And a Man's Fancy Turns To...

Enough politics! It so ruins the digestion. We will, for now, put aside our lance and shield and defer battle with the dragon. So we shall turn to fishing. This weekend we attended the Midwest Flyfishing Expo in Warren, Michigan. It was a badly needed tonic for a weekend of rain and gloom. Good exhibitions on casting & tying, and a good turnout . There was a very fine demonstration on the double-haul (we will definitely make this part of our repertoire!); we had a delightful conversation with Au Sable legend Jerry Regan, and an inspirational one with volunteers with Project Healing Waters about the efforts to use the holistic powers of flyfishing for physical and spiritual recovery for wounder warriors. We finally saw a copy of Voelker's "Anatomy of a Fisherman". It includes a superb color photo section of the fishing retreats of the 1950s Upper Peninsula. Definitely required for the library.

Remember, Comrades.

Under capitalism, man exploits man. Under socialism, it's the just the opposite.

Obama's Destruction of Wealth.

Leaving the White House's Rush Limbaugh diversion aside, there is growing opinion that the President's budget and taxation proposals are a very bad thing. Just ask Jim Cramer.

Reaganesque?

Russian President Medvedev, in a completely predictable response, has accepted President Obama's deferral of the deployment of missile defense in Poland, while declining Obama's request that Russia diplomacy be employed to stop Iran's nuclear program. Senator Charles Schumer has called Obama's initiative "Reaganesque". Hmm. Obama's blunder is more reminiscent of Jimmy Carter's whipsawing on the deployment of the "neutron bomb" in Western Europe. Carter's vascillation humiliated then West German leader Helmut Schmidt, and helped to bolster Soviet influence in German politics in the 1980s.

A Thoughtful Alternative.

Representative Paul Ryan (R-WI) presents in a WSJ op-ed an economic strategy that makes a lot more sense than zero-sum Obamanomics.

Just Plain Evil.

Robert Mugabe, leader for life of Zimbabwe, celebrated his 85th birthday on the backs of his fellow countrymen, the New York Times reports. The accomplishments of his career are impressive: he squandered international good will and any chance of racial accord by race-baiting and expropriation of land owners, through three decades of corruption and incompetence he has destroyed the country's economy, starvation pervades Zimbabwe, and the level of violence and terror he has employed to prop up his regime would have embarrassed the most ruthless apartheid goon.

Yet the international community does nothing, indeed is nearly silent on the suffering of Zimbabwe. Why? It's baffling that civil and human rights organizations, particularly African-American groups, have assumed such a low profile on this outrage.

Obama's War.

This week President Obama ended his rope-a-dope of the Center-Right and launched an attack against American capitalism. He is: (i) repealing the Bush tax cuts and raising the highest Federal tax rate to 40%, (ii) increasing taxes on the energy industry, (iii) limiting tax relief from mortgage interest, (iv) reinstating the Death Tax, (v) raising capital gains taxes, (vi) raising taxes on successful small businesses*, (vii) increasing federal intervention in the health care industry, (viii) instituting a carbon cap and trade program on American industries, and (viii) dismantling private enterprise student loans. He capped off the week with the destruction of private capital investments in banks.

Wall Street, the source of investment capital needed for recovery, aborted productive uses of finance in favor of "Obama-proof" portfolios: more treasuries, gold, cash, and international stocks poised to benefit from an unfettered Chinese recovery and protected from Obama wealth-redistribution.

The Administration and Congers are fanatically devoted to the notion that The Government will grow us out of this mess, as if they have discovered a perpetual-motion machine.


*Example of such a small business: owner of three convienience stores. A good store will, after expenses, net the owner about $100K per year in profits. Such a store also pays two additional employees $85K in wages and benefits.

Tragedy.

Elie Weisel has been wiped out by Bernard Madoff.

What is the Truth About the Banks?

The fear on bank nationalization is rampant, and threatens to become a self-fueling conflagration. Yet two interesting articles caught our eye that questions whether such a step is necessary at all. First, the staff at Miyanville note that banks are more than capable of writing down - over time- their current large losses against future revenues.Second, the IBD editorial board reminds us that 90% of all banks are sound, and that lending rates are not catastrophic.

Obama Revealed.

President Obama spoke to the Congers last night, and made it very clear that the spending has only just begun. In this first year of his tenure he intends to tackle (universal) health care, expanded federal support for education, and a plunge into "green" energy production. This last objective is of particular concern: the WSJ noted this morning that White House green gurus indicate that the Administration will regulate CO2 as an atmospheric pollutant under the Clean Air Act . In which we reply, in the words of Cromwell: "I beseech you in the bowels of Christ think it possible you may be mistaken". As we have learned with the declarations of vague schemes by the Treasury for the next stanza of financial reconstruction, now is not the time to further paralyze private capital investments in our economy because of fear of brave new regulations. And the President's call to action on energy conspicuously dodged a mention of nuclear power. If we are going to supplant coal-fired electricity generation, we need to find sources that can efficiently produce several hundred thousand megawatts of energy. A wind plan as ambitious as that envisioned by Boone Pickens would produce 200,000 MW. While that's a very respectable number, it's less than a quarter of our current electricity demand. Our fear is that the White House greenies will prevail in ideological purity and America's aversion to nuclear power will continue.

Town Hall Meeting with Congerscritter Schauer.

Last Friday we attended a town hall meeting, in our fair burg, with freshman congerscritter Mark Schauer (D). There were around two dozen constituents in attendance. There was a palpable tension in the coffee shop; many families in our town have their financial fortunes tied to the Big Three. In the past week the mammoth "Stimulus" Bill had been whisked through both houses of Congress and signed by the President. The pre-meeting conversations around the tables expressed frustration of citizens unable to slow or alter the course of the massive spending juggernaut. It was a clear sentiment eager to be expressed to the new representative, and hoped he would listen.

