ALG Calls for Hearings, Special Prosecutor to Investigate Fannie, Freddie Guarantees

April 8th, 2010, Fairfax, VA—Americans for Limited Government President Bill Wilson today urged Representative Scott Garrett (NJ-CD5) to demand the House majority convene hearings to investigate contradictory “guarantees” made by the federal government after Fannie Mae and Freddie Mac were nationalized in 2008.

According to Wilson’s letter, “Somebody has lied, and he must be held accountable for misleading the American people.”

The letter also urged Garrett to recommend that Barack Obama appoint a special prosecutor to investigate the matter.

In a letter to Garrett, Secretary Timothy Geithner wrote that the “corporate debt of the GSEs is not the same as U.S. Treasuries, nor should it be considered sovereign debt.” The letter continued, “By statute, all obligations and securities issued by the GSEs must include a statement that makes clear that such obligations and securities are not guaranteed by the United States and do not constitute a debt or obligation of the United States.”

But, wrote Wilson, “Unfortunately, Secretary Geithner’s letter directly contradicts then-Federal Housing Finance Agency director James Lockhart’s 2008 Congressional testimony.”

Lockhart had testified that “the conservatorship and the access to credit from the U.S. Treasury provide an explicit guarantee to existing and future debt holders of Fannie Mae and Freddie Mac,” as reported by Bloomberg News.

At the time, the agency distinguished between “an explicit guarantee” and the “full faith and credit of the United States”, and Lockhart clarified that he meant “an effective guarantee because there's $100 billion backing their equity provided by the U.S. Treasury…That does give them effectively a guarantee of the U.S. government.”

Wilson’s letter continued, “Adding complexity to this issue, according to the New York Federal Reserve’s website, the Federal Reserve is not guaranteeing the securities nor Fannie Mae and Freddie Mac by extension either with its purchase of $1.25 trillion of mortgage-backed securities from investors.”

According to the website: “Assets purchased under this program are fully guaranteed as to principal and interest by Fannie Mae, Freddie Mac, and Ginnie Mae, so the Federal Reserve's exposure to the credit risk of the underlying mortgages is minimal.”

In the letter, Wilson wrote, “either then-Director Lockhart was misleading Congress in 2008, Secretary Geithner is misleading Congress today, or the Federal Reserve really is guaranteeing the GSEs’ debts and obligations.”

Get full story here.

The War on the Young: The Minimum Wage

By Adam Bitely
Almost every politician claims to be doing work to preserve and protect America’s future. They pretend they are protecting America’s youth. But what they are actually doing is harming the nation’s youth and jeopardizing the future of the nation.

For instance, consider the minimum wage. Proponents on both sides of the aisle argue that low-skilled workers — which all younger people in America are — will reap great benefits as they see their pay increase. However, that is the exact opposite of what actually happens when the minimum wage is hiked.

In fact, many of the people that the politicians claim to help end up finding themselves unemployed or working less hours. But how can this be? How can the politicians that claim to be on the side of America’s youth be actually harming them?

If one understands how the law of supply and demand works, then one can see the inherent problems with a mandated minimum wage.

Get full story here.

Liu Guilty by Omission

By Robert Romano

The failure by Barack Obama’s nominee to the 9th Circuit Court of Appeals Goodwin Liu to initially provide 117 items asked for by the Senate Judiciary Committee, including speeches, publications, and other background materials offers yet one more reason why he should be rejected by the Senate.

According to a letter from Senator Jeff Sessions (R-AL) and other Senate Judiciary Republicans, missing from the nominee’s questionnaire was “1) Professor Liu’s commencement speech to UC Berkeley Law; (2) his participation in a panel entitled ‘What the 2008 Election Will Mean for the Supreme Court’; (3) his participation in a presentation entitled ‘The Fate of Affirmative Action from the O’Connor Court to the Roberts Court’; (4) his participation in an event co-sponsored by La Raza and the Center for Social Justice at Berkeley entitled ‘Mendez v. Westminster: 1946—A California Look at Brown v. Board of Education’; and (5) his participation in a conference on school funding.”

