How to Fix the Economy

Hot Air posts a story from the Wall Street Journal on the problem with stimulus packages.

Stimulus packages don't work. Let's be honest. They simply transfer wealth from people who pay taxes, to people who don't. It's a tacit admission that people who don't pay taxes can't save their money and will waste it. The graph at the link shows while the money is being spent, it is simply being given back to the people who pay the taxes - to catch up on bills, etc. It does not produce any new consumer spending.

Want to fix this economy? It's as simple as 1-2-3 (maybe 4)

1. First, have the government state no more bailouts. Give the markets some certainty to future action. If they think government cheese is around the corner, they have no incentive to fix their problems.
2. Remove capitals gains taxes for 2 years. Set them at 0 across the board. Encourage investment.
3. Reduce corporate taxes to 10% for 2 years or 4 years. Let businesses keep their own money.
4. Reduce personal taxes to 20% for 2 years or 4 years. Across the board.

It's not difficult. You don't need $7 trillion dollars of bailout. You need people to keep their money - not spread it around. You need to encourage investment in the markets.

The economy can fix itself, just give it the means to do so.

Socialism is not Optional

When Canada is more free market than the United States, maybe it's time to rethink our political climate, no?

Smaller, well capitalized banks, are balking at the bailout package - that they do not want to be part of. Someone forgot to remind them that Socialism is not optional, it's mandatory.

At Evergreen Federal Bank in Grants Pass, Ore., chief executive Brady Adams said he has more than 2,000 loans outstanding and only three borrowers behind on payments. "We don't need a bailout, and if other banks had run their banks like we ran our bank, they wouldn't have needed a bailout, either," Adams said.

What an amazing concept. Only giving out loans to people who can pay them back over time. If someone had thought of this years ago, maybe this mess wouldn't have happened. Oh well.

The opposition suggested that the government may have to continue to press banks to participate in the plan. The first $125 billion will be divided among nine of the largest U.S. banks, which were forced to accept the investment to help destigmatize the program in the eyes of other institutions.

Government doesn't do things because it's nice. It does things because it can. And dammit, you will comply with their wishes. I love that private businesses have no say in the matter at all. And here you thought this was a bailout package, not a foot in the door to full blown socialism. Someone fooled you, didn't they?

This bailout package is really just another example of corporate welfare. The transfer of wealth from the tax paying middle class workers to super huge companies. Republicans should have stood against this, but they did not. I don't expect Democrats to be opposed to welfare of any kind (increases their power base!) but Republicans. Extreme disappointment.

If this were a complete scam, part of the bailout money would go to vote scamming ACORN. Oh wait.

And, you know, that's particularly outrageous is that the mortgage bailout, the Freddie and Fannie Mae bailout bill which was done this August which I also voted against because that nationalized the mortgage industry, that bill, Barney Frank voted language in that bill this summer which hard wires $420 of a $100,000 mortgage to ACORN, La Raza and other organizations like --

So government is subsidizing an organization that is perpetuating vote fraud and false registrations?

How much longer till our democracy is completely de-legitimized? Maybe when Presidential candidates openly feed the media appropriate talking points. Oh. Too late.

Ah well. It was fun while it lasted.

Atlas Shrugged is apparently prophecy, not fiction.

Obama Caused the Subprime Mortgage Mess

Obama is going to win the Presidency. Let's face reality. McCain either doesn't believe in the free market, or he isn't capable of defending it. Either way, I feel like I'm in an Ayn Rand novel.

The complicit media will have elected the guy who got us into a global financial disaster.

The entire elected Democrat contingent in Washington is responsible for letting it grow. While taking political donations and having sexual partners on the boards of these companies.

And this country is going to put more of them into office. Pelosi says no witch hunts into Fannie Mae and Freddie Mac.

The United States Government is going to start nationalizing banks. Taxing 401-k Plans.

“The way the government now encourages 401(k) plans is to spend $80 billion in tax breaks,” which goes to the highest-income earners, Ms. Ghilarducci said.

Read that carefully. Just a reminder that Democrats think it's their money, they just let you keep some if it.

Yep. Put more of these people in power. That's smart.

