The Erosion of Our Rights

There are movements underway today to erode our rights as individual citizens. The founding fathers of our great nation setup individual rights to protect us from the tyranny that they saw under King George of England. However, they are being slowly chipped away.

• 1st Amendment (Right to Free Speech) - They want to restrict the conservative commentators because they feel like they are not getting fair airtime. The liberal radio network Air America is not failing because it could not get equal time. It is failing because nobody listens (i.e. poor ratings which means no ad revenues). Instead they have to push their agenda through tax sponsored outlets like NPR.
• 2nd Amendment (Right to Bear Arms) - The Democrats in recent years have favored restrictions or bans on arms being owned by law abiding citizens. Instead of punishing those who abuse the right they would rather restrict the freedoms of others.
• 4th Amendment (Unreasonable Search and Seizure) - The federal government continues to increase the monitoring of communications and monetary transactions in the name of homeland security.
• 5th Amendment (Right to Own Property / Eminent Domain) - The government cannot take property except for public use and not without fair compensation. Here in Florida, local Democratic controlled city and county governments have taken personal property away (or attempted to and failed in courts) in the name of economic renewal. The intention of the 5th Amendment is only for schools, highways, military installations - not for building condos or office buildings.

We have also seen amendments themselves restricting rights of individual (18th amendment outlawing alcohol consumption that was later repealed) and expanding the power of the federal governments (16th amendment allowing the collection of income taxes).

We have also seen "judicial legislation" through controversial decisions like Row vs. Wade (1971) legalizing abortion. The role of the courts is to enforce and interpret the law - not make laws. That is for the legislative and executive branches under the authority of voters.

I will agree that some of these "rights" are controversial. However, there is a dangerous theme going on. Proponents of big government are pushing this agenda to erode the rights of the average person and pander to the special interests and elitists that want to re-shape America into their own views. This is primarily being done by the Democrats but a number of Republicans are guilty of this as well.

The next president will probably be naming two justices to the Supreme Court. They will also have the ability to continue how the federal government interprets our rights as citizens. It is important that we elect someone who will protect the rights of the majority - not the minority and special interests. Let's stop the erosion before there is nothing left.

What Is Going On With Our Economy (Part 3)

Congress is at an impasse. That is a surprise.

The supposed deal to bail out financial institutions fell apart late yesterday afternoon and Congressional leaders worked late into the night to try and figure something out.

Democrats are blaming the Republicans on reneging on an agreed deal. Republicans counter that senior leaders were not part of the deal. Even as this deal came together we saw the politics enter in.

Here are some of my concerns with the deal:

• Make Wall Street (the company and their stockholders) take on more responsibility in the bailout. The current deal is a free gift for mistakes they made.
• Prevent tax payers from bearing all of the risk / failures without any positive benefits. If we do bail them out and the companies become profitable again, then the federal government should share in those profits for the risks put out.
• Keep the US Government out of the mortgage business. The idea of a new super Fannie Mae continues the trend of expanding the federal government.
• Keep the pork barrel spending and special interests out of any resolution. Its needs to be a deal about the financial crisis.
• Washington (Capital Hill and the White House) need to figure out how they let this happen. The US Treasury, Senate Finance Committee, and others should have seen this coming yet they did nothing to prevent it.
• The company leaders (not just the CEOs) who created this mess should be fired if they have not been already. Corporate boards should also be held accountable. Shareholders in these companies should strongly consider voting against their re-elections. (I will for Wachovia which I still own.)

Some people are calling for government to do nothing - let the companies fail. I agree in principle but I am afraid that this would have a worse impact on the economy than a bad bailout deal. The capital markets would be in gridlock. Individuals and companies would not be able to borrow money which would further suppress our fragile economy.

The bottom line is that Congress needs to lock themselves in a room (that includes Paulson and Bernacke) and not come out until something reasonable is determined. Aides can just slide the pizza boxes under the door until they are done.

The taxpayers deserve better than this. A $700B bailout is a tough number to swallow. People are speaking out about it and Congress is now nervous about how the public is perceiving them. People are afraid this is going to increase their tax burdens for years to come.

On a related note Washington Mutual is no longer. The FDIC shut them down and JP Morgan took them over yesterday. This may not be the last deal.