In the least, Liu’s views on prominent issues facing the Supreme Court, affirmative action, Brown v. Board of Education, and other items are quite relevant to determining Liu’s qualifications as a judge and his prejudices as an activist.

The final item in that list pursuant to school funding is particularly relevant, however. As ALG News has previously reported, Liu’s writings suggest he views education and health care as “welfare rights” that courts should have a role in distributing.

In truth, no other nominee more broadly reflects the true judicial philosophy of Barack Obama than Goodwin Liu. As was revealed in his 2001 WBEZ public radio interview, then-Illinois State Senator Obama lamented that the Warren Court did not “break us free from the essential constraints that were placed by the Founding Fathers in the Constitution” and had “never ventured into the issues of redistribution of the wealth and sort of more basic issues of political and economic justice in this society.”

So, in the least, Senate Republicans should get their hands on any information demonstrating that Liu shares Obama’s views — because those alone ought to be necessarily disqualifying, Obama’s election to the highest office in the land notwithstanding.

Does Liu have something to hide? His omissions did continue even after Republicans demanded everything, as noted by the letter.

Get full story here.

Liu Guilty by Omission

By Robert Romano

The failure by Barack Obama’s nominee to the 9th Circuit Court of Appeals Goodwin Liu to initially provide 117 items asked for by the Senate Judiciary Committee, including speeches, publications, and other background materials offers yet one more reason why he should be rejected by the Senate.

According to a letter from Senator Jeff Sessions (R-AL) and other Senate Judiciary Republicans, missing from the nominee’s questionnaire was “1) Professor Liu’s commencement speech to UC Berkeley Law; (2) his participation in a panel entitled ‘What the 2008 Election Will Mean for the Supreme Court’; (3) his participation in a presentation entitled ‘The Fate of Affirmative Action from the O’Connor Court to the Roberts Court’; (4) his participation in an event co-sponsored by La Raza and the Center for Social Justice at Berkeley entitled ‘Mendez v. Westminster: 1946—A California Look at Brown v. Board of Education’; and (5) his participation in a conference on school funding.”

In the least, Liu’s views on prominent issues facing the Supreme Court, affirmative action, Brown v. Board of Education, and other items are quite relevant to determining Liu’s qualifications as a judge and his prejudices as an activist.

The final item in that list pursuant to school funding is particularly relevant, however. As ALG News has previously reported, Liu’s writings suggest he views education and health care as “welfare rights” that courts should have a role in distributing.

In truth, no other nominee more broadly reflects the true judicial philosophy of Barack Obama than Goodwin Liu. As was revealed in his 2001 WBEZ public radio interview, then-Illinois State Senator Obama lamented that the Warren Court did not “break us free from the essential constraints that were placed by the Founding Fathers in the Constitution” and had “never ventured into the issues of redistribution of the wealth and sort of more basic issues of political and economic justice in this society.”

So, in the least, Senate Republicans should get their hands on any information demonstrating that Liu shares Obama’s views — because those alone ought to be necessarily disqualifying, Obama’s election to the highest office in the land notwithstanding.

Does Liu have something to hide? His omissions did continue even after Republicans demanded everything, as noted by the letter.

Get full story here.

Financial “Reform” Fails to Address Root Causes of Crisis: Fannie, Freddie, the Fed, and Congress

By Bill Wilson

As the Senate begins debate on Senator Chris Dodd’s (D-CT) financial “reform” bill, what is missing from the bill is nearly as bad as what it contains.

First, a brief examination of some of its key provisions is obliged: as reported by NPLC.org, it creates a Financial Stability Oversight Council to put into receivership — i.e. take over — any financial institution it deems "too risky"; it puts the Federal Reserve in charge of a Consumer Financial Protection Bureau with sweeping powers to regulate any institution with a portfolio exceeding $10 billion; it creates a permanent revolving $50 billion bailout fund; and “[u]pon a consensus by the Fed, the Treasury Department and Federal Deposit Insurance Corporation (FDIC), unstable institutions would be turned over to the FDIC.”

In short, the legislation is an extensive takeover of the nation’s entire financial system; a classic case of the “cure” being worse than the disease. Namely, because it fails to address the root causes of the financial collapse of 2007 and 2008. Instead, it barely treats the symptoms of the problems — all of which government created.

