No matter how you slice it, this just ain’t good, at all.

This is bad, real bad.

Via the U.K’s Daily Mail:

You may wish to know this because, if ever you had an irrational desire to charter one, now would be the time. This time last year, an Aframax tanker capable of carrying 80,000 tons of cargo would cost £31,000 a day ($50,000). Now it is about £3,400 ($5,500)

This is why the chilliest financial winds anywhere in the City of London are to be found blowing through its 400-plus shipping brokers.

shipsatseaBetween them, they manage about half of the world’s chartering business. The bonuses are long gone. The last to feel the tail of the economic whiplash, they – and their insurers and lawyers – await a wave of redundancies and business failures in the next six months. Commerce is contracting, fleets rust away – yet new ship-builds ordered years ago are still coming on stream.

Just 12 months ago these financiers and brokers were enjoying fat bonuses as they traded cargo space. But nobody wants the space any more, and those that still need to ship goods across the world are demanding vast reductions in price.

Do not tell these men and women about green shoots of recovery. As Briton Tim Huxley, one of Asia’s leading ship brokers, says, if the world is really pulling itself out of recession, then all these idle ships should be back on the move.

‘This is the time of year when everyone is doing all the Christmas stuff,’ he points out.

‘A couple of years ago those ships would have been steaming back and forth, going at full speed. But now you’ve got something like 12 per cent of the world’s container ships doing nothing.’

Aframaxes are oil bearers. But the slump is industry-wide. The cost of sending a 40ft steel container of merchandise from China to the UK has fallen from £850 plus fuel charges last shipsatsea2year to £180 this year. The cost of chartering an entire bulk freighter suitable for carrying raw materials has plunged even further, from close to £185,000 ($300,000) last summer to an incredible £6,100 ($10,000) earlier this year.

Business for bulk carriers has picked up slightly in recent months, largely because of China’s rediscovered appetite for raw materials such as iron ore, says Huxley. But this is a small part of international trade, and the prospects for the container ships remain bleak.

Some experts believe the ratio of container ships sitting idle could rise to 25 per cent within two years in an extraordinary downturn that shipping giant Maersk has called a ‘crisis of historic dimensions’. Last month the company reported its first half-year loss in its 105-year history.

Martin Stopford, managing director of Clarksons, London’s biggest ship broker, says container shipping has been hit particularly hard: ‘In 2006 and 2007 trade was growing at 11 per cent. In 2008 it slowed down by 4.7 per cent. This year we think it might go down by as much as eight per cent. If it costs £7,000 a day to put the ship to sea and if you only get £6,000 a day, than you have got a decision to make.

No matter what your politics is; this is truly bad. Living proof that were are in a globalist economy, and when America hurts; the World hurts too. Of course, the American Presidential Administration that caused all this, is long gone. The Clinton Administration.  If the Clinton Administration had not used it’s housing commissioner to pressure Freddie Mac and Fannie Mae to produce those high risk, Adjustable rate Mortgages; which ended up being traded as credit swaps on the market; none of this would have ever happened. But it did, and the balloon economy was created, and the World went with it. When the Balloon popped; the rest of the world came down with it.

It is truly sad thing to behold. But there were warnings and they went unheeded. So, now we have this. There are no easy solutions. But it will rebound, it just takes time.

Predictably, Dan blames Obama. Sorry Dan, that is just plain dumb; Much of this was caused by Clinton and his stupid housing policy. It predates Bush and Obama. So, let’s get off the stupid? Okay? :roll:

Yikes! – About half of U.S. mortgages are seen to be underwater by 2011

Tim Geithner call your office!

The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March, portending another blow to the housing market, Deutsche Bank said on Wednesday.

Home price declines will have their biggest impact on prime “conforming” loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Prime conforming loans make up two-thirds of mortgages, and are typically less risky because of stringent requirements.

“We project the next phase of the housing decline will have a far greater impact on prime borrowers,” Deutsche analysts Karen Weaver and Ying Shen said in the report.

Of prime conforming loans, 41 percent will be “underwater” by the first quarter of 2011, up from 16 percent at the end of the first quarter 2009, it said. Forty-six percent of prime jumbo loans will be larger than their properties’ value, up from 29 percent, it said.

“The impact of this is significant given that these markets have the largest share of the total mortgage market outstanding,” the analysts said. Prime jumbo loans make up 13 percent of the total market.

via About half of U.S. mortgages seen underwater by 2011 | Reuters.

I wonder what “The One” will do about this? Cash for Refinancing?

Here’s why:

The drop in home prices is fueling a vicious cycle of foreclosures as it eliminates homeowner equity and gives borrowers an incentive to walk away from their mortgages. The more severe the negative equity, the more likely are defaults, since many borrowers believe prices will not recover enough.

Homeowners with the riskiest mortgages taken out during the housing boom have seen the greatest erosion in equity, in part because they were “affordability products” originated at the housing peak, Deutsche said. They include subprime loans, of which 69 percent will be underwater in 2011, up from 50 percent in March, Deutsche said,

Of option adjustable-rate mortgages — which cut payments by allowing principal balances to rise — 89 percent will be underwater in 2011, up from 77 percent, the report said.

Regions suffering the worst negative equity are areas in California, Florida, Arizona, Nevada, Ohio, Michigan, Illinois, Wisconsin, Massachusetts and West Virginia. Las Vegas and parts of Florida and California will see 90 percent or more of their loans underwater by 2011, it added.

“For many, the home has morphed from piggy bank to albatross,” the analysts said.

It is classic; The textbook reason why you DO NOT give home loans to high risk persons. Because they are the first to lose their jobs when the economy takes a dump.  This is the invention of the Clinton Administration. But yet, no one on the left wants to blame slick willy. Call it the Clinton bubble, call it a huge screw up by the Democrats. I call it reality. Welcome to the Obama Economy and the Democratic Future, brought to you by Clinton stupidity.

