26 September 2008

Political Diary Quote Of The Day

Donald Luskin, Chief Investment Officer of the consulting firm TrendMacro, in a note today to clients:
Only a fool would say that there is no risk to the banking system here. But given the apparent lack of any idea at Treasury or the Fed of how the bail-out would actually work, the terrible track record of those same authorities whose bungling of the Fannie Mae, Freddie Mac and American International Group situations only accelerated the crisis, and the onerous capital-punishing provisions being forced into the plan by Congress, at this point we are tempted to think that the world might be a better place without this particular bail-out. . . . The climate of fear in Washington could easily still force a deal in very short order. No deal would be a shock to markets at first, and it would be a shame to lose what was good about the proposed program. But if it's loaded up with mortgage forbearance mandates and punitive equity grabs, then markets will be far worse with a deal than without one.
(emphasis added)


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More On Iraq & Gen. Jacke Keane

Longtime friend and reader of OL&L, Matt D., writes in response to my earlier post:
Having spent 14 months in Iraq from December 2003 through February 2005, the one that is very clear to me is that this is unlike any war that has ever been fought. Anybody that currently believes that we can and should just pull out tomorrow does not understand the ramifications that such an action would cause. Regardless of whether or not we should have gone there in the first place, we have to finish the job before we leave.

The dynamics of this war are difficult to understand, and the history of what is happening there does not go back when we invaded in 2003, nor does it go back to 1990-ish for the first gulf war. It goes back to WWI and the treaty of Versailles. That was when we got Turks, Kurds, Shiite Muslims and Sunni Muslims shoved into the same country. They've never really gotten along, and they only stayed relatively quiet under Sadam's rule because he had a habit of killing people. We dug up years and years of history, and the only way to calm everything down is to provide an intense amount of security until the new government can stabilize itself. Allowing one of the groups to overly dominate the others by force instead of through constructive debate would only bring progress to a screeching halt.

So, our current role is to try to keep people from killing each other so the constructive debates can continue. It's hard to do that if you only have one pair of eyes for every 1,000,000 people. The surge helps us keep tabs on terrorist groups and their movements, so we can prevent attacks and kill terrorists. From where I'm sitting, that's a good thing. I'd like to see our troops come home as soon as possible too, but let's not make the political unpopularity of the war drive us to defeat. I'm with Gen. Keane--let's git 'er done.
This is good stuff. And I want to thank all the readers who email me with thoughtful comments. With so many emails, I can't possibly post everything everyone sends me, so don't be offended if what you send doesn't make the cut.


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Iowahawk!

Back in the day I used to read 2 columnists every week--Daniel Henninger & Mark Steyn (now I pretty much read everything). Since the Canadians sued Steyn for writing about Muslim demographics, he hasn't written much. Which is a shame, because Steyn is awesome.

So now I get my weekly comedic fix from Iowahawk. To really get a sense of who Iowahawk is, let me quote from one of his many admirers:
Iowahawk might get up tomorrow, get [redacted], grab his beautiful wife and ride his moped backwards to a Hells Angel rally, then drink himself into oblivion and fight about 7 crank dealers from the Racine chapter of the Death Jokers all by himself. Then maybe he'd go home, romance the beautiful wife, build a perfect retro treehouse for his perfect kids, drink a bottle of tequila, prepare a 3-course meal while beating away a push-in home invader and sacrificing him on a makeshift, though historically accurate, Inca altar he built in the woods behind the railroad tracks. Then he'd sit down and knock out a tremedously insulting Leftist parody that pissed off thread after thread of Kos and DU lunatics, romance the bride once again and fall asleep chuckling. It's like he's Paul Bunyan and Mark Twain rolled up into one hipster.
I'm sure the guy doesn't mean that Iowahawk is a hipster in the same sense as all the too-cool-for-school twentysomething hipsters who form Obama's core supporters.

Anywho, read the latest. A sampling:
The subprime mortgage crisis rocked Wall Street again last week, spurring federal bailouts and takeovers of several large financial institutions - including Fannie Mae, Freddie Mac, AIG Insurance, Lehman Brothers and Bear Stearns. Americans are asking the tough questions -- how will this effect me? and, where do I get my bailout check? To help understand the issues Dave travels to TGIFriday's Happy Hour for a spirited roundtable debate with guest financial expert Linda Mustaine from First Coralville Mortgage, and next-door neighbor Craig Evers.

