Free Markets, Free People

Daily Archives: May 26, 2009

Closing Dealerships Via Barack-Foolery?

I watched this story percolate throughout the day, wondering if there was anything of substance to it. Even now I’m not entirely sure how much is pure speculation and how much can be decisively proven. If any of it turns out to be true, however, then the repercussions could prove politically fatal. Doug Ross has the scoop:

A tipster alerted me to an interesting assertion. A cursory review by that person showed that many of the Chrysler dealers on the closing list were heavy Republican donors.

To quickly review the situation, I took all dealer owners whose names appeared more than once in the list. And, of those who contributed to political campaigns, every single one had donated almost exclusively to GOP candidates. While this isn’t an exhaustive review, it does have some ominous implications if it can be verified.

However, I also found additional research online at Scribd (author unknown), which also appears to point to a highly partisan decision-making process.

[...]

I have thus far found only a single Obama donor (and a minor one at that: $200 from Jeffrey Hunter of Waco, Texas) on the closing list.

Chrysler claimed that its formula for determining whether a dealership should close or not included “sales volume, customer service scores, local market share and average household income in the immediate area.”

In fact, there may have been other criteria involved: politics may have played a part. If this data can be validated, it would appear to be further proof that the Obama administration is willing to step over any line to advance its agenda.

Doug notes some anecdotal evidence to back up his theory, and reading through the various personal accounts from dealerships who claim to be successful, and yet who are being shut down, lends some credibility to the idea. As does the fact that the closing list is reportedly populated almost exclusively with Republican donors and/or those who gave money to Obama’s Democratic rivals. But the real test is in a comparison of the lists of dealerships staying open and those that are closing against a campaign donor database (which I haven’t done, but feel free to scrutinize them for yourself).

Nevertheless, the following bit of research from Red State strikes an ominous chord:

Eric Dondero recognizes some of the dealers’ names on the hit list:

“Vern Buchanan is a Republican Congressman from the Tampa Bay area. Robert Archer is the son of former Republican Congressman Bill Archer. John Culberson, a libertarian-leaning Conservative, is now the Congressman for that West Houston District. He was heavily supported in his election efforts by the Archers Family.”

“Additionally, James Crowley, owner of a Chrysler Dealership in Escondido, California is on the list to be closed. Crowley is a big backer of libertarian-leaning Republican Cong. John Campbell of Orange County.”

The list is heavy with influential Republicans and libertarians. Another name on the list is Ray Huffines, who owns a large dealerhsip in the Metro-Dallas/Ft. Worth area. The Huffines family have been major contributors to Rep. Ron Paul (R-TX) over the years.

It’s hard to know what to make of all this, but at first blush it certainly looks like the decisions to close dealerships may have been influenced by the political affiliations of the dealers. Under regular circumstances that would elicit a big shrug, but when Chrysler’s decisions are basically being made for them, well, that’s a whole ‘nother kettle of fish (via Reliapundit):

A lawyer for Chrysler dealers facing closure as part of the automaker’s bankruptcy reorganization said on Tuesday he believes Chrysler executives do not support a plan to eliminate a quarter of its retail outlets.

Lawyer Leonard Bellavia, of Bellavia Gentile & Associates, who represents some of the terminated dealers, said he deposed Chrysler President Jim Press on Tuesday and came away with the impression that Press did not support the plan.

“It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers,” Bellavia said. “It really wasn’t Chrysler’s decision. They are under enormous pressure from the President’s automotive task force.”

Given the other sorts of thuggery that have been alleged in these Chrysler proceedings, this should come as no shock. But the fact that these closings will have to be approved by the creditors in the bankruptcy case lends a certain bit of intrigue to this case and raises a lot questions in my mind.

Assuming that the closings are motivated by political payback from Obama, how will that plan affect the stakeholders in the new company? If there really are profitable dealerships being shutdown just because they gave money to the wrong candidates, then it stands to reason that the remaining dealers will be something less than the cream of the crop, and therefore the new Chrysler will have a less than optimal distribution chain for its products. It’s not entirely clear why shutting down dealerships helps Chrysler anyway, since they are essentially the real customers of the carmaker, but it seems to me that those who plan to profit from the new venture would have something to say about the plan in the bankruptcy case. Presumably, they will want to protect their investment by challenging any plan for closings that does not maximize their return. If and when they do, it could get very interesting for Obama (again, assuming that any of this is true).

