Uncle Sam or Santa Claus?

Used to be in this country that businesses which were successful were rewarded and failure in business was punished – that’s how capitalism worked. Now, if you fail, it’s no problem – Uncle Sam using taxpayer dollars will reward you for your failure. Such is the case with the failed investment firm AIG, who plans on paying bonuses to their managers with YOUR money. Let me repeat that – YOUR money, which the government had to borrow, which will eventually be paid through higher taxes – which will prolong any economic recovery.
While our elected leaders reward business failures, we need to consider what signal this sends to businesses that are successful. Whose managers are making the hard but necessary management decisions, taking calculated risks, so they can succeed in turning a profit during these hard economic times.
If you were the hard noised manager of a successful business, and realized that the government was now covering any losses you experienced from making bad decisions or outlandish risks, what incentive would you have to manage efficiently and effectively? Knowing Uncle Sam come in like Santa Claus and bail you out, therefore rewarding you for bad decisions or miss management, you could pay out big bonuses, never have to lay anyone off even though there was not enough work to keep them, and pretend we are still living in economic good times.
We need to tell Uncle Sam put away the red stocking cap and stop helping – it sends the wrong signal to business leaders. Corporate welfare checks have got to stop so the laws of economics can play out during this economic downturn. While painful, it’s the quickest way to get the country back on track.

No Experience Required

Do you need experience to hold a public office? Well, evidently that depends if you are a Democrat or Republican. If you are a conservative, you better have YEARS of experience. But if you are a Democrat, and especially if you happen to share DNA with a former President, then you get a Free Pass.
Such is the case with Caroline Kennedy. She has zero experience that qualifies her to be a US Senator, yet, to the left and the liberal media, that doesn’t really matter – in fact, don’t even bring up the fact she has no experience. While I don’t have an issue with someone wanting to become a US Senator, I do have an issue with the Double Standard applied to Ms. Kennedy vs. that applied to Governor Sarah Palin.
When Governor Palin was tagged to be Vice President, the left along with their allies in the liberal press launched a relentless attack against Palin, going on and on about her lack of experience and that it spelled absolute disaster upon Senator John McCann’s death – some even using insurance actuary tables to predict McCann’s death date to highlight what a dangerous situation it would be for the country if the totally unqualified Palin assumed the office of the President.
While I understand the office of the President has much greater responsibility than that of a Senate seat, I don’t understand why Caroline Kennedy’s complete lack of experience isn’t even mentioned by the left or the liberal press.
But I guess the lack of experience standard doesn’t apply to liberal democrats. After all, look who’s about to become President.

Say It Ain't So!!

Here’s a real news flash – evidently, there are corrupt Democratic politicians in Illinois! Even CNN and MSKGB couldn’t sweep the the Rod Blagojevich (D) story under the rug. (which I understand the rug is for sale to the highest bidder)

Gimmie Shelter

So the big three fat cats from Detroit were back in Washington again begging for a handout. Seems they now have a “business plan”, unlike their last visit. After decades of building vehicles inferior to German and Japanese cars, it seems in ONE week, they came up with business plans so impressive that Congress would have to give them the money. One of the execs said they had invested millions of dollars on how to build a better car and it was coming soon. Gee, you think they could have just spent 20k on a Toyota Camry or Honda Accord and took a good look at it.
All of this is due to the big three paying for their sins of the past. During the 1970s and 80s, they built some really bad cars. So bad, that many Americans who would have never considered buying a Japanese import did just that. And once they experienced the quality of those foreign made cars, they would never take another chance on something coming out of Detroit. I know, because I’m one of these people who was brought up to “Buy American”. After years of buying Detroit junk, I bought a Nissan – and it was such a quality vehicle, I’ve never looked back. There are many more folks whose experience is the same as mine.
To further exacerbate Detroit’s woes, no one believes their claim to be ‘American’ carmakers anymore. GM, Ford and Chrysler are global companies – just like Toyota, Nissan, and Honda. All of these companies have plants and build vehicles on American soil, and employ American workers. All of these companies have plants in foreign countries too. The profits (if any) go back to their respective corporate headquarters in which the CEOs are responsible to the stockholders. So what differentiates the big three from the rest of the world? Perception – the perception Detroit is still building inferior vehicles.
To be honest, the big three may be building quality cars today – I just can’t gamble 20 thousand dollars to find out – and neither are a lot of other Americans.

Obamanomics For All!!