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Programming Note: Liveblogging The Debate

For those of you looking for another blog to check during the debate, take a look at OL&L. I'm not certain exactly what form it will take, but I'll be liveblogging the debate tonight from 6:30pm MDT until 9pm.

Tell 10 of your friends.


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Liberal 527's Attack McCain's Age, Cancer

You know, because making fun of how painful it is for him to use a computer didn't quite make the electoral waves they'd hoped.

And seriously, something is wrong with this country when you can't make fun of disabled vets. What's next? No making fun of oldsters and cancer surivors?!

No, it seems those last two are still fair game. The NYT's Caucus blog reports:
Two liberal groups – one of them directed by a brother of the Democratic Party chairman Howard Dean – will begin running a graphic attack advertisement Thursday morning raising questions about Senator John McCain’s health. Showing vivid and unflattering images of the fresh scar that appeared on Senator McCain’s face immediately after his last operation for melanoma skin cancer eight years ago

[...]
To their credit, CNN refused to air the ad:
Brave New PAC and Democracy for America, said they were only showing the spot initially on MSNBC over the next few days, a limited run intended to draw news media attention on a network that has increasingly catered to liberal tastes.

[...]

Leighton Akio Woodhouse, a spokesman for Brave New PAC, said late Wednesday that CNN declined to accept the commercial after reviewing its contents this week.
What else are these guys responsible for?
The ad comes from the same two groups that recently released an advertisement questioning whether Mr. McCain’s time as a prisoner of war in Vietnam adversely affected his ability to lead.
This is exactly the type of ad that would appeal to, you guessed it, the twentysomething hipsters who already support Barack Obama. To them, old people are gross and The Man and if you don't (can't?) use a computer, well, what the hell is wrong with you?(!)

These types of ads don't resonate with most Americans. Most people see them as hateful and mean spirited. Though I'm sure Rachel Maddow and Keith Olbermann love 'em.


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Free Speech Is Good Speech

Thanks to Jeff G. over at Protein Wisdom, catch the latest out of the British Academy: A list of banned words. All I can say is, at least this didn't come from some history department. It was created, predictably, by a bunch of sociologists--the degree of college football football players from sea to shining sea.
Publishers and universities are outlawing dozens of seemingly innocuous words in case they cause offence.

Banned phrases on the list, which was originally drawn up by sociologists, include Old Masters, which has been used for centuries to refer to great painters - almost all of whom were in fact male.

It is claimed that the term discriminates against women and should be replaced by "classic artists".

The list of banned words was written by the British Sociological Association, whose members include dozens of professors, lecturers and researchers.

The list of allegedly racist words includes immigrants, developing nations and black, while so-called "disablist" terms include patient, the elderly and special needs.

It comes after one council outlawed the allegedly sexist phrase "man on the street", and another banned staff from saying "brainstorm" in case it offended people with epilepsy.

(no offense to readers who studied sociology)


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25 September 2008

Gen. Jack Keane, American Hero

Last week's WSJ Weekend Interview was with Gen. Jack Keane--one of the early backers and architects of The Surge. Add him to the list with John McCain, George W. Bush, Joe Lieberman and Gen. David Petraeus who believed in The Surge and backed it and supported it and implemented it when it was unpopular to do so.

Gen. Keane is one of the less-known, but integral contributors. Despite his key role, he is the humble soldier to the end--deflecting attention and credit.

From the interview:
The surge turned things around on another difficult front, Washington. "Despite the fact that President Bush did preside over a strategy that was failing for three plus years, and he has been criticized for that," says Gen. Keane, "he also deserves a significant amount of credit because all around him people were advocating a failed strategy, particularly key leaders around him, and he had the wherewithal to make a tough decision that flew certainly in the face of political opposition even in his own party."

Gen. Keane says he understands why there was resentment among the Joint Chiefs at seeing the president change course against their wishes and follow a retired general's recommendations on strategy and staffing in a war zone. But he considers his role perfectly appropriate. "In my mind, I think a president has a right to seek advice and counsel any place he chooses," he says. "I certainly wasn't forcing myself on them."

The U.S. came "within weeks or months" of defeat in Iraq in 2006, he says. The consequences of that were "unacceptable" for the region, "not to speak of an institution that I loved." And what about the military chiefs who thought the extra battalions and extended service tours would be too much of a strain on American forces? "When people talk about stress and strain on a force, the stress and strain that would come from having to live with a humiliating defeat would be quite staggering."


