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Scamming the terminally stupid ...

I could not stop laughing when I read this item in the San Francisco Chronicle, made that much more funny because it involves San Francisco liberals and the “perfect people for a perfect planet.”

According to the Chronicle …

S.F. fliers may pay their way in carbon usage

“Environmentally conscious travelers flying out of San Francisco International Airport will soon be able to assuage their guilt and minimize the impact of their air travel by buying certified carbon offsets at airport kiosks.”

“The experimental program, scheduled to start this spring, would make SFO the first airport in the nation - possibly the world - to offer fliers the opportunity to purchase carbon offsets.”

" ‘We'd like people to stop and consider the impacts of flying,’ said Steve McDougal, executive vice president for 3Degrees, a San Francisco firm that sells renewable-energy and carbon-reduction investments and is teaming up with the airport and the city on the project. ‘Obviously, people need to fly sometimes. No one expects them to stop, but they should consider taking steps to reduce their impacts.’"

Consider the impact of dumping one drop of water in the San Francisco bay … now calculate the impact of this meaningless act on raising the sea level of the Pacific Ocean.

“San Francisco's Airport Commission has authorized the program, which will involve a $163,000 investment from SFO, but is still working out the details with 3Degrees. Because of that, McDougal said, he can't yet discuss specifics, such as the cost to purchase carbon offsets and what programs would benefit from travelers' purchases.”

Are the residents of San Francisco or the State of California putting up any taxpayer money for this project? What programs will benefit – is this the latest business model for charitable giving? How much of the money earned will be used for executive salaries at 3Degrees?

“But the general idea, officials said, is that a traveler would approach a kiosk resembling the self-service check-in stations used by airlines, then punch in his or her destination. The computer would calculate the carbon footprint and the cost of an investment to offset the damage. The traveler could then swipe a credit card to help save the planet. Travelers would receive a printed receipt listing the projects benefiting from their environmental largesse.”

Whoops, this is not a charity … but a profit making enterprise. Great shades of Al Gore!

The carbon offsets are not tax deductible, said Krista Canellakis, a 3Degrees spokeswoman.

The perfect scam: nothing more than a piece of paper …

"While the carbon offsets purchased at kiosks can't be seen or touched, they are an actual product with a specific environmental claim whose ownership is transferred at the time of purchase," she said.

I wonder if a lawsuit could be used to make them prove their claim that the purchaser’s action will actually save the planet by mitigating global warming?

“Mike McCarron, airport spokesman, said the projects offered will be chosen by the mayor's office, in conjunction with 3Degrees, from a list certified by the city's Environment Department. Airport Director John Martin told the commission that projects could include renewable energy ventures in developing countries, agriculture and organic waste capture, coal mine methane capture, and sustainable forestry.”

Considering that the people who will control the investment of this money may derive considerable financial benefits from their actions, I wonder what form of oversight might prevent misuse of funds gathered using what amounts to an automated solicitation for funds on public property?

“Nathan Ballard, a spokesman for Mayor Gavin Newsom, said a portion of each offset purchase would go to the San Francisco Carbon Fund, which supports local projects such as energy-efficiency programs and solar panel installations for low-income housing, as well as efforts to convert waste oils into biodiesel fuels.”

Of course, the city of the politically correct wants their piece of the action which could be directed by the politicians for their own benefit.

Suggests? You mean they really don’t know …

“The cost of offsets for SFO travelers is still being negotiated, McDougal said, but figures on the company's Web-based ‘carbon calculator’ suggest that a two-hour trip uses about 1,000 pounds of carbon dioxide per person, and the cost to offset that would be about $4. Offsetting a trip to Europe would cost $36.”

And who is doing this negotiation? Who is representing the traveler? And what factors are being built into the costs?

"’It's definitely not going to double your ticket or anything,’ he said. ‘It's going to end up being a small percentage of your total airfare.’"

Where is the competitive bidding that would insure that the consumer was getting the best deal possible for their money?

“Under the agreement, the airport will provide the kiosks and 3Degrees will supply the software and the certified carbon offsets being sold and will operate the program. Kiosks will be placed throughout the airport, with locations at the customer service desk in Terminal 3 and two wings of the International Terminal. 3Degrees will get 30 percent of each purchase, with the rest going to carbon-reduction projects. The agreement calls for a one-year program, with a possible extension.”

"’The carbon kiosks will not only reduce global warming,’ Ballard said, ‘they will serve an educational function. It's something interesting to do while you're killing time at the airport.’"

“Given the innovative nature of the venture, airport officials said they don't expect 3Degrees will turn a profit - at least not at the outset. McDougal said it's impossible to predict how many passengers will want to make what is essentially a voluntary contribution to compensate for the impacts of their air travel. But he hopes the program takes off.”

Like everything political in San Francisco …

" ‘Hopefully, it will be successful,’ he said. ‘But if we just have a lot of people stop and read the information and think about it, that's something we've accomplished.’"

What can YOU do?

Beware of pilot programs conducted in liberal democrat enclaves such as San Francisco. For it might only be a matter of time that this program morphs into a carbon tax on all travelers, the kiosks are abandoned and the tax is applied directly to all tickets; and not on a voluntary basis.

Beware of entrepreneurs capitalizing on the subject of global warming. It is the perfect scam – nobody will be able to see results for hundreds of years. In the meantime, your hard earned money may be re-distributed outside of the United States where it will, in all likelihood, be squandered or stolen by corrupt politicians and their special interest friends.

Demand proof of program efficacy before parting with your hard-earned money; that is, if you are so-inclined to support the “perfect people for a perfect planet.”

-- steve

Quote of the Day: “Global Warming: Something for nothing, money for free.”  -- steve

--CJ's US History Work

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

S.F. fliers may pay their way in carbon usage


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


Christmas gifts for everyone ...

Under my Christmas tree, I will expect to find five specific gifts …

christmasgraphic11 NATIONAL DEFENSE

Our enemies should beware that President-elect Obama must use overwhelming and decisive force to counter any attack lest he be thought impotent.
                ECONOMY
Historically, recessions are followed by periods of unprecedented growth and opportunity will once again be plentiful for those who are prepared.
christmasgraphic3
christmasgraphic14               OBAMA

Constrained by the potential of a massive citizen revolt in 2010 --featuring a major change in the legislature – as well as fewer available dollars to spend on social programs.
             DEMOCRATS

Held up to the light for all to see – the waste, fraud and mismanagement whenever they are involved with social programs and the unions.
ctree_1a
CHRISTREE021z          REPUBLICANS
A chance to return to their fiscally conservative roots and common-sense programs.

