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Can Obama Recover From His Massive Failures?

Michael Redbourn — Thu, 08 Sep 2011 09:49:14 +0000

At U.N., Obama faces problems on larger stage

By Laura MacInnis WASHINGTON (Reuters) – President Barack Obama, grappling with a poor economy and slumping approval ratings, faces problems on a larger stage this week at the United Nations, with challenges to his …

Publish Date: 09/19/2011 8:35

http://www.huffingtonpost.com/2011/09/19/at-un-obama-faces-prob_n_969141.html

RealClearPolitics – Obama: Failing the Lincoln Test

Obama: Failing the Lincoln Test. By Michael Gerson. WASHINGTON — During his recent speech to Congress, President Obama gave Republicans this ideological glove to the face: "We all remember Abraham Lincoln as the …

Publish Date: 09/13/2011 3:00

http://www.realclearpolitics.com/articles/2011/09/13/obama_failing_the_lincoln_test_111312.html

What President Obama Inherited

Obama inherited a deep recession and financial crisis resulting from problems that had been building for years and those responsible include:

Borrowers and lenders on Wall Street and Main Street.
The Federal Reserve.
Regulatory agencies.
Ratings agencies.
Different presidents and Congress.

What Obama Will Bequeath?

Huge deficits.
Massive interest payments which could ultimately destroy the Republic.
Higher inflation.
A weaker dollar.
Pressure for higher taxes.

What Exactly Did Obama Enact?

An $825 billion stimulus package.
The Public-Private Investment Partnership to buy toxic assets from the banks.
Cash for clunkers.
The home-buyers credit.
The auto bailouts.
Five versions of foreclosure relief.
Numerous lifelines to Fannie Mae and Freddie Mac.
Financial regulation and health-care reform.
Energy subsidies.

Which Succeeded?

The auto bailouts?!

Even though a rapid private bankruptcy was preferable and GM and Chrysler are not yet de-nationalized successes, we can I believe, mark this up as a success.

Which Failed?

The stimulus bill cost an astounding $280,000 per job which is over five times median pay, as reckoned by the administration’s inflated estimates of jobs "created or saved", and much more using more realistic estimates.
Cash for clunkers cost $3 billion, just to shift car sales forward a few months.
The Public-Private Investment Partnership, despite cheap federal loans, generated 3% of the $1 trillion claimed, and toxic assets are still hindering some financial institutions.
The Dodd-Frank financial reform law institutionalized "too big to fail" amid greater concentration of banking assets and mortgages in Fannie and Freddie.
The foreclosure relief program permanently modified only a small percentage of the four million mortgages the president promised.

The economic records set on Mr. Obama’s watch are historic and no corporate CEO could survive such a clear history of failure.

Under The Obama Administration Watch:

The US experienced the first downgrade of sovereign U.S. debt in American history.
Relative to GDP, it now has the highest federal spending in U.S. history with the exception of the peak years of World War II
The highest federal debt since just after World War II.
The fraction of the population working is the lowest since 1983 and long-term unemployment is by far the highest since the Great Depression.
Job growth during the first two years of recovery after a severe recession is the slowest in postwar history.
Home-ownership rate is the lowest since 1965 and foreclosures are at a post-Depression high.
The share of Americans paying income taxes is the lowest in the modern era, while dependency on government is the highest in U.S. history.

Can Or Will Obama Recover From The Catastrophes?

Based on his present ratings in the polls and the fact that the economy has little or no chance of improving before the elections, one would have to say, "No he will not recover!".

And to make a comeback even less likely is the likelihood that the Obama administration will try to deliver more of the same things that failed.

Just fourteen years ago Obama was an active member of the New Party (read Communist) and he didn’t quit; it got shut down by the courts. Meaning that there is no reasonable chance that he will switch to anything like a free market economy, soon or ever!

Obama, “I Don’t Quit”

Michael Redbourn — Sat, 30 Jan 2010 12:49:05 +0000

But Most Americans Now Wish That He Would!

Obama To Push The Same Failed Agendas

Perhaps the he most revelatory words from President Barack Obama’s State of the Union address were the ones that he uttered near to the end of his speech, "I don’t quit’, and what became clear was that he intends to pursue his favored agendas that caused the loss of Massachusetts and most likely Virginia and New Jersey as well.

And many pundits are now considering that his rejection of the public’s will, might well cause Pelosi to lose control of the house.

What Does Obama Still Want?

He Implied That He Would Continue To Push For:

a) A government takeover of health care.
b) An already rejected cap-and-trade legislation that would raise taxes and power costs.
c) Another stimulus bill, even though only 30% of the first $700 billion has so far made its way into the system and the real jobless rate is now at 17.3%

It’s presently far too common for journalists to avoid mentioning the 17.3% figure which is the true one.

* Aren’t people that gave up looking for a job "unemployed"?