The latest we hear from the President Elect is we need another “stimulus package” targeted at the middle class, who we continually hear are hurting from the eight years of failed economic policies of George W. Bush. It appears even after the election, the liberal democrats just can’t stop blaming old Dubya for everything – but they better savor the moment, because after the inauguration on January 20th, the Democrats will have to own up to their incompetence, for example Barney Frank and Chris Dodd for the Freddie and Fannie fiasco. But I’m getting off the point – Obamanomics plans to provide us more stimulus money – but no one seems to be talking about where this money is coming from. Well, it’s coming from your pocketbook, or rather yours, your kids, their kids, and your kid’s kid’s kids. Yes, the very democrats who lambasted Dubya for increasing the federal debt, plan on increasing that debt by leaps and bounds.
To put this in perspective, let’s take this down to a neighborhood example. Say you bought a nice home that was within your budget in a good neighborhood -- you work hard, you pay your bills on time, and you drive a modest family sedan that gets decent gas mileage. You live within your means, and try to save a little for retirement and something to put your kids through college. However, in that huge upscale house across the street, lives Denny the Democrat. He has a much different outlook on life. Although his income really didn’t support the loan that was backed through Freddie Mac for his huge upscale home, he moved right in. He drives a luxury, 5 ton, 3 mpg SUV, just like the one his wife drives. He accepts every credit card offer he receives in the mail and runs each one up to the limit. One day when you inquired how he lives so well on a middle class income, he explained to you what an idiot you are by playing by the rules, that being financially responsible was a out dated notion and you should do the rollover credit card game he does which allows him a lifestyle far beyond his income. After all, if he can’t pay, then he’ll just declare bankruptcy and let those evil rich bastards eat their bills. How dare they expect him to pay anyway – they are big rich banks and have plenty of money.
But then one day, the roof caved in on Denny’s house of credit cards – seems they changed the laws and it’s not so simple to declare bankruptcy. He is facing foreclosure on his house, the repo man wants the SUVs, and Denny just doesn’t understand what he did wrong – there’s no way he could be responsible for his plight. So Denny comes knocking at your door for help. He explains how you can fix all of this – quite simply, Denny tells you to take out a second mortgage on your home, take cash advances on your credit cards, cash in your kids college funds, cash out your 401k, and then give the money to Denny to bail him out of his financial woes. After all, Denny is broke and in debt, so why shouldn’t you be too? Denny further explains that this is in your best interest, because if Denny moves, his house will lose value while it sets empty, which will run down the neighborhood. Neighborhood home values will drop, and the neighborhood will become a slum. Besides, you can afford this because you've been living by the rules and will make adjustments to your lifestyle to pay back all of the debt – this allows you to “spread the wealth around”.
So in case you haven’t figured it out, “you” is the American taxpayer – Denny is the Democratic White House and Congress. They want to put you further in debt to reward very bad behavior by those who don’t feel they should be responsible for their actions.
I don’t know about you, but a certain part of my body is feeling very stimulated by Obamanomics – and it’s quite painful.

They Just Don't Get It....

OK – so this past week, the top corporate fat cat executives from the “Big Three” in Detroit, went before Congress, begging for loan guarantees so they could sustain business operations. It seems they are drowning in red ink since people stopped buying their gas guzzling SUVs or Pickups. Plus, as they have lost credibility with the majority of the American public that Detroit can build a quality vehicle, no one wants their cars either. It seems GM, Ford, and Chrysler are suffering financially due to poor planning and bad management. Times are tough and they were pleading with Congress to help them out of their hard times. I find it odd that Toyota, Nissan, and Honda, who all now build cars in the United States just like the big three, aren’t asking Congress for a handout.

Thing is, these fat cats from the big three, who are responsible for the plight of their companies, all flew to Washington separately in their company provided executive jets. Demonstrating that giving these guys money to help them get well would be the same as giving an addict more heroin and expecting them to kick the habit.

The fat cats just don’t get it.

Brother, Can You Spare a Dime?

I say “NO”. These days, GM and Ford, stand for ‘Gimme More’ and ‘Forgive Or Refinance (my) Debt’. With the Federal government handing out our tax dollars to Wall Street and the Mortgage industry, our so called “American” auto makers claim they also need a piece of the bailout pie, or they will be forced to declare bankruptcy. The threat of bankruptcy being a gun to the head of Congress – in other words, if you don’t give them billions of those tax dollars, they will put thousands of Americans out of work – and then they wrap our flag around their nameplates as if there is something patriotic about buying a Ford or Chevy and that those of us who bought those little cheap foreign cars are traitors.
So why are these car makers drowning in so much red ink that they have to stand in line for a handout? Well, first they refused to change with the times. Asian car makers figured out years ago, that you only needed one main auto line and one upscale line – like Toyota and Nissan respectively have Lexus and Infiniti. On the other hand, General Motors has Chevrolet, Pontiac, Buick, Hummer, Cadillac, Saturn and GMC – SEVEN different lines of vehicles – some of which the only difference being the logo on the grill. Ford at least has been divesting itself from this type of redundancy, but still has Mercury, which is a carbon copy of Ford’s main lineup. Second, Detroit has refused to learn from history. Back in the early 70’s during the Arab Oil Embargo, Detroit was filling our highways with low mileage family sedans the size of land whales and over-powered hot rods. However, the Asian auto makers, specifically Toyota and then Datsun, (now Nissan) had fuel efficient cars ready to sell that allowed them to make major inroads into the American marketplace. A foothold they have exploited to make their nameplates today a part of the American culture. But when 1970s Detroit finally responded to the need for high mileage vehicles, GM gave us the oil burning Chevrolet Vega and Ford the exploding Pinto. Now fast forward to 2008 when gas prices jumped to $4.00 a gallon – while Detroit was filling their showrooms with behemoth gas guzzling SUVs and Pickups, Toyota introduced the Yaris, Honda the Fit, and Nissan the Versa – all high mileage vehicles – again providing America with the right vehicles at the right time.
It seems history repeats itself.