Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Free Market

Bank Failures: 127 Down, 800 to Go

FDIC placard from when the deposit insurance l...

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When Zacks Equity Research announced on Monday the failure of two more banks in the current recession, the silence was deafening. The report blamed the usual suspects: “tumbling home prices, soaring loan defaults, and a high unemployment rate continue to take their toll on such institutions.”

But buried in the report was the much more ominous forecast of the “increasing … possibility of more bank failures.” Zacks said that any bank which makes the FDIC’s problem bank list is essentially doomed. “As of now, only 13 percent of banks on [that list] have actually failed.” The number on that list? 829, up from 775 in the last quarter.

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Wiretapping Your Emails

privacy

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As communications technology has raced ahead of government attempts to tame it, in the name of law enforcement, the Obama administration, the FBI, the Department of Justice, the National Security Agency and other government agencies have been meeting for months to come up with regulations that would allow broadening government powers to intercept, read, and analyze Internet messages, and then prosecute perceived violations of law. Arguments by proponents of further incursions into citizens’ privacy initially sound reasonable: new technology, and private citizens’ use of the Internet for private communications, have exceeded government’s ability to keep up, and consequently its ability to monitor, track and follow people is “going dark,” unless something is done.

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Who is Mike Pence?

Mike Pence, member of the United States House ...

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In an early straw poll, Rep. Mike Pence (R-Ind.) was the choice for presidential nominee in 2012 over such conservative luminaries as Sarah Palin, Mike Huckabee, and Mitt Romney. Capturing 24 percent of those voting at the Family Research Council’s Values Voter Summit this past weekend in Washington, DC, Pence relegated even Senator Jim DeMint to a barely visible 5 percent.

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Meet Austan Goolsbee, Obama’s New Top Economic Adviser

Official portrait of CEA member Austan Goolsbee.

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Few were surprised when President Obama replaced Christina Romer, chair of his Council of Economic Advisers, with another statist economist, Austan Goolsbee. Goolsbee is the architect of Obama’s failed economic policies and programs, having served as the executive director of the President’s Economic Recovery Advisory Board from the beginning.

A bright student at Yale where he enjoyed membership in the exclusive and elitist Skull and Bones secret society, Goolsbee went on to get his PhD from MIT, and then immediately became a professor at the University of Chicago. With stints at the American Bar Association and the National Bureau of Economic Research, he was named to Obama’s Council of Economic Advisers in March, 2009.

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Why Reich is Wrong

Robert Reich

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When former Labor Secretary Robert Reich offered his solutions for ending the Great Recession in the New York Times, he repeated the same errors expressed in a CNBC debate the week before.

Reich appears to have all the credentials for knowing what he is talking about: degrees from Dartmouth College, Yale Law School, and a Rhodes Scholarship to Oxford University. Having served as a law clerk to the chief judge of the U.S. First Circuit Court of Appeals and then assistant to the U.S. Solicitor General, followed by an appointment by President Jimmy Carter as Director of Policy Planning at the FTC, most would accept his opinions and suggestions for ending the recession as useful and relevant.

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Fed’s Bernanke Running Out of Options

WASHINGTON, DC - MARCH 02:  U.S. Federal Reser...

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When Fed Chairman Ben Bernanke speaks on Friday at the Fed’s annual meeting in Jackson Hole, Wyoming, Fed-watchers from around the world will be hanging on his every word, phrase, and nuance for clues. They’ll be listening to hear that the chairman knows what’s happening in the economy, and that if things get worse, he has a plan.

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Stossel, Greenspan, and Ayn Rand

Cover of "Capitalism: The Unknown Ideal"

Cover of Capitalism: The Unknown Ideal

When John Stossel of Fox Business Network wrote his recent “Memo to Alan Greenspan” column, he recounted many of Greenspan’s failings while Chairman of the Federal Reserve, including especially Greenspan’s relentless expansion of the money supply and lowering of interest rates that set in motion the housing bubble that burst in 2007.

But Stossel got one part of his memo wrong.

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Railroads, Robber Barons, and Unbridled Capitalism

Steam locomotive O k (O d )

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When Matthew Josephson wrote The Robber Barons in 1934, he tipped his hand as to his personal prejudice against the capitalists of the late 19th century:

Besides the young men who marched to [the Battle of] Bull Run, there were other young men of 1861 whose instinctive sense of history proved to be unerring. Loving not the paths of glory they slunk away quickly, bent upon business of their own. They were warlike enough and pitiless yet never risked their skin: they fought without military rules or codes of honor or any tactics or weapons familiar to men: they were the strange, new mercenary soldiers of economic life.

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Fannie and Freddie De-​​listed From NYSE: Now What?

Fannie Mae headquarters

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When ABC News announced that Fannie Mae and Freddie Mac would be de-listed by the New York Stock Exchange on July 8, writer Rich Blake said that “these once mighty enterprises will trade alongside stocks on the Over-The-Counter Bulletin Board, a place where many companies go to die.”

As a eulogy Blake expressed the usual statist paean: “It’s difficult to contemplate how the U.S. mortgage market could function without the nearly $6 trillion in funding they provide to this market and the institutions that comprise it…The housing sector would be in even worse shape if not for those twin…enterprises.”

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Financial Reform: Expanding Hubris, Limiting Freedom

Chris Dodd

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When the House passed the 2,319-page Dodd-Frank financial reform bill by a vote of 237-192, all it did was confirm for many the extraordinary hubris of legislators believing they could in fact “fix” the problems they themselves created which resulted in the Great Recession of 2008.