Once again Andrew Sullivan shows that he is not a Conservative

Andrew Sullivan is Astroturfing (or is it asshole-turfing? Most likely BOTH in Sullivan’s case! DohHypnotized)   for his fellow Liberals.

Andrew Sullivan says:

welcome2insanity(2)Here’s another example. There’s a groundswell of grousing on the right about the cash-for-clunkers program, because the feds were caught off-guard by its popularity. The argument is that if the government can’t run cash-for-clunkers, how can it run healthcare?

To which one might respond: but cash-for-clunkers is one example of the government actually doing something right, helpful and popular. It’s the kind of pragmatic experimentation that FDR tried repeatedly. So you have a practical, targeted measure that seems to have helped abate a deeper recession in the auto industry, and the right is obsessed with the ideological abstraction of “government.”

What conservatives have to do, in my view, is not demonize government, but to champion limited government. If government can do tangible practical things that help everyone, while balancing its budget, it’s doing what conservatives think it should. Smart, practical initiatives that address problems that the private sector has failed at: what else is government for? The rest is ideology – and it seems to be all the Republicans have left.

Can someone tell how the Government affecting the Markets is doing something right? I mean, Ron Paul knocked out of the ballpark, when he said in his video that, while the “Cash for Clunkers” program might help those who are able to buy cars; but that it would damage the market for the poor people who buy those older so-called “Clunker” cars.

Reason Magazine’s Matt Welch weighs in:

I’m nobody’s conservative, but I’m pretty sure if I was telling conservatives how to think I wouldn’t admonish them for failing to champion limited government within two sentences of praising FDR’s pragmatism. It’s like, I dunno, lecturing the Labour Party about demonstrating their pro-union bonafides while praising Margaret Thatcher’s centrism. Sounds a bit off.


Sullivan is dead right about one thing: Cash-for-clunkers is indeed very “popular.” So is the home mortgage interest deduction, the prescription drug benefit, and any number of federal programs that siphon from the diffuse pool of tax revenue+debt and blast out concentrated benefits to the broad middle class. The standard for judging these things shouldn’t be popularity–Richard Nixon’s wage-and-price control spasm of 1971, to name one of many historical measures now widely and rightly considered asinine, was hugely popular at the time–but whether they make sense in both the short and long term.

Cash-for-clunkers amounts to a rounding error in Tim Geithner’s nose-hair at this point, which is probably why at least some liberals seem so genuinely baffled by the disproportionate criticism it has drawn. But for some of us it’s also a nearly perfect symbol of economic statism run amok. The federal government is taking from the many, giving it to the less-than-many, destroying functional cars, funneling money to an auto industry that it already largely owns (at a hefty taxpayer price tag), then taking multiple (and multiply premature) bows for rescuing the economy and the auto industry in the process.

I understand, and even appreciate, that not everyone interprets things this way. But what I don’t understand, and ultimately don’t respect, is the weird urge to react to yet another Obama administration brainfart by rounding up its opponents and putting them in a metaphorical holding pen marked “ideologically obsessed.” Particularly after eight years in which the only detectable ideology was taxcut-and-spend, and otherwise do what parties in power always do: look for creative new ways to bribe the middle class.

I happen to like that last part about bribing the middle class. Is not that the honest truth? I mean, the Republican Party does it, and so do the Democrats. Bribe the middle class for their vote. I tend to believe it happens on the left more; but honestly, both sides do it. This program is an example of that.

James Joyner weighs in as well:

Piggybacking on WSJ’s point, it strikes me that the “clunkers” aspect of this arrangement is morally dubious. Glenn Reynolds‘ 2004 Mazda RX-8 is a clunker that, were he so inclined, he would be eligible to trade to the government (indirectly) for $4500.  It would then be scrapped.  Doesn’t this remove a perfectly good used car from the market that some person of modest means could otherwise have purchased, either upgrading from an older, less reliable vehicle or none at all?  And doesn’t doing that mean the price of other used cars will increase accordingly?

Which is exactly what Ron Paul said in his video. Here is another area that this program will hurt. Auto Mechanics; these guys are the ones who keep those older cars going, thus creating a living for themselves. Which, in case the liberal socialist left have forgotten; does contribute to the economy. Which proves to the this writer, that the socialist far liberal left, in their quest to further their so-called Green agenda, which is basically a big scam, that is only going to benefit big business; they have left the most important people behind —- their constituents, that are the poor and lower middle class in this Country.

Graphic Credit: McGurk @ Ace of Spades

Ron Paul says that “Cash for Clunkers” hurts the poor

I do not always agree with the Ron Paul. But this time; he is dead on. His point is that the liberals in their quest to revive a market for new cars, is destroying a used market for older cars for the poor people to drive. Which is absolutely true. Hell, I drive a damned clunker car! Do you think that I can afford to go buy a new car? Well sure, if someone wants to give me the entire amount needed to buy a new one!  Contrary to what some might believe, some of us Conservatives are not independently wealthy. Some of us Conservatives are below the poverty line. Some of us Conservatives are poor!

However, just because I am not rolling in the dough, does not mean that I want a Government hand out! Just because I am poor, does not mean that I want the Government controlling every aspect of my life either!

You ask, “If your are so damned poor, than why the hell are you a Conservative?!?!” Because I know the truth about the Democratic Party; how they use poor people, black people, and other minorities, all for their votes and to achieve idiotic goals of a socialistic society.

So, again; I might not always agree with Ron Paul, but this time, he knocked it out of the ballpark.

Here’s the video: (Via The Daily Paul)

By the way,The Daily Paul is a decent website as well; even if the owner did refuse to buy advertising on my site. I guess I wasn’t worth the investment. :roll: In case he’s forgotten, it was with his Gold business that he runs.

Quote of the Day

I have to admit I love to beat up on Goldman; I do it for The Daily Beast and on CNBC every chance I get. I also have to admit cheering Matt Taibbi on when I first read his Rolling Stone article.

