This Is Your Government...

...and this is your government on stupid. Ahh, yes, nothing like the sweet smell of government takeovers to start your week off right, huh? Indeed, having decided that Chapter 11 was too harsh for it to accept and that 'bailout' was its only option, GM now gets to find out the hard way what us free-marketers were warning them about all along - that public funding for your business also means public management of your business.

Not that the folks at GM have any illusions about what they're getting into though, Rick Wagoner was happy to go, and he'll take the $20 Million dollar retirement package that comes with termination of his job to go with him thank-you-very-much, and the new CEO has already said he knows that he's not going to be the one who's actually in charge.

The result is that President Barack Obama, the man who is a lawyer by training and a Law Professor/Community Organizer/Professional Campaigner by vocation is now fully and totally in charge of running, nay saving, the 9th largest corporation in the entire world. Oh yes, and he'll be accompanied in this task by a Treasury Secretary who can't properly fill out his tax returns and has an entire staff of people who are....yet to be appointed by the President. (And likely Congress too, but you really don't want us to get started on those fuckers right now.)

Anyone else really wish a guy like Mitt Romney, who, you know, understands this kind of shit, was President right about now? Of course, Mitt suggested, way back in December, that we shouldn't have bailed these bastards out in the first place because, shocka, by not making them file for Chapter 11 we were 'bailing them out' of the serious internal restructuring that they needed to do to remain viable. Instead, with bailouts, we would just be turning them into another welfare recipient (albeit an insanely expensive one).

Here's the thing though, as the nice little parting gift that former CEO Wagoner got helps to demonstrate, by bailing these assholes out we have subsidized their bad decision-making process. Instead of being forced to account for the $38 billion in losses they took last year by doing things like eliminating bad Union deals, cutting out their CEO's golden parachute, or generally figuring out what the hell they were doing so terribly wrong that it cost them $38 Billion, they're going to simply sit around and wait for whatever the government's next batch of instructions are. Moreover, how can we possibly blame them for doing just that?

Afterall, by giving them this bailout(/subsidy) we've now incentivized this corporate laziness; because now the company's money isn't coming from it's ability to sell automobiles, but rather its ability to grovel like a cheating husband at the feet of its new Government overlords. In other words, we're expecting this company to be able right the metaphorical ship despite having eliminated the incentives that might make it profitable again, and having turned its management over to people who have neither a direct financial stake in its future profitability nor the proper credentials to hold such positions.

Brilliant.

Of course, that, in a nutshell, is why the Government shouldn't run businesses - because their intervention, particularly on this massive of a scale, screws up the profit motive that is the driving force of capitalism. And honestly, if you don't understand why that's a bad thing (or why Capitalism is a better corporate manager than the effin Government), then you're either a hippie, a fascist, or a communist - in which case you'd be too far gone for me to give a damn about you at this point anyways.

Now, with apologies for all the cussing above, and in an attempt to make you feel even worse, here's the internet's newest viral video star, Daniel Hannan, a Conservative Party member of the European Parliament for England, on how, in addition to spending ourselves into oblivion, the Anglo-Saxon world now has to endure the additional humiliation of having the Germans and the French being the ones telling us that we must step away from the bailout trough:

Visit msnbc.com for Breaking News, World News, and News about the Economy

(For those of you who have, sadly, missed out on the Daniel Hannan craze, please, for the love of God, go watch this short video of the speech he made eviscerating Gordon Brown (and bailouts) at the European Parliament last week. I promise it'll make your day.)

***Update***

Irony alert: the new CEO of GM now says that Chapter 11 actually looks pretty good. It only took them a few months, a government takeover of their management structure, and a few billion taxpayer dollars, but at least they might finally be on the right track...

"When Did Things Get So Twisted"

Just in case you watched President Obama's national press conference earlier tonight, and have finally given up on trying to figure out how, exactly, he's going to be able to make good on his promise to cut the deficit with, uh, massive increases in spending, and where, exactly, he got the information that led him to believe the Dollar was doing well, I do believe I've got you an antidote!

It's Sarah Palin and a speech that she gave recently in Anchorage to the Alaska GOP's Lincoln Dinner (sans Teleprompter). Sadly, the audio is quite poor, and the Alaska GOP managed to omit two parts (one in the middle and the end), which is rather disappointing. Nevertheless, it's a great speech in which she finds time to wax poetic against the stimulus and get in some good shots at the "goofy defenders of wildlife," among others. I'll put my favorite of the 11 clips up here - it's the one where (starting at about 2:30 in) she rails against the stimulus:



The rest of the videos (in their proper order) can be found here.

