December 3, 2009

From today's Wall Street Journal:

At a news conference Wednesday, Ms. Waters (Congresswoman Maxine Waters) suggested the caucus (the Congressional Black Caucus (CBC)) would oppose other White House priorities on the House floor. Caucus members will "use our power and our influence" to change policies on foreclosures and unemployment, as well as boost credit and federal-contracting programs for minority-owned businesses, among other things, she said.

.....A key clash between the caucus and the administration came during the Nov. 16 meeting between Mr. Geithner, Mr. Emanuel and members of the caucus. Caucus members grew increasingly frustrated at the 90-minute meeting, feeling their concerns weren't registering. Several times, Mr. Geithner told the members he couldn't do what they were asking.

At one point, Ms. Waters cited the example of Inner City Broadcasting. Messrs. Geithner and Emanuel interpreted the exchange to mean CBC members were pressuring them to lean on the bank to help a specific company, people familiar with the situation said. This led to a tense exchange between both sides.

In case it's been a while since you have read the U.S. Constitution, here is how the powers of the Legislative Branch are clearly defined:

Section 8 - Powers of Congress

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;

To establish Post Offices and Post Roads;

To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;

To constitute Tribunals inferior to the supreme Court;

To define and punish Piracies and Felonies committed on the high Seas, and Offenses against the Law of Nations;

To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;

To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

To provide and maintain a Navy;

To make Rules for the Government and Regulation of the land and naval Forces;

To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;

To provide for organizing, arming, and disciplining the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;

To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings; And

To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

I am very much struggling to find the clause that lines up with Congresswoman Water's interpretation of this section of the Constitution. And if you think the reference to "General Welfare" is an all encompassing phrase the Founding Fathers secretly stuck in the Constitution to make sure modern day liberals could do anything they deemed necessary and proper for the "general welfare" of the United States, please heed these words from James Madison, the Father of the Constitution:

"If Congress can employ money indefinitely to the general welfare, and are the sole and supreme judges of the general welfare, they may take the care of religion into their own hands; they may appoint teachers in every State, county and parish and pay them out of their public treasury; they may take into their own hands the education of children, establishing in like manner schools throughout the Union; they may assume the provision of the poor; they may undertake the regulation of all roads other than post-roads; in short, every thing, from the highest object of state legislation down to the most minute object of police, would be thrown under the power of Congress.... Were the power of Congress to be established in the latitude contended for, it would subvert the very foundations, and transmute the very nature of the limited Government established by the people of America."

December 2, 2009

This should scare you

The Reality of Acutally Running Something

This piece from Jonah Goldberg goes a long way in explaining why I would label myself a conservative.

Forget about all of the flummery and empty rhetoric of what makes a Republican a Republican or a Democrat a Democrat. What I care about is efficiency and effectiveness. The two primary reasons I believe in a limited federal government are: 1) Freedom and 2) Efficiency. If I thought government bureaucrats and high-brow intellectuals could run or health care system, financial sector, auto industry, etc. better than the private sector, I guess you be able to call me a liberal. The fact remains that government bureaucrats and high-brow intellectuals have never and will never be able to walk and chew gum at the same time much less run an extremely sophisticated and complex PRIVATE industry.

I worked for both a member of the U.S. Senate and House of Representatives while living in D.C. The biggest takeaway for was best explained by the late and great Ronald Reagan who said, "The nine most dangerous words in the English language are 'I'm from the government and I'm here to help.'"

Some of the highlights of the Mr. Goldberg's article:

What I don’t think we hear enough about is intellectual hypocrisy. What’s that? Well, if moral hypocrisy is saying what values people should live by while failing to follow them yourself, intellectual hypocrisy is believing you are smart enough to run other peoples’ lives when you can barely run your own.

I know many smart liberals for whom no idea is too complex, no concept or organizational flow chart too hard to grasp.
They want government to take over this, run that, manage some other things, and in all cases put people exactly like them in charge of pretty much everything. Many are geniuses, with SAT scores so high you could get a bloody nose just looking at them.

But you wouldn’t ask one to run a car wash.


The chairman of a small college’s English department thinks it’s obvious intellectuals should take over health care, but he can’t manage the class schedules of three professors or run a meeting without it coming to blows or tears. A pundit defends government intervention in almost every sphere of economic life, but he can’t figure out how to manage the interns or his checking account.

