More Ratings, Not Fewer | Mark A. Calabria | Cato Institute: Commentary

More Ratings, Not Fewer | Mark A. Calabria | Cato Institute: Commentary: 'In the midst of a crisis, politicians and regulators all too often believe they can restore "confidence" by silencing the bearers of bad news. Witness the common banning of short selling whenever bank stocks take a tumble, as if speculators were to blame for the problems at Lehman or Fannie Mae.'

How to Fix the Housing Crisis - Doug French - Mises Daily

How to Fix the Housing Crisis - Doug French - Mises Daily: 'These plans keep people chained to underwater mortgages, keeping them from moving to where there are more and better job opportunities.

Unemployed heavy-equipment operator Charles Mills wanted to leave North Las Vegas for Oklahoma and a job, but he is $200,000 underwater on a home he bought at the peak of the housing market in 2006. The plans mentioned by Blinder and Feldstein would relieve Mills of roughly $190,000 of the debt, but the principal reduction won't put him back to work.'

'All of these plans are not really aid to underwater homeowners as much as another bailout for the banks — not to mention Fannie and Freddie.'

'Those looking for mortgages should expect to put 20 percent down. Values in a bankruptcy sale would reflect this reality and then some. Based on the liquidation prices received by the FDIC and other distressed debt sellers, this mortgage paper would likely be scooped up for half or a third of the home's value.

Buyers of the paper would immediately negotiate with borrowers to create loans that are conforming (80 percent LTV) and performing.'

'"Around 90% of Selene's loan modifications involve reducing the principal," James R. Hagerty wrote in the WSJ, "compared to less than 2% of the modifications done by federally regulated banks in the first quarter."

And while many upside-down borrowers can't even find a human to talk to about their loan, let alone sit down and renegotiate terms that will benefit both parties, Selene immediately tries to contact the borrowers on the notes they have purchased, "sometimes sending a FedEx package with a gift card that can be activated only if the borrower calls a Selene debt-workout specialist."

It's hard to imagine Fannie and Freddie being so proactive.'

How Cutting Pentagon Spending Will Fix U.S. Defense Strategy | Benjamin H. Friedman | Cato Institute: Commentary

How Cutting Pentagon Spending Will Fix U.S. Defense Strategy | Benjamin H. Friedman | Cato Institute: Commentary: 'Far bigger savings are possible if the Pentagon is recast as a true defense agency rather than one aimed at something far more ambitious.'

'the U.S. military is currently structured to exercise power abroad, not provide self-defense. The U.S. Navy patrols the globe in the name of protecting global commerce, even though markets easily adapt to supply disruptions and other states have good reason to protect their own shipments. Washington maintains enormous ground forces in order to conduct nation-building missions abroad — despite the fact that such missions generally fail at great cost. Garrisons in Germany and South Korea have become subsidies that allow Cold War-era allies to avoid self-reliance.

Not only are these missions unnecessary, they are counterproductive. They turn economically capable allies into dependents, provoke animosity in far-flung corners of the globe, and encourage states to balance U.S. military power, often with nuclear weapons. A strategy based on restraint would allow Washington to save at least about $1.2 trillion over a decade, three times what the Obama administration is now asking for.'

Is Debt Necessary for Recovery? - Robert P. Murphy - Mises Daily

Is Debt Necessary for Recovery? - Robert P. Murphy - Mises Daily: 'The old-school, commonsense solution to an economy plagued by excessive debt is for people to work hard and save more. Keynesian economists have been saying throughout our current crisis that this folk wisdom overlooks basic accounting tautologies, but these pundits are smuggling in a Keynesian theory without realizing it.

Contrary to the assertions of these pundits, an economy does not need mountains of debt — whether government or private — in order to grow. Corporations can still raise needed financing through issuing equity. There are pros and cons to debt financing, but it isn't necessary for a strong economy.'

EXCLUSIVE: Lena Taylor, Property Accessory To Voter Fraud | Media Trackers

EXCLUSIVE: Lena Taylor, Property Accessory To Voter Fraud | Media Trackers: 'According to a Media Trackers open records request with the City of Milwaukee Election Commission, the property at 1018 N 35th St. in Milwaukee currently has 36 active voter registrations and at least 23 individuals voted using the address.'

