Blessed with friends on the other side

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This post contains excerpts from an April 10 e-mail response to a dear friend of mine (edited for emphasis and anonymity). 

“Mortimer,

I’ll say hello to the guys for you and I’ll be thinking about you this evening.

As for politics, yes, we tend to gravitate toward sources that share our views.  However, I also read the New York Times Op-ed pages and on occasion watch MSNBC.  I suppose you watch Fox on occasion and I know you read the WSJ – so good for both of us.  We try.  The state-sponsored education you cite that we both benefited from, came largely from our parents' sweat equity – translated into tax dollars – that funded the University of Wisconsin system. True, my friend. But, I'm not arguing for zero taxation, or zero government involvement, in our lives just less of each. 

When Progressives argue in favor of entitlement programs, they'll sometimes cite Social Security (under-funded as it is) to bolster their case. They'll ask, “Well do you think Social Security is a Socialist program too?”  

The bone of contention, gets down to whom you trust with your money.  Progressives wish to give more of it to government because they believe it helps society. Others say....

"I don’t trust you because of your history.  Not only do you choke economic growth with your tax and spending policies, but your programs fail and are fraught with waste, fraud and abuse."

Of the millions of foreclosures we've seen during The Great Recession, I believe the majority were assumed by reckless borrowers or cheats who had no business assuming those loans.  They lost “their” homes, tanked the market and made the climate more difficult for honest Americans who now - despite their best intentions - remain shut out of the market, perhaps for years.

A primary cause of our trouble was state-sanctioned, predatory borrowing that the Left now calls predatory lending, because their munificent homeownership scheme blew up. 

Wealth redistribution is the Excalibur sword of most Progressives, Mortimer.  Howard Dean admitted as much recently.  Their vision is not what made this country great and what’s more, all the anger you see out there coming from good people – will not fade away.

I deplore violence and lawlessness and I will not partake in it, but I fear that with the warmer weather and a relentless Progressive in the White House, you’ll see things boil over this summer.  I hope I am wrong, but things are going to get uglier because many see their way of life at stake - and a revolution of sorts, is already underway.  How many Americans can take another 2+ years of “hope and change?”   Is there not palpable anger and frustration is among the Right and the Center?  It's not just the GOP or John Kerry critics -- it's a cross section of Americana.  One last item Morty…

I believe most Progressives have a heart as warm as mine and I include you among them. I simply view most Progressives as honestly misguided on these matters - and you see me the same way - I get it.  It's a draw. 

We also agree there are Wing Nuts on both sides.  However, if life comes down to helping your fellow man, consider that Conservatives believe government is simply not the way to salvation and its very nature is to give what it does not have, in order to stay in power.  Fannie, Freddie, free Fed money, and the like, were all government conceived, packaged and delivered.  They just needed help from a few reckless Wall Street titans to package and insure the mess, in order to bring down the whole temple. 

But back to helping the less fortunate.  Consider that as a percentage of income, many observers believe Republicans give a larger percentage of their incomes to charity than Democrats.  If you doubt the assertion, check out this link…  I have not studied the question, but I think the generousity debate is another draw, Mort.

Either way, too many Dems pretend that they belong to the party of compassion and that the GOP doesn't care.  That stifles productive debate, so thanks for not playing that nauseating card!

Gotta run...

Your devoted friend,

John“

Mark Neumann's time for a new goal

By WisPolitics.com - Mark Neumann 

Here's to Mark Neumann, a fiscal conservative and effective legislator with the best interests of the people in mind.  He's the kind of candidate we need to help take back our state from what Ayn Rand called, "the looters." The problem is that the Governor's job won't be his. Mr. Neumann's could instead challenge Russ Feingold for a Senate seat (that could have become his in 1998) and abandon his Gubernatorial ambitions because....