The most famous story of an intellectual hypocrite getting his comeuppance is the tale of George McGovern and his inn. The senator, 1972 presidential nominee and college professor thought he could run a vast, technologically sophisticated nation with a diverse population and an entrepreneurial culture. Then, after leaving Washington, he bought an inn in Connecticut to while away his retirement years. For a guy as smart as him, running an inn should have been child’s play. But it went belly-up before the end of the year, with a contritely befuddled McGovern marveling at how much harder running a business was than he thought.

Now, I also know lots of conservatives who are basket cases at everything other than reading and writing books and articles, giving speeches, and thinking Big Thoughts (likewise, I know liberals who despise conservative moralizing about sex and religion who nonetheless live chaste, pious lives themselves). The point is that conservatives don’t presume to be smart enough to run everything, because conservative dogma takes it as an article of faith that no one can be that smart.

Moral hypocrisy is still worth exposing, I guess. But we are living in a moment when revealing intellectual hypocrisy should take precedence. A J. P. Morgan chart reprinted on the “Enterprise Blog” shows that less than 10 percent of President Obama’s cabinet has private-sector experience, the least of any cabinet in a century. From the stimulus to health-care reform and cap-and-trade, Washington is now run by people who think they know how to run everything, when in reality they can barely run anything.

Long Live the King!

December 1, 2009

Best Article Ever Written by a Man Who Was Just Hit by a Car

In 1931, Churchill was crossing Fifth Ave in New York and was hit by a taxi cab.

While recovering in the hospital, Churchill penned an article about his ordeal.

The excerpt below is classic Churchill:

I certainly suffered every pang, mental and physical, that a street accident or, I suppose, a shell wound, can produce. None is unendurable. There is neither the time nor the strength for self-pity. There is no room for remorse or fears. If at any moment in this long series of sensations a grey veil deepening into blackness had descended upon the sanctum, I should have felt or feared nothing additional.

Nature is merciful and does not try her children, man or beast, beyond their compass. It is only when the cruelty of man intervenes that hellish torments appear. For the rest, live dangerously, take things as they come. Fear naught, all will be well.

16 Investing Rules from Walter Schloss

From a 1994 lecture given by the legendary investor walter schloss

1. PRICE IS THE MOST IMPORTANT FACTOR TO USE IN RELATION TO VALUE

2. TRY TO ESTABLISH THE VALUE OF THE COMPANY. REMEMBER THAT A SHARE OF STOCK REPRESENTS A PART OF A BUSINESS AND IS NOT JUST A PIECE OF PAPER.

3. USE BOOK VALUE AS A STARTING POINT TO TRY AND ESTABLISH THE VALUE OF THE ENTERPRISE. BE SURE THAT DEBT DOES NOT EQUAL 100% OF THE EQUITY. (CAPITAL AND SURPLUS FOR THE COMMON STOCK).

4. HAVE PATIENCE. STOCKS DON’T GO UP IMMEDIATELY.

5. DON’T BUY ON TIPS OR FOR A QUICK MOVE. LET THE PROFESSIONALS DO THAT, IF THEY CAN. DON’T SELL ON BAD NEWS.

6. DON’T BE AFRAID TO BE A LONER BUT BE SURE THAT YOU ARE CORRECT IN YOUR JUDGMENT. YOU CAN’T BE 100% CERTAIN BUT TRY TO LOOK FOR THE WEAKNESSES IN YOUR THINKING. BUY ON A SCALE DOWN AND SELL ON A SCALE UP.

7. HAVE THE COURAGE OF YOUR CONVICTIONS ONCE YOU HAVE MADE A DECISION.

8. HAVE A PHILOSOPHY OF INVESTMENT AND TRY TO FOLLOW IT. THE ABOVE IS A WAY THAT I’VE FOUND SUCCESSFUL.

9. DON’T BE IN TOO MUCH OF A HURRY TO SEE. IF THE STOCK REACHES A PRICE THAT YOU THINK IS A FAIR ONE, THEN YOU CAN SELL BUT OFTEN BECAUSE A STOCK GOES UP SAY 50%, PEOPLE SAY SELL IT AND BUTTON UP YOUR PROFIT. BEFORE SELLING TRY TO REEVALUATE THE COMPANY AGAIN AND SEE WHERE THE STOCK SELLS IN RELATION TO ITS BOOK VALUE. BE AWARE OF THE LEVEL OF THE STOCK MARKET. ARE YIELDS LOW AND P-E RATIONS HIGH. IF THE STOCK MARKET HISTORICALLY HIGH. ARE PEOPLE VERY OPTIMISTIC ETC?