A sea change in leadership that is beneficial to the country.

Wishing you and yours a  safe Merry Christmas and the optimism that comes from knowing that the United States has faced troubled times in the past – and has always overcome adversity using the collective ingenuity of its citizens.

me_ch2a

-- steve


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


While other states laugh at the corrupt machinations in Illinois: the corruption of one-party rule is wreaking havoc in California

About the only people who think that Arnold Schwarzenegger is a conservative Republican are his many publicists: and they do it because they are paid to promote him.

Truth be told, Schwarzenegger is a RINO (Republican In Name Only) who openly styles himself as a “post partisan” politician – a man of the people, not beholden to any political party.

If this were only true, and better yet, if the Governor was more than a narcissistic Hollywood caricature created by smoke and mirrors, he might have lived up to his campaign promises of reducing the waste, fraud and special interest corruption in the State of California – as well as hold the profligate spending of the democrat legislators in check.

Now, after five years of Schwarzenegger’s so-called post partisan leadership, we find that he appears to be as impotent and self-absorbed with fundraising as the predecessor he replaced, Gray Davis. In fact, he has proven to be a more able fundraiser that Davis, a Governor who was often symbolized as having his shorts around his ankles when it came to special interest fundraising. Infinitely more able as he created special non-profit foundations who funded his jet-set lifestyle while initially refusing to reveal their donors. Probably because most were special interests, lawyers and lobbyists.

And now we face a major challenge. The Golden State of California is running out of gold. According to who you ask, we are facing an $12 - $24 billion dollar deficit, which is projected to rise to somewhere in the neighborhood of $42 billion in eighteen months.  All on Schwarzenegger’s “post partisan” watch.

Even Schwarzenegger’s own party can’t trust him to do the right thing for the State. Of course, that is partly because he appointed liberal democrats to major positions of power rather than qualified Republicans. He spent more time with the democrats than he did with members of his own party. Even the positions he takes mirrors those of another liberal democrat, his fabled relative, Ted Kennedy.

Schwarzenegger may be about to commit a crime against the people of California …

The democrats have cooked up a specious scheme in which taxes are replaced with fees in such a manner as to require a simple majority vote of the legislature – no Republican need vote for the tax measure. Of course, the California Constitution is pretty specific on the need for a two-thirds vote to pass a tax. So the measures being proposed by the democrats are illegal.

Perhaps the democrat-dominated legislature believes that they can collect enough money to paper over much of the present deficit – and it might be years before the courts order them to return the money to the taxpayers; probably in the form of reduced tax rates or a suspension of some fees. Heaven forbid, they should cut a check and return our money to us – with interest.

If this ruse is ruled illegal, I would be all for indicting Schwarzenegger and the voting members of the legislature for an actual crime: conspiracy to commit grand theft, fraud and misrepresentation.

What can Schwarzenegger say?

He has failed miserably to provide leadership in the State of California and his people are already talking about a position as a California State Senator in 2010 – and, if the Constitution can be amended, the Presidency. There can be no argument with the basic numbers. Since Schwarzenegger took office, spending has accelerated beyond population growth and inflation – up $41 billion (40%) to $144.8 billion since 2o03. Hardly the record of a fiscal conservative.

And where did this money go?

The people of California continue to see the state’s crumbling infrastructure which is in dire need of repair or replacement. The people see their roads deteriorate in front of them as the freeway becomes a massive parking lot moving in the same general direction of the traffic flow. Of course, who can even see the surrounding area as politically-expedient “sound walls” are given a higher priority than actual roadway repairs?

Part of this money has gone to subsidize the illegal aliens who are now assuming more and more power in the political process. Through an evil confluence of the the unions who see more members, more political power and more dues; the major contractors and developers who see cheaper labor; and the politicians who see a large bloc of voters susceptible to the manipulative techniques which work on the indigent and illiterate – they all watch our healthcare, education, judicial, retirement, social and cultural infrastructure fail.

Part of this money has gone to satisfy the special interests who are trying to simply grow government into a self-sustaining mass that can wield enough political power as to override the wishes of the citizenry. Part of the funds went for personnel costs associated with union contracts. Part of the money went to outside consultants. And the money that was not spent on ineffective programs was probably lost in waste, fraud and corruption.

But the bottom line remains, much of this money need not have been spent and that which was spent lacked adequate oversight and control.

What can YOU do?

It is almost worth the time, effort and money to attempt to re-call the governor before he becomes a bigger embarrassment as a Senator. But considering how helpful he has been to the tax and spend democrats, he might wind up with a job in the Obama Administration.

Tell your elected officials that the democratic party is through in California if they attempt to illegally maneuver their way through this morass of their own making.

It’s time that we bring back a two-party system in California as the democrat party has proven to be totally incompetent in managing the people’ business and finances.

-- steve

Quote of the day:  “Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are even incapable of forming such opinions.” -- Albert Einstein

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links: (none)


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


An afternoon in Malibu, California ...

Remember, it is sometimes better to rise above it all …

 aDSCN0425

Remembering to lighten up and celebrate    freedom …

bDSCN0436

Remembering those who are not with us …

ADSCN0375

And most of all, remembering that, bad as it may now seem, we are living in truly miraculous    times …

flag

Wishing you are yours the best during this holiday season. Be well, be safe … and be happy!

One Citizen Speaking


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


Freedom from government tyranny sometimes requires an act of civil disobedience ...

In government-related matters, sunshine is the best disinfectant and laughter is often the best antidote …

From the folks at KFYI

“VIDEO: Santas Disable Enforcement Cameras in Tempe: Watch as some Santas gift wrap three speed and red light cameras.”

“A group of Santa impersonators are on the naughty list of Arizona law enforcement officials.”