For example, the bill neither repeals the Community Reinvestment Act nor the Clinton-era regulations that executed it forcing banks to offer mortgages to lower-income Americans. This essential weakening of credit was hailed at the time by then-HUD Director Andrew Cuomo as an end to “discrimination in lending,” but we now know was one of the principal causes of Americans receiving mortgages they could never afford.

Last year alone, there were 3.9 million foreclosure filings, as reported by Business Week, surpassing 2008’s 3.2 million foreclosures. And the pain is hardly over yet. RealtyTrac Senior Vice President Rick Sharga and Trulia CEO Pete Flint forecast as many as 4 million foreclosures in 2010.

In the meantime, since the crisis began, all of government’s energies have been spent attempting to “loosen” credit: the Federal Funds Rate that banks borrow from one another is at 0 to 0.25 percent and the Federal Reserve has more than doubled the money supply since 2007.

Which brings us to the Federal Reserve’s easy money policies.

Get full story here.

The Rape of America

By Robin of Berkeley

Let's start by analyzing the mind of a rapist. His goal: Domination and absolute power, through any means necessary.

His motivation: punishing another, degrading her, feeling superior and God-like. Making her feel like an object, nothing, a no-thing.

What else propels him? Taking what he wants just because he wants it. Feeling the surge of power, the adrenaline rush, the thrill of stealing a piece of her.

Anything else? Feeding primitive, twisted impulses; expressing sadistic needs; the savage excitement of subjugating and controlling another.

Those most likely to rape? Someone who was sexually abused himself, an outsider, a person robbed of a normal childhood. A man who has carved an identity out of rage and envy and resentment. Someone who feels entitled to take whatever he wants.

What fosters rape? Parents missing in action. A culture that thumbs its nose at God.

And a society that minimizes crime, that even heralds certain criminals as heroes. (Some Black Panthers were rapists, yet they're revered as idols.) A culture where punishment is weak and politicians are moral cowards, fearful of the ACLU.

What else? A media that celebrates debauchery, that entertains through degrading and objectifying. Popular rap songs and cool hip-hop artists whose words slice and dice women. Films where anything goes, where hot lesbian sex scenes are as omnipresent as those boneheaded authority figures.

And the aftermath of rape? The destruction of something in the victim that will never return: a feeling of safety in the world, in her own body. The nightmare of being treated as an animal -- no, worse than this, since animals are now venerated. And from this nightmare she may never completely awaken.

This, in a nutshell, is how rape works. But words alone can never capture the enormity, the horror, the soul-crushing evil of rape. And not only females can be victims; men and little boys are violated, with women, on rare occasions, as perpetrators.

The word "rape" has an intriguing history. It originally denoted the violent seizure of property. I'm going to use the term in both the historic and modern sense to convey what is happening today.

This country is being raped.

Get full story here.

Tracy Lynn Johnson Behind Tiki Barber Divorce

Tiki Barber divorce from his wife Ginny Barber is under way, according to information propelled by The New York Post. More details have arrived to our newsroom, and we have found out that Tiki and Ginny were living separated for the last months.

The story of slimeball Tiki Barber leaving his knocked-up Asian wife for a little blonde-haired Becky is unraveling more and more. Apparently, the little white girl was lying to her parents telling them that she was Tiki’s “babysitter” while this dude is spending the night at her dorm, buying extravagant gifts, and the whole nine.

The father of Tiki Barber’s young blond mistress unwittingly bragged to friends that she baby-sat for the ex-Giant’s kids — and that Barber then helped land her an internship on the “Today” show, a neighbor told The Post yesterday. Earnest Johnson’s proud boasts made daughter Traci Lynn Johnson look good to neighbors at the time.
But the world was looking at Traci, 23, in a new light yesterday after The Post exclusively revealed that she is the long-tressed temptress who lured Barber away from his beautiful wife, Ginny — who is eight months pregnant with their twins.

Kyrgyzstan president goes into hiding

Coup leader Roza Otunbayeva says parliament is dissolved and that she'll govern until an election in six months. President Kurmanbek Bakiyev admits he has no power.

