The Bailout and ACORN

There is at least one fact that all the various warring parties of the current financial crisis can agree upon. We have big problems and we haven't got a lot of time to fix them. Watching the legislators parading in front of the TV cameras the last few days makes it seem as though we have all the time in the world to play the blame game and point fingers.

The easy answer, and the one that the Democrats want us to believe is that it's those out-of-control (read non-regulated) Wall Street cowboys who have caused all the problems. But while Wall Street may well have more than its share of greed and excess, it is generally pretty good at assessing risk and making risk/reward decisions. It's hard to get rich lending money to borrowers who aren't going to pay it back.

Writing in this morning's Globe, JEFF JACOBY does an excellent job of succinctly connecting the dots of the mortgage crisis. He describes how the roots of the problem go back to the bleak days of the Carter administration when concerns over the practice of "red-lining" lead to the passage of The Community Reinvestment Act that forced lenders to loosen their standards which started the long slide into the sub-prime mess. This was encouraged by Fannie Mae and Freddie Mac who purchased much of this low quality paper. One of the biggest cheerleaders for these two government-chartered institutions was Massachusetts' own (by way of Bayonne) Congressman Barney Frank, who badly wants to place the blame elsewhere. As Jacoby sums it up:

Now that the bubble has burst and the "systemic risk" is apparent to all, Frank blithely declares: "The private sector got us into this mess." Well, give the congressman points for gall. Wall Street and private lenders have plenty to answer for, but it was Washington and the political class that derailed this train. If Frank is looking for a culprit to blame, he'll find one suspect in the nearest mirror.


The juxtaposition of the ongoing Bailout negotiations and the first presidential debate on Friday night overlapped in a number of different ways besides the fact that John McCain had almost been a no-show due to his involvement in the negotiations. One of the main stumbling blocks in hammering out a bill has been the inclusion in both the House and Senate Democratic drafts, of a provision to funnel significant funds from the bailout plan to a pair of government slush funds used to transfer government money to advocacy groups such as ACORN. These provisions may or may not survive into the final version of the bill, but their inclusion, as explained in a WSJ EDITORIAL provides a look at the Democratic stealth efforts at funding this controversial organization with a radical left-wing agenda.

ACORN, The Association of Community Organizations for reform Now, uses community organizations to pursue its agenda for social change. Its tactics and strategies however often border, and sometimes cross the line, on the illegal, especially with respect to their efforts at registering Democratic voters as well as their partisan participation in election activities. Adding another link to this daisy chain of intrigue is the fact that Barack Obama has been actively involved with ACORN as well as a similar organization, the Chicago-based Gamaliel Foundation. While this aspect of Obama's background is generally known in conjunction with his experience as a "community organizer", which is generally seen as a marginal activity. But there are at least two aspects of this that need to be examined.

Writing in the September 1st issue of National Review, Stanley Kurtz looks closely at the goals of ACORN and Gamaliel to highlight their radical left objectives. These consist primarily of schemes for economic redistribution through the government rather than programs to better prepare low income people to better themselves. But the interesting point uncovered by Kurtz is the lengths to which these organizations go to disguise their intentions behind a facade of down-to-earth pragmatism. Kurtz concludes:

"Obama needs to detail the nature of his ties to both Gamaliel and ACORN, and should discuss the extent of his knowledge of Gamaliel's guiding ideology. Ultimately, we need to know if Obama is the post-ideological pragmatist he sometimes claims to be, or in fact, a stealth radical."

Supreme Courtship

With the U.S. Congress delaying the financial bail-out program until the politicians have achieved maximum hand-wringing and finger-pointing, perhaps it's time for a reprieve in the form of a cleverly funny new book. Supreme Courtship, by Christopher Buckley was released earlier this month, which implies its text was finalized long before the presidential candidates selected their running mates. This is key as one of the main characters sure sounds like a certain V.P. candidate. This similarity, along with a number of pertinent themes, will have readers wondering about the reflecting link between art and real life.