“A YouTube video posted Monday shows four people dressed as Kris Kringle, white beards and red hats included, covering three speed and red light enforcement cameras in Tempe.
Two are covered with boxes - one decorated with Christmas wrap - and the third is blocked with what appears to be a red sheet.
The Jackson 5's ‘Santa Claus is coming to town'' plays during the more than two-minute video.
At the end is a message that reads:
’Ho Ho Ho! Death to the surveillance state! Free movement for all people!’'

What can YOU do?

Remember, in the great majority of cases, automated red light enforcement cameras are more about municipal revenue generation than they are safety. Especially when the municipality contracts with third-parties to provide the equipment, installation and shares the revenue.

For more on the egregious nature of red light cameras, visit www.highwayrobbery.net for more information.

And as a Christmas gift, remember that approximately 80% of all tickets given by automated traffic enforcement devices are for “rolling right turns.” Make a full stop before turning right and scrooge your municipality out of their ill-gotten gains.

-- steve

Quote of the day:  “There is nothing worse than aggressive stupidity.” -- Johann Wolfgang von Goethe

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

KFYI - "The Valley's Talk Station"


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


Arnold Schwarzenegger: failing upward to the Senate or, heaven forbid, the Presidency

Schwarzenegger is still posing for the crowd … do little other than flexing his mouth as he assumes a pose as the Governor of California – using Hollywood smoke and mirrors to hide the fact that he has done very little of note for the citizens of California and that playing tough guy with your own party is often a losing proposition.

According to the Los Angeles Times … 

“Governor reveals tricks of the trade on '60 Minutes'”

Unfortunately the tricks that were played on the public by the governor and the legislature have led California from the Golden State to potential ruin.

The people elected Arnold Schwarzenegger to eliminate the waste, fraud and corruption in California government. To help hold the legislature’s profligate spending in check before the State was forced into bankruptcy.

They did not expect that Schwarzenegger would all but ignore his own party and spend more time courting liberal democrats, thus earning him the sobriquet: “RINO” (Republican In Name Only). That he would quickly learn to surpass his predecessor, Gray Davis, who was widely acknowledged as a master 24/7 fund-raiser. That he would learn how to manipulate private foundations to finance his travel and expenses – while initially hiding their contributors.  That he would learn the tricks of papering over budgetary deficits using borrowed money from Wall Street and intra-account borrowing.  And worst of all, using Hollywood smoke and mirrors to pretend he is a post-partisan politician: working for the people.

“Schwarzenegger says that without his acting experience, his job in Sacramento would have been much more difficult. He also says he'd be interested in becoming president if it were possible.”

Reporting from Sacramento -- Gov. Arnold Schwarzenegger hasn't said whether he would pursue another job in politics after his final term ends in two years. But there's at least one position he might be interested in, if he were eligible for it: president.
"Yeah, absolutely," Schwarzenegger said in an interview airing tonight on "60 Minutes" on CBS, when asked by correspondent Scott Pelley if he would like to be president. ‘I think that I am always a person that looks for the next big goal. And I love challenges. I always set goals that are so high, that are almost impossible to achieve.’"

Is this a diversionary ploy to allow him to continue his fundraising activities with an eye to becoming a Senator in 2010?

“At the moment, becoming president would be impossible. Schwarzenegger, who was born in Austria and became a U.S. citizen in 1983, is not a ‘natural born citizen’ of the United States, as required by the Constitution.”

“Talk of amending the Constitution was a hot topic in California and Washington during Schwarzenegger's first couple of years in office, when some of his backers waged an "Amend for Arnold" campaign and members of Congress proposed changing the rule. Schwarzenegger has said he would welcome such a move but has mostly joked about running when asked about it publicly.”

Many a truth is spoken in jest. Personally, I think that the possibility of a foreign born President, especially one with a Eurocentric background, might expose America to great danger.

Matt David, his spokesman, noted that on "60 Minutes," the governor was responding to a theoretical question.

In the interview, the governor also lifted the veil on some of his tricks of the trade, both in his cinematic and political careers. With Pelley lifting weights as they spoke, Schwarzenegger said that when he played a muscle man in the movies, he just pretended to lift 300 pounds.
"I mean, when you do it for the cameras you only do 50, so you take it easy," he said. "You don't kill yourself."
He described a scene in the movie "Stay Hungry" with actress Sally Field in which he had to lift 225 pounds over and over.
"I learned very quickly: Put on wooden plates," Schwarzenegger said.
His governing style apparently involves some acting as well.

"People think show business was in Hollywood, but I think [ Ronald] Reagan was absolutely right," Schwarzenegger said, referring to the former California governor and president. "If he wouldn't have the training in acting, this would have been a very difficult job."

It angers me that Schwarzenegger even mentions Ronald Reagan. Yes, Reagan was an actor that became the California Governor and then went on to the presidency. But where Reagan had a core fundamental values and honed his political philosophy of conservatism, Schwarzenegger seems to be a pragmatic opportunist. Using what ever tools are at his disposal for his own self-interests.

A review of Schwarzenegger’s past performance as governor reveals numerous opportunities to appoint qualified Republicans to positions of power – and yet, it appears that he would appoint democrats to the positions to achieve some unknown political benefit to himself.

Global Warming …

And now it appears that Schwarzenegger has adopted the religion of global warming as his new vehicle to propel him upward on the political food chain.  Knowing full well that no results might be measurable until long after he has played the celestial stage. Which may be indicative of his current philosophy of trying to kick the budgetary can once more beyond 2010.

60 minutes interview …

One interesting item is how Schwarzenegger sets almost impossible goals and then having achieved them, moves on to the next goal. It seems to me that, having achieved the position of Governor of the State of California, he would make a success out of the position before even thinking about moving on.

Another interesting fact that nobody mentioned is that the $40 billion dollar deficit that is mentioned is the projected deficit in the next 18 months – long after Arnold Schwarzenegger signed the current budget into law. Either he signed a bogus budget or something is going radically wrong on his watch. Or perhaps a little bit of both. For more on Schwarzenegger and the California budget, see my previous blog entry.

“Schwarzenegger and the Legislature: Tiptoeing thru the tulips while California plunges into a deeper recession ...”

The Schwarzenegger solution …

“Governor Arnold Schwarzenegger is asking state employees to take time off work- without pay - as he looks to solve the state's budget crisis.”