Mr. Schauer's priority, however, was not to listen, but to talk. And talk, and talk, and talk. After nearly forty-five minutes of a nearly uninterrupted monologue, some of the attendees began to shoehorn comments into what seemed to be a soliloquy.After a long lecture into the minutiae of a proposed high-speed rail in Michigan, time had run out, and many left extremely frustrated, including this correspondent.

We hope that Mr. Schauer's deafness toward the people he represents will pass with time and experience.

Why Bipartisanship?

On CNBC this morning, Senate Majority Leader Harry Reid revealed the real reason for the of GOP votes for the "Stimulus" bill: Republicans have "bet on failure". Please, Mr. Reid, don't insult our intelligence. This is not a matter of whether your opponents want the country to live or die, it's about what is the best course of action to save the greatest economic system in the history of the world.

Chris Matthews continued the (MS)NBC attacks against Rick Santelli, calling his attitude that of "Ebenezer Scrooge". Be careful, Comrade Santelli, your attitude has been noticed. You don't wan't to be called a counterrevolutionary; they shoot counterrevolutionaries.

"Scoop" Jackson She Ain't.

Secretary of State Hillary Clinton has made it clear that when it comes to dealing with the People's Republic of China, business (and bond buying) comes first. There was a time thirty years ago when some thought that such a realistic attitude be adopted in dealing with the Soviet Union. Senator Henry Jackson, God rest his soul, thought otherwise.

Daddy Lashes Back.

NBC's Brian Williams, Matt Lauer, and Squawk Box foe Steve Liesman jumped CNBC's Rick Santelli this morning on this morning's Today for his audacious and treacherous criticism of the White House's Mortgage Plan. Matt Lauer suggested that Obama's plan is the sacrifice the 92% of the non-delinquent public must make for the good of all of the 8% of the mortgage defaulters. Matt: I know plenty of families that could use the potlickings from the generous compensation from your network; just send us the checks and we'll forward them on. We are now taking bets that Rick will be heading to Fox Business Channel within the year. Indeed, it's not clear how much more dissent parent company (MS)NBC will tolerate from their unenlightened Wall Street Brat Pack. Get ready for Squawk Box with Robert Reich and Rachel Maddow...

The M Bomb.

The White House has just unveiled its plan to bailout distressed homeowners. CNBC's Rick Santelli voices the displeasure felt by many.

The Spending Trainwreck.

The United States Government has signed off on spending an additional $800B for anything and everything. The Left has been braying for government-directed "Industrial Policy" for decades, they now have their opportunity to implement it in a coherent manner...and they've blown it. The "Stimulus" is a trainwreck of directionless and unfocussed spending, driven by craven political desires for pork, patronage, and ideology rather than any kind of coherent plan to guide the repair of the nation's economy. Yet another trillion dollars to hobble our children's future. God Save the United States of America.

A Blunder?

President Obama called for direct talks with Iran during his press conference last night, and the president of Iran responded that he welcomed such a sentiment - with conditions. The sagging Iranian leader has been reinflated with domestic and international prestige - thanks to the White House.

Big Apple Cigar Retreats.

CA's Gordon Mott and David Savona seek out the cigar haunts of New York City.

Where Was This Fact Six Weeks Ago?

George Will unearths this gem:

...Rep. John Campbell, who owned a slew of automobile dealerships before coming to Congress from Southern California, has been told by a senior executive of Toyota's American operations that if Toyota were not making substantial profits from its SUVs and pickups, it could not continue making the Prius, which it sells at a loss. The federal government, which is in a position to dictate to mendicants, wants Detroit to make more cars like the Prius and fewer profitable vehicles. This is a novel business model...

Cheese for the House!

The House of Representatives passed their version of the "Stimulus" Bill, a $819B smorgasbord of spending. Originally peddled as primarily an "investment in infrastructure", the bill has - of course - been overwhelmed with a huge amount of irrelevant spending. Some may argue it's all necessary; if so, let the Congers vote on the proposals individually so that they can each be examined for their merits. To us it appears that most of the spending is, as Robert Samuelson argues, not "stimulative".

John Updike, 1932-2009.

Chronicler of the Middle America in the second half of the twentieth century. Here is an audio of Updike, expressing concerns about the transformation of the written word on paper to infinitely permutable ensembles of electrons.

Updike's contributions to The New Yorker have been assembled here.

Change on "Torture".

Candidate Obama walloped the Bush Administration on "torture", redefined during the extended presidential campaign as any interrogation tactic involving physical coercion, like sleep deprivation. Team O pledged to end any such type of tactic when they assumed presidential power. Now Andrew McCarthy observes (in an interview on Bill Bennett's radio show), that President Obama may reserve the right to use interrogation tactics that include physical coercion, for so-called "ticking bomb" cases. It's refreshing to see some common sense finally take hold with the new powers, but my, how change looks like the same.

Holy Week.

NPR, Gary Keillor, The Nation editor Mistress Katrina Von Hoofenderfloogle, Kief Ubermann and the We Are the World Usual Suspects are getting the vapors in anticipation of the most holy event of our lifetime: the Installation of Pope Barack I. Keillor on a recent Prairie Home Angst, retold the Gospel story of the sojourn of Mary and Joseph to Bethlehem as that of Michelle and Barack to Washington. We agree with the National Review, such an analogy is just creeeepy. Meanwhile, Elizabeth Alexander, chair of African-American Studies at Yale, has been tapped to deliver the Inaugural Poem. According to a background piece at the Atlanta Constitution-Journal, her credentials are steeped in art and politics , the politics of art, and the art of politics. Ahh, shall we close our eyes and swoon in rapture to verses of neo-Socialist Realism? The baking of bread as a political statement? A Man and His Tractor? Will the cornicopia of ethnogendercreeds be given each a moment in the sun during the soliloquy? We'll have a big box of Kleenex on hand to soak up our tears of joy. We will also have box on hand to soak up the tears of grief as the Super-Colossal Extravagonzo Stimulus Cheese Wheel is rolled down Capitol Hill.