President Donald P. Vanderdamp is portrayed as man so bland as to make Al Gore look like a rock star. His plain vanilla persona even extends to his favorite hobby, bowling. What does set the President apart from other politicos is a commitment to actually do something about mushrooming public spending. The something involves a presidential veto for every spending bill that gets to his desk. As you might expect, this has his personal stock selling at a very low multiple on Capitol Hill. Although he plans to serve only one term, a plan well-supported by his approval ratings, there are ways in which the legislators can pay him back for his swift veto pen; namely the savaging of his nominees to fill a vacancy on the Supreme Court, the enthusiastic point man on this effort being the Chairman of the Senate Judiciary Committee, one Dexter Mitchell.

After having two eminently qualified nominees destroyed by Mitchell's committee, Vanderdamp decides to take a different tack. He nominates Judge Pepper Cartwright to the Supreme Court. Among the problems with this nomination is the fact that Ms Cartwright's most recent judicial experience consists of six seasons as the star of TV's Courtroom Six. Moreover, the fact that Pepper is certifiably hot adds a lot of spice to the story. She is described, by her slimy husband, who is also the producer of Courtroom Six, as, "... woman in her mid-thirties, tall, lush brown hair,...high cheekbones, and deep dimples. She wore glasses, which she kept putting on and taking off." Except for the fact that she is as Texas as the Alamo, she could easily be confused with a certain Governor of Alaska.

The fun really starts after she is appointed to the Supreme Court. Like any new appointee, she must learn the ropes, including the eccentricities of her fellow justices, which Buckley describes in living color. You might also want to dig out your Latin Cliff Notes. Amid some upheavals between her and her producer husband, who can usually be found plumbing the depths of depravity for potential reality show subjects, the court attempts to deal with the issues of the day, with Pepper, as the new kid, frequently providing the swing vote.

The book ends amid a great brouhaha of constitutional law, in which the Supreme Court must decide the results of the next subsequent presidential election which has been complicated by a proposed constitutional amendment. The ending is all the merrier as the election involves two old antagonists. It's not quite as dramatic as the score-settling scene in The Godfather, interspersed with a baptism in Latin, but there is a certain satisfaction to the resolution of the saga, one which supports Vanderdamp's nickname, Don Veto.

The Supreme Court? Deciding a presidential election? Who would believe this stuff? The View recommends Supreme Courtship with two thumbs up in spite of this far fetched plot.

Say it Ain't So, Joe

The jungle drums are alive, this week end, with speculation that the Democrats are about to pull a major switcheroo on their presidential ticket. Rumor has it that right after the VP debate, scheduled for October 2nd, Joe Biden is going to step down from the VP spot due to "health reasons" (his, not the tickets). And you will never guess who is poised to take his place. Give up? Hillary Clinton will rise once more from the political crypt.

This stuff of nightmares could easily be written off as the hallucinations of bored email junkies were it not for the fact that the sources on this are reasonably reliable and, within the context of the stumbling democratic ticket, it has a certain logic to it.

Obama clearly blew it when he named Joe Biden as his VP. For a candidate who is presenting himself as the agent of change, he trots out a tired old Capitol Hill re-tread who personifies business as usual. This gaff was made crystal clear when McCain picked Sarah Palin who has stolen the show for the Republicans. And while
we subscribe to the belief that the election is ultimately about the presidential candidates, adding Hillary to the Democratic ticket would give it a major infusion of excitement, at least among the fellow travellers on the left.

Ultimately, we would like to think that cooler heads will prevail and the issues (How 'bout Bill?) that kept Hillary off the ticket in the first place will arise once again. At the same time, if this whole thing gets sprung just a few weeks before the election, who knows?

What A Week

The Dow Jones Industrial Average finished the week down 33 points, but unless you spent the week hibernating in a cave, it was anything but a yawner. If you had told me a week ago that within seven days, Merrill Lynch would be sold, Lehman Brothers would declare bankruptcy and AIG would teeter on the edge of oblivion, I would have suggested a stint in rehab. Shows what I know. And these firms were merely the tip of the ice burg that(excuse the twisted metaphor) emerged as a near meltdown of the entire financial system. Enter the Feds with syringes full of government funds and the patient has stabilized, at least for the moment.