Political Correctness Strikes, Again

As usual, I appear to be a few days late to chime in on a controversy that consumed at least part of the minds of the blowhards, er, pundits on TV over the past weekend. Anyways, in case you did miss it, last week President Obama decided that, with the economy, and confidence in it, heading further south than where I wish I was fishing right about now, he needed to go and speak directly with the American people on...The Tonight Show.

Because we all know that Jay Leno is going to be ready with the tough questions that Americans want answered.

Nevertheless, while he was there, the President, in a moment of self-depreciation, made what could only be classified as a somewhat formulaic-yet-still-humorous 'retard' joke in which he compared his bowling skills to those of a Special Olympian.

Cue the outrageously outrageous moral outrage of the United States Political Correctness SWAT team.

Indeed, while, admittedly, the outrage from the Fat Cats in the Media and the PC Police was noticeably less than it would have been had, say, George W. Bush made such a remark (although, since they considered W to be retarded, I'm not sure if they could have logically done this...), it was still there; in fact, the outrageously outraged Republicans trying to point out the double standard probably managed to more-or-less make up the difference with their zeal. Indeed, even my beloved Sarah Palin got in on the outrage and managed to shoot of a statement about how much she loved and respected the Special Olympics and how Obama needed to be more careful with his words and.....yea, you probably read the news too, so no need to rehash all of the bullshit.

What seems to be missing in all of this, of course, is the fact that it was a joke, and that taking jokes like this seriously - even if he is the President and is supposed to be 'more careful' with his choice of words - and getting pissed off or angry about them just....well, let's say it brings to mind a certain title utilized by Shakespeare.

Something about 'ado' and 'nothing.'

I mean, people seriously need to learn to develop a sense of humor and just laugh/chuckle at something like this. And seriously, who hasn't, at some point in their life, made a kind of off-color (even offensive!! *gasp*) joke like the President's? Granted, yours was probably funnier; but still, I think I recall something pertinent from the Bible that may apply here - something to do with 'casting stones' and 'sin.'

(Yes folks, retard jokes, Shakespeare, and Jesus, all in one post about Obamarama - that's just the kind of brilliance I offer here.)

A certain wise man once said that "if we couldn't laugh we'd all go insane" - and something tells me that getting all up in arms like Napoleon invading Russia over a joke like the President's is fast approaching the territory which offers tangible proof of this maxim.

Malpractice Reform in SC?

Last Month, some of the members of the South Carolina House of Representatives did a great thing by sponsoring a new bill (H. 3489) that would help bring some needed legal reform to our State. The legislation is a tort reform bill that would help insulate S.C. businesses from all those frivolous lawsuits that we talk oh-so-fondly-of on this blog. Needless to say, I'm a strong supporter of this bill, as pretty much every State in the Union could use some kind of tort reform for a whole host of reasons. However, as you might expect if you know anything about S.C. politics, the bill has run into some problems up at the Statehouse.

As per the legislative process, it was sent to one of the House's subcommittees; unfortunately, all but one of the members of this subcommittee just happen to be lawyers. Consequently, the members of this subcommittee haven't bothered to get the legislative process for the tort reform bill going; preferring, instead, to leave it swimming in the abyss that is Subcommittee Hell

Lawyers opposed to meaningful tort reform; you're shocked, I'm sure.

Anyways, here's the legislation's sponsors' site - One Law Suit Away - so you can go read up on the bill and see (for those of you in South Carolina) if your State Legislator comes down on the right side of it.

The New Iraq

I suppose we'll get to see just how permanent all of this is whenever Obama finally does pull all of the troops out, be it in 16 months or (as per the S.O.F.A) December 2011, but, for now, this ABC News report should make you feel pretty good about how things are going in Iraq right now:



I think that speaks for itself.

Thanks, General Petraeus.

Sanford in 2012?

Could my good Governor, Mark Sanford, wind up as the Republican nominee for President in 2012? And, if so, might he actually win? Well, The American Conservative seems to think that, if the great behemoth of Hope n' Change turns out not to be the very Will of God it has thus far promised, Governor Sanford, thanks to his "stringent free-market philosophy" and "elegiac demeanor," might be well positioned to do both of those things:

Mark Sanford is easy to overlook. If Republicans need a champion in the Obama era, there are more colorful candidates than the South Carolina governor. He doesn’t play electric bass, or to the Religious Right, like Mike Huckabee. He has made no attempt to rewrite the GOP’s almost forgotten small-government playbook like Minnesota’s Tim Pawlenty or Louisiana’s Bobby Jindal. Though he is popular, Sanford seems incapable of playing a red-meat populist like Sarah Palin. He looks plain, his philosophy is old, and he has an elegiac demeanor that seems incompatible with electoral politics.