US-Russia pact is one small step closer to nuclear Utopia

Very neat. In Prague yesterday, signing a pact with Russia to cut nuclear arsenals, President Obama jumped through another hoop - the third in quick succession - in trying to stop the spread of those weapons.

ESPN marks Tiger's tee shot with live coverage

NEW YORK - ESPN treated Tiger Woods' return to golf at the Masters as an epic event Thursday, then tiptoed around the reason for all the buzz.

NEW YORK (AP) -- Shares of US Airways and the parent of United Airlines rose in after-hours trading after The New York Times reported that the carrier

Alan Greenspan claims his insistence on lower interest rates had nothing to do with the financial crisis, but Roosevelt Institute Senior Fellow Jeff Madrick doesn’t buy it.

by Justin Lutz
Alan Greenspan has defended himself before the Financial Crisis Inquiry Commission today. The Commission is meant to investigate the root causes of the financial crisis, and Greenspan’s work at the Fed–particularly when it comes to perpetuating low interest rates–is at the heart of the controversy. Greenspan has, of course, admitted no personal fault in creating the financial crisis, choosing instead to cite the fall of communism and excessive saving in developing countries as catalysts.

This is no surprise. Just yesterday, Roosevelt Institute Senior Fellow Jeff Madrick penned a piece here predicting that “Greenspan will fall back on his ideology, a simplistic view of economic competition that is not based on the real world.”

Madrick was exactly right. What is even worse than Greenspan evading personal blame for contributing to the financial crisis is his insistence that regulation (or the lack thereof) is not the cause or the solution–instead, regulators are completely helpless in their roles as financial watchdogs. Finance, he claims, is simply too complex for regulators to keep up:

“We [government] are reaching far beyond our capacities,” Greenspan said. ” It’s not a simple issue of ‘Let’s regulate better.’ It’s a different world.”

Madrick knew that this was coming, and predicted that Greenspan & Co. would portray government regulation as a useless infringement on the free market and true competition: “They will of course scold the commission if they fail to understand that market competition is the best regulator, and warn them not to damage a system that has been at the heart of prosperity in America for so long.”

Even at his toughest Phil Angelides — former California State Treasurer and Chair of the FCIC, at his toughest — failed to elicit any admission of fault from Greenspan.

Angelides’ lead role in the investigation has been called into question recently; a recent New York Times article notes that,

“a few commissioners said they were concerned that Mr. Angelides was more interested in holding prominent hearings than in selecting a few targets for deep examination. For example, the chief executives of four Wall Street banks testified in January, and Alan Greenspan, the former Federal Reserve chairman, will testify on Wednesday. The commission has issued no subpoenas even though it has the power to do so.”

This is unacceptable. We hope that as the testimony progresses, the Commission is able to turn up the heat in order to get down to the real, tangible causes of the worst financial crisis in most people’s memory.

Mega Merger Between US Airways And United Airlines Reportedly In The Works

NEW YORK (AP) -- Shares of US Airways and the parent of United Airlines rose in after-hours trading after The New York Times reported that the carriers are in merger talks.

The newspaper's DealBook blog cites people briefed on the discussions. Those people said no transaction is expected to be announced for at least several weeks, and that talks could still collapse.

Spokespersons for both airlines say they don't comment on rumors.

Shares of United parent UAL Corp. rose $1.57, or 8.3 percent, to $20.52 in late trading. US Airways Group Inc. rose $1.78, or 26.1 percent, to $8.60.

The CEOs of both airlines have been outspoken about their willingness to be involved in some type of merger.

Stoudemire scores 29, Nash and Richardson sit out fourth in Suns 112-101 win over Spurs

Stoudemire scores 29, Suns dominate Spurs 112-101

By Bob Baum,

PHOENIX — Amare Stoudemire scored 29 points and Phoenix dominated San Antonio most of Wednesday night in a 112-101 victory that snapped the Spurs’ four-game winning streak and kept the Suns tied for second in the Western Conference with four games to play.

Jason Richardson scored 20 and Steve Nash had 16 points and 12 assists in Phoenix’s 11th victory in 12 games. Neither played in the fourth quarter, when Goran Dragic was at the controls while the Suns fought off a rally to pull away and lead by as many as 17.