Make Every Vote Count...for Al.

The snide Al Franken has successfully upended the result of the November election, with a recount in Minnesota that appears to have broken in favor of him in every ruling. Hmmm...Just call him Senator "Landslide Al"?

A Background Fact on Gaza.

Since Israel withdrew from Gaza in 2005, Hamas has attacked them incessantly, firing over 6500 rockets. What did these idiots think would happen?

An Early Warning.

It will be of little avail to the people that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man who knows what the law is today can guess what it will be to-morrow.

--James Madison (likely), Federalist No. 62, 1788
(courtesy Patriot Post)

The Blockbuster Events of 2008.

Our top four picks for the most universe-disturbing* stories of the year:

1. The massive deleveraging of the financial system, the huge devaluing of most financial assets, and the long-coming cardiac arrest of a credit-gorged economy. It was fun while it lasted, eh?
2. President-Elect Barack Obama. Hooda thunk it?
3. Success in Iraq. Although you could have missed it for the lack of news coverage.
4. Turning 50, and the associated psychological seismic activity.

*And indeed there will be time

To wonder, “Do I dare?” and, “Do I dare?”

Time to turn back and descend the stair,

With a bald spot in the middle of my hair —
[They will say: “How his hair is growing thin!”]

My morning coat, my collar mounting firmly to the chin,

My necktie rich and modest, but asserted by a simple pin — [They will say: “But how his arms and legs are thin!”]

Do I dare Disturb the universe?

In a minute there is time

For decisions and revisions which a minute will reverse.

- T.S. Eliot, from the Lovesong of J. Alfred Prufrock

Rejoice!

Isaiah 61:10

I will greatly rejoice in the LORD, my whole being shall exult in my God; for he has clothed me with the garments of salvation, he has covered me with the robe of righteousness, as a bridegroom decks himself with a garland, and as a bride adorns herself with her jewels.

Have a Blessed Twelve Days of Christmas!

Fear Not!

It is only four months to Opening Day. In the meantime, let us tie.

Impressionable Elites.

This is the term used by Mark Penn, author of "Microtrends", to describe the very busy, wealthy and powerful who can no longer exploit information directly, but now rely on gut and impression, friends' views and opinions, and the judgement of others. Penn suggests that the behavior of this group was an essential catalyst for the Madoff debacle.

Motown, Y'all.

Newsweek tells the story of Detroit South.

The Pope Salutes Astronomy.

Pope Benedict XVI praised the work of scientists in commemoration of the International Year of Astronomy:

...If the heavens, in the beautiful words of the psalmist, 'tell of the glory of God', the laws of nature, which many scientists have studied over the years giving us an ever-better understanding of them, are a great incentive to contemplate the works of the Lord with gratitude".

We would not doubt that John Paul II and Galileo are now in a smiling embrace.

"Do not be afraid, Mary, for you have found favor with God."
Luke 1:26-38

Gabriel has told Mary what is to come to pass - she is to bear a son who will inherit the throne of David. Mary puts her trust in God and commits her life to his service. May we summon an epsilon of such faith and commitment to God.

Good News for Michigan Cigar Aficionados.

The Michigan Legislature failed to enact a total ban on smoking in bars, restaurants, cigar bars, and similar commercial private property. This legislation is now dead until the next Legislature is in session.

The organization Cigar Rights of America has been recently formed to help cigar smokers fight the creeping fascism of smoking bans and excessive tobacco taxes.

Academe' Now Squawking for Government Cheese.

Believe it or not, after a few decades of tuition increases well above the inflation rate, colleges and universities want even more money, claiming a hunk'o Uncle Sugar Daddy's Big Bailout Cheese Wheel.

Here's the ten year history of tuition for LSA students at Michigan:

• 1999-2000 $6335
• 2000-2001 $6515 (+2.8%)
• 2001-2002 $6935 (+6.4%)
• 2002-2003 $7485 (+7.9%)
• 2003-2004 $7975 (+6.5%)
• 2004-2005 $8200 (+2.8%)
• 2005-2006 $9215 (+12.4%)
• 2006-2007 $9725 (+5.5%)
• 2007-2008 $10,445 (+7.4%)
• 2008-2009 $11,035 (+5.6%)
• 1999-2009 +$4700 (+7.4% APR)

When are the administrators of this institution going to face reality? Why do students and their families (or the rest of us, by way of government financial aid) bear the burden, year in and year out, of the academe's dreams of grandeur?

Artes, Scientia, Veritas.

The Ann Arbor News reports that a University of Michigan professor is under investigation for hiring a female UM law student to...well, to...you know...and it got a bit out of hand. Our hallowed alma mater has reassured us, however, that there are strict rules in place to govern faculty-student romantic relationships, such as the requirement to file a "Conflict of Interest" working plan with the appropriate departments. We are much reassured.

Were So Sorry, Guvna' Granholm...

Jennifer Granholm did not make the cut as Secretary of Energy for the Obama Administration, and alas, she must trudge back the Great Lakes State and complete her second term as our governor. It's too bad she was so busy auditioning for Team O; the Detroit Three really could have used her up on The Hill to provide political cover for them as they were pilloried by the many Moronic Congresscritters. In fact, she seems to have been nearly invisible during most of the recent Big Three Crisis.

So Be It.