But unlike many other Republican politicians of his stature, Sanford recognizes that there are limits to ambition, that government treasuries are not bottomless, and that no ideology can captain the globe. If the promise of “hope” in the form of bailouts fails to revive the American economy, Mark Sanford will be the GOP’s most dangerous man in 2012.

In recent weeks, he has become the unofficial spokesman against Obama’s trillion-dollar economic stimulus plan.....While cable’s talking heads shout at him, he somberly quotes Adam Smith and Friedrich Hayek. He worries aloud that the bailouts represent a 'crisis of American civilization.' "

Here's the link to the full article, which is interesting both as a profile and 2012 look-ahead.

Insofar as the question of a run itself is concerned, it's been asked before and Sanford has repeatedly denied that he's got any future political plans after his term as Governor is up. Nevertheless, the race might actually set up rather well for him; since his term as Governor will end in January 2011, giving him a full year before the Iowa Caucuses to get a campaign up and running. Plus, he'd be an easy favorite in the all important SC-GOP Primary.

Will he? Who knows - and honestly, at this point, it's way too early for me to care all that much about the 2012 Elections. Besides, Sanford already has an important day job; and it's not going to be getting any easier over the next 2 years.

If At First You Don't Succeed

...then try, try again, right? And hey, if it just so happens to involve a few billion dollars of (yet to be earned) taxpayer dollars, well, so be it. Alas, while this attitude probably doesn't behoove folks like you and me, who will have to pay for all of these bailouts (plus interest!!) at some point in the future, it seems to be working out fabulously for the fine folks struggling to run AIG; who, it was announced today, are set to get a second round of bailout money from our Federal Government.

So, let's recap, shall we? Last fall, under the watchful eyes of President Bush and Secretary Paulson, we decided to sink billions of dollars in AIG because it was "too big to fail" and we needed it to turn around. Now, after we gave them all this money, they have come back to us to report $61.7 billion in 4th-Quarter losses, the largest loss ever reported by an American company. And, naturally, we decided it would be a really good idea to reinvest another $30 billion in this failing business.

Well, at least now we know why all the former Wall Street people now working in D.C left Wall Street - as the kinds of business decisions they're making on behalf of the government would have gotten them fired in the business world.

Seriously though, at what point does all this bailing out finally end? Hell, after we've gone in and bailed out AIG once, why shouldn't we go in and do it a second or third or even fourth time? Better yet, when do we reach the point where a company failing is finally less important than our government's checkbook failing?

Of course, such rhetorical questions help indicate the problems this kind of government intervention inherently entails; namely that, if you do it once, there's nothing to keep you from doing it again. Indeed, given the rationale that you used the first time around (i.e. 'too big to fail'), you're pretty much compelled, rationally at least, to repeat the bailout the second time around, too. Afterall, if it was too big to fail the first time, how can it not be the second (or third, or fourth) time around as well?

So how do we escape from this trap that our political logic has led us into? Well, as I see it, there are only two ways: either the company is fundamentally restructured so that it becomes, metaphorically speaking, small enough to the point where it can fail; or it ceases to fail and, once again, becomes a successful company. Unfortunately, by bailing out companies like AIG in the first place, the government makes it unlikely that either of these things will happen. That's because, through the bailout, the government has absolved AIG of its financial losses; losses which were incurred because of poor business decisions. In other words, somewhere along the line AIG took a risk that didn't pan out - which is o.k, because risk taking (and, yes, the occasional failure) is a part of business. Now, normally, AIG would be forced to take those losses, which would, most certainly, cause serious problems for the company.

Through the bailout, however, the government has decided to prevent AIG from having to go through the painful process of dealing with its bad business decisions. The problem is that companies, like people, aren't going to learn from their mistakes if they don't have to deal with the negative consequences of them. Screwing up and taking big-time losses are what cause companies to restructure and come up with a new business plan. Consequently, by using the government to bailout an AIG, you make it more likely that this company will fail again in the future because you've eliminated the gusto, if you will, of the market forces that would normally force it into severe restructuring.

And that, of course, means more bailouts - ad infinitum, I suppose - and also indicates to us that the bailout, like so many government programs that came before it, is self-perpetuating. Proving once again the validity of Reagan's maxim that government doesn't solve problems, only subsidize them.