“The governor issued an executive order Friday. It calls for a state hiring freeze, asks state agencies to cut payrolls by 10 percent, and orders state employees to take two days off a month without pay.” <Source>

Like every other organization caught up in the current economic crisis, Schwarzenegger should be eliminating thousands of state employees who serve little or no real purpose other than to satisfy the bureaucratic need to shuffle paper. Consider everyone who does not fulfill a critical public safety position and then start cutting. Start with the political appointees in high paying positions. Eliminate the media spokesmen and public relations counsel first.

Of course, being somewhat a left-leaning liberal democrat in Republican clothing, Schwarzenegger is afraid to anger the unions in cutting back infrastructure jobs -- as he has threatened the citizens while he stands by the 405 freeway which is under construction -- as he will require their support in his 2010 bid for the Senate. Imagine that: the tough guy turns out to be a girly man when it comes to making the hard decisions and acting like a man.

What can YOU do?

Keep Schwarzenegger out of the Senate. We do not need another phony politician to pose as “a man of the people” and do nothing except fundraise and court the media.

Demand that Schwarzenegger clean up the mess he has made in the State by curtailing waste, fraud and corruption as well as rein in legislative spending using his veto pen.

Demand that Schwarzenegger give up the Republican designation and stop taking money under false pretenses unless he attempts to re-build the party he has so often turned his back on. 

Realize that if someone should prove that Barack Obama was not a natural citizen, then Schwarzenegger might have an actual chance at the presidency via a “backdoor” electoral process. Heaven forbid.

Elect a conservative Republican to serve as our next governor – one that does not come out of the San Francisco/Silicon Valley sphere of influence.

-- steve

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

Governor reveals tricks of the trade on '60 Minutes' - Los Angeles Times

The Times Modifies its story on Schwarzenegger


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


Are the California special interests funding State Senator Don Perata's fight against political corruption?

Collecting money under false pretenses should be a crime: perhaps fraudulent misrepresentation …

According to the Sacramento Bee …

“Former Senate leader Don Perata has transferred another $400,000 to his legal defense fund from a campaign account he created to advocate for ballot measures.”

Using the people’s donations to fight a personal legal battle?

“The latest transfer means the Oakland Democrat has now taken a total of $1.9 million raised in an account earmarked for ballot campaigns and used it to shore up the legal fund he created to fight an FBI corruption probe.”

“The Bee reported on the first $1.5 million transfer earlier this month.”

Legal, but immoral – the story of California democrat politics …

“The transfers are legal, though California's campaign watchdog agency is considering stricter regulations of ballot accounts like Perata's.”

Why would a political corruption investigation take four years if there were specific and provable charges?

“The FBI has been investigating Perata since 2004, inquiring about his business dealings and those of his family and close friends. Both Perata's and his son's homes were raided by FBI agents four years ago.”

“No charges have ever been filed, though Perata has tallied up more than $2.1 million in expenses fending off the investigation.”

Could it be that the investigation was botched by the FBI, a prosecutor reluctant to bring charges against a politically powerful legislator or legal maneuverings to delay the process?

Last minute money grab?

“His defense fund was $250,000 in debt as of the end of September, as the former leader faced the unwelcome prospect of being out of office - and without leverage over potential donors.”

“So Perata has transferred $1.9 million (out of the $2.7 million he had amassed) from the ballot committee to ease his legal debt load.”

“Jason Kinney, a Perata spokesman for legal issues, told The Bee in a Dec. 12 story that Perata ‘had some remaining funds after the election and he appropriately made the decision to move that money to legal defense.’"

Shouldn’t this money have been kept for political rather than personal use?

The first $1.5 million transfer was made the day after the election. The second $400,000 transfer was made on Dec. 5 and reported late Friday.

Why didn’t he use all of the money available on the campaign?

“It's an open question whether Perata's money could have tipped the balance in the campaign against Proposition 11, the Nov. 4 redistricting measure that stripped lawmakers of the power to draw their own political districts.”

“Perata had been the leader of the No on 11 campaign, which was outspent 10 to 1 by Gov. Arnold Schwarzenegger and his allies. It passed by the narrowest margin of the dozen measures on the ballot -- with 50.9 percent of the vote.”

“Perata donated $161,000 from his ballot fund to defeat Proposition 11, compared to the $1.9 million he saved for his own legal defense. He has roughly $600,000 left in the ballot account, according to a back-of-the-envelope estimation.”

Another apparently suspect California politician let off the hook …

Whether or not Perata is guilty of these particular political corruption charges remains to be scene. What we do know is that Perata led the special interest fundraising bandwagon with little transparency or accountability.

What can YOU do?

It is high time to send relatively honest people to Sacramento. No more celebrities or professional politicians. No more representatives of the unions or other special interests. The people need to take back their government or wind up looking like Illinois with a one-party, majorly corrupt, political system.

Demand our elected officials use funds for their intended purpose or turn them over to the general account for the use of all people in the State of California.

-- steve

Quote of the day: “When a stupid man is doing something he is ashamed of, he always declares that it is his duty.” -- George Bernard Shaw

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

Capitol Alert: Perata siphons $400,000 more to legal fund


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


OBAMA: MAN OF THE PEOPLE SUFFERS THROUGH ILLINOIS COLD IN HAWAIIAN $9 MILLION MANSION

I am beginning to see that Barack Obama just might be a ray of sunshine, providing everybody with a healthy dose of hope and optimism as he goes about introducing change into the upcoming Administration.

Where I previously saw a re-do of Carter & Clinton, I am seeing more of George Bush in Obama each and every day.

He has already double-crossed his party on a few issues and has appointed cabinet members that seem fairly normal – the kind that are likely to do favors for their friends and not be too radical to upset the rest of us.

So why should we be surprised when, once again, we see democrats engaging in their favorite activity: telling the rest of us that we need to sacrifice for the cause – and, most importantly, “to do as they say, not as they do.” 

Obama on holiday …

Of course Obama is working hard, preparing for the transition, and has just run a tough race that lasted longer than most modern political contests. He needs to be well-rested to serve the nation – and, after all, there are security arrangements to consider.

And why shouldn’t he vacation in where he was born instead of a cold, damp, windy Chicago where he would have to make do with a mini-mansion under $2 million dollars?