10. WHEN BUYING A STOCK, I FIND IT HELDFUL TO BUY NEAR THE LOW OF THE PAST FEW YEARS. A STOCK MAY GO AS HIGH AS 125 AND THEN DECLINE TO 60 AND YOU THINK IT ATTRACTIVE. 3 YEAS BEFORE THE STOCK SOLD AT 20 WHICH SHOWS THAT THERE IS SOME VULNERABILITY IN IT.

11. TRY TO BUY ASSETS AT A DISCOUNT THAN TO BUY EARNINGS. EARNING CAN CHANGE DRAMATICALLY IN A SHORT TIME. USUALLY ASSETS CHANGE SLOWLY. ONE HAS TO KNOW MUCH MORE ABOUT A COMPANY IF ONE BUYS EARNINGS.

12. LISTEN TO SUGGESTIONS FROM PEOPLE YOU RESPECT. THIS DOESN’T MEAN YOU HAVE TO ACCEPT THEM. REMEMBER IT’S YOUR MONEY AND GENERALLY IT IS HARDER TO KEEP MONEY THAN TO MAKE IT. ONCE YOU LOSE A LOT OF MONEY, IT IS HARD TO MAKE IT BACK.

13. TRY NOT TO LET YOUR EMOTIONS AFFECT YOUR JUDGMENT. FEAR AND GREED ARE PROBABLY THE WORST EMOTIONS TO HAVE INCONNECTION WITH PURCHASE AND SALE OF STOCKS.

14. REMEMBER THE WORK COMPOUNDING. FOR EXAMPLE, IF YOU CAN MAKE 12% A YEAR AND REINVEST THE MONEY BACK, YOU WILL DOUBLE YOUR MONEY IN 6 YRS, TAXES EXCLUDED. REMEMBER THE RULE OF 72. YOUR RATE OF RETURN INTO 72 WILL TELL YOU THE NUMBER OF YEARS TO DOUBLE YOUR MONEY.

15. PREFER STOCK OVER BONDS. BONDS WILL LIMIT YOUR GAINS AND INFLATION WILL REDUCE YOUR PURCHASING POWER.

16. BE CAREFUL OF LEVERAGE. IT CAN GO AGAINST YOU.

November 30, 2009

Best argument against democracy

Winston Churchill once said that the best argument against democracy is a five minute conversation with the average voter.

This goes a long way in proving Mr. Churchill right:

The grotesquely wrong answers that some contestants give on quiz programmes would surely make most participants think twice before applying.

Here are a selection of the funniest answers taken from a new book...


THE ARTS

PRESENTER: Who painted the ceiling of the Sistine Chapel?

CALLER: Leonardo di Caprio.


BIOLOGY

    PRESENTER: Was the Tyrannosaurus Rex a carnivore or a herbivore?

    CONTESTANT: No, it was a dinosaur.

    (Are You Smarter Than A Ten-Year-Old?)


    ANNE ROBINSON: What type of bear lives in the Arctic?

    CONTESTANT (after much thought): Penguin.

    (The Weakest Link)


    CLASSICS

    ANNE ROBINSON: What was the principal language used by the ancient Romans?

    CONTESTANT: Greek.

    (The Weakest Link)


    DOMESTIC SCIENCE

    PRESENTER: Emmental and Double Gloucester are both types of what?

    CALLER: Banks.

    (Breakfast Toaster Quiz, Heart FM)


    ENGLISH LITERATURE

    JEREMY PAXMAN: Of all Beatrix Potter's books, which is the only one to feature a human in the title?


    ANTONY BEEVOR (author and historian): Peter Rabbit (Celebrity edition of University Challenge)

    (BBC Radio 2)


    ANNE ROBINSON: What 'B' was a pseudonym used by Charles Dickens?

    CONTESTANT: Bart Simpson.


    FILM STUDIES

    STEVE WRIGHT: Johnny Weismuller died on this day. Which jungle-swinging character clad only in a loincloth did he play?

    CALLER: Jesus.


    SPORT

    ANNE ROBINSON: The point on a golf club or a tennis racket that gives the best contact is alliteratively known as the what spot?

    CONTESTANT: The g-spot.


    ANNE ROBINSON: In 1975 the first black tennis player to win the Wimbledon Men's Singles title was Arthur who?

    CONTESTANT: Askey.


    ANNE ROBINSON: Who won the U.S. Open Tennis Championship wearing a black dress modelled on Audrey Hepburn's in Breakfast at Tiffany's?

    CONTESTANT: Roger Federer.

