opportunity -- at least in connecticut

It is rare these days to speak of economic opportunity, but a great one is now presenting itself to Connecticut. In New York, the Democrats have just agreed on a soak the rich rise in the tax structure -- actually it is a soak everyone scheme, but it hits the rich hardest. For wealthy New York City residents the tax rate is now over three times as high as it would be in Connecticut. For suburbanites in New York, the rate is about twice as high as the Connecticut rate. This gives connecticut a golden opportunity. simply by holding the line on income tax rates the state can attract many high income families over the next few years. This will increase the Connecticut tax base and will lead to an increase in revenues even if the tax rates remain the same. More important, as businesses in New Yor City flee the high tax rates -- and they surely will --Connecticut becomes a favored destination if it can hold the line on taxes. this will also greatly expand the tax base in CT.

It is important to remember the days in the '60s and '79s when New York raised taxes even higher than they are now. Hundreds of businesses left New York and mover to Connecticut. The prosperity of the City of Stamford is directly linked to this movement. In the early 60's, Stamford was a run down, gritty city that could easily have failed. Instead, the City made room for new businesses and encouraged development, and the low tax rate did the rest. Another move like that now would go a long way towards guaranteeing the economic prosperity of Connecticut for years to come.

Alan Colmes

In his latest message on the Fox forum, Alan Colmes argues that we need to leave Obama alone so that he will be able to have time to find out the location of the mens' room in the White House. I usually do not agree with Colmes, but i do here. Clearly, after 70 days in office Obama has yet to figure out this important information. After all, there are no maps on the teleprompter. There has never been a less well prepared President. Obama knew how to run for President. He has no idea how to BE president.

The chicken game

It is strange to see the US and its allies (we still have some!) play a game of chicken with North Korea. Back in the days of the USSR, this was called brinkmanship and it was used regularly to impress upon the Soviets that their actions had consequences. During the cold war, only the Carter Administration pulled back from the practice -- and that not for too long. Today, the Obamacrats are telling Kim mentally ill Jong that his launch of a missile will have severe consequences for NK. Given the source, why would Kim believe the threats? Is obama really going to take steps that the NK's announce will be considered acts of war just to stop a missile? Aren't we going to hear soon that since the US and other powers have missiles, the NK's should have the right to own some too? Aren't we going to hear that we are pushing towards reconciliation with this madman and his insane regime? My guess is that we will soon watch the Obamacrats surrender -- they do it so well. Indeed, probably we will hear that the real reason that NK needs a missile has something to do with the Israel-Palestinian dispute and that the US needs to put pressure on Israel so that NK does not start a nuclear war.

Hillary's idiocy

Our new Secretary of State has managed to make a mess of things yet again. This time the problem was not using a cutesy gimmick like the supposed "reset" button that she gave to the Rusians (which actually said "overpay"). No her latest outrage is to blame the Mexican drug violence on the United States. It is the old Blame America First game, but this time it is voiced by our own Secretary of State.

Hillary's position has about as much merit as her old charge that the Monica Lewinsky scandal was just a product of the "vast Right-wing conspiracy". (Apparently she missed the connection between Monica's mouth and Bill's genitals). Nevertheless, when she announces this crap as the nations senior diplomat, her words carry weight and do immeasurable damage to the USA.

Let's hope that Hillary is the next to go after Geithner.

ho hum

I thought that I would blog the press conference this evening. I could not take it for long so I gave up. I had to leave the TV when Obama said that his plan was to cut the deficit in half in four years and that no one disputed that his budget would accomplish this. If the President of the United States thinks that after making the deficit at least three times bigger than any ever before (and doing this in only 60 days) that anyone is going to believe him when he says that he is going to cut the deficit, then he is a fool. Further, if Obama thinks that it is an accomplishment to drive the economy into the ground with enormous expenditures that will eventually have to be paid for, then he is again a fool. I guess the inexcapable conclusion is that he is a fool.

The Bank Plan

Today, the administration's plan for toxic assets held by banks was "unveiled". More precisely, it was leaked in bits and pieces and then discussed by the treasury secretary. In response (supposedly) the stock market went up in dramatic fashion. It is important to understand the motivation of the market. this is not a vote of confidence in the plan. There are still too many details unknown to tade stocks based upon the expected outcome of this plan. Rather, the market reaction was at best a major sigh of relief that The Obamacrats (or should they be called "Obureacrats") have finally managed to come forward with a plan of sorts. Remember, there has been no question since election day that Obama would need a plan to deal with the problems of the banks. He had the transition period of three months to get things ready. He managed to do prepare nothing regarding the banks -- the lynch pin of our economic recovery. then the administration began in earnest. for more than two months we have waited and waited and waited as Obama and Tim Terrific (or more accurately just the treasury secretary) worked on this plan. Indeed, for a plan that seems like it was put together in a few hours to take two months to complete is unforgiveable.

Let me be clear: the plan may work or it may not. I do not see enough of the details to have a firm view as to its likelihood of success. What is unforgiveable, however, is the delay in producting the plan.

One wonders how long it would take Obama to respond to other types of crises. Imagine what would happen in a nuclear attack -- Maybe we would respond within a month.

why can't Obama tell the truth

So president Obama tells jay Leno on the tonight Show that he was shocked to find out about the AIG bonuses. It reminds me of the great line in Casablanca when Captain Reneau closes down Rick's place because he is "Shocked, Shocked to find out that there is gambling going on there." At that point, one of Rick's employees, Sasha, comes up and hands the good Captain his winnings.

How can Obama believe that he can get away with the this? Anyone who paid the slightest attention to the various bailouts knew that there would still be bonuses. And so what. If the retention bonuses had been paid as higher base salaries all along rather than a bonus on a date and in an amount fixed by contract, no one would look twice at them. The bonuses that really are annoying are the performance bonuses given to folks who led their companies into disaster (like those at Merrill), not the one who agreed to stay on so that the company could unwind unwise positions (like those at AIG). Obama knew, without a doubt, all about these bonuses. If, in fact, he were truly surprised to find out about the bonuses (rather than his actual surprise at the anger of the American people), then he is even more incompetant than he has appeared to date (and that is truly saying something major).

Oh well, only three years and ten months to go. I hope that the US can survive this.