Socialism: The Real Democratic Agenda

1: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods
2 a: a system of society or group living in which there is no private property b: a system or condition of society in which the means of production are owned and controlled by the state
3: a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done
Webster Definition of
Socialism

The Democrats ultimate agenda is socialism - it is plain and simple.

Joe Biden called on Americans to do their patriotic duty and pay more taxes. He said that their plan was to increase taxes on people making more than $250K a year. That might sound okay to the average person who makes less than $100K but this has serious potential impacts to our economy.

Barack Obama has said basically the same thing (with an additional twist). He has said that he will tax on one class and lower taxes on other classes to create wealth transfer. He is proposing more tax credits to the elderly and poor (who pay little or no taxes to begin with).

If you create a wealth transfer system like the Democrats are pushing, you will create disincentives for people to create new businesses. Existing companies will not make investments. Wealthy individuals will not provide capital (equity and loans) and will move their money elsewhere.

This means fewer jobs being created. The cost of capital (money) will increase for people borrowing money. The Democrats will then push for more entitlements for the people effected thus continuing to expand the government handouts.

We need to stand up and end the entitlement in Washington. The socialist ideals that the Democrats are promoting will not help our fragile economy - it will push it deeper into despair.

Note 1 - In the coming weeks, I will address how the Democrats are threatening our rights of owning property.

Note 2 - You are allowed to pay the federal government more in taxes if you want. Maybe the celebrities like Clooney and Damon who are campaigning for Obama should pay more in taxes if they feel that strongly about being "patriotic" like Biden said.

Marlins Season Over...

The Marlins' season ended on Tuesday night in D.C.

Many people are disappointed that they were knocked out of the playoffs. But this is far change from the beginning of the season. If you would have said that they would have 81 wins and be in playoff contention until the last week of the season, most baseball fans would have laughed.

The infield was one of the most prolific home run hitting groups in baseball history. Cantu made most people forget about Cabrera. The pitchers returning from injury (i.e. Johnson, Mitre, Sanchez) definitely gave them a spark.

Hopefully Loria and Sampson will agree to keep this team intact and give Beinfest the ability to fill some holes in the bullpen and the outfield. There are some youngsters like Maybin and Miller that could make the step up to the majors. If they do that, I will be back next season and will definitely attend more games.

We are progress with the young Dolphins and the Heat are excited to have Beasley and Chalmers. Maybe sports in South Florida is really turning around...

The Dolphins Show Us Something

The Dolphins Win!

That is something that we have not been able to say very much the past couple of years - but we could today against a team people love to hate - the New England Patriots. They did not just win - they man handled them.

We saw the Dolphins control both lines of scrimmage, play smart base offense without being too conservative, and put a new wrinkle into the plans with Ronnie Brown at QB! Brown ran three TDs with direct snaps and threw another in college style trickery that worked. The great Belichick of NE was unable to make adjustments.

The team is improved from what Parcells and team inherited. They brought in guys to control the line of scrimmage (i.e. Long, Smiley, Fasano, Merling, Langford, and Ferguson), a QB to manage the game (Pennington) and one to groom for the future (Henne). They have playmakers at RB (Brown and Willams) but need more. The WRs, DBs, OLBs, and KRs need to show more. This is what we need to get to the next level.

The Dolphins showed us something else today we did not see at all last year - heart. Soprano has them playing hard and with passion. After last week's debacle in Phoenix, I was wondering if this was going to another futile season.

We may not see many more wins this season, but Sunday was sweet.

What is Going on With Our Economy (Part 2)

I think the corruption on Wall Street — that is to blame. And that violation of the public trust. And that contract that should be inherent in corporations who are spending, investing other people's money — the abuse of that is what has got to stop.

And it's a matter, too, of some of these CEOs and top management people and shareholders too not holding that management accountable, being addicted to, we call it, OPM — O-P-M, "other people's money."

Spending that, investing that, not using the prudence that we expect of them. But here again, government has got to play an appropriate role in the stringent oversight, making sure that those abuses stop.
Sarah Palin on Fox News

The volatility we saw this past week was crazy. The US stock market had 4 days were the DOW moved up or down by 3%. Watching the London exchange go up by 8% on Friday just capped the week of craziness.