Roger Mason led six Spurs in double figures with 18 points. Richard Jefferson added 17.

Manu Ginobili, who had averaged 22.5 points since the All-Star break, scored 10 on 5-of-14 shooting, 0 of 5 on 3-pointers. Tim Duncan had 14 points and seven rebounds for the Spurs, who fell into a three-way tie for the West’s final three playoff spots.

Phoenix, which hadn’t played since Sunday, took the lead for good with an 11-2 run to close the first half and was up 61-52 at the break.

The Spurs fell to 7-9 when playing the second of consecutive nights.

Tony Parker, in his second game back from a 16-game absence with a broken right ring finger, had 10 points on 5-of-10 shooting with five assists.

Richardson, who scored 13 in the quarter, dunked after a slick pass from Nash to put Suns up 88-74 with 1:44 to play in the third period. But the Spurs scored the last six of the quarter, capped by Matt Bonner’s 9-foot hook shot from the baseline at the buzzer that made it 88-80 entering the fourth.

After Channing Frye’s jumper for the Suns, Mason sank a 3-pointer and Parker a 22-footer from the baseline to slice the lead to 90-85 with 10:27 to play, and Phoenix coach Alvin Gentry called a timeout.

The Suns ran away with it after that.

Phoenix scored the next five, Jared Dudley with a 3-pointer and Lou Amundson with an inside hoop, and it was 95-85 8:38 from the end.

The run reached 14-5 when Dragic made two free throws that put Phoenix ahead 104-90 with 5:12 to play. Dragic had just scored on a fast-break layup after Grant Hill stole a pass from Jefferson. Dragic scored seven straight points and had consecutive steals as the Suns turned it into a 109-92 blowout with 3:58 to play. He knocked DeJuan Blair’s pass away to Hill for a breakaway dunk to cap the surge.

Phoenix is tied with Denver and Dallas at 51-27. The Spurs are even with Portland and Oklahoma City at 48-30.

At one point in the first half, the Spurs were 4 of 13 from the foul line. They were 7 of 18 at the break, then 10 of 10 in the second half.

NOTES: Duncan left the game with 2:31 left in the first half after taking an elbow to the forehead from Ginobili but was back moments later. … Suns C Robin Lopez says there is no timetable for his return from a back injury. He says the bulging disk is to be re-evaluated by doctors next week. … Asked before the game how Parker has looked, coach Gregg Popovich said, “He’s still cute. “

Free Health Care: Where Do We Get It?

By Tara Lynn Thompson


Medical nirvana was only a Democrat vote and a Presidential signature away. Now that health care reform has been signed into law, people are asking for their free health care and finding reality never quite lives up to the hype.

“They’re saying, ‘Where do we get the free Obama care, and how do I sign up for that?’ ” said Carrie McLean, a licensed agent for eHealthInsurance.com. The California-based company sells coverage from 185 health insurance carriers in 50 states.

And while we’re on the subject, where’s the free houses? And the free food? How about some free clothes? Who couldn’t use some free clothes? A free car would be nice and free gasoline to power it. And a free vacation. Spending a few days on a warm beach – for free – is necessary for a healthy lifestyle.

Whatever is coming, isn’t fully coming until 2014. According to Sen. Dick Durbin (D-Illinois) who said in March that 70 people die every day due to lacking health insurance, that means roughly 100,000-plus more Americans will die before the Democrat’s miraculous health care insurance over-hall takeover reform goes into affect.

Until then, insurance offices, doctors’ offices, human resource departments, etc. are being flooded with phone calls for clarification. People are asking: Where’s my free health care?


“We tell them it’s not free, that there are going to be things in place that help people who are low-income, but that ultimately most of that is not going to be taking place until 2014,” McLean said.

It isn’t free at all. What they are really asking is: When is someone else going to pay for my health care?

Nevertheless, Obama’s health care legislation still means no free coverage for adults with pre-existing conditions for four more years. Children age 26 and under, if you can call adults age 26 and under “children”, are allowed to be covered under their parents plan. But that doesn’t start until September.