But in the end it does no one any good to travel in conspiracy theories. Is Goldman too powerful? Maybe. Was it too big to fail back in September? Given the size of its balance sheet, Goldman’s demise would have made Lehman’s look insignificant. (And while we’re at it, conspiracy theorists, let’s put to rest once and for all that Lehman was allowed to die to remove one of Goldman’s main competitors. Yes, Lehman was competitive with Goldman in the bond market, but the only reason to bail it out was to keep the systematic risk from infecting Goldman. In letting Lehman go under, the government actually put Blankfein and company in greater peril.)

A bigger issue lost in all the back-and-forth about the firm’s connections, trading habits, and where Lloyd Blankfein was the night of September 15, 2008 when Lehman went bust, is that the American taxpayer is right this very moment subsidizing Goldman’s risk taking. That’s a scandal no one seems to want to talk about.

Cash for Clunkers; Clunks out — Update:Feds trying to salvage programUpdate: House Passes 2 Billion “C for C” Bill

This is a bit a humorous story.

Via Wall Street Journal:

White House officials and lawmakers were studying late Thursday how to keep alive the government’s cash-for-clunkers incentive program because of concerns the program’s $1 billion budget may have been exhausted after just one week.

Obama administration officials warned congressional leaders Thursday it planned to suspend the program at midnight. But the White House released a statement late Thursday saying that completed deals would be honored and the program is still under review.

Cash for Clunkers Runs Out of Gas

A White House official said, “We are working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid [cash-for-clunker] transactions that have taken place to-date will be honored.”

Lawmakers are discussing with White House officials where to find funding — including possibly tapping the government’s Troubled Asset Relief Program, or TARP, a congressional aide said.

The clunkers program, which offers rebates of up to $4,500 to consumers who trade in old vehicles and buy new, more fuel-efficient models, began July 24 and sparked a surge in car sales.

“It was an absolute success,” said Michael J. Jackson, chief executive of AutoNation Inc., the U.S.’s largest chain of auto dealerships. “There’s a very compelling case the government should put more money into it. It’s a great stimulus to the economy.”

There much just be such a thing as a program working too well. Mike Hendrix points out that Cato is pointing out a way to use the money to buy a classic car.  One little problem with that whole idea; well, a few actually. For one, it is dishonest; and I always thought that Conservatives were the upstanding ones and the Democrats were the lying, cheating criminals and thieves. Just a thought guys. Second of all, I am sure the Government, somehow or another; is going to keep track of how long you own the car, possibly by keep track of how long you have the title in your possession. So, if you get a car and turn around and off it. I am sure the Government is going to want their money back.  Even if it is not spelled out anywhere; I would not want to take my chances. I figure, the less the Government knows about me and desires to speak with me; the better.

However, there is late breaking news that that people behind the scenes are trying desperately to keep the program running:

The Obama administration and Capitol Hill sources told NBC News that efforts are underway to protect the auto sales incentive program, also known as “Cash for Clunkers.”

Although key members of Congress were notified by the Secretary of Transportation Thursday that the program would run out of money at midnight, sources said “Administration and Congressional officials are working to keep it up and running.”

The program has exhausted its authorized funding of nearly $1 billion in less than a week but officials say “it is not suspended.”

The program, which had been expected to run through Sept. 30, was designed to spur U.S. auto sales through consumer incentives.

“Cash for clunkers” authorized up to $4,500 in rebates for car buyers who traded in their gas guzzlers for more fuel-efficient vehicles.

The government launched the program on July 24 and said late on Thursday that sales and pending sales had neared the limit of 250,000 vehicles.

Some of my fellow Conservatives are he-hawing about how funny that this is; and that it is a waste of money. Well, I guess I must be funny. Put me in the bracket of people that say, “Hey if it’s working, it’s working!”  I am not a fan prime of pumping of the economy. But if people start buying cars again and the economy comes back to life. I am all for it. Sorry guys, I just remind unconvinced that this is waste or that it is somehow hurting the economy.

Update: Via Politico:

Congress is moving quickly to save the depleted cash-for-clunkers program, as the House passed a $2 billion spending measure Friday afternoon that would keep alive a program that has encouraged American car owners to trade in their old gas guzzlers for more fuel efficient vehicles.

Despite some criticism from Republicans who called the legislation another bailout for another industry, the bill easily passed on a 316-109 bipartisan vote.

Under the fast-track bill, Democratic leaders will use funds from a renewable energy loan guarantee included in the stimulus. The bill would extend the program through Sept. 30, 2010. Democrats have portrayed the run on cash for clunkers cash as a great success for the $1 billion program, which allows car owners to turn in older, less fuel efficient cars for a $4,500 rebate to purchase higher gas mileage vehicles.

The Senate path will be more complicated, as the upper chamber will have to work through a dispute between Michigan lawmakers who want more generous terms on gas mileage than California senators seeking higher fuel efficiency rules. Sen. Claire McCaskill (D-Mo.), has already posted a message on her Twitter account saying she won’t support transferring stimulus money to cash for clunkers. The $2 billion is not new money since it is being transferred from an existing renewable energy program.

Both Republicans and Democrats talked about how local dealerships across the country have been flooded with interest from car owners who want to dump their older vehicles and use the free $4,500 rebate to help purchase new, fuel efficient cars. But the government re-imbursement of car dealers has been inefficient, and lawmakers have criticized the program’s slowness in sending those rebates to auto dealers who have fronted the rebate money for car buyers.

“Cash for Clunkers may have run out of cash, but America’s consumers haven’t run out of clunkers. We’re going to work with the Obama administration to keep this wildly successful program going until it reaches its goal of helping consumers take 1 million gas guzzlers off the road,” said Rep. Ed. Markey (D-Mass.), who co-authored the legislation.

Some Republicans have already started objecting to the bill, saying it’s yet another bailout for a specific industry. But Republicans like Pete Hoekstra of Michigan and John Campbell of California have already spoken in favor of the bill in Friday afternoon floor speeches.

