Ramblings of a Jackhole

Did anyone run the numbers on Cash For Clunkers?

An average Cash for Clunkers vehicle received 15 mpg. At 12,000 miles per year that’s 800 gallons a year of gasoline.

An average replacement vehicle receives 25 mpg. At12,000 miles per year uses 480 gallons a year.

Therefore, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year per clunker.

The President and Congress tells us that 700,000 “clunkers” were taken off of the road under this program. So that’s a TOTAL savings of 224 million gallons / year.  Wow.  224 million.  BIG NUMBER.

Now, on average, a barrel of oil can be refined down to 19.5 gallons of gasoline. That equates to a bit over 11.5 million barrels of oil. Wow, yet another BIG number?

Well, the annual oil consumption in the US is about 7.5 BILLION barrels of oil. So “Cash for Clunkers” will decrease our annual oil usage by 0.16%, our about half a day of the total US oil consumption every year.

Still, we all must care about foreign dependency and even this savings should be desirable right?

Sure, but at what cost? Let us see.

From the buyers perspective, the current nationwide average price for a gallon of gas is just under $2.50. That means the average clunker owners will save $800 a year in gas costs.  The National Automobile Dealers Association tells us the average cost of a new car is $28,400.  J.D. Power tells us that the average auto loan is for 64 months (five years, four months).  Bankrate.com shows the average interest rate to be over 8%.  That means the average clunker buyer will be spending over $6500 in interest for their loan (over $1300 a year).  The AAA estimates the average depreciation of a vehicle around $3400 a year, or $17,000 in five years.  That means that after five years the average “cash for clunkers” buyer spent over $23,500 to save $4000, for a loss of $18,500. Even if gas goes to $5.00 a gallon they will have lost over $15,000 in five years. And we’re encouraging our citizens to do this?  Why would we even think about it?  Won’t this just make them MORE dependent on government hand outs?  Would the President and Congress ever really WANT that?  Hmmmm….

Well, the President and Congress thought it was a good idea to spend $3 billion to decrease the annual need of 11.5 million barrels of oil, which costs $775 million at today’s rates.  One might argue at we’ll “break even” after five years, but that is ignoring the fact that even without cash for clunkers US consumers will eventually trade in their cars for more efficient ones.  All the “Cash for Clunkers” program did was to speed this process up by a year or two at the most.  Even if this sped up the trade-in rates by TWO years, the $3 BILLION would prevent the buying of less than $1.5 BILLION over the two years.  And that isn’t money that the government would have spent, but oil companies.

How is investing in a program that encourages citizens to go into debt and come out behind a good idea?  How is spending $3 billion on reducing consumption by less the 1/700th of our use a good idea?

And they wonder why we don’t trust them with our health care spending…

Democrats, realizing the big success of the President’s “Cash For Clunkers” rebate program, have revamped a major portion of the Obama Nationalization of the Health Care Plan.

President Obama, Speaker Pelosi, and Sen. Reid are expected to make this major announcement at a joint news conference next week. I, the Jackhole, with my wide resources have obtained an advanced copy of the proposal which is named….

“CASH FOR CODGERS” and it works like this… Couples wishing to access health care funds in order to pay for the delivery of a child will be required to turn in one old person on the day of delivery. The amount the government grants them will be fixed according to a sliding scale. Older and more prescription dependent codgers will garner the highest amounts.

Special “Bonuses” will be paid for those submitting codgers in targeted groups, such as smokers, alcohol drinkers, persons 10 pounds over their government prescribed weight, – and any member of the Republican Party.

Smaller bonuses will be given for codgers who consume beef, soda, fried foods, potato chips, lattes, whole milk, dairy products, bacon, Brussel sprouts, cheese, or Girl Scout Cookies.

All codgers will be rendered totally useless via a toxic injection, – similar to that given to the engines of the ‘clunker’ trade ins. This will insure that they like the vehicle ‘clunkers’ are not secretly resold (traded in) or their body parts harvested to keep other codgers in repair and among society.

Judging by this I should be gone soon. I’ll miss you guys…

The Dept Of Defense briefed the president this morning, they told President Obama that 2 Brazilian soldiers were lost in Iraq. To everyone’s surprise, all the color drained from Obama’s face.
Then he collapsed onto his desk, head in his hands,  visibly shaken, almost in tears. Finally, he composed himself and asked, ‘Just how much is a brazilian?’