And then there is the question of who qualifies for what now, if anything, and who doesn’t and who determines who qualifies and who doesn’t. According to the report by McClatchy Newspapers, the Department of Health and Human Services will establish those regulations, though they are still in development states. And will those guidelines, if developed in time, help the laid-off workers who will see their federal COBRA subsides gone by next month?

Then beyond the individual questions is the concern for businesses, what this means to them, what are the new requirements, what are the new expenses, can they afford them, and will layoffs be necessary to stay in business, according to the National Federation of Independent Business, the small-business lobby.

“The next question that comes out of their mouths is: ‘What do I have to do right now?’ They need to start talking with their accountant, depending on how they’re organized, what industry they’re in and whether they’re offering insurance now and what kind they’re offering. We’re suggesting they talk to their agent or broker.”

The drain of the legislation on small businesses could mean fewer full-time employment options and higher unemployment, an economic side effect not being discussed.

And despite the tax credit Obama has been touting that would offer help to small businesses, Dimarob of the National Federation of Independent Business said most businesses wouldn’t be able to participate. Like all other government programs, this one has too many “intricacies” and complications and loopholes and requirements for most businesses to reap any benefits to help shoulder the extra burden.

For now, Obama is back on the campaign trail to promote his health care reform, a move to answer the question that may not stop being asked for four more years: Where’s my free health care?

Nike Won’t Let Us Forget Tiger’s Philandering Dad

How desperate is Nike and Tiger get back into your pocket? They’ll exhume Tiger’s dead dad Earl Woods to help restore six-iron sales.



(Gee, I’d forgotten Earl said that. Thanks Nike!)

Thank goodness 99.9% of the people who will watch the :30 spot have no idea that in 1997 Tiger effectively traded in his relationship with his father for the honorable pursuit of selling golf bags.

Before Tiger signed with Nike, he was just like his dad in public. Fun-loving and prone to foul-mouthed misjudgement. (See GQ interview.)

Then the golfer signed over his soul to Nike, and that naturally likable personality was lost. Replaced by something out of the late ’70s Soviet Politburo. As was Earl’s influence, despite what golf media drones were writing at the time. (And some to this day!)

So now that Nike’s image of Tiger has burned down, what do they do? Dig up the old man the company previously pushed out of the picture as quickly and forcefully as possible.


What does the late Mr. Woods get out of that? Folks like me reminding readers that Earl was a serial philanderer who abandoned his first wife and three children after meeting Tiger’s mom Kultida in Bangkok. Then cheating on Kultida to the point where she moved out and the couple only pretended to be married.

And that Earl once said to Tiger, “marriage is unnecessary in a mobile society.”

Whitney Houston postpones more European tour dates

NEW YORK — Whitney Houston has again pushed back the European leg of her first tour in years on the advice of doctors who are encouraging her to take time to recover from a respiratory illness, according to a statement issued Wednesday.

Houston had already postponed the European kickoff, originally scheduled for Tuesday in Paris, because of illness. A statement from a representative said doctors advised Houston to reschedule concerts Thursday and Friday in Manchester, England, and a Sunday performance in Glasgow, Scotland.

All dates are being rescheduled, and the 46-year-old singer's tour is now supposed to start next Tuesday in Birmingham, England.

"Doctors visited Whitney late last night in Paris and confirmed that she was suffering from an upper respiratory infection," the statement read. "Upon medical advice Whitney has been advised that she cannot perform to allow her time to recover."

The statement noted she delayed the tour with "great disappointment."

Houston, one of pop's all-time best-selling artists, had been on a hiatus from music as she battled drug addiction and ended a tumultuous marriage to singer Bobby Brown. But with her new CD, "I Look to You," she returned on the top of the charts and declared herself healthy and free from substance abuse.

The superstar has been on a world tour to promote the CD, which has sold more than 1 million copies in the United States alone.

However, the tour has been troubled; performances in Australia and elsewhere were negatively received by some fans and critics, who complained Houston did not showcase the majestic voice she is known for.

Video snippets of her performances showed Houston sweating and struggling to hit notes, leading some to wonder about her health.

In February, her representative issued a statement denying any troubles, saying, "Whitney is in great health and having a terrific time on her tour and with her fans."