Obama on Tuesday, said that there would be a net spending reduction while he's in office. Immediately after the debate, his campaign said that "spending cuts" really means "tax increases" - so looks like Obama is going to raise taxes on everyone after he's elected.

Anyone who believes that his tax increases will only those making $250,000 or more are clueless.

Just relying on recent history; Clinton got elected in 1992 by promising a middle class tax cut. We got the biggest tax increase in history instead. Obama is promising a tax increase. What do you think he's gonna do?

That his campaign won't even say tax increases anymore should say it all. Instead, they say "look at the revenue side of things" or "spending cuts" - be afraid. Be very afraid.

Be ready for a multi year recession, possibly a global depression. 15% unemployment.

He's going to make Carter look like Reagan.

That is, if we can retain our sovereignty.

McCain, Obama Decide to Murder the Free Market

John McCain, a Republican, decided that the free market no longer works. He thinks that the government can decide home prices. Where are the small government conservatives on this? Hey. McCain did well. He did okay. He didn't suck. It was boring. Free market traitors.

So, those of us who pay our mortgage and our taxes; get to pay the mortgage of other people too. That's awesome. After we're already asked to give out $700 billion to investment companies, we are asked to give up $300 billion more to people who can't pay their mortgages? What ever happened to personal responsibility.

Hey. My car payment is a little too high. Can I get a government bailout for that too? Pander to me!

Oh, and Obama. You asshole. You call tax increases "spending cuts" or "revenue enhancements" to pay for your crap too. Hey. How about asking people to pay their own way through life? Did you know that the states with the slowest growth (or in recession) are - not coincidentally - the ones with the most government spending? Gee. Ya think there is some sort of correlation.

This country is $10 trillion in debt. We have a $400 billion budget deficit every year. This government takes $10,000 from every man woman and child in this country. Hey, jerk off. It's not a "revenue" problem. It's a spending problem. Consider cutting some. And, no, not by "revenue enhancements"

So together, McCain and Obama decide that murdering the free market to win an election is the way to go. And either of them have the nerve to invoke Reagan or JFK.

Why bother voting at all? Republicans = Democrats = Socialists. Is the only difference between them the status of a woman's uterus?

Economic Bailout Plan: Plans within Plans

Well, the bailout bill passed. Who would have known that the Wayan Brothers were just ahead of their time?

Who, apparently, has more money than they know what to do with? The Gubmint! That's who. They just willed $700 billion out of thin air to help out people who made bad choices. Ya know, maybe just perhaps, if the government would stop subsidizing bad behavior, they wouldn't have to do this so often. Ya think?

I'm sure you'll be shocked to hear that now we are told $700 billion won't be enough.

"At best, we can hope that it stems some of the more intense risk from the credit crisis. It prevents things from spiraling out of hand here," said JPMorgan Chase economist Michael Feroli.

Some are worried, though, that the plan will not work at all.

"Nobody knows how it's going to succeed," said Howard Simons, strategist with Bianco Research in Chicago. "It seems the American public had better sense than Wall Street and Washington — the American public said, don't throw good money after bad."

Well, that might have been nice to know yesterday. But hey, thanks for letting us know at all!

The real question is; if $700 billion was okay, why didn't they just approve $1.4 trillion, or maybe $20 trillion to make the economy just awesome! What? Inflation you say. Don't talk about that? Suddenly making $700 billion dollars appear out of nowhere isn't inflationary. Of course it's not. What? The dollar will drop? Nope, again, making $700 billion appear out of nowhere won't make that happen either. Which also, means, of course, that the price of oil won't rise either. Look at all the bullets we just dodged. Isn't it awesome?

But at least they fixed the underlying problems. So that this won't happen again.

Further, according to House Oversight Committee staff, Emanuel has received assurances from Pelosi that she will not allow what he termed a "witch hunt" to take place during the next Congressional session over the role Fannie Mae and Freddie Mac played in the economic crisis.

Oh Wait. Nevermind. They aren't going to fix it.

Ask yourself. If a Republican or Republicans were at the heart of this crisis, would there be investigations by the Democrats. Of course there would. What does that tell you?

Rep. Barney Frank (D., Mass.): I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . .

That's Barney Frank, who is involved with a former chief executive at Fannie Mae. Conflict of Interest? Of course not! He's a democrat! Silly.