I know it is cold in Illinois, because here is what a friend wrote …

“I am in Illinois and have been since 12/9 -  we have had almost three feet of snow since I got here –and are  expecting another foot tomorrow night.  Well it is not snowing today at least ….but the wind chill is 30 below here…….   guess how happy I am about that.”

What I want to know is …

Who is paying for the vacation? Of course, I hope that this vacation is being paid for by Obama himself and not  the taxpayers. But there is always the feeling that the campaign might had some excess campaign funds? Or that he is the guest of his favorite unions? Or maybe this is a Hillary-style “listening tour” or the remnants of a Congressional fact-finding mission? Did anyone check if Tony Rezko made the reservations? But then it could be something totally innocent, like the mansion owner wanting to be the new Senator from Illinois?

Check out how politicians suffer for us …

Capture12-22-2008-10.03.08 AM

According to the Associated Press …

BIG KAHUNA BAM: VACATIONS IN $9M OAHU MANSE

“KAILUA, Hawaii - The Obama family, on vacation in Barack Obama's native Hawaii, is staying in a $9 million single-story oceanfront home in a pricey but laid-back neighborhood over the mountain from downtown Honolulu, where the president-elect grew up.”

“Photographs from a 2007 real-estate listing show a stone-encircled swimming pool and an open-air sitting room with views of a grassy lawn and the ocean. City tax records show a Houston man bought the property in January for $9 million. “

Perhaps there is more to this Obama/Bush III thing than we previously thought?

Obama researching real estate crisis …

“It is among the most expensive on a block where shoreline lots go for a minimum of $3 million and non-beachfront properties easily top $1 million.”

“The figures outstrip the median single-family home price on Oahu, which stood at $594,500 in November. “

Perhaps Obama needs to increase the loan limits on FHA-insured housing? I wonder if their is a branch office of ACORN in the neighborhood to protest the abnormally high rents and the lack of affordable housing?

Check out the AP story or see the rental listing.

In all seriousness …

I am sure we all wish President-elect Obama a pleasant holiday interlude before facing the multiple upcoming crises that will mark the beginning of his presidency. This may be one of his last chances to really relax before the going gets tough.

Besides, nobody except the far-left liberal democrats actually believed he was a man of the people and more like them than someone who wanted to adopt the George Bush lifestyle. I wonder if Obama can ride a horse, a mountain-bike and drive a pickup truck?

Anyway, look on the bright side: he does believe in global warming -- probably why he is avoiding Chicago with their minus-30 degree (with windchill factor) weather. Proof, once again, that there are unseen benefits to global warming that are being ignored by the democrats. Especially the fact that more people die in the cold, then in the heat. <Source>

-- steve

Reference Links:

BIG KAHUNA BAM - New York Post


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


Democratic hypocrisy and the unions ...

UPDATE: 12-22-08  WITH THE BEST OF INTENTIONS  ...

Here is a comment from one of my readers which points out the progression of most unions.

"In 1977, myself and fellow employees started a union as a bargaining tool against a municipality run by Democrats. The 80 employees were mostly very conservative, but were taking it in the shorts as far as wages and benefits. We started the union on the premise of increasing wages, eliminating nonsensical work rules, promoting individuality and ingenuity over the good old boy system. Well, 30 years later, things have changed and it is now run by liberal’s who have destroyed what we started. If that’s what evolution is all about, I want no part of it. Things do change, not always for the best."

Like most unions which were started by decent, honest individuals seeking safety improvements or escaping onerous working conditions, many unions have morphed into little more than political machines lead by a fat-cat leadership which wants to emulate the lifestyle and earnings of corporate titans. Often selling out their members to support their own interests.

Original blog entry ...

It is no secret that I am not a fan of the unions – especially public service employee unions who have the de facto power to cripple this nation’s public services if the government does not give in to their sometimes extortionate demands.

I have never seen a union voluntarily vote to reduce the size of government, eliminate nonsensical work rules, promote individuality and ingenuity over seniority and temper their demands to coincide with the economic time.

In fact, I believe most unions are headed by an often corrupt leadership which feels entitled to all of the perks and privileges granted to those who actually produce goods and services. And my greatest fear is that we are moving toward a European union model – a coalition of socialists and communists who demand more and more government entitlements and can shut down major cities at will with their work stoppages and outright strikes.

I also believe that there is an unholy alliance between the democrats, especially corrupt democrats, and the unions which does not bode well for a nation that needs to recover its financial footing and to repair or replace a significant amount of its decaying and crumbling infrastructure without undue fraud, waste, mismanagement and corruption.

Has anybody noticed that we are in the middle of an economic crisis involving housing?

In a time when people are struggling to stay afloat in a troubling economy and, for some, save their homes from foreclosure, I find that it is unseemly for the democrats to excoriate companies for their profligate partying – and then watch while a government agency accepts favors from a union.

According to the Washington Post …

“Cool Is the Rule When HUD Is in the House”

“If Barack Obama really wants to "make government cool again," as he said during the campaign, he might want to check out the Department of Housing and Urban Development.”

About 600 HUD employees had a pretty cool time yesterday during a holiday party at the nearby L'Enfant Plaza Hotel. It was sponsored by Local 476 of the American Federation of Government Employees.”

“But it wasn't just the smooth sounds of a tight band that made it cool. Or the good time partygoers had dancing the Electric Slide. Or the tables with cheesecake, carrot cake and that deliciously moist chocolate cake that folks who clearly don't need another empty calorie crowded around.”

“What makes it cool is the attitude that flows from the top down and the bottom up.”

“It starts with Secretary Steve Preston. He's known for his town hall meetings -- they're really more like pep rallies -- that he holds by video hookup with employees around the country. He wasn't there yesterday, but Roy Bernardi, the department's deputy secretary, appeared and thanked the union members for their good work.”

" ‘The employees here have been called on to do more, and they have done more without complaint,’ he said after his speech. He also spoke about things the HUD bosses do to improve conditions for workers, including a 6 a.m. shift for those who want to start early and leave early, an enhanced plan to help them pay back student loans and training programs.”

“He recited a list of other accomplishments. Among them: Last year, for the first time in 13 years, not one departmental program was on the Government Accountability Office's high-risk list. That list covers programs that are vulnerable to fraud, waste, abuse and mismanagement. He thanked employees for other programs that saved taxpayers money, and he sounded more sincere than bosses sometimes do when patting themselves on the back by praising their staff.”