I still believe what I wrote previously about the state of our economy. I think it is fragile but it could be much worse. I think the root of the current problems exposed this week was driven by greed. (Gordon Gekko played by Michael Douglas the movie Wall Street summed it on greed - but it is still a great movie and I believe in capitalism. The former CEOs of Fannie Mae, Merrill Lynch, AIG, and Lehman should be vilified like Gekko.)

If you tried to introduce a new food product to sell in the grocery, the government has certain standards for quality and labeling. (If someone introduced a new product that was made with liver and it was 100% of your daily allowance of fat it probably would not sell very well - I would not buy it!.) The government is trying to protect the public and make sure people understand what they are buying.

This should have been true with financial instruments as well but the government let us down. People were sold mortgages they should have never received. Financial firms tried to pass off risk through credit rate swaps. In the end, risks were not clearly identified (or labeled). No one really understood who would be holding the bag if things fell apart. Now that it is falling apart, borrowers and investors both are now paying the price.

Ultimately this will lead to more government regulation (that is up for debate as far as the merit of it). We will probably see foreign governments pressure the next President into adopting a Basel like framework (like Europe has today) to asses and report risk. We (the taxpayers) will wind up footing the bill for several generations to come.

What is Going On With Our Economy

Are we in a recession? Is this another depression? Those were the questions I heard last night from a couple friends.

After the tumble the stock market took yesterday it almost feels like. I avoided looking at my portfolio last night because I knew it would be depressing. The Sun Sentinel headline this morning was "riding out the financial storm" as a comparison to another hurricane hitting the US. (Poor taste in my opinion when you turn to page 3 and see the real devastation in Galveston.)

Is our country failing financially? Are we in dire straights? I do not believe things are bad, but they are not great either. For example:

• Inflation is not as bad as other countries - we complain about 5% when other major countries struggle to keep it under 10%.
• Unemployment might be up to 6% but this is not the great depression where up to a third of the workforce was unemployed.
• People are not loosing their savings from bank failures - bank accounts, brokerage accounts, mutual funds are protected and laws are in place to safe guard them. (Granted the value of the securities has gone down but all is not lost.)
• Gross National Product (GNP) is down but still positive.

So what is next? What are we going to do (or should be doing)?

• I think the Fed will be forced to lower interest rates again in order to stimulate the economy. We can take a little inflation in order to keep the economy moving forward (growing). Some banks will need capital to stay liquid.
• The SEC should examine the acquisitions of financial firms closely to make sure that firms are not covering their tracks for fraudulent deals they made. (I am not accusing anyone or know anything but it is suspicious for failing firms to be bought for a premium.)
• I do not like regulation, but new financial instruments need to be examined and fully explained. With mortgage derivatives, the risk holder has been clouded and we are now seeing who is holding the bag. Government in general should not interfere with free markets, but they need to insure that rules, instruments, and risks are clearly defined for everyone so that it is a level playing field.
• As individuals we need to be cautious about taking on new debt, paying down what debt we do have (especially if you credit card debt), and looking at investment opportunities (Buffet, Forbes, Trump, and others start buying at the bottom of the market downswings).

Several friends work in industries effected by this turbulent markets in areas such as banking, investment management (including myself), and real estate. I have seen (and felt in my wallet) to other major corrections in the stock market (1987 and 2001). America and the markets will be fine but it will be bumpy ride in the meantime.

The Anniversary We Do Not Want

Usually anniversaries are dates in time of events that we want to remember - weddings, long time employment with a company, and historical major events like when man walked on the moon.

However September 11th will be remembered for the tragedy of terrorists attacking our country and killing hundreds of people in New York, Washington, and Pennsylvania.

I worked in the World Trade Center for about 8 weeks in early 2001. My company had acquired a company that was based in the south tower. I went there to help integrate our business processes.

As a result, 9/11 became personal to me. I walked through underground network of walkways. I rode the elevators up. I knew people who worked there. I also knew people who passed away in that tragic event. Fortunately I know people who made it out as well.

To this day I still cringe at the images of the WTC burning and collapsing. I still can not watch the movies or documentaries about the events.

