Category Archives: Business

Updated: The Hildebeest to Level the Lending Industry

Business, Capitalism, Constitution, Economy, Feminism, Free Markets, Hillary Clinton, Socialism

The Hildebeest wants to make it easier for debt-laden borrowers to borrow money they can’t repay. She wants those who don’t spend money they don’t have, to subsidize those who do. The latter are called, euphemistically “at-risk borrowers.” So now we are medicalizing fraud! Defraud the lender and it is not he and his investment that are at risk, but you the defrauder. As for the money lending industry: hey toots, what do you think mortgage companies will do if you force them to throw good money after bad? Go bankrupt!

Tightening credit conditions and foreclosures signal to this silly socialist one and one thing only: the lending industry is not yet egalitarian enough; it has not yet been forced to lend to all equally. The insurance industry already gets sued to bits when it refuses to pay out to the barely insured for homes that were swept away by Katrina, but were never insured against floods. This woman is so dim. Like so many women, Hillary just doesn’t understand money or free markets. Here I include the war harpies. They cheer on the spending in Iraq, which contributes to our economic straits—to the promiscuous money printing and the devaluation of the dollar. As I once said on a libertarian discussion list, I’d give up my vote if that would guarantee that all women were denied the vote.

The worst part of all this is how Hillary audaciously framers her Fabian plank as quintessential Americanism: “We need to secure the marketplace and put reforms in place right now… [do] what America has always done in times of difficulty…,” IT announced.

Practically every initiative Hillary touts as part of her platform is grounded in spending money not hers. Hey toots, you haven’t even been elected yet! Enough already! I’m being unfair. Instead of a slap on the face to calm the cow down, Barak Hussein Obama is matching Hillary word-for-word. He has also promised to curb “abusive practices,” by which he presumably means the mortgage company’s practice of charging a higher interest rate for loans to less credit-worthy borrowers.

This is sick. It’s socialism.

Updated (March 29, 2008): Yesterday Hillary reiterated her intent to level another industry: health insurance. This time her mandate came from the … Constitution. We were all prohibited under the Constitution, said she, from discriminating on the basis of age, sex, race, etc. So why should the insurance industry be exempt? Why should it be permitted to discriminate between people based on health status (largely under the individual’s control)? Hillary wanted to know. Aware as I am that Hillary is such a strict constructionist (sarcasm alert), please enlighten me as to the clause in the Constitution upon which Hillary bases her latest Fabian impetus. It’s obvious that the woman could never fathom what it is that the actuary does.

Nifonged

Business, Capitalism, Conservatism, Crime, Criminal Injustice, English, Free Markets, Ilana Mercer, Law

With respect to readers’ comments on the crucifixion of Conrad Black being the handiwork of the Left:

Fine, so long as we agree that by the “Left” we mean Republican Party hacks as well. Under their watch the most egregious prosecutions have taken place: Martha Stewart and Conrad Black.

As I coined the verb “Nifonged,” I’ll resurrect a quote with respect to the front runner in the presidential race. “Rudy Giuliani: That’s the guy who Nifonged Michael Milken, right?”—ILANA (March 4, 2007)

Yes, let’s be clear: when we speak of anti-business (and anti-justice) prosecutions launched by the Left, we include Republicans.

Capital Flight

Business, Capitalism, Economy, Free Markets, Government

Be afraid when a Democrat-dominated, “influential House committee is set to hear testimony from all five commissioners of the Securities and Exchange Commission today—the first time that has happened in at least 10 years.” Yes, the SEC is making a House call, as the Wall Street Journal put it.

What new havoc the SEC wrecking ball will wreak? That’s too early to tell. So far, according to FreedomWorks, the Republican Party’s Sarbanes-Oxley Act of 2002 has had the following effects on American capital markets:

“Between 1996 and 2001, the New York Stock Exchange (NYSE) averaged fifty new non U.S. listings annually; in 2005, it gained nineteen.

London’s AIM (Alternative Investment Market) had 335 initial offerings of securities in 2005 – twice the total in 2000, while Nasdaq had 126, down 65 percent.

In 2000, nine of every ten dollars raised by foreign companies were raised in the United States; in 2005, nine of the ten largest offerings were not registered in the United States, and of the largest twenty-five global offerings, only one took place in the U.S.

