Obama's Blunders

The Unfolding Disaster



When the massive spending program to "rescue" the economy was passed, it was claimed it would be able to keep unemployment from rising above 8 percent. Now it's at 9.4% and rising, prompting Newt Gingrich to declare that the Obama Administration has "already failed" and even Vice President Biden admitting the stimulus hasn't performed as advertised. Says USA Today:



Just 10 days before taking office, Obama's top economic advisers released a report predicting unemployment would remain at 8% of below through this year if an economic stimulus plan won congressional approval.

Yet the Bureau of Labor Statistics reports that unemployment in May rose to 9.4%.

Biden said the White House is keenly aware of the gap between the rhetoric used to sell fast passage of the legislation and the reality that has 14.5 million people unemployed.

But there is an even more serious, longterm problem that is unfolding, as reported in Money Morning:



Crony capitalism” is a term often applied to foreign nations where government interference circumvents market forces. The practice is widely associated with tin-pot dictators and second-rate economies. In such a system, support for the ruling regime is the best and only path to economic success. Who you know supersedes what you know, and favoritism trumps the rule of law.

Unfortunately, last week’s events demonstrate that the phrase now more aptly describes our own country.

Last Monday (June 8), the U.S. Supreme Court refused to hear an appeal from Chrysler LLC’s secured creditors based on the government’s argument that the needs of other stakeholders outweighed those of a few creditors. In this case, the Obama administration concluded the interests of the United Auto Workers outweighed the interests of the Indiana teachers and firemen whose pension fund sued to block the restructuring. Given the enormous financial support that the UAW poured into the Obama campaign, such partiality is hardly surprising.

When making their investment in Chrysler just a few months ago, the Indiana pension fund agreed to commit capital because of the specific assurances received from the company. In allowing this sham bankruptcy to be crammed through the courts, we have shredded the vital principal of the rule of law, and have become a nation of men, rather than one of laws.



The risk that legal contracts can now be arbitrarily set aside will make investors think twice before committing capital to distressed corporations. Oftentimes, enforcing contracts imposes hardships. That’s precisely why we have contracts.

Without absolute faith that deals will be honored, it will be extremely difficult for U.S. companies to borrow money. This will be particularly true for those companies already struggling with too much debt. Without the ability to issue secured debt, how will such companies access the necessary capital to turn around? If secured creditors cannot count on the courts to enforce their claims, they will not put their capital at risk. What good is being a secured creditor if courts can allow the assets securing your claim to be sold for the benefit of others?

Another problem with the government imposing losses on secured Chrysler creditors is that in its bailouts of financial companies [such as Citigroup Inc. and American International Group Inc., the government took steps to specifically pay back creditors, even when those creditors should have been wiped out.

This inconsistency and lack of equal protection further undermines faith in our economy.

KISS Off



There is much about the rock band KISS to make fun of, but the truly enlightened have always known that they have a secret cool factor that cannot be denied. Therefore it was disappointing to hear the usually sensible Gene Simmons (above) gay bashing American Idol star Adam Lambert. As reported in GayAgenda:



Gene Simmons appeared on various Fox News affiliates today and managed to compliment Adam Lambert (with whom KISS performed on the American Idol finale) briefly before saying that the young singer should "keep his mouth shut about his sexual preference", because "we, America" don't want to hear about "what it is you have to do indoors."

He used the same routine on various outlets (with a bestiality chaser in each one), but here's one version of it:

"Adam should have won. On the other hand he should have kept his mouth shut about his sexual preferences. I don't really care what he wants to do and neither does America. But this kid's got talent, Adam Lambert can go on. As long as he's quiet about whatever else he prefers to do indoors. I personally don't care, I mean if you love farm animals, that's fine, but I don't wanna read a magazine about that."

This is of course coming from the man who has bragged about having had sex with 4600 women, who has said such things about his longtime girlfriend as "Loving someone and caring about someone does not mean they have the right to own you. She will mount the milkman if she wants, so relax, why torture each other?" and whose current claim to fame is a reality show about what his family does. Indoors.

As one commenter nails it:

If you talk about a wife or girfriend, you're just talking. If you're a guy and you talk about your husband or boyfriend, you need to shut up and stop shoving it down people's throats. They honestly don't get the double standard.

In Public

This morning people in Northampton were out drumming up voters for the tax override today.



Actually I'm surprised to see the supporters doing that, since the higher the turnout the more likely it is to lose. They need to keep the turnout low so that public employee types can dominate the electorate.

Here's one way to make a Pulaski Park bench better to sleep on - make a newspaper mattress!



Revolting

Amherst lifestyle choice.



IF YOU ONLY KNEW WHAT YOUR GOVMT WAS DOIN on a Northampton curb.



Today's Video

Music from the Northampton underground.