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The Crisis: A Primer

Courtesy of Big Lizards, an instructive discussion on the how, why, where, what and all the other interrogatives we learned back in 3rd grade.

Excerpt:
Republicans see the collapse of the mortgage market as a potential catastrophe that requires emergency measures... but an aberration caused by government intrusion into the market, not an indictment of capitalism and free markets.

Democrats see it as proof positive that capitalism has been proven to be a fad that will soon pass away, like pet rocks... and a golden opportunity to reintroduce failed liberal fascist economic policies straight out of the platforms of Woodrow Wilson, Franklin Roosevelt, and Jimmy Carter.

(emphasis in original)

This is pretty much the same line I have repeated from day one: This is not a market failure. This is a cautionary tale for the central-planning-inclined, government-market-interventionists, public-policy-do-gooders; this is a lesson in unintended consequences. As though we needed another one after the ethanol/starvation debacle. Of course, this one has been stewing for a little bit longer.

Sure, giving loans to more minorities and poor people sounds good (and gets lots of Democrats elected), but when you give mortgages to people who can't afford them, well, economic crises happen.


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Fannie/Freddy Blacklist: Start With Barney Frank



(h/t Ace)


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Economists Respond To Paulson's Bailout

A lot of people, for whom I have a lot of respect, insist on the internet and TV that if something isn't done soon, we could have an "economic Pearl Harbor." It's tough for me to say if this is just alarmism or a sincere assessment of the current economic crisis.

Meanwhile, economists from around the country have weighed in on the plan as proposed by Hank Paulson and backed by the Bush administration:
As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses. Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

3) Its long-term effects. If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, America's dynamic and innovative private capital markets have brought the nation unparalleled prosperity. Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.
(h/t Greg Mankiw)

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24 September 2008

Barack Obama's Multiple Choice Test

5I'm slow posting this, but still, funny. Reader Matt P. speculates on why it took Barack Obama so long to give out details of his plan for the bailout.
"Given the gravity of this situation, and based on conversations I have had with both Secretary Paulson and Chairman Bernanke, I have asked my economic team to refrain from presenting a more detailed blue-print of how an immediate plan might be structured until the Treasury and the Federal Reserve have had an opportunity to present their proposal." (ed. note: that's leadership, folks)

Why do you think that is?
A) He doesn't have one?
B) He wants to see what "Bush" is going to do so he can say that it's wrong?
C) His plan will only work if he puts it together (The chosen one concept)?
D) His plan is overtly socialistic and he wants the Treasury and Fed to come out with their covertly (or slightly less) socialistic plan so that his is a little more palatable when it comes to the table after theirs?
E) All of the above?
(ed. note, emphasis added)

I'm going to go with A, B, & D. Though, probably the biggest reason it took the Obama camp so long to put together a serious proposal (mostly plagiarized from John McCain) is because they spent the first few days figuring out how to spin Barack Obama's enabling of Fannie/Freddy-fueled crisis because of their generous campaign donations.


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McCain Suspends Campaign To Resolve Economic Crisis (UPDATED)

If ever there were a candidate who had the credibility to do something like this, it's John McCain. This is the man who supported The Surge when it was eminently unpopular to do so, because he felt he was putting his Country First.

Whether you agree wholeheartedly with the bailout or, like me, have doubts, you must believe that John McCain is suspending his campaign because he believes it is best for America.

UPDATE 4:31pm MDT: Barack Obama's response to John McCain was to say, essentially, 'I wanted to issue a joint statement with John McCain and he unilaterally decided to suspend his campaign and go back to DC to resolve the crisis. Presidents have to be able to chew gum & walk; I'm going to carry on campaigning and prepping for the debate.'

Of course Presidents have to be able to muti-task. But you better believe that if Pres. Bush were abroad, talking foreign policy, pundits would be calling for him to return and focus on the economic crisis. And they would be right. Whether he, personally, actually did anything about it, his attention to the crisis lends efforts to resolve it increased legitimacy and calms market and public fears.

UPDATE 4:55pm MDT: Yesterday, Harry Reid said that John McCain's support was the key to passing bailout legislation. Now, Reid says he doesn't need McCain's help. What's going on here?

In the first instance, Reid was trying to get political cover for legislation that may or may not work out. If it failed, disastrously, he could pin some or all of the blame on Republicans & John McCain.