You see this is why the Republican Party is being painted by the left as the “Party of No.” Because something that is actually working; the Republicans are against it. Because it is supposedly a “Bail Out” of the auto industry. Oh Please, it is enabling those, who would not otherwise be able to afford a newer car. I know feeling, working a job, but not making quite enough to afford a new car. This is helping people out. Now truthfully, this program would not help me out. As I am not working; and I could not afford the car payment. But if I was; I would jump on the chance to get one of these vouchers.

Sometimes I think that some Republicans need to step back away from their ideology for a second, and see something in it’s broader terms. This inability to do this, is why the Republican Party lost in 2008 and will possibly in 2012 as well.

Others: : USA Today, New York Times, Washington Post,, Wake up America, The Politico, Environmental Capital, The Confluence, Scared Monkeys, DailyFinance, Wizbang, Hot Air and The Jawa Report

Movie: Fiat Empire

Synopsis: Inspired on the book, THE CREATURE FROM JEKYLL ISLAND by G. Edward Griffin, FIAT EMPIRE discusses the effects of the Federal Reserve System on the U.S. economy and explains why the debt-backed "fiat" money it issues is no longer Constitutional. This 60-minute documentary is an excellent primer for the citizen or student who wants to get an understanding of how money is created and why the U.S. government has entered into a partnership with elite Wall Street banks. Featuring Ron Paul, Edwin Vieira, G. Edward Griffin and Ted Baehr

Get the DVD here

The White House is trying to avoid the ugly truth…

The Economy is in the crapper, the Nation is up to it’s eyeballs in debt, and the White House is scared:

WASHINGTON (AP) – The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today’s bleak landscape.

The administration’s annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama’s budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress.

The release of the update – usually scheduled for mid-July – has been put off until the middle of next month, giving rise to speculation the White House is delaying the bad news at least until Congress leaves town on its August 7 summer recess.

The administration is pressing for votes before then on its $1 trillion health care initiative, which lawmakers are arguing over how to finance.

The White House budget director, Peter Orszag, said on Sunday that the administration believes the “chances are high” of getting a health care bill by then. But new analyses showing runaway costs are jeopardizing Senate passage.

“Instead of a dream, this routine report could be a nightmare,” Tony Fratto, a former Treasury Department official and White House spokesman under President George W. Bush, said of the delayed budget update. “There are some things that can’t be escaped.”

The administration earlier this year predicted that unemployment would peak at about 9 percent without a big stimulus package and 8 percent with one. Congress did pass a $787 billion two-year stimulus measure, yet unemployment soared to 9.5 percent in June and appears headed for double digits.

Obama’s current forecast anticipates 3.2 percent growth next year, then 4 percent or higher growth from 2011 to 2013. Private forecasts are less optimistic, especially for next year.

via My Way News – White House putting off release of budget update.

Hope! Change! Obfuscation! Numbers Fixing! Just another day in Obama-land folks…..

2010 is looking mighty good for the Republican Party right now.

America cannot say that they were not warned; Fox News Channel, Every Conservative Blogger; including myself, warned the folks. If you elect this guy, he will ruin America and will worsen our Economy. But did America listen? Nope! They elected him anyhow. It is indeed the late 1970’s and early 1980’s all over again. Barack Obama’s Administration is Jimmy Carter 2.0. It will be interesting to watch and see, just how much this country will be “In the hole” and for how long.

Somewhere, John McCain is smiling. 🙂

Others: Political Punch, Hot Air, Right Pundits, Wizbang, The Foundry, On Deadline, Don Surber, QandO, YID With LID,, JammieWearingFool, Betsy’s Page, Pajamas Media, Say Anything, AmSpecBlog, Riehl World View and Gateway Pundit

Video: The Southern Avenger: Ron Paul and Jim DeMint Take on the Fed

Synopsis: Texas Congressman Ron Paul and Senator Jim DeMint of South Carolina are gaining bipartisan support by going the extra mile in their efforts to audit the Federal Reserve.

Pssst! Hey Liberals! Sarah Palin knows what she’s talking about!

As I am sure you all know Sarah Palin wrote in the Washington Post, an Op-Ed about the purposed Cap and Trade legislation.

Government Palin Writes:

There is no shortage of threats to our economy. America’s unemployment rate recently hit its highest mark in more than 25 years and is expected to continue climbing. Worries are widespread that even when the economy finally rebounds, the recovery won’t bring jobs. Our nation’s debt is unsustainable, and the federal government’s reach into the private sector is unprecedented.

Unfortunately, many in the national media would rather focus on the personality-driven political gossip of the day than on the gravity of these challenges. So, at risk of disappointing the chattering class, let me make clear what is foremost on my mind and where my focus will be:

I am deeply concerned about President Obama’s cap-and-trade energy plan, and I believe it is an enormous threat to our economy. It would undermine our recovery over the short term and would inflict permanent damage.

American prosperity has always been driven by the steady supply of abundant, affordable energy. Particularly in Alaska, we understand the inherent link between energy and prosperity, energy and opportunity, and energy and security. Consequently, many of us in this huge, energy-rich state recognize that the president’s cap-and-trade energy tax would adversely affect every aspect of the U.S. economy.

There is no denying that as the world becomes more industrialized, we need to reform our energy policy and become less dependent on foreign energy sources. But the answer doesn’t lie in making energy scarcer and more expensive! Those who understand the issue know we can meet our energy needs and environmental challenges without destroying America’s economy.

Job losses are so certain under this new cap-and-tax plan that it includes a provision accommodating newly unemployed workers from the resulting dried-up energy sector, to the tune of $4.2 billion over eight years. So much for creating jobs.

In addition to immediately increasing unemployment in the energy sector, even more American jobs will be threatened by the rising cost of doing business under the cap-and-tax plan. For example, the cost of farming will certainly increase, driving down farm incomes while driving up grocery prices. The costs of manufacturing, warehousing and transportation will also increase.

