A Government-Made Recession

By mid 2008 almost everybody knew that we were in deep financial trouble. But the forces that brought it about actually began decades ago with The Community Reinvestment Act in 1977. This legislation “forced lending institutions to grant mortgages to people whose income, credit histories, and net worth would previously have disqualified them from getting such loans.”

An old adage suggests that in getting a loan from a bank the recipient must first prove that he does not need one by listing his assets. The bank uses this list to retrieve all or a portion of what is owed should the recipient default on the loan. The less invested or potentially lost the easier it is for the recipient to walk or default. Such is long standing wisdom and favors the more industrious individuals, as it should. What this means in real life is that high crime or impoverished areas of town do not attract investors as readily.

Socialists (share the wealth advocates) saw a race connection, thus injustice, when it was realized that “only 72 percent of minority applicants were approved for mortgages, versus 89 percent of white applicants.” Moral outrage followed which was resolved by legislation ”forcing lending institutions to loan money to people they would otherwise not lend to and in places where they would otherwise not put their money” (“Government Bailout,” The New American, Sept. 29, 2008, pp.11-15).

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When Cars Run on Corn

Here’s Matt Purple in “Corny Capitalism,” posted on American Spectator at the end of August:

Earlier this year, the Environmental Protection Agency issued another one of those announcements read exclusively by government bureaucrats and green policy wonks. The EPA decided to delay a decision to increase the concentration of ethanol legal in gasoline from 10% to 15%. So-called E15 fuel would have to wait for approval until November.

It was a little-read regulatory decision that barely made a splash in the media. But it was also a rock thrown at Washington’s hornets’ nest of food and agricultural lobbyists. “We are disappointed,” warned food giant Archer Daniels Midland. “We find this further delay unacceptable” and a “dereliction of duty,” harrumphed ethanol lobbying group Growth Energy.

…The history of ethanol is a sad torrid affair of crony capitalism and green fantasies. By jumping in bed with the agriculture industry and blindly slapping on new regulations, the government artificially propped up an industry and put itself in a bind from which there may be no return.

Most certainly, the EPA decision is only a delay, not a reprieve.

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Texas and the EPA

Texas vs. EPA update: At this moment, the State of Texas is clashing with the EPA over the EPA’s arbitrary and unconstitutional changes to the Clean Air Act.  (The EPA seems to have forgotten that Congress, not a department of the executive branch, writes our laws.)  The whole story is here: http://www.washingtontimes.com/news/2010/aug/25/texas-fights-global-warming-power-grab/?page=1 Texas Attorney General…

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FCC Town Hall Hearing in Minneapolis

On Thursday, August 19th, 2010, a town hall meeting was held in Minneapolis and involved FCC commissioners Cobbs and Clyburn along with Minnesota Senator Al Franken, who had to leave early because his mother-in-law was in town.:)

Senator Franken and the FCC commissioners spoke about how important it would be to install more government regulation.  This time it would be the Internet.  They called it “Save the Internet” or they also referred to it as “Net Neutrality”

Senator Franken mentioned that the large corporations like Comcast, Google, Verizon will install their own framework and platforms that would benefit their bottom line and make it more difficult for Americans to afford what they referred to as the “tier” platform.  They are concerned that poorer class people could only afford a basic speed Internet, while the more affluent people would have access to a faster speed Internet.  They want all people to have access to the same speed.

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Obama Has Solidified the Bush Police State

On virtually all the major civil liberties issues of the Bush era, the Obama administration has followed its predecessor’s example. Detention without trial has continued. Torturers will not be investigated. Warrantless surveillance of the citizenry goes on uninterrupted. What’s more, by vindicating these policies as a left-liberal Democrat, Obama has solidified them in American political…

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