Now that McCain has called his bluff and is going to get to work, Reid says, "stay away." Why? Pure politics. He's sticking up for his man Obama.

That's leadership, Democrat-style.

UPDATE 7:00pm MDT: Looks like Mr. Obama is going to Washington after all--at the invitation of President Bush.

I know how political junkies on both sides--McCain & Obama--view today's developments. What I don't know is how will the casual observer look at things? Events like these tend to break down into simple sentences in the larger election narrative--McCain went to Washington to fix the problem, Obama followed his lead OR McCain tried to play politics with the economic crisis.

How will today's page of the 2008 election picture-book read?

UPDATE 9:31pm MDT: McCain & Obama finally released that joint statement Obama was crying about in his press conference earlier in the day.


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Yes On 8: Supporting A Traditional Definition Of Marriage

I haven't written about this topic--marriage--for awhile. Looking through the archives, the most recent entries I can find were this series here, here, & here. I haven't forgotten about it and I certainly haven't changed my mind. A recent email from Laura W. reminded me of everything going on in California.
What do you make of this? There was a great editorial in the LA Times on Friday about Proposition 8 (same sex marriage ban), to which 74 comments were made which were negative, nasty, and insulting. I and about 6 of my friends tried multiple times to send in positive comments in support of the writer, and (of course) not a single one of those made the comment thread. So obviously, the liberal idiot webmaster was just deleting anything positive and only posting the anti-prop. 8 rants. Oh, I was totally incensed. I wrote a letter to the editorial dept. at the Times and I was nasty. But I started to wonder. Is this a miscarriage of free speech? Or is it actually a benefit to our side? If all the liberals in the LA area think there is absolutely NO ONE who would be so stupid as to vote yes on Prop. 8, then maybe they won't battle as hard. I don't know, just a thought.
(emphasis, link added)

In fact, there is something to what she suggests. From Monday's edition of the WSJ Political Diary (John Fund):
Opponents of a measure that would cement a definition of marriage as between a man and a woman in the California constitution were cheered by a new Field Poll last week showing the measure losing 55% to 38%. Just a few weeks ago, the measure was trailing by only nine points.

But the battle over Proposition 8, which seeks to reestablish a traditional definition of marriage that was overturned by the state's Supreme Court this summer, isn't over.

A new study of polling in 26 states -- including California -- that have voted on the issue of gay marriage shows that support for such measures is often under-reported in polls. For example, in 2000 when California first voted on gay marriage, polls showed that Proposition 22 -- which would have banned gay marriage -- had 53% support in the final pre-election poll. It wound up winning with 61%.

"I can't say for sure why polls almost always understate support for traditional marriage," says Frank Schubert, a strategist for anti-gay marriage forces. "I believe it is because the media portrays same-sex marriage as being politically correct. Supporters of traditional marriage don't want pollsters to consider them intolerant, so they mask their true feelings on the issue."

In states that have voted on gay marriage, the study found that polls underestimated support for traditional marriage by an average of seven points. In only two states (Texas and South Carolina) did pre-election polls accurately predict the outcome of the vote. In only one state (Arizona), polls overstated the final percentage of voters who backed traditional marriage.

[...]
(emphasis added)

If, like me, you care about this issue and want to lend your support, check out Restoring Marriage & Protecting California Children.

In other, related news, my pals at NB and I are looking in to the LA Times coverage of Prop. 8. Stay tuned.


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Remembering Capt. Bruno de Solenni

Kathryn Jean Lopez, whom I had the pleasure to meet at the RNC, posted a letter at The Corner written by a soldier to his hometown paper just a few days before he was killed by an IED. With a buddy in Afghanistan (knock on wood), this really impacted me.
The bad days are when you put your buddy in a body bag and you don't even recognize him because his limbs are missing and there holes in him everywhere. The miracles are when his last words are, "tell my wife and kids I love them," before he dies in his best friend's arms after struggling for several agonizing minutes to get the words out because there is a fist-size hole in his head.

And last but not least, the best days are when an Afghan comes up to you thanking you for everything that you have done to help them and for making their (home) a better place now that the Taliban are gone.

If anything, this is probably the biggest reason why I proudly enjoy being over here. I can't explain it to anyone and there is no description of what it feels like, but it was the same feeling I got when I was in Iraq as well. And I am sure it's the same feeling that generations of American soldiers before me have gotten as they fought and sacrificed their lives for the freedoms that we enjoy today.