Of course, as if right on cue, every liberal in America is laughing at her and is saying that she is an idiot; and that she is trying to stay in the spotlight and so forth. Well, guess what? Not too long ago; on March 5, 2009. My own home paper, The Detroit News, wrote a similarly written editorial, basically saying the SAME THING. The Article itself is now offline, and you have to pay to get it. But luckily for me; I blogged about it.  The Article says and I quote:

President Barack Obama’s proposed cap-and-trade system on greenhouse gas emissions is a giant economic dagger aimed at the nation’s heartland — particularly Michigan. It is a multibillion-dollar tax hike on everything that Michigan does, including making things, driving cars and burning coal.

The president is asking for a system of government limits on carbon emissions. The right to emit carbon would be auctioned off to generate revenue for more government spending programs.

The president’s budget projects receipts totaling $646 billion through 2019 from the sale of these greenhouse gas permits.

The goal, according to the president’s budget outline, is to reduce greenhouse gas emissions such as carbon dioxide to 14 percent below 2005 levels by 2020.

Doing so will drive up the cost of nearly everything and will amount to a major tax increase for American consumers.

Such a tax will hit the Midwest particularly hard, which is why House Minority Leader John A. Boehner, R-Ohio, told the New York Times, “let’s just be honest and call it a carbon tax that will increase taxes on all Americans who drive a car, who have a job, who turn on a light switch, pure and simple.”

The carbon tax will be paid by energy companies, manufacturers and public utilities, who will pass the cost on to their consumers. Michigan will be especially targeted. It gets 60 percent of its electric power from coal plants, and the state’s economy is still reliant on heavy manufacturing such as car and truck assembly and auto parts production.

Michigan will lose as carbon tax money is shifted to states with a greater presence of high-tech and service businesses.

The proposed tax would take effect in 2012 and has the very real potential to throw the nation back into recession, if indeed the expected recovery has arrived by then. It’s impossible to raise costs for such basics as manufacturing and energy production by more than half a trillion dollars over a decade and not have the effects felt across the economy.

The nation’s gross domestic product contracted at an annualized rate of 3.8 percent in last year’s fourth quarter — the worst economic record in nearly three decades. Is this really a good time to be talking about a carbon tax? How will such talk impact investment decisions?

Obama promises to use some of the revenues for tax relief for certain workers and some of the rest for subsidies for alternative energy. But that won’t make up for the damage this huge new tax will do to the economy, especially in Michigan.

So, maybe, perhaps maybe, Sarah Palin is not as stupid as these liberals want to make her out to be. At least, she right on point about this Cap and Trade Legislation. It would raise taxes and be a job killer for Michigan and yes, for the rest of the Country.

Others, Yes, Including idiot liberals who are mocking her: The Fix, The Atlantic Business Channel, The New Republic, The Huffington Post, Washington Wire, The Daily Dish, The Hill’s Blog Briefing Room, Ezra Klein, Boston Globe, Hot Air, Right Wing News, PERRspectives, PoliGazette, The Strata-Sphere, Wake up America, Moe Lane, The Note, The Daley Gator, Democratic Strategist, Zandar Versus The Stupid, NY Daily News, The Politico, The Swamp,, No More Mister Nice Blog, Gawker, Gathering of Eagles: NY, Sister Toldjah, YID With LID, Macsmind, Classical Values, GOP 12, Stop The ACLU, TBogg, American Power, Real Clear Politics, Green Inc., Gateway Pundit, Cold Fury, PoliBlog, Balloon Juice, Latest Open Salon Blog and Left in the West

Think the Mortgage Crisis is over? Think Again; round two is coming!

The Market Ticker has the ugly details.

(H/T to Freedom Phoenix)

John Stossel takes on Liberal Propagandist Michael Moore

I happen to like John Stossel; because he dares to take on the Liberals. Not in a mean or nasty way. But by simply stating the truth.

He writes about Michael Moore’s latest Movie:

Michael Moore has been working on another documentary.  This time, he’s taking on capitalism:

“The wealthy, at some point, decided they didn’t have enough wealth. They wanted more — a lot more. So they systematically set about to fleece the American people out of their hard-earned money.”

How ridiculous is that?  The wealthy, and everyone else, almost always decide that they don’t have enough wealth.  People ask their bosses for raises.  We invest in stocks hoping for bigger returns than Treasury Bonds bring.  “Greed” is a constant.  The beauty of free markets, when government doesn’t meddle in them, is that they turn this greed into a phenomenal force for good.  The way to win big money is to serve your customers well.  Profit-seeking entrepreneurs have given us better products, shorter work days, extended lives, and more opportunities to write the script of our own life.

He goes on…:

Moore also fails to understand is that it was not “capitalism” run amok that caused today’s financial problems.   In reality, it was a combination of ill-conceived government policies and an overzealous Federal Reserve artificially lowering interest rates to fuel a bubble in the housing market.  Then it was government that took money from taxpayers and forced banks to accept it.

Moore ought to understand that, because he makes a good point when he says his movie will be about “the biggest robbery in the history of this country – the massive transfer of U.S. taxpayer money to private financial institutions.”

That is indeed robbery.  It sure doesn’t sound like capitalism.

Nope, sounds more like socialized Healthcare or simply Socialism in general; to me.

Mike Tennant writing over at Lew Rockwell’s Blog chimes in:

According to the press release you linked, Chris, “Moore has made three of the top six highest-grossing documentaries of all time,” which presumably means he has accumulated a great deal of wealth.  Apparently, since he continues to foist his so-called documentaries on an unsuspecting public, Moore has decided that he doesn’t have enough wealth.  He wants more–a lot more.