    (All the Weakest Link)


    MUSIC

    PRESENTER: Name the festival started in 1895 by Sir Henry Wood.

    CALLER: Glastonbury.


    PRESENTER: What
    name does Cat Stevens go under now? I'll give you a clue, he became a Muslim... (LBC 97.3FM)

    CALLER: Abu Hamza?

    (TalkSPORT)


    GEOGRAPHY

    DARREN DAY: What area of Germany is the cake named after, made with chocolate, cream, kirsch and cherries?

    CONTESTANT: Belgium.

    (Spin Star, ITV1)


    PRESENTER: What is the capital of Cuba?

    CALLER: Ermmm...

    PRESENTER: Take your time.

    CALLER: Ermmm...

    PRESENTER: Go on, have a guess.

    CALLER: Is it Belgium?

    PRESENTER: Er, not quite.

    (Sun FM, Sunderland)


    DALE WINTON: Alderney and Sark - are they part of the Channel Islands?

    CONTESTANT: Ooooh! Is that the English Channel? I don't know, are there islands in the English Channel? I've never heard of any. France- that's near the English Channel isn't it?

    (In It To Win It, BBC1)


    ANNE ROBINSON: Pakistan was part of which other state until it achieved independence in 1947?

    CONTESTANT: Bulgaria.

    (The Weakest Link)


    DAVE LEE TRAVIS: In which European country are there people called Walloons?

    CALLER: Wales


    QUIZMASTER: Where is the Sea of Tranquility?

    CONTESTANT: Ibiza. (RI:SE, Channel 4)


    MATHS

    ANNE ROBINSON: What kind of dozen is 13?

    CONTESTANT: Half a dozen.

    (The Weakest Link)


    MEDICINE

    STEVE WRIGHT: On what part of the body is a lobotomy performed?

    CONTESTANT: The bottom.

    (BBC Radio 2)


    HISTORY

    PRESENTER: What was the date of the Battle of Hastings?

    CONTESTANT: Ooooh! Er.... was it 1974?

    (Galaxy Radio, Leeds)


    ANNE ROBINSON: Which English queen rode a chariot with knives on the wheels?

    CONTESTANT (full of confidence): Victoria!

    (The Weakest Link)


    PRESENTER: Which ancient army was discovered in in 1974?

    CONTESTANT: The Territorial Army.

    (Metro Radio)

    CONTESTANT: Heil. (BBC Radio Merseyside)PRESENTER: What was Hitler's first name?

    (Breeze FM)


    ANNE ROBINSON: What 'T' did British POWs use to escape from Second World War German prison camps?

    CONTESTANT: I don't know. Was it herbal?

    (The Weakest Link)


    POLITICS

    PRESENTER: Who was the Prime Minister before Tony Blair

    CALLER: George Bush

    (Viking FM)


    PRESENTER: Name Prince Charles's younger sister.

    CALLER: Is it Camelia?

    (The Ugly Phil Breakfast Show, Kerrang! Radio)


    RELIGIOUS STUDIES

    PRESENTER: What religion was Guy Fawkes?

    CALLER: Jewish.

    PRESENTER: That's close enough.

    (BRMB)


    ANNE ROBINSON: In Roman Catholicism, baptism, confirmation and matrimony are three of the seven what?

    CONTESTANT: Deadly sins.

    (The Weakest Link)


    SCIENCE AND TECHNOLOGY

    ANNE ROBINSON: What man made structure built during the 3rd century BC is often said to be visible from space?

    CONTESTANT: The Millennium Dome.

    (The Weakest Link)


    Presenter: Which prominent Birmingham family had a toposcope constructed in 1923 for the top of Beacon Hill in Lickey Hills?

    CALLER: The Osbournes.

    (BBC Radio WM)


    GENERAL STUDIES

    TERRY WOOGAN: Which Duke resides at Woburn Abbey?

    CONTESTANT: Hazzard. (Wogan's Perfect Recall, Channel 4)


    PRESENTER: According to legend, who shot an apple off the top of his son's head?

    CONTESTANT: Well, straightaway I'm thinking of Isaac Newton.

    (Are You Smarter Than A Ten-Year-Old?)

    The good 'ole days

    PLAQUE LISTING RULES FOR HOTEL PATRONS AT A TELLURIDE, COLORADO HOTEL in 1906:


    DON’T SHOOT THE PIANIST, HE’S DOING HIS DAMNEDEST.

    NO HORSES ABOVE THE FIRST FLOOR.

    NO MORE THAN 5 TO A BED.