It should be noted that until some further confirmation surfaces, this story should be treated with a healthy dose of skepticism. Indeed, if it weren’t for the rather dictatorial way the Obama administration has dealt with the entire automaker bailout fiasco, these allegations of political payback would ring pretty hollow. Yet, considering the past bullying, the story definitely merits further consideration, so keep your eyes and ears open for more.

The Burping Of The Lambs

The food police are interested in changing your diet – all in the name of climate change:

A government-sponsored study into greenhouse gases found that producing 2.2lb of lamb released the equivalent of 37lb of carbon dioxide.

The problem is because sheep burp so much methane, a potent greenhouse gas. Cows are only slightly better behaved. The production of 2.2lb of beef releases methane equivalent to 35lb of CO2 Tomatoes, most of which are grown in heated glasshouses, are the most “carbon-intensive” vegetable, each 2.2lb generating more than 20lb of CO2. Potatoes, in contrast, release only about 1lb of CO2 for each 2.2lb of food. The figures are similar for most other native fruit and vegetables.

Funny how that works in a carbon based eco system, wouldn’t you say? But don’t concern yourself, it’s all for your own good:

“We are not saying that everyone should become vegetarian or give up drinking but moving towards less carbon intensive foods will reduce greenhouse gas emissions and improve health,” said Kennedy.

Because everyone knows that potatoes are much healthier than tomatoes. Hashbrowns for all.

Oh, and barley and hops? FAIL!

Alcoholic drinks are another significant contributory factor, with the growing and processing of crops such as hops and malt into beer and whisky helping to generate 1.5% of the nation’s greenhouse gases.

My goodness, just look at what is happening to us.

~McQ

Sotomayor Nominated to SCOTUS

As a surprise to almost no one, Obama went with the candidate who fills the most quotas for his first Supreme Court pick. Since I’ve already covered what sort of Justice I think she’d be, I’ll just note that I think Obama picked the least qualified and most political of the three top contenders (Kagan and Wood being the others). Other than that, I don’t think her nomination will make much difference in the grand scheme of things.

Ilya Somin arrives at basically the same conclusion, and along the way takes special exception a particular statement from Sotomayor (my emphasis):

I am not yet sure what position to take on President Obama’s selection of Sonia Sotomayor. My general sense is that she is very liberal, and thus likely to take what I consider to be mistaken positions on many major constitutional law issues. I am also not favorably impressed with her notorious statement that “a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn’t lived that life.” Not only is it objectionable in and of itself, it also suggests that Sotomayor is a committed believer in the identity politics school of left-wing thought. Worse, it implies that she believes that it is legitimate for judges to base decisions in part on their ethnic or racial origins.

Expect to see that quote get much airtime as Republicans seek some ground from which to undermine Sotomayor’s nomination.

As for whether or not the Republicans should go to the mat on this, it seems to me like a bad idea. I think there are certainly some troubling aspects to Sotomator’s candidacy (such as her quote above), but there is also almost zero possibility that she will not be confirmed. With 59 Democrats in the Senate, there is also little hope of fillibustering the nomination. Accordingly, if Republicans choose this particular hill to die upon, they spend political capital for no gain, and risk losing the ability to generate opposition to any subsequent nominees who may have more substantive influence on the direction of the Court (e.g. a replacement for Kennedy or Scalia).

Since it appears that taking on Sotomayor’s nomination is rife with bad consequences for the GOP, I think it is a very safe bet that they will pull out all the stops in order to oppose her. This will prove once again that, sometimes, it takes great effort to earn minority party status. In that endeavor, expect the Republicans to leave no stone unturned.

Obama: Rhetoric v. Reality

Another emerging hallmark of Obama rhetoric are the startling inconsistencies to be found there. For instance, his speech at the National Archives where he invoked the founding documents as the keepers of our fundamental rights and values and condemned the previous administration for its egregious violations of those right and values. All of it sounded lofty and certainly rhetorically satisfying. But then, within a few paragraphs, Obama trots out his policy plan for indefinite detention for those who we even suspect of wishing to do violence against the US.

And it was the past administration which did what that was so bad?

Even Sen. Russ Feingold can’t quite stomach the inconsistency:

While I recognize that your administration inherited detainees who, because of torture, other forms of coercive interrogations, or other problems related to their detention or the evidence against them, pose considerable challenges to prosecution, holding them indefinitely without trial is inconsistent with the respect for the rule of law that the rest of your speech so eloquently invoked. Indeed, such detention is a hallmark of abusive systems that we have historically criticized around the world.