Seems like there was a time when a lot of us could stand aloof during financial crises and marvel as the financial pundits would scramble to explain the unexplainable. But when it starts to impact on our 401(K) accounts and IRA's, it gets real up close and personal in a hurry. And you still might be able to act as a bystander, as long as you, or a loved one, don't have a house to sell, or buy, or any other transaction that requires a mortgage. Of course, if it was your newly-unemployed daughter pictured carrying her possessions out of the Lehman Brothers building, it will be that much harder to be philosophical.

The current financial crisis has just about pushed the presidential election off the front page and relegated the campaigns to touting their prescriptions on page seven. Just as well. If the U.S. Treasury, the Federal Reserve and the SEC are making it up as they go along, Barack Obama's main contribution is ironically his call for hope; as in, I sure hope these guys figure this out. In all fairness, John McCain isn't able to offer a whole lot more, but he is our candidate, so he gets a pass.

Those Wall Street observers with longevity are quick to point out that this is far from the first financial crisis we have been through. Free markets are powerful engines of wealth creation, but they can be wild beasts at times. Market Corrections work with a brutal efficiency that belies their innocuous name. As we hopefully get to the beginning of the recovery phase, the chorus of cries is already rising for increased Regulation to stave off future downturns.

And so, stay tuned for the hand wringing during the inevitable congressional hearings, when financial wizards like Barney Frank will call down curses on Wall Street Greed. "Regulate the Bastards" will be the hue and cry. Let's just hope that they are smart enough to avoid executing the Goose that lays the golden eggs. Everyone hates Wall Street, except when it creates capital to finance companies providing jobs and opportunities. Everyone hates the stock market, except when it provides the returns to allow a comfortable retirement. Everyone hates hedge funds, except when they are cranking off high returns and then the hate is directed at fund managers are slow to accept new money from investors. Everyone hates big corporations, especially when they show eye-popping profits, except they like the taxes that they pay and the jobs and products that they provide.

We have ambivalence about free markets and rightfully so. When they work, we wallow in our good fortune, convinced it stems from our own shrewd abilities. But when corrections occur, and they always occur, we feel victimized by what is suddenly seen as the embodiment of the world's evil greed. The truth, of course, lies somewhere in the middle and on balance, it beats whatever socially-engineered scheme is in second place, by a lot.

Robert Irvin Ash, R.I.P.

A few months back, Bob Ash decided to run for election to our community's Resident Advisory Committee. When he submitted his candidate profile, many of us had our first glimpse at his impressive industry experience and academic credentials. Bob, known to many as friendly neighbor and an affable golf partner was a man who had no need for boastful self-promotion. He simply let his record speak for itself. And what a record. After graduating from his beloved University of Virginia, he earned an M.B.A. from The Wharton School, acquired his C.P.A. credentials, and served his country in the U.S. Navy. There then followed a career of accomplishments with several prominent U.S. Corporations. More recently, Bob has been plying his trade through his firm, Ashworth Consultants, Inc. During this time, he also found time for active involvement in industry events and service as an adjunct professor at several area colleges. Needless to say, our community quickly elected him to the Committee and during the short time he was to serve, we marveled at our good fortune in having someone of Bob’s caliber to help with the task of overseeing the community’s management.

Last week end, only hours after playing in a community golf tournament, Bob Ash died peacefully at his home. Our thoughts and prayers are with Bob, his wife Barbara and their family. We will miss seeing his distinctive U.V.A. golf bag on the golf course, but more importantly, we will miss Bob’s friendship, his wise counsel and his trademark welcoming smile that all helped make our little corner of the world a better place.

Click here to view Bob's OBITUARY and to learn the details of his memorial service scheduled for next week.

