The myth of conservative strength: Several not-so-conservative conservative ideals proven wrong when given the chance

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There are many examples of the failed philosophy of neo (new) conservatism, such as the Wisconsin Policy Research Institute , the Project for New American Century, and last but not least, financial ‘innovation’ in the economy.  You can argue until you are blue in the face about philosophy and theory, but some evidence is empirical.  It just can’t be argued.  The outcome, or the results, of particular programs and policies in action speak for themselves, similar to how if you mix water, milk, eggs, and Bisquick just right you get pancakes.

The WPRI was a group that had advocated for school choice vouchers in Milwaukee.  After the program was instituted and studied, they issued this report which said, among other things:

“The report you are reading did not yield the results we had hoped to find,” George Lightbourn, a senior fellow at the institute, wrote in the paper’s first sentence. 

On the same topic of vouchers but not from the same report, I spent a day in Jefferson City speaking with a local Republican State Representative at the time named Jim Lembke.  It was a very cordial conversation on education policy in the Missouri.  However, the conversation ended quite abruptly after I said to him:

My grandfather was a conservative.  (I like to call him an Eisenhower conservative.) And as I understand it, in his day, they believed that public tax dollars should not be used for private purposes.  In relation to vouchers, what ever happened to that conservative ideal?

Then there is The Project for a New American Century, a conservative think tank formed during the Clinton Administration and whose membership included the likes of Steve Forbes, Bill Kristol, William J. Bennett, Paul Wolfowitz, Richard Perle, John Bolton, Robert Kagan, Richard L. Armitage, Donald Rumsfeld, Dick Cheney, Jeb Bush, “Scooter” Libby, Dan Quayle, and more. They penned a letter that said some of the following (keep in mind, this was before 9/11 and a few years before W. was ever elected POTUS):

“That strategy should aim, above all, at the removal of Saddam Hussein’s regime from power.”

“Our ability to ensure that Saddam Hussein is not producing weapons of mass destruction”

“Such uncertainty will, by itself, have a seriously destabilizing effect on the entire Middle East.”

“a significant portion of the world’s supply of oil will all be put at hazard…”

“…removing Saddam Hussein and his regime from power. That now needs to become the aim of American foreign policy.”

“…If you act now to end the threat of weapons of mass destruction against the U.S. or its allies, you will be acting in the most fundamental national security interests of the country. If we accept a course of weakness and drift, we put our interests and our future at risk.

Of course, we know how all of that worked out.  $150 a barrel for oil, $10 billion a month in Iraq Afghanistan, oh, and no Weapons of Mass Destruction.  Notice how almost all of the people mentioned in the letter to President Clinton seen here ended up in the Bush Administration.

The phrase that freaks me out the most from the Project for a New American Century is an excerpt from the following paper:

Further, the process of transformation,
even if it brings revolutionary change, is
likely to be a long one, absent some
catastrophic and catalyzing event – like a
new Pearl Harbor. Domestic politics and
industrial policy will shape the pace and
content of transformation as much as the
requirements of current missions.

And last but not least, the financial market.  So far, we have talked about two of the items that the conservatives are traditionally given credit for as their strength.  Taxes, Defense, and now Finance.  It is clear that their strength in these areas is nothing more than a myth, and a very damaging myth at that.  Here is the latest from Fed Chairman Ben Bernanke:

“One would be forgiven for concluding that the assumed benefits of financial innovation are not all they were cracked up to be,” the Fed chairman said today in a speech at the central bank’s community affairs conference in Washington. “The damage from this turn in the credit cycle — in terms of lost wealth, lost homes, and blemished credit histories — is likely to be long-lasting.”

Bernanke Says Crisis Damage Likely to Be Long-Lasting (Update2) - Bloomberg.com

Right-wing extremism is on par with what our military is fighting in Iraq and Afghanistan

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It is exactly this type of mentality that we are risking our young men and women’s lives for on the other side of the world.  Hopefully this movement is just indicative of the last breathe of an evil murderer in a horror movie, rising for one final scare before he flames out for good.  Of course, the best case scenario would be “puppies and bunnies” but it would be naive of me to think that violent and grotesque ignorance does not exist in this world.  The latter of which is why good men and women periodically are called to lay their lives on the line for the sake of morality, and the shared purpose of all people in the struggles of life.  In this case, let’s just hope that law enforcement is adequate and up to the task before it escalates beyond a manageable level.

