TARP prevents the sky from falling

Some people think that Wall St is the entire US economy. It's an easy thing to believe if you work on Wall St. For instance, Henry Paulson, Bush's secretary of the treasury was a long timer Wall Streeter, prior president of Goldman Sachs. Or Ben Bernanke, chairman of the Federal Reserve, academic whiz kid specializing in the history of the Great Depression and prior head of the New York Federal Reserve Bank.
Two senior guys, steeped in Wall Street saw the sky falling in October of 2007. Lehman Brothers went bankrupt, AIG ran out of money, Merrill Lynch (remember them?) went bust and got bought. These two guys feared that failure of the big boys would bankrupt everyone else on the Street. Street trading is incestuous, everyone trades with everyone else. If the biggies go bust and default on their debts to the smaller players, the small guys might go bust too. To Bernanke and Paulson, widespread failure on Wall Street might wreck the US economy and trigger off Great Depression 2.0.
So, being men of action, Paulson and Bernanke went to the Democratic Congress and said in effect, "The sky will fall on Tuesday". Congressmen believed them, and $750 billion TARP was passed to bail out the losers.
The alternative was to let the more foolish Wall St players to go broke as a warning to others. They tried this with Lehman Bros, and it was scary.
With hindsight, I think we should have let more Wall Streeters, the ones that didn't (still don't) understand the difference between gambling and raising capital to finance economic expansion, go under. It's clear that a lot of Wall Street business, mortgage backed securities, credit default swaps, and secondary mortgage trading is pure gambling. And I see no reason for taxpayers money, my money, to bail out gamblers who go bust. The economy doesn't need gambling.
Back three years ago, it was a harder call. Seeing famous old time Wall St firms go bust was scary and the urge to "do something" was strong. So something was done. The downside is everyone thru out the entire world now believes that the US government stands behind all the big Wall St firms. Which allows those firms to take bigger risks and borrow more than if lenders worried about them going broke ("counterparty risk" they call it). And makes us taxpayer liable for humongous debts everytime some Wall St executive makes a dumb bet.

Ask the right questions

The TV news is going crazy with the California missile launch story. They have been quoting the Navy, the Pentagon, NORAD, Boy Scouts of America, just about anyone, saying "We don't know nothing".
Questions they ought to ask.
1. Was this launch detected on radar?
2. Was the launch flash seen by missile warning satellites?
3. What is the predicted impact area of the warhead?
4. Did the payload achieve orbit?
5. What was the launch position? And when will we have ships and planes there?

Of course, a bunch of klutzy J school graduates wouldn't know any thing about it.

Waiting for "automatic" tailights to turn off

Yesterday, a dark and rainy day, I parked the Merc and started for the store. Then I noticed the car lights were still on. The car was being helpful, leaving the lights on long enough to get to the house. Except, fifty years of experience was saying, and saying loudly, you-left-the-lights-on-and-the-battery-will-run-down. So, I stood there, in the rain, waiting for the "automatic" mode to turn the lights off. Just to make sure the lights would really turn off.
Somehow, "automatic" is not improving my quality of life. I'm going back to "Off-Parking-Headlamp" control.

Town truck salted my road this morning

The true start of winter, sanding, salting, and plowing. It's starting early this year.

RINO sighting

Charlie Bass was on NHPR this morning. He thinks global warming is a problem and something oughta be done about it. Perhaps not Cap and Tax. Maybe an "Alternate Energy" program will reduce carbon emissions.
Arghh. The election is only 4 days past and Charlie is taking his eye off the ball. The real threat to our well being is the Federal budget deficit, not global warming. "Alternate Energy" means spending money on stuff that doesn't generate real power. It's ethanol, and windmills, and solar cells, none of which will keep my electricity on thru a cold winter night.
Whereas continued Federal deficits of the Obama size will destroy the worth of the dollar in just a few years.
Let's get real here.

So what do the Republican do now? Pt 2

Jobs, Jobs, and more jobs. Step one in the more job operation is to bring some stability to government policy. The private sector of the economy is waiting for the other shoe to drop. We have to stop that. Republicans should make it perfectly plain that there will be no new taxes, no new regulations, no more bailouts. The house ought to repeal Obamacare, just to make a point.
National debt is destabilizing. The current level is unsustainable for more than a another year or two. Everyone knows that. As long as everyone, business, consumers, and investors see the US dollar driving off a cliff next year, they ain't gonna create job one, they are running for the exits. Why do you think the price of gold is soaring?
Where do we cut? Healthcare. We spend 19% of GNP on healthcare. That could be cut in half and everyone would get all the health care they need. Every other country in the world manages on 10% of GNP and so can we.

So what do the Republican do now?

I suppose number one duty is to prevent the lame duck session of Congress, that will get going shortly, from doing any more damage. Despite the election, the old Congress remains in power until next year. The democrats will surely call a lame duck session to pass as much stuff as they can before next year gets here. Cap and tax, card check, appointment of democrats to every vacancy, more Obamacare, tax hikes, and who knows what else. Hopefully the Senate Republicans will be able to stop all or most of it.
Then next year, with a solid Republican House, what should the Republicans do? The house can pass anything it likes, but the Senate Democrats will be able to stall it, and the President can veto it. The Republicans have to convince the country that they are serious about cutting spending and getting the economy moving if they want to win in 2012. If the Republicans just vote thru things in the House and have them die in the Senate, or get vetoed, the public ain't gonna like it. And they will remember in November. The public doesn't care why nothing happens, they will turn the rascals out in 2012 just for doing nothing.
So what can a Republican house do that works, given a hostile Senate and executive?
For openers, they could vote down pork. For instance, the periodic "Farm Bills" lavish our tax money on farms largely owned by corporations. There are few family farms left, and not enough family farm voters to make it worth the cost of the farm bills. Same goes for the "Highway Bills" that benefit road contractors and real estate interests, and the "Energy Bills" which subsidize the oil and gas industry.
Tighten up, or even better, kill entirely, earmarks. Congressmen love earmarks because they act as bribes or payoffs to supporters. Voters hate them because it's pure waste money. Voters are more important to re election than paid off supporters.
Refuse to pass omnibus spending bills. Each executive department (Defense, State, HHS, Energy, and so on) get one, separate, budget bill. If the bill fails to pass, that department can no longer write checks. This way the voters and the newsies have some idea of how much money gets spent on what. An omnibus spending bill for the entire federal government is so damn big that nobody can figure out how much is going where. Break it up into smaller pieces and it becomes manageable. Divide and conquer still works.
Reduce appropriations for economy killing agencies like EPA. EPA was created to clean up airborne smog. That's been accomplished, the skies over our cities are blue again. They used to be yellow. Now EPA is full of bureaucrats trying to stay employed by making red tape to hinder economic growth.
Find some utterly worthless government operation and shut it down completely, lay off all the employees, sell the office, and burn the files. That will generate a flood of favorable press, AND scare the bejesus out of the rest of the bureaucrats. A scared bureaucrat is a good thing.