Like most anti-capitalists, Moore has no problem personally profiting from his own endeavors while demonizing other successful persons and attempting to have them dispossessed of their wealth.  The good news is that Moore ultimately has to answer to the marketplace and thus may find himself begging for work from the very people he now condemns if enough of his audience members wake up to the fact that he’s a charlatan and stop shelling out their increasingly scarce cash for his celluloid propaganda.

Mike is right on point; that is exactly how the socialists in America are. The Socialist left wants to preach to America, how evil, rotten, nasty and no good the evil capitalist system is; all the whole pocketing a profit from their lectures, Movies and the books that they just happen to make a profit at.  It is more of that “Yea for me, but Nay for thee”, type of mentality and outright hypocritical nonsense that the Far Socialist left is known for.

The troubling thing about it, is this; these knuckle-headed socialists basically control the Democratic Party and it’s message.  Hence my reasoning for not wanting anything to do with them or their Party any longer.

Give me Capitalism, Freedom and Liberty or Give Me Death!

Others: Wake up America

How’s that stimulus working out for you Barry?

Apparently not too well it seems.

The Washington Post (!) Reports:

Five months after Congress approved a massive package of spending and tax cuts aimed at reviving an ailing economy, the jobless rate is still climbing and the White House is scrambling to reassure an anxious public that President Obama’s prescription for economic recovery is on the right track.

Yesterday, Obama took time out of his first presidential trip to Moscow to defend the $787 billion stimulus package, arguing that the measure was the right medicine at the right time. “There’s nothing that we would have done differently,” he told ABC News

So, beings the Democratic Party’s proverbial teeth chattering session, where they realize, “Uh-Oh, we messed up! Now how do we fix it?”

Back in Washington, senior Democrats on Capitol Hill were nervously contemplating whether additional government stimulus spending may be needed to pull the nation out of the worst recession since the 1930s. Senior administration officials acknowledged that the effects of the stimulus package have been overshadowed by an unexpectedly sharp drop-off in employment since the measure passed in February. But they reported that only about $100 billion has so far been spent and that as increasingly large sums flow out of Washington, the program is on pace to save or create 600,000 jobs over the next 100 days.

“It is clear from the data that there needs to be more fiscal stimulus in the second half of the year than there was in the first half of the year,” White House economic adviser Lawrence H. Summers said. “Fortunately, the stimulus program designed by the president and passed by Congress provides exactly that.”

Leading economists agree that the most powerful effects of the stimulus package have yet to be felt. But even if the measure lives up to Obama’s expectations, it would barely offset the 433,000 jobs the nation lost last month alone, and the resulting employment would represent a drop in the bucket compared with the 6.5 million jobs lost since the recession began in December 2007.

“Just 130 days out on the adoption of a very, very major effort to get the economy moving, certainly I don’t think we can make a determination as to whether or not that’s been successful,” House Majority Leader Steny H. Hoyer (D-Md.) said yesterday. But, he said, “I think we need to be open to whether or not we need additional action.”

Oh Yes! We just poured a couple generation’s worth of money into a Economic system that is basically; on it’s face, is broken and does not work. This did not work, so, we’re going to basically pour money into that same broken system and see if we can make the economy recover. Rolling Eyes

If anything this ought be a lesson for the Democratic Party that Keynesian Pump Priming, just does not work. But you think that the Democrats would learn that lesson? No. Because they’re dumb! Silly

Of course, the Republicans are a bit more smarter about this:

Republicans, meanwhile, pounced on news that the unemployment rate increased to 9.5 percent in June and accused the Democrats of sinking the nation deeper into debt to finance an economic recovery package that has failed to save American jobs. Noting that the Obama administration predicted earlier this year that stimulus spending would keep the unemployment rate under 8 percent, Rep. Eric Cantor (R-Va.), the No. 2 Republican in the House, said, “I think any objective measure would indicate there’s a failure when you have a commitment of nearly $800 billion in taxpayer funds and you have the type of job loss we’re experiencing.”

With many economists forecasting that the jobless rate will continue to climb — and is likely to stay above 10 percent through much of next year — Republicans vowed to make the 2010 midterm election a referendum on Obama’s stewardship of the economy. “I think they’re going to have some significant problems,” said Sen. John Cornyn (R-Tex.), who leads the GOP campaign operation in the Senate, “and I view those as opportunities for us.”

Hopefully, the Republicans will frame these opportunities properly. Of course, their track record here as of late, has not been too good.

Meanwhile, in the reality sector:

Despite the deepening pain of the recession, many Democrats in the White House and on Capitol Hill yesterday counseled patience. They said it would be extraordinarily difficult to win approval for more spending on the economy when Obama is pursuing a host of other expensive initiatives, including a $1 trillion expansion of the nation’s health-care system. And they argued that the current stimulus package should be given a chance to work.

The stimulus was designed to deliver a gradually stronger push to the economy through the end of next year. It contains about $499 billion in new spending and about $288 billion in tax cuts for working families, businesses, college students and first-time home buyers.

When the measure passed, the nonpartisan Congressional Budget Office predicted that about a quarter of the money would be spent by year’s end, and that about 75 percent would flow by the end of 2010. So far, economists said, spending appears to be on track.

According to administration estimates, about $158 billion in new spending had been committed to specific projects by the end of June, but just a fraction of that money — about $56 billion — had been delivered to struggling state governments, unemployed workers and other recipients. An additional $43 billion had been left in the pockets of individuals and businesses through uncollected taxes, much of it the result of Obama’s signature Making Work Pay tax credit for working families.

Those figures track closely with estimates by Mark Zandi, chief economist for Moody’s, who calculates that the government made $242 billion in stimulus funds available for various purposes through the end of June and paid out about $110 billion. In a recent analysis, Zandi predicted that “the maximum contribution from the stimulus should occur in the second and third quarters of this year,” when it will add more than three percentage points to overall economic growth.

“It’s pretty much according to plan in terms of the payout and in terms of its economic impact. This is in the script,” Zandi said. The problem, he said, is that “the economy has been measurably worse than anyone expected,” with a surprisingly sharp “collapse in employment and surge in unemployment” that caught most economists off guard.