Perhaps the biggest thing that has made being over here much more bearable, is the amount of public support that we have received from people. Getting a care package or a letter of support when you are out in the middle of nowhere from a complete stranger, thanking you, does make the day seem a little better.
(h/t DrewM @ Ace)


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Radley Balko: Fiscally Responsible Gov't? Yeah, Right.

Balko is one of the guys who voted me maybe the 4th Best Conservative College Blog (sidebar: does anyone get that joke?). His prescription for The Crisis jives with some of the sentiment I expressed about the $700 billion bailout yesterday.
when congressional leaders and presidential candidates Barack Obama and John McCain call for more government oversight of our struggling financial institutions, go ahead and laugh. You know you want to. The idea that the private sector would be in better shape today if only we demanded more oversight from our politicians is preposterous. Our politicians wouldn't recognize "fiscal responsibility" if it spat in their ears.

Wall Street moguls may be "greedy," as both John McCain and Barack Obama have described them, but at least there are real consequences when their greed becomes excessive. They go out of business.

Balko is The Agitator.


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23 September 2008

Drill, Baby, Drill: Dems To Quietly Let Offshore Drilling Ban End

It's a catchy slogan, isn't it?

The AP reports that Democrats are finally going to give up the ghost on their offshore drilling ban.

Since I don't buy the 'environment argument' against drilling (any of them) and think there are mitigating factors to the 'energy independence argument,' I find this to be incredibly great news.

More from Ace. Guitar Hero fans (of the game, not Barack Obama*) be sure to watch the video Ace links. It's a classic.

Adult observations courtesy of The Corner.

UPDATE 10:43pm MDT: I almost forgot: *Over-the-top performance, no real skill or experience.


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On The Bailout

Reader Victor S. writes:
The news today said the price-tag is going to be $700 billion. (That would be about $2333 per American, and on tv today one commentator suggested the price tag might go over $1 trillion. That price of $2333 is including everybody, including children, retired, and others who do not actively contribute to the tax base. That means that for those of us who do it will be much higher.)

This bailout appears to have approval of both parties.

I understand the argument that it will hurt the economy if these companies falter and fail. But look at the obvious. It will hurt the economy to ask every person fork over $2000+ (please, again, remember that those who are paying taxes will have to cover those who don't) just to save some companies who, apparently, made some bad choices.

What I cannot figure out is why they have to rush to get this approved.

A final thought; both parties seem to be supporting the President in this. Nobody can blame their political opponents for this one.
(emphasis added)

Republicans are starting to push back against the bailout because it seems to be the opposite of capitalism--anti-capitalism.

The conservative in me approaches this thing with caution. I think this problem was caused by bad Democrat-influenced policy through their campaign fundraisers, Fannie Mae & Freddy Mac. But just because the problem was caused by government intervention does not, of a necessity, mean that government is best suited to "solve" the problem.

In this instance, Democrat socialists will have significantly harmed the American economy only to accrue to themselves greater control of the economy as a result.

Any believer in free markets should be very skeptical of a government solution to this problem--especially when the problem was, at its core, caused by elements of the government. The tendency in crises like these is to want to do something. That is not always the best response.

The fiscal libertarian in me says, "let the banks fail and the market will pick up the pieces." That's my ideological response.

I'm prepared to be persuaded on practical and pragmatic grounds.


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The Economist: Nixonian Politics (UPDATED)

"effete corps of impudent snobs"
- Spiro Agnew describing the media

The Nixon article in the Economist makes for an interesting read, but I disagree with pretty much all of the author's conclusions. William F. Buckley Jr. and Barry Goldwater and Ronald Reagan had far more to do with the development of modern conservatism than Richard Nixon. Those two essentially did the ideological heavy lifting for President Nixon.

I can't help but think that this author wants to taint impressions of conservatism by tying it--according to him, inextricably--with Richard Nixon. One can't mention his name and not raise the specter of Watergate.

Thus, this author would have you think: conservatism-->Richard Nixon-->Watergate.

Nixon is the Republican president Democrats love and love to hate. He was far less conservative than Republicans who preceded him (Eisenhower) and followed him (ignore Ford, Reagan, Bush, etc.). He employed all sorts of anti-market controls and expanded government in numerous ways.

