Obama Urges Spending Curbs for Somebody, But Not Him

Associated Press headline, “Obama urges spending curbs, hands out $15 billion.”

After not quite a month in office, I’ve begun to change my opinion on the President. I thought at first he was a useful idiot, a tool of the powerful Democrat Spending Machine.

I no longer think he’s useful, and “idiot” may be too high a compliment.

“If we confront this crisis without also confronting the deficits that helped cause it we risk sinking into another crisis down the road,” the president warned. “We cannot simply spend as we please and defer the consequences to the next budget, the next administration or the next generation.”

It’s barely a week since Obama disregarded calls to trim the so-called Stimulus Package, the Porkulus Bill. Billions of dollars of non-stimulus spending items went into that bill, then Obama followed up with another $250 billion or so for the mortgage industry.

Obama has spent more money in 30 days than any President in history. I would not be surprised to find he spent more than all previous Presidents combined.

And he has the gall to say we have to get spending under control? Does he even have a clue what he’s doing? First he says we must spend for the good of our economy, then he says we need to stop spending for the good of the economy.

What the heck is he doing? He’s not just saying an doing two different things – he’s actually saying to different things at the same time.

I see today he’s also pledged $900 million to rebuild Gaza. Didn’t we also sell Israel the weaponry to destroy Gaza to halt terrorist attacks? When the Palestinians re-attack Israel, will we also help rebuild Jewish settlements? Where did Obama suddenly get this $900 million?

Next up, nationalized banks, nationalized healthcare, a few more trillion dollars in spending, followed by another call for fiscal responsibility?

What got us into this mess was government intervention pressuring banks into lending to people who couldn’t pay their loans back and individual and corporate greed and a attitude of immediate gratification and a complete disregard for the debt our grandchildren will inherit. And somehow, the fix for this mess is to pressure banks into lending to people who can’t pay their loans back and individual and corporate greed and a attitude of immediate gratification and a complete disregard for the debt our grandchildren will inherit. Are these people nuts?

No wonder there’s a movement afoot for a Chicago Tea Party. We’re taking money away from the grandchildren in red states and giving it to inept governments in blue states. And now Obama says those same grandchildren better get their spending under control. It’s worse than Orweillian. It’s obtuse and deranged. It’s destructive.

Please stop helping, Mr. President, before we become a third world country.

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Tea Party

And so the veil of deceit lifts. The news media, so eager to proclaim Obama as the messiah during the election cycle, now turns on him and begins to devour him. What changed?

In one sense, nothing. Obama’s promises of socialist changes are progressing. Universal health care, nationalization of manufacturers and banking, imposition of union rules, reestablishment of federal funding of abortion, and massive taxing and spending are being implemented at a frightening speed, with no conservative obstacles in sufficient numbers to slow them down.

In another sense, everything. Obama promised to be open and honest, anti-pork, hope and change instead of fear, yet many of the policies were buried inside a pork-laden monstrosity without debate, without the 5-day evaluation, and signed under dire warnings of catastrophe, and sometimes outright lies, such as the re-hiring of manufafacturing jobs and “all economists agree” pitches.

The revolt of hard working American, long overdue, has begun. Trillions of dollars printing are now showing up as inflation. CNBC says “traders revolt” and openly question why diligent homeowners must pay for the mortgages of dlinquent homeowners. Even high school children, governed by emotion instead of experience, said after his appearance this morning that they don’t believe eveything Obama says and understand the Stimulus bill is bad for the economy and is merely a thinly-disguised pork-laden liberal agenda.

One teenager even wore an Obama t-shirt that said, “Hitler gave good speeches, too.”

But the “angry left” is having it’s day, and I see few obstacles in their way for the next two years. It’s amazing the damage they’ve caused already in just 3 weeks of office. What can we do except batten down the hatches and weather this liberal storm?

I’m praying, and I’m buying gold.

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Mortgage Meltdown

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I had been thinking this, but hadn’t seen anybody writing about it.

Sub-prime mortgages have led to a financial crisis. The blame for sub-prime mortgages generally get laid on the greed of the mortgage bankers, but is that all there is to it?

Twenty years ago I remember the push to get banks and lending into low-income minority neighborhoods. There was a push at the time to make mortgages easier for those who could least afford them because it was good for the neighborhood.

Stan Liebowitz’s book, Housing America: Building out of a Crisis, puts the blame back on the federal government. I agree – without the government pushing banks to lend to risky people, there would have been less risk. Simple, no?

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Update from A Mortgage Fable

– The Community Reinvestment Act. This 1977 law compels banks to make loans to poor borrowers who often cannot repay them. Banks that failed to make enough of these loans were often held hostage by activists when they next sought some regulatory approval.

Robert Litan, an economist at the Brookings Institution, told the Washington Post this year that banks “had to show they were making a conscious effort to make loans to subprime borrowers.” The much-maligned Phil Gramm fought to limit these CRA requirements in the 1990s, albeit to little effect and much political jeering.