rhetoric. While many Republicans, like John McCain, were calling for greater oversight over the GSE’s, most Democrats were outraged by the suggestion. But this matter is larger than partisan bickering. I fear that too many people will see our current financial situation as a product of a failure of free markets, while the truth is that the housing market was not really free to begin with.
In the future, let’s hope that the American people remember the last time the government stuck its nose into the business of allocating scarce resources, like housing. I am somewhat doubtful that the lesson will be learned. As Thomas Sowell points out in his book Basic Economics the same foolish economic policies seem to be repeated by politicians over and over again.
Democrats want to stifle speech with ‘fairness doctrine’
As City Journal’s Brian C. Anderson points out in The New York Post, liberals are ready to go after conservative talk radio hosts like Rush Limbaugh and Sean Hannity. By imposing the ‘fairness doctrine’ on talk radio, they will effectively silence many conservative radio hosts. Liberal talk radio hosts can’t compete in the marketplace, so the left wants to use the power of the government to force liberal opinion to be heard on the radio.
Anderson writes,
“When the doctrine was in effect, both Democratic and Republican administrations regularly used it to harass critics on radio and TV.
If a station ran a big-audience conservative program like, say, Laura Ingraham’s, it would also have to run a left-leaning alternative. But liberals don’t do well on talk radio, as the failure of Air America and indeed all other liberal efforts in the medium to date show. Stations would likely trim back conservative shows so as to avoid airing unsuccessful liberal ones.
The American people are about to vote on November 4th, and the repercussions of that election could have far-reaching implications, not just for the economy, or war and peace, but for the fundamental freedoms that we enjoy when it comes to the first amendment.
Get ready for socialism and a major reduction in individual liberty…
A Liberal Supermajority
The Wall Street Journal describes what we are in for if Barack Obama is elected president, and the left builds its majority in the Senate and the House of Representatives.
Liberals would dominate the entire government in a way they haven’t since 1965, or 1933. In other words, the election would mark the restoration of the activist government that fell out of public favor in the 1970s. If the U.S. really is entering a period of unchecked left-wing ascendancy, Americans at least ought to understand what they will be getting, especially with the media cheering it all on.
I really believe that we are entering another age of liberalism, where our taxes will rise, spending will explode and socialism becomes a cancer that begins to eat away at our republic.
I hate to sound so fatalistic, but I just do not hold out much hope that we will be able to reverse these trends for a decade or more. The conservative movement is going into the wilderness for a while. Let’s hope that one day we will emerge again and be able to save our faltering republic.
McCain vs. Obama, Round 3 LiveBlog
McCain is coming out strong, hitting Obama hard on taxes on small businesses and pointing out that Obama wants to “spread the wealth around.”
Obama says he wishes we didn’t have to pay taxes. McCain says, “Then don’t raise taxes on anyone.”
McCain wants to get a hatchet out for the federal government. Opposes tariffs on sugar ethanol and subsidies for domestic corn-based ethanol. Now he is hitting Obama on pork barrel spending projects.
Obama looks calm, McCain looks combative. Good.
McCain hits Obama on taxes and spending, again. Points out that Obama supported higher taxes on the middle class.
Obama disputes the latter point, and says McCain is proposing 8 more years of Bush economic policy.
McCain give a laundry list of ways he differs from his political party.
McCain says Obama has run more negative ads than any other candidate in presidential history. Then, he hits Obama on not taking public financing for his campaign.
Next topic: nasty ads and fringe elements at rallies.
Finally, McCain brings up Ayers, ACORN voter fraud and Obama’s shady connections. McCain should mention that Ayers gave Obama money for his campaigns and launched his political career in Chicago in the nineties. Please, Senator McCain!
McCain just did it! Nice.
He needs to keep the pressure on.
McCain goes after Obama on spending again. Hits him on his plans for new spending to the tune of 800 billion dollars.
McCain mocks Obama’s desire to renegotiate NAFTA. McCain wants to build dozens of new nuclear power plants and lessen our dependence on oil from Venezuela and the Middle East. Obama says it will take ten years to reduce our dependence on foreign oil. He says we need to expand domestic production, but only on places where oil companies have leases currently.
Obama: “We can’t drill our way out of the problem.” Wants higher fuel efficiency standards for domestic auto industry. Doesn’t mention that this would mean smaller, more dangerous cars.
Obama: “I believe in free trade.” Ya, right. That is why he opposes nearly all trades agreement before Congress now.
McCain: “We have to drill now.” He then hits Obama on opposing the Colombia free trade agreement.
He got kind of in Obama’s face, telling him to travel down there and see for himself. Obama responds that there aren’t enough protections for unions in Colombia.
McCain says Obama doesn’t want trade with Colombia, but wants to sit down with Hugo Chavez. Ouch.
On to health care. Costs vs. coverage.
Obama: “We have to do both.” Tells a story about workers who were fired and lost their health care coverage. Describes his socialized medicine scheme to viewers. Wants more money to go into preventive care. Concedes that this will cost lots of money on the front end.
McCain: Focuses on the cost of health care. Repeats the misleading number of “47 million uninsured Americans.” See www.freemarketcure.com for more info on that one. McCain is talking to Joe the Plumber again. Tells him that Obama will fine Joe if he doesn’t provide health insurance for his employees.
McCain breaks it down to differing philosophies. He says it is about government deciding vs. people deciding. Notes that spending is out of control and that government would increase under Obama and the Democrat Congress.
On to abortion and judges. McCain says he doesn’t have a litmus test for judges. Calls himself a federalist. Notes his work on the Gang of 7, and his support for liberal, activist judges. Says judges should be selected based on qualifications for the job.
Obama says that “we shouldn’t use a strict litmus test.” Nice parsing, Barack. Says that “Roe hangs in the balance.” Women should have the right to choose, he says. Finds a mysterious “right to privacy” in the constitution. McCain nails him to the wall on the Born Alive Infant Protection Act and partial-birth abortion. Notes his views are “extreme” on this issue.
See Robert George’s brilliant piece from today on this topic.
The last question of the night is about education. Hopefully McCain will talk about school choice.
Obama: Education has a national security implication. Says we need more money and reform. Wants “early childhood education” which means higher federal government spending. Wants higher pay for teachers and higher standards. Supports a $4000 tuition credit for community service. Closes by saying parents need to be more responsible. No argument from me there.
McCain: “Education is the civil rights issue of the 21st century.” Talks about choice and competition, and gives examples of charter schools in New Orleans and New York. Says throwing money at the problem is not the answer. Wants to do away with ridiculous teacher certifications. Nice!
Obama adds that the federal government should do more on education. Criticizes unfunded mandates of No Child Left Behind. Says the funding was left behind. Agrees with McCain on charter schools. Says bad teachers should be dismissed.
McCain points out that the voucher system has helped DC families escape a failing government run school system. After their closing statements, the debate ends.
I think McCain won the debate, or at least helped his cause tonight. Not sure if this will move voters but it was McCain’s best performance yet.


