I read Ann Coulter’s article on Human Events online from July 31 of this year. The thrust of her article was how much and to whom Wall Street gave to the Presidential campaign. If you think that the people on Wall Street was republican then think again. Her argument and I agree 100% is that just like the suburbs are turning liberal so is Wall St. It is easy to follow her and my logic. The proof is in the fact that you first have to know that they went to college. The name of the school is immaterial what is material is that most of them are run by and taught by the left of the left. If you are skeptical just think about the fact that Ann Coulter goes to Columbia University and has pies and anarchist attacking her and President Mahmood Ahmadinejed was greeted almost as a hero. That is all the proof you need to believe that the new crop of MBA’s coming from these colleges are being taught garbage. I heard Dave Ramsey being interviewed on Fox Business Channel during the bail out debate. He argued basically the same thing I, and Ann have been talking about.  The argument is that twentysomething’s with MBA’s are in high positions with major investment and banking industries who seem not to understand the tried and true concept of RISK.  Risk is what keeps most competent money managers from leveraging an investment 60-1. Leverage is the amount borrowed to finance a deal.

The best way to describe our current situation is simple. The first part of our current crisis is ACORN, CRA, criminal mortgage bankers, and finally Fannie Mae and Freddie Mac. Association of Community Organization for Reform Now (ACORN) strongarming Savings or Commercial Banks to lend to customers with a debt/equity of +40% to comply with the Community Reinvestment Act (CRA) that was enacted in the 70’s to stop banks from not lending to people in certain areas. Those two were exacerbated by the likes of Countrywide Mortgage and Indy Bank in California. They loaned hundreds of thousands of dollars to borrowers who had what was referred to as NINJA loans (No Income No Job or Assets). The final leg to this little saga was Fannie Mae and Freddie Mac. The result of these four things coming to a head is now the credit crisis.

The second part of our little mess is incompetent Investment Brokers and Bankers. When Fannie Mae and Freddie Mac bought the subprime mortgages they would package them up and sell them to these brilliant investment advisors who just got their MBA’s from Harvard or Yale, or even Columbia business schools. The brilliant advisors and VP’s would except the Collateralized Debt Obligations (CDO) that were based on unworkable mortgages of people who would not be able to pay the mortgage payments after the subprime loan adjusted to a much higher interest rate. The CDO’s were packaged up by these investment bankers into Mortgage Backed Securities (MBS) and sold again to investors both here and abroad.

The third and last part of our little mess is Credit Default Swaps (CDS) that you and I will be on the hook for to the tune of trillions of dollars. A CDS is a hedge on these securities that basically pays the holder if/when these mortgages default.

I am almost sure that most of this would be a small crisis if it were not for the catalyst of $150/brl oil. The housing bubble would not have been as wide spread as it is if some of the borrowers could have made the adjusted payment if they didn’t have to spend $3.00/gal for heating oil and higher electricity cost not to mention paying $4.25/gal for gasoline. The added mess of higher food cost at the grocery stores did not help.

The whole point of recapping our current financial crisis is that if just one person stood up and said this stuff is so risky it would boarder on being criminal. It starts with being educated in the real world of finance, accounting, and/or economics.  I am talking with a little first hand experience as I am just finishing my BA in Accounting. I had to take an Ethics course that I thought was going to be about the ethical issues in business instead it was a course on the ethics of business and wealth redistribution. My religion class was full of factual errors and little nudges like calling Hamas in Palestine a “Movement” not a terrorist organization. The moral of this story is if you have children on their way to college make sure you know what they are learning and if you graduated from one of the universities stop supporting the alumni. The only way to stop un-educating our children is to stop funding them and sending your children.      

B)  Remember Bosnia? Serbia did not attack us. Serbia was a sovereign nation with a civil war (sound familiar?). I think the civilians in Sarajevo would consider themselves innocent too. I hate to have to repeat what everybody knows except a liberal is: WMD’s ( I know not found yet but could rebuild later), mass graves by Saddam Hussein, firing on planes in the no-fly zone, and last but not least paying Palestinian families for the martyrdom of their children in Israel. For the last time HE WAS A THREAT TO EVERYONE.

C) The idea that anyone deserves a home is stupid. Extending credit to people who can afford them was a good idea regardless of color, however extending credit to people you know can’t afford them is criminal on your part. These people you profess to help are now financially devastated. They will not get credit for a car, school, or even get a better job. I think you should pat yourself on the back for that abundance of caring for the poor you have.  Low interest rates and unregulated industries are no excuse for this sub-prime NINJA lending (No income No job or assets). The only racists are people like you. You constantly hurt the same people you profess to care about, but never do the real work of getting them educated, employed, or financially stable to afford things and get real credit.

D) no mortgage company or private lender is immune from the CRA. It is a federal act not a state and local act. Again stupid, ignorant, or just not concerned about facts.