“That’s why the administration’s forecasts have been so wrong,” he said.

None of this surprises me in the least. I warned on this blog long ago that this would happen. But, of course, you have the Democrats spinning this, and very hard too:

The White House continues to predict that the stimulus package will save or create 3.5 million jobs by the end of next year. Zandi predicts it will fall short of that, producing about 2.5 million jobs — still a significant impact.

Whatever the number, Democrats are hoping it will be enough to convince voters that Obama is leading them out of the economic wilderness.

“I think the president was very clear that things were going to take a long time to turn around,” said Rep. Chris Van Hollen (D-Md.), who leads the Democratic Congressional Campaign Committee in charge of electing Democrats to the House. Republicans “are making the argument to the American people that doing nothing would have been the best policy. And I don’t think people will buy that. . . .

“The measures we have taken have certainly prevented things from getting much worse.”

According to what figures? Because the charts I have seen, say otherwise:


What this chart shows is that unemployment was far higher with the stimulus plan, than it would have been, if Team Teleprompter would have just left well enough alone.

What this means to me personally is this; I will most likely be unemployed until like 2010 or longer. Thereby making myself impossible to he hired anywhere, because I haven’t worked in so long. Which is just wonderful. Rolling Eyes

Thank you President Bambi Teleprompter for ruining America, you feckless idiot! Angry

Others:  Hot Air,  

Heh: Liberals are now whining about increased food prices


Until recently, whenever we went to the farmers’ market, we would lug home $50 pork roasts and $14 gallons of milk. We would spend over $100 on food that might not last more than three days. Sometimes we’d shop on Saturday morning and have nothing to make for dinner on Monday. I shrugged this off as one of those oddities of New York life, like getting a ticket because your neighbor put out his trash on the wrong day. But the $35 chicken made me reconsider. Buying sustainably raised beef and sustainably squeezed milk and sustainably hatched poultry is a way of life that, these days, I just can’t sustain.

There were reasons I fell into the habit of spending more money in one morning at the farmers’ market than some people spend on an engagement ring. These farmers — whom I began to imagine driving new BMWs once they got back upstate — were doing good work. They stayed away from pharmaceuticals, so we didn’t have to worry that we were feeding Dexter and his baby brother, Elliot, stray hormones or antibiotics. We had never been strict about buying organics, but we liked apples from orchards that didn’t apply pesticides with a fire hose. And apart from that infamous chicken, most of the products from the farmers’ market were grand on the dinner table. The question was: How much grandeur could we afford?

via Cooking With Dexter – The New Chicken Economy –

Liberals think it is bad now; wait till the hyper inflation hits, no thanks to “The One’s” failed stimulus plan.

(H/T and Thanks to Mere Rhetoric)

Oh Lovely: Warren Buffett says U.S. Economy In “Shambles”

But do you think this will change “The One’s” way of doing things? No.


The Story:

In a live interview on CNBC today, Warren Buffett said there has been little progress over the past few months in the “economic war” being fought by the country. “We haven’t got the economy moving yet.”

While the economy is a “shambles” and likely to stay that way for some time, he remains optimistic there will eventually be a recovery over a period of years.

via Warren Buffett to CNBC: U.S. Economy In “Shambles” .. No Signs of Recovery Yet – Warren Buffett Watch –

Next time some idiot liberal tells you that Obama is going to “Fix” the economy. Show them this posting. The reality is, that Obama is not fixing anything at all.

Oy!: You’d think they would learn; perhaps not….

Think the Democrats will learn from their prior mistakes, and won’t make them again?

Perhaps not:

(Reuters) – Two U.S. Democratic lawmakers want Fannie Mae and Freddie Mac to relax recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing-market recovery, the Wall Street Journal said.

In March, Fannie Mae (FNM.N)(FNM.P) said it would no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold, up from 51 percent, the paper said. Freddie Mac (FRE.P)(FRE.N) is due to implement similar policies next month, the paper said.

In a letter to the CEO’s of both companies, Representatives Barney Frank, the chairman of the House Financial Services Committee, and Anthony Weiner warned that a 70 percent sales threshold “may be too onerous” and could lead condo buyers to shun new developments, according to the paper.

The legislators asked the companies to “make appropriate adjustments” to their underwriting standards for condos, the paper added.

In an interview with the paper, Weiner said the rules have “had a real chill on the ability to get these condos sold,” at a time when prices of condos have fallen enough to attract potential buyers.

via Fannie, Freddie asked to relax condo loan rules: report | Reuters.

This is the same sort of stupidity that got us into the mess that we are in now. You would think that the Democrats in question would learn from their prior mistakes. So much for that idea. :roll:’

Of course, when you’re dealing with a party, that has been taken over by people, who are essentially Communist-lite in nature. What do you expect?

Is America turning Japanese?

This comes via

Article mentioned in this video is Here

Cue the Music!

Unemployment Soars higher than expected and the Dems solution is throw more money at it!

But of course, is that not what Democrats always do? When a problem arises, they throw more money at a problem and exert more Governmental Control over it; thinking that will fix it?

Anyhow, here is the story; The Voice of America reports:

The White House says America’s employment picture is worse than the Obama administration had anticipated just a few months ago. The somber admission follows the latest jobless report showing the highest unemployment rate the United States has seen in more than 25 years.

U.S. unemployment jumped a half percent in May, to 9.4 percent prompting this comment by Austan Goolsbee, a member of President Barack Obama’s Council of Economic Advisors:

“The economy clearly has gotten substantially worse from the initial predictions that were being made, not just by the White House, but by all of the private sector,” said Austan Goolsbee.

Economists point out that the current jobless rate is already higher than the hypothetical rate that was used to calculate the health of banks and other financial institutions in so-called “stress tests” earlier this year. And, the upward unemployment trajectory is expected to continue in coming months, even if the overall economy begins to recover.