    FUNERALS ARE ON THE HOUSE.

    BEDS 50¢, BEDS WITH SHEETS 75¢

    One more on Climategate and Al Gore

    Some great stuff here:

    But take, just for example, the famous picture of polar bears on a melting ice-floe, supposedly doomed victims of global warming.


    The USA’s ex-Vice President, the propagandist Al Gore, got audiences going ‘Aaah!’ by saying the bears had ‘nowhere else to go’. Really? The picture was taken in August, when the Alaskan ice always melts. The polar bears were fine. Think about it.


    They can swim and they weren’t far from land. Recent studies show that most polar bear populations are rising.


    The world was warmer than it is now in the early Middle Ages, long before industrial activity increased CO2 output, a fact that the warming fanatics have worked very hard to obscure.


    Oh, and the most important greenhouse gas by far is not CO2 but water vapour, which is not influenced by human activity at all.


    Meanwhile, an English court of law (despite buying the CO2 argument) has identified nine significant errors of fact in Gore’s Oscar-winning alarmist film An Inconvenient Truth, ludicrously being inflicted on children in British schools.


    Among these: sea levels are not going to rise by 20ft any time soon; there’s no evidence that atolls in the Pacific have been evacuated because of rising waters; the Gulf Stream is not going to shut down; the drying-up of Lake Chad, the shrinking of snow on Mount Kilimanjaro and Hurricane Katrina were none of them caused by global warming; the only polar bears that have drowned were four that died in a storm


    In my experience, people who employ alarmism, and who turn with rage on their critics, do so because they lack confidence in their case. Watch their behaviour at the coming Copenhagen climate conference, a festival of panic and exaggerated woe.


    This particular frenzy, if not checked, could end by bankrupting the West and leaving us sitting in the cold and the dark whistling for a wind to power our dead computers – while China and India surge on to growth and prosperity because they have had the sense to ignore the whole stupid thing.

    Climategate

    What's so very sad about "Climategate" is how little play this will get from any government leaders or the mainstream media. There is simply too much too lose both financially and politically for the leftists and greenies to be wrong about "global warming".

    This article in the London Daily Telegraph hits on some really key points about this story.

    The reason why even the Guardian's George Monbiot has expressed total shock and dismay at the picture revealed by the documents is that their authors are not just any old bunch of academics. Their importance cannot be overestimated, What we are looking at here is the small group of scientists who have for years been more influential in driving the worldwide alarm over global warming than any others, not least through the role they play at the heart of the UN's Intergovernmental Panel on Climate Change (IPCC).

    Professor Philip Jones, the CRU's director, is in charge of the two key sets of data used by the IPCC to draw up its reports. Through its link to the Hadley Centre, part of the UK Met Office, which selects most of the IPCC's key scientific contributors, his global temperature record is the most important of the four sets of temperature data on which the IPCC and governments rely – not least for their predictions that the world will warm to catastrophic levels unless trillions of dollars are spent to avert it.

    Dr Jones is also a key part of the closely knit group of American and British scientists responsible for promoting that picture of world temperatures conveyed by Michael Mann's "hockey stick" graph which 10 years ago turned climate history on its head by showing that, after 1,000 years of decline, global temperatures have recently shot up to their highest level in recorded history.

    .....The senders and recipients of the leaked CRU emails constitute a cast list of the IPCC's scientific elite, including not just the "Hockey Team", such as Dr Mann himself, Dr Jones and his CRU colleague Keith Briffa, but Ben Santer, responsible for a highly controversial rewriting of key passages in the IPCC's 1995 report; Kevin Trenberth, who similarly controversially pushed the IPCC into scaremongering over hurricane activity; and Gavin Schmidt, right-hand man to Al Gore's ally Dr James Hansen, whose own GISS record of surface temperature data is second in importance only to that of the CRU itself.

    .....But the question which inevitably arises from this systematic refusal to release their data is – what is it that these scientists seem so anxious to hide? The second and most shocking revelation of the leaked documents is how they show the scientists trying to manipulate data through their tortuous computer programmes, always to point in only the one desired direction – to lower past temperatures and to "adjust" recent temperatures upwards, in order to convey the impression of an accelerated warming. This comes up so often (not least in the documents relating to computer data in the Harry Read Me file) that it becomes the most disturbing single element of the entire story. This is what Mr McIntyre caught Dr Hansen doing with his GISS temperature record last year (after which Hansen was forced to revise his record), and two further shocking examples have now come to light from Australia and New Zealand.

     
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