Coincidently, HUD Secretary Preston was nominated to fill the shoes of the disgraced Bush crony Alphonso Jackson who is under federal investigation for alleged cronyism, introducing party politics into contracting decisions and various other alleged misdeeds.

“One difference between HUD and agencies with mission drift is that rank and file and management seem to share a vision -- a vision of making decent housing more available and our urban areas more livable.”

" ‘We think we'll be the ones leading the recovery,’ is the way Patrick W. Simien, a HUD lawyer, expressed the positive, forward-looking attitude shared by his colleagues. ‘People are looking forward to the challenge and having a positive impact on the economy.’"

What would a government-related party be without a lawyer present?

A love fest in preparation for the new Administration …

“While it's common for the brass at agencies to talk about how great things are, in HUD's case, the union organizers have some pretty good things to say, too. ‘We have decent, moderate Republican leadership,’ said Eddie Eitches, Local 476's president. The Local has deep penetration, with about 1,100 members in a bargaining unit of 1,800 employees, according to Eitches. His comments are high praise coming from a union leader whose members adore Obama. If Shaun Donovan, New York City's housing chief and Obama's pick to head HUD, is confirmed, he'll find an agency whose employees have pretty good morale.”

“Their love for the president-elect was shown by the long line of members waiting to have their picture taken against a blank green screen. Through a bit of camera magic, wizards from Event Digital Photography manipulated the photo into a picture of the member standing next to Obama with a Christmas Tree and fireplace in the background.”

What’s not to like? President-elect Barack Obama was closely associated with a democrat community activist group that militantly fought for lower cost housing – illegal aliens included – using organizing techniques set forth by one of Hillary Clinton’s heroes, Saul Alinsky. Considering the love affair between the democrats and the unions, the union’s penetration into the bargaining unit will be significantly greater and we can anticipate federal funds flowing to community activists and their groups in the near future. Unfortunately, these community funds are often accompanied by waste, fraud and corruption which features a stunning lack of government accountability and oversight.

Pandering politicians …

“But it also was a bipartisan affair.”

“Rep. Frank R. Wolf, a Northern Virginia Republican who starts his 15th term next month, was there to greet the workers. So was Rep. Donna F. Edwards, the Maryland Democrat who was first sworn in six months ago tomorrow. Eitches likes to point out that her victory came after she spent much more time and talked much more substance at last year's party than then-incumbent Al Wynn did.”

“Wolf has been a supporter of such issues as allowing workers in the Federal Employee Retirement System to receive credit for accrued sick leave upon retirement and expanding telework opportunities.”

“Edwards was there to show her appreciation to the union and her dancing skill. ‘If your voting depended on my dancing,’ she modestly told the crowd, ‘I think I'd still be at my old job.’"

“She reminded the union members that she is the child of two government workers. Perhaps that's one reason she's so serious about looking at the jobs agencies farm out to contractors. Too much of that can be ‘debilitating and demoralizing to the federal workforce,’ she said after her brief talk to the crowd.”

Can you say “larger government” and “more union members?”

" ‘We need an aggressive federal workforce,’ she added, to oversee expenditures related to America's two wars and the various financial rescue packages.”

Is this what she really means: it’s our turn to handle the money and make sure it is spent on our causes.

“After the speeches, some workers returned to the office, and the band, East Origin, played an nice rendition of ‘That's the Way Love Goes.’"

Local 476 knows how to throw a holiday party. ‘It's like a family," Simien said of HUD. " ‘Everybody knows everybody after you've been here a few years.’ "

What ever happened to our civil service system which was designed to assure fairness and performance in government positions? Why are we allowing the unions, with their abominable record to sink their hooks farther into a government which is already bloated, inefficient and filled with waste, fraud and corruption. Year-after-year, the GAO (Government Accountability Office) claims that many government Agencies and programs are simply unauditable for various and sundry reasons. Some cite old-fashioned accounting systems, others cite manual spreadsheet procedures prone to error. With all of the money that our government spends, one would assume that they would be more accountable to the taxpayer than to the self-serving special interests which dominate Washington politics.

Fighting for power …

Our national defense demands that we close our borders and control the hoards of illegal aliens who are invading our shores. However, the most unions are dead set against anything which prevents these illegal aliens from becoming dues-paying union members and often looks the other way where illegal aliens are involved. So why would we continue to unionize the very people who should be on the lookout for illegal aliens?

Fighting for control of the TSA employees …

Again, according to the Washington Post

“Which Union Would Represent TSA?”

“There's a battle brewing over which Federal workers' union will get to represent the approximately 43,000 Transportation Security Administration workers that protect American airports.”

“Federal workers unions hope the Obama administration grants Transportation Security Administration employees collective bargaining rights and expanded worker protections in the early months of the new presidency. If that happens there is promise of a tough fight among those unions to represent the people who protect American airports.”

This should not happen. How can you trust any union whose publicly stated policies promote open borders and greater financial and housing benefits for illegal aliens?

“It's expected that the American Federation of Government Employees (AFGE) will face off against the National Treasury Employees Union (NTEU), two groups that have already set up shop in several airports in anticipation of presidential and congressional action that would grant collective bargaining rights to transportation security officers (TSOs), reversing course on a Bush Administration position that was a major sticking point when the Department of Homeland Security was established in 2002.”

These are some of the rudest, stupidest people in government service. Drunk with the power of petty bureaucrats who now get to push around citizen/taxpayers. These are the people who often steal from traveler’s luggage and whose  punishment (or lack thereof) remains hidden from the public as a “personnel issue.” I am totally against any union intervention in an already stupid process.

Stupid is as stupid does …

What good is a list of names of suspected terrorists without biometric identification – especially if thousands of travelers share the same name? And how are we supposed to get a terrorist to submit biometric identification information? Not to mention that foreign names cannot be easily transliterated into English in a meaningful sense? Or that one can simply pick a name from the mother’s side of the family, the father’s side of the family, or combine both to make up a unique name. And it is often this list which empowers those who think granny is a terrorist while studiously avoiding profiling Muslim men between the ages to 18 and 34.