Tom Brokaw chastised Mr. Obama for continuing to smoke cigarettes. We say: hike up your skirt Mrs. Brokaw, and mind your own business. If the man wants/needs a smoke - and he is an adult - then he is free to puff away. Yes, there are serious health risks, and it's not our choice but his (perhaps we'll encourage him to abandon the coffin nails with a box of Punch Rare Corojos).

Tying the TARP Down.

A recent summary of the confusion about how well TARP is working, where the money is actually going, and the nearly nonexistent oversight of the program. Jim Cramer has reported that AIG is using its wedge of Government Cheese to payoff foreign banks (for credit default swaps?).

Trading Heroes for Ghosts.

Here is arguably the best song on the Golden Era of "Progressive Music". From the "Pulse" tour.

House Democrats Pelosi and Waxman Unveil New Green Vehicle!

Cheap Shots at Detroit?

In a recent column Tom Friedman blasted the "Big 2.5", re-treading the usual claims: vehicles not suited for the market, poor quality and fuel economy, poor management, and lack of innovation. He pines for an American automobile industry that works like Steve Jobs' Apple.

Let's look under the hood at some of Friedman's arguements:

Vehicles not suited for the market. The market for vehicles is complicated and fickle. It is not dictated by fuel economy alone, despite the recent panic caused by $4-a-gallon gasoline. The market is a convolution of product capability, quality, economy, safety, and style. In the early 1990s Detroit made an excellent decision about the automobile market: the SUV. A vehicle now nearly despised, the SUV met the needs of many consumers. It could carry several passengers (spouse, kids, grandma, dog) or could carry the bulky loads from trips from home improvement stores. Drivers valued the improved road visibility and the feeling of greater safety over a compact car (although "improved safety" was a dubious claim). And consumers were willing to pay the premium that SUVs imposed in fuel costs in order to acquire the benefits from the vehicle. Some of the aspects that attracted consumers to SUVs were shared by light trucks, which also enjoyed robust sales. The profit margin on trucks and SUVs was substantial, which was needed to subsidize the production of economy cars, needed to reach CAFE requirements.

The market decision to produce SUVs was so successful that the Japanese automakers, finding themselves out in the cold on trucks and SUVs, began producing these vehicles for the American market.

American cars have poor quality and fuel economy. The claim that American cars have lower quality is no longer true (for example, see this article), but the myth is now engrained into the media brain. As for fuel economy, American makers offer mid-sized cars with conventional power plants yielding 30+ mpg (highway), such as the Chevy Malibu, Saturn Aura, Pontiac G6, Chrysler Sebring, and Dodge Avenger (with the Ford Fusion at 29 mpg). American SUVs have improved fuel economy (the Chevy HHR with 30+ mpg; the Jeep Patriot and Compass in the high 20s).

Poor Management. Why then didn't the Big Three switch to a majority offering of small, fuel-efficient passenger cars as the price of oil rose? SUVs and trucks were required to offset the loss in making smaller cars - because of the 2:1 labor rate disadvantage that the Big Three have compared to the Japanese North American operations. During the SUV Salad Days, the UAW staked an uncontested claim to the "record profits": it was just a matter of choosing a strike target and getting it. The blithe notion for Detroit to produce a larger number econo-vehicles ignores the fact that they would lose money on every such car, while the Japanese builders would not.

Lack of Innovation. Please - hybrids are a Green Vanity Vehicle: even after six years of operation, a Toyota Prius will not recover its price premium through higher fuel economy. The Chevy Volt is likely to list for $35K, so it is also a Green Vanity Vehicle. For the short term it is more efficient to increase the fuel economy of the gasoline-powered engine than to plunge into a crash program to develop alternate fueled-vehicles. This is Ford's principal strategy for the next few years. One exception may be making the new fleets "flex-fuel", able to use either straight gasoline or 85% alcohol mixtures. The modifications to make most vehicles flex-fuel is quite cheap, a few hundred dollars.

Have Car CEOs be more like Steve Jobs. Lest we not forget Jobs' NeXT Cube: so innovative in hardware and software, yet so catastrophically uncompetitive in the PC market of the early '90s. Jobs has done well since then with consumers that will accept the stiff Apple price premium and its proprietary hardware and formats. There are analogies to Apple in the car industry: Cadillac, Lexus, Audi, Volkswagen, Mercedes, and other upscale brands, but to map Jobs' business plan onto car making for the general consumer market is naive.

We Are A Bank!

We at Deaddrifts have decided that if you can't fight the lurch toward socialism of our economy, you might as well fight for your place in line for the Government Cheese. Therefore, we declare ourselves to be a bank and insist we are entitled to a handout. And if this doesn't work, we will consider building cars...

But Just to Make it Perfectly Clear...

Mr. Obama will become our President, and we him success. He will need all of the support, good wishes, and prayers that Americans can muster; to quote Lincoln, "the occasion is piled high, and we must rise with the occasion." Where we find ourselves in opposition to the President, we will voice our opposition in a civil and intellectually honest manner. No brainless wailing of "Obama Taxed, Jobs Axed!" or the like will be found here. As of now it appears that ambition, namely, Mr. Obama's desire to be successful, is overriding ideology. But we shall see as the events transpire.

The Case of the Vanishing Iraq Policy Statement.

A few days ago, we mentioned the rather detailed plan that was unveiled for Iraq at Change.gov, Mr. Obama's official transition site. That page has now been removed. Amazing what a dose of reality (courtesy a presidential briefing) can bring about.

Note Bene: Wizbang reports that most of the lofty policy plans from the Obama campaign have now vanished from Change.gov. This risks making Mr. Soros angry. You don't want to make Mr. Soros angry.

No doubt over-zealous Obamites thought it was only reasonable to transcribe the campaign bombast to the honest-to-goodness we're-on-the-hook-for-this-now transition plans.

