The sorry state of Journalism in the United States
Our own Jeff Pruitt has taken the Fort Wayne Journal Gazette to task for not attributing items it takes directly from local blogs.
I would like to take ABC news to task for the editing it did on on the Charles Gibson interview of Sarah Palin.
I highly suggest you read this story!
Many mainstream media outlets might as well be paid campaign outlets for the Obama campaign.
Mike Sylvester
The Fort Wayne Economic House Of Cards
The global financial markets’ “house of cards” has come crashing down because they were greedy, operated without regulation, had opaque financial statements and didn’t make sound financial judgments. What we have being played out on the national scale could very well show up here in Fort Wayne in the near future.
Let’s step back and take a look at some of the decisions that have been made by our city leaders over the past few years and see if they sound like they are based on sound financial footing.
- Harrison Square - The condos are woefully behind schedule and the city has already said they will have to use 60% of the Jefferson Pointe TIF revenue instead of the 50% they promised. But that’s not the major problem as I see it. The hotel is the deal breaker here - HS would not exist without this hotel. As of today, we have heard nothing about the hotel but the financial projections that were used to sell the project were not realistic.
- Public Safety Academy - This was supposed to be run by a private foundation and become self-sufficient. Now the foundation has essentially disbanded and the previous chairman has suggested that Mayor Henry’s cronyism is to blame for the current situation. Currently the academy is floundering and is no where near living up to the promises that were made.
- Renaissance Pointe - This was the gentrification project that was supposed to help revitalize Southeast Fort Wayne. The project was as ill-conceived as any I’ve ever seen. Putting in $150k homes that are surrounded by $30k homes doesn’t make sense. In fact, local government had to step in because potential buyers couldn’t get loans for the properties because the appraisals were too low. Now that the real estate market has tanked the project is even worse condition than it was before. This project is a continuation of the failed mortgage policies we’re seeing on the national level - an expansion of home ownership, consequences be damned.
- Maplecrest Extension - On the outskirts of town we are going to build a few bridges and magically businesses will flock to the area helping the project pay for itself. This argument is so ridiculous I’m not going to bother arguing against it. At one point (months ago) I had a discussion with commissioner Nelson Peters regarding the project and the current economic doldrums we were experiencing (and still are). In a statement that caught me by surprise he said “well thankfully most economists think we’re through the worst of it”. I was shocked because I hadn’t heard any economist actually say that.
The common thread behind all these projects is the idea of public-private partnerships. That’s a fancy way of saying government-subsidized. And I don’t want to get bogged down in minor subsidies like $100k for street improvements or painting buildings. No, these projects all have massive subsidies behind them. Why is this level of subsidy necessary? Because the projects simply won’t work otherwise. That, in and of itself, should be a red flag to everyone.
These projects are being subsidized because they are too risky for private enterprise. The problem for Fort Wayne is that the federal government won’t come bail us out if these projects begin to fail. Local taxpayers will foot the bill if that begins to happen. We must stop these kind of projects immediately as we are already over-extended as is. Soon the Jefferson Pointe TIF slush fund will be completely used up and we’ll have no where to go but into the taxpayers’ pockets (i.e. Kitty Hawk).
Let’s get our government back into the business of government and stop playing developer. Government can lower taxes or abate development in the areas that need it the most but they shouldn’t become “partners”. In fact the partnership description is really a misnomer as we’ll be left holding the bag if things go south.
Right now local government’s economic deck of cards is teetering on the brink of collapse and if that happens we’re all going to be paying for it…
A Question To Ponder Regarding The Current Financial Crisis
Billions have been “lost” as the market plunged. Where did all the money go?
Did you get any? Do you know anyone who did?
Think about it…
Karen Goldner & Stephen Parker Fight Harrison Square Secrecy
If you haven’t seen Stephen Parker’s posts over at Around Fort Wayne regarding the latest round of secrecy behind Harrison Square documents then you should check it out. Parker asked for two specific documents regarding Barry Real Estate’s to-date contributions to the stadium and was originally rebuffed by the Redevelopment commission and the city attorney.
Parker was going to submit an official complaint to the Public Access Counselor when councilwoman Karen Goldner stepped in and negotiated for the release of part of the document (available 9/22/08) that was originally denied.
First, Goldner should be commended for continuing to promote and support open government initiatives. Unfortunately, while we have made progress, this entire exchange shows we still have work to do. There is no reason a city councilmember should have to get involved just so a citizen can get basic public documents that are not exempted from state law.
Kudos to Goldner and Parker…
Canyon Cliffs Process Is A Sham
The Canyon Cliffs developers won a battle today when the plan commission executive committee unanimously approved their modified development plans. Let me say this - the entire process is a sham. The executive committee was created to expedite routine, non-controversial proposals - that is not Canyon Cliffs.
Furthermore, the plan was approved by only three members of the entire plan commission. Bodenhafer recused himself because he owns the land, and co-authored the minor plat ordinance he’s now exploiting, and Commissioner Bill Brown was out of town. And let us not forget that one of the three votes was local developer Ken Neumeister.
We have a plan commission for a reason and developers should not be able to game the system by fast-tracking their controversial plans through a crony-laden executive committee. And while we’re on this topic the Oakmont Development wiseguys penned a letter-to-the-editor in a local paper today where they had this to say:
When those members of the Plan Commission voted “no,” Oakmont Development took the only legal option it could take and filed a lawsuit against the commission and those individuals who violated their ordinance.
The situation is not unlike someone taking and answering every question on Indiana’s written driver’s license test, passing the driving test, acing the vision screening and then being denied a license because a Bureau of Motor Vehicles employee didn’t agree with a bumper sticker on the applicant’s car or because they thought the applicant might drive too fast.
Only, in the case of the Plan Commission members, a legal recourse exists. Oakmont Development used the legal option that was available to it.
Let’s just skip the fact that the analogy is completely ridiculous. But let me ask this - if that were to happen would you personally sue the poor sap sitting behind the counter trying to do their job?
Awful jackasses…
How bad is the Wall Street Crisis?
It is bad enough that in the middle of an evenly matched Presidential campaign Republicans and Democrats have for the most part decided to follow the advice of three Bush appointees and do anything those three want. Those appointees are in charge of the Federal Reserve, SEC, and Treasury Department.
Pelosi, Reid, and Obama are all stating that they have faith in these three Bush appointees and that they will help push their bailout measures through Congress quickly in a bi-partisan fashion.
Considering the fact the both Democrats and Republicans badly want to win the White House and considering the fact the the race is even; this bi-partisanship tells you that Congress is scared. They have joined the “herd.”
We are racing towards Socialism at a pace that frightens me and makes me fear for our Country.
Mike Sylvester
Press release from Christohper R. Stried
Joe Biden was the wrong choice, part two
I still feel that Joe Biden was the wrong choice for Vice President. He has spent some time in the news and some of this news has been positive and some negative, as is normally the case.
First of all I appreciate his honesty. He has consistently stated that he supports Barack Obamas tax plan which will cut taxes for most Americans; however, that he will raise taxes for Americans making above about $250,000 per year. Biden is being honest and I appreciate that. He is not hiding the fact that he feels it is appropriate to raise taxes on those making more then $250,000 per year.
Second of all he stumbled when he said “paying more in taxes is the patriotic thing to do for wealthier Americans.” The wealthy already pay significantly higher taxes then the rest of Americans. It is absurd to think it is ”patriotic” to pay higher taxes. I think it is “patriotic” to pay your fair share of taxes.
Third he revealed his tax returns for the last ten year. I once again appreciate his honesty and openess in releasing his tax returns; I repect that. Over the last ten years he and his wife have made an average of $250,000 per year. This puts them in the category of wealthy by any realistic definition of the term. He is easily in the top ten percent of wage earners in the country. That being said in that same period he donated an average of $369 per year to charitible causes per his tax returns.
Fourth and worst for Joe BIden is the fact that he has requested 330 million dollars of Congressional Earmarks for next fiscal year. Obama is running on a platform of change and his running mate is requesting one third of a billion dollars of earmarks for next fiscal year alone.
This is going to be a close Presidential race due to the massive mis-steps by the McCain campaign and the Obama campaign.
Mike Sylvester
Dow goes up 400 on reports of an even larger “bailout”
The Dow rocketed up over 400 points today because of a rumor that the Treasury Department is considering collecting bad debt into a corporation similar to the Resolution Trust Corporation that was created during the Savings & Loan Crisis that occurred between 1989 - 1995.
It seems that the “insanity” in Washington gets worse each and every day.
If the rumor is true, and I imagine it is, the Treasury Department is considering creating a corporation that would go out and buy bad debt (Mostly mortgages) from large US companies so that those companies (Mostly banks and investment banks) can move this debt debt off their balance sheets. This will mean that the taxpayers will have to pick up the bill.
The Savings and Loan crisis occurred between 1989 - 1995. The Federal Government stepped in and at a final cost to the taxpayers of 126 billion dollars ”bailed” out many Savings and Loan institutions. They collected the liabilities and assets of failed banks and over the next few years sold them to private investors.
This is the last thing we need.
Charles Schumer, Democratic Senator from New York has already come out and said that we need to go even further and create a more powerful entity similar to one used during the Great Depression.
We need to throw almost everyone currently in office out and replace them with people who understand basic economics and capitalism.
Throw the bums out…
Mike Sylvester
Pelosi and Reid surrender
Nancy Pelosi have spent a lot of time campaigning for this fall. They are consistently blaming the current financial crisis on Republicans when the Democrats have a majority in both the US House and the US Senate.
That being said you must this article from Bloomberg.
Some highlights from the piece:
Lawmakers say they are unlikely to take action before, or to delay, their planned adjournments — Sept. 26 for the House of Representatives, a week later for the Senate. While they haven’t ruled out returning after the Nov. 4 elections, they would rather wait until next year unless Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke, who are leading efforts to contain the crisis, call for help.
One reason, Senate Majority Leader Harry Reid said yesterday, is that “no one knows what to do” at the moment.
So basically they are planning on leaving town and letting The Secretary of the Treasury and the head of the Federal Reserve handle the situation as they see fit.
House Speaker Nancy Pelosi defended the decision of Congress to adjourn. Lawmakers can always be recalled to Washington “if there is a need to do so,” she told reporters yesterday. In the meantime, House and Senate committees will hold hearings and the financial crisis will be studied by Congress, she said. “Our work will continue even if we are not still on the floor,” she said.
Amazing, they will hold a couple of hearings about how this situation developed over the last 24 years…
House Financial Services Committee Chairman Barney Frank said Congress could give the Federal Reserve authority to pay interest on bank reserves sooner than originally scheduled.
Amazing, lets give the Federal Reserve even more authority and earlier…
Senate Banking Committee Chairman Christopher Dodd said the Fed also has the power to buy and dispose of bad debt stemming from the subprime-mortgage crisis.
“The Fed has the authority to move in this area,” Dodd told reporters in Washington.
No `Quick Fixes’
Creating a separate agency to take on bad debt, akin to the Resolution Trust Corp. set up in 1989 to absorb losses from savings-and-loan associations, would take about a year, he said. Instead, the Fed should use its own authority to act.
Christopher Dodd seems to encourage the Fed to buy bad debt at taxpayer expense and seems to not want to have any Congressional involvement at this time.
After reading this article is there one single person reading this blog who feels that the Democrats are not standing side by side with the Federal Reserve and The Department of the Treasury and agreeing with each and every thing they have done and will do? The Democrats in Congress have completely agreed with those two agencies and have backed away from the issue and put their full faith in President Bush’s appointees…
Mike Sylvester