Of particular interest is the author's observation on Nixon's use of populism:
Nixon’s great contribution to Republican politics was to master the politics of cultural resentment. Before him, populism belonged as much to the left as the right. William Jennings Bryan railed against the eastern elites who wanted to crucify common folk on a “cross of gold”. Franklin Roosevelt dismissed Republicans as “economic royalists”. Nixon’s genius was to discover that the politics of culture could trump the politics of economics—and that populism could become a tool of the right.

Nixon understood in his marrow how middle-class Americans felt about the country’s self-satisfied elites. The “silent majority” had been disoriented, throughout the 1960s, by the collapse of traditional moral values. And they had boiled with righteous anger at the liberal elites who extended infinite indulgence to bomb-throwing radicals while dismissing conservative views as evidence of racism and sexism. Nixon recognised that the Republicans stood to gain from “positive polarisation”: dividing the electorate over values. He also recognised that the media, which had always made a great pretence of objectivity while embracing a liberal social agenda, could be turned into a Republican weapon. He encouraged Spiro Agnew, his vice-president, to declare war on the “effete corps of impudent snobs” in the media, with their Ivy League educations and Georgetown social values.

If Nixon left a legacy of populism, he left it for both sides of the political aisle. Any honest, clear eyed look at the politics of Barack Obama* and John McCain would find that they both appeal to populist tendencies equally. Their response to the current crisis is instructive and illustrative of this point.

UPDATE 3:01pm MDT: RD, Pendulum Politics contributor, responds:
I must agree with your conclusions about the Economist's Nixon article. Nixon was anything but a straight-ticket Republican. Not only did he do the things you discuss, like price controls, but he very seriously considered and worked towards forming a third, centrist party for his re-election in '72. Obviously it didn't happen, but this is just another demonstration of the contempt Nixon often had for his own party. And, he greatly angered the GOP establishment (including especially Reagan and Buckley, who protested very vocally) when he went to China and Russia (though I hope the GOP has forgiven him by now - those were brilliant moves). There is no doubt that Goldwater, Reagan, and Buckley did "the ideological heavy lifting for President Nixon", as you rightly put it. I would add "intellectual" heavy lifting as well - though I believe Nixon had tremendous intellectual capacity, perhaps more than those other men, but when it comes to Republican platform construction, it was all Buckley et al.

I would make one point, however. The Economist said, "Nixon's great contribution to Republican politics was to master the politics of cultural resentment." I think this is true. However, I don't consider cultural resentment to refer to class warfare. For Nixon, it was all about anti-intellectualism (though, as I said, he had a powerful intellect). Countless times Nixon expressed anger towards intellectuals in private. He harbored and spread a resentment towards intellectuals that I believe still permeates the GOP today (despite the fact that it has powerful intellectual underpinnings and leadership). Hence the excitement for Sarah Palin, who represents the anti-intellectual. She's not well educated, and I think a lot of Republicans like that. The GOP likes candidates who they can have a beer with. Sarah Palin is a regular person like the rest of us.

Unfortunately, I would rather have people with intellectual tools running the country - I don't think regular people are qualified to do the job; our greatest leaders have been extraordinarily capable people. But that leaves us with nobody in this election.
(emphasis added)

RD raises an important point about what he perceives to be anti-intellectualism within the Republican party. I'm not entirely certain it's anti-intellectualism. It may be an anti-elitism sentiment or resentment of the political class. It is a tough thing to disentangle the one from the other and leaves us with a bit of a paradox.

I also don't think it is unique to Republicans. The same tendencies manifest themselves among socially conservative Democrats/blue-collar Democrats/Reagan Democrats/Catholic Democrats/whatever you want to call them.

Historically speaking, we can trace this sentiment in America back to Andrew Jackson, at least. He was a "man of the people." In fact, if there is a truly "American" political inclination, it is this one: A populist distrust of the elite, intellectual (if you will) political class. We can follow that intellectual thread back to the founding of the country.

One last point: Like you, I distrust and dislike much of populist politics. However, I prefer it to the 1960s era liberalism that seems to be represented by Barack Obama.

Personally speaking, as a graduate student in history, I understand the appeal and advantages of intellectualism, yet, at the same time, I like Sarah Palin. I won't concede that because she doesn't have a graduate degree, that she does not have the "intellectual tools" to run the country.

Plus, I'm sure you could find plenty of readers of this blog who don't think grad degrees mean much.

*Over-the-top performance, no real skill or experience.

(h/t Branden B.)