Chris Dodd (D) getting sweetheart loans from Countrywide? Is this a problem? Nope! He's a democrat!

Maxine Waters (D), Gregory Meeks (D) getting lobby money from Fannie Mae? Problem? Nope! Democrats.

Well at least these people who have conflict of interests and are getting money from Fannie/Freddie didn't write the bailout bill, right? Nope. Oh man, not looking good is it?

Here's a great summary of how this crisis happened.

The government is refusing to fix the cause of the problem. Instead, all they are doing is removing the Moral Hazard. If Washington does not fix the CRA to ensure this doesn't happen again, we are going to be here again in a few years - and it'll be worse the next time around. Count on it.

On the plus side, murder is only difficult the first time around. The next time they come screaming for money, it'll be easier. So there's that.

This isn't a solution. This is a gateway to a bigger problem.

Update: Shoot yourself. Get a house!

"We're going to forgive whatever outstanding balance she had on the loan and give her the house," Faith said. "Given the circumstances, we think it's appropriate."

Bullet: 20 Cents
Free healthcare from the government: Free!
Getting a home for not paying your bills and trying to off yourself: Priceless!

(H/T: Hotair)

The Sarah Palin Problem: How to Resolve It

Both Democrats and Republicans have, what I'll call The Sarah Palin Problem. It's a complex situation that'll resolve itself in the coming months. And we'll see what happens in November.

For Republicans, she's a good problem to have. She energizes the base of the party, something that McCain, alone, could never do. The enthusiasm gap for the election has never been closer; and McCain actually pulls more Republicans (90%) than Obama pulls Democrats (82%) (link). Since the party identification is narrowing as well, this greatly benefits McCain and affords him the chance to win in November, something that was unthinkable 3 weeks ago.

Socialism: Property And Healthcare Belong To Us

The socialist government of Spain is winning friends all over the EU. Half a million British expatriots are set to lose their healthcare under a new law. The government says the expats, many over 50 years old, are a burden on the system.

A spokesman for the regional health ministry said: 'It is costing us an extra €1bn [£790m] annually to look after a million new residents as well as long-stay tourists, and our services are at saturation point.'

There's more, though.

Back in 2002 the provincial government offered free healthcare to all expatriates of all EU nationalities in order to encourage foreign investment in the area's then flourishing property market but today the market is enduring a significant downturn. In the past year alone, property has fallen by 40% on the Costa Blanca.

Why would property along the coast drop more than 40% in a single year. There has to be a reason for it, doesn't it? When you read the previous story, you'd assume it was because of a housing slump. But if you are like me, you remember this story from earlier in the year.

Enforcing a much-neglected 1988 law, the Socialist government is getting tough about what constitutes coastal public domain — the strip of land stretching back from the water's edge — and telling thousands of house and apartment owners their properties do not really belong to them.

"Out of the blue we've been told the house we have owned for more than 30 years is no longer ours," said retired British electronics engineer Clifford Carter, 59, who lives with his Spanish wife in La Casbah, a beach side complex in eastern Spain.

"The house was built legally, but now they say we can only live here until we die but can't sell the house or leave it to our children," said Carter.

...

Along the Spanish coast, a protest group formed in January says it already represents 20,000 people. It notes that up to half a million others — apartment and villa owners and restaurant and hotel proprietors — could be affected. Most are Spaniards, but many are foreigners.

"This is the single biggest assault on private property we have seen in the recent history of Spain," said Jose Ortega, a spokesman for the group and lawyer for many of those affected.

At least we know the reason that the prices dropped 40% in a year. The socialist government is destroying houses along the coast to "clean it up" and not allowing properties to be sold, thus holding down property taxes the provinces could raise. And then complaining that people are a burden on the system. Socialism is a wonderfully vicious circle.

Those British ex-pats should take heart. In a few years, even your home country wants you dead.

A newly released study shows that doctors and heart specialists who care for the elderly were all found to be influenced by the patients' age when making their recommendations; it seems the age cut-off for comparison was 65.

The study found that too often resources are limited and doctors have to make difficult decisions.

On the plus side, at least they aren't writing you lettings asking if they can kill you. Yet.