The Political Bear

Government bailouts are an intrusion into our liberty. At there best they take money from proven producers and transfer funds to proven losers, and at there worst they take from our kids and even future generation before they even have a chance to produce. This video should get song of the year.

On day two, Obama closed Gitmo. This is a good development for ideological liberty, but Pres. Obama now has more information than the rest of us, as did Pres. Bush when he opened it, so lets hope (I don’t like using the word hope when referring to national safety) that it is a good choice.

It is interesting that he has left himself a little wiggle room with this new order.

The unfine print of Mr. Obama’s order is that he’s allowed room for what might be called a Jack Bauer exception. It creates a committee to study whether the Field Manual techniques are too limiting “when employed by departments or agencies outside the military.” The Attorney General, Defense Secretary Robert Gates and Director of National Intelligence-designate Dennis Blair will report back and offer “additional or different guidance for other departments or agencies.”

In other words, Mr. Obama’s Inaugural line that “we reject as false the choice between our safety and our ideals” was itself misrepresenting the choices his predecessor was forced to make. At least President Bush was candid about the practical realities of preventing mass casualties in the U.S. (link)

I other words, some people still might be able to use the same, unless they invent new more effective techniques, to break their prisoners. The Teflon President is a slick one.

Now that the Democrats have a strangle hold on both the House, Senate, and the White House Americans will soon start learning what they actually stand for.  Lets start calling them on their plans.

This is a good start-

Is it possible that insider trading at Bank of America sparked a rally today? Or did several high ranking officials all decide to invest large sums of money into what didn’t appear to be a strong investment the day before.

According to a Bloomberg article five directors of Bank of America bought a combined 500,000 shares for around $3,000,000. Seen as a sign of confidence in the company that $3,000,000 investment is now worth almost 30% more since the stock gained $1.58 through today’s trading.

Lewis bought 200,000 shares of the bank at prices ranging from $5.98 to $6.06 yesterday, while director Robert Tillman also bought 200,000 shares for $5.77 to $5.78, according to a filing today. Temple Sloan Jr., lead director of the Charlotte, North Carolina-based bank, bought 41,800 shares. Buyers also included William Barnet III, Jacquelyn Ward and John Collins….Bank of America shares advanced $1.58 to $6.68 at 4:15 p.m. in New York Stock Exchange composite trading. Earlier in the session, the shares reached $6.88. The company fell 29 percent yesterday to $5.10, a two-decade low, after Paul Miller, analyst at Friedman Billings Ramsey Group Inc., said the bank needed to raise $80 billion of capital to reach adequate levels. JPMorgan added 25 percent today to $22.63. (link)

Insider trading can itself take many forms, here is the definition of insider trading from the SEC:

“Insider trading” is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. For more information about this type of insider trading and the reports insiders must file, please read “Forms 3, 4, 5″ in our Fast Answers databank.

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include “tipping” such information, securities trading by the person “tipped,” and securities trading by those who misappropriate such information. (link)

As alluded to above, these trades must have involved the directors tipping each other off about their large purchases. This large buy had the intended purpose of giving others the appearance of confidence, in turn providing an incentive for them to buy stocks as well as eventually increasing the price of the stocks as seen in today’s trading.

Therefore these directors, whom are getting richer by the trade, might be doing so illegally. However, while that would be bad what is worse is that Bank of America is a government backed (actually twice backed) company. Directors should be allowed to make as much money as possible as long as their insider trading was of the legal kind. I just believe that this story is an excellent example of the boondoggle and possible jackpot that a government backed private company creates.

Presidential approval ratings from the past should provide Barack Obama with a look at the fickle future that lies ahead of him and the cost of making tough decisions. Historically, Presidents have entered office on a high note, but after serving their term have not been as lucky. With all general rules there are exceptions, here it is Clinton, but the trend is definitely strong enough to be used as a forecast for what is to come.

This forecast doesn’t necessarily mean that I am already predicting that President Barack Obama will be a bad a President, I am merely saying that a severe downturn in his approval rating would be an excellent bet.  This historical downturn is due to several factors, but primarily it is because in the past President Obama, like other past Presidents, was able to avoid making tough decisions before taking office by merely voting present or hiding behind the rest of his party. Now, however, he is the one person that must carry burden of his decisions.

Good luck Mr. President

Bush just declared that Washington, DC is in a state of emergency. (Link)

Why didn’t he declare this state of emergency during the campaign? The Democrats now have a near filibuster proof majority in the Senate, they have enough of a Majority in the House that they can lose members on every vote and still feel comfortable with winning, and they have a President with no executive experience getting ready to take the ownership of the most powerful position in the world. I would say that declaring Washington, DC as being in a state of emergency is an understatement.

To make things even more gloomy, in the Senate majority leader Reid is bent on taking all rights away from the minority party. The Senate was intended to be a place for debate, a place where the minority had a voice, where small states stood equal to big states, and where even one person can stand up against the whole.  However, Reid is running the US Congress like a condo association, but Congresses decisions don’t just effect a hundred people, they make real decisions that effect millions peoples lives, and have real consequences to everyone. Reid has not allowed a Republican amendment in over 120 days, he continually files cloture to end debate (sometimes before debate has started), and he has shown no sign of stopping.

Again, the call from President today couldn’t be more right. I just wish that he made it for the right reasons instead of declaring Washington, DC as in a state of emergency so that he can spend more money.