Khavari For Governor YouTube Video

This isn’t a flashy video produced in Hollywood. It’s not funded by the coffers of the DNC or the RNC. And it’s not funded by special interests. Unless by ‘special interests’ you mean you and me and individual citizens around the State of Florida who care as much about Florida as he does. Right, it’s not fancy or flashy. And, it doesn’t attack the character of his opponents nor does it call them evil or criminals. I already did that.

What it does do is show you how sincere candidate Farid Khavari (I) is on helping the State of Florida and its citizens. He details the reason you should vote for him. He doesn’t tell you why you should not vote for someone else. How refreshing!

Isn’t this the kind of person we’ve been looking for to be chief executive of our state? Farid Khavari is the only candidate with an actual plan for the State of Florida that will promote economic recovery and create private sector jobs while making it possible for people to stay in their homes.

Like him, I invite you to go to his website and check out his plan for yourself. Then on November 2, vote for the person you think can deliver for Florida instead of the candidate with the most TV and print exposure. I think you will find that to be Dr. Farid Khavari, Independent candidate for Governor of the State of Florida.

Link: Khavari For Governor

The FUD Factor Explained

Former Federal Reserve Chairman Alan Greenspan, trusted by the previous administration and the current one, especially after he endorsed the government bailouts of both, describes in this piece precisely what the FUD Factor is all about. Fear, Uncertainty, and Doubt. It explains, as he details in this piece, why there exists a jobless recovery. If by ‘recovery’ you mean not a total collapse of the economy.

Fear undermines America’s recovery

By Alan Greenspan

Although rising moderately this year, US fixed capital investment has fallen far short of the level that history suggests should have occurred given the recent dramatic surge in corporate profitability. Combined with a collapse of long-term illiquid investments by households, they have frustrated economic recovery. These shortfalls, the result of widespread private-sector anxiety over America’s future, have defused much, if not most, of the impact of the administration’s fiscal stimulus. Moreover, the activism embodied in such programmes has itself stoked the degree of anxiety.

The instinctive reaction of businessmen and householders to uncertainty is to disengage from those activities that require confident predictions of how the future will unfold. For non-financial corporations (half of gross domestic product), the disengagement is best measured by the share of liquid cash flow allocated to illiquid long-term fixed asset investment. In the first half of 2010, that share fell to 79 per cent, its lowest reading in the 58 years for which data are available.

The corresponding surge in the proportion of liquid assets following the Lehman bankruptcy was the most rapid in postwar history, amounting to a rise of nearly $400bn. By mid-2010 total liquid assets had risen to $1,800bn, the highest share of total assets in nearly a half century. Without this unprecedented cash flow diversion, the rate of increase in capital expenditures of non-financial corporations would have been double the modest increase that emerged during the first half of this year.

In such an environment, the equity premium (the excess return that equity produces over the risk-free rate) has become exceptionally elevated. As estimated by JPMorgan, it is currently “at a 50-year high”.

American households have shifted their cash flows from illiquid real estate and consumer durables to paying down mortgages and consumer debt. Commercial banks are exhibiting a similar reduced tolerance towards risk on partially illiquid lending. A trillion dollars of excess reserves remains parked, largely immobile, at Federal Reserve banks yielding only 25 basis points with little evidence of banks seeking higher returns through increased lending.

It is this rapid rise in aversion to illiquid risk that explains a large part of the anaemic recovery in the US. Construction outlays, almost all long-term, are down 43 per cent in real terms since their peak in 2006 and reflect the heaviest price discounting of any major fixed asset class.

The pronounced lack of tolerance for illiquid investment risk is quite at variance with current relatively narrow corporate bond spreads. Since a portfolio of liquid privately issued 10-year bonds can be sold virtually at will, the portfolio is the equivalent of a very short-term asset that happens to exhibit high price and interest rate volatility. The difference between liquid and illiquid assets is the reason non-financial corporations, whose assets are largely illiquid, maintained net worth amounting to 45 per cent of assets at the end of 2006 (just prior to the onset of the crisis) compared with 10 per cent for commercial banks.

In these extraordinarily turbulent times, it is not surprising that important disagreements have emerged among policymakers and economists. Almost all agree activist government was necessary in the immediate aftermath of the Lehman bankruptcy. The US Treasury’s support of banks through the troubled asset relief programme (Tarp), and the Federal Reserve’s support of the commercial paper market and money market mutual funds, were critical in stemming the freefall.

But the value of fiscal stimulus has been the subject of wide debate. Fiscal stimulus – the amount of tax cutting and federal spending increases – from the programme’s inception in early 2009 was approximately $480bn. During the same period, the cumulative shortfall in private fixed capital investment measured against the long-term average shares of cash flow appears to have been about $325bn.

Most in the business community attribute the massive rise in their uncertainty to the collapse of economic activity, but its continuance since the recovery took hold is attributed to the widespread major restructuring of our financial system and the burgeoning federal deficit, which creates critical future tax uncertainty.

Only the deficit lends itself to being quantified. Fixed capital investment as a share of cash flow over the past four decades has been significantly (negatively) correlated with the ratio of the federal deficit to GDP, with the deficit ratio leading the fixed investment share by nine months.* This would imply that the federal deficit as a percentage of GDP since September 2008 (cyclically adjusted to remove the effect of a weaker economy), accounted for as much as a third of the $325bn shortfall in business capital investment since early 2009.