Combustible Courage.

Winston Churchill was derided by Lord Haw-Haw for possessing "liquid courage", i.e. bravery from a cognac decanter. If so, we few (we happy few?) might rally with a snifter of Remy Martin 1738. In the meantime, we have procured a good supply of Rocky Patel Rosado, Punch, Padron, and Arturo Fuente Churchills to soldier on through the winter.

Change Some Can Buy Into.

The background of some of Mr. Obama's economic advisers, and their substantial financial contributions to his campaign (found on Instapundit).

Some Restraint, Please!

We recognize that Mr. Obama is the President-Elect, and will become the new President in a few months. But that does not mean it's prudent nor tactful to establish a parallel government during the transition, complete with policy declarations. Yet, he has already done so, with pronouncements on issues that are not particularly supportive of the real United States Government.

The Parallel United States Government has articulated, in rather clear language, exactly what will transpire in Iraq in the first year: we will be skulking out, apparently without little realistic regard to the conditions on the ground:

...Immediately upon taking office, Obama will give his Secretary of Defense and military commanders a new mission in Iraq: ending the war. The removal of our troops will be responsible and phased, directed by military commanders on the ground and done in consultation with the Iraqi government. Military experts believe we can safely redeploy combat brigades from Iraq at a pace of 1 to 2 brigades a month that would remove them in 16 months. That would be the summer of 2010 – more than 7 years after the war began. Under the Obama-Biden plan, a residual force will remain in Iraq and in the region to conduct targeted counter-terrorism missions against al Qaeda in Iraq and to protect American diplomatic and civilian personnel. They will not build permanent bases in Iraq, but will continue efforts to train and support the Iraqi security forces as long as Iraqi leaders move toward political reconciliation and away from sectarianism...

There is also planned for plenty of opportunity for Iran and Syria to provide their constructive inputs.

Yes, elections have consequences, one of which is inheriting the responsibility supporting the present government while you plan for the new government. The early behavior of the "shadow government" does not exhibit this responsibility.

Sound Recall.

The Conservative Corps has been shattered on the field of November 2008. The corps' generals and their camp followers have skee-daddled. It's time to sound recall - not retreat, but regroup, carry our dead from the field, find brave and brilliant new officers, and refit to fight another day.

The enigmatic General Obama has carried the day. We salute his brilliant victory, and to the extent that his interests in governance are harmonious with our visions for the welfare of our land, we can cooperate. We'll now see whether his mind is governed more by ambition than ideology. Ambition may to temper his socialism to "socialism-lite". But how he will proceed in the details of Iraq is a total mystery.

Required reading around the campfires: "Ten Conservative Principles", by the late Russell Kirk.

Triumph of the Brain Dead.

Jay Nordlinger comments on the spirit of mindless zealotry of Obama supporters; it has manifested itself in Ann Arbor with the harassment of McCain supporters. One guesses the change justifies the means.

The Bell Lap.

It's almost here, our national political orgasm is imminent. And whatever the result of Election Night, on Wednesday morning the Sun will rise, the geese will honk as they fly south, babies will gurgle "good morning" in their cribs, the toast will pop, coffee will be poured, and America will go on*.

Of course, for the pathological types, Wednesday morning will kickoff the campaign cycle for 2012: the planning for acquring power, retaining power, hoarding power, expanding power, or to ingratiate themselves with the newly powerful. Many will forget the reasons why they sought power in the first place. Some will be awake from the religous ecstasy, and ask "now what?"

In David Lean's magnificient film version of Doctor Zhivago (arguably the greatest film ever made), Red Army General "Strelinkov" proclaims to Yuri Zhivago that "the personal life is dead" - that human existance is reduced to service to the Communist Party - and derisively asks Yuri what he intends to do by traveling to the rural backwater of Varikino. "Just live", Zhivago replies.

Whether under the rapturous beneficience of Obamism or not, we can't wait to "just live".

*Inspired by Lou Rukeyser's post 1987 Crash Pep Talk.

No Room on the Plane.

It is reported that McCain campaign has denied Maureen Dowd a seat on the campaign plane. However, the refusal was to make room for more journalists.

Too Little and Too Late?

Jake Tapper has a "wait a minute!" moment with Mr. Obama's ENORMOUS list of promises to the people. Looks like you'll be off "O-Force One", Jake; you can pick up your luggage at the Greyhound terminal.

Old Home Movies Found of Obama Baby Shower!

Look for George Soros giving the gift of gold and Saul Alinsky's gift of a copy of "Rules for Radicals!"

Not Mentioned on The Daily Show.

The Russian Navy returns to the Western Hemisphere, guests of Hugo Chavez...

Thank Heavens You're Here!

The market has tanked, the economy is going south, socialism is knocking on the door, massteria is running amok, Democrats threaten us with unbridled power, and cats and dogs are in the streets. But there is one man who can save us in this desparate hour...

I Am Bill the Terrorist.

That Genius Iowahawk strikes again!

Obama, MoveOn, and Iraq.

Here is the audio of an April 2007 Q&A session on Iraq between members of MoveOn.org and Senator Obama. Its salient content: (i) Obama's declaration of the "failure" of the then-recent surge in Iraq, (ii) his insistance that US withdrawl from Iraq begin immediately (to be completed with a year), (iii) advocacy for a multilateral negotiations on the fate of Iraq between Iraqi Sunnis and Shias, Iran, and Syria, and (iv) appreciation and enthusiasm for MoveOn.org, the folks that brought you the infamous "General Betray Us" ad.

MoveOn endorsed Mr. Obama for the Presidency of the United States in early 2008 with 70% of its voting membership.

Lest we forget.

Barney Frank's Brave New World.