See the Sixty Minute Story on the TSA ...

 
This video will give you an interesting perspective on the TSA process. After unionization, imagine the rise in employee stress claims and early retirements that further milk the system. Bruce Schneier is an internationally renowned security technologist whose word can be taken as gospel. Note that no one mentioned the thefts of passenger's personal property and those TSA people who were caught napping on the job.
 
Preparing the battlefield …

“Even though TSOs do not have collective bargaining rights, both AFGE and NTEU have signed up dues-paying employees at the local level and have chartered chapters (for NTEU) or locals (for AFGE), who then appoint and train officers to staff their local efforts and represent individual employees during work-related disputes with TSA.”

“The dispute between the two unions dates back to early 2007, when NTEU won the right to represent roughly 30,000 Customs and Border Protection employees. It was one of the largest union elections in Federal government history. Following the election, AFGE filed a complaint with the Federal Labor Relations Authority, which eventually ruled that NTEU had the right to organize CBP workers.”

Which union represents the citizens against egregious violations of their civil rights and dignity? Who stands up for them against the petty tyrants which abound.

The real stakes: power and money …

“This time around, the pool of workers is bigger and the stakes higher, with TSA's 43,000 employees adding significant numbers and political clout to whichever union wins out.”

Here come the union thugs …

It is no secret that the unions want the Obama Administration to forego secret union ballots in favor of an open card check-off system. Imagine as the union organizer, backed by two linebacker-sized thugs, says “would you please consider allowing our union to represent you.” This egregious violation of the historical concept of the “secret” election ballot is sure to be a hot topic in the opening days of the Obama Administration. 

They’re not all bad apples …

There are many fine, honest and upright government employees and union members. Unfortunately, they are often not well-represented by their malignant power-hungry leadership. Perhaps, if Obama does make concessions in granting unions more power, he will also make it easier for the ordinary taxpayer to seek justice in fighting against unionized aggression at little or no cost to those with valid complaints.

Change?

Perhaps Obama will see the light and not let the corrosive effects of unions interfere with his legacy and signature legislation. Perhaps by taking on the powerful education unions, we can achieve our educational goals without a gold-plated bureaucracy? Perhaps we can even save the automakers, the airlines and numerous public services from the ravages of creeping unionism.  If the unions want to exert more control, let them put up their money and buy into the enterprise.

What can YOU do?

Perhaps it is time to vote against machine politicians who pander to the unions – only to cede decision-making power to those who want more and more for less and less work. By rewarding seniority over achievement, we are dooming ourselves to becoming Europe II. Definitely not the United States of America that were so love.

Demand that the government institute accessible grievance procedures which result in the firing of overbearing and obnoxious workers. They work for us … not the other way around.

If you are a union member, vote for honest leaders who have the rank and file’s best interests in mind – and that of the employer.

-- steve

A union is a mob with a purpose; at first self-protection, now self-proliferation. -- steve

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. -- Marcus Aurelius

Reference Links:

Joe Davidson - Cool Is the Rule When HUD Is in the House

Which Union Would Represent TSA? - Federal Eye -#more#more#more


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


New York Times Gets It Wrong Again: Claims Bush's Philosophy Stoked the Mortgage Bonfire ...

According to the New York Times …

“White House Philosophy Stoked Mortgage Bonfire”

“WASHINGTON — The global financial system was teetering on the edge of collapse when President Bush and his economics team huddled in the Roosevelt Room of the White House for a briefing that, in the words of one participant, ‘scared the hell out of everybody.’”

It was Sept. 18. Lehman Brothers had just gone belly-up, overwhelmed by toxic mortgages. Bank of America had swallowed Merrill Lynch in a hastily arranged sale. Two days earlier, Mr. Bush had agreed to pump $85 billion into the failing insurance giant American International Group.

The president listened as Ben S. Bernanke, chairman of the Federal Reserve, laid out the latest terrifying news: The credit markets, gripped by panic, had frozen overnight, and banks were refusing to lend money.

Then his Treasury secretary, Henry M. Paulson Jr., told him that to stave off disaster, he would have to sign off on the biggest government bailout in history.

Mr. Bush, according to several people in the room, paused for a single, stunned moment to take it all in.

“ ‘How,’ he wondered aloud, ‘did we get here?’”

Yes, it’s an interesting story …

“There are plenty of culprits, like lenders who peddled easy credit, consumers who took on mortgages they could not afford and Wall Street chieftains who loaded up on mortgage-backed securities without regard to the risk.”

“But the story of how we got here is partly one of Mr. Bush’s own making, according to a review of his tenure that included interviews with dozens of current and former administration officials.”

As I explained before, there is plenty of blame to go around. However, there are some technical issues that are rarely mentioned in the popular press.

So before reading the New York Times’ story, here are a few things to consider.

The regulatory agencies, under the Clinton and Bush Administrations had become hyper-politicalized and were often seeking media attention to boost their images as effective and efficient agents upholding the people’s trust. Truth be known, many blatant criminal acts were often overlooked as they were not sufficiently large to attract media attention or they did not involve large sums of money which could justify allocating scarce departmental resources on a violation of technical laws which could be spun any number of ways by competent lawyers. Also, under consideration was the offending firm’s finances -- if the firm lacked the wherewithal to pay “record fines” it may have also influenced the regulator’s criteria for successful prosecution. I will not mention outright cronyism and bribery as that is a story which needs to play out in the courts.

The credit ratings agencies – and the securities rating agencies – were basing a number of their decisions on outdated datasets which comprised historical default data that occurred before the onset of the borrower’s continual ability to re-finance shaky transactions and such novel inventions such as the HELOC (Home Equity Line of Credit) and the POA (Payment Option Arm) which allowed a borrower to choose their payment plan and, in some instances, skip payments. Thus the technical system’s indicators may have said all was well when the alarm should have been sounded. And let us not overlook the inherent conflict of interest between the ratings agency and their customer who was selling the dodgy securities. Like accountants, they bent over backwards to keep the business coming through the doors and the profits out of their competitor’s pockets.

