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Conservative Review Issue #42 Kukis Digests and Opines on this Week's News and V iews September 28, 2008 In this Issue: Call Me if You Need Me Missing Issues More Clinton Bombs Question for Obama Media Reaction to the Debate Quote of the Week Obama's Corrupt Campaign Advisors Quote of the Week #2 More from Bill Clinton Quote of the Week #3 Rush on the Financial Crisis Vids of the Week Rush Advices McCain: Turn Sarah Loose Predictions Desperate Obama Supporters Told You So Dems Have the Votes and Bush; Why not do the $700 Billion Bailout? Community Reinvestment Act Observation of the Week Additional Rush Links Observation of the Week #2 Observation of the Week #3 Too much happened this week! Enjoy... Missing Headlines Snooze-fest Debate Tax Breaks for 95% of All Americans The cartoons come from: Obama Lies www.townhall.com/funnies. Bush Tax Cuts for the Rich If you receive this and you hate it and you don't Allow Me to Be Sexist for a Moment want to ever read it no matter what...that is fine; Insane Palin Haters email me back and you will be deleted from my Obama, Community Organizer by Michelle Malkin list (which is almost at the maximum anyway). Obama Puts Lipstick on a Pig Freddie Mac and Fannie Mae I do not accept any advertising nor do I charge for We Need to Protect Main Street this publication. What I Don't Quite Understand It is a long issue today; I had a lot to say, and Solutions to the Credit Crunch many hours sitting around in the dark to think. Links (Including several great Palin links) You have been forewarned. The Rush Section Missing Issues Bill Clinton Drops Neutron Bombs on Obama The Government wants your Home Living in Texas sometimes has its drawbacks, and Obama Teleprompter Trick one of them was named Ike. This is my 9th day The Fringe Left Support Barry without electricity, cable or internet. I do have a generator, which allows me to use one appliance/device at a time. The gas line I was in managed to get on TV two dozen times, today took nearly 2 hours, reminding me of the something she likes to do. However, in the good old Carter days. aftermath, most of the cleanup and progress was made by the utilities companies (a branch of big There are about 6 million people in Harris County, oil), large conglomerates (also known as Wal- and I heard that 4–4.5 million were without Mart, HEB, Kroger, various gas stations) and electricity (that would include those outside of individuals. It is how Americans should function; Harris county, down Galveston way). not waiting for Uncle Sam to come along and say, "I feel your pain" and give me a packet of rations Like most people, I am not sitting on my butt which will last me for a day. waiting for FEMA to knock on the door and ask me if there is anything that I need. I might do Most of you probably know more about the that if I was working on a comedy routine. storm than I do, since I was 13 days without electricity and 14 days without cable television I live about a 3 hour drive from where Ike made and internet. I discovered something called landfall, and once it hit shore, it traveled quickly reading, which I may try again sometime. north to my house. It made the trip in 6 or 7 hours. I slept though much of it, but in talking to various people, it was an exciting night. One couple, looking out their 2nd story window, would sometimes see their trees and sometimes not, the wind blowing them completely out of sight. I have since found out that this storm went all the way up to Ohio, disturbing the peaceful life of some of my relatives up there. That night, when the eye was overhead (which means, it is quiet—no rain and no wind), I could see something laying on my back porch. Since it was not a body, I didn't worry too much about it. The next morning, I found that a 35' tree at the corner of my house had fallen and taken out my newly built 2nd floor deck. This is across the street from me. In the time since then, government has stepped Questions for Obama up, to some degree. I have seen with my own eyes government handouts at one church. Will you immediately release all the records of However, most of the subsequent response from the Annenberg Challenge to Stanley Kurtz? Will individuals has been, clean up your own yard, you hold a press conference and take any and all help your neighbor, buy a buttload of generators questions on the Annenberg Challenge? and sell them by the side of the road. Wal-Mart sold about a million 3 gallon gas cans. When it You have spoken of your community organizing came to moving people out of Galveston, the efforts when it came to helping people hold onto government did an excellent job. There was no finger-pointing, and probably Shirley Jackson Lee Page -2- their homes and helping them retrain for jobs. Could you produce 12 people to vouch for this? Quote of the Week #3 [From what I have read, Obama's community Joe Biden, a week ago Saturday: "Barack Obama organizing had a lot more to do with registering ain't taking my shotguns, so don't buy that more people to vote Democrat than anything malarkey. If he tries to fool with my Beretta, he's else; it appears as though he worked under the got a problem." auspices of ACORN]. Rush comments: Now, I'm wondering if the Secret I have never heard you use the words victory or Service called Biden and said, "Did you just win in the same sentence with Iraq. Why is that? threaten the Democrat presidential nominee?" Vids of the Week Biden tells about how FDR, as president, got on tv to soothe the public about the stock market crash: http://www.youtube.com/watch?v=Glrnb_G34 E4 There needs to be a 24-hour all Biden television station. Predictions I have said for several weeks now that McCain is going to beat Obama badly. The polls for awhile have been moving in that direction, but they have Quote of the Week reversed themselves. Most commentators keep saying this election is too close to call. It isn't. "If a business is so large that, their going out of business will cause a depression and therefore, I suggested that Obama may dump Biden from requires a government bail-out, that business is the ticket and add Hillary Clinton. This was not too large." Some call-in dude to a radio show. original with me, but I am leaning more and more towards this as a possible October surprise. Maybe not the October surprise, but one of them. Quote of the Week #2 Biden would have to drop out of the race and make it seem as though this was completely of 80% of Americans believe that the top tax rate his own volition to do so. Obama would have had ought to be 20% or lower. There is a tax group to promise him a sweet place to go (FNMA?). where this comes from, but you are going to have Such a change will boost Obama's numbers, but to find it. nowhere near enough at this point to put him back in the running. Had he chosen Hillary from Page -3- the get-go (his first big decision), he would have presidential campaign. We are moving closer and made this a close election. closer to off-shore drilling and, I hope, nuclear power. All along, I told you the Dems would cave At some point in the campaign, McCain will here, and they are. Even their non-drilling drilling reveal to us that one of most important assets of bill went down in defeat, like much of what they their ticket is, he and Palin are not lawyers, so attempt to do. that when you ask them a question, you usually get a clear answer to question asked. Maybe I have continually told you that one of the biggest they will run an ad entitled, the People versus the problems with the mortgage industry is the Lawyers. Disclosure: I will recommend to the ridiculous loans made for social justice without McCain campaign that they do this; and they business considerations (like, will they pay on the always listen to me. ( loan). This is finding its way more into the media. And, as I have said, this are not the only reason, Ultra-environmental California will start drilling but it is a significant one. offshore within the next couple years. They are too much in debt to do anything else. You cannot hire hundreds of thousands of tax collectors and state workers, all of whom must be paid a substantial retirement, and make it work. They are finding this out. A smart move for California would be to scrap its state income tax system and institute a high sales tax. They won't do this, because that makes too much sense. A state income tax is just not cost-effective, considering the salaries, state buildings, infra-structure and retirement which is a part of this package. It would be interesting to see how much money is spent in California versus how much is collected there. In any case, financially, California has no choice. They either have to be smart about their tax system or they have to drill. They will drill. What will make this interesting is, how will they deal with being knee-deep in lawsuits from Community Reinvestment Act environmentalists? By the way, in case you are interested, the [A disclaimer: I do not have the gift of pertinent legislation involved is known as the prophecy—no one does at this time—but these Community Reinvestment Act. It was passed are reasonable predictions based upon the back in 1977, but Bill Clinton, in 1993 (with a political climate and being able to read the Democratic Congress) changed up the rules of historical trends of the day] this act, so that more income groups and races had a shot at home ownership, in spite of having lousy credit. George Bush tried to fix this Told You So problem back in 2003, but it was not passed, failing on pretty much a party-line vote. Although drilling for domestic oil is an extremely Representative Barney Frank (D-MA) claimed of important issue, it won't be a major issue in the the thrifts "These two entities-Fannie Mae and Page -4- Freddie Mac-are not facing any kind of financial crisis, the more people exaggerate these Observation of the Week #3 problems, the more pressure there is on these companies, the less we will see in terms of Michael Medved pointed out that the 3 states to affordable housing." do the best economically from 1996 to 2006 were Florida, Texas, and Arizona, all right to work states. Those states which did the worst: Illinois, Observation of the Week Michigan and Ohio. Which of those states lean toward being the most conservative? Which of The biggest difference between New Orleans those states tend to be the most liberal? It during Katrina and Galveston during Ike: almost should not be a shock that, the more that a state everyone was evacuated from Galveston Island, taxes business, the more likely these businesses so those who needed rescuing were in the relocate—not overseas, by the way, but generally dozens. In New Orleans, those to a different state. who needed rescuing were in the thousands. Buses and shelters and police were are involved in moving people from Galveston and other areas along the Texas coast; for New Orleans, no such provision was made. Police and bus drivers were told that they could just leave and go wherever. No thought was given to, what happens when thousands of people show up to the dome, where there are no provisions for them. Observation of the Week #2 For the storm before Ike, which hit New Orleans, the big difference was, Missing Headlines Louisiana's finger-pointing governor had been replaced by Bobby Jindal, who worked with the Congress Investigates FNMA and FHLMC for other 4 Republican governors in the area, and government Corruption (they should, but they with the local mayors (who have real aren't). responsibilities). No finger-pointing, and people were evacuated, and shelters were made Biden says, FDR on TV in 1929 available in the neighboring states. It's how government ought to work. http://hotair.com/archives/2008/09/23/biden- on-fdrs-management-of-the-1929-crash/ Page -5- Come, let us reason together.... already had leanings one way or the other and this confirmed their leanings. Snooze-fest Debate The host was good and quite fair, and he allowed for longer answers without giving the two I watched the debate the other night with Paul, candidates a countdown or a yellow/red light. He and, apart from the margaritas, I am not quite tried to get the candidates to debate with one certain that we could have sat through all of it. It another, but neither one seemed to be game for reminded me of two lumbering heavyweights, that (although my mom tells me that Obama doing a lot of footwork in the ring, but neither was). one landing many punches, with a split-decision tie at the end. Almost everything which McCain said, I have heard him say before. I think that all of his Neither candidate delivered a knock-out punch; speech writers did is encourage him to say, neither candidate was all that inspiring. My "Senator Obama just does not understand this..." mother, who watched this on public TV, told me However, they did not write him any new lines that most of the commentators believed Obama nor did he come up with any (apart from a joke, to be the winner ("They have republicans too, which I have since forgotten). Gary"). I suspect that she believes that the news is generally unbiased as well (apart from I guess that Obama's handlers told him to say, FoxNews, of course). "Well, John is right about that..." eight times? Obama was well-prepped, and did not say, "Uh Paul and I watched the commentary on FoxNews, uh uh" at all. His constant misuse of the English and every time a new commentator came up, I language (like, gonna) got on my nerves, but that would tell Paul, "This guy is really good." None of could be that I just don't care much for Obama in them made the after-debate commentary much the first place. This is not much different than more interesting. Even the great Charles liberals who cringe when they hear Bush's voice Krauthammer said something which was (actually, the voices which make me cringe the altogether forgettable. All of their conservative most are Dodd's, Kerry's and Gore's, in that commentators thought McCain won and all of order; Obama is nowhere near that viscerally their liberal commentators thought that Obama irritating to me yet). won. That was quite shocking. Obama, when challenged thrice to name The most interesting segment was with Frank programs which he would cut or reduce, finally Luntz, who has groups of 30 or so mixed voters made it clear that there were 3 new programs who voice their opinions (calling it which had to be added to the list of things which interesting might be stretching things somewhat). must be done (free medical coverage, early A couple of these people said how Obama came childhood education, and one other one—not across as caring more for the common man. I little programs). McCain on this point, at least, wonder if any of them are aware of how much offered up an across-the-board spending freeze Obama cares about his half-brother George (with the exception of the military, veterans Obama? benefits, and one other thing). I can't see that either candidate wooed anyone Obama left several openings for McCain, and from the other camp; I doubt that many McCain never took these openings. He needs to independents were captured either, unless they go after Obama's ridiculous assertion that he will Page -6- provide tax cuts for 95% of Americans. McCain (Obama's cut off between being middle-class and left that unchallenged, and that was a big rich). I have heard the number that 2 out of 3 tax mistake. returns in this rich class are actually businesses. I have not confirmed that elsewhere. What is the Another opening was about regulating FNMA and effect of taxing small businesses big time? Some FHLMC—when Obama went off on this, McCain of them will be closed down, most will not be should have reminded him that McCain did able to do additional hiring, and their profit line support dealing with these institutions years ago, will be cut back considerably. This is more than but Obama has no such history. class warfare; it is an attack on small businesses and freedom. Besides hearing from my mom who won the debate, I heard CNN give their opinion. They took a survey an came up with 51% Obama and Obama Lies 38% McCain. However, they admitted that more democrats than republicans responded, so maybe Obama has claimed that he is only going to tax it was about even. However, they quickly added, the top 5%, that there are 3 programs which are since Obama is ahead in the polls, that would absolutely necessary for him to put through make him the winner of the debate. Thank you, (public pre-kindergarten education and CNN, for you excellent unbiased coverage. I hope government health care are two of them) and he that the shivers running up and down your legs claims that no one will be taxed more than they over this Obama victory have subsided by now. were taxed under Ronald Reagan. He has also promised that he will run a pay-as-you-go FoxNews had a dial-in poll (who on earth would administration. participate in something like this?). It was 86% who thought McCain won the debate. FoxNews Reagan brought down the top tax rate to 28%. mentioned this, but quickly moved on. Obama wants it higher. He is lying. Palin and Biden are next week. Next to Gravel Raising the rate on 5% of American population in and Kucinich, Biden is the most interesting order to fund his programs. Raising the interest Democrat to listen to. Even though a lot of what rate a few percentage points on this 5% will come he says, he doesn't mean, he sounds as if he no where near covering the cost of Obama's top does. Also, Biden won't be handled, so he will 3 programs. Furthermore, as we have seen in the say anything that pops into his head, including, past, raising taxes will not even guarantee "Hillary might have been a better choice for vice additional income for the government. It will president." Given Biden going off the reservation guarantee a business slow-down, and possibly a and Palin being new to national politics, and also recession. less-disciplined, this might be the bright light of the debate series. McCain needs to run ads on these quotes, all available on YouTube, and show, in 30 seconds, Tax Breaks for 95% of All Americans that Obama is lying. McCain needs to hit Obama hard on this. Small Bush Tax Cuts for the Rich businesses, which provide many of our jobs, file taxes on individual tax forms. Most of these This is one of the biggest lies perpetrated on the businesses make more than $250,000/year public. 40% of Americans do not pay taxes (apart Page -7- from their FICA taxes). So, anyone who lowers When I read through these criticisms of Sarah taxes is lowering taxes for the top 60% of Palin by liberal feminists, I suddenly realized, American wage earners. Technically, all tax these women aren't acting any different than breaks are tax cuts for the rich. there 16 year-old counterparts, except that their vocabulary is more extensive. Sarah is not in Obama is promising tax breaks to those in this their group, and they are jumping all over her and lower 40%. This means, he wants the saying any angry thing which comes into their government to cut them a check for pretty little feminist heads. $500–$1000—people who have not paid taxes—which money comes out of the pocket of Maureen Dowd writes: As more and more those who pay taxes. This is called income titillating details spill out about the Palins, redistribution, and, in some churches, social Republicans riposte by simply arguing that things justice. like Todd's old D.U.I. arrest or Sarah's messy family vengeance story will just let them relate better to average Americans - unlike the lofty Obamas. I think the problem is this: they have spelled out what it means to be a good feminist. They have made it clear that there is a way that you climb the ladder up to the top, which is by following in their footsteps and being like them. Sarah isn't like this. Feminists will never celebrate Sarah becoming vice president and then president. If she gets a high approval rating here, like in Alaska, it won't include these catty lib-gals. Do you remember when Clarence Thomas became a chief justice? Even Obama disparaged his being chosen. Obama was about to say, "He Allow Me to Be Sexist for a Moment should not have been appointed because he did not have enough experience" but he caught I've known women pretty much all my life and himself and said something else. Liberals some of my best friends are women. In fact, one attacked Clarence Thomas in every way that they member of my family is a woman! However, could, but he stood firm, realizing that he would women are quite different than men are. never been seen as a Black man who broke a Women can be quite catty toward one another, significant color barrier. particularly when they perceive themselves as being in an ingroup, and the person they don't Unless you are one of them, your achievements like, they see as being in some outgroup. Have just don't count. you ever watched a pack of wolves attack and destroy the weak wolf of the litter? Same deal, except wolves are generally a lot nicer about it. Page -8- McCain-Palin's America, citizens who are Insane Palin Haters protesting are being charged as terrorists. This means that a violent war had been declared on Naomi Wolfe warns us that Sarah Palin is the American citizens. A well known reporter leaked designated muse of the coming American police to me on background that St Paul police had state. dressed as protesters and, dressed in Black -- shades of the Blackshirts of 1920 -- infiltrated Wolf tells us: You have to understand how things protest groups. There were also phalanxes of men work in a closing society in order to understand in black wearing balaclavas, linking arms and "Palin Power." A gang or cabal seizes power, behaving menacingly -- alleged "anarchists." Let usually with an affable, weak figurehead at the me tell you, I have been on the left for thirty years fore. Then they will hold elections -- but they will and you can't get three lefties to wear the same make sure that the election will be corrupted and t-shirt to a rally, let alone link arms and wear that the next affable, weak figurehead is entirely identical face masks: these are not our guys. in their control...I realized early on with horror Agent Provocateurs framing protesters and what I was seeing in Governor Palin: the calling protest "terrorism" constitutes step ten of continuation of the Rove-Cheney cabal, but this a police state. time without restraints...Palin is embracing lawlessness in defying Alaskan Legislature Naomi Wolf goes on and on and on about the subpoenas --this is what Rove-Cheney, and not great police state which will come about is Sarah McCain, believe in doing. She uses mafia tactics Palin is elected. 50 years from now, people will against critics, like the police commissioner who look back on this essay and not be able to was railroaded for opposing handguns in Alaskan determine whether it is serious or satire. battered women's shelters...Palin is the FrankenBarbie of the Rove-Cheney cabal.. She goes on: Reputable dermatologists are discussing the fact that in simply actuarial terms, John McCain has a virulent and life-threatening form of skin cancer. It is the elephant in the room, but we must discuss the health of the candidates: doctors put survival rates for someone his age at two to four years. I believe the Rove-Cheney cabal is using Sarah Palin as a stalking horse, an Evita figure, to put a popular, populist face on the coming police state and be the talk show hostess for the end of elections as we know them. If McCain-Palin get in, this will be the last true American election. She will be working for Halliburton, KBR, Rove and Cheney into the foreseeable future -- for a decade perhaps -- a puppet "president" for the The rest of the article: same people who have plundered our treasure, are now holding the US economy hostage and http://www.huffingtonpost.com/naomi-wolf/th who murdered four thousand brave young men e-battle-plan-ii-sarah_b_128393.html and women in a way of choice and lies...In Page -9- Also, on Huffington post is an article by Eve Ensler elected then consider the chant that filled the hall entitled Drill Drill Drill. She begins by saying: I am after Palin spoke at the RNC, "Drill Drill Drill." I having Sarah Palin nightmares. I dreamt last night think of teeth when I think of drills. I think of that she was a member of a club where they rode rape. I think of destruction. I think of domination. snowmobiles and wore the claws of drowned and I think of military exercises that force mindless starved polar bears around their necks. I have a repetition, emptying the brain of analysis, doubt, particular thing for Polar Bears. Maybe it's their ambiguity or dissent. I think of pain. snowy whiteness or their bigness or the fact that they live in the arctic or that I have never seen Do we want a future of drilling? More holes in the one in person or touched one. Maybe it is the fact ozone, in the floor of the sea, more holes in our that they live so comfortably on ice. Whatever it thinking, in the trust between nations and is, I need the polar bears. peoples, more holes in the fabric of this precious thing we call life? She goes on: Everything Sarah Palin believes in and practices is antithetical to Feminism which for This article needs a soundtrack, perhaps with a me is part of one story -- connected to saving the cello and a violin, with the cries of polar bears off earth, ending racism, empowering women, giving in the distance, as Sarah Palin rips apart one of young girls options, opening our minds, them with her bare hands and eats its raw still deepening tolerance, and ending violence and pulsating flesh. war. Sarah believes in her family, in her husband, in preserving life; and, after getting involved in politics at the most grass roots level, the PTA, she moved up the ladder, by virtue of her character and views, to govern the great state of Alaska, with an 80% approbate rating. It is no wonder that Eve Ensler is so concerned about setting the woman's movement back several decades. She goes on, listing some of Palin's most grievous positions: Sarah Palin does not believe in abortion....She obviously does not believe in sex education or birth control...Sarah Palin does not much believe in thinking...Sarah believes in guns...Sarah believes in God. I guess that means, off-the-charts certifiable. Ensler closes with: I write to my sisters. I write because I believe we hold this election in our hands. This vote is a vote that will determine the The entire article is found here: future not just of the U.S., but of the planet. It will determine whether we create policies to save http://www.huffingtonpost.com/eve-ensler/dri the earth or make it forever uninhabitable for ll-drill-drill_b_124829.html humans...If the Polar Bears don't move you to go and do everything in your power to get Obama Page -10- An election, which has been quite entertaining up The entire article is found here: until now, has just become even more so. I love it when women's libbers come to their time of http://townhall.com/columnists/MichelleMalki the month. They are far more entertaining than n/2008/09/05/why_obamas_community_organ I had ever realized. ( izer_days_are_a_joke?page=full&comments=true On a more serious note, this Ensler has not a whit of concern for the millions of babies/fetuses destroyed—some of whom even fight to live after emerging from the womb; but, you kill a polar bear, and that is where she draws the line. Obama, Community Organizer by Michelle Malkin These are excerpts from a recent Michelle Malkin column: Let me clarify something. Nobody is mocking community organizers in church basements and Freddie Mac and Fannie Mae community centers across the country working to improve their neighbors' lives. What deserves Let me see if I can explain these institutions ridicule is the notion that Obama's brief stint as a again, and give some clue as to how things have South Side rabble-rouser for tax-subsidized, gotten so screwed up. partisan nonprofits qualifies as executive experience you can believe in. FHLMC and FNMA are both part-private, part- governmental agencies which represent the bulk What deserves derision is "community of the secondary mortgage market, something organizing" that relies on a community of which most people never knew existed. homeless people and ex-cons to organize for the purpose of registering dead people to vote, First problem, no company should be part- shaking down corporations and using the race government and part-private. card as a bludgeon. Your mortgage company makes money, not by As I've reported previously, Obama's community you sending them money every month, but by organizing days involved training making loans and charging you way too much for grievance-mongers from the far-left ACORN all of these closing charges. However, at some (Association of Community Organizations for point in time, they are going to run out of money Reform Now). The ACORN mob is infamous for its to lend out. So, the secondary mortgage market bully tactics (which they dub "direct actions"); was set up to deal with that. A mortgage Obama supporters have recounted his role in company will package up a $100 million group of organizing an ambush on a government planning loans, sell them on the secondary mortgage meeting about a landfill project opposed by market, and use the new money to lend out Chicago's minority lobbies. again. What I assume is, FHLMC and FNMA have deals with the government to get bunches of Page -11- more money, which can be used to purchase business must make money, a public business is these loans, so that more loans can be made. beholden to shareholders to make money, and they cannot call in a political favor (in most cases) When your loan is packaged and sold, they may to just get more money to work with. continue to hold the loan and service the loan (collect the payments and disburse the funds) or So, should government become more involved in the loan may end up in the hands of another FNMA or FHLMC? Hell no! Should government mortgage company which services the loan, but bail them out? Again, hell, no. What happens to FHLMC or FNMA actually now hold the loan many failing companies? They are sold off in themselves. pieces. FNMA and FHLMC are too large as it is. Their loans need to be sold to individual Now, mortgage-backed securities are sold, which companies who wish to act as completely private is also a source of money used to buy more loans. secondary mortgage market organizations. The government should set up some sensible My understanding is, the government essentially regulations for these companies (how much appoints the upper echelon of these multi-billion money should they have on hand; how much dollar companies. Second problem, government they can sell of mortgaged backed securities; should not be involved will billions of dollars etc.). These can be completely private or public whenever a private company could do the same companies, but the government needs to get out thing. Third problem, the government should not of it. have any input on who is hired or fired. The deal is, most people in government really have no idea how to run anything. If they did, they would be out running their own business. A preponderance of them are lawyers, who do not run businesses, but they do know how to legally steal from people (John Edwards is a prime example of this). Quite obviously, some people are going to be put in charge as a political favor. Fourth problem: no one should be appointed to head a company worth billions of dollars as the result of a political favor. Here is one of the biggest problems when it comes to a lawyer with a business. He might be able to figure out way to obfuscate the truth with language (something politicians are known for), but he does not necessarily understand how to make a business work or how to make money. Sixth problem with FHLMC and FNMA: The government is not a money-making government gets involved in stupid social organization; they are a money-taking programs, and one of them was the idea that organization. If they come up with some great everyone, no matter what, should be allowed to plan, and they do not sufficiently fund it (which buy a home. Bad credit? No problem. No occurs most of the time), then they simply vote money? No problem. This is flat out stupid and on more money to go to this project. Problem no one in the business world would ever do such solved. But this is not how a business works. A a thing. If they did, and it was a publically traded Page -12- company, they would be thrown in jail. However, don't go to work for FNMA or FHLMC and make under Clinton, there was a loosening of the credit $100,000 salaries; they make millions of dollars, to the point that people who had no money and also a drain on the company. bad credit could actually get a home loan, if they were poor enough and/or fit a certain Eighth problem: these companies turn around government-chosen demographic. I personally and give money to political parties and political know people who got in on this. This does not candidates. take an Einstein to figure out what will happen when you loan someone money who has a bad To sum up: no need to run these companies with credit record or if you loan someone more money any fiscal responsibility, because government will than they can afford to pay back. They will step in and inject more money into them. Since default on the loan. there is so much money, it goes out to their corporate heads, who have no business running Let me explain something about an investor loan, thi organization in the first place, and to political which I have gotten. Most of the time, I have to candidates (like Obama and Dodd, for instance). come up with 20–40% of the value of the house And government involvement takes a bad in order to buy it (or to refinance a loan). This situation and makes it worse by trying out stupid means I have a lot of my money invested into this social programs. house. For this reason, I am not going to just let the house go back to the bank—that represents Ninth problem: where are the indictments? too much work to just let it go. A person who Where is the investigation? Congress and the put 0% down, who finds out that if he stops media got super-self-righteous when it came to paying, he has 4–6 months to stay in the house Enron (and a lot of innocent people got and not pay a dime, and if that person has bad prosecuted, by the way); what about FHLMC and credit, what do you think he will do? FNMA? Why aren't they investigated and why aren't those who were dishonest brought up on This means that, at some point in time, FHLMC charges? When will their their business practices and FNMA are going to own a significant number be brought to light? What was the criteria for of loans where the buyer has defaulted. Now, if putting some of these people in management I default on one of my loans, the note holder can positions and what did they do with their power easily come in, sell it as a foreclosure, and even and position? make money most of the time (since they are financing only 60–80% of the home). But if they We Need to Protect Main Street have financed 100% of the house and have 6 months of unpaid back payments, and spend Obama has been saying, "We need to not only another several months acquiring title on the look out for Wall street, but we need to look out house and another few months marketing the for main street" with reference to the FHLMC and house, they can end up with a net loss of FNMA secondary mortgage market. His minions $10,000–30,000 easily. Since a mortgage only always scream in ecstasy when they hear this brings in 5–8%, when 4% of your loans represent line. It is one of the stupidest things which he a $20,000 loss for each one of those loans, your says. I work hard to pay my mortgage payments company has gone belly-up (unless the on time. Most of the people I know work hard to government decides to just give you money). pay their mortgage payments. I do not want to pay the mortgage payments for some bozo who Seventh problem: the government appointed is not making his payments. management has made a lot of money. They Page -13- What I Don't Quite Understand a business; they do not know, in most cases, how to put the right people in charge. Therefore, taking a business which is quasi-government No institution can make money off a 5–7% controlled, like FNMA and FHLMC, and making it interest loan, even if there is a 99% chance that all government controlled. There are not many they will be paid on time until the debt is gone. people who understand what the secondary There is just not enough money there to make mortgage market it in the first place. If Chris that worthwhile, after taking into consideration Dodd did not understand what it meant to get a the cost of debt servicing. Somehow, and I have favorable interest rate (which is his public claim not heard this explained yet, mortgage concerning the favorable interest rate which he companies and the secondary mortgage market got from Countrywide), why would we want must have some very special laws (similar to someone like that in charge over the secondary banks) which allow them to deal with mortgage mortgage market? He is either being extremely ownership similar to a homeowner. Home dishonest or he is very, very stupid. Therefore, ownership via a mortgage is what is known as a more government control or a government leveraged investment. That is, if I put $10,000 takeover is a really bad idea (this is why you down on a $100,000 house, the value of the ought to be opposed to a free government-run house increases based upon the value of the health care system). house, and not based upon how much money I have in the house. So, let's say a house goes up It should be clear that, when you mix huge sums 10% during a very good year. I have then of money with a very complex business and add doubled my money (I had a 100% return on my people who work for the government, there will money, on my $10,000 investment). This is why be an incredible amount of corruption. So, many people get rich owning real estate. putting any huge business into government hands (the secondary mortgage market, medical Mortgage companies and the secondary insurance, and, next in line, big oil) is a bad idea. mortgage market apparently is allowed to have It does not matter that the original CEO (or much less money on hand than is actually whatever) is a man of great knowledge and necessary. in this way, they make much more honor. At some point, it will be a crooked guy than the 5–7% interest rate which we who gets this position as a political favor. homeowners pay. Part of what makes this work is, the trust that someone will pay their mortgage. At one time, about 99% or more people paid off their mortgage loans as agreed. Solutions to the Credit Crunch Unfortunately, it is not clear to about 40% of the voting public that the government is not really capable of running most businesses. Most of the government is made up of lawyers, many of whom make money by taking it from medium to large entities. They do not know how to actually run a business; they do not know how to build up Page -14- not get to go out and buy a house just because FNMA and FHLMC are too large. There is nothing you want to. wrong with the idea behind a secondary mortgage market. However, these mortgages need to be broken down into smaller bites and sold to private companies, including various retirement corporations. One company services the loan (takes in the payments and handles the paperwork and payment associated with the loan), and another company invests in these mortgages. We need to go back to giving mortgages to people who pay them back. If this means that Armenian women with physical disabilities get shut out of the housing market, so be it. No matter what subgroup is out there who does not, in general, pay off their loans, those people should not be given loans. We have so many home loans out there, we know who pays and Obama Puts Lipstick on a Pig who doesn't. We can make certain that 99% of all home loans are paid as agreed. That's easy to Okay, okay, I know that this is old news, but I still do. We have to go back to strict business have to tell you Obama's intent. Now, at first, practices when it comes to giving a home loan. like many other conservatives, I was willing to Will some people be unable to get a home loan? give Obama the benefit of the doubt here. Then Of course. Those people who have no history of I really heard what he said. The saying is, if you paying off their financial obligations. Will this put lipstick on a pig, it is still a pig. This is not depress housing prices? It will. Housing prices what Obama said. He said, If you put lipstick on a began to get out of control because the home pig [pregnant pause, let the audience figure out loan market was open to anyone. It needs to be what you have just said], it is still a pig. The open to those who have a history of paying their audience got that it was about Sarah Palin. They bills and loans (I have had section 8 people get were not laughing and cheering because Obama mortgage loans where the mortgage company had just dissed McCain's economic policies. They did not even bother to call me, their landlord, to understood what Obama was saying, and so did see how they paid). he. To sum up, sell off bundles of mortgages in This was one of the few times that the Obama smaller increments to private investors, private camp anticipated the response to their statement companies, and private groups. Get the and were ready for it. They knew how the government out of it altogether (apart from McCain camp would respond ("How dare you!"), reasonable regulation of their practices). Give and Obama was ready the next day with an loans to people who historically pay off their outstanding speech accusing McCain of the old loans. Iffy credit means, more money down and style politics. He read the speech from notes not a higher interest rate. The idea of loans for from a teleprompter (watch the video). people with bad credit at a low interest with no money down needs to come to an end. You do Page -15- First move, Obama's remark, aimed at Sarah Palin, second move, the McCain camp responds with no little huffiness; third move, Obama The Rush Section responds with an excellent speech (and he continued for a couple of days to speak about this Bill Clinton Drops Neutron incident, and all of the news organizations got in line behind him, pointing out, often with video, Bombs on Obama that McCain said the exact same thing—without the pregnant pause, of course). RUSH: Bill Clinton -- the Uncivil War is back in the Democrat Party -- Bill Clinton is dropping neutron bombs all over the place against Obama and the campaign. No one's dying, but the energy, the Links electricity has been knocked out of this campaign. Obama, I'm sure, I'm convinced now he did not know who he was messing with when he dissed Hillary for the vice presidential nomination. The Clintons, when they were no Who actually wants to shut down free speech? longer treated as the king and queen of the party, they went to war. Bill Clinton is on Good Morning http://michellemalkin.com/2008/09/26/fightin America today admitting that the Democrats g-obamas-goon-squad/ blocked reform of Freddie Mac and Fannie Mae. Bill Clinton was on Good Morning America today Angry, anti-Palin link: praising McCain to the hilt. He's blowing Obama and Democrats away on every television show he Sally Quinn does not like her: appears. He doesn't say that Obama's unfit, and he doesn't say that he's going to vote for McCain, http://newsweek.washingtonpost.com/onfaith/ but he does. Now, what does Bill care? Hillary is sally_quinn/2008/08/sarah_polin.html a senator; he's a mutlimillionaire, got rich during the Bush years. Obama and Michelle are going to Here is the video of O'Reilly and Quinn sparing have to go through him if they want to get on about Palin: that gravy train, and right now Obama's gotta do more than two things at once, he has to go to http://www.youtube.com/watch?v=IWAWByyk Washington and he cannot vote "present." He -fQ did not want his vote on this. He did not want to be tied to it because he's just one of 100 people Sally Quinn actually changes her mind! in the Senate. He can't control what they're going to do, he's just one vote, so he wants to vote http://www.youtube.com/watch?v=9FEANF9d present. He's got people like Frank Raines and R_8 Jim Johnson on his staff who helped create this problem. He has to pretend to look presidential, as he follows McCain and Bush's lead. By the way, McCain spoke at the Clinton Global Initiative. I understand being polite, but you gotta understand, McCain was gushing in his praise for Clinton this morning, and I got a lot of Page -16- e-mails, "Look, I understand, Rush, the need for problem here: "The lowly mortgage has brought him to be polite, but why in the world gush like our economy to its knees." Last night on PBS, the that?" Well, you gotta understand what Clinton Charlie Rose Show, he talked to Congressman is doing to Obama out there every chance he Frank. Charlie Rose said, "Who is representing gets, folks. McCain is indebted to him here. I the vast middle class here who faces these kinds mean, there literally are neutron bombs being of foreclosures? Where is that voice at the dropped all over poor Barry's campaign here, and table?" he has no clue. He doesn't really know it, so he's gotta pretend to look presidential as he follows FRANK: Well that's, frankly, the Democrats, some McCain and Bush's lead. Here was the Clinton Republicans. We are the ones who have said, Global Initiative, which is a joke, but it still "Look, we're going to buy up some of these happened there in New York, and McCain shows assets," and many of them will be mortgage up in person and does his little speech and then securities. What we're saying is, "Buy them with hightails it back to Washington. We got Barry on an eye towards assembling enough of them so video, a screen there on the stage 'cause he's still we then could be the landlord, in effect, and in Clearwater, Florida, debate prepping. I've reduce the foreclosures," and that's one, frankly, watched a little bit of it, and it looks like that he's that the administration has been resisting. having teleprompter problems, but I don't think that's what it was, for those of you who saw it. I RUSH: Thank God! He just said the federal think Barry was waiting for the applause to die government -- he, Barney Frank -- they want to down when he thought there was going to be be the landlord! They want to buy up enough applause. He didn't want his next comments to these mortgages so that they can be the landlord. be overcome. They own; you rent. Folks, this is one of the guys that caused this. And then Barney, he wasn't The Government wants your Home through. Same show, Charlie Rose, he continued. RUSH: Okay, more audio sound bites. And, ladies FRANK: When we talk about the large amounts and gentlemen, we have four of them coming up of money, it's not simply that we're jealous with the esteemed Barney Frank because they're getting too much money. It has (Democrat-Massachusetts). Barney used to be a a bad effect on their behavior. We have what's regular fixture on this program with frequent called "a perverse incentive." In many of these utterances and scandals himself involving -- what corporations if the CEO and the top people make was it that was going on in his basement with his a bet on a certain risky investment and it pays off, boyfriend? Oh, yeah, the prostitution ring going they get a bonus. If it doesn't pay off, they don't on. The rumor is -- it was straight-up prostitution, lose anything. but -- patrolling schools, right, and so forth. It was going on in Barney's basement, Barney did not RUSH: Well, now, that sounds remarkably similar know about it. And Barney was fixing the parking to certain aspects of the US tax code, doesn't it? tickets that were needed to park in front of the I mean, do I get to deduct stock losses? I don't house here where stuff is going on, and he didn't think so. At any rate, we're back to the executive know about it. pay. CEOs have "a perverse incentive" and has "a bad effect on their behavior." So now Barney RUSH: Okay, let's go to the audio sound bites. Frank wants the government to become your Yesterday I pointed out to you that Democrats landlord and he wants the government to be in Chuck Schumer targeting home ownership as the charge of the behavior of CEOs. Yesterday on CNBC Erin Burnett talked to Barney Frank, and Page -17- said, "Is it clear that Henry Paulson doesn't want The Fringe Left Support Barry all those restrictions in this current bill?" RUSH: I don't know how much prep Barry has to FRANK: I understand and I -- I admire Secretary do on foreign policy. His foreign policy is, we Paulson a great deal, but on this one asking him lose. His foreign policy is, meet with to accept any kind of compensation limitations is Ahmadinejad, with no preconditions. Did you see just kind of like asking the rabbi to eat bacon on where Obama, one of his financial bundlers from Yom Kippur. He -- he -- he starts to just really Code Pink hosted a dinner for Ahmadinejad start to overreact. earlier this week in New York? Yes, Jodie Evans is her name and she's Code Pink, Code Pink women RUSH: They don't want any limitations on for peace, these people are always getting into executive pay. (interruption) Bacon on Yom congressional hearings and protesting during the Kippur. Yeah, they start to overreact. Yeah, Iraq war testimony, generals show up and so that's what he did, asking a rabbi to eat bacon on forth. She was one of the bundlers of his big $9 Yom Kippur, he starts to overreact. So he said million night in Hollywood, and Ahmadinejad, of Paulson was overreacting yesterday to the desire course he's going to meet with an anti-American by Democrats to control even more of the private crowd, and they showed up and she's one of sector. We are talking about the private sector. Obama's bundlers. You have to wonder now, I They are the ones that broke this. The scandal is mean we know who these people are, they're inside the doors at Capitol Hill, transferred to kook fringe leftist anti-Americans, but they're also Democrat cronies at Fannie Mae and Freddie Mac Obama supporters, Obama bundlers, Obama -- which were partially under government fundraisers meeting with Mahmoud Ahmadinejad auspices anyway, even though they insult our in New York to discuss the evils of the United intelligence and tell us that they were private States of America. sector businesses. This is where we're headed if the Democrats get their way. They screw it up, and they get to control it even more! Obama Teleprompter Trick RUSH: But have you ever noticed, folks, I finally figured out something. Every time Obama speaks, could be two people in the room, could be 200,000 out there in Berlin or whatever, he always looks like he's looking over the horizon. He's always looking away like this, as though there are the multitudes stretched so far that he has to look probably 45 degrees in the sky in order to be able to see 'em all. That's a trick. You know how they're doing it? They put the teleprompter above his eye level so he has to constantly look up, and it's this looking up and looking around and so forth that makes it look like he's addressing the multitudes that stretch from coast to coast. Page -18- Grahamnesty after he met with the House Call Me if You Need Me Republicans yesterday, and only four of them said they would support the rescue plan. Paulson RUSH: Okay, so there's the David Axelrod talking called Lindsey Grahamnesty and said you gotta point, and that is, we have to be able to deal with get McCain up here. McCain is the only guy that more than one thing at a time. So he says can provide cover for these Republicans. You essentially if congressional leadership needed gotta get McCain up here talking to these guys. him, he'd be available. Call me if you need me. So Grahamnesty called McCain, and that's how Now, who is he? He's the leader of his party right McCain ended up, according to CBS News, that's now, and he seemed to have absolutely no how McCain ended up going to Washington. It interest in being involved in this very important was not, therefore, a stunt that they contrived issue that's being discussed up there. He does out of whole cloth. There was a request from the have a job, and his job right now is senator. Treasury Secretary to McCain, not to Obama. I That's where he ought to be. Well, call me if you don't know why Paulson just didn't call McCain need me. Be glad to show up if you need me. himself, he called Lindsey Grahamnesty, but Look, I'm too busy playing God here, I'm too busy that's what Bob Schieffer said. Now, let's go being messiah, I'm too busy, call me if you need some Bill Clinton neutron bombs. This is Good me, but really wish you'd handle this on your Morning America today, cohost Chris Cuomo, own. And then Harry Reid is out there saying, "Delaying the debate, McCain, a good move?" McCain, we don't need you, stay away. CLINTON: We know he didn't do it because he's Obama acted like a poser. He had this little afraid because Senator McCain wanted more meaningless joint statement here. Little Barry debates. You could put it off a few days, the didn't think he was needed in Washington. "Call problem is it's hard to reschedule those things. I me if you need me." (laughing) Call me! He's only presume he did that in good faith since I know he the leader of his party. The debate is taking place wanted, I remember he asked for more debates where he has a job. Call me if you need me? This to go all around the country so I don't think we is the kind of guy who thinks a treaty has the ought to overly parse that. weight of a peace imposed by winning a war. This is a guy who thinks he can sit down, talk to RUSH: You heard it. Neutron bomb number one. Ahmadinejad, issue a joint statement, and poof! Bill Clinton, he just threw Obama under the bus. Iran's no more an enemy. He's a man-child, my Here's Bill Clinton saying, (doing Clinton friends. He doesn't understand that a failure to impression) "Hey, look, he's the guy that wanted quickly solve a credit crisis risks long-term all those town hall meetings, he wanted ten of damage to countless Americans. He said we them and I didn't hear the other guy say, 'Okay, could call him on the phone if he was needed. I'll be there.' I mean, McCain, he's not afraid to (laughing) debate." More Clinton Bombs RUSH: All right, one more Bill Clinton neutron bomb also from Good Morning America. Chris Cuomo says, "Is it a little surprising to you hearing By the way, did you hear what Bob Schieffer the Democrats saying this came out of nowhere? reported about this today on CBS? Bob Schieffer I mean this is all the Republicans, Pelosi saying it? said somebody told him -- he was on the CBS She knew what was going on in the SEC. They're Early Show this morning -- he said that somebody all sophisticated people. Is that playing politics in told him that Hank Paulson called Senator Lindsey this situation?" Page -19- CLINTON: The responsibility that the Democrats They tell us, you didn't see what you saw, Obama have may rest more in resisting any efforts by kicked butt tonight. If you think McCain did, it's Republicans and the Congress or by me when I not going to happen that way. Media was president to put some standards and tighten front-to-back. That is why the Saddleback Church up a little on Fannie Mae and Freddie Mac. thing was so great. There was no media in it. There was no pre-media, there was no RUSH: This is the guy that caused the problem. post-media, there was no spin -- well, a little spin This is the guy that caused the problem. But room out there, I think, but it wasn't typical. So notice what he's doing. He's not just neutron this is no great loss. This is McCain going straight bombing Obama. He's neutron bombing the over the media to the voters a la the way Reagan Democrats. (doing Clinton impression) "The did, and that's what they're doing with Sarah Democrats, I mean, the Republicans really Palin. wanted to reform this. I did, too, but my party stood in the way of this. I wanted to tighten Obama's Corrupt Campaign Advisors them up a little bit there, but the Democrats, they wouldn't go along." Neutron bombs, Bill You talk about callous, talk about not having the Clinton. This is typical of Clinton to say, "I tried judgment to lead. Sounds like a guy who would to, I did everything I could, I never worked harder remain an active member of a racist church for 20 at anything I ever did to try to straighten out this years and not knowing what's going on in there. mess. But they wouldn't listen to me." (laughing) He's not in touch with reality. He doesn't get it. You have to laugh, and we will continue to do so, He still has Jim Johnson advising his campaign folks, because we are Americans. from Fannie Mae. How about a joint statement on why Jim Johnson's advising your campaign, Media Reaction to the Debate Barry? Why don't you put out a statement explaining that? [Rush said this the day before the debate] RUSH: Let me tell you something about these More from Bill Clinton debates, too, folks. These debates, they're phony. They're total media creations. What RUSH: I want to go back. Snerdley was paralyzed happens in a debate? Okay, these two guys show for three minutes after this Clinton bit. One more up someplace, they stand at lecterns, and you time. Chris Cuomo: "All these Democrats saying have three or four selected elites from the that this problem, financial problem, is all the Drive-By Media get to ask the questions, Republicans' fault. What do you say to that?" therefore frame the whole debate. The candidates don't. After it's over, the Drive-Bys CLINTON: The responsibility that the Democrats then head to the spin room, where various have may rest more in resisting any efforts by representatives of both candidates tell the Republicans and the Congress or by me when I Drive-Bys what they didn't hear but that they was president -- wanted them to hear, and then the Drive-Bys tell us after all that what they heard that they RUSH: Jeez! wanted us to hear, defying our own eyes and what we saw. CLINTON: -- to put some standards and tighten up a little on Fannie Mae and Freddie Mac. Page -20- RUSH: (laughter) Look, pal, you caused this! This yeah! I think that McCain canceling the debate? is all traceable to the Democrats resisting That's no big deal. McCain is a guy that invited oversight, resisting reform, creating the Obama to ten different town hall meetings. mechanisms in the first place, traceable right to Obama is the one who said no. I don't think you and Jimmy Carter. But he's dumping on his McCain's got a problem here at all. That debate party, I'm telling you, this guy is mad at the party will happen. This bailout is clearly more leaders. He's mad. He thinks Obama's going to important." These are neutron bombs. I mean, lose, and he and Hillary are going to pick it all the buildings are left, nobody dies or any of that, back up. but I'm telling you. The Clintons are peeved. Barry did not know who he was dealing with RUSH: All right, audio sound bites, Bill Clinton, he when he dissed them the way that he did. Here, dropped neutron bombs today on the Obama by the way, more from Clinton on Larry King Live. campaign. I treated you to those sound bites in King said, "Are you kind of feeling Jewish that the first hour. He was on Larry King Live last you're waiting 'til after the Jewish holidays?" night. Clinton is everywhere because of the Clinton Global Initiative. And Larry King said, CLINTON: No, but I think it would be -- if we're "You're going to vigorously campaign? Is that a trying to win in Florida -- correct word: 'vigorous?'" KING: (snickers) CLINTON: We have this golden issue coming up, and I -- and I have projects all over the world. CLINTON: -- it may be that, you know, they think When this is over -- and after the Jewish holidays, that because of who I am and where my political which follow close on it -- I intend to go to base has traditionally been, they may want me to Florida, to Ohio, to northeast Pennsylvania, and sort of hustle up what Lawton Chiles used to call to Nevada, at a minimum. I may do this in "the cracker vote" there. Arkansas, depending on what the Democratic Party does down there. And I have agreed to do RUSH: So here's a guy claiming that he's going to some fundraising for them in California and New campaign for Obama. "Yeah, I'm gotta wait 'til the York. Jewish holidays are over so I can go in there, get the cracker vote for Obama." (laughing) Neutron RUSH: So he's going to vigorously campaign for bomb number three. "Hustle up the cracker Obama after the Jewish holidays. Hey, why don't vote! Gotta hustle up the cracker vote." So this you take Alcee Hastings with you? You know, it is neutron bomb number three, and Clinton set might help you out, because he's out there and this up perfectly. He knew that if he said he was he's got the proper message for Jewish voters: going to do the campaign after the Jewish Any woman who goes out there and skins a holidays, King would ask, "Whoa, what are you moose and runs around with guns, you can never feeling Jewish? Why wait until after the Jewish tell what she's going to do to Jews and blacks. He holidays?" "Well, I gotta go down there in Florida. said it. I'm paraphrasing it, but that's pretty They're gonna need me down there to hustle up close. Clinton is destroying Obama, and I don't the cracker vote. I'm campaigning for Barack even think Obama knows it. "Oh, yeah, you know Obama, gonna need the cracker vote." (laughing) something? Democrats, most of them are to blame for this meltdown here 'cause they were RUSH: By the way, I just got a note from a friend not looking. I mean, I tried everything I could to who properly observes that if Clinton is going to get Fannie Mae and Freddie Mac straightened campaign here in Florida after the Jewish out, but the culpability of my party is huge. Oh, holidays, it would then follow logically that Page -21- Clinton was seeking the "matzo ball" vote rather understood, yeah, we gotta be conservatives and than the "cracker" vote. But he stuck with the we gotta be conservatives first, but this trumps cracker vote, because it's a Southern state and conservatism." And that's the one that got me the crackers are what Obama needs. My theory because, for me, nothing trumps conservatism. on this is that he's saying exactly what he intends There are ways of dealing with this that do not to say. have to include total socialization of the market process or the nationalization of the mortgage He's dropping little neutron bombs on Obama industry. and the campaign. He's going to come down here to Florida, because Obama is going to need Now, I went and grabbed a piece today in the the cracker vote, and so the guy who is ostensibly Wall Street Journal, and it happens to end up campaigning is going to say, "Hey, crackers? I'm being one of the most persuasive pieces I have coming down here to get your vote." Now, read in all of this. It's by Andy Kessler, a former Clinton may have to say, "Hey, I'm a fellow hedge fund manager, and he's the author of How cracker (laughing) so I know exactly what you We Got Here, published in 2005. Let me join his people want." (interruption) According to column in progress: "Here's what's happened so whose...? Crackers are native born Floridians, far. New technology like electronic trading meant that was Lawton Chiles' definition? Is that...? that Wall Street's bread-and-butter business of Well, now look. That's another thing. How do we investment banking and trading stocks stopped know? Lawton Chiles has assumed room making much money years ago. So investment temperature many years ago. So that's another banks took their enormous capital and at first thing. Poor old Lawton Chiles. Who's put all packaged yield-enhanced, subprime mortgage these words in Lawton Chiles' mouth? I don't loans into complex derivatives such as doubt that Lawton Chiles said it. collateralized debt obligations (CDOs). Eventually and stupidly, these institutions owned them for themselves -- lots of them, often at 30-to-1 Rush on the Financial Crisis leverage. The financial products were made 'safe' by insurance products known as credit default RUSH: Now, in looking into the financial mess, as swaps, a credit derivative from companies such I said at the beginning of the program, who do as AIG. When housing turned down, the you trust here? It's simply too massive and there mortgages and derivatives were worth a lot less are too many opinions. I mean, you can go and no one would lend Wall Street money certain places and you can find a conservative, anymore. say, "I've been talking to the smartest people in the room, smartest people in the room, and they "Then the piling on started. Hedge funds could tell me, you know, we gotta do this and we gotta short financial stocks and then bid down the do it now and if we don't do it we're in big prices of CDOs stuck on Wall Street's balance trouble." And other people saying, "Well, you sheets. This was pretty easy to do in an illiquid know I've been talking to the smartest people in market. Because of the Federal Accounting the room here and they say this is a disaster Standards Board's mark-to-market 157 rule, Wall waiting to happen, and if we do this we're going Street had to write off the lower value of these to be paying for this for the rest of our lives and securities and raise more capital, diluting we're going to end up with socialized, shareholders. So the stock prices would drop, nationalized everything," and other people are which is what the shorts wanted in the first place. saying, "I've talked to the smartest people in the It was all legit. There is a saying on Wall Street room about this, and one thing I have that goes, 'The market can stay irrational longer Page -22- than you can stay solvent.' Long Term Capital market value is established on them, this guy's Management learned this lesson 10 years ago model say anywhere from $1.1 to 2.1 trillion when it got its portfolio picked off by Wall Street could be realized by the government being in the as its short-term financing dried up. I had thought mortgage business, the government as an the opposite -- hedge funds picking off Wall investment bank. He says, "My calculations, Street -- would happen today. But in a weird which assume 50% impairment on subprime twist, it's the government that is set up to win the loans, suggest it is possible, all in, for this prize. portfolio to generate between $1 trillion and $2.2 trillion -- the greatest trade ever. Every "Here's how: As short-term financing dried up, hedge-fund manager will be jealous. Mr. Buffett Fannie Mae and Freddie Mac's deteriorating is buying a small piece of the trade via his financials threatened to trigger some $1.4 trillion Goldman Sachs investment." And, by the way, a in credit default swap payments that no one, lot of people are saying this means we've reached including giant insurer AIG, had the capital to the bottom. When the smart money gets in, the make good on. So Treasury Secretary Henry smart money in this case being Buffett -- by the Paulson put Fannie and Freddie into way, I never have trusted a guy named after a conservatorship. This removed any short-term smorgasbord. But nevertheless when they're financing hassle. He also put up $85 billion in loan saying the smart money gets in, Warren Buffett guarantees to AIG in exchange for 80% of the gets in, that means we're near the bottom of the company. Taxpayers will get their money back on market. And that's one of the reasons why the AIG. My models suggest that Fannie and Freddie, Dow Jones Industrial Average is up a little bit. on the other hand, are a gold mine. For $2 billion in cash up front and some $200 billion in loan Now, I have some thoughts on this because this guarantees so far--" and let's not forget that. I piece makes it clear this is not a bailout. It's a thought it was $300 billion, but we've already put rescue. Now, these things still have some value. at least $200 billion into this whole process. And I don't know what the value is, and they haven't he said, "For $2 billion in cash up front and some been foreclosed on. They're pretty close to $200 billion in loan guarantees so far, the US worthless, but it's not technically a bailout. And government now controls $5.4 trillion in of course you're hearing all these warnings if we mortgages and mortgage guarantees. Fannie and do this then there's not going to be any credit. Freddie each own around $800 million in Okay, now, what does that mean? Well, it could mortgage loans, some of them already at mean something like this. Now, I'm just giving discounted values. They also guarantee the you an extreme example. It could mean that all credit-worthiness of another $2.2 trillion and of our credit cards, outstanding balances are $1.6 trillion in mortgage-backed securities. Held going to be called in, 'cause there's no more to maturity, they may be worth a lot more than credit. If the credit markets have no cash to lend Mr. Paulson paid for them. They're called money, and if the assets that they hold are distressed securities for a reason." worthless, then there's no credit, and if there's no credit, there's no expansion. If there's no The bottom line is that he says the government, expansion, there's no growth. Now, this is an if Paulson is able to buy up all these mortgages -- extreme scenario, but they're using two things to and, by the way, most of them are not into sell this rescue plan. They're using fear of you foreclosure yet. Most of them haven't defaulted. losing and everybody losing their credit, and the If Paulson, if the Treasury is able to buy up for come-on, "Wow, look how much money the $700 billion, $800 billion all of these mortgages government can make here, $2.2 trillion, can you and hold onto 'em and then sell 'em off as the imagine the debt service that we could --" debt Page -23- service. Remember the peace dividend? What to take them off the hands of the financial did they do with it? It didn't even exist. They institutions today. grew the government. This is the kind of money, if Obama is elected, this is the money that will It's made clear by Mr. Kessler in his piece. Also fund all of his brand-new big-time social we can conclude since he's a former hedge fund programs. There's a lot to think about here. manager and he likes this, that Wall Street's desperate for this to happen so that these RUSH: Okay, here we go. The piece I just read to financial institutions that are in need of cash can you, Andy Kessler, I should give you the headline. get it and get it fast, whatever price they have to "The Paulson Plan Will Make Money for sell their loans for. Cash is king right now, they Taxpayers." He's a former hedge fund manager, don't have any, and they need it. They can't and that's how he analyzes this. He's one of these borrow. They can't lend. They can't do economists that has commuter models and he's diddlysquat. The federal government, as Mr. run some projections. Now, if this guy is right -- Kessler makes clear, will have a windfall of and who knows? See, we don't know who to potentially trillions of dollars -- which, experience trust, and we don't know who's going to end up tells me, will be used to expand the size of being right. Our experienced is, "I'm from the government. I have yet to see a budget one year government and I'm here to help you," means less than the budget the prior year. I have never we're going to get screwed. And we know there's seen the federal government with a huge stash of not one single person involved in this I trust with money that it didn't expect, say, "You know that prediction. There's not a Ronald Reagan what? We might be able to make a dent in Social here. If a Ronald Reagan was saying, "We gotta Security here if we put a little aside. We might do this," I would believe it. There isn't one of make a dent in Medicare. Maybe we could cancel those. So you've gotta scrounge around. It's the..." actually a great educational process. They come up with new stuff to spend it on. So Snerdley came in today and said, "I have never that's why I look at this as if Obama gets elected, worked harder in my life trying to understand this this windfall, if it happens, will pay for all the new financial thing. I've been spending more time this programs at the front end. Whether the money is past week working on trying to understand this. realized or not, as long as we're being told, "Hey, 'Cause this is all Greek, all this lingo jingo they this could generate $2.1 trillion," they're going to use, talking about these derivatives and the credit start spending it now. Especially if it's Obama. swaps," but it has been an amazing educational McCain... Let me go on now. Warren Buffett here exercise. But if this guy, Mr. Kessler, is right; it is posed to make another fortune. He is an underscores points made prior to today by me on Obama advisor. Soros made a fortune betting this program. Number one: that the federal against the British pound. George Soros in the government is nationalizing the financial markets. currency markets, made a billion dollars betting I don't care what anybody says, this is against the British pound. So you watch people nationalizing the financial markets. Number two: who make the money on this thing. Who are the these loans (he makes it clear in this piece) have people that are really going to make the money not yet defaulted, even if they are risky. Number on this? Is it more than just making people whole three: when the market recovers, the federal and able to do business again? government will be able to make lots of money selling the undefaulted loans back to the private Does it contain a lot of golden opportunities for sector. Even if they're sold below their original people to take some of this stash and enrich value, it will be more than the government paid themselves personally? Now, these are the kind Page -24- of rules there are going to have to built into this. there's a debt that nobody can pay except the I'll tell you, as you go through this and you government. And they can do it because they understand it, what becomes clear to me -- and I can cheat. said at the beginning of this hour, "Who do you trust?" I trust conservatism. Conservatism and They can print money. They can say they've got free market economies work. It is based on all kinds of money that they don't have, just growth. You want to spur Wall Street? You want borrow it or what have you, print it. But here's to give those people some confidence? You want what, again, just to rehash: What it appears to to give 'em some cash right now? Just suspend me has happened here is the federal government the capital gains rate. Just end it. It's now 15%. is nationalizing the financial markets, at least for Take it to zero, for a year or two. You watch a time. These loans are not, as I said yesterday what happens. You watch what happens to the and mistakenly so, worthless. They have not yet Dow Jones Industrial Average. You watch what defaulted. They're risky, but they haven't yet happens with all the money pouring in. "But we'll defaulted. The market will recover. It always not get our share in the government!" does. When that happens, the federal government will be able to make lots of money Wait a minute. I thought this was more important selling the undefaulted loans back to the private than anything. We're hearing, "We've gotta do sector, even if they are sold below their original this or it's over". So can't you guys in value, it will be more than the government paid government maybe do away, just for a year or to take them off the hands of the financial two, with the capital gains tax? Can't you just institutions today. look at the upside? You're going to get all these new trillions by taking over all these mortgages. Maybe you could get rid, too, of the corporate tax rate for the same period of time. Try a little conservatism here. We don't have to have this all decided by five o'clock this afternoon so that we can do our debate tomorrow night. Every time I hear, "We don't..." I mean, people have been telling us the fundamentals of our economy are strong. There's no be pro. All of a sudden yesterday, past two days, "If we don't get this done by the end of the week, I don't even want to think about it." Well, whatever else they're going to do, put some conservatism in it. Cut taxes! Spur growth! We know how to do it. It works every time it's tried, and it will generate so much revenue that the $700 billion will not be needed. Number four: Wall Street is desperate for this to RUSH: I want to continue analysis of this, because happen so that these financial institutions that we don't know who to trust. The definition of are in need of cash can get it and get it fast. terms eludes us, default credit swaps, derivatives, Whatever the price they have to sell, there are all of these things that just got piled and piled and loans for it. They don't have any cash. They can't piled on top of each other to the point that borrow, they can't lend. They can't do business, Page -25- and it's not just that. I mean, there are stupid answer. It always is, in economic matters. We accounting rules. I'm going to get to all that here need to attract more investment in our country, in just a second. The federal government, as Mr. not less. Kessler, Andy Kessler of the Wall Street Journal today makes clear, the federal government will We need to take down the obstacles which stand have a windfall of potentially trillions of dollars if in the way of investment, which are confiscatory his computer models are accurate -- which they taxes on capital investment and successful will, I think, use to massively expand the federal business activity. We have got to stop punishing government. I have yet to see a massive pile of success and punishing risk. We need to reward it. money show up that was unexpected that's Successful business activity is called what? either given back to us or used to reduce debt. Profits. Our government can't wait to tax 'em. We have the second highest corporate tax rate in And that takes me to this business that taxpayers the world. That's not going to help us attract new "stand to earn a lot of money on this." You see investment. Get rid of the corporate tax rate for them use that phrase as they try to sell this. a year or two. Same thing with the capital gains "Taxpayers could really score!" Now, don't insult tax. Get rid of it. Watch what happens. You us. They don't mean us when they say the watch the investment; you watch the stock taxpayers could really make out. They mean market. You watch everything that happens, in them, they mean the government. Do you terms of growth. Now is not the time to continue think...? Let's say that this guy is right. Let's say to promote, through our tax policy, Big that all of this at the end of the day generates an Government and socialism, which is the purpose unexpected $2.2 trillion to the government. of high corporate income tax rates and capital Okay, there are maybe 40 million taxpayers. The gains tax rates. population is 200-some-odd million. We've got a lot of people in the cash economy, and a lot of You legitimately pump new money into our kids that don't file tax returns. I'm guessing that economy by getting it out of Washington, and it's -- Well, just for an even round number, let's you do that by cutting taxes. I know the cap gains say a hundred million people file tax returns. rate is only 15%, corporate tax rate's 35%. You want growth? You want money in the economy? So you divide a hundred million into $2.1 trillion, You know, the economy is not just Wall Street. whatever they get, are they going to send us each And, by the way, when you hear these clowns a check? So how do we stand to profit? talk about, "We gotta make sure we protect Main Especially if they're just going to use all this Street." Main Street has one definition in all this, new-found money to expand the government? and that's the people who are holding all of these And I guarantee you, if Obama wins the election mortgages that they can't service, that might not and this deal gets cut, they're going to think be paid back. That's Main Street. Main Street's they've got between a trillion and two trillion that not the five-and-dime and the building and loan they didn't plan on, and they're going to start as in It's a Wonderful Life. That's not the Main spending it now on his social programs and all Street that they're talking about now. So there these other promises that he is making in order are things that we can do economically. to enrich Democrats and their electoral chances in the future. Now, the fix for this -- and Whatever this deal is, it will be compounded as a apparently it's already been taken, it's already disaster, if Barack Obama is elected president and been done. We just don't know what it is, but I has a Democrat House and a Democrat Senate. trust conservatism. When in doubt, I go to That's why, in addition to whatever we do conservatism. Growth, growth, growth is the economically, we can do some political things, Page -26- 'cause this is largely a problem caused on the We have to identify what was done as a matter of political side of things. This is not a free market political and social policy that precipitated all of screw-up; this is not a capitalism flaw. This was this, including the creation of subprime all caused by Democrats in government! If there mortgages. In the first place they were created were a Republican to blame, he would have been and they were hailed as a way of helping people found and he would be in jail, or his life would be buy homes who didn't have the income to buy ruined as the result of never-ending homes. Jimmy Carter, Bill Clinton took credit for congressional hearings. We have to continue to this when they did it but they are evading identify, to expose and punish the politicians who responsibility for it now, and the house of cards are responsible for undermining the market with has collapsed and Clinton's even out there on political demands for risky loans to risky Good Morning America (while dropping neutron borrowers -- and they used the power of their bombs on Obama, by the way) suggesting that he positions to force this. did everything he could to get this whole thing fixed. He's the architect of this! And it must be There were loans that were made out to people said over and over. who were not even asked to explain what they did for a living! There were countless mortgages Now you've got people like Warren Buffett, given to illegal aliens and other minorities, hailed as a great businessman and other people without any concern that they be able to pay it like him, hovering over all of this, looking for back. This is the "compassion" that Democrats ways to make billions and billions more dollars -- talk about. This is their definition of affordable of course with the government's help. They housing. This is the "good intentions" of their support this massive bailout because they see it large hearts. Once again, we see their good as a way to make another fortune. So Buffett intentions have totally bollixed up what used to buys a big stake of Goldman Sachs, which is Hank function as a really rational market: the mortgage Paulson's former firm. He's not doing that out of industry. So we have to do what? We have to philanthropy. He's doing it because he knows punish Chris Dodd by throwing him out of office. one day these risky loans are going to one day We gotta punish Barney Frank by throwing him have value. He wants to be around to profit from out of office. We gotta punish Chuck Schumer by them when they have value, which is fine. But it throwing him out of office. ought not be on the taxpayers' dime, and it's going to be. Now, these three and others are protected from the national popular will because they are elected We have far too many people who are becoming from very blue parts of the country. rich from government policy rather than the Nevertheless, the people who are responsible for give-and-take of the free market. So put simply, this, even after all this is settled, their roles must based on this article I read in the last hour from be highlighted. Their roles in obstructing the Andy Kessler in the Wall Street Journal, the kinds of changes in policy that would have helped federal government appears to be the only entity lessen the current crisis. There were warnings capable of coming up with the enormous amount given throughout this decade about Fannie Mae of money it's going to take to take over these and Freddie Mac, warnings from George Bush loans -- which have not failed yet but which the and other places -- and Barney Frank and Chris government itself requires these banks to Dodd and Chuck Schumer and all the others devalue as assets. Now, they are required to didn't want to hear about it. "It's fine. There's no base their value on current prices. This is what problem here." They stood in the way of, quote, mark to market is. That is a change forced on unquote, "reform." them by the Sarbanes-Oxley accounting Page -27- legislation, which was a clarifying, typical up some entitlement program, but expand overreaction to the Enron thing. government. That's what always happens. Another problem with all of this -- and I hear no So rather than being able to peg asset value talk about getting rid of these community down the road, you have to peg it to asset value reinvestment loans, which started this entire today. And that's why some of these firms are mess, and I hear no talk about eventually getting going under, because the value of what they hold rid of these government-run companies, Fannie is so little, that their stock prices plummeted, Mae and Freddie Mac. I hear that we need to nobody wants to invest in them -- simply because increase regulations on the private sector! We of an accounting change! That's another thing need to increase taxes on the private sector. that's gotta be done away with. Go back to the old asset-counting rules, accounting rules, get rid No! We need to get rid of some of these stupid of mark to market. These people in Washington government ideas and institutions that caused who have never run businesses, who have no this. This is not a capitalist problem. You know, clue, who set up things to fail in the first place -- more than ever what we need to do, is we need then when they fail, they get to act like they are to dust off old Milton Friedman's proposed innocent bystanders and spectators and say, constitutional amendment that would limit how "Well, who screwed this up? We're going to much of the national economy the federal punish whoever did it and then we're going to fix government's permitted to consume. His it," and they just bollix it up more and more. amendment would have limited federal spending to less than 20% of GDP (I think that's what it So this accounting rule, mark to market, the was) as the best way of preventing the federal banks have to off-load these loans, and what government from destroying the economy. If the Paulson is saying is, "Okay! (applause) hey, hey, economy grew, the income to the federal I've got the money. I'll buy 'em at a fire sale, government would grow in absolute terms. If the because I got a blank check. Or I want a blank economy shrank, so, too, would the absolute check and I'm probably going to be given one dollars coming into the federal treasury. here in a couple days because I've created the necessary panic." So, our government buys Now, there were severe emergencies like war them, holds 'em, waits for the economy to pick where the cap could be raised in his up -- or rather than wait, primes the economy to constitutional amendment. It's not going to pick up through spending and monetary policy, happen. Nothing happens unless and until it possibly risking inflation (maybe not; who becomes part of the national dialogue, and until knows?) Anyway, going to drive up the value of we see exactly what's happened here, it's going these risky loans, then they going to start to sell to be difficult to do, you know, on-the-spot 'em back to the private sector at a huge profit, analysis of it. Victor Davis Hanson today writing and that's where we "taxpayers" supposedly are at National Review Online says (summarized), going to make out like bandits. "Hey? Hey, gang? We need a reality check here. Who elected all these shady politicians of both I guarantee you we'll never see a dividend check. parties? Who fostered the cash-in culture in So the federal government is going to take the which both Wall Street profit-mongering and trillions or so that it makes of all this and -- if say, Washington lobbying are nourished and thrive? Obama is elected -- use it to further massively We citizens did. Red-state conservatives, blue expand the size of federal government. And state liberals, Republicans, Democrats alike, we they're going to have trillions more to do what may be victims of Wall Street greed, government they always do, not pay down the debt, not shore excess, but not quite innocent." 