Never Forget

Earmarks, they're spending your money

While it is certainly important to take careful note of candidates' the tax proposals, it would also be wise to look at the other side of the coin and examine the trends in government spending that drives the seemingly insatiable demand for tax revenues that threatens to choke off economic growth. According to an editorial in this morning's Wall Street Journal, federal spending is expected to reach 21.5% of GDP next year, the highest since 1992. If this isn't a trend toward big government, I don't know what is.

One of the most flagrant contributors to this trend is the use of budget "Earmarks", to identify and provide money for pet projects located in the sponsors home state. The 2008 budget contained over 11,000 such items at a total cost of $17 billion. It's easy to understand the allure of such funding as it allows legislators to pepper their re-election speeches with a boast of all the pork they brought back home from Washington.

In this year's election, we have a clear choice. John McCain has pledged to veto earmarks whenever they cross his desk. This pledge is backed up by a long record of opposing such measures. His opponent is a consistent supporter of the legislative "old-boys" attitude of voting for each others pork. Since he became a Senator in 2005, he has asked for nearly $1 billion for special projects.

When we look at the second seat on each ticket, we find perfect symmetry. Joe Biden reliably ensures that Delaware receives a robust pork supply, while Sarah Palin has an established record of fighting wasteful spending, including the infamous "Bridge to Nowhere". According to Senator Jim DeMint (R-South Carolina):

"Yes, she once supported the project, but after witnessing the problems created by earmarks for her state and for the nation's budget,......., she changed her position and saved taxpayers millions. Even the Alaska Democratic Party credits her with killing the bridge."

Interestingly enough, when the Senate had a chance to reallocate the bridge money to Katrina relief, Senators Obama and Biden chose to stick with the original earmark.

It is not hard to understand how some might become enamored of "free" money flowing from the government's largess. We rely, however, on our elected officials to take a higher point of view and consider the fiscal implications of their actions on the whole nation, rather than grabbing what they can and then demanding higher taxes to pay for it all. Comparing the two campaigns, based on stated positions and past performance, this issue provides a clear choice for voters.

Let's Get to the Issues

No one has ever accused John McCain as being a great public speaker. His speeches would seldom be called rip-roaring stemwinders. At the same time, what he may lack in slick glibness, he more than makes up for in his ability to speak straight from the heart in clear understandable statements. You may agree or disagree, but you know where he stands. His acceptance speech, Thursday night, might not have been full of flashy rhetoric, but it provided a clear picture of his beliefs and the policies we might expect from a McCain presidency. Amid the many points he made Thursday night, I was struck by his stated hatred of war. A military man from a miltary family, McCain knows of what he speaks.

McCain's opponent doesn't seem to be as detailed about his policies, and it takes a little digging to get behind the calls for hope and the "yes-we-can" chants. But I believe that this issue providess a clear choice for American voters. John McCain believes in a strong military and is not afraid to hold this option dear as he envisions his administation plying the treacherous roads of international diplomacy. And while he hates war, he also recognizes the stark necessity of having both stick and carrot available, especially when dealing with foreign dictators committed to policies of hatred. His opponent would have us believe that the threats posed by belligerent nations can be calmed by the power of his personality.

Over the next few months, much will be said about the Iraq war, and here again, voters have a clear choice between McCain's support, especially for the surge, and his opponents opposition. John McCain is not the only one who hates war. All people of conscience must satisfy themselves that war is the last resort before unleashing those particular dogs. Good faith debate regarding appropriateness of the Iraq war will occupy us, as a nation, for some time to come. But blindly branding it a mistake precludes much that can be learned.

I invite you to watch a VIDEO made by a young soldier named Joe Cook. I think the message he brings is as just as important to the ongoing debate as is the chanting from the anti-war crowd.

Hollywood East - More Details

In order to be in position to vote at its September 15th meeting as to whether or not to recommend the Movie and Entertainment Production Overlay District, or MEPOD to the October Town Meeting, The Plymouth Planning Board is continuing its marathon review process. Not only is time short, but due to the fact that Plymouth Rock Studio is seeking an "As-of-Right" approval rather than the more restrictive Special permit, there is added pressure on the developer to provide detailed plans for the project. To date, the review process has already produced a much more clear picture of what is planned for the current site of the Waverly Oaks Golf course.