Accounting rules – As in Enron-type accounting, the accounting rules promoted by the financial industry allowed organizations to sequester investments in “off balance sheet” accounts where it was next to invisible to shareholders, counterparties and regulators. Contingent liability debt, far in excess of the organization’s net worth was allowed to accumulate undetected by those whose watchdog duties should have halted the practice. It should be noted that these accounting rules were approved by the Securities and Exchange Commission. The very same commission which is forcing America to adopt looser accounting rules based on the European set of accounting rules.

Clever financial engineers – these are the people who are really responsible for the entire meltdown of the financial industry. President Bush could hardly have precipitated this crisis with his housing policies – as implied by the NYT article unless he ordered a nuclear strike on Manhattan’s financial district.

These clever financial engineers were responsible for:

  • Risk engineering – believing that they, the sophisticated financial engineers, could develop a financially engineered solution to accommodate almost any level of risk. Of course, they failed to realize that there is no way to insure against a counterparty unwilling to purchase your financial products. And that their computations rarely allowed for blatant and prevasive fraud.
  • Creation of Credit Default Swaps – an unregulated financial product designed to simulate an insurance policy. Unfortunately, these credit default swaps were not created on a sound actuarial basis, were not offered on a single exchange where one could determine pricing and exposure – and could be written by almost any organization which was believed to have a sound balance sheet. A source of spectacular profits for organizations which issued little more than “assurances” based on their assumption that the risks of the base transactions had been adequately hedged.
  • Synthetic securities – when the marketplace ran out of physical mortgages that could be used to provide the underlying collateral for mortgage backed securities, the Wall Street Wizards sliced and diced existing securities into more financial products which could be sold to willing investors. All with the complicit guarantee of the ratings agencies that most of these products were rated as “investment grade,” and thus suitable for pension funds, insurance funds, mutual funds and other capital pools which were required by law or charter to be invested in investment grade securities.

Greedy Bastards – here we must note that the entire financial system was placed at risk, not by President Bush or his Administration, but by those Wall Street Wizards and others who were not satisfied with earning an ordinary rate of return over a sufficient period of time. No! These greed-heads needed to juice their yields by investing other people’s money in these dodgy financial products. This is known as “leverage.”

In some cases, these people put up $1 million dollars in seed capital.  Then they borrowed $4 million dollars based on the net worth of their balance sheets. They then re-invested this $5 million dollars in purchasing $100 million dollars of securities. As long as there were willing buyers for these financial products and that these willing buyers were willing to accept the computerized estimates of the securities’ value, all was well. However, a downturn of only five percent, something to be expected as a normal fluctuation as time goes on, produces a loss of $5 million dollars. Thus the investor loses his seed capital and remains owing the $4 million in borrowed funds. Looking to a company that issued a credit default swap for the lost money further extends the tentacles of this multi-armed octopus. In one case, a three percent loss exceeded the entire equity of a major financial firm which should have resulted in its immediate liquidation. If not for government intervention, the company would be kaput. Instead the CEO was retired with a few hundred million dollars in gratitude payments for his ability to lose billions of dollars of his investor’s money. 

Therefore, it was not uncommon to see leveraged transactions at fifty or one hundred times being used to create enormous profits – all with the potential to generate tremendous losses in a down market.

The Black Swan …

A so-called black swan event is, by definition, a rarity – something totally unexpected. So, with President Bush, the Administration and most of Wall Street looking on, the housing bubble burst causing a downward spiral that can only now be described as the swirl and the bottom of the toilet bowl.

With the advent of foreclosures of loans that were made to people who had no business purchasing a car, let alone a home and an incalculable amount of mortgage fraud, loans defaults morphed into outright foreclosures. Borrowers wanting to re-finance their properties once again to stave off imminent financial trouble found that foreclosed properties in their neighborhood had reduced the appraisal of their property and thus were not able to get the needed refinancing to kick the financial can down the road one more time. Thus their property went into foreclosure and we saw the downward spiral increase in velocity. Many computerized models had no provisions for handling projections based on a negative real estate market and thus were spitting out useless results. Defaults were accelerating. 

Trust – the basis of all finance …

The only way I can characterize mortgage backed securities (MBS) and collateralized debt obligations is by this simple analogy. Imagine you take a few thousand mortgage notes and run them through a shredder. Then you sell each shredded piece of paper that is alleged to pay the investor a specified yield to investors worldwide. Now assume one of these mortgages defaults and you need to reconstruct the mortgage note so you can foreclose on the property and pay off the investors with the available funds. And almost impossible task.

Now, because no financial institution knows how much capital those credit default swaps that they sold will require if a redemption claim is made and they are unable to calculate the value of these dodgy derivatives they hold, they simply decide to hoard their remaining cash. That is, they will not do deals with other banks and they certainly will not lend consumers or commercial accounts money. They are frozen in space and time.

Enter the rescuers …

Some believed that all you had to do to restore trust and liquidity in the marketplace was to inject additional capital. Unfortunately, the financial organizations still did not know their capital positions or the financial strength of their counterparties, so they used the funds to acquire other financial institutions or to shore up their own balance sheets. Nothing happened.

Then the rescuers tried plan B, plan C … ad nauseam.. and found it’s still not working.

Unless there is a way to stabilize the housing market and provide a calculable floor for property, unless there is a way to satisfy or nullify the existing credit default swaps, unless there is way to unwind derivative transactions and unless there is a way to de-leverage financial operations -- the only option for the current Administration is to maintain that they are trying to solve the problem and kick the financial can down the road into Obama’s Administration. And that’s pretty much much what I see is happening today.

Go read the New York Times Story …

Now read the New York Times story and consider what petty and inconsequential politics are at play in the story. And the bitch is – it is extremely unlikely that the real culprits, the people who walked away with hundreds of millions of dollars, are unlikely to be punished or receive more than a slap on the wrist. Especially those who were politically connected and have appropriate legal representation. As for those who claim that these people had their reputations shattered, how many guests on their yacht will bring up the subject at dinner?

Yes, President Bush and his Administration were culpable, as were previous administrations and Congress. But the fault lies with the Wall Street Wizards who created and benefited from this crisis – and many of them are being rewarded with additional sums of money as they attempt to rescue themselves from their own folly.

The New York Times’ Story can be found at the link below.

-- Steve

The Reckoning - Bush’s Philosophy Stoked the Mortgage Bonfire - Series - NYTimes.com


“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS