Over-regulation isn’t necessary

Barack Obama likes to take aim at “fat cat” bankers and Wall Street. Many members of Obama’s proletariat love it and thrive on any attempt to blame corporations for the current economic problems. Yet, there are two things that could have prevented the housing bubble and the current recession.

1. Not everyone should own a home.

Many will find this statement appalling. After all, isn’t home ownership the American Dream? The problem is that the federal government encouraged home ownership and encouraged relaxed lending standards, which allowed unqualified buyers to receive mortgages. Many of these loans had adjustable rates, didn’t require documentation, or required no money down. Is it any wonder that banks were overwhelmed with bad loans? » read more

Apple introduces the iPad

It’s official: Apple has introduced the iPad. The Apple iPad is a tablet PC with a 10 inch screen, which basically functions like the apple iPod, only bigger. The iPad will have either 16gb, 32gb, or 64gb of storage. Most impressive is the battery life, which is rated at 10 hours, with 30 days of stand-by time.

During the announcement, Steve Jobs spoke about how the iPad fills a void between the iPod/iPhone, and a typical notebook computer. He also criticized netbooks as cheap laptops. There’s no doubt the iPad will be a huge success, especially for people who want it for media or entertainment purposes. The larger screen is superior to netbooks for movies, viewing pictures, and games. Of course, there are always going to be people who want to push actual buttons especially when typing a paper or writing an e-mail. » read more

Good riddance to Air America

Air America, we hardly knew ya! After less than 6 years, the liberal radio network was forced to file for chapter 7 bankruptcy. If you didn’t listen to Air America, don’t feel bad, not many people did.

When I heard the news, I couldn’t help but laugh. Liberals like Rhode Island Senator Sheldon Whitehouse like to refer to conservatives as the “lunatic fringe,” but isn’t Air America’s bankruptcy evidence that the exact opposite is true? » read more

It’s official: Google’s Nexus One is on the wa

It’s official: Google is now in the cell phone business. The company announced the release of the Nexus One, which was completely designed by its own engineers, and will help it gain traction in online advertising.

I’m not sure how the Nexus One stacks up to the iPhone, but there’s no doubt it is a game-changer for the wireless industry. Those who purchase the phone can buy an unlocked version that can be used with any carrier. Of course, that will be pricey, since the initial price will be $529. For those who are a bit more frugal, there is also an option of signing up for a 2 year agreement with T-Mobile and paying just $179. » read more

GM and Chrysler could learn from Ford

Ford recently announced that its Sync system will soon allow customers to plug in a modem, so that passengers will be able to access broadband internet. Basically, many of Ford’s cars will become rolling hot spots. This is in addition to Sync, which allows you to control many of the car’s features with your voice.

Ford’s recent innovations seem to be far ahead of both Chrysler and GM. Is it merely a coincidence that the most innovative American car company is also the only one that is profitable and wasn’t bailed out by the federal government? Perhaps GM and Chrysler should take notes.

Barack Obama gets tough with “fat cat bankers”

Barack Obama met with 12 “fat cat bankers,” who he largely blames for the recession. After criticizing them for risky behavior which contributed to the nation’s economic problems, he said,

“And so I urged these institutions here today to go back and take a third and fourth look about how they are operating when it comes to small business and medium-sized business lending,”

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Is the Google Phone on the way?

There are rumors circulating that a Google Phone (possibly named Nexus One) could be on the way by January 2010. The phone will run Android 2.1 and be manufactured by HTC, but will carry the Google name.

The phone could be a game-changer in many ways. For one thing, the phone will be unlocked, so it can be used on both AT&T’s and T-Mobile’s network. It will also be sold in retail locations, and with the iPhone’s exclusivity agreement with AT&T about to expire, it could open up a potentially interesting competition. As for features, it will have a touch screen, two microphones, and voice-to-text, for those who don’t like typing on a touch screen. » read more

Sorry, it’s none of your business

Barack Obama had had it with “fat cat” bankers. He’s also concerned that banks are returning TARP money so they can pay large end-of-year bonuses without government interference.

I’m not sure if Barack Obama realizes this or not, but these banks are private businesses. Once they pay back TARP funds, what they do with their earnings is none of the government’s business. Of course, in Barack Obama’s socialist-leaning world, everything should be the government’s business.

Maybe it’s me, but shouldn’t we be happy that banks are able to pay funds back in full? I know it’s popular to pile on those who are successful, but this seems rather foolish.

Barack Obama’s idea to weaken banks

Barack Obama will be having a meeting with CEO’s from the banking industry. One of the topics he will address is their need to lend more. Yes, you heard correctly! If you think this is a little odd, you’re not alone”

“The White House’s political people like [senior adviser David] Axelrod tell us to lend more,” said one banking official. “But the regulators are saying the exact opposite. They’re saying, ramp up your capital ratios, and if you see default risk on the horizon, cut back on lending.”

The recession has been serious, and it was was caused by a myriad of problems. Some of those problems were related to banks extending credit to people who shouldn’t have received a loan, and irresponsible borrowers who took on too much debt. Let’s also remember that many of these financial institutions were under-capitalized. Now that things are slowly starting to improve, what does the administration want to do? Lend more! » read more

Great news! The U.S. will only lose $30 billion on the auto industry bailout

I have some great news for you today. Do you remember the $82 billion bailout of the auto industry? Well, the government was expecting to lose $44 billion, but revised figures show that the loss will only be $30 billion! Isn’t that awesome? Yeah, I don’t think so either.

Barack Obama and other socialist-leaning politicians thought the bailout was a great idea, and they still do. The best thing that could have happened would have been to let Chrysler file for bankruptcy, cancel all of their contracts, then reorganize without government assistance. More jobs would have been lost, unions would have been angry, and the companies would have been decimated, but I find that preferrable to the precedent that was set. » read more

Rupert Murdoch is half right

I’m glad to see Rupert Murdoch come out so strongly against government intervention in the media. Some lawmakers have suggested that the media might need government assistance due to the effect of the internet on the changing industry. One idea involved converting newspapers to nonprofit organizations. Murdoch is right to criticize these types of ideas, along with regulations which prevent companies from owning newspapers and TV stations in the same market. It’s funny how government hampers competition, then offers a bailout of sorts.

Besides government intervention, Murdoch once again commented on the future on online media. Specifically mentioning the “theft” of material by aggregators, and the failure of the current business mode. Murdoch has recently stated his intention to move to a subscription service, and there have been rumors about removing Newscorp’s sites from Google and providing exclusive access to Bing (for a price, of course). For as right as Rupert Murdoch is on government intervention, he is wrong about his ideas for the future of media. » read more

A ticket to ride into space for just $200,000

Commercial space travel is on the way. Billionaire Richard Branson, owner of Atlantic Airways, announced that his new venture, Virgin Galactic, will be ready to shuttle individuals into space in a few years. The $450 million project includes the construction of six spaceships/shuttles/aircraft, which would take passengers 65 miles above the Earth.

Each ticket would enable a passenger to receive three days of training, a voyage that is about 2 hours or so each way, and 5 minutes of weightlessness. Not bad for a mere $200,000. Just in case you’re wondering if anyone would be willing to spend that much for a five hour trip that will result in just five minutes in space, Branson claims to have received 300 deposits. We are in a recession, right?

Be cautious when investing in gold

Have you seen commercials on television lately talking about gold as the perfect investment vehicle? I’ve seen several of them lately, and I’m a bit mystified. Before I go into details about why I find this strange, check out this article about conservative talk show hosts and their links to gold advertisers. There’s a lot of gloom and doom out there, and the economy is far from strong, but do your best to ignore these commercials.

The economy is in lousy shape, but from what I’ve seen, read, and experienced, the worst is behind us. Stocks and real estate have plummeted in value over the past year or so, and in the case of stocks, a substantial portion of their value has recovered. Many pundits (but not this one) seem set on convincing us that the financial apocalypse is upon us. From what I can tell, they’re wrong. The financial system is weak, but it certainly isn’t dead. » read more

Amendment seeks to limit executive pay for health insurers

Senators Blanche Lincoln, Frank Lautenberg, and Robert Menendez have submitted an amendment to the health care bill which would essentially cap the salary of health insurance executives. Companies would be prevented from deducting more than $400,000 for salaries if more than 25% of their income came from individuals buying their insurance through a government exchange.

I haven’t read the entire health care bill, but I think it’s likely that health insurers will find a way to avoid reaching that 25% threshold, which would allow them to prevent the government from determining compensation. I know it’s not popular to side with insurance companies, but I’m troubled by yet another attempt to regulate or cap salaries at private companies. Put simply, compensation at private companies is none of the government’s business. » read more

Usury bill would cap credit card rates at 16% and have additional costs

Representatives John Tierney and Michael Capuano will be introducing a bill which would force credit card companies to cap their rates at 16%. I know a lot of people will think this is a fantastic idea. After all, to these people, banks are evil, and people are blameless for their situations. This bill embodies the bank as aggressor, borrower as victim stereotype, so it should find broad support, which is unfortunate.

If borrowers make intelligent decisions, they can move their business away from high-interest credit cards to low-interest cards. As a result, those banks with excessive rates would suffer financially. Of course, choices would be limited for borrowers with bad credit, but whose fault is that? The borrowers obviously, but I suspect that you won’t see many people on Capitol Hill hold individuals responsible for their decisions. After all, many voters don’t want to hear the truth. » read more

Black Friday shopping is better online

I have never been shopping on Black Friday. I always say I want to, but the idea of having to take time out of work, wake up ridiculously early, sit in traffic, fight for the items I’m looking for, then risk them not being there, usually convinces me it’s better to just stay home. Of course, staying home doesn’t mean I don’t shop, it just means I’m a little smarter about how I shop.

For the most part, online shopping beats brick and mortar stores hands-down. It’s convenient, you can read about the product, check out online reviews, and you can often save money. Plus, you can easily check out several stores in just a few minutes to get the best price, and often get free shipping and no sales tax. There’s just one problem: Retailers don’t properly utilize online shopping. » read more

Coke and Pepsi increase their lobbying

In an effort to prevent the United States government from harming their business, Coke and Pepsi have substantially increased their lobbying effort. The increased lobbying is a result of House and Senate proposals which would add a 3 cent tax to each 12 ounces of soda. The result would be an additional $24 billion that could be used to subsidize Americans who either don’t want of “can’t afford” health insurance.

Why would the government be so focused on taxing sugary drinks? Here’s Barack Obama’s reasoning:

“There’s no doubt that our kids drink way too much soda,” he said. “If you wanted to make a big impact on people’s health in this country, reducing things like soda consumption would be helpful.”

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Can a bill to cap interest rates result in higher interest rates?

Congress has a new idea: Pass a law that would force credit card companies to cap their rates at 16%. I have little doubt this will will get lots of attention, and will probably pass. On one side you have the big, evil, bail-out accepting banks, and on the other, the hard-working American who is struggling to make ends meet in this tough economy. That’s the way it will be presented, but it’s far from the truth.

Interest rates are determined by several factors, which equate to the borrowers risk profile. Those with excellent credit pay less than those with poor credit. It’s a fair system, since those with poor credit are more likely to default. For example, someone with excellent credit might pay 12%, while someone with poor credit would pay 20%. The difference might not seem fair at first, but let’s not forget that based on their payment histories, each deserves the rate they received. » read more

The partnership between Microsoft and News Corp seems odd

Sometimes, I feel like I’m missing something. As a blog owner, I like writing, and I like having people read what I write. You might notice that many blogs also advertise. Even though the typical blogger doesn’t make much money from their posts, some bloggers do quite well financially. Since advertising a blog can be costly, the dream is to get good placement in the results of the major search engines. Normally, high traffic can mean high revenue, while reduced traffic can mean less revenue. That’s why News Corp’s Rupert Murdoch has me puzzled.

There’s no doubt that Rupert Murdoch is a bright, successful guy. That’s why his latest idea seems to be risky: Removing all of his newspapers from Google’s index. News Corp owns well-known newspapers such as the Wall Street Journal and The Sun. Murdoch seems to feel that Google is unfairly benefiting from News Corp’s content. In the past, Murdoch had mentioned ending their use of a free model and going to a subscription format. Now, another plan may have surfaced. » read more