But never fear your Government is on the case! They are going to do, what Government has always done; especially Liberal Governments. They going to throw money at the problem! Woo Hoo! :roll:

The Barack Obama Apologist, Politico reports:

President Barack Obama is announcing Monday that he is ramping up stimulus spending exponentially in the next three months, allowing the administration to “save or create” 600,00 jobs — four times as many as during the first 100 days since he signed the bill.

The spending plans include National Parks, summer youth jobs, veterans’ medical centers, police and teachers.

Obama will make the announcement during a late-morning Cabinet meeting, when Vice President Joe Biden will present a Roadmap to Recovery, which the White House calls “an Administration-wide effort to accelerate implementation of the American Recovery and Reinvestment Act in its second 100 days.”

“As a result of this accelerated pace of activity, over 600,000 jobs are expected to be created or saved by the Recovery Act in the second 100 days,” compared with roughly 150,000 in the first 100 days, the White House said.

While the administration is sensitive to criticism that stimulus spending has been too slow, a new Gallup Poll shows danger in the other direction. For the first time, a majority of respondents disapprove of Obama on the issue of “controlling federal spending” (51 percent to 45 percent), compared to the 67 percent who view him favorably overall.

Here’s what the “Magic One” is going to do with all that money:

  • Enable 1,129 Health Centers in 50 States and 8 Territories to Provide Expanded Service to Approximately 300,000 Patients – Department of Health and Human Services
  • Begin Work on 107 National Parks – Department of the Interior
  • Begin Work on Rehabilitation and Improvement Projects at 98 Airports and Over 1,500 Highway Locations throughout the Country – Department of Transportation
  • Fund 135,000 Education Jobs Including Teachers, Principals and Support Staff – Department of Education
  • Begin Improvements at 90 Veterans Medical Centers across 38 States – Department of Veterans Affairs
  • Hire or Keep on the Job Approximately 5,000 Law Enforcement Officers – Department of Justice
  • Start 200 New Waste and Water Systems in Rural America – United States Department of Agriculture
  • Begin or Accelerate Cleanup Work at 20 Superfund Sites from the National Priority List – Environmental Protection Agency
  • Create 125,000 Summer Youth Jobs – Department of Labor
  • Initiate 2,300 Construction and Rehabilitation Projects at 359 Military Facilities across the Nation – Department of Defense

Here’s the problem; The President or more specifically our wonderful Government is going do all these wonderful things with money that we don’t even have; because we are barrowing it all from China. After all, did not the President say that we are broke? Yes, he did!

Quotable Quote:

In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: “We are out of money.”

C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far. This is a consequence of the crisis that we’ve seen and in fact our failure to make some good decisions on health care over the last several decades.

So we’ve got a short-term problem, which is we had to spend a lot of money to salvage our financial system, we had to deal with the auto companies, a huge recession which drains tax revenue at the same time it’s putting more pressure on governments to provide unemployment insurance or make sure that food stamps are available for people who have been laid off.

So we have a short-term problem and we also have a long-term problem. The short-term problem is dwarfed by the long-term problem. And the long-term problem is Medicaid and Medicare. If we don’t reduce long-term health care inflation substantially, we can’t get control of the deficit.

So, one option is just to do nothing. We say, well, it’s too expensive for us to make some short-term investments in health care. We can’t afford it. We’ve got this big deficit. Let’s just keep the health care system that we’ve got now.

Along that trajectory, we will see health care cost as an overall share of our federal spending grow and grow and grow and grow until essentially it consumes everything…

But yet, we are going to throw more money at the jobless problem. But we’re broke? Does anyone else see the problem with this picture?

Ouch: So much for that simulus!

Finally, something to draw me out of my funk.  Yeah, I know, I’ve been slipping. I’m just bored of the whole damn thing.

Seems ol’ Barry’s Stimulus horseshit, is just that…. Horseshit.

Via Innocent Bystanders:


So much for that stimulus eh? (click to make bigger)

Of interest….: (H/T The Strata-Sphere)

of the 2009 deficit by $481 billion, to $1.7 trillion (see Table 1-3). Much of that change stems from lower esti mated revenues and the increased costs attributable to the TARP. Over the 2010–2019 period, CBO has increased its estimate of the cumulative deficit by $1.3 trillion—mostly because of recently enacted legislation. Nearly half of that projected increase occurs in 2010 and 2011, largely as a result of the 2009 stimulus legislation (ARRA)

Lovely. Of course, that’s what the people voted for. All I can say is; Welcome to my world folks. It was bad back when I became unemployed, it is now worse.I guess I will be blogging for a while. That is if I can get back into the swing of it. It would help if people would donate and I could get readers. It gets old blogging to myself. I guess because I do not suck up to the idiot Neo-Cons and do not placate the Military-Hating so-called “libertarians”; nobody wants to read my site. I say screw ’em. I don’t need their readership anyhow.

So, yeah, it is going to be an interesting new few years around these damned parts.

Others Covering: Stop The ACLU, BizzyBlog, QandO, Fausta’s Blog, Politics and Critical Thinking, Gateway Pundit, Fox News, Hot Air, The Strata-Sphere, Cold Fury, and protein wisdom

The Southern Avenger says “Just Say No” to Government

When South Carolina Gov. Mark Sanford was attacked by Republican state leaders for not accepting federal stimulus dollars, it was worth pointing out the utter uselessness of GOP politicians who refuse to follow through on their conservative rhetoric.

The Southern Avenger on “Lindsey Graham Republicans”

When Lindsey Graham denounced Ron Paul-style libertarianism and advocated for George W. Bush-style neoconservatism during a speech at the South Carolina Republican Convention, it was worth pointing out that Graham’s suggested GOP path is the road to nowhere.

The Southern Avenger says “Partisans Make Us Less Safe”

How support for both “financial security” and “national security” reveal partisan hypocrisy and make us less safe.