Gitmo is a place. And places can be shut down. But what Obama is talking about is a policy – a policy of government – in which people can be incarcerated without charges and held for as long as the government deems necessary. How again is that a difference from the previous administration? How is that better?

Feingold again:

Once a system of indefinite detention without trial is established, the temptation to use it in the future would be powerful. And, while your administration may resist such a temptation, future administrations may not. There is a real risk, then, of establishing policies and legal precedents that rather than ridding our country of the burden of the detention facility at Guantanamo Bay, merely set the stage for future Guantanamos, whether on our shores or elsewhere, with disastrous consequences for our national security.

I had to laugh at this – “resist such a temptation”? For heaven sake Senator, his administration is suggesting the policy! Why would he “resist the temptation” when it is obvious that his administration sees it as a necessary tool to combat threats against the US?

Worse, those policies and legal precedents would be effectively enshrined as acceptable in our system of justice, having been established not by one, largely discredited administration, but by successive administrations of both parties with greatly contrasting positions on legal and constitutional issues….

And that’s the point, isn’t it? Once it becomes policy – once it is enshrined in law (and I’m not, at this point, at all sure how the SCOTUS would rule on such a law although I’m certainly sure on how I think they should rule) it is open to use and abuse by government. So while we may or may not agree with what the previous administration did, in this regard, they never tried to make it policy and an legally blessed (but morally wrong) method of handling those we capture and incarcerate in this war against Islamic extremism.

Anyone monitoring what Barack Obama has been saying since taking the oath of office who doesn’t see a rather large authoritarian streak in the man hasn’t been paying attention. What he is suggesting is blatantly worse than what the Bush administration did. Unfortunately, it is mostly being lost in the ground clutter of the financial crisis. But it is certainly there for those who take the time to look.

~McQ

Health Care Is Why We’re Broke?

The more I listen to Obama, the more of an ideologue I realize he is and how willing he is to use any opportunity to “justify” his agenda, even those that don’t fit. For instance:

In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: “We are out of money.”

C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far. This is a consequence of the crisis that we’ve seen and in fact our failure to make some good decisions on health care over the last several decades.

This is about as twisted a bit of reasoning as I’ve seen in a while. We’re “out of money” because of “health care decisions?”

What total nonsense. This is a politician using a crisis unrelated to “health care decisions” to push his ideology (i.e. that it is government that is the answer in all areas of life). As Glenn Reynolds says:

“I’ve bankrupted the nation, so now your only hope is to pass my healthcare plan.” That goes beyond chutzpah to the edge of pathological dishonesty. Except, I guess, that it’s not pathological if you get away with it. And so far, he has.

Very true – but at some point, as his favorite pastor likes to say, the chickens have got to come home to roost.

From the same interview:

SCULLY: States like California in desperate financial situation, will you be forced to bail out the states?

OBAMA: No. I think that what you’re seeing in states is that anytime you got a severe recession like this, as I said before, their demands on services are higher. So, they are sending more money out. At the same time, they’re bringing less tax revenue in. And that’s a painful adjustment, what we’re going end up seeing is lot of states making very difficult choices there..

Painful choices? But for the federal government – unprecedented spending spree. The cognitive dissonance there is mind boggling.

~McQ

How Bad Is It?

Amidst all the “happy talk” about signs that the economy is “turning around” we see more troubling signs that it is, in fact, being badly mishandled:

The US Treasury is facing an ordeal by fire this week as it tries to sell $100bn (£62bn) of bonds to a deeply sceptical market amid growing fears of a sovereign bond crisis in the Anglo-Saxon world.

[...]

The interest yield on 10-year US Treasuries – the benchmark price of long-term credit for the global system – jumped 33 basis points last week to 3.45pc week on contagion effects after Standard & Poor’s issued a warning on Britain’s “AAA” credit rating.

The yield has risen over 90 basis points since March when the US Federal Reserve first announced its controversial plan to buy Treasury bonds directly, a move designed to force down the borrowing costs and help stabilise the housing market.

The yield-spike may be nearing the point where it threatens to short-circuit economic recovery. While lower spreads on mortgage rates have kept a lid on home loan costs so far, mortgage rates have nevertheless crept back up to 5pc.

The housing market hasn’t yet bottomed out and Britain isn’t the only country whose credit rating Standard & Poors is reviewing. If we can’t sell debt instruments there are only a couple avenues left to us aren’t there? And, as noted, both would certainly “short-circuit” any economic recovery.

~McQ