Thursday, May 14, 2009

Democrats: driving us off the cliff

Barney Frank continues to cement his hold on the title of "Most Dangerous Congressman to the Economy" as he sponsors a bill to have the Feds guarantee all municipal bonds:
"Investors are concerned about ability of state and local governments to pay off their municipal bonds, and lately, some governments have even been experiencing trouble raising money through bonds.
Congressional Democrats will soon push measures for the federal government to reinsure, help purchase and regulate municipal bonds, according to Congressional staff and industry sources...

This latest intervention would:
Create a liquidity facility through the Federal Reserve to purchase municipal bonds, much like what the Federal Reserve does with mortgage-backed and federal government bonds.
Form a temporary federal government program to reinsure municipal bond insurers. Almost all municipalities buy bond insurance because it boosts their credit ratings. The cost of the insurance is usually lower than the higher interest payments that come with a lower credit rating. If the insurer runs into financial trouble, then the credit ratings on the municipal bonds drop because there is doubt about the insurance. Government backing would eliminate that concern. ....
" Another Frank disaster

We've bailed out everyone else, now we should take over the entire municipal bond market. Just print up alot more money, its our printing presses after all. This is a bad idea for several reasons.

1. This will make all local governments that use bonds completely dependant on the federal government. Does a local government want to save millions because of the better credit rating? It will dance to the feds tune. Obama's recent tactic to force California to reverse pay cuts for its employees while it goes broke in exchange for stimulus money is a sign of what will happen if this bill goes through. Expect the federal government to place enough conditions on qualifying for such insurance that all local governments will become sub-units of the federal government. Working conditions, diversity, educational policies, salaries, and other forms of micromanagement will come from Vito and Bruno in D.C.

2. The only way the federal government can do this is to print more money on top of the trillions it will create to fund Obama's bailouts, deficit spending, and healthcare plans.

3. This creates a bogus credit rating. The feds are going to give all bonds the same level of insurance, which won't be priced for risk as the private insurers do. This will cost us even more money as it has in other areas when premiums didn't reflect risk (mortgage insurance for example).

4. This will make the Fed the only buyer of Treasuries as it will destroy the treasury market.

However, the Feds are just getting cranked up. Having learned nothing and forgotten everything of the last few years, they are about to destroy the FHA program. A homebuyer now can get an $8,000 tax credit for buying a home. The government is now going to allow homebuyers to use that tax credit for the down payment with an FHA mortgage. FHA requires a 3.5% down payment. FHA borrowers that do not put any money down have foreclosure rates that are three times as high as those that do. The number of FHA borrowers defaulting without even making a first payment is skyrocketing yet the Feds seem to think the only thing to do is to encourage the insanity to continue:
"Donovan (HUD Secretary) said the government will allow first-time homebuyers to use the $8,000 tax credit approved by Congress in February as a down payment on mortgages guaranteed by the Federal Housing Administration. To qualify for the credit, purchases must be completed before Dec. 1." More insanity

Its going to get worse.

4 comments:

Anonymous said...

We all said "NOBAMA" for a reason.

Anonymous said...

You shouldn't post this stuff KF. It will only make Hill's eyes go big thinking he can take on mountain of new debt since the federales will backstop it all. Then he'll go to the Council, including Weill since he's endorsing Crisler, spout a bunch of mumbo jumbo, glaze their eyes over, and voila he'll have an approval for more long term debt.

Anonymous said...

Hey, and while we are at it, instead of paving Jackson's near third-world streets let's burn some money on a spanking new boat ramp on the Pearl River. Wouldn't that be a wise, wise decision!

Hookah said...

this sounds like a good time to build a civil rights museum, civil rights trail, civil rights park, civil rights memorial, civil rights school...I don't know something to do with civil rights.



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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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