This shouldn’t surprise us as he clearly has no understanding of how much a trillion is either.

I’m not sure if I buy what they are saying, but it is interesting.

I guess the “Bilderberg Group” = “The Illuminate” = “Trilateral Commission” according to the video.  I have to admit that I think they hate Obama as much as they hated Bush.

It’s a very long video (nearly TWO hours) by Alex Jones, a talk show host, on how this Bilderberg Group and the Trilateral Commission is setting up a “One World Order.” Reminds me a bit of what Mel Gibson’s character Jerry Fletcher would make in the movie “Conspiracy Theory”.

Of course Jerry turned out to be right about at least ONE thing…

You know one when you see one!
January 21, 2009
Outgoing President George W. Bush quietly boarded his helicopter and left for Texas , commenting only: “Today is not about me.  Today is a historical day for our nation and people.”

January 21, 2001:
Outgoing President Bill Clinton scheduled two separate radio addresses to the nation, and organized a public farewell speech/rally in downtown Washington D.C. scheduled to directly conflict with incoming President Bush’s inauguration ceremony.

January 21, 2009
President Bush left office without issuing a single Presidential pardon, only granting a commutation of sentence to two former border patrol agents convicted of shooting a convicted drug smuggler.  He did not grant any type of clemency to Scooter Libby or any other former political aide, ally, or business partner.

January 21, 2001:
President Clinton issued 140 pardons and several commutations of  sentence on his final day in office.  Included in these were: billionaire financier, convicted tax evader, and leading Democratic campaign contributor Marc Rich; Whitewater scandal figure Susan McDougal; Congressional Post Office Scandal figure and former Democratic Congressman Dan Rostenkowski; convicted bank fraud, sexual assault and child porn perpetrator and former Democratic Congressman Melvin Reynolds; and convicted drug felon Roger Clinton, the President’s half-brother.

January 21, 2009
The Bush daughters left gift baskets in the White House bedrooms for the Obama daughters, containing flowers, candy, stuffed animals, DVD’s and CD’s, and heartfelt notes of encouragement and advice for the young girls on how to prepare for their new lives in the White House.

January 21, 2001:
Clinton and Gore staffers ripped computer wires and electrical outlets from the White House walls, stuffed piles of notebook papers into the White House toilets, systematically removed the letter “W” from every computer key pad in the entire White House, and damaged several thousand dollars worth of furniture in the White House master bedroom.

Headlines in 2001:
“Republicans spending $42 million on inauguration while troops die in unarmored Humvees”
“Bush extravagance exceeds any reason during tough economic times”
“Fat cats get their $42 million inauguration party, Ordinary Americans get the shaft”

Headlines in 2009:
“Historic Obama Inauguration will cost only $170 million”
“Obama Spends $170 million on inauguration; America Needs A Big Party”
“Everyman Obama shows America how to celebrate”
“Citibank executives contribute $8 million to Obama Inauguration”

The following is a condensation of a series from the Investor’s Business Daily explaining “What Caused the Loan Crisis”:

1977:  Pres. Jimmy Carter signs the Community Reinvestment Act into Law.  The law pressured financial institutions to extend home loans to those who would otherwise not qualify.
The Premise:  Home ownership would improve poor and crime-ridden communities and neighborhoods in terms of crime, investment, jobs, etc.

Results: Statistics bear out that it did not help.

How did the government get so deeply involved in the housing market?

Answer: Bill Clinton wanted it that way.

1992:  Republican representative Jim Leach (IA) warned of the danger that Fannie and Freddie were changing from being agencies of the public at large to money machines for the principals and the stock-holding few.

1993:  Clinton extensively rewrote Fannie Mae and Freddie Mac’s rules turning the quasi-private mortgage-funding firms into semi-nationalized monopolies dispensing cash and loans to large Democratic voting blocks and handing favors, jobs and contributions to political allies.  This potent mix led inevitably to corruption and now the collapse of Freddie and Fannie.

1994:  Despite warnings, Clinton unveiled his National Home-Ownership Strategy which broadened  the CRA in ways congress never intended.

1995:  Congress, about to change from a Democrat majority to Republican, Clinton orders Robert Rubin’s Treasury Dept to rewrite the rules.  Robt. Rubin’s Treasury reworked rules, forcing banks to satisfy quotas for sub-prime and minority loans to get a satisfactory CRA rating.  The rating was key to expansion or mergers for banks.  Loans began to be made on the basis of race and little else.

1997 – 1999:  Clinton , bypassing Republicans, enlisted Andrew Cuomo, then Secretary of Housing and Urban Development, allowing Freddie and Fannie to get into the sub-prime market in a BIG way.  Led by Rep. Barney Frank and Sen. Chris Dodd, congress doubled down on the risk by easing capital limits and allowing them to hold just 2.5% of capital to back their investments vs. 10% for banks.  Since they could borrow at lower rates than banks their enterprises boomed.

With incentives in place, banks poured billions in loans into poor communities, often “no doc”, “no income”, requiring no money down and no verification of income.   Worse still was the cronyism:  Fannie and Freddie became home to out-of work-politicians, mostly Clinton Democrats.  384 politicians got big campaign donations from Fannie and Freddie.  Over $200 million had been spent on lobbying and political activities.  During the 1990’s Fannie and Freddie enjoyed a subsidy of as musch as $182 Billion, most of it going to principals and shareholders, not poor borrowers as claimed.

Did it work?  Minorities made up 49% of the 12.5 million new homeowners but many of those loans have gone bad and the minority home-ownership rates are shrinking fast.

1999: New Treasury Secretary, Lawrence Summers, became alarmed at Fannie and Freddie’s excesses.  Congress held hearings the ensuing year but nothing was done because Fannie and Freddie had donated millions to key congressmen and radical groups, ensuring no meaningful changes would take place.  ”We manage our political risk with the same intensity that we manage our credit and interest rate risks,” Fannie CEO Franklin Raines, a former Clinton official and current Barack Obama adviser, bragged to investors in 1999.

2000:   Secretary Summers sent Undersecretary Gary Gensler to Congress seeking an end to the “special status”.  Democrats raised a ruckus as did Fannie and Freddie, headed by politically connected CEO’s who knew how to reward and punish.  ”We think that the statements evidence a contempt for the nation’s housing and mortgage markets” Freddie spokesperson Sharon McHale said.  It was the last chance during the Clinton era for reform.

2001:   Republicans try repeatedly to bring fiscal sanity to Fannie and Freddie but Democrats blocked any attempt at reform; especially Rep. Barney Frank and Sen.Chris Dodd who now run key banking committees and were huge beneficiaries of campaign contributions from the mortgage giants.

2003:  Bush proposes what the NY Times called “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago”.  Even after discovering a scheme by Fannie and Freddie to overstate earnings by $10.6 billion to boost their bonuses, the Democrats killed reform.

2005:  Then Fed chairman Alan Greenspan warns Congress:  ”We are placing the total financial system at substantial risk”.  Sen. McCain, with two others, sponsored a Fannie/Freddie reform bill and said, “If congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole”.  Sen. Harry Reid accused the GOP ;of trying to “cripple the ability of Fannie and Freddie to carry out their mission of expanding home-ownership”  The bill went nowhere.

2007:  By now Fannie and Freddie own or guarantee over HALF of the $12 trillion US mortgage market.  The mortgage giants, whose executive suites were top-heavy with former Democratic officials, had been working with Wall St. to repackage the bad loans and sell them to investors.  As the housing market fell in ‘07, sub-prime mortgage portfolios suffered major losses.  The crisis was on,  though it was 15 years in the making.

2008:  McCain has repeatedly called for reforming the behemoths, Bush urged reform 17 times.  Still the media have repeated Democrats’ talking points about this being a “Republican” disaster.  A few Republicans are complicit but Fannie and Freddie were created by Democrats, regulated by Democrats, largely run by Democrats and protected by Democrats.  That’s why taxpayers are now being asked for $700 billion!!

If you doubt any of this, just click the links below and listen to your lawmakers own words.  They are condeming!

http://www.youtube.com/watch?v=68D9XrqyrWo&feature=related

http://www.youtube.com/watch?v=pIgqfM5C8lY

http://www.youtube.com/watch?v=H9juJr8CSY4&feature=related

And you’ll find a bunch of others devoted to the same topic – just look.

Postscript:  ACORN is one of the principle beneficiaries of Fannie/ Freddie’s slush funds.  They are currently under indictment or investigation in many states.  Barack Obama served as their legal counsel, defending their activities for several years.