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Thomas Sowell
Thomas Sowell
14 Feb 2012
The 'Progressive' Legacy

Although Barack Obama is the first black President of the United States, he is by no means unique, except for … Read More.

14 Feb 2012
The Progressive Legacy: Part II

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14 Feb 2012
The Progressive Legacy: Part III

The same presumptions of superior wisdom and virtue behind the interventionism of Progressive Presidents … Read More.

The Rush To Wait

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The big story last week was the incredible Congressional rush to pass a bill that was more than a thousand pages long in just two days— after which it sat on the President's desk for three days while the Obamas were away on a holiday.

There is the same complete inconsistency in the bill itself. Despite the urgency in President Obama's rhetoric, as well as in Congress' haste in passing a bill which few— if any— members had time to read, much less consider, most of the actual spending will take place next year, at the earliest.

Not even the most Alice-in-Wonderland actions will arouse the suspicions of those who have what William James once called "the will to believe."

Nowhere was that will to believe greater than in the election of Barack Obama to be President of the United States, not on the basis of any actual accomplishment, but as the repository of hopes and symbolism. His supporters among the voters and in the media are not going to stop believing now.

It will take a lot more than blatant inconsistency for the faithful to lose faith. It may take catastrophe— and there may well be catastrophe.

For some, even catastrophe under Obama can be blamed on George Bush. After all, Franklin D. Roosevelt was elected to an unprecedented third term in 1940, after two terms in which the unemployment rate never fell below 10 percent and was above 20 percent for 21 consecutive months.

FDR also inspired the will to believe— and he also had Herbert Hoover on whom to blame all the country's troubles.

It may seem strange, to those who never lived through those times, that someone could be President of the United States for eight straight years and nevertheless escape responsibility for mass unemployment by blaming his long-departed predecessor. But we may yet see a re-run of that scenario in our own time.

Nothing in the amateurish way the current administration has begun suggests that they have mastered even the mechanics of governing, much less the complexities of the huge national problems looming ahead, at home and abroad.

The multiple Cabinet nominees withdrawing before their nomination can come to a vote in the Senate are just one example of this amateurism.

Another example was the Secretary of the Treasury holding a much heralded unveiling of his recovery plan, only to publicly embarrass himself and the administration when his speech made painfully clear that there is no plan, but only pious hopes.

The plunge in the stock market after his speech suggests how much confidence he inspired.

There is far more to fear from this administration than its amateurism in governing. The urgency with which it has rushed through a monumental spending bill, whose actual spending will not be completed even after 2010, ought to set off alarm bells among those who are not in thrall to the euphoria of Obama's presidency.

The urgency was real, even if the reason given was phony. President Obama's chief of staff, Rahm Emanuel, let slip a valuable clue when he said that a crisis should not go to waste, that a crisis is an opportunity to do things that you could not do otherwise.

Think about the utter cynicism of that. During a crisis, a panicked public will let you get away with things you couldn't get away with otherwise.

A corollary of that is that you had better act quickly while the crisis is at hand, without Congressional hearings or public debates about what you are doing. Above all, you must act before the economy begins to recover on its own.

The party line is that the market has failed so disastrously that only the government can save us. It is proclaimed in Washington and echoed in the media.

The last thing the administration can risk is delay that could allow the market to begin recovering on its own. That would undermine, if not destroy, a golden opportunity to restructure the American economy in ways that would allow politicians to micro-manage other sectors of the economy the way they have micro-managed the housing market into disaster.

To find out more about Thomas Sowell and read features by other Creators Syndicate columnists and cartoonists, visit the Creators Syndicate web page at www.creators.com. Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. His Web site is www.tsowell.com.

COPYRIGHT 2009 CREATORS SYNDICATE, INC.


Comments

2 Comments | Post Comment
I'm sure all Taxpayers have heard this statement "Haste makes Waste"! Since 1977, all this Haste is now a proven fact and has brought America to it's knees. Nafta and Cafta, for politicians greed, took American jobs away and as a few American companies left have discovered "it's actually higher to have goods made overseas and brought back to America!' Too bad, the 'fat cats' were allowed to destroy America this way; therefore, many Taxpayers are saying and I'm quoting " TIME FOR TAXPAYERS TO TAKE BACK AMERICA!"

To much trust has been placed in the so-called “political leaders” and this isn't, nor has been, in the best interest of America, the economy, nor the safety of your family. What a drastic and huge mistake Taxpayers have made.

