Diary

MI Morning Update 9-23-2008

42 Days Until Election Day

September 23, 2008

MORNING UPDATE:

LAWNSIGNS DELIVERED STATEWIDE…over 150,000 McCain-Palin lawnsigns were distributed around the state over the last 24 hours. Signs and new bumper stickers should be in every county by Thursday. Let your neighbors know who you support, stop by a Victory Center near you!

McCAIN IN MICHIGAN…TODAY…AGAIN…as Michigan continues to be “ground zero” for this campaign. Today he’s visiting the Dow Corning plant in Freeland, touring their new solar facility there. Jobs and the economy are at the top of McCain’s concerns and once again, he’s in Michigan explaining his plans for leading our country forward. We need your help…join us and volunteer…info below!

OBAMA: ECONOMICS 101…here is a great 4:20 minute youtube video that takes apart Obama’s economic program. This guy lays out the difference between more government and McCain-Palin’s less government approach. Very well done…a great, simple to understand explanation that puts everything in perspective.

http://migop.blogs.com/blog/2008/09/obamaeconomics.html

WALBERG ON FINANCIAL CRISIS…RIGHT ON TARGET… “I have serious concerns about putting taxpayer dollars on the line for $700 billion.  As this proposal evolves, my priorities are protecting taxpayers, encouraging economic growth and making sure taxpayers are not subsidizing severance packages for failed CEOs.  This situation is a clear indication that government regulation did not work because it was not properly implemented.” – Congressman Tim Walberg

WALL STREET BAILOUTS…lets remember it’s government policies that facilitated this crisis. Easy money at low interest rates by the fed, encouraging “no money down” home ownership with sub-prime lending or reverse mortgages, Fannie Mae and Freddie Mac allowed to buy up these crazy loans and resell them to investors, government granted oligopoly of Moodys and Fitch credit rating service which blew it, asleep bank regulators who allow 30 or 40 to 1 leverage for regulated banks (while most hedge fund and private equity folks are fine-unregulated), and government bailouts which protected these bad business decisions. Wall Street and D.C. both share the blame … “main street” shouldn’t be stuck with the bill?!?

Socializing economic risks come at a great cost to the American economy by misallocating capital, inviting political manipulation, and putting taxpayers on the hook for possibly a trillion dollars.

MCCAIN AND PALIN ON THE ROAD…here is a great story on how John McCain and Sarah Palin actually campaign…connecting with the average voters…showing compassion and heart. A great story to share.
http://migop.blogs.com/blog/2008/09/family-with-dow.html

TEAM SARAH…MIGOP Co-Chair Jane Abraham has helped start a national organization diverse women dedicated to advancing and defending Sarah Palin’s Vice Presidential candidacy and motivating grassroots women to actively support the ticket this fall called Team Sarah.  For more info check out their webpage!
http://www.teamsarah.org/

R.I.P. Pat Rooney…passed away last week. Pat was a good friend to many in Michigan and helped start the “school of choice” and “health savings account” movements in America.

http://online.wsj.com/article/SB122178334570454727.html?mod=djemEditorialPage#printMode

VOLUNTEERS NEEDED…we are opening up new Victory Centers daily and need more and more volunteers to make phone calls, knock on doors and put up lawn signs.  The response has been overwhelming, but Michigan will be the key battleground state and we need EVERY person willing to help in anyway they can.  Thanks again for all you do!  For more info click here.

http://www.migop.org/inner.asp?z=113


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TODAY’S TOP STORIES

The following stories and more are available at myArticles of Interest online.

How the Democrats Created the Financial Crisis

by Kevin Hassett

Sept. 22 (Bloomberg) — The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story.

Why did Bear Stearns fail, and how does that relate to AIG? It all seems so complex.

But really, it isn’t. Enough cards on this table have been turned over that the story is now clear. The economic history books will describe this episode in simple and understandable terms: Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally.

A Mortgage Fable

Once upon a time, in the land that FDR built, there was the rule of "regulation" and all was right on Wall and Main Streets. Wise 27-year-old bank examiners looked down upon the banks and saw that they were sound. America’s Hobbits lived happily in homes financed by 30-year-mortgages that never left their local banker’s balance sheet, and nary a crisis did we have.

Then, lo, came the evil Reagan marching from Mordor with his horde of Orcs, short for "market fundamentalists." Reagan’s apprentice, Gramm of Texas and later of McCain, unleashed the scourge of "deregulation," and thus were "greed," short-selling, securitization, McMansions, liar loans and other horrors loosed upon the world of men.

With apologies to Tolkien, or at least Peter Jackson, something like this tale is now being sold to the American people to explain the financial panic of the past year. It is truly a fable from start to finish. Yet we are likely to hear some version of it often in the coming months as the barons of Congress try to absolve themselves of any responsibility for the housing and mortgage meltdowns

‘Crony’ Capitalism Is Root Cause Of Fannie And Freddie Troubles

BY TERRY JONES
INVESTOR’S BUSINESS DAILY

In the past couple of weeks, as the financial crisis has intensified, a new talking point has emerged from the Democrats in Congress: This is all a "crisis of capitalism," in socialist financier George Soros’ phrase, and a failure to regulate our markets sufficiently.

Well, those critics may be right — it is a crisis of capitalism. A crisis of politically driven crony capitalism, to be precise.

Indeed, Democrats have so effectively mastered crony capitalism as a governing strategy that they’ve convinced many in the media and the public that they had nothing whatsoever to do with our current financial woes.

Barack Obama has repeatedly blasted "Bush-McCain" economic policies as the cause, as if the two were joined at the hip.