Plymouth Rock Studios will be a very substantial development for Plymouth consisting of 2 million square feet of space configured in a variety of structures. With an estimated cost of $422 million, the complex will include a dozen sound stages, a back lot, an office building and a 300 room hotel. The site will also include 125 units of housing consisting of ten single family homes that will be for sale, plus 100 apartment units and fifteen condos that will be rentals. The sound stages are expected to be limited to 65 feet in height, except for one that will be allowed to 75 feet. The other buildings are expected to have a 45 foot height limit.

As expected, an investment of this magnitude has garnered a lot of support from Town officials and voters. While it is pointed out that 88% of those voting in the spring election (approximately 25% of the registered voters) voted yes on a non-binding referendum supporting a movie studio for Plymouth. At that time, however, the Waverly Oaks site was not identified. The expectation of up to 1,000 construction jobs followed by as many as 2,000 full-time jobs with an average annual salary of $70,000, would provide significant stimulus to the local economy.

The only fly in the ointment is whether or not a project of this size and scope can be situated in the quiet residential area along Long Pond Road. The developers are quick to reassure residents that the quality of life in the area will not be compromised by the studio. Many of the local residents are not so sure. One of the major concerns would be the traffic, estimated at 9,000 auto trips per day. The proposed solution, a new access road that would parallel Rte 3, south to Clark Road, would seemingly be a solution to the traffic concerns. The one caveat is whether or not the traffic engineers can sort out the stretch of Clark Road from Rte 3, west to the intersection of Long Pond Road. This area is already congested at the busy times of the day.

Plymouth Rock Studios is seeking the "As-of-Right" permit to protect its significant investment, but many are concerned that such an approval gives them a Carte Blanche to develop the site. A Special permit approval would provide more safeguards to the Town during the development process, but that is not what PRS is seeking. Final approval, to a great extent, depends upon whether Town Meeting members are satisfied with the detailed scope of the project.

Evolutions '08

What better way to take a break between the two political conventions than to motor up to the North Shore where Dick Buckley once again produced a jewel of an art show on scenic Marblehead Neck. Arrayed attractively on the grounds of a patron's home, the work of a dozen visual artists was presented amid the natural splendor. This year, Dick arranged for a several musical artists to add a pleasant melodic complement to the event. Musical Artists included: Barbara Alex and friends, Ted Sink, David Ward, Donald Tower and Lisa Walkins. Master sound engineer Jim Merritt applied his skills to ensure that the musical performances blended perfectly with the show's ambiance. If this isn't the best "12 Hours of Art" presented anywhere, I don't know what is.

Among the visual artists showing their work was our own, Mark Malloy with eight new pieces showing a new direction in his work. One of his earlier pieces is shown above; Dick Buckley, who's creative talents are a match for his organizational skills; Bob Bartlett presenting his graceful "kinetic constructs"; the hauntingly electric illustrations of Meghann Brideau; the crisp architectural illustrations of Winthrop's own Frank Constantino; American Impressionist Carol Dearborn; The realistic decorating talents Lena Fransioli; Meghan Gargano's abstract interpretation of natural scenes; Ceramic sculptor Richard Gilson's evocative work; the decorative finishes of Kasia Mirowska; Fran Morey's work “Capturing the grace, energy and majesty of a unique era of sail”; the exciting work of multi-faceted Mark Wholey; and the intriguing pencil sketches of Jesa Damora.

Also included in this year's show were two film pieces: "Tarrantino's Mind" by a pair of Brazillian Directors and a six-minute episode of "Undercover Cheerleaders" by Bryan Buckley.

For More Background on the show and its artisis, click HERE for the site of North Shore Artists. The site also includes links to individual artist websites.

Mark your calendars for next Labor Day week end and lets see if Dick Buckley can outdo this year's production which by all accounts was a grand-slam home run.