The Inconsistent Messages

After seeming to agree that private businesses create jobs, Obama then proposed some business tax breaks but then segued into promoting his big government ideas by suggesting that more subsidies for green jobs and mass transit projects like high-speed rail would be needed.

He then recommended a spending freeze on a small portion of the 2011 budget which the liberals are strongly against, but went on to add that it would not happen until after he had increased spending this year.

* A ‘spending freeze’ means that past spending increases will still be locked into the budget.

Obama Will Effectively Raise Taxes

Obama then boasted that he hadn’t raised taxes, but he failed to mention that he will let income tax increases go into effect – by letting the Bush tax cuts lapse at the end of this year.

An Attempt At Bi-Partisanship?

Obama seemingly reached out to Republicans by suggesting that he was in favor of more nuclear power plants and an increased exploration of offshore oil, but what he didn’t mention was that his failed cap-and-trade bill didn’t mention nuclear power or the expansion of domestic oil production.

A Call For Greater Unity?

Under the banner of bringing about unity, Obama went on to attack bankers, corporate executives and lobbyists and even verbally assaulted the U.S. Supreme Court for upholding the speech rights of companies in last week’s ruling on corporate campaign contributions, and we even saw Supreme Court Justice Alito mouthing the words, "Not true"!

Bill Clinton Saw The Light

Bill Clinton was quick to see that the only chance of survival was by moving to the political center after suffering stunning election losses in 1994, but Obama for all his supposed brilliance has not yet grasped the nettle, and his message still favored a big government approach with a possible smattering of tax breaks and other sleights of hand in an attempt to provide his extreme left wing policies with a different veneer.

BMV Is Offering Big Discounts On Its Diesel Cars

Michael Redbourn — Wed, 29 Jul 2009 11:40:43 +0000

Is It Time To Trade In Your Clunker For A BMV?

BMV (Bayerische Motoren Werke) which is now the world’s biggest luxury-car maker, is offering a $4,500 rebate on its two diesel models in the U.S. in order to attract customers who otherwise wouldn’t be able to qualify for the government’s fuel-economy clunkers trade-in program.

The discounts apply to the 335d sedan and X5d sport-utility vehicle, which are BMV’s most-efficient autos presently sold in the U.S.
The rebates began last week and will run through Aug. 31.

Go to Cash For Clunkers now and find out the latest news about it.

A diesel vehicle’s fuel mileage is as much as 33% better than that of gasoline powered by engines, and diesel drive autos account for more than one half on BMVs’ global sales.

U.S. buyers became eligible for trade-in credits up to as much as much as $4,500 on July 24th under new federal incentives that encourage people to trade in their clunkers.

The $1 billion clunker program sets a $45,000 retail-price ceiling on new vehicles, which means that without the rebate, that the X5d who regular selling price is $51,200 would have been ruled out.

Diesel driven cars presently account for less than 3% of U.S. new- vehicle sales, and Aaron Bragman, who is an IHS Global Insight Inc. analyst in Troy, Michigan said, “There really is a question of, ‘Is there a market for diesel in the luxury realm?’. It can’t hurt, especially if they are trying to get the word ‘diesel’ out there first and foremost”.

U.S. sales of BMW’s 335d were just a meager 487 through the first half of this year, which is about 1% of the volume for the 3-Series line, and Dave Buchko, who is a spokesman for BMW said, “We wanted to emphasize the efficient nature of these vehicles and raise people’s awareness”.

Buyers who have qualified clunkers will receive,

a) $900 from the clunker program if the buy a 335d

b) $1,800 if they buy an X5d

The U.S. EPA (Environmental Protection Agency) rates the 335d at 36 miles (58 kilometers) per gallon in highway driving and the X5d at 26 mpg.

Understand The Cash For Clunkers Program That Starts Tomorrow

Michael Redbourn — Thu, 23 Jul 2009 17:26:29 +0000

Cash For Clunkers

The aim of the cash for clunkers program which is due to start tomorrow, July 24th is to tempt would be buyers into trading in their old gas guzzlers for a new greener model, which will hopefully help the environment, and also will give some momentum to the stalled economy.

The vehicle that’s going to be traded in has to meet certain requirements, one of which is that it’s not more than that twenty five years old, and the new vehicle mustn’t cost more than $45,000.

The program, which is officially known as the Car Allowance Rebate System, will continue until $1 billion in rebate credits are reported, or Nov. 1st whichever comes first.

The program might triple or even quadruple the trade-in value of a real clunker, meaning one that would normally only fetch $1,000 to $1,500 from a dealer, but if the book value of the car or truck is more than the $3,500 or $4,500 then the program probably won’t help you.

Dealers are really excited about the program, and it’s easy to understand why when you consider that the U.S. auto sales annual rate was 9.69 million cars and light trucks in June, down from 9.9 million in May and 13.7 million in June 2008.

Chrysler Group LLC just announced that it will be offering new-car buyer’s incentives of as much as $4,500 in cash, and those who qualify for the maximum credit under the clunkers initiative will receive $9,000.