Taxpayers definitions of the political system is “threatening and indicates much evil!” Taxpayers feel that it's time to run this country like a private business and this means it's time for 'FAIR TAX', to include property taxes, eliminate social and welfare programs! Eliminating a lot of a departments, non-profit organizations and start by cutting politicians salaries and retirements to $12,000.00 yearly.

Taxpayers are having a real problem with monies being spent for hiring the ‘experts' just because they have a piece of paper stating they graduated from a prestigious college, but yet don't know the job! Makes you wonder?

Time to put your thinking caps back on and get back to ‘common sense!'






Comment: #1
Posted by: Shirley deLong
Sun Feb 22, 2009 10:54 AM
Who To Blame For Economy Meltdown

http://www.youtube.com/watch?v=63siCHvuGFg&feature=channel_page

Above is an excellent summary and timeline of this issue and 1 tape does include Barney Frank rejecting the need for Fannie and Freddie regulations because he felt Fannie and Freddie had no safety or soundness problems.

http://www.c-spanarchives.org/library/includes/templates/library/flash_popup.php?pID=178357-1&clipStart=&clipStop=

Note: Since I first watched the above clip C-Span has removed 29 minutes of (2:55 – 3:24) that included Barney Frank saying that there is no safety or soundness problem with Freddie Mack or Fannie Mae.

http://www.youtube.com/watch?v=y4A0RuXhnQA

The above link has a number of informative quotes by Obama, Clinton, and Frank proving they are the primary causes of the current economic meltdown.

In 1995 the Clinton administration changed the Community Reinvestment Act to permit sub-prime loans to be resold by the nominally private Fannie and Freddie to global banks and investment institutions. The government made trillions of dollars available to Fannie and Freddie at sub-prime loan rates. ACORN and the government then pushed Fannie and Freddie hard to boost the lending to low income households. Fannie and Freddie used this new government leverage and “encouragement” to buy these trillions of dollars of sub-prime money from the government, packaged them as low interest adjustable loans for low income households, and resold them on the market to global banks and investment institutions. Ironically, the banks and financial institutions that are being targeted today with nearly $1 trillion in government bailout money were “pressured” by Acorn and Washington to boost their lending to high risk low income households.

In 2001, sub-prime loans totaled $330 billion, or about 15% of all loans. By 2006, they had reached $1.4 trillion, or 48%. Fannie and Freddie owned or guaranteed more than half of the nations $12 trillion in home mortgages. They were near monopolies.

For 35 years, the home ownership rate had hovered around 64% which is about where it stood in 1995. By 2005 it reached near 70% - a record. But it came at a price. When the Fed raised the rates from 2004 to 2006, adjustable mortgage rates increased exponentially, low income homeowners couldn't make their adjustable mortgage payments, the housing industry fell apart, and many banks were left holding billions in underwater mortgages. Home prices fell, and homeowners suddenly found themselves with no equity to borrow on. The low income homeowners that paid “little to nothing down” had no downside risk to walking and the resulting foreclosure.

Lack of effective regulatory requirements by the government with Fannie and Freddie are the cause and major reason why we are in the recession we're in. Understand that with receipt of these trillions of dollars from the government Fannie and Freddie are now government owned institutions. The governments failure to implement adequate Fannie and Freddie regulatory requirements led to home foreclosures, which led to bank cash flow problems, which led to banks freezing all loans, which led to business cash flow problems, which led to layoffs, which led to more foreclosures, which led to more banks freezing loans, which led to more business cash flow problems, which led to more layoffs, which will lead to more foreclosures, etc………

Who is responsible for causing the worldwide economic meltdown? The US government is mostly to blame. Many of the same politicians, Barney Frank (rejecting Freddie and Fannie regulatory changes), Bill Clinton (changing Community Reinvestment Act) and Barack Obama (ACORN/President) are the politicians responsible for empowering themselves to make new laws, exert pressure on Fannie, Freddie and private industry, and covering-up their mess with depression producing bailouts.

As for solutions; replace income tax system with spending tax system, eliminate adjustable mortgage/loans, require at minimum 10% down to qualify for home loans, tax cuts for small businesses, more severe penalties for white collar crimes, eliminate spending earmarks, eliminate the Federal Reserve practice of printing non-secured money, all spending must be accompanied by a work plan that includes justification/payback/accountability.
Comment: #2
Posted by: Duane
Tue Mar 10, 2009 6:37 PM
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