Economic Recovery on Tax Day 2010? In The 4th Year of Democratic Control Of Congress – Unemployment And Home Foreclosures Continue To Soar

“The worst economy on our lifetime” screamed the Democratic political ads back in 2005 as we moved towards the 2006 election when the Democrats took control of both Houses of Congress.

After winning control of Congress the Democrats acellerated Government spending and the reckless mortgage practices of Fannie & Freddie.

The month before the Democrats took control of Congress in November 2006 the National unemployment rate stood at  4.4%.

The aveage unemployment rate during Bush’s 8 years as President was 4.8%.

Unemployment stands at 9.7% today (04-15-2010) and 1st time unemployment claims continues to set records and remains above 425,000 first time claims, week after week. (Jobless Claims Rise to 484,000 First-Time Claims, Associated Press: Jobs are still hard to come by as first-time requests for jobless benefits rose to 484,000 last week. ) 

Mortgage foreclosures continue at a record pace. (Foreclosure Rates Surge, Biggest Jump in 5 Years.  Associated Press: A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace. )

Nearly two years ago Obama launched his $75 Billion Dollar mortgage program during a speech in Nevada. The President promised his program would help 9 million American Homeowners. To date less than 100,000 familes have been helped at a cost to taxpayers of more than $1 million per mortgage. 1 out of every 33 houses in Nevada has received a foreclosure notice in 2010. In a normal suburban neighborhood that means 8 to 10 houses on every street are in foreclosure. In November 2006 one out of every 389 households in Nevada were in foreclosure. 1 in 33 versus 1 in 389?

Nationwide, one home in every 759 was in foreclosure in November 2006, and that number represented a doubling of the number in foreclosure in 2005 (1 home in every 1500 in 2005 – but would Congress listen when the Regulators warned about Fannie & Freddie – heck no – the Congresspeople claimed the “Regulators” findings were racially motivated and biased …. Congress played the race card rather than face facts). How does the 2006 foreclosure rate of 1 home out of every 759 compare with today? “In all, more than 900,000 households, or one in every 138 homes, received a foreclosure-related notice, in the first 3 months of 2010, RealtyTrac said. The firm based in Irvine, Calif., tracks notices for defaults, scheduled home auctions and home repossessions”.

For every 1 home foreclosure in 2006 there are 6 home foreclosures in 2010. 

At the current rate 9 million homes will face foreclosure by 2012.

Didn’t the Obama Adminstration tell us that an economic recovery was dependent on a recovery in the housing market?   Wait a minute, wasn’t an economic recovery dependent on the auto industry? , or pension relief , and of course, we can’t have a recovery without a Government take over of health care …….     

As the Democrats “feed” the Government with your tax dollars it continues to grow and as Government grows so does the unemployment rate and the number of homes in foreclosure ……\

The Democrats have been leading us down this path since 2006 …… now they are running down that  path at full speed ……. running with their eyes closed and at full speed …..

By the way …. has anyone else noticed the strange coincidence that seems to occur month after month …..  that the Administration saves or creates just enough jobs that when the number of jobs “saved” is combined with the “number of unemployed Americans who give up looking for work” – that the unemployment rate remains constant. Week after week, we have 400,000 plus new unemployment claims and yet the unemployment rate remains stuck at 9.7%.

Yeah, I believe it is just a coincidence.

Wait, let me guess …. it is all George’s fault ……….. George was in office for 8 years and the Democrats have been “in charge” the last 4. Yeah, blame it on George ….. don’t take any responsibility but please admit the obvious – you’ve been in charge the last 4 years and things have gotten a heck of a lot worse …..

Congress, The Tea Party and Government Regulation: Congress Plays The Race Card Again

The familiar charge of racism levied by our esteemed Congress against American citizens freely associating with the Tea Party Movement. Watch the video below as the Democratic Congress plays the race card against the Government Regulators charged with overseeing Fannie Mae and Freddie Mac.

The financial collapse had little to do with greedy bankers and great deal more to do with greedy politicians who failed to do their jobs. Watch the video as the Congresspeople disparage the Government Regulators who discovered and reported on Fannie & Freddie’s reckless deals …. clearly claiming that the Regulators findings were racially motivated and inaccurate …. well, we all know otherwise today.