The incentive runs from tomorrow through Aug. 31 and covers most 2009 Chrysler, Dodge and Jeep models.

Some Tips If You’re Thinking Of Trading

1) Don’t drive your clunker to the dealer’s lot.

2) Negotiate on the price of the new vehicle first, and only when that’s finished, mention that you have a clunker to trade in.

3) If the salesperson tells you that cash-for-clunkers rebates are only available if you pay the sticker price, then don’t believe them. The opposite is true, and you’ll get less than the full value of the government credit if you pay the sticker price.

4) Carefully review the sales contract to make sure you haven’t bought services that you didn’t want, and make sure that the final numbers, including the monthly payment, match the negotiated price.

ZipCar Gears Up To Make An Initial Public Offering – IPO

Michael Redbourn — Wed, 10 Jun 2009 20:33:22 +0000

Zipcar Inc., is presently the world’s largest car-sharing company, but it’s now being challenged by big-time companies such as Hertz Global Holdings Inc.

Hertz Chief Executive Officer Mark Frissora said, “It’s a cool technology. My two sons use Zipcar and they said, ‘Dad, you have to get into this’” and Hertz is set to announce its own sharing service, starting with 1,000 vehicles in New York City, by the end of the year.

Zipcar Inc. was not taken seriously when it first started out and was considered by most to be simply a joke.

It only had one car, and that was a lime-green VW Bug.

Now it boasts over 6,500 cars, will show its first profit in the third quarter, and that during a major recession!

What Is Car Sharing?

Users of the service swipe an access card over a reader in the windshield to unlock a Zipcar through a wireless data link, and the keys are waiting inside, attached by a cord to the dashboard.

The cars can be rented by the hour or day, and the annual fee includes, gasoline and insurance.

The service is presently available in 28 U.S. states; several Canadian provinces, as well as in London, England.

The reservation system tracks where a Zipcar is left by the last user, and is even able to lock out a driver who’s kept the auto past the agreed time.

Reservations, pickups and returns can be handled self-serve through the Internet, or by telephone.

How Much Does It Cost?

Zipcar customers currently pay an annual membership fee of just $50. 00 plus $8.50/hr. which includes 125 miles/day and gasoline.

The number of venture-backed IPOs this year is down around 90% percent from the same period in 2007, but Scott Griffith who is CEO of Zipcar says, “We’re succeeding and we’re growing in a year where flat is the new up. Sales will reach $120 million this year and grow to $1 billion within a decade”.

When Griffith became CEO in 2003 the company had 5,000 members.

It now has over 3000 members and the company licenses its proprietary software to city governments in order to reduce costs.

How Big Is The Potential Market?

According to a report that was commissioned from the Economist Intelligence Unit – 37 million customers and yield $10 billion a year in revenue – and that’s big business!

Congress Reaches Compromise On Cash For Clunkers Bill

Michael Redbourn — Sat, 09 May 2009 09:02:29 +0000

Following much debate, Congress has finally completed a cash-for-clunkers deal that will provide vouchers to as many as one million new-car buyers who trade in an old automobile that will be scrapped.

The bill contains no provision requiring the replacement cars to be made in the United States, since import-branded automakers and international groups claimed it would be a violation of the free trade agreements.

Two controversial issues right now, are whether or not the bill will in fact help the environment, and if it will significantly decrease dependence on imported fuels.

Several environmental groups have stated their belief that accelerating the production of new cars, and thereby replacing older models before their time, will actually cause more environmental damage than driving less fuel-efficient older cars would.

Other groups say that far more aggressive mileage figures for new models should have been demanded.

Something which has received little press coverage so far, is that it will be possible to use the vouchers for public transportation.

Under the agreement, a clunker must be getting less than 18 mpg in combined city and highway mileage in order to qualify, and new cars that get 22 mpg or better will qualify for vouchers.

A new car with at least 4 mpg better than the clunker will get you a $3,500 voucher, and if the new car gets 10 mpg higher, it’s good for a $4,500 voucher.

For light-duty pickups and SUVs, the same 18 mpg requirement stands for clunkers, but to receive a $3,500 voucher the new truck or SUV has to get at least 2 mpg more than the clunker, and for a $4,500 voucher, a 5 mpg improvement is required.

New heavy-duty trucks must get at least 15 mpg and have a 1 mpg improvement over the clunker for a $3,500 voucher, and a 2 mpg improvement will qualify it for a $4,500 voucher.

Work trucks and vans won’t have a gas mileage requirement since the majority of them aren’t rated by the EPA, but to qualify for the program the clunker has to be a pre-2002 model year and weigh between 8,500 and 10,000 pounds, and to receive the $3,500 voucher, the new work truck has to be a similar or smaller class of vehicle.
The program was modeled on a similar law in Germany which has been credited with boosting car sales there.