But an indeterminate amount of the remaining shortfall reflects both a direct and indirect hobbling of vital financial intermediation. It is going to take years to address the unprecedented complexity of final rulemaking required in the massive Dodd-Frank bill. The inevitable uncertainty engendered will inhibit financial innovation and intermediation, and render the rules that will govern a future financial marketplace disturbingly conjectural. This is bound to have a significant impact on economic growth. Business planners must now confront a much wider set of scenarios that could affect the profitability of contemplated long-term commitments. This wider set, of necessity, increases risk premiums on illiquid assets.

The critical question, of course, is how much of a contraction in deficits and a decrease in the frenetic pace of new regulations can assuage the sense of a frightening future, allowing the natural forces of economic recovery to take hold. That process, which I outlined in earlier Financial Times articles on March 23 and June 25 2009, would accelerate if fear-determined equity premiums were reduced and stock prices accordingly rose. That would spur capital investment (they are highly correlated) and wealth-driven consumer expenditures. Economic growth would finally bring an important fall in unemployment.

Chavez Slim Victory Advances Socialism

Promising to do more to advance socialism in Venezuela, the hemisphere’s idiot, Hugo Chavez , started on Sunday by announcing the expropriation of land owned by the Venezuelan agricultural company Agroislena and vowing to hasten the nationalization of land held by the British meat products company Vestey Foods Group.

Meanwhile, with his slim 48.9% to 47.9% victory, Chavez is pushing the notion of issuing firearms and training for a civilian militia.

Chavez says the militia should be prepared to defend the country against any threat, foreign or domestic. He also believes the United States poses a threat to his oil-exporting country.

Opponents of the leftist president say the militia is essentially a personal army for Chavez aimed at intimidating his adversaries, maintaining control and keeping him in power.

Links: Chavez vows to radicalize after Venezuela election | Chavez: Civilian militia should be armed full-time

Mayor Rizzo’s 1980 Cadillac Sells In Wildwood

The late and great mayor of Philadelphia, Frank Rizzo’s 1980 black Caddy sold at the Wildwood Classic Car Auction on Saturday, September 25, 2010. Mayor Rizzo was the kind of guy who you either loved or hated. And when he retired after 8 years as mayor of Philadelphia in 1980, he successfully cleaned up the city’s crime problems. Which accounts for why he was either loved or hated. According to his son, Philadelphia Councilman Frank Rizzo, the proceeds of the sale would be used to take care of maintenance of his father’s statute that stands outside the Municipal Services Building long after he is gone.

Link: A real car guy’ buys Rizzo’s Cadillac

10.2.10 March In D.C

The big gathering in front of the Lincoln Memorial happened today. It was quite a collection of anti-capitalists, big government statists, and other groups that don’t like America very much, expressing their anger at republicans and the Obama administration. The criticism of the Obama administration was about his not doing enough to transform America into the warm and fuzzy socialist state that they want.

Mike Papantonio and Rick Outzen were there.

Check out the list of sponsors, or as the Left would say, big corporations who are bankrolling the protest march of Lefties. They include BIG LABOR, BIG LAW, BIG SOROS, and an assortment of Communist and Socialist organizations in this country.

CNN’s Rick Sanchez Fired For Comment

Saying stuff like this used to be a resume enhancement for media types. Is CNN really serious or is this what happens when your ratings get down to friends, family members, and employees? Maybe he would have been OK if the target of his comment was a conservative?

CNN fired news anchor Rick Sanchez on Friday, a day after he called Jon Stewart a bigot in a radio show interview where he also questioned whether Jews should be considered a minority.

Intramural sniping like this is interesting to watch though. It does put Sanchez between a rock and a hard place. If CNN fired you, where else is there to go? Or to put it another way, who else would want you?

Other than possibly Rick Sanchez and his family, who cares?

Link: CNN’s Sanchez fired after calling Stewart a bigot

No Budget, Just More Fear, Uncertainty, And Doubt

For two years now, starting as a presidential candidate, President Barack Obama has said how creating jobs was going to be his top priority. How he will not rest until everyone who wants a job can get one. Judging by all the vacations he has had, are we supposed to think that he has fixed the economy? With unemployment and home foreclosures at an all time high, I don’t think so.

It’s been a busy week in Washington. While they were spinning their wheels on campaign finance issues and creating faux small business stimulation, they also saw fit to adjourn without passing a budget (so much for that debt commission‘s warning of fiscal cancer, and the now missing 2011 budget) and without dealing with the fact that taxes will be going up come January when the ten-year Bush tax cuts are scheduled to expire.

Congress did manage to extend the FUD Factor indefinitely though.

Businesses are not expanding, growing, or hiring; not because they can’t get loans, but because they are in a business climate right now of fear, uncertainty, and doubt over what the future will bring. And going on recess without dealing with the tax code shows the President’s commitment towards turning the economy around. It’s not there. All his promises were ‘words, just words.’ His priority has not wavered from the politics of remaining a majority party. He could care less about your wallet, your bank account, or that of future generations of Americans.

There is fear over what business or industry is next in line for government intervention or control. The uncertainty of the full effects of Obamacare on businesses, insurance carriers, and their employees. And the doubt that America will remain a free-enterprise, market-driven, capitalistic society for much longer. That’s why businesses are sitting on whatever capital they have. They are hoping that Obama makes a U-turn in his drive towards centralized government control. Or, that we get an adult in The White House who knows something about the Constitution, freedom, and liberty, the pillars of what has made the United States the greatest country in the world in just a couple hundred years.

All the major legislation Obama pushed through his Democrat-controlled Congress was based on the fear of the world coming to an end if it wasn’t passed immediately. It was always an emergency. There was no time to read what was in it.

Seems to me that spreading the FUD factor has become the modus operandi of this administration. And November 2nd can’t some soon enough.