Posts Tagged ‘Obama’

Amazing Hoodwinking

December 23, 2009

It’s amazing to me that we continue to let Congress go down this path of rushed legislation.  “We must do this now!”  “We have to sign it before Christmas!”  They’ve used the same pattern for every piece of rushed legislation this year since the initial TARP programs last year.   TARPS I and II.  Stimulus.  Overextended budget.   Cap and trade (though not signed yet).  Health care.  “We can’t afford to stop and think about this.  We must act now!”

It’s the same argument global warming believers use with the planet.  “It will only happen gradually for the 50 – 100 years, but if we wait 5 more minutes it will be too late.”

In a former job we had a lot of “fire drills.”  The bosses would come with these important pieces of work that had to be done now!  They would get us all frothed up so that we were cranking out absolute crud until 2:00 am.  I coined a term for those projects:  JALJA (Jumping Around Like Jackasses).  “Here comes another JALJA,” became common lingo in my group.  Most of us eventually wised up and realized the JALJA’s weren’t important and moved onto to work for bosses who could use their resources effectively.  The JALJA leaders couldn’t figure out what was important and what wasn’t, so everything was, even when it wasn’t.  They didn’t know what they were doing, so they did a lot of it to keep people guessing.

The Congressional pace over the past year reminds me a lot of those good ole JALJA’s.  People seem to be wising up, based on Obama’s declining poll numbers.  I hope it will translate into results at the 2010 Congressional elections to restore a balance of power in Congress.

At the very minimum, maybe we will get back to the days where Congressman and Senators would at least read, if not come to fully understand the stuff they’re voting on.  It seems like such a basic expectation.

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“Seven Presidents Have Failed…”

December 14, 2009

On 60 Minutes last night, Barack Obama claimed that seven presidents have tried and failed to reform health care.  Follow-up questions I would have asked:

1.  Didn’t President Bush sign the Medicare Prescription Drug, Improvement and Modernization Act in 2003?

2. Wasn’t part of that act a provision to add pretax health savings accounts for working people so that people can control more of their health expenditures?

3. If you were to analyze this major health legislation, what parts would you say are having a positive impact and which negative?

4. Do you think the parts that expanded government’s role in health care are positive or negative and why?

5.  Do you think the HSA’s are having a positive or negative impact and why?

6.  If I were Steve Kroft and I had just implied that the 2,000 page health care reform bill was a monstrosity and the President changed the subject by essentially saying, “seven Presidents have failed, but we’re close,” I might have asked, “Is this monstrosity better than failing to pass something?”

I understand there are a couple of dynamics at play.  You can’t upset the President too much or he won’t come on your show and you won’t get ratings.  Also, there is still a halo of infallibility with this guy, so journalists are having a hard time coming to grips with the fact that he is a human after all, and maybe, just maybe, it’s a bit much to expect someone to go from junior senator to legendary world leader in a year’s time.

Tick, tick, tick

December 14, 2009

In an interview on 60 Minutes this evening, Obama blamed Wall Street bankers for the nation’s financial troubles.  If I remember correctly, the question was asked if banks are repaying TARP funds so they could pay their CEOs big bonuses.  To that, Obama said that he thinks that’s a motivation and that Wall Street still doesn’t get it that everyone is mad at them for causing the financial mess (paraphrased from memory).

What’s sad is that many American accept this explanation and we never hold government accountable for their role in the mess.

A true leader would own up to it.  Wall Street certainly played a role in the financial crisis, but they by no means acted alone.  This is where journalism needs to DO IT’S JOB!

Here are some great questions I would have loved to ask President Obama at that point:

1.  Do you think the government or government agencies had any role in the financial crisis or did Wall Street act alone?

2. Do you believe the Federal Reserve should have acted quicker to remove excess money supply after it seemed that the economy got back on track after 9/11?

3. You don’t believe that government put pressure on banks to make credit easier (i.e. lend to people they would normally consider high credit risks) in order to push this idea of expanding home ownership?

4. Didn’t the government provide implicit guarantees to subprime lending, again to expand home ownership, through Fannie Mae and Freddie Mac?

5. Wasn’t Fannie and Freddie one of the largest, if not largest, provider of these bad loans?  And weren’t they acting under direction from Congress?

6.  Weren’t regulations proposed in 2004 that would have reduced the risk of the housing crisis by making it tougher to get loans, but those regulations were rejected by Congress because they would have interfered with the goal of expanding home ownership?

6.  In order for us to better trust your leadership, shouldn’t we expect you to be honest about government’s role in the financial mess?  Rather, you seem to pretend that government has not blame and we should continue to blindly trust the government as you want to expand regulatory power even further.

7. Please tell me, how are the new financial regulatory powers that your administration is proposing different from those in 2004?  Why didn’t the current regulations not work to prevent the crisis?  Did anyone in government not even recognize that a crisis was about to happen?  If not, how can we trust those in government to recognize the next crisis?

8. What do you think about the people who borrowed well beyond their means?  Shouldn’t they have acted more prudently?  Shouldn’t we expect our citizens, who are provided thirteen years of education with a total valued at $150,000, to make responsible financial choices?  Shouldn’t we expect them to be able to read and understand a loan document and do their homework about the realities and responsibilities that come with home ownership?

9. What personal finance advice would you give Americans?

10.  Some say that people were motivated to borrow beyond their means because they felt that home prices were appreciating so rapidly that they could always sell the house and make a nice profit.  In other words, they were borrowing on future hopes rather than their realistic income.  Don’t you think that the government’s finances are reflecting that same behavior?  We are borrowing beyond our means with the hope that the economy will grow strong and pay for it.  Haven’t we learned our lesson here?  Don’t we know how this story is likely to end?