Death Of The Brokerage: The Future Of Wall Street

by Joshua Brockman

The decision by Goldman Sachs and Morgan Stanley to become bank holding companies is nothing short of a historic realignment of the financial services industry. It marks the end of the securities firm model that has dominated Wall Street since the Great Depression.

Here, a look at what the change means to the future of investment banking.

Why did Goldman Sachs and Morgan Stanley decide to become bank holding companies?

The decision enables both firms to gain access to the Federal Reserve’s discount window — the same line of credit that is open to other depository institutions. That’s in addition to the temporary financial lifeline, called the Primary Dealer Credit Facility, that the Fed established for Wall Street broker-dealers after it bailed out Bear Stearns in March. The transformation into bank holding companies also allows Goldman Sachs and Morgan Stanley to tap into deposits from retail customers.

McCain Headed Back To Michigan

Southfield (WWJ) — Republican presidential candidate John McCain will be back in Michigan Tuesday.

McCain is to fly into MBS International Airport near Saginaw and visit a Dow Corning factory in Freeland.

McCain and Democratic presidential candidate Barack Obama have been frequent visitors to Michigan. The state is one of a relatively few that could be key in determining who wins the November election.

McCain visited Michigan last week wheh he stopped in Lake Orion and held a town hall meeting in Grand Rapids.

How Close are Raines and Obama?

By Jack Kelly

The Washington Post is a "pretty flimsy" source of information, two Post hotshots declared in an effort to diminish a politically uncomfortable association for Sen. Barack Obama.

Franklin Raines, CEO of the Federal National Mortgage Association (Fannie Mae) from 1999-2004, is the individual most responsible for the subprime mortgage crisis. It was on Mr. Raines’ watch that Fannie Mae went bankrupt.

He was accused of manipulating earnings statements so he could be paid bonuses to which he was not entitled.
In July, Mr. Raines was interviewed by Anita Huslin, a business reporter for the Washington Post.

"In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself," Ms. Huslin’s story began. "He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health care companies and, more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing matters."

FBI searches apartment in Palin hacking case

by Lara Jakes Jordan | The Associated Press

WASHINGTON – The FBI searched the residence of the son of a Democratic state lawmaker in Tennessee over the weekend looking for evidence linking the young man to the hacking of Republican vice presidential candidate Sarah Palin’s personal e-mail account, two law enforcement officials told The Associated Press on Monday.

David Kernell, 20, has not returned repeated phone calls or e-mails from the AP since last week. His lawyer said Monday the family is going through a difficult period.

"The Kernell family wants to do the right thing, and they want what is best for their son," said attorney Wade V. Davies of Knoxville. "We are confident that the truth will emerge as we go through the process. David is a decent and intelligent young man, and I look forward to assisting him during this difficult period."

Obama and Ayers Pushed RadicalismOn Schools

By STANLEY KURTZ

Despite having authored two autobiographies, Barack Obama has never written about his most important executive experience. From 1995 to 1999, he led an education foundation called the Chicago Annenberg Challenge (CAC), and remained on the board until 2001. The group poured more than $100 million into the hands of community organizers and radical education activists.

The CAC was the brainchild of Bill Ayers, a founder of the Weather Underground in the 1960s. Among other feats, Mr. Ayers and his cohorts bombed the Pentagon, and he has never expressed regret for his actions. Barack Obama’s first run for the Illinois State Senate was launched at a 1995 gathering at Mr. Ayers’s home.

The Obama campaign has struggled to downplay that association. Last April, Sen. Obama dismissed Mr. Ayers as just "a guy who lives in my neighborhood," and "not somebody who I exchange ideas with on a regular basis." Yet documents in the CAC archives make clear that Mr. Ayers and Mr. Obama were partners in the CAC. Those archives are housed in the Richard J. Daley Library at the University of Illinois at Chicago and I’ve recently spent days looking through them.

Obama’s bad-tasting tax proposal

Ken Blackwell

During his Fox News interview with Bill O’Reilly, Sen. Barack Obama responded to one question where the statistics contradicted his position by saying that "there are lies, damned lies, and statistics." He then went on to say that 95 percent of Americans would get a tax break under his economic plan. That’s ironic, because his comment on "damned lies and statistics" is the perfect commentary on his own plan. Taken with Sen. Joe Biden’s novel definition of patriotism, Team Obama is making an argument that Americans have never bought.

The statistics speak for themselves. Only 62 percent of Americans pay federal income tax, meaning that 38 percent get a 100 percent refund of any taxes withheld. So Mr. Obama’s 95 percent that will receive money from the government includes roughly 33 percent of Americans who pay no income tax. One-third of Americans pay no income taxes yet would receive a government check of perhaps $1,000 or more.

That is pure income redistribution. Some pundits argue that this is Keynesian demand-side economics. It is not. Having the government take money from business entities or affluent individuals and giving it to those who pay no federal income taxes is not Keynesian. It’s Marxist.

House GOP ready for drilling battle

Stephen Dinan

House Republicans say they have the votes to force opening up the outer continental shelf to more drilling, setting up a potential showdown with Democrats who are conflicted over how to handle the issue.

In a letter to President Bush, more than 150 House Republicans said they would vote to uphold a presidential veto of a bill that tries to extend the moratorium. With the ban set to expire Sept. 30, Democrats may have little choice but to give in or force a veto showdown, which could result in a government shutdown.

"The American people support increasing our American energy resources by opening up the OCS to oil and natural-gas exploration, and we strongly urge you to veto any spending bills that would continue the moratorium on OCS drilling," the House Republicans said in their letter, led by Rep. Jack Kingston, Georgia Republican.