John McCain fought to rein in Fanny and Freddie in 2006. This video provides powerful evidence to support this statement. According to the Washington Post 9/19/08 John McCain pushed for stronger regulation whilst Mr Obama was NOTABLY SILENT. Democrats blocked the reform. Bill Clinton said that Democrats resisted any efforts by Republicans in the Congress and by himself as President to put some standards and tighten up on Fannie Mae and Freddie Mac.
Tuesday, September 30, 2008
Irish Government decision to guarantee Irish banks' deposits and debts for two years stabilises banking system
Yesterday Irish banking shares imploded. It was not unreasonable to expect a large run on the banks today if the Government had failed to act. The Financial Regulator and Governor of the Central Bank warned the Government that immediate action was necessary to safeguard the Irish financial system.Hence the Governments decision. The decision has the broad support of the opposition.
The Government decision to offer a guarantee of 400 billion euros will last for two years and covers liabilities at AIB, Bank of Ireland , Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and EBS. The guarantee covers retail, commercial and inter-bank deposits as well as covered bonds, senior debt and dated subordinated debt. The Irish approach contrasts strongly with that adopted in Belgium and the U.K., where governments have injected capital into individual banks, or seized them.
Assets of Irish banks are estimated at 500 billion euro whilst liabilities amount to 400 billion euro. If the guarantee were called in, in full-unlikely ever to happen- 37 years income tax receipts would be required to pay it off. Naturally enough there is concern among tax payers that those who may have behaved irresponsibly have been insulated. Money was doled out often irrationally by banks to elements in the Irish property sector. Whilst Irish banks have sizeable exposure to the property market,the problems in the Irish banking sector appear to be relatively minor. Subprime lending is not a major problem. Banks are highly profitable.
Naturally enough with this announcement bank shares rebounded today.
FG has posed the following questions:
1. What is the total exposure of the Irish taxpayer for providing this guarantee and how will the taxpayers' interest be protected?
2. What new regulations are being implemented immediately that will ensure that Irish banks will not be using the new guarantee to continue engaging in risky lending or derivative trading? The onus is now on the Regulator to ensure that the banks lending capacity is used to provide credit to sound Irish enterprises.
3. What return will the taxpayer get for providing this guarantee? What charge will the banks pay for this new facility?
4. What new oversight powers will the Government have on behalf of the Taxpayer to monitor the activities of Irish banks and is there any requirement for new legislation?
5. Has the Government satisfied itself that the banks have come clean about bad debts on their books and that banks are adequately capitalised?
6. What limits have been put on the pay and bonuses of senior executive of the banks who will avail of this facility?
SpaceX makes history as world’s first private space vehicle to reach orbit(September 28th 2008)
A US space company founded by an Elon Musk has become the first private venture to successfully blast a rocket into Earth's orbit. Falcon 1, a liquid fuel rocket built by Space Exploration Technologies, or SpaceX, took off from the Kwajalein Atoll in the Pacific Ocean on Sunday and successfully reached orbit more than 300 miles above the surface of the Earth carrying a dummy payload. Musk wants NASA to use his rockets.
Monday, September 29, 2008
CNN: Biden's Own Bridge to Nowhere (Biden's 116 Earmarks alone this year a monster own goal)
CNN reports on the support for Alaska's Bridge to Nowhere received from both Joe Biden and Barack Obama. Yet Biden is attacking the Bridge to Nowhere on the campaign trail. Initially Sarah Palin supported the Ketchikan bridge but opposed it as governor. CNN report on Biden’s pork barrel record, including a project that CNN calls The Bridge to Two Nowheres. Biden has asked for 116 earmarks alone this year worth 342 million dollars. Biden and Obama are a tax and spend liberals. John McCain has consistently opposed earmarks.
Sunday, September 28, 2008
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