(Newser) – Right-wing extremist groups may be taking advantage of volatile economic times and the election of the first black president to drum up membership in the US, the Homeland Security Department says. The nine-page report, sent to police agencies nationwide, says extremism isn’t limited to racist hate groups but “may include groups and individuals that are dedicated to a single-issue, such as opposition to abortion or immigration,” the Washington Times reports.

The rising unemployment rate, spate of foreclosures, and debate over issues such as immigration reform and gun control may be creating a “fertile” ground for recruitment, the reports says. The election of President Obama may also play a role, though “most statements by right-wing extremists have been rhetorical, expressing concerns about the election of the first African American president, but stopping short of calls for violent action.”
Sources: Washington Times, CNN

US Warns of Rise in Right-Wing Extremism - Politics news | Newser

Drama: Adolf Hitler finds out he cannot refinance his home

The best lines are, “I need a sign that says, ‘Idiot’ and hold it over my head like this!” and “I will just sell my Lehman and AIG stock.”

GOP Govs Back Down, Request Stimulus Funds - Politics news | Newser

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We al  knew they would, didn’t we?  I never doubted it for a moment.  More of that, “Do as I say, not as I do” stuff that has all of the Evangelical Christians disillusioned with the Grand OLD Party.  Since some have threatened a third party break-away, may I suggest the GOP-H…the Grand ‘Ol Party of Hypocrites?

(Newser) – Tough talk about rejecting stimulus funds earned some GOP governors—and presidential hopefuls—plenty of headlines, but reality has set in, Politico reports. Under fire from their legislatures, Bobby Jindal, Mark Sanford, and Sarah Palin have all requested funds in the past week. “At this point it looks like everybody’s on board with the program,” said an OMB rep.

“We’ve tried to compromise in a variety of different way," said Sanford. “I got beaten up pretty bad on it.”

GOP Govs Back Down, Request Stimulus Funds - Politics news | Newser

Economist: US collapse due to fraud, Geithner covering it up

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This feels really true.  But I try not to put too much weight on what I feel at the expense of what I know.  What does anyone out there “know” about this?

In an explosive interview on PBS’ Bill Moyers Journal, William K. Black, a professor of economics and law with the University of Missouri, alleged that American banks and credit agencies conspired to create a system in which so-called "liars loans" could receive AAA ratings and zero oversight, amounting to a massive "fraud" at the epicenter of US finance.
But worse still, said Black, Timothy Geithner, President Barack Obama’s Secretary of the Treasury, is currently engaged in a cover-up to keep the truth of America’s financial insolvency from its citizens.
The interview, which aired Friday night, is carried on the Bill Moyers Journal Web site.
Black’s most recent published work, "The Best Way to Rob a Bank is to Own One," released in 2005, was hailed by Nobel-winning economist George A. Akerlof as "extraordinary."

Economist: US collapse due to fraud, Geithner covering it up

The American people rescued AIG, and AIG spit in their face – up next?…Governmental Creativity

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The pompous ignorance of AIG needs to be met with a little creativity on the part of the government.  The following from Aaron Zelinsky is a good start.  One thing that keeps me wondering is this, business is all about branding.  AIG had a good brand and good name.  AIG made some major financial mistakes.  The American people came to AIG’s rescue, not for the good of AIG, but for the good of the American people.  In turn, AIG has spit in the face of the American people. 

What does this mean for AIG and its brand?  There are only two possible answers.  1.  Follow Blackwater and rename your company something people cannot pronounce, or 2. Get bought out.

There is no way that most self-respecting Americans would do any business in the future with AIG as it stands right now, which is not a good sign as it relates to the American people collecting on their debt.