E) No one is blaming the poor. We are blaming scumbags like you who couldn’t care less about the poor and their long-term needs. You scream about education, but you never hold the teachers accountable for results just give money. One study about 15 years ago stated that schools in Washington, D.C. (that’s the nations capital) spent $10,000/student and still had a 70% dropout rate good going Mayor Berry (He was African-American). Without a real education system employment is hard to come by so that answers the question about income or the lack thereof. I think I answered the question of finances. Congratulations on a job well done. I think you should continue to hurt these people and when they get angry you can just blame us so you stay in power (a lot like Hitler did in the 30’s).   

It has been six days since the election (I use the term loosely) of Mr. Obama. I have been listening to the pundits and media elites to find out how and why Mr. Obama was elected with 65 million votes. Reason 1) “People wanted change” and Obama was on message for 24 months. Reason 2) McCain was all over the place without a coherent message. Reason 3) McCain picked Gov. Palin. Reason 4) the economic meltdown killed McCain’s candidacy when it hit.

I get the whole people wanted change thing. What I don’t get is that nobody new what that was. The change we do know that he will bring is embryonic stem cell research out of the Presidential ban, and he will reinstitute the ban on drilling in Utah. We know he wants to bail out the auto industry and put judges (again I use the term loosely) on the SCOTUS to be sensitive to the plight of single moms and the poor. We know he wants to tax the 5% of the American People who have horded all the money in the world and won’t share with anyone. I think he may be talking about Barbara Streisand, Steven Spielberg, and Bruce Springstein. I find it amazing that Warren Buffet wants higher taxes since it would matter to him one way or the other. It is not the guy making $65 bn it is the guy making $250K that will be hurt the most. What we don’t know is how he is going to manage the $10 trillion debt we are facing now and will more than likely go to $12 trillion in the next 2 years.

I will skip reason #2 because Sen. McCain did have an incoherent message in the beginning, but did hone it in the end. The reason I want to focus on was the choice of Gov. Palin to be his running mate. Governor Sarah Palin did not spend her life maneuvering to be President. She started her political career wanting to be in her children’s educational life. Governor Palin started as a PTA member, and then went to the city council only because she wanted to be a part of her community’s betterment. A political career was hatched only then. I don’t think she ever imagined that she would wind up being Governor or even a VP nominee. I dare anyone who is concerned about their community would ever turn down the opportunity, when asked, to be his/her parties nominee to be Vice-President. As Glenn Beck always says, “I am just an alcoholic.”  Well so am I. I think it may take getting the cobwebs out of our brains to be able to see clearly. Governor Sarah Palin is loved by the conservative wing because she is three things; 1) Believes in life, 2) individual responsibility, and 3) a love of this country that drives her to want to defend her. I wonder if you noticed I didn’t go into her beauty. That is just the icing on the cake. We as conservatives only see beauty as it relates to inner beauty; love of country, and the sanctity of human life.

The economic meltdown is by far the only reason John McCain lost by as much as he did. I am not going to be one of those people who are going to argue that he should have voted against the $700bn dollar bailout/rescue. I am one of those people who believe that the President was so poorly served by Sec. Paulson and FRB Chairman Bernanke. John McCain was right to call for the resignation of Chairman of the Securities and Exchange Commission (SEC) Chris Cox. The rescue of the housing crisis could have been solved by a few changes in the accounting rules and an insurance plan to backup the difference in the amount of the write-down of mortgages and related investment vehicles. The only area that the Government should be dealing with is the $200 trillion in Credit Default Swaps (CDS) that are going to plague our economy for years to come.

The SEC could have killed Sarbanes/Oxley; changes the mark-to-market rules, find an amount (based on revenue streams of the mortgages being paid) of the mortgage assets, and whatever the difference have the Treasury or the FDIC insure it. The whole mess could have been solved for about $200-$300 billion, no money would change hands and the deficit would not go to $10 trillion. The President should fire Cox, Paulson, and Bernanke for gross misconduct and put John Snow back in as Secretary of the Treasury.

The Republican Party should go around the country with Frank Luntz to his famous Independent leaner’s and ask them three questions. 1) Do you have any core believes? 2) Do you have any idea how your government works? 3) Why did you reward the people who hurt you in this financial crisis? I swear if I hear another one of his focus groups blather on about “he is talking about what I care about” not what he is going to do about it I am going to scream. My favorite quote from those annoying people is “he was rude” to poor little Mr. Obama. Senator, now President-elect is going to give them things. Why they were not concerned about how Joe Wurzelbacher was treated or Gov. Palin was treated? I will end with a plea. Please take a look at where this country is going, where you want it to go and then ask yourself if it is everybody else’s job to get you a job, buy you a house, pay for your healthcare, and yours or your children’s college education.   

Listen to wiseone. I was listening to Rush Limbaugh Friday and a caller asked if the big tent was what we wanted. Rush said (paraphrasing) that they can vote for us, but no they are not conservatives. The conservative movement is about low taxes, LIMITED Government, and an unwavering respect for life. The Republican Party is for one but not the others. We are for all of them.