The government accounting office (GAO) found that the number of public companies going private increased from 143 in 2001 to 245 in 2004.

In 2000, nearly half, 46.8%, of the global IPO equity was raised on U.S. exchanges. However, in 2005, only 5.7% of dollars raised by non U.S. company IPOs was raised through shares listed on U.S. stock markets subject to U.S. regulatory rules and oversight.

The total inflation-adjusted value of securities class-action settlements increased to $9.6 billion in 2005 from $150 million in 1997.

The Sarbanes-Oxley Act of 2002, which placed extremely costly additional financial burdens, is estimated to have ‘cost in lost market value of U.S. companies at $1.4 trillion.’ In addition, it appears that the requirement for independent-director majorities on corporate boards has reduced the willingness of corporations to take risks, which will have a long run, adverse effect on U.S. economic growth.”

On Houseguests, Holidays, And Homosexual Rights

Business, Homosexuality, Labor, libertarianism, Media, Republicans

My house guests have left for a precious week. At long last some respite. So far The Occupation has lasted six weeks. Another three to go. The first order of the day was to scrub down the house. Olfactory restoration was followed by auditory revival: music is the best antidote to the aftereffects of non-stop carping. And who better than Brahms—the maestro’s Sextets, in particular. So on went the Sextets, and out gushed the tears. Perfection makes me cry, and String Sextet No. 1 in B Flat op 18 is achingly sublime. I’m now almost as good as new, ready with a few updates:
First up: the presenters of Connected Coast to Coast have a message for overworked Americans battling to keep their professional edge in the age of inflation, taxation, never-ending government deficits and wars, and the threat of outsourcing: Don’t Worry, Be Happy. Befitting the season, the convivial—and deeply connected—pundits urged Americans to follow the Commander-in-Chief’s lead and go on holiday—lots of them. Contra the CIC, Americans on average take only 12 vacation days, admonished our TV personalities. Don’t you know that it takes a toll on your health?
One of Connected’s hosts is Ronald Reagan’s son, no less. A liberal, Ron Reagan’s sense of the working world is as sound as his grasp of free market economics. The other presenter is a woman who has always worshipped at the GOP altar, devotion which tends to be very well-rewarded. The commentariat, of course, is a mirror image of the political class, reflecting and reinforcing the opinions—and the reality—of the elites. More often than not, the chattering classes are as privileged—and protected—as their masters.
No wonder, then, that the hosts of Connected Coast to Coast can jest about what compulsive workers Americans are. For your information Monica and Ron, most corporations give their workers ten working days off a year! Americans take so few days off because they get so few days off. If they took more, they’d probably be fired. The market place is competitive. While conformity (“team player” is the private-sector synonym) is as prized, say, in high-tech companies as it is among the punditocracy, ultimately, staying ahead of the game boils down to being capable of producing the goods. Politicians, however, create their own employment conditions, from job description down to the exorbitant pay they extract from taxpayers. The media talking heads are props to the politicos. As long as they play to the “Demopublican Monopolists,” and sustain the respective parties’ constituencies, media “mavens” will retain their perches, their pensions, and their sizable salaries. Connected? Disconnected is more like it.
Next: Did Supreme Court nominee John G. Roberts Jr help the “gay-rights” movement win its most important legal victory? The case was “Romer vs. Evans,” and it “struck down a voter-approved 1992 Colorado initiative that would have allowed employers and landlords to exclude gays from jobs and housing.” That’s The Los Angles Times’ take on a state law that denied special rights and protections to homosexuals. To be fair, Roberts was, at the time, in private practice. He’d have had a hard time refusing his employers. Yes, he offered his services pro bono, but the firm, Hogan & Hartson, expected “partners to volunteer time in community service.” Gay activists consider the decision Roberts helped them win the “single most important positive ruling in the history of the gay rights movement.” Libertarians should consider it in the tradition of 14th-Amendment jurisprudence—a violation of private property and freedom of association and of Coloradans and their constitution. I suspect Roberts would dissent.

Many thanks to Dr. Daniel Pipes. He has posted More Fatwa Fibs on his exceedingly popular and highly regarded website, DanielPipes.org