Housing Crunch Explained

Does anyone really understand the the housing crunch and how Democrats (can anyone say Barney Frank and Chris Dodd?) worked to get Fannie Mae and Freddie Mac to give mortgages to people who could not pay them back? People are scratching their heads and thinking "just how does that create a problem other than for the people who now have to be evicted because of their inability to pay?" Well, maybe this story will help.......

Heidi is the proprietor of a bar in Detroit.

She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar.

To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.

Heidi keeps track of the drinks consumed on a ledger (thereby granting the customers' loans).

Word gets around about Heidi's "drink now, pay later" marketing strategy and, as a result, increasing numbers of customers flood into Heidi's bar. Soon she has the largest sales volume for any bar in Detroit.

By providing her customers freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages.

Consequently, Heidi's gross sales volume increases massively.

A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi's borrowing limit.

He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral!!!

At the bank's corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINK BONDS.

These "securities" then are bundled and traded on international securities markets.

Naive investors don't really understand that the securities being sold to them as "AAA Secured Bonds" really are debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb!!!, and the securities soon become the hottest-selling items for some of the nation's leading brokerage houses.

One day, even though the bond prices still are climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi's bar. He so informs Heidi.

Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts.

Since Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and Heidi's 11 employees lose their jobs.

Overnight, DRINK BOND prices drop by 90%.

The collapsed bond asset value destroys the bank's liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.

The suppliers of Heidi's bar had granted her generous payment extensions and had invested their firms' pension funds in the BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the
presumed value of the bonds.

Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.

Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multibillion dollar no-strings attached cash infusion from the government.

The funds required for this bailout are obtained by new taxes levied on employed, middle-class, nondrinkers who have never been in Heidi's bar.

NOW DO YOU UNDERSTAND?!

Who Are The Racists?

Every since Herman Cain recently said words to the effect that Blacks are brain washed in voting for Democrats, there has been a national debate on television news and somewhat in the printed media about which party best supports Black Americans.

There is no doubt that common perception is the the Republicans are the party of rich white people and the Democrats are the party for the poor, middle class and minorities. Well, in this case the truth does not lie in the middle......it is on the other end of the perception. Republicans are the ones since Abe Lincoln who have stood up for minorities, voting for the civil right act, cutting the bottom tax rates, using the military to enforce desegregation. The Democrats are the party who tried to kill the Civil Rights act, elected a former KKK member as Senator (the name Robert Byrd ring a bell?).

The Democrats have long tried and been overall successful as billing conservatives as "racists". In fact, in recent years the "race card" or making everything a racial debate as been successful in furthering Democrat policies and objectives. The Tea Party has been vilified as racists when in fact, you need to look no further than their overwhelming support for Herman Cain as proof that the Tea Party
movement is not about race.

Compare that to Democrat lawmakers who complain that Conservative calls for drug screening as a pre-requisite for welfare are racist. "Racist? How so you ask?" "Because it is clearly designed to keep welfare payments to Blacks", cry the Democrats. "Not unless you prejudge Blacks as drug users", says common sense.

Other elements or examples of racial themes are the concept that Barack Obama, being a Black man (actually he is half black but that's no different one way or another), would never garner enough white votes to get elected, especially with his lack of experience in anything but community organizing. Well, the election in November of 2008 sure proved that wrong. Now balance that with the fact that over 92% of Black American's voted for Obama. Now, who are the racists? In this case, voting their race rather than the best candidate.

Enter Herman Cain, a highly successful businessman, news and talk radio commentator, survivor of Stage IV cancer and former Federal Reserve Chairman. His view on the "brainwashing" of blacks is that through entitlements and set asides, the Democrats have been creating a false truth that the Dems, and only the Dems, are the party that is looking out for minorities. Herman Cain calls this something to the effect of "keeping blacks on the government plantation". And I think a responsible person would agree that this is "Giving a Man a Fish so he can eat today (and become dependant upon you)" concept as opposed to "Teaching Him to fish so he can catch his own fish every day and take care of himself and his family" philosophy.

Obamacare Top Item on Supreme Court Term Agenda

Obamacare will be on the agenda in the new Supreme Court term that opens today, setting the stage for one of the most important decisions in decades.

We'll also see cases argued including using Law Enforcement use of GPS tracking devices without a warrant; prisoner rights issues with strip searches in jail; and free speech arguments involving radio broadcasters and television "excited utterances" with expletives.

Additionally, there are several other important cases that may make their way to the Supreme Court including racial set asides for college admissions; homosexual-lesbian adoption rights; Arizona Illegal Immigration law.

The Obama healthcare law, which of course not counting Obama's rapid and historical depletion of this Nation's treasure through gigantic debt spending, is his top signature accomplishment (too bad both "accomplishments" are destroying this nation), and after being ruled unconstitutional in many states, the Supreme Court challenge sets up one of the most important tests of the powers of the Federal
Government vice the states, as well as the U.S. Constitution possibly ever to be decided by the Supreme Court.

note: There are 26 states with lawsuits against the federal government over Obamacare.

The latest pre-Supreme ruling on Obamacare came from U.S. appeals court ruling in Atlanta that struck down the law's mandate that all Americans have health insurance. Of course, Obama's defense is that Congress adopted the law to address a national crisis that put health insurance costs beyond the reach of millions of Americans and denied coverage to millions more. But we know that's a lie. The
Democrats, and the Democrats alone, jammed this bill down the throats of Americans, pushing aside Republicans during the what? 12 hours of analysis before the bill was voted on? Remember Nancy "the babbling idiot" Pelosi saying that "we'll have to sign the bill (and enact it into law), to find out what's in it".