'Cause we keep Page -28- reelecting the same crowd to go back despite tell you what's going on here. The first thing you knowing all they're doing wrong. He titles this have to remember is Palin's job is not to be piece, "Dr. Frankenstein's Wall Street." buddies with the Drive-By Media. Go back to her acceptance speech in St. Paul. She's not here to http://article.nationalreview.com/?q=NjkxZDJj be friends with the Drive-Bys. She knows they MTViZDQ4NzhkMTRmNGRlZGNmZjgzMzhkZGU= don't want to be her friend. She's doing Katie Couric tonight. She went out and she's done some of these things, she did Hannity and a couple of others, but she's not doing press conferences. She's not out there trying to woo them. When Palin shows up with McCain, they take hundreds of questions from voters at these joint town hall meetings that they're doing. I've watched 'em do it. They're very good. And the questions that they take from the audience, these town hall things are better questions than the Drive-Bys would ask, they're very random. The Drive-Bys just want to set up some "gotcha" moment. That's what they want. The bitter clingers get this, too. You and I, we bitter clingers, we get it. The people out there hate the Drive-By Media right now. We realize we're running against the Drive-Bys, we're running against the Democrats, we're Rush Advices McCain: Turn Sarah Loose running against Ahmadinejad. Cookie did a great thing here. We've got Ahmadinejad from his RUSH: I was on Fox News yesterday afternoon, speech yesterday at the UN and gone back and Martha MacCallum's show at five in the found Obama saying much the same thing at afternoon, and she asked me a question, and I various spots along the campaign trail. I do wish, didn't quite hear everything she said, but the gist however -- and this is what I told Martha of the question was, "How come the McCain MacCallum on the Fox News Channel -- I wish campaign is not letting Palin interact with the they'd let Palin go, not press conferences, let her media?" And it had to do with the fact she's at go out and do these rallies. the United Nations and she's meeting all these world leaders and so forth. So today I see the Get her out there. She's the one that's electrified Politico has a story: "'Palin Press Relationship the whole base. She's the one that's electrified Gets Testy' -- Sarah Palin's relationship with her the election. She's the one that turned this thing traveling press corps went from barely existing to around. Get her out there. I'm not talking about downright chilly Tuesday, when the two sides press conferences and little chats, sitting around briefly engaged in a standoff over journalists' with the Drive-Bys. My fear is that every time access to Palin's photo ops on the sidelines of the I've heard her speak now in the last couple of United Nations meetings here." Biden's not times, she's been mirroring McCain's message of doing a whole lot of press conferences. Let me reform, that Obama's never worked with Republicans but that McCain has worked with Page -29- Democrats. That's not how to use her. McCain neighbors. I want you to talk to them whether can handle being McCain. They need to send her they are independent or whether they are out there and let her be who she is, as she was Republican. I want you to argue with them and introduced. I wish they'd do that. Now, it could get in their face." Mission accomplished.] be they're saving her, they don't want to overexpose her, save up here for the last two- or http://michellemalkin.com/2008/09/18/chicag three-week crunch. o-thug-urges-cult-followers-to-get-thuggish-too/ Desperate Obama Supporters Dems Have the Votes and Bush Why not do the $700 Billion Bailout? RUSH: The official transcriber of this program, of course, is known to one and all as Dawn. And [This is long, but it explains a lot] Dawn just sent me an e-mail. She's on the other side of the glass; she just sent me an e-mail. A RUSH: Here are a couple sound bites from John friend of hers went into the Whole Foods today, Boehner and Roy Blunt, the Republican leaders, parked in the parking lot, went in the shop at at a little press conference when they came out Whole Foods. When this friend of hers came out, of a meeting of their conference. Boehner first. there was a note on Dawn's friend's car. Now, Dawn's friend's car had a "Stop Child Abuse" tag, BOEHNER: I don't know what games were being bumper sticker or something on it. It's a license played at the White House yesterday. They gang plate, a "Stop Child Abuse" license plate. All up on Boehner. But if they thought they were right, so Dawn's friend comes out of Whole Foods rolling me, they were kidding themselves. and there's a note on the car window. The note says, "I see your 'Stop Child Abuse' tag. Did you RUSH: I know exactly what happened, and so realize if a rapist gets a child pregnant, Sarah does he. He's respecting the request not to talk Palin wants to force that child to have the baby?" about it, but he was the focus of this. Look, The Obamaites are patrolling the Whole Foods Boehner shows up along with the Democrats -- and other grocery stores, the mall parking lots Barney Frank, Chris Dodd and so forth. If you're here, and they're looking for any opportunity just hearing this for the first time, Obama shows whatsoever. Now, there's so much to say about up after having been briefed by friends of the this. My attitude is, "This is the actions of a Treasury Secretary, Henry Paulson, at Goldman bunch of panicked, insecure, not-confident Sachs. Obama did not know what the Republican people, and they know they are lying." It doesn't position on this was. He had to be briefed. All matter to me that they know they're lying, but the Democrats in the White House meeting this is not what people who are confident about deferred to Obama, letting him speak for them. winning elections do. They don't want to win the The objective was to set this up as, "Obama election. They don't want to mandate. They just walked in, took over the meeting, got it all done, want power. They are lost souls with was dynamic," blah, blah, blah, blah, blah. The meaningless lives. They are sick. Our society has first thing Obama did was repeat the talking gotten so sick. points he'd been sent. "The Republicans in the House are the problem here, right?" he asked [You may recall that Obama has told his Paulson. That's what Boehner means by being supporters to get in the faces of independents "ganged up on," because everybody knows what and conservatives; he said, "I need you to go out conservatives believe and what they are, and and talk to your friends and talk to your there was no surprise here. There was never any Page -30- deal. So that caused the meeting to go south. don't misunderstand, and they get it. They are The meeting was lost. Obama blew it with his informed. incompetence. Here's Roy Blunt. Ladies and gentlemen, a Senate source said here BLUNT: Clearly the Democrats have a majority in at the top of the hour to expect a Senate bill to both houses of the Congress. If they want to do be out by midnight tonight. Now, that's this by themselves, they can do this by interesting. We all know who runs the Senate, themselves any minute they want to. If they Dingy Harry. If there's a Senate bill out by want to do this with us, we're prepared to have midnight, that's a little bit before Senator McCain that negotiation. can get back to Washington -- he-he-he -- to help participate in getting it done. Now, in regard to RUSH: Apparently they're not even talking to this bill coming out, the Senate version of the bill them. That's Roy Blunt from Missouri. It's his son coming out, a lot of you are already calling and that's the governor in Missouri, Matt Blunt. e-mailing members of Congress and the Senate. That's fascinating. He's agreeing with my There is a system in place that was started during sentiments here: They can do this all by the Clinton years, whereas all legislation that has themselves. They can drill for oil all by been passed by the House gets posted on the themselves! There's a whole bunch of stuff they Internet so anybody and everybody can read it could do by themselves but they're not doing it. prior to the president signing it. It's called the Thomas System. This obligation needs to be All right, Rasmussen daily tracking poll. Sandy in hammered. This rescue plan, when it finally is Chicago, you're not going to like this. But it's the hammered out, the Senate bill, House bill, and news. "Daily Rasmussen tracking poll Friday," then when they get their conference committee today, "shows Barack Obama attracting 50% of version of it, this legislation must be on the the vote, McCain earns 45. This is Obama's Thomas System, it must be on the Internet so biggest lead since his convention bounce peaked that everybody can analyze it before voting. If with a six-point advantage. New data shows the pressure can be brought to put that bill -- for McCain's lead is down to a single percentage example, if it's clearly stated in the bill that 20% point in Ohio and Florida. He leads by eight in of this bill is going to ACORN, people need to be West Virginia. Obama with a modest advantage able to see that, people need to be able to see it in Pennsylvania. Virginia update released later. on the Internet and blow up over it. They are Obama now leads by five among unaffiliated obliged to do this already. voters. Last week, the unaffiliated voters were leaning in McCain's direction. Stunning," says My guess is that because of the urgency and that Rasmussen, "to note how rapidly the dynamics of time is of the essence that they might try to forgo the campaign have changed. Two weeks ago, just it because they don't want anybody to know. So before the Wall Street financial crunch became this means to be hammered, that this legislation visible, McCain was up by three points in the needs to be put up on the Internet on the aftermath of his convention. A week ago today, Thomas System so that everybody can analyze it the candidates were even. Now Obama's lead is before voting. All right, to the audio sound bites. approaching new highs." Again, let me refresh your memory if you're just joining us. Let me tell you what happened in the RUSH: Purely anecdotal, but most of the callers White House meeting to set up these next series that are really upset and complaining about this, of sound bites. Obama was given the floor to all this going on, are women today, which I like, speak during White House negotiations for all Democrats. The Democrats deferred to Obama Page -31- so that he could be the sole speaker for the not present at the White House meeting, said, Democrat Party. This was done by design. They "Paulson and his team have not acted in good wanted to be able to spin after the meeting that faith for this President or the administration for he was just a brilliant negotiator, went in there which they serve." So that's what happened in with a command of the issues, took over the the White House meeting. That's why all the meeting from the president, was acting caterwauling today. By the way, Obama presidential even though he's not the president, admitted all this. If you knew what happened, and put us well on the road to getting a deal, and you heard his appearances on TV last night, blah, blah. But that's not what happened. then you would have no doubt what he was Obama blew it. It blew up in his face. talking about. He said, (paraphrasing) "Well, you know, I work better on the phone from afar." Obama, on his way over there, apparently -- this He's basically saying, "I coulda done better if I is from an Obama campaign source. Obama did wasn't there by talking on the phone, 'cause I not know what the House GOP position was on need my thinkers to tell me what I'm hearing and his way to the White House. "According to an what I should respond to." He didn't say that, I'm Obama campaign source, the notes were passed adding that. In another bite with Brit Hume, he to Obama via senior aides traveling with him, said, "Well, this is the problem with inserting who had been e-mailed the document via a presidential politics here." So Obama knew they current Goldman Sachs employee and Wall Street blew it big time, and so the Democrats today, fundraiser for the Obama campaign. 