In an expansive and victorious mood, Congerscritter Frank describes his goals for an undivided government: a 25% spending cut for the DoD (forcing our hand in Iraq), expanded federal support of state spending programs, and higher taxes for The Rich^® (from Commentary Magazine).

An Ignored Story...

has been the explosive growth of the federal budget in non-defense related areas: consider the inflation-adjusted growth in the following catagories in the last eight years (courtesy WSJ):

• Transportation +22%
• Community Assistance +91%
• Education +57%
• Welfare +30%

Colin Powell's Endorsement.

The endorsement substantially hurts McCain, no doubt, but it was not a surprise. We wonder what Powell thought of Obama's earlier fellow traveling with MoveOn, who called General Petraeus, a brother in arms, "General Betray-Us"?

It's very clear that Obama has been building a firewall between himself and the Far Left organizations that provided early sustinence for his campaign. One wonders if such a wall will be demolished the day after Inauguration.

Founder's Quote for Today.

There are more instances of the abridgment of the freedom of thepeople by gradual and silent encroachments of those in power than by violent and sudden usurpations. - James Madison (speech to the Virginia Ratifying Convention,16 June 1788)

Poll: What Can We Expect?

The first few months of a new Administration is when the most politically incendiary decisions are made, counting on the short memory of the electorate.

Erbitux Is Not Aspirin.

Scott Gotlieb discusses in the WSJ about the risks to the developmental drug industry posed by government-forced cost controls on new drug therapies.

An O for All!

The creepy Obama "O" has now mutated into a myriad of forms for the spectrum of Hyphenated-Americans. Is this guy comfortable with this idol worship? (hat tip to The People's Cube)

The Cult of Personality.

This clip sings for itself.

Feel Good Green.

The Instapundit noted the following article about a Tennessee man who converted his 1994 Chevy S-10 to electric power for a mere $12,000. The two dozen batteries that are used will need to be replaced in three years, at a cost of about $3000. His gasoline bill was about $5000 a year, so he breaks even in year four. He could have bought a new S-10 for less, with better gasoline fuel economy. Yes, we're being a green humbug, but this report has as much signficance to practical garage-based energy solutions as a that about a waterskiing squirrel.

Looking Fear in the Face.

Some months ago a friend recommended Minyanville for honest and fearless analysis of the markets and America's precarious financial condition. Todd Harrison, pundit-in-chief of Miyanville, has offered the following observation on the resolution of the Credit Default Swap Crisis - one that is never uttered on CNBC, CNN, or other places: "...there's not enough money to go around".

Somebodies are going to get screwed in the resolution of this mess, for very, very big sums of money. They will be left holding the bag. A member of the Harrison Think Tank speculates that the hedge funds - those with no real skin in the mortgage game but merely bought and sold lottery tickets on chance of mortage defaults will be the designated somebodies and could be done by Presidential fiat. Our sympathy for such gamblers evaporated with the recent 2000 point loss on the Dow, as the hedgers raised cash from the only source of liquidity - our 401(K)s.

Where Have You Gone, Lou?

The Great Mr. Rukeyser helped us regain our wits and morale in October 1987. We sure could use a pep talk from Heaven, Lou.

Incredible Events.

The Ford Motor Company today lost nearly 21% of its market value today. General Motors lost almost 11% of its value today.

Is Harry Shorting the Insurers?

Senate Majority Leader Harry Reid helped foment sharp selling of insurance stocks with loose talk about a possible bankruptcy of a major insurer as he hawked the Bailout Bill. First, do no harm, Dr. Reid.

Senator Coburn Gets It.

Tom Coburn (R-OK) understands the conundrum of the "rescue" legislation:

Taxpayers deserve to know that there is no guarantee this plan will work, but there is a guarantee that we will face a financial catastrophe if we do nothing. If banks continue to fail and stop lending the average American could lose their job, be unable to secure a loan for a car, home or college education, and find their life savings and retirement in jeopardy. Our economy depends on having liquid assets available for credit and lending just as an automobile engine needs oil. If those liquid assets stop flowing, our economy will be seriously damaged and will require far more costly and lengthy repairs.

This bill does not represent a new and sudden departure from free market principles as much as it represents an emergency response to congressional actions that have ignored free market principles, and our Constitution, for decades. If anyone in Washington should offer their resignation it should be the members of Congress who peddled the fantasy of free home ownership without risk. No institution in our country is more responsible for the myth or borrowing without consequences than the United States Congress.

As much as members of Congress want to find scapegoats, the root of this problem is political greed in Congress. Members of Congress from both parties wanted short-term political credit for promoting home ownership even though they were putting our entire economy at risk by encouraging people to buy homes they couldn’t afford. Then, instead of conducting thorough oversight and correcting obvious problems with unstable entities like Fannie Mae and Freddie Mac, members of Congress chose to ignore the problem and distract themselves with unprecedented amounts of pork-barrel spending...

Profile in Partisanship.

Perhaps she just couldn't help herself. Perhaps Ms. Pelosi is just so partisan and doctrinaire in her marrow, that the opportunity to take cheap political shots with a national stage provided by the House vote on the "Bailout Bill" could not be refused. Whatever the reason, given the grave nature of the crisis that has been claimed and the need for political unity to insure passage of the bill, Pelosi made an extremely foolish choice in dogpiling on the GOP. It was a embarassing display of arrogance and a moronic misjudgement of human nature and behavior.

Revealing Character, or Lack Thereof.

It seems that in any Democrat congressional leader's discussion of the financial crisis is a required divestment of any responsibility of any Democrat for the mess. Their interpretation of the responsibility for the problem seems to coincide with the 2001 inauguration of George Bush, or with the rise of the GOP leglislative power in 1995 (but abruptly ending with the recovery of that power by Democrats in 2007).