John B. Taylor,  professor of economics at Stanford University says, “The main problem with the bill is that is based on a misdiagnosis of the causes of the financial crisis…the presumption that the government did not [already] have enough power to avoid the crisis.”

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The Breakup of Ma Bell

Southwestern Bell logo, 1939–1964

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Ten years into the 20th century, the United States citizenry were still enjoying the afterglow of a remarkable generation of economic growth, innovation, and expansion.

Popular interests consisted of going to the movies, doing the Tango, and reading the Saturday Evening Post. A hands-off President, William Howard Taft, was in the White House, and people were enjoying clever inventions such as traffic lights, the refrigerator, and the telephone.

Alexander Graham Bell patented the telephone on March 7, 1876, but initially it was considered no more than a passing novelty. In fact, Western Union passed up the opportunity to purchase the Bell patents for $100,000.

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Free Markets, Deregulation, and Blame

Quarterly Journal of Austrian Economics

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Free markets, in the full sense of the phrase, exist only in the minds and imaginations of free-market economists from the Austrian School, such as Ludwig von Mises and Murray Rothbard.

The classic definition is simply a market without intervention or regulation by government. In truth, commerce in any developed country is always controlled to some extent by government. A free market requires the right to own property, which means that the wages, earnings, profits, and gains obtained by providing products and services to others belongs to the individual generating them. The assumption is that an individual with this kind of freedom would only make an exchange that gained him a benefit.

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Jobs Bill: The Law of Intended Consequences

London | 2009

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With great fanfare, the Obama administration celebrated its first policy victory of the year—the $17.6 billion jobs bill. Eleven Republican Senators helped push the bill through the Senate, 68-29.

The economically flawed and unconstitutional law provides employers an exemption from Social Security tax withholding through the end of the year on any employees added to the payroll who have been unemployed for at least 60 days. And if the employees stay on that payroll for at least a year, the employers would receive an additional $1,000 tax credit. In addition, the law spends $20 billion on federal highway construction and other public improvement projects.

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Financial Reform: Pressing On, Regardless

Bob Corker

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Last month, Senator Bob Corker (R-Tenn.) pushed back against the Obama administration’s plans to create a “standalone” Consumer Financial Protection Agency, and some Washington-watchers held their breath to see if Corker would hold his ground.

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U.S. Postal Service: Time to Free the Mail

WASHINGTON - AUGUST 06:  Postmaster General Jo...

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When U.S. Postmaster General John Potter recommended eliminating Saturday delivery service in order to save money, he was merely responding to the postal service’s continuing inability to make money, or even cover its costs, delivering the mail. In a microcosm, the postal service’s difficulty is reflective of the government’s attempt to operate anywhere outside the constraints of the Constitution.

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Toyota—The Jihad Continues

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Now that the Department of Transportation is opening a formal investigation into the 2009-2010 Toyota Corolla over possible steering problems while the government is continuing with hearings by the U.S. House Oversight and Government Reform Committee on February 24th, the House Energy and Commerce Committee on February 25th, and by the Senate Commerce, Science and Transportation Committee on March 2nd about Toyota’s “timely” response to braking and accelerator complaints, some are beginning to question “Why?”

More than that, the questions are “Why just Toyota?” and “Why now?”  Some are asking “Is there something else going on here?”

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Bernanke’s Kudos, Criticisms Miss the Point

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A preliminary vote today for Ben Bernanke’s reappointment to a second four-year term as chairman of the Federal Reserve is expected to clear the way for a final favorable vote by the Senate.

Bernanke’s first term record was subjected to criticism and praise during confirmation hearings in December, and  he was selected as Time magazine’s Person of the YearTime magazine’s Michael Grunwald was kind to a fault, calling Bernanke “our mild-mannered economic overlord” (a reference, no doubt to Superman’s mild-mannered Clark Kent), and “the most powerful nerd on the planet.”  In that lengthy tribute, Grunwald summarized the Fed’s role:

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Rubio: The First Tea Party Senator?

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The Republican primary in Florida, which pits Governor Charlie Crist against Marco Rubio, is being watched carefully as a harbinger for the impact the Tea Party may have on the midterm elections. Six months ago Crist was leading all challengers, according to Rasmussen Reports, but now Crist is tied with former state House Speaker Marco Rubio.

On social issues, Crist takes traditional conservative positions including support for gun rights and capital punishment, and opposition to elective abortion and same-sex marriage. He supported John McCain’s candidacy for President in 2008, but got in trouble by supporting Obama’s stimulus bill.

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Bernanke: Lax Oversight Recession’s Cause

FRANKFURT, GERMANY - NOVEMBER 14:  Ben Bernank...

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Regulatory failures and not low interest rates were responsible for the housing bubble, implosion and current recession, Federal Reserve Chairman Ben Bernanke asserted on Sunday.

“Stronger regulation and supervision aimed at problems with underwriting practices and lender’s risk management would have been…more effective [in] constraining the housing bubble [rather] than a general increase in interest rates,” Bernanke told the American Economic Association.  Bernanke, while awaiting Senate confirmation for another term as Fed Chairman, defended recent and continuing charges that the Fed contributed significantly to the current financial crisis by keeping interest rates too low for too long.

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Kelo v. New London: All for Naught, or Not?

Logo of Pfizer Incorporated.

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The city of New London, Connecticut, fought for and won at the highest level permission to take private property from one person and give it to another. Now that victorious “person” (i.e., pharmaceutical giant Pfizer, Inc.) is closing its New London facility and moving it to Groton. Was it all for naught?

Some think so.

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.