'It was made their whole agenda is to dump on McCain for clear that the memo was from "friends" and was blowing this up, and now we go to the audio reliable,' says the campaign source. The memo sound bites. Here's Barney Frank this morning on allowed Obama and his fellow Democrats to box the CBS Early Show, the anchorette said, "Wasn't in Republican attendees and essentially took the idea to get together and reach a compromise, what President Bush had billed as a negotiating had you in fact reached a compromise that fell meeting off the rails." What happened was apart?" Obama's notes contained the details of the House Republican proposal, and that's what he started FRANK: I didn't know I was going to be the with. He criticized it and asked Paulson what he referee of the internal Republican ideological civil thought of it. Paulson apparently then criticized war. it, and that's what John Boehner's talking about being ganged up on. REPORTER: Right. Obama went in unprepared. He did not have a FRANK: To my surprise yesterday the House prompter. Once he started out that way, the Republicans came up with their own entirely new meeting fell apart, yelling and screaming, and it plan. And it is a -- an ambush plan. was over, and it was reported that a beleaguered Bush had to struggle to regain control of things RUSH: There's nothing new about what the and calm everybody down. Now, what's House Republicans believe. Conservatism is troubling about this is that Hank Paulson was conservatism. The House Republicans were working in concert with Obama, apparently, never involved in the deal. They announced a according to all of this is, the American Spectator deal yesterday that didn't exist, the Democrats blog -- Hank Paulson was working with Obama via did. They announced a deal that didn't exist to -- he was removed from it -- via his friends at try to head off McCain's presence having any Goldman Sachs, his former firm, and Obama impact on this. So now they're doing a 180 fundraisers. A House Republican leader who was turning this all the way around, the Drive-Bys are Page -32- not going to tell you this, you're not going to hear away from a debate. There is absolutely no this anywhere else. They're carrying the water reason at all why Senator McCain should not for people like Barney. It was an ambush. debate tomorrow except he doesn't want to. They're trying to portray the White House plan as an ambush 'cause their candidate botched it. RUSH: Well, now, Congressman Frank, I have a Barney Frank again, the anchorette at CBS, "Well, question. You guys are saying that McCain's do we have a solution by the end of the weekend, presence blew this up. You're saying McCain yes or no?" showed up and you were ambushed, and Dingy Harry and Claire McCaskill and Chuck Schumer FRANK: It depends on the House Republicans are all saying, "Get McCain outta town. McCain dropping this revolt against the president and blew this. McCain went into that meeting and it cooperating and trying to amend the plan and at all fell apart." Now, I want to know, if McCain this point I can't give you a yes or no because it's didn't say anything, if McCain didn't say anything up to the House Republicans and their war, I substantive, and if he didn't say anything 'til the think on behalf of Senator McCain, with President end of the meeting, how could he have blown it Bush. up? And Dingy Harry has been saying today that McCain didn't say much, frankly couldn't RUSH: Nothing could be further from the truth. understand what he was saying. Dingy Harry said The fact of the matter is there never, ever, was a he spoke at the end of the meeting, "I don't really deal. The Democrats have the votes to pass know what he said." Then how could he have everything that they want. We don't need the blown it up? How could McCain have blown it Republicans. Ask yourself why. If it's such a great up? We know that that did not happen. Last deal, if this will save America, if this will prevent night, same press conference, Barney Frank. disaster, if this will prevent a depression, why don't the Democrats, thinking the country is FRANK: No. Ms. Pelosi will not bring a partisan important first, pass the bill? Why do they want bill to the floor. She will not say that you're going Republican votes on this? If this is so wonderful, to have a one-sided Democratic bill being if this is the best deal ever, why don't they just attacked by the House Republicans in response to embarrass the Republicans, pass this and leave a request by George Bush to do something. And the Republicans out of it? As I said earlier, they that's not just internal politics. That's not good want the Republicans to refute their beliefs. They for the country. want the Republicans to repudiate conservatism so that they can go back and make 'em do it over RUSH: Once again, the question must be asked, and over again This is pure, 100% politics. It's who cares, Bush is a lame duck, if this is so not about the deal right now, it's not about the wonderful, if this is so great, if you guys could economy, it's not saving it. This is about own Washington for all those future years presidential politics, and this is about destroying because you're the only ones that have the guts House conservatives. Last night, Washington, to do something right, why not do it? She won't Capitol Hill, after a meeting at the White House, bring forth a partisan bill to the floor? Meaning, Barney Frank spoke to the press. they're not going to do this without Republican cover, 'cause it must have some problems. FRANK: Senator McCain's not -- did not have anything substantive to say, said the most RUSH: Yeah, it's fascinating to me to listen to general things. Based on what's now going on, I Barney Frank lie and spin. Barney Frank is, I think, can tell you this. There is no reason in the world more than anybody else responsible for this why anybody should use this as an excuse to stay situation -- and he twists it into the fault of the Page -33- Republican minority in the House! The Mayflower Hotel. Not long, some hours after the Republican minority, parliamentarily, cannot stop White House meeting blew up, enough time for anything Barney Frank wants to do. Look at that his thinkers to come up with an explanation. You layer of lies that we got. House Republicans now know what happened in there. coordinating with McCain against Bush, the Republicans have no role in this other than fixing the problem, and they're only responding 'cause Bush wants something done? This is the guy who said that he didn't know there was a male prostitution ring going on his own basement? Barney Frank needs to testify under oath for what he has done, and so does Chris Dodd! So Pelosi will not bring a one-sided bill to the floor, says Barney Frank. So now they're deferential to the Republicans. The reason she won't bring this bill to the floor and ram it through is because the bill obviously stinks, and she needs cover. Meanwhile, Obama has not supported the plan. Has anybody noticed this? I have noticed it. Have you heard Obama support the plan? We've got a plan, right? We When Bush went to the Democrats and asked have a plan; everybody had signed on to it, they them to start speaking in negotiation, they all said yesterday morning. And then we find out deferred to Obama. He didn't know what to say. there wasn't a plan, there wasn't an agreement, He had been given notes by friends of Henry and I haven't heard Obama say he supports it. Paulson in an e-mail on the way to the meeting. See, Obama votes "present." Obama doesn't The first thing on the notes was: criticize the make decisions. That's why he doesn't want to Republican proposal. John Boehner was sitting be there. He wants to be on the phone there. He asked Paulson about it. This caused a negotiating and listening. brouhaha. The meeting fell apart. Obama walked out of there and the Democrats, Harry So seems to me that we could easily say here that Reid and Pelosi... I guarantee you they walked out Obama and the Democrats don't agree, that of there knowing full well what had happened, Nancy Pelosi and Barney Frank want the that their guy and his competence had been on conservatives to back a bill that their own party full display, that that meeting broke down leader has refused to back as of right now. because of him and his inability to run it and lead They're doing everything to cover for the it, as they tried to engineer. So they had to start incompetence of this little man, Barack Obama. damage control, and the first thing out of the box I realize you, some of you just joining me, may was this. think that I have to prove it when I say that Barack Obama admitted he blew up the White OBAMA: I think that the way that I've been House meeting. I'm going to give you two sound working over the last week constantly in contact bites. First he had a press conference at the with the secretary and the congressional leaders, Page -34- um, er, you know, may end up creating an what happened in the meeting today. You put environment in which you can actually get presidential politics in there, it's just not helpful." something done. They walked out of there last night. I guarantee you, the Democrats walked out of there scared to RUSH: So now that you know what happened in death that the truth would get out that Obama the meeting, now you can interpret this. "I work was set up for a huge success and blew it, so they better when I'm not there. I work better on the started the CYA last night, and that's why these phone, you know, when I'm in constant contact Democrats today are carrying the water: "Get on the phone, and that way people with me can McCain out of town; McCain blew it up," and so tell me what I'm hearing and tell me what my forth and so on. Just wanted you to know the response ought to be, because I need my thinkers truth. But the bottom line is: old Barry hasn't with me. But if I'm in the room and I can't supported the plan, either. consult my thinkers 'cause everybody can see me consulting the thinkers, then they know I'm a Obama has not said when he thinks about this fraud. If I don't get my Cliff Notes from plan -- that there was, by the way, the Democrats somebody, I'm in big trouble." said agreement in principle to yesterday. So Dingy Harry: "We want to know where McCain Then, after this, Obama started making the stands on this; McCain's gotta get the House rounds of the cable networks, asking for time. He Republicans." Barney Frank: "I think we were set asked for time on Fox News Channel's Special up. We gotta get McCain to get the House Report with Brit Hume. And a stunned Brit Hume Republicans in there. We're only doing this said, "Obama has contacted us and wants to go because the president asked us to." So now they on the air." So he gets him, and Hume said, want to help Bush? Ha! The Democrats want to "Look, if tomorrow midday we're where we are," help Bush get what he wants? (laughing) Right. meaning today, "and if we still got an outstanding So now, ladies and gentlemen, Barack Obama problem with a package that isn't agreeable so once again is given the opportunity to vote that you can get majorities of both parties, both "present," not take a stand, not take a position. houses, would it make sense for you to go down The more the politics of this unfolds, the more it to Mississippi or would it be better to stay here is becoming crystal clear to me that there's a lot and try to do what you could?" of stuff in this bailout bill that stinks to high heaven. OBAMA: Well, here -- here -- here's my, uh, my observation, "Brett," and I think it -- it may have RUSH: Let me ask you a question, my fellow been confirmed in the meeting today. Uh, when citizens out there. If you are on the line for $700 you inject presidential politics into delicate billion, and that's just for starters, do you want negotiations, uh, s-sometimes it's not helpful. 20% of it going to a corrupt, fraudulent voter For us, precisely at this difficult time, to be able registration group called ACORN which has been to say to the American people for 90 minutes -- accused of voter fraud throughout the country, is and it's possible to fly down to Mississippi and a Democrat grassroots organization, is back fairly quickly -- "that this is where we want responsible for a big part of this problem and was to take the country and this is what this one of the mentor community organizations potentially means for you," I continue to think Obama worked with when he was a street that's the most important thing we can do. agitator back in Chicago? We're being told that we have a crisis. It could be a depression. It RUSH: Okay, so the first thing out of his mouth, could be bad. We gotta do it now, and yet, 20% "You know what, when you inject... it confirmed of the $700 billion is supposed to go to a Page -35- Democrat voter registration group? You want to does and how big his heart really is. He is a pay for that? And, is there any single reporter, phoney, through and through. one single reporter, out there capable of asking this question of Barney Frank or any other More about Obama's soul; what exactly does it mindless liberal spewing their talking points? Is mean to be a community organizer? Who is there one reporter, one journalist, who will ask Obama modeled after? the ACORN question in relationship to a future possible crisis, recession, depression? http://www.americanthinker.com/2008/09/bar ack_obama_and_alinskys_rule.html Additional Rush Links Bush called for reforms of FNMA and FHLMC 18 times in 2008 alone: Bill Clinton called Palin gutsy, spirited and real: http://gatewaypundit.blogspot.com/2008/09/b http://politicalticker.blogs.cnn.com/2008/09/2 ush-called-for-reform-of-fannie-mae.html 4/bill-clinton-ill-campaign-for-obama-after-the-j ewish-holidays/ Some men are off their noggins when it comes to Sarah Palin as well. Democratic Congressman Bill Clinton telling the media that Obama is the Alcee Hastings logically explains: "Anybody toting one dodging the debates: guns and stripping moose don't care too much about what they do with Jews and blacks. So, you http://blogs.abcnews.com/politicalradar/2008/ just think this through." 09/bill-clinton-do.html http://blogs.abcnews.com/politicalradar/2008/ $100,000 grant that Obama was awarded back in 09/florida-congres.html 2001...what happened to it? This sounds considerably more important than troopergate. 18% of voters till undecided: http://www.suntimes.com/news/watchdogs/1 http://apnews.myway.com/article/20080924/D 184049,CST-NWS-watchdog25.article 93D1RFG0.html Obama's round-faced brother George lives in a Libel charges threatened against Obama critics: hut. Millionare Obama ignores him although he runs on the religious tenet, "I am my brother's http://gatewaypundit.blogspot.com/2008/09/ keeper." This means, I will vote to take your tax missouri-sheriffs-prosecuters-form.html dollars and give it to someone else who will vote for me next time around. George isn't voting, so 5 lying ads from Obama (this is from the NY Obama has given him no money at all. Times): http://www.telegraph.co.uk/news/newstopics/ http://www.nytimes.com/2008/09/26/us/politi uselection2008/barackobama/2590614/Barack- cs/26ads.html Obamas-lost-brother-found-in-Kenya.html This is important because it is a window into the soul of Obama. You can see what he actually Page -36-
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