Archive for stimulus

Stimulus we can believe in

Posted in Uncategorized with tags , , , , , , , , , , , on March 6, 2009 by judsonwheelerphillips

Yesterday, my wife told me about one of the financial talkers on cable and a proposal that he made. I think it was Jim Cramer of CNBC, but since I have seen neither a video clip nor a blog where he makes this proposal, I will not attribute it to him.

There is no doubt the economy is in trouble. If I had my way, we would be doing massive tax cuts to stimulate the economy, along with reasonable spending reductions until we come out of this. Unfortunately, the Obama/Pelosi/Reid axis of fiscal evil does not believe in tax cuts. While I want Obama’s policies to fail, I do not want America to fail. We need a stimulus and this is one that would work.

One major part of our current economic disaster is the housing market. One in nine are believed to be either behind on their mortgage or facing foreclosure. So far, the only proposals for bailouts from the Obama/Reid/Pelosi axis of fiscal evil have been to bail out the cheats and the deadbeats. For these people, it does not matter if you give them a 4% mortgage and bail them out. They still can not pay. All they are doing is rearranging deck chairs on the Titanic.

How about something for the rest of us? How about something those of us who played by the rules? How about something for those of us who did it right?

The proposal is simple. Everyone who has a mortgage can qualify for a 4% government backed mortgage. This would work wonders for the economy. For most middle class people, this would lower their payments by hundreds of dollars a month and give them at least one month where they would not have to pay a mortgage. Where would this money go? Some of it would probably go to pay off bills. Some of it would go into the economy to buy things. People will buy cars, appliances, have their houses remodeled. They will do any number of things, but the money will go into the economy and help keep their neighbor employed!

This is a stimulus for Americans who work hard and do as they are told. This is a stimulus we can believe in.


A little town in Texas

Posted in Uncategorized with tags , , , , , , , , , , on March 5, 2009 by judsonwheelerphillips

Winnsboro, Texas is a picturesque little town. It is east of Dallas, some where between Interstate 30 and Interstate 20. According to the Chamber of Commerce, it has about 3,500 people. It is in the fifth congressional district and it is getting a lot of pork money.

How much pork money? How about $134,000,000.00? That’s One hundred and thirty four million, for those who don’t want to count the zeros. Two Republican Senators represent Texas and their congressman is one Jeb Hensarling. If you go to his website, ironically, he features a couple of photos of him, “standing up against pork”.

Why does Winnsboro, Texas need $134,000,000? For that much money, you would think this would create tens of thousands of jobs. It is predicted that this will create a shade over 2000 jobs.

Among the other outrages, the stimulus has given Winnsboro $12,000,000 (that’s 12 million) for “Pending Recruitment of a Windmill Production Company. For $12,000,000, Winnsboro will get 24 new jobs. Now, I’ll admit I am a product of the public schools, but that translates to $500,000 per job. That is insane!

Another project gives Winnsboro $6,000,000 for “Incentives for non-polluting industries to relocate in area. At least for that one, they are anticipating one thousand jobs. There is another $5,000,000 for medical facilities expansion, which will create a whopping 20 jobs. (Isn’t that $250,000 per job?)

All told, Winnsboro is getting $134,000,000.00. For this, all told, they will create, 2113 jobs. Now we all know how accurate government statistics are, so it probably means that for twice the money, we will get half the jobs.

I am sure that Winnsboro is a really nice place. I bet the people in Winnsboro are the all-American types. I am sure they own guns, go to church, meet at the local VFW and vote republican.

But it is an absolute abomination that this kind of money is being spent on this small town. Unfortunately, this is only a small portion of the stimulus story. You will not hear about this from the mainstream media.

Can someone explain the tax dollars paid by my neighbors in Tennessee going to pay for things that the community of Winnsboro should be paying for themselves?

It is this kind of spending that will bankrupt our nation and destroy our children’s future.

If we let this happen!

The war on the American Middle Class

Posted in Uncategorized with tags , , , , , , , , on February 28, 2009 by judsonwheelerphillips

Larry Kudrow of CNBC recently wrote a column about Obama’s economic strategy, in which he called the Obama policies a declaration of war on investors, small businesses, entrepreneurs, and capital funds.

While Kudrow calls it exactly like it is, he fails to come to the logical and obvious conclusion. Obama isn’t simply making mistakes or following a bad policy. He is deliberately trying to destroy the economy.

To understand this, you must understand Obama. Obama, in his own words, has said he has always been attracted to Marxists. Starting with Frank Marshall Davis, who befriended the teenaged Obama in Hawaii, to Jeremiah Wright to Bill Ayers, Obama has always associated with Marxists. Obama is also a follower of the late Saul Alinsky. Alinsky advised his followers to become mainstream, go in the system, and work to destroy the system from the inside. Obama has followed this to the letter.

The obvious question some have is why would he do this?

It is simple. Obama is in fact, a Socialist/Marxist. Socialists, and those on the far left believe that Capitalism is inherently evil and must be replaced by an economy totally controlled by the State in order to assure “fairness”.

Thus Obama, Pelosi and the hard left of the Democratic Party have launched their war against the economy and the middle class. They want a depression. Why? Because, with a depression, more people will become dependent on the government. With that dependence on the government, they will vote to maintain the Democrats in power for the foreseeable future. This worked with Roosevelt. He was elected in 1932 and it took twenty years for another Republican to be elected President.

The ultimate goal of the Obama/Pelosi/Reid axis of fiscal evil is the destruction of the middle class. Consider what they are doing. Their policies are taking what would be a bad recession and turning into a depression. Every time Obama opens his mouth, the Dow drops 200 points. By increasing taxes on individuals, we have less to spend. By increasing taxes on corporations, it is increasing the costs of doing business. Most of those costs will be passed along to consumers. For some businesses, it will be their death knell. The Democrats talk about nationalizing banks and the bank stocks plunge, leaving little choice but for the government to become the majority shareholder and wiping out investors. The Democrats continue to wipe out the value of the stock market. As they do, they advocate an increase in the capital gains tax rate. This only pushes the markets further down as investors try to get out before the new tax rates kick in. Aging baby boomers are not only seeing their 401(k)’s being diminished in value, but now they, since they must liquidate their 401(k)’s starting no later than age 70 and ½, they have wonder how they are going to even have a retirement.

In the next year, as the stock market craters and as aging baby boomers see their prospects of a retirement disappearing, they will be offered a chance, by the government, to transfer their 401(k)s into a government retirement system. Not a good prospect.

The hallmark if the middle class has been homeownership. Obama, Pelosi and Reid are working to end that American dream. The House has begun rewriting the bankruptcy code. Among other portions of the new Pelosi bankruptcy code, there will be what is called a “cram down” provision. This is going to allow Federal Bankruptcy Judges to rewrite mortgages and even reduce, not only the interest, but the principle as well.

Imagine what this is going to do to the mortgage industry. Mortgages are at 5% because they are very safe investments. In the mortgagee defaults and goes into bankruptcy, the only creditor with any greater standing is the government and if the property owner cannot make payments under the bankruptcy plan, then the mortgage company gets the house back. No more under this plan.

Mortgages will no longer be a safe investment. Banks will have to raise their interest rates, just to cover their risks. In addition, lending requirements will become much tougher. Twenty or even thirty percent down payments will be come the norm. Young families who in the past could afford their first home at a fairly early age, may well have to wait until their thirties or later to afford their first house. The ripple effect of this will be to cripple the building industry, putting more people out of work.

This is only part of the Obama war on the economy. We have to fight and take our country back, before Obama destroys the America we know.