As for the need for additional regulation … what good will it do when Congress ignores the Regulators findings?

As to new regulation …. it isn’t necessary …. lets start by enforcing the regulation that is already on the books and lets expand Sarbanes Oxley ……. watch the video ….. Fannie & Freddie are not subject to Sarbanes Oxley! Why did Congress allow this exemption? Isn’t it obvious? Watch the video and then contact your Congressperson and let them know how you feel about Congresspeople playing the race card!    



Can you hear the hatred in the Congresspeople’s voices when it was suggested that the GSE’s (Fannie &amp; Freddie are the GSEs) were making horrible loans and it needed to stop! 

How did the reform get blocked ?  You need 60 Votes to pass a law in the Senate – Democrat Senator Christopher Dodd and his Democratic colleagues blocked the reform of Fannie &  Freddie that could have prevented the Crisis.

The following Articles describe the role of “political ideology” in the Financial Crisis – How Politics & Big Government fueled the crisis:

Professor Stan Liebowitz: “The Real Scandal” style=”color:#105cb6;”></span></a></p>
<p><strong>John R Lott, Jr</strong> : <strong>Analysis – Reckless Mortgages Brought Financial Market To Its Knees</strong> <a href=”

Professor Thomas J DiLorenzo: The CRA Scam and its Defenders:

John R Lott, Jr : Analysis – Reckless Mortgages Brought Financial Market To Its Knees,2933,424945,00.html

Update: Waxman Cancels Obama Care Hearings – How Embarrassing – Waxman hadn’t read Obama Care after all

Obama Care passes and within hours of the law being signed by the President reports begin to surface from American businesses about the unintended costs. Billions in hidden costs that will mean jobs and kill the economy.

ATT reports that Obama Care will cost the company $1 Billion dollars in the 1st 13 weeks.

The list grows rapidly, the bill will cost Catapillar $100 Million in the 1st quarter, , John Deere Company announces $150 Million 1st quarter costs,, AK Steel, Valero Energy, Verizon and 3500 other Companies follow suit and announce hundreds of billions in  unintended costs associated with Obama Care. . Medtronic warns of a possible 1000 layoffs. Verizon warns retires it may have to cut retiree health care benefits.

Stop this! This must be stopped! Stop it now, shouts Representative Henry Waxman, Chairman of the House Government Reform and Oversight Committee. People can’t be allowed to report about the huge financial burdens this new Health Care plan is creating ….. they must be stopped now …. Stop it! Stop it! Stop it now, shouts the Chairman.

Chairman Waxman thought and thought and thought and then he knew what he would do …. make these companies appear at a Congressional Hearing and answer his questions …… so he sent out letters …..

What was that reference to the SEC or Security and Exchange Commission? Waxman wrote, “ATT stated in its March 26, 2010 “filing” with the Securities and Exchange Commission that it intends to take a charge of approximately $1 billion in 2010.”

A filing? What does he mean by a filing?

A ”filing” is simply a “report”, in this instance a report mandated by Waxman and Congress itself.

In 2002 the House of Representatives and the U.S. Senate overwhelming passed a law called the Sarbanes – Oxley Act, or SOXs as Congress calls it.

What do I mean by “overwhelming passed”, well the law passed in July 2002 by votes of 423 to 3 in the House of Representatives and passed in the Senate 99 – 0. What do they mean when they say “bi-partisan”? Sarbanes-Oxley was bi-partisan.

What does Sarbanes-Oxley mandate?

The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation’s securities markets

Specifically, “Title III consists of eight sections and mandates that senior executives take individual responsibility for the accuracy and completeness of corporate financial reports. It defines the interaction of external auditors and corporate audit committees, and specifies the responsibility of corporate officers for the accuracy and validity of corporate financial reports. It enumerates specific limits on the behaviors of corporate officers and describes specific forfeitures of benefits and civil penalties for non-compliance. For example, Section 302 requires that the company’s “principal officers” (typically the Chief Executive Officer and Chief Financial Officer) certify and approve the integrity of their company financial reports quarterly”.