Treasury Secretary Tim Geithner should direct the Commissioner of Internal Revenue to challenge the AIG bonuses as unreasonable compensation under the Internal Revenue Code. Finding the AIG bonuses to be unreasonable compensation would render them nondeductible for federal tax purposes, and would strengthen potential shareholder derivative suits to recapture The Great AIG Giveaway.

Section 162(a) of the Internal Revenue Code declares:

"There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including . . . a reasonable allowance for salaries or other compensation for personal services actually rendered."

Aaron Zelinsky: Larry Summers: Stop the AIG Bonuses. Yes You Can.

The Size of Derivatives Bubble = $190K Per Person on Planet

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I’m speechless, but I had to post it anyway – via BoingBoing.net

The Invisible One Quadrillion Dollar Equation — Asymmetric Leverage and Systemic Risk

According to various distinguished sources including the Bank for International Settlements (BIS) in Basel, Switzerland — the central bankers’ bank — the amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144 Quadrillion, ie, USD 1,144 Trillion. The main categories of the USD 1.144 Quadrillion derivatives market were the following:

1. Listed credit derivatives stood at USD 548 trillion;

2. The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included:

a. Interest Rate Derivatives at about USD 393+ trillion;

b. Credit Default Swaps at about USD 58+ trillion;

c. Foreign Exchange Derivatives at about USD 56+ trillion;

d. Commodity Derivatives at about USD 9 trillion;

e. Equity Linked Derivatives at about USD 8.5 trillion; and

f. Unallocated Derivatives at about USD 71+ trillion.

The Size of Derivatives Bubble = $190K Per Person on Planet

Data shows overwhelmingly that Fannie-Mae and Freddie Mac are not to blame for financial crises – Op-Ed: Karl Frank – Call Newspapers

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As seen in the editorial section of Call Newspapers in St. Louis, MO…

Reader analyzes how PMEs have covered current economic crisis

March 11, 2009 - We live in the age of personal media environments, or PMEs, with newspapers, Internet sites, blogs, cable news stations, radio stations, viral e-mails, et cetera.
PMEs are customized information sources we build for ourselves over time that closely align with our particular ideologies. We mold our PMEs to reaffirm what we already believe as true.
We largely ignore and discredit news items and opinions that are contrary to our belief systems, and we focus in on anything that supports our mindsets.
How have our PMEs covered the economy? Media Matters for America analyzed 139.5 hours of programming on the stimulus plan on all major news stations from Jan. 25 through Feb. 8. They found that CNN, Fox News and MSNBC did not have a single economist on to discuss the stimulus plan.
What about the rest? "Of the 460 guests making appearances, only 25 were economists — a mere 5 percent."
If news outlets really cared about informing their viewers, why would they fill the airwaves with pundits over experts?
A good example is this idea that Fannie Mae and Freddie Mac are to blame for the current economic crises because of their participation in backing sub-prime loans.
The data shows otherwise. By 2006, more than 70 percent of the sub-prime mortgages were privately held and backed — Fannie and Freddie held only 24 percent.
As a matter of fact, when you dig in to the Treasury Department data, as McClatchy Newspapers did, it is surprisingly glaring how wrong this pundit-forced accusation is.
Space does not permit the details, but two items will shed light on the sub-prime mess. One is David X. Li’s Gaussian Copula Formula, adopted by Wall Street to assess the risks of credit default swaps.
According to Wired.com, in 2001, there was $920 billion in these credit default swaps outstanding; in 2007, more than $62 trillion. That’s right, $62 trillion. There was 48 times more fiat money in Wall Street gambling on the securities of home mortgages than there were sub-prime mortgages — more than four times the entire U.S. Gross Domestic Product.
The second issue that requires your research is the Commodity Futures Modernization Act, a 262-page amendment added at the last minute to an appropriations bill by Sen. Phil Gramm. This bill later became known as the "Enron Loophole" and is the law that made these credit default swaps on mortgages possible.
So, how could the market that had worked so long and so well for us fail?
The simple answer is that it failed because it was not our grandfather’s market anymore. It was a new, untested and radical market, based largely on a faulty mathematical formula, poor legislation, and, of course, a certain degree of consumer ignorance and Wall Street greed.
If your PME has been telling you otherwise, it may be time to review the reliability and credibility of your sources.
Karl Frank Jr.
Oakville
Editor’s note: Mr. Frank has served on the Mehlville Board of Education since 2005.