'Senator Lena C. Taylor owns the property at 1018 N. 35th St. in Milwaukee. The property has 6 units'

Congressional Quarterly: House Panel Ready to Move Bill That Would Trim Federal Workforce - In the News - Newsroom - Ron Johnson, United States Senator for Wisconsin

Congressional Quarterly: House Panel Ready to Move Bill That Would Trim Federal Workforce - In the News - Newsroom - Ron Johnson, United States Senator for Wisconsin: '“It’s a bad way to manage. It doesn’t distinguish between programs that need cuts and those that are doing a great job,” said John Palguta, vice president for policy at the Partnership for Public Service, an organization that advocates better management of federal agencies. Palguta said the measure could increase pressure to hire outside contractors.'

Correct, it has problems, but what is his plan?

ObamaCare — The Way of the Dodo | Michael F. Cannon | Cato Institute: Commentary

ObamaCare — The Way of the Dodo | Michael F. Cannon | Cato Institute: Commentary: 'Let's pick one of Congress's accounting frauds at random: the "sustainable growth rate" (SGR) formula.

This little gremlin cuts Medicare payments to physicians every year on January 1. Or it would, except every year these cuts have come due, Congress has postponed them. But so long as hundreds of billions of dollars of future cuts remain on the books, future deficits and debt appear that much smaller.

Everyone knows Congress is going to postpone those cuts when docs and seniors start complaining. But by pretending that it won't, Congress makes the federal government's finances look better. (The real genius of the SGR is that the cumulative effect of pushing all postponed cuts into future years both preserves the SGR's debt-concealing power and ensures that physicians will grow increasingly desperate to make campaign contributions with each passing year.)'

'When ObamaCare's first batch of mandates took effect in September 2010, carriers notified their customers how much premiums would be raised as a result of these mandates. One Connecticut insurer put the hidden ObamaCare tax in the range of 20-30 percent of premiums. Naturally, HHS Secretary Kathleen Sebelius threatened carriers with bankruptcy if they continued furnishing cost estimates 21. The notifications stopped.'

'With many states balking, Politico revealed that the law doesn't actually provide any funding for HHS to create exchanges 23. And there is exactly zero chance of any such funding emerging from the GOP House.'

'If the Obama administration provides unauthorized premium assistance through federally created exchanges, then some of those subsidies will, under the law's employer mandate, trigger penalties against employers. Employers would then have standing to challenge the unauthorized subsidies in court 25. In states that decline to create exchanges, those lawsuits could scuttle not only the unauthorized premium assistance but also the employer mandate.'

How can a law that is that long and was passed that quickly be expected to be consistent and logical?

GOP Wastes Obamacare Opportunity | Michael D. Tanner | Cato Institute: Commentary

GOP Wastes Obamacare Opportunity | Michael D. Tanner | Cato Institute: Commentary: 'According to the poll by the Kaiser Family Foundation, which has traditionally found more support for the health-care law than other groups, just 34 percent of Americans now support the law. In fact, barely half of Democrats support the signature achievement of a Democratic president.'

'Yet Republicans have seemed strangely quiet about the issue of late. So much so, in fact, that the Washington Times was led to wonder if Republicans have "given up" on repeal. There certainly does not appear to be much evidence that Republicans are still making repeal a top priority. The House hasn't taken a vote on Obamacare since trying to change the bill's graduate-medical-education funding back in May. There isn't even an all-out effort to get behind a repeal of the CLASS Act, despite Democratic defections on the issue.

And the Republican presidential candidates have relatively little to say as well.'

William Niskanen, Wise and Principled | Richard W. Rahn | Cato Institute: Commentary

William Niskanen, Wise and Principled | Richard W. Rahn | Cato Institute: Commentary: 'After careful analysis of the data, he concluded that the marginal cost of government spending and taxes in the United States likely ranged between $2.75 and $4.50 per additional dollar of tax revenue. He wrote, "One wonders whether there are any government programs for which the marginal value is that high." To put what he was saying more simply, GDP is reduced by roughly three or four dollars for every additional dollar the government taxes and spends.'

Why We Can't Escape the Eurocrisis | Gerald P. O'Driscoll Jr. | Cato Institute: Commentary

Why We Can't Escape the Eurocrisis | Gerald P. O'Driscoll Jr. | Cato Institute: Commentary: 'The Fed maintains they cannot lose money because the ECB promises to repay the swaps in dollars. And yet, with the world awash in greenbacks, it is unclear why the Fed and the ECB even needed to engage in these transactions—except that it suggests funding problems at some EU banks. And if neither EU banks nor the ECB can secure enough needed dollars in global markets, there is a serious counterparty risk to the Fed.'