Quarterly reports? To be filed with the SEC? When is the end of the 1st quarter of 2010? Today, March 31, 2010? So the reports Waxman writes about were filed all of 6 days early? The reports, as Waxman writes, were filed on March 26, 2010. Shame, shame, shame – the Companies completed filings required by a law passed by Congress. 

Let me see if I get this.

Congressman Waxman votes on and passes Obama Care without reading what he is signing or understanding what the law does. Waxman doesn’t know about the billions in taxes in the “new” health care law? Then why did he vote to pass the law?

Waxman, who has been in Congress since 1975, particpated in passing Sarbanes-Oxley. Wanna bet he didn’t read that law either?

So, Waxman passed the law raising billions in new taxes and he also passed the law that requires American Companies to file reports with the SEC outlining their business expenses and expected profits and to report these things on a quarterly basis under penalty of criminal prosecution.

So a guy who passed the law that requires the reporting and the same guy who passed the law that created the taxes being reported on, calls a hearing …. to what ….. prevent the required reporting.

What a waste of time and money – no wonder we have a 20 trillion dollar national debt! (It isn’t quite $20 trillion yet – but by the time I fininish typing it well could be $20 trillion).

Does anyopne really think this guy is smart enough to solve the Country’s problems or is he one of the group that is creating the problems that is ruining the economy and costing us millions of jobs and home foreclosures.

Sarbanes – Oxley reporting is “apolitical” or without politics. Accountants complete the reports using Government designed and mandated report formats ….. The SEC reads the reports, the IRS reads the reports and investors read the reports – they are not secret reports they are “public reports”.

Can’t Waxman read and understand the reports he created – he helped pass the law and he doesn’t understand the reports it requires.

Congressional Hearings? What a waste of taxpayer money. Waxman will do anything but take responsibility … responsibility for the economy, for the Housing mess, for foreclosures. Having hearings over Sarbanes-Oxley “filings” makes as much sense as having taxpayers report for hearings when they file their taxes and report that they owe money and mail in their checks. The Sarbanes-Oxley reports – report that the Companies will owe more in “health care taxes”, taxes that will really be paid for by the retirees receiving the benefits.

Waxman has been in Congress for 35 years. The bottom fell out of our economy after he and fellow Californian, Nancy Pelosi, took over leadership positions in the Democratic Party

Waxman represents a District in California that includes Hollywood. Prior to coming to serve in Congress he was a State Assemblyman in California.

What Waxman helped do to bankrupt California, he is now trying to do to the whole United States.

Waxman’s theories didn’t work in Califonia, they won’t work in Washington.

The “change” mandated by Obama Care hurts the retirees, not the Companies invloved.

Obama lied – he said you “could keep the coverage you have” and then he taxed the Companies for giving you the coverage you earned.  

We were not suppose to learn about this …. Sarbanes-Oxley had the unintended effect of bringing these changes out into the open

UPDATE: 3500 Businesses report $250Billion in “hidden costs” – How many jobs will that mean?

April 15, 2010: Waxman Cancels Hearing To Grill Companies On Tax Hit From Overhaul

Arcane accounting rules don’t usually make for Congressional fireworks. But we were really looking forward to a scheduled clash next week between Rep. Henry Waxman (D-CA) and a bunch of companies that said the new health law is going to cost them big time.

Alas, the hearing was cancelled. How come? When congressional staffers took a look at the companies’ books, they concluded their financial filings making provision for higher future taxes were legit.

AT&T, Verizon, Caterpillar, and Deere & Co. made waves when they informed investors and the Securities and Exchange Commission that they would take big hits because the health law eliminates a tax deduction on federal subsidies that help defray the cost of drug benefits for retirees.

Heavy equipment maker Caterpillar said it would take a $100 miilion charge in the first quarter of this year. AT&T said its charge would amount to $1 billion.

Waxman didn’t buy it, launched an investigation and sent letters to Caterpillar and the other firms demanding an explanation. Now, the accountants say the companies’ charges are by the book.

Waxman is such an embrassment – didn’t read the law before he voted on it and then acted like an ass by scheduling the hearings in the first place.

There are competent Liberals out their that the far left could elect to  public office – why does the far left keep electing clowns like this guy.

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