Reader analyzes how PMEs have covered current economic crisis

$50,000,000,000,000 (50 Trillion) in total assets lost in 2008 worldwide – Bloomberg.com

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Perhaps anyone wanting to start pointing the finger at Obama of 2009’s stock prices should look at the $50,000,000,000,000 lost in 2008.

March 9 (Bloomberg) — The value of global financial assets including stocks, bonds and currencies probably fell by more than $50 trillion in 2008, equivalent to a year of world gross domestic product, according to an Asian Development Bank report.

Asia excluding Japan probably lost about $9.6 trillion, while the Latin American region saw the value of financial assets drop by about $2.1 trillion, said Claudio Loser, a former International Monetary Fund director and the author of the report that was commissioned by the ADB. The report didn’t give a breakdown of asset declines in other regions.

“The loss of financial wealth is enormous, and the consequences for the economies of the world will unfortunately commensurate,” said Loser, now the Latin American president of strategic advisory firm Centennial Group Inc.. “There are serious economic and political stumbling blocks that may well cause the recovery to be costly and slow to consolidate.”

Bloomberg.com: Worldwide

Ohio School Janitor Job Gets 700 Applicants

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When I am debating public policy with friends and family, those on the conservative side often say something like, “I don’t want my hard-earned money going to people who just sit at home living off the government.”

I usually reply with two things, “You are going to pay one way or another.  Maybe it will be through higher crime rates, or maybe something less direct, like a bad economy, low stock prices, or reduced value of the dollar.  Wouldn’t you prefer to invest in your community on the front, constructive-end over the unsafe, uncertain tail-end?”

And then I say, “Most people who are out of work during high unemployment and recession want to work….”

MASSILON, Ohio — Evidence of the slumping economy is stacking up at an Ohio school which has nearly 700 applications for one open janitorial job.

Officials at Perry Local Schools near Canton in northeast Ohio say they’ve extended the deadline until Monday to accommodate the overwhelming response to the week-old posting.

The full-time position at Edison Junior High School pays $15 to $16 an hour plus benefits.

Superintendent John Richard says many applicants are laid-off workers with heart-wrenching stories about the tough economic times.

Forty-nine-year-old Donna Croston says she applied after losing jobs at two nearby factories that closed.

Croston says her chances of being hired amid the hundreds of applicants are slim, but she’s hoping to get lucky.

Ohio School Janitor Job Gets 700 Applicants

FiveThirtyEight.com: When Will Voters Blame Obama? (For the bad economy?)

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According to Nate Silver, number 10 on Daddy Hogwash’s 10 most fascinating people of 2008, Obama has until September 2010 before 50% of those surveyed start to blame him for whatever economic woes exist at the time.  Right now 84% say the economy is a problem he inherited.

Buried in the latest NBC/WSJ survey (.pdf) is a question asking voters who they blame for the country’s economic problems. Currently, 8 percent of voters say that Obama’s policies are "mostly responsible" for the poor economy and another 6 percent blame him in part. But the longer the crisis lasts, the less patient voters will be:

FiveThirtyEight.com: Politics Done Right: When Will Voters Blame Obama?

The Credit Crises Video of Videos – Good Stuff!

This is a great video from Jonathan Jarvis explaining the credit crises and the role of the investor in the market crash.  Its only shortcomings that I can see are that it does not delve in to how the credit default swaps came in to existence, nor does he speak to the faulty risk formula Wall Street used starting in 2001 to assess the risk of these securities.  Perhaps they require videos of their own.  Regardless, here you go:

Sunday news shows serve to muddle and confuse in the age of Information Inundation

As I do just about every Sunday, I sat and watched Meet the Press, Fox News with Chris Wallace, and This Week with George Stephanopoulos.  As we all know, our economy is in shambles.  Some say it is going to get worse, some say they see us starting to pull out as early as 2010.  Regardless, not a single guest on any of the three shows was an economist. 