One can easily excuse this revisionism as typical politics. But this excuse debases the justified anger that Americans feel toward the extraordinary negligence demonstrated by our government leaders, in both Congress and the White House, of both Republicans and Democrats. It demonstrates a lack of character, a clear lack of comprehension of the essentials of politcal leadership.

In other words, ladies and gentlemen, cut the crap and own the problem, and maybe history will bestow a scintilla of honor upon you.

Essential Reading.

Enormous spin is being applied by the Democrat Congressional Politburo on the "causes" of the Mortgage Meltdown. Investor's Business Daily has published a five-part history of the disaster, whose genesis can be traced as far back as the late '70s. It's a story of good intentions (expanding home ownership), employing delusional economic ideas (one can loan money to people who will likely default; marketing securities based on these risky mortages), and strong-arm partisan politics (the stonewalling of effective oversight by Fannie and Freddy through the purchase of political protection).

Brace yourself against the fierce winds that will be blowing, claiming that "the private sector got us in this mess, and government will get us out".* And read the IBD special reports.


*Recent discharge by Barney Frank.

Space is Becoming Redder.

The Chinese are advancing very quickly in space technology; their current manned mission included a brief spacewalk, developing essential skills for a future lunar landing. Funded by the massive transfer of wealth from the United States for the past two decades.

No Time to Talk?

The House Republicans had enough of Barney Frank yesterday afternoon. Frank and the other congressional Democrats, prime enablers for Fanny and Freddy Mac, now insist on conditions on the "financial rescue" that are outright corporatism: bestowing stock warrants on Uncle Sam for companies that participate in the program (which will lead to expanded meddling by the government into financial markets), regulating the compensation of their corporate officers (you can have your show trials later), compulsory modification of mortages held by the government ("foreclosure prevention"), and "oversight boards". The House GOP members (and Senator Shelby) refused to be railroaded into signing on to a plan without at least a serious discussion of alternative solutions that are less costly to the public and less intrusive on the free market, and perhaps have the financial industry solve most of their own problems. We at Deaddrifts do not presume that these alternatives are necessarily better solutions, but the people of the United States have the right to have their elected leaders consider their merit over the weekend.

While You Were Worrying About Your 401(K)...

North Korea restarts its nuclear program.

Unneeded Partisanship.

The freezing of the credit markets is a deep and serious problem, and serious observers of financial issues know there is plenty of blame to heap on both Republican and Democrat administrations and congresses. Thus it is particularly sad and frustrating to see one of Michigan's delegates to the highest deliberative body in the United States, Senator Debbie Stabenow, use the crisis for partisan politics. Grow up, girl.

What it Is, Ain't Football.

49ers 31, Lions 13. The Kitties have become a parody of a football team. Thank goodness the Lions games wasn't televised in Smell-O-Vision. The Millen/Marinelli Countdown Clock stands at 11:59:59 pm.

Covering Their Tracks.

...Fannie Mae and Freddy Mac - are not facing any kind of financial crisis...the more people exagerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing. - Barney Frank, D-MA, 2003.

The Investors Business Daily has a story about the principal obstacle to timely reform and oversight of Fanny and Freddy, namely, congressional Democrats who sought to use questionable loaning by the institutions for political patronage. IBD also names the congerscritters who received the largest political contributions from the two failed lending agencies. The top five are:

• Christopher Dodd, D-CT, $133,900
• John Kerry, D-MA, $111,000
• Barack Obama, D-IL, $105,849
• Hillary Clinton, D-NY, $75,550
• Paul Kanjorski, D-PA, 65,500

It's unlikely that you will hear much of the role that either the Clinton Administration nor the Congers had in making Fanny-and-Freddy-stein. No, it will be blamed on BushMcCain.

A Momentous Week.

If Jim Cramer is correct, our country has narrowly escaped the complete seizure and meltdown of its financial system, and has avoided a Great Depression. For now. God grant great wisdom and courage to our leaders to put together an effective plan to clean this awful mess up.

It's A (30-1) Leveraged Life!

(Investment banker George Failey and his new bride Mary race back to his Fleecem Bros. office. There a frightened, angry mob has swarmed around his receptionist's desk. George smiles wanly at many of his friends in the mob.)

George: Hi Bob, Carrie, Ed...

Mob: We want to redeem our shares in the Ultra Plunge Mortgage Securities Fund!!

George: well, OK (looking at Ed), here's a form Ed. You fill that out and you'll get your redemption package in a month. You submit the package to the Fleecem Corporate Headquarters and they'll send a check after a review of your account and prorating the balance for current NAV and redemption administrative costs.

Ed: how long will that take??

George: About ninety days.

Ed: Ninety days?? I want my $100,000 now!

George: but Ed, when you signed the fund application after the reading the prospectus which said it may take from 90 to 12o days for redemptions...

Ed: I want my $100,000!

George: Ed, it doesn't work that way. Look, see Ernie over there? (points to a disheveled bearded man, who quickly dashes out the door) Well, part of your money is in Ernie's house!

Ed: What?? You gave that bum a mortgage?? He hasn't worked in two years! And that deadbeat owes me fifty bucks!

George: well, anyway...and look there's Carrie! Part of your money is in Carrie's Home Equity Loan! And she put that money right to work!

Carrie: Bought a really sick boat with it! Bastard Repo Man took it away last month...

Ed: Well, George, they can just pay you back and then you can pay me!

George: But Ed! You see that guy over there? (points to another bearded bum)

Ed: yeah?

George: We sold Ernie's and Carrie's loans to him. Twenty times. And he sold them to some British banker. Who sold them to a Russian guy. Who's in Argentina.

(Ed looks stupified)

George: but see what's happening here? We're panicking, and selling. But on the other side of town, the Chinese Government is buying!