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Iowahawk: Obama's Violent Community/Campaign Organizers

It's satire folks. Read and enjoy. An excerpt:
Barack Obama stepped up his attacks on Republican rival John McCain today during a campaign stop in Nevada, telling supporters to "get in the faces" of waivering voters with his message of hope, change, and "brass fisties."

"Righty right, me malenky droogs," said Obama, nonchalantly spinning a steel baton while pacing the stage before a packed audience at a Las Vegas baseball stadium. "Come with uncle and hear all proper! Hear angel trumpets and devil trombones. You are all invited. I want you to talk to them whether they are independent or whether they are Republican. I want you to argue with them and get in their faces, with bootsie-woots if thou it suits."

Obama said his new gloves-off campaign strategy was prompted by what he described as a coordinated effort by McCain and talk radio to distract from his message of national unity.

"One thing I could never stand was to hear a filthy, dirty old partisan bushie, howling away his filthy songs and going blurpy blurp," said Obama. "Naughty, naughty, naughty! You filthy old soomkas!"

"So great bolshy yarblockos to you, Johnny brother," he added in a stern warning to the McCain camp, "We'll meet you with chain or britva or Dailykos anytime, not having you aiming factchecks at us reasonless. Well, it stands to reason we won't have it."

Obama urged rally attendees to "organize the community" and "sharpen up with Moloko Vellocet" and respond to McCain's anti-unity message through direct dialog and beatings.

"So great bolshy yarblockos to you, Johnny brother." Hilarious. How does Iowahawk make this stuff up? It probably hits a little close to home for the Obama true believers.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

22 September 2008

Democrats, Barack Obama & Fannie/Freddy

Who's to blame? Let AEI's Kevin Hassett tell the tale:
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.

Fannie and Freddie did this by becoming a key enabler of the mortgage crisis. They fueled Wall Street's efforts to securitize subprime loans by becoming the primary customer of all AAA-rated subprime-mortgage pools. In addition, they held an enormous portfolio of mortgages themselves.

In the times that Fannie and Freddie couldn't make the market, they became the market. Over the years, it added up to an enormous obligation. As of last June, Fannie alone owned or guaranteed more than $388 billion in high-risk mortgage investments. Their large presence created an environment within which even mortgage-backed securities assembled by others could find a ready home.

The problem was that the trillions of dollars in play were only low-risk investments if real estate prices continued to rise. Once they began to fall, the entire house of cards came down with them.

Turning Point

Take away Fannie and Freddie, or regulate them more wisely, and it's hard to imagine how these highly liquid markets would ever have emerged. This whole mess would never have happened.

It is easy to identify the historical turning point that marked the beginning of the end.

Back in 2005, Fannie and Freddie were, after years of dominating Washington, on the ropes. They were enmeshed in accounting scandals that led to turnover at the top. At one telling moment in late 2004, captured in an article by my American Enterprise Institute colleague Peter Wallison, the Securities and Exchange Comiission's chief accountant told disgraced Fannie Mae chief Franklin Raines that Fannie's position on the relevant accounting issue was not even "on the page'' of allowable interpretations.

[...]

Greenspan's Warning

The clear gravity of the situation pushed the legislation forward. Some might say the current mess couldn't be foreseen, yet in 2005 Alan Greenspan told Congress how urgent it was for it to act in the clearest possible terms: If Fannie and Freddie "continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road,'' he said. "We are placing the total financial system of the future at a substantial risk.''

What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.

Different World

If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.

But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.

That such a reckless political stand could have been taken by the Democrats was obscene even then. Wallison wrote at the time: "It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.''

Mounds of Materials

Now that the collapse has occurred, the roadblock built by Senate Democrats in 2005 is unforgivable.

[...]

But we now know that many of the senators who protected Fannie and Freddie, including Barack Obama, Hillary Clinton and Christopher Dodd, have received mind-boggling levels of financial support from them over the years.

Throughout his political career, Obama has gotten more than $125,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac, second only to Dodd, the Senate Banking Committee chairman, who received more than $165,000.

[...]

The private profit found its way back to the senators who killed the fix.

There has been a lot of talk about who is to blame for this crisis. A look back at the story of 2005 makes the answer pretty clear.

Oh, and there is one little footnote to the story that's worth keeping in mind while Democrats point fingers between now and Nov. 4: Senator John McCain was one of the three cosponsors of S.190, the bill that would have averted this mess.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

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