If these shows are wanting to inform their viewers on the issues of the day, why do they continue to put on pundits over experts?  At the very least, why not make an effort to balance out their shows with expert analysis?  If there is anything people are sick of, liberal, conservative, or otherwise, it is the constant spin of the various pundits who clearly have an interest in what they can make the general public believe about their positions. 

Media Matters for America recently analyzed stimulus coverage over 139 1/2 hours of cable news and Sunday news shows from January 25th to February 8.  CNN, Fox News, and MSNBC did not have a single economist, and of the 460 total guest, only 25 were economist.  “A mere 5 percent,” stated Media Matters.

In the era of Information Inundation, why can’t the news organizations serve to inform rather than to muddle and confuse?

Some former donors of the Salvation Army are now “clients.”

The Salvation Army is one of the great charitable organizations in the country.  They help everyone from children learning music to homeless men and women who abuse alcohol.  I grew up attending a local Salvation Army church, and this is where I learned music and how to play the Trombone.  Now my children attend the church with my mom and stepfather, and they are receiving many of the same benefits that were afforded to me.

If you can spare that quarter, or dollar, or ten, you can feel safe that your money will go to a worthy cause.  Drop it in the red bucket…because, if for no other reason, you too may look to the Salvation Army for food and shelter.

Salvation Army: Some People Who Used To Be Donors Are Now “Clients”

If the Salvation Army is a charity that you usually support, they could really use your help this year. Donations are down and, according to a press release issued Tuesday, former donors are now “clients.”

“Not only are those in greatest need asking for help today, but those who have newly fallen victim to the economic hard times are at our doors,” said commanding officer, Lt. Colonel David E. Grindle in the press release.

“These are people who once were donors, and now are clients, seeking help with groceries, utility bills and other services as they struggle to meet their family’s needs.”

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With great jobs being far and few between, here is how to find one

This list contains some pretty basic and common sense advice, and is probably more relevant in a strong economy, where everyone who wants to work is working.

I would probably add a couple of things to this list.  One of the first questions anyone asks when they are looking for a job is, “How much does it pay?”  I would also venture to guess that others may ask themselves, “What would my peers and family think.”

The pay question is the most complicated one.  If you are only getting a job because of the pay, chances are, you won’t be happy.  Consider pharmacology.  Yes, it pays $60+ an hour, but many people cringe at the idea of standing behind a desk sorting pills 8 to 10 hours a day.  Not only that, but considering the trends of American culture, many people never make enough money to satisfy their spending habits.  Take the pharmacologist again.  Apparently a high percentage of them buy a Mercedes upon graduation.  Good for them, but while they may make 3 to 4 times more than you, their car payment is 3 to 4 times more as well.  So, they get to have a job standing behind a desk sorting pills for 8 - 10 hours a day so that they can drive home at 8:00 PM in their Mercedes and impress their family and friends.  (Which thoroughly covers the second question.)

Don’t get me wrong, pharmacist are very important, and many people are psychologically cut out for that line of work, but I think you get my point.  Just in case, as long as you have money for food, shelter, water, and clothing, after that, no matter how much money you make, it will never be enough…unless of course, you are one of the minority of Americans who do not base their happiness on the material things that they have accumulated over the years.

Consumer Tips: Empowering YOU to be a savvy consumer Blog Archive - Do this to find a great job « - Blogs from CNN.com

2. Once you think you know those broad areas, open yourself up to what else might rouse you. Here’s a simple technique to identify what that might be: Collect the last four or five issues of Fortune and go through them one by one. Rip out any article or advertisement that sparks a chord. Don’t over-think this. Spread the articles and ads out on the kitchen table and put them into logical groupings. You’ll notice patterns and areas that you probably didn’t realize you were interested in.