(a hysterical man dashes into the office)

Man: Hey! The Chinese Government is giving me two cents on the dollar for my Fund shares! Come on! Let's go cash in! (the crowd moves toward the door, but George blocks their path)

Ed: well, Failey...

George: You might be able to catch Ernie and get your fifty bucks. Can you also fill out the customer survey form on our website? It'll help with my bonus.

He Can't Be All Bad?

Our "progressive" fisherfriends may become apoplectic to learn that Vice President Cheney is quite an avid and accomplished flyfisherman. Maybe it's just a clandestine program to scout out new drilling sites for Big Earl.

Financial Blackmail?

The Politico is reporting that the Dems will extract a heavy price for their "bipartisan" efforts on the Bad Debt Bailout Plan, and CNBC has reported that they are also considering the taking the plunge into corporatism - Uncle Sam taking equity shares in the distressed financial companies. So that they can be directed toward more beneficent behavior?

Lipstick on a Mortgage.

At this moment the Fed, Treasury, and Congressional leaders are meeting to put together a federal structure to assume much of the risk of the flood of bad debt associated with soured mortgages. The Treasury plan would sell T-Bills to holders of the mortage securities in exchange for them. The idea is that Uncle Sam can hold this bad debt for a long period of time until the housing market stabilizes. Taxpayers may see a profit from this move.

Unfortunately, the Dems are now circulating an alternate plan, and putting Obama's name on it (ghostwritten by Charles Schumer, Nancy Pelosi, and Barney Frank). Preliminary reports suggest the Dem plan would have the government buy and manage the mortgages outright (like refinancing them directly with debtors). It smells like debt forgiveness for overextended homeowners. And what does Obama have to do with it? Other than he is running for President, and the Dems can use it to trumpet him as the "savior of the economy", probably nothing.

It is a sobering thought indeed to realize that at this minute the US financial system rallies or succumbs on the disposition of Barney Frank.

That Winning Feeling.

Well, the Lions made it a game...for about 20 minutes.

The New Politics.

Yes, this election will be different.

P.S. - the Atlantic article, "The Wars of John McCain", penned by Jeffery Goldberg, is quite informative and evenhanded. We recommend reading it. The cover caption for the story "Why War is His Answer", is histrionic and misleading.

The Fog Rolls In.

If you haven't formed at least a tentative decision for which presidential candidate to cast your ballot, you may have waited too long. A thick, blinding, anesthetizing fog is now descending on the election, as the political parties take control of the media communications. The gases of partisan half-truths, fibs, and whoppers, belched by an unending procession of party apparatchiks on the Meatpacker Networks, obscure the voter's vision needed to answer the "Core Questions" of the election. These questions are: what are the fundamental philosophies of governance of each candidate, and which candidate has the best record of judgement, leadership, experience, and ethics? It's a short list. The answers to these questions will shape the decision-making all the other nuts-and-bolts issues. Unfortunately, it may now be impossible to discern the answers to the Core Questions.

The Return of Byrne and Eno.

One of the great albums of the late '70s was a collaboration between The Talking Heads and Brian Eno, Fear of Music. The album help to propel the Heads' to popular acclaim and to become one of the most influential musical forces of the late 20th century. David Byrne and Brian Eno have joined forces again to create Everything That Happens Will Happen Today. Wonderfully lyrical stuff.

A Proposal.

It's possible (probable?) that either GM or Ford (or both) will soon get in line for their helping of Goverment Cheese, i.e., federal bailout money. Would it be anti free-market to then require that 50% of their 2013 model year vehicle fleet be electric, hybrid, CNG, or E(M)85 powered, with an effective in-service fleet CAFE standard that would reduce gasoline consumption by 40% by 2020? There are tangible financial and strategic advantages for the government in achieving this (keeping petrodollars in the country and energy security), and consumers would not be forced to buy these vehicles. And they can pay us back over time, with E-Z terms.

Thoughts and comments are always cheerfully accepted.

Postscript: Well, Holman Jenkins strongly disagrees with such a proposal. His arguement - that CAFE standards forced the Big 3 to loses billions producing small cheap cars that consumers didn't want - makes sense to explain their problems in the '90s when oil was less than $20 per barrel. But at the current $100+ per barrel, consumers are ditching their lower mpg trucks and SUVs for higher fuel economy vehicles. The Ford Focus, for example, with 35 mpg is a hot seller right now, while F150 sales have dropped by nearly 25% this year. GM's Rick Wagner has announced that there has been a fundamental change in the market toward fuel economy, and that this change is more likely than not irreversible.

Perhaps $100 oil for the forseeable future will make CAFE standards irrelevant? A decline in fleet average fuel economy from 20 mpg to 16 mpg would cost consumers about $800 per year at $4 per gallon (based on 16,000 miles driven per year), or $4800 of additional operating expense over a six-year vehicle life. One wonders whether relaxing CAFE standards could result in a lower vehicle purchase price that would compensate for this increase in operating costs and still improve the automakers margins. Again, Jenkins' arguement does make sense in the world of $20 oil. Too bad we don't live that world.

Keith-O Gets His Comeuppance.

A big bucket of chum on the J.J. Hunsecker (well, one of the Hunseckers) of cable "news":

MSNBC tried a bold experiment this year by putting two politically
incendiary hosts, Keith Olbermann and Chris Matthews, in the anchor chair to lead the cable news channel’s coverage of the election.

That experiment appears to be over.

After months of accusations of political bias and simmering animosity between MSNBC and its parent network NBC, the channel decided over the weekend that the NBC News correspondent and MSNBC host David Gregory would anchor news coverage of the coming debates and election night. Mr. Olbermann and Mr. Matthews will remain as analysts during the coverage...