One of my good friend's wedding anniversary is 9/11. I try to remember that along with the tragedy. But it is also hard for me to forget those who died that I knew.

Fair and Balanced Media?

Fair and balanced media? Hardly the case in this election (or in general for that fact).

Today's media reports (and "investigates") what they want - not what is really news worthy and important. In addition they mix editorial with news and blur the line between fact and opinion. Examples of their bias include the following:

• House Speaker Nancy Pelosi has five children but no one asked her if she is able to spend adequate time raising them. Palin on the hand has been criticized for trying to run for VP with 5 children.
• John Edwards, who was a presidential candidate, admitted an affair but denies being the father of the women's child. Mainstream media no longer considers it news worthy despite the pending outcome of the paternity test. Yet Palin's daughter Bristol in under intense scrutiny for becoming pregnant as a teenager.
• Obama's links to William Ayers have not been asked despite the fact that Ayers was convicted and jailed. Palin on the other hand was accused of dirty politics for firing her brother in law from the Alaska state police despite the fact that he is accused of tasering his nephew.
• Obama's voting record or more appropriately lack of voting record (missed and no votes) has not been brought to light. Why not? His job in the US Senate and Illinois legislature was to sponsor and vote on bills yet his track record is limited. McCain's voting record is criticized because he voted with President Bush's opinion 90% of the time. At least he showed up and voted for the majority of the bills.

There are a number of other examples from the past including Jesse Jackson's love child, Biden raising his children as a single father, to the Clinton affairs in the White House.

The news media wants two things at the end of the day - ratings (which drives ad revenues and profits) and to push their own liberal agenda. They sensationalize everything and promote their beliefs.

Now I realize that all media does not fall into this trap. There are also a small handful that fall into the opposite trap (that sees no wrong with conservatives). But I will call out 5 of the 6 major network news outlets for being biased - ABC, CBS, CNN, NBC, and PBS.

The American people will see through some of it. We are not as dumb as the media elite thinks. In the end it will probably backfire against them because the average is smarter than them.

Repair and Restoration

Isaiah 58:9-12

Then shalt thou call, and the LORD shall answer; thou shalt cry, and he shall say, Here I am. If thou take away from the midst of thee the yoke, the putting forth of the finger, and speaking vanity;

And if thou draw out thy soul to the hungry, and satisfy the afflicted soul; then shall thy light rise in obscurity, and thy darkness be as the noon day:

And the LORD shall guide thee continually, and satisfy thy soul in drought, and make fat thy bones: and thou shalt be like a watered garden, and like a spring of water, whose waters fail not.

And they that shall be of thee shall build the old waste places: thou shalt raise up the foundations of many generations; and thou shalt be called, The repairer of the breach, The restorer of paths to dwell in.

Tonight I went to see what a local group is doing for the homeless in FLL. They did not have a lot to give. There were not a lot of them. But they did give a dinner and some toiletries to 40 people. The recipients were grateful and several thanked the group on their way back out on the streets.

I looked around room at the people there. They were rough, tired, and broken. They needed a loving hand of help and the group gave it to them.

Somewhere in our society we have lost our compassion for others. Why? Where did it go? Do we feel that it is no longer our responsibility? Are we expecting the government to take care of them?

So what do we need to do? One of our pastors this past week pointed out three things in his message:

1. People need to go and get involved
2. People praying for the needs
3. People giving towards the needs

For myself, I am not sure what it exactly means. But I do know that I need to do something. I have been blessed in many ways and I believe that I need to share some it with those in need.

I spoke with the leader of the group and he said it was simple. He was not asking much of me, but he asked for the same three points that our pastor made. It is what God is asking of us in Isaiah 58 - repair the broken and restore the streets.

I am not naive to think that some are not some on the streets from their own vices. But there are people who do need help. They need a second chance.

As I was leaving, a women drove up in a beat up pick-up truck with a boy sitting in the passenger seat. She asked about the place and whether they had a shelter to spend the night. Unfortunately I had to tell her no, they only serve dinner once a week. I did point her to a place that could help her. She thanked me for the little thing that I told her. It did not feel like to much to me but she seemed genuinely thankful.

For me, I might have to go help serve dinner with them again.