• The Walker forces are too strong, better funded and possesses support of the party leadership and the GOP rank and file.
• Mr. Walker has a very real chance of beating Mr. Barrett - you could cast more momentum his way, by throwing your support to the Walker campaign.
• Neumann is the only credible candidate with Washington experience and a chance to beat Feingold.  
• He lost to Mr. Feingold by a slim margin last time. Feingold and other stalwarts in his party, are more vulnerable today.  

So, Mr. Neumann, please be a pragmatist.  You will not win the September primary anyway. There is still time to displace Mr. Feingold, but you must change horses....soon.

Kanjorski & Armey - a worthy dual.

This morning, while watching CNBC's Squawk Box, I was struck by a welcome reminder that civility and reasoned political discourse still exist.

Democratic Congressman Paul Kanjorski and former Republican House Majority Leader Dick Armey debated.  The issues and the exchanges mattered less to me than the tone and outcome of the segment. 

Neither man gave much ground, but neither fell prey to stupid sniping or demagogic interruptions while the other man spoke.  Honest officials can put forth opposing views without acting like vicious morons.

I don't know if it is because Mr. Armey and Mr. Kanjorski were reared in an earlier era, or if actual maturity comes to one later in life.  Joe Wilson rants and Keith Olbermann types do us no good.  

Torinus & Geanakoplos

Today, I came upon a message I sent August 16, 2009 to Milwaukee columnist and entrepreneur, John Torinus.  Mr. Torinus has some terrific ideas about creating fiscal health and opportunity here in the Badger state.  However, I was piqued by something in his column last summer and I wrote to him:

"John,

While I agree with 95% of the column, the notion – apparently advanced by John Geanakoplos -- that the government ought to force “a write-down of principal on sub-prime home loans that are under water” is wrong. 

I recall hearing one of your presentations on healthcare and the insurance plans of yesteryear which offered no incentive to control costs (as opposed to high deductible plans many of us now have). You likened the situation to a 10 cent Martini night that you observed as a young Marine. Such arrangements, you reminded the audience, just might lead one to be “over-served.”

Well that’s precisely, the story of most sub-prime borrowers – they were over-served and just as no one forced you to drain too many martinis, no lender could force someone to buy more home than they could afford.

Of course, the rest of us who behave responsibly with our health and wealth, pay the price for those who don’t, but that’s fodder for another column.

To keep sub-prime borrowers in "their" homes - the ones with jobs anyway who may just need a little time - there are better options like converting them to renter status, interest only payment extensions, etc. But write down the principle? No. Doing so abets irresponsible behavior instead of suppressing it.

Tougher mortgage underwriting standards have already taken hold because far too many people, left to their own devices, will drink from the trough until they burst."

Noonan, Isaacson and Caro on Zakaria's program

It was quite a panel assembled today on Fareed Zakaria's Sunday cable program.  Mr. Zakaria typically focuses his program on foreign affairs, but today he turned his sights to the domestic political challenges of the Obama administration.

It was sort of a "Where did he go wrong and what should he do now?" theme addressed by three fine writers - Walter Isaacson, Peggy Noonan and Robert Caro. 

Mr. Caro asserted, "If Obama backs away from healthcare, he will have lost his ideals." 

On a personal note, I am a huge fan of Mr. Caro's work on LBJ.  (I wish he'd complete his book on the final years of Johnson's life soon.)  However, some might take exception with his reference today, to the "fifty million" Americans without health insurance, for two reasons. 

First, many tend to use interchangeably, the notion of "care and insurance" as Mr. Caro did, which obscures the debate. 

Second, the "fifty million" figure needs to be deconstructed and put it into perspective for a nation of 308 million people.  When one looks at "the number" which appears to be closer to 45 million than 50 million, and subtracts from it, the number of people falling under one of the following conditions:

• eligible for free or heavily subsidized health insurance, but won't take it
• receives free or subsidized health insurance but reports to census takers they have no insurance
• can afford traditional (non-subsidized) insurance, but chooses not to buy it
• are not American citizens

. . . then one ought to reduce the 45 (or 50) million number, by at least 30 million people according to an analysis by former White House economic adviser, Keith Hennessey.  What remains, is the number of uninsured we have a duty to help, but that number approaches 15 million people, not 50 million people.

Perhaps we need not nationalize 1/6th of our economy against the wishes of most Americans to produce a policy that does nothing to lower costs.  Market reforms, tort reforms, increased patient responsibility and other measures could lower costs and improve the system.

Walter Isaacson (author of a critical but engrossing biography of Henry Kissinger) may have made the most practical prescription on today's program when he concluded, "The country is best governed and transformed from the center."

In time we'll know if Mr. Obama will heed this advice and succeed, or choose to double down on the current course.

Milwaukee's fiscal woes won't be solved by Dems' press releases

Published 1.15.2010 at Examiner.com

The primary reason I decided to support Scott Walker's bid for Governor last year is that he is one of the few state pols who "gets it." The "it" in this case -- is fiscal sanity.

I make no claim of neutrality, so when a Web article from the state Democratic machine came into view yesterday, I was naturally skeptical. The title alone was hair-raising, "Inmates Released, Public Safety Plans Cut: "Patchwork" Walker's Latest Hypocrisy Exposed by Political Ally"

The "Political Ally" referred to is Milwaukee County Sheriff, David A. Clarke Jr. -- another leader who also understands how to operate within his means.  My word, I wondered, what had County Executive Scott Walker done? The piece issued by the Democratic Party of Wisconsin, references, "...a scathing letter to Walker" from Sheriff Clarke.

In the first place, the Sheriff's letter was addressed to several County supervisors and Mr. Walker, not solely to Mr. Walker, as the article implies.

Secondly, when the sum and substance of this piece didn't square with my own understanding of Mr. Walker's views, I looked to his Communications Director for Mr. Walker's official positions, which were described thus:

"The budget Scott presented for 2010 DID NOT include furlough days for Sheriff's deputies."

An amendment passed by the members of the County Board applied floating furlough days to everyone and it could not be line-item vetoed. The County Board are the ones that put this into Scott's budget.  

Now, the Sheriff has a series of actions he wants to take as an alternative to furlough days for deputies. Scott supports an alternative and has been working with his office for past few weeks.

Scott Walker WILL NOT and DOES NOT support the early release of inmates as part of an alternative plan. In fact, he would veto such a plan if approved by the County Board.

Instead, Scott will continue to work with the Sheriff's office to avoid the release of inmates - as well as furlough days"

Finally, I contacted Sheriff Clarke's office seeking comment on the "scathing" letter as described in the article in question, and the Sheriff responded through a representative that Sheriff Clarke,

“...is not going to politicize his budget and these conversations should definitely take place between himself, the County Board and the County Executive.”

Perhaps someone forgot to tell the Dems.

Rick Santelli is right

Rick Santelli, CNBC

This morning I watched CNBC's Rick Santelli talking from the Chicago Board Of Trade.  His so-called, "Santelli Rant" has been watched on YouTube over a million times and his sentiments today, once again, represent the views of many Americans who believe in living within one's means. It's how we were raised -- but we lack Mr. Santelli's microphone.

Rick Santelli was in fine form this morning while debating Steve Liesman.  The topic was banking reform and Mr. Santelli made a case for an elegantly simple cure -- raise the banks' capital requirements. 

Another CNBC commentator astutely chimed in that this is the same premium banks require when a homeowner has a marginal credit history -- the bank looks for more cash in the deal -- a bigger down payment to compensate for the risk of default.

Why can't we use the same mechanism to minimize chances of another banking meltdown?  Do we need new federal agencies, reams of new regulations, congressional hearings, class warfare speeches and on and on?  I realize that raising the amount of capital that banks must hold affects